Document:

Exhibit 4.2

                             BASE TRUST AGREEMENT

                                    between

                    SYNTHETIC FIXED-INCOME SECURITIES, INC.

                                    Trustor

                                      and

                             THE BANK OF NEW YORK

                                    Trustee

                         Dated as of February 28, 2006

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                               TABLE OF CONTENTS

                                                                          Page
                                                                          ----

ARTICLE I                  DEFINITIONS AND ASSUMPTIONS.......................1
         Section 1.1.      Definitions.......................................1
         Section 1.2.      Rules of Construction............................14

ARTICLE II                 DECLARATION OF TRUSTS; ISSUANCE OF CERTIFICATES..14

         Section 2.1.      Creation and Declaration of Trusts; Assignment
                           of Underlying Securities.........................14
         Section 2.2.      Acceptance by Trustee............................15
         Section 2.3.      Repurchase or Substitution of Certain
                           Underlying Securities by the Underlying
                           Security Provider................................16
         Section 2.4.      Representations and Warranties of the Trustor
                           and Representations, Warranties and Covenants of
                           the Administrative Agent.........................17
         Section 2.5.      Breach of Representation, Warranty or Covenant...18
         Section 2.6.      Agreement to Authenticate and Deliver
                           Certificates.....................................19
         Section 2.7.      Statement of Intent..............................19

ARTICLE III                ADMINISTRATION OF EACH TRUST.....................19

         Section 3.1.      Administration of each Trust.....................19
         Section 3.2.      Sub-Administration Agreements Between
                           Administrative Agent or Trustee and
                           Sub-Administrative Agents........................20
         Section 3.3.      Successor Sub-Administrative Agents..............21
         Section 3.4.      Liability of the Administrative Agent............21
         Section 3.5.      No Contractual Relationship Between Certain
                           Sub-Administrative Agents and Trustee or
                           Certificateholders...............................22
         Section 3.6.      Assumption or Termination of Sub-Administration
                           Agreements by Trustee............................22
         Section 3.7.      Collection of Certain Underlying Security
                           Payments.........................................22
         Section 3.8.      Collections by Sub-Administrative Agent..........23
         Section 3.9.      Certificate Account..............................23
         Section 3.10.     Investment of Funds in the Accounts..............24
         Section 3.11.     Maintenance of Credit Support....................25
         Section 3.12.     Realization Upon Defaulted Underlying Securities.25
         Section 3.13.     Retained Interest................................27
         Section 3.14.     Administrative Agent's Compensation and
                           Reimbursement....................................27
         Section 3.15.     Statement as to Compliance.......................27
         Section 3.16.     Independent Public Accountants' Administration
                           Report...........................................28
         Section 3.17.     Access to Certain Documentation..................28
         Section 3.18.     Duties of the Administrative Agent...............29
         Section 3.19.     Trustor to Furnish Names and Addresses of
                           Holders to Trustee...............................29
         Section 3.20.     Preservation of Information, Communications to
                           Holders..........................................29
         Section 3.21.     Reports by Trustee...............................29

                                     -i-
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ARTICLE IV                 DISTRIBUTIONS AND REPORTS TO CERTIFICATEHOLDERS..29

         Section 4.1.      Distributions....................................29
         Section 4.2.      Reports to Certificateholders....................30
         Section 4.3.      Advances.........................................31
         Section 4.4.      Compliance with Withholding Requirements.........32
         Section 4.5.      Optional Exchange................................32

ARTICLE V                  THE CERTIFICATES.................................33

         Section 5.1.      The Certificates.................................33
         Section 5.2.      Execution, Authentication and Delivery...........38
         Section 5.3.      Temporary Certificates...........................38
         Section 5.4.      Registration; Registration of Transfer and
                           Exchange.........................................39
         Section 5.5.      Mutilated, Destroyed, Lost and Stolen
                           Certificates.....................................41
         Section 5.6.      Distribution of Interest; Interest Rights
                           Preserved........................................42
         Section 5.7.      Persons Deemed Owners............................43
         Section 5.8.      Cancellation.....................................43
         Section 5.9.      Global Securities................................43
         Section 5.10.     Notices to Depositary............................44
         Section 5.11.     Definitive Certificates..........................45
         Section 5.12.     Currency of Distributions in Respect of
                           Certificates.....................................45
         Section 5.13.     Conditions of Authentication and Delivery of
                           New Series.......................................46
         Section 5.14.     Appointment of Paying Agent......................47
         Section 5.15.     Authenticating Agent.............................48
         Section 5.16.     Events of Default................................49
         Section 5.17.     Control by Holders...............................49
         Section 5.18.     Waiver of Past Defaults..........................49

ARTICLE VI                 THE TRUSTOR AND THE ADMINISTRATIVE AGENT.........49

         Section 6.1.      Preparation and Filing of Exchange Act Reports;
                           Obligations of the Trustor and the
                           Administrative Agent.............................49
         Section 6.2.      Merger or Consolidation of the Trustor or the
                           Administrative Agent.............................53
         Section 6.3.      Limitation on Liability of the Trustor and the
                           Administrative Agent.............................54
         Section 6.4.      Limitation on Resignation of the Administrative
                           Agent............................................54
         Section 6.5.      Rights of the Trustor in Respect of the
                           Administrative Agent.............................54
         Section 6.6.      Trustor May Purchase Certificates................55
         Section 6.7.      The Administrative Agent and Other Parties.......55
         Section 6.8.      Preferential Collection of Claims Against
                           Trustor..........................................55

ARTICLE VII                ADMINISTRATIVE AGENT TERMINATION EVENTS..........55

         Section 7.1.      Administrative Agent Termination Events..........55
         Section 7.2.      Trustee to Act; Appointment of Successor.........58
         Section 7.3.      Notification to Certificateholders...............58
         Section 7.4.      Waiver of Administrative Agent Termination
                           Events...........................................59

                                     -ii-
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ARTICLE VIII               CONCERNING THE TRUSTEE...........................59

         Section 8.1.      Duties of Trustee; Notice of Defaults............59
         Section 8.2.      Certain Matters Affecting the Trustee............62
         Section 8.3.      Trustee Not Liable for Recitals in Certificates
                           or Underlying Securities.........................63
         Section 8.4.      Trustee May Own Certificates.....................63
         Section 8.5.      Trustee's Fees and Expenses; Indemnification;
                           Undertaking for Costs............................63
         Section 8.6.      Eligibility Requirements for Trustee.............64
         Section 8.7.      Resignation or Removal of the Trustee............65
         Section 8.8.      Successor Trustee................................65
         Section 8.9.      Merger or Consolidation of Trustee...............66
         Section 8.10.     Appointment of Co-Trustee or Separate Trustee....66
         Section 8.11.     Appointment of Office or Agency..................67
         Section 8.12.     Representations and Warranties of Trustee........67
         Section 8.13.     Trustee to Act Only in Accordance With This
                           Agreement or Pursuant to Instructions of
                           Certificateholders...............................68
         Section 8.14.     Accounting and Reports to Certificateholders,
                           Internal Revenue Service and Others..............68
         Section 8.15.     Signature on Returns.............................68

ARTICLE IX                 TERMINATION......................................68

         Section 9.1.      Termination upon Purchase or Liquidation of All
                           Underlying Securities............................68

ARTICLE X                  MISCELLANEOUS PROVISIONS.........................69

         Section 10.1.     Amendment........................................69
         Section 10.2.     Counterparts.....................................71
         Section 10.3.     Limitation on Rights of Certificateholders.......71
         Section 10.4.     Governing Law....................................72
         Section 10.5.     Notices..........................................72
         Section 10.6.     Severability of Provisions.......................72
         Section 10.7.     Notice to Rating Agency..........................72
         Section 10.8.     Grant of Security Interest.......................73
         Section 10.9.     Nonpetition Covenant.............................74
         Section 10.10.    No Recourse......................................74
         Section 10.11.    Article and Section References...................74
         Section 10.12.    Conflict with Trust Indenture Act................74

RECONCILIATION AND TIE BETWEEN TRUST INDENTURE

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                    ACT OF 1939 AND AGREEMENT PROVISIONS*

Trust Indenture Act
      Section                                                Agreement Section
-------------------                                          -----------------
     310(a)(1)             .....................                  8.6(a)
         (a)(2)            .....................                  8.6(a)
         (a)(3)            .....................                   8.10
         (a)(4)            .....................                  8.1(d)
         (a)(5)            .....................                  8.6(a)
          (b)              .....................                8.6(b), 8.7
          (c)              .....................              Not Applicable
      311(a)               .....................                    6.8
          (b)              .....................                    6.8
      312(a)               .....................               3.19, 3.20(a)
          (b)              .....................                  3.20(b)
          (c)              .....................                  3.20(c)
      313(a)               .....................                   3.21
          (b)              .....................                   3.21
          (c)              .....................                   3.21
          (d)              .....................                   3.21
      314(a)               .....................              6.1(a), 6.1(b)
          (b)              .....................              6.1(c), 6.1(d)
         (c)(1)            .....................                  6.1(f)
         (c)(2)            .....................                  6.1(f)
         (c)(3)            .....................                  6.1(f)
         (d)(1)            .....................                  6.1(e)
         (d)(2)            .....................                  6.1(e)
         (d)(3)            .....................              Not Applicable
          (e)              .....................                  6.1(f)
      315(a)               .....................                  8.1(c)
          (b)              .....................                  8.1(f)
          (c)              .....................                  8.1(a)
          (d)              .....................                  8.1(c)
         (d)(1)            .....................                  8.1(c)
         (d)(2)            .....................                  8.1(c)
         (d)(3)            .....................                  8.1(c)
          (e)              .....................                  8.5(c)
      316(a)(1)(A)         .....................                   5.17
      316(a)(1)(B)         .....................                   5.18
       316(a)(2)           .....................              Not Applicable
         316(b)            .....................                5.6(f), 4.1
         316(c)            .....................                    5.7
         317(a)            .....................                   3.12
         317(b)            .....................                   5.14
         318(a)            .....................                   10.12

---------

*    This reconciliation and tie shall not, for any purpose, be deemed to be
     part of the within agreement.

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     TRUST AGREEMENT, dated as of February 28, 2006 between SYNTHETIC
FIXED-INCOME SECURITIES, INC., a Delaware corporation, as Trustor, and THE
BANK OF NEW YORK, a New York banking corporation, as Trustee.

                             PRELIMINARY STATEMENT

     The Trustor and the Trustee have duly authorized the execution and
delivery of this Trust Agreement to provide for one or more Series (and one or
more Classes within each such Series) of Trust Certificates, issuable from
time to time as provided in this Agreement. Each such Series (or each Class
within such Series) of Certificates will be issued only under a separate
Series Supplement to this Agreement duly executed and delivered by the
Trustor, the Administrative Agent, if any, specified in the applicable Series
Supplement, and the Trustee. All representations, covenants and agreements
made herein by each of the Trustor, the Administrative Agent, if any, and the
Trustee are for the benefit and security of the Certificateholders and, to the
extent provided in the applicable Series Supplement, for the benefit and
security of any Credit Support Provider. The Trustor is entering into this
Agreement, and the Trustee is accepting the trusts created hereby, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged.

                                  ARTICLE I

                         DEFINITIONS AND ASSUMPTIONS

     Section 1.1. Definitions. Except as otherwise specified herein or in the
applicable Series Supplement or as the context may otherwise require, the
following terms have the respective meanings set forth below for all purposes
of this Agreement.

     "Account": As defined in Section 3.10.

     "Accounting Date": With respect to any Series, if applicable, as defined
in the related Series Supplement.

     "Administrative Agent": With respect to any Series of Certificates, the
Person, if any, specified in the applicable Series Supplement for such Series
(which Person shall have agreed pursuant to such Series Supplement to assume
all the duties, obligations, responsibilities and liabilities of the
Administrative Agent as set forth in this Agreement and such Series Supplement
with respect to such Series), until a successor Person shall have become the
Administrative Agent pursuant to the applicable provisions of this Agreement
and such Series Supplement, and thereafter "Administrative Agent" shall mean
such successor Person.

     "Accreted Amount": With respect to each Series, if applicable, as defined
in the related Series Supplement.

     "Administrative Agent": With respect to each Series, if applicable, as
defined in the related Series Supplement.

     "Administrative Agent Termination Event": As defined in Section 7.1.

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     "Administrative Fee": With respect to each Series, if applicable, as
defined in the related Series Supplement.

     "Advance": As defined in Section 4.3.

     "Affiliate": With respect to any specified Person, any other Person
directly or indirectly controlling or controlled by or under direct or
indirect 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.

     "Agreement": With respect to any Series of Certificates, this Trust
Agreement and all amendments hereof and, unless the context otherwise
requires, the related Series Supplement.

     "Authenticating Agent": As defined in Section 5.15.

     "Authorized Newspaper": A newspaper in an official language of the
country of publication customarily published at least once a day, and
customarily published for at least five days in each calendar week, and of
general circulation in such city or cities specified pursuant to Section 5.1
with respect to the Certificates of any Series. Where successive publications
are required to be made in Authorized Newspapers, the successive publications
may be made in the same or in different newspapers in the same city meeting
the foregoing requirements and in each case on any Business Day in such city.

     "Available Funds": Unless otherwise specified in the applicable Series
Supplement, for any Distribution Date in respect of a given Series or Class,
the sum of (i) all amounts actually received on or with respect to the
Underlying Securities (including Liquidation Proceeds and investment income on
amounts in the Accounts) with respect to such Series during the related
Collection Period, (ii) all amounts received pursuant to any Credit Support
Instruments with respect to such Series for such Distribution Date and (iii)
all other amounts, if any, specified by the applicable Series Supplement.

     "Basic Documents": With respect to any Series, if applicable, as defined
in the related Series Supplement.

     "Board of Directors": Either the Board of Directors of the Trustor or any
executive or committee of such Board duly authorized under applicable law to
act on behalf of such Board.

     "Board Resolution": A copy of a resolution certified by the Secretary or
an Assistant Secretary of the Trustor to have been duly adopted by the Board
of Directors and to be in full force and effect on the date of such
certification and delivery to the Trustee.

     "Business Day": With respect to any Series (or Class within such Series)
of Certificates, as defined in the related Series Supplement.

     "Calculation Agent": With respect to each Series, as defined in the
related Series Supplement.

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     "Call Premium Percentage": With respect to any Series (or Class within
such Series), if applicable, as defined in the related Series Supplement.

     "Certificate Account": As defined in Section 3.9.

     "Certificate Owners": As defined in Section 5.9.

     "Certificate Register" and "Certificate Registrar": As respectively
defined in Section 5.4.

     "Certificateholder": Any Holder of a Certificate.

     "Certificates": Any Trust Certificates authorized by, and authenticated
and delivered under, this Agreement.

     "Class": With respect to any Series, any one of the classes of
Certificates of such Series, each consisting of Certificates having identical
terms.

     "Closing Date": With respect to any Series, the day on which Certificates
of such Series are first executed, authenticated and delivered.

     "Code": The Internal Revenue Code of 1986, as amended.

     "Collection Period": With respect to any Distribution Date for a Series
(or Class within such Series), the period specified in the related Series
Supplement.

     "Commission": The Securities and Exchange Commission, as from time to
time constituted, created under the Exchange Act or, if at any time after the
execution and delivery of this Agreement such Commission is not existing and
performing the duties now assigned to it, then the body then performing such
duties.

     "Corporate Trust Office": The principal corporate trust office of the
Trustee located at the address set forth in the related Series Supplement or
such other addresses as the Trustee may designate from time to time by notice
to the Holders, the Administrative Agent, if any, and the Trustor, or the
principal corporate trust office of any successor Trustee (or such other
addresses as a successor Trustee may designate from time to time by notice to
the Holders, the Administrative Agent, if any, and the Trustor).

     "Credit Support": With respect to any Series (or any Class within such
Series), a letter of credit, surety bond, swap agreement, put or call option
or other asset intended to support or ensure the timely or ultimate
distributions of amounts due in respect of all or certain of the Underlying
Securities for such Series or Class, which in each case is specified as such
in the related Series Supplement.

     "Credit Support Instrument": The instrument or document pursuant to which
the Credit Support for a given Series (or any Class within such Series) is
provided, as specified in the applicable Series Supplement.

                                      3
<PAGE>

     "Credit Support Provider": With respect to any Series (or any Class
within such Series), the Person, if any, that will provide any Credit Support
with respect to all or a portion of the Underlying Securities for such Series
or Class as specified in the applicable Series Supplement.

     "Currency": Dollars or Foreign Currency.

     "Cut-off Date": With respect to any Series, the date specified as such in
the related Series Supplement. For purposes of this Agreement, any Underlying
Security acquired by the Trustor after the applicable Cut-off Date but prior
to the applicable Closing Date and included in the related Trust as of such
Closing Date shall be deemed to have been Outstanding as of such Cut-off Date
and references to the principal balance of such Underlying Security as of such
Cut-off Date shall be deemed to be to the principal balance of such Underlying
Security as of the date on which it was acquired by the Trustor.

     "Definitive Certificates": As defined in Section 5.9.

     "Deleted Underlying Security": An Underlying Security replaced or to be
replaced by a Qualified Substitute Underlying Security.

     "Depositary": With respect to the Certificates of any Series (or Class
within such Series) issuable in whole or in part in the form of one or more
Global Securities, the Person designated as Depositary by the Trustor pursuant
to Section 5.1 until a successor Depositary shall have become such pursuant to
the applicable provisions of this Agreement, and thereafter "Depositary" shall
mean or include each Person who is then a Depositary hereunder, and if at any
time there is more than one such Person, "Depositary" as used with respect to
the Certificates of any such Series or Class shall mean the Depositary with
respect to the Certificates of that Series or Class.

     "Depository Agreement": If applicable, the agreement pursuant to which
the Depositary will agree to act as Depositary with respect to any Series (or
Class within such Series) of Certificates in accordance with Section 5.9.

     "Discount Certificate": Any Certificate that is issued with "original
issue discount" within the meaning of Section 1273(a) of the Code and any
other Certificate designated by the Trustor as issued with original issue
discount for United States federal income tax purposes.

     "Distribution Date": With respect to any Series (or Class within such
Series) of Certificates, each date specified as a "Distribution Date" for such
Series (or Class) in the related Series Supplement.

     "Dollar" or "$" or "USD": Such currency of the United States as at the
time of payment is legal tender for the payment of public and private debts.

     "Eligible Account": Either (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company the long
term unsecured debt obligations of which are rated by the Rating Agency the
higher of (x) at least the then current long-term rating of the Underlying
Securities or (y) in one of its two highest long-term rating categories
(unless otherwise specified in the Series Supplement) at the time any amounts
are held in deposit therein

                                      4
<PAGE>

or (ii) a trust account or accounts maintained as a segregated account or as
segregated accounts and held by a federal or state chartered depository
institution, national banking association or trust company in trust for the
benefit of the Certificateholders provided, however, that such depositary
institution, national banking association or trust company (or its parent) has
a long-term rating in one of the four highest categories by the Rating Agency.

     "Event of Default": With respect to any Series (or Class within such
Series) of Certificates, as specified in the related Series Supplement.

     "Exchange Act": The Securities Exchange Act of 1934, as amended.

     "Exchange Rate Agent": With respect to any Series (or Class within such
Series) of Certificates, if applicable, the Trustor or its agent so specified
in the related Series Supplement.

     "Executive Officer": With respect to any corporation, the Chief Executive
Officer, Chief Operating Officer, Chief Financial Officer, President, any Vice
President, the Secretary or the Treasurer of such corporation; with respect to
any partnership, any general partner thereof.

     "Extraordinary Trust Expense": With respect to any Series, as specified
in the related Series Supplement.

     "Final Scheduled Distribution Date": With respect to each Series, as
defined in the Series Supplement.

     "Fixed Pass Through Rate": With respect to any Fixed Rate Certificate, as
defined in the related Series Supplement.

     "Fixed Rate Certificate": A Certificate that provides for a payment of
interest at a Fixed Pass Through Rate.

     "Floating Pass Through Rate": With respect to any Floating Rate
Certificate, as defined in the related Series Supplement.

     "Floating Rate Certificate": A Certificate that provides for the payment
of interest at a Floating Pass Through Rate determined periodically by
reference to a formula specified pursuant to Section 5.1 and the related
Series Supplement.

     "Foreign Currency": A currency issued by the government of any country
other than the United States or a composite currency the value of which is
determined by reference to the values of the currencies of any group of
countries.

     "Global Security": A Certificate evidencing all or part of a Series (or
Class within such Series) of Certificates, issued to the Depositary for such
Series or Class in accordance with Section 5.9 and bearing the legend
prescribed therein.

     "Guaranteed Investment Contract": With respect to any Series (or Class
within such Series), a guaranteed investment contract or surety bond provided
for in the related Series Supplement, sold as part of the Trust or to the
Trustee for the benefit of the Certificateholders for

                                      5
<PAGE>

such Series, providing for the investment of funds in a related Account or
related Accounts and insuring a minimum or a fixed rate of return on the
investment of such funds, which contract or surety bond shall be an obligation
of an insurance company or other entity whose rating at the time of purchase
of such guaranteed investment contract or surety bond is no lower than the
rating on the Underlying Securities and shall satisfy any other requirements
specified in such Series Supplement.

     "Holder": The holder of a Certificate.

     "Independent": When used with respect to any specified Person means that
the Person specifies he or she (1) is in fact independent of the Trustor and
the Administrative Agent, if any, and of any Affiliate of any of the foregoing
Persons, (2) does not have any direct or indirect financial interest in the
Trustor or the Administrative Agent, if any, or in any Affiliate of either of
the foregoing Persons which is material with respect to such Person and (3) is
not connected with the Trustor or the Administrative Agent, if any, as an
officer, employee, promoter, underwriter, trustee, partner, director or person
performing similar functions.

     "Independent Certificate" means a certificate of an Independent Person,
as required by the TIA.

     "Letter of Credit": With respect to any Series or Class within such
Series, the letter of credit, if any, providing for the payment of all or a
portion of amounts due in respect of such Series or Class, issued to the
Trustee for the benefit of the Holders of such Series or Class, issued by the
related Credit Support Provider, all as specified in the related Series
Supplement.

     "Limited Guarantor": With respect to the Underlying Securities relating
to any Series (or Class within such Series), a Person specified in the related
Series Supplement as providing a guarantee or insurance policy or other credit
enhancement supporting the distributions in respect of such Series (or Class)
as and to the extent specified in such Series Supplement.

     "Limited Guaranty": With respect to any Series or Class within such
Series, any guarantee of or insurance policy or other comparable form of
credit enhancement with respect to amounts required to be distributed in
respect of such Series or Class or payments under all or certain of the
Underlying Securities relating to such Series or Class, executed and delivered
by a Limited Guarantor in favor of the Trustee, for the benefit of the
Certificateholders, as specified in the related Series Supplement.

     "Liquidation Proceeds": The amounts received by the Administrative Agent,
if any, or the Trustee in connection with (i) the liquidation of a defaulted
Underlying Security or collateral, if any, related thereto or (ii) the
repurchase, substitution or sale of an Underlying Security.

     "Notional Amount": With respect to any Class of Certificates, if
applicable, the initial notional amount specified in the related Series
Supplement on which distributions of interest may be determined at the
applicable Pass Through Rate, as the same may be adjusted as specified in such
Series Supplement.

                                      6
<PAGE>

     "Officer's Certificate": A certificate signed by any one (or, if
specified in this Agreement or any Series Supplement, more than one) Executive
Officer of the Trustor or Administrative Agent, as applicable, or, in the case
of the Trustee, a Responsible Officer.

     "Opinion of Counsel": A written opinion of counsel, who may, except as
otherwise expressly provided in this Agreement, be counsel for the Trustor or
the Administrative Agent, if any, acceptable to the Trustee, except that any
opinion of counsel relating to the qualification of any account required to be
maintained pursuant to this Agreement as an Eligible Account must state that
it is an opinion of counsel who is in fact Independent of the Trustor and the
Administrative Agent, if any.

     "Optional Exchange Date": With respect to any Series (or Class with such
Series), as defined, if applicable, in the related Series Supplement.

     "Outstanding": With respect to Certificates of a specified Series (or
Class within such Series), as of any date of determination, all such
Certificates theretofore authenticated and delivered under this Agreement and
the related Series Supplement except:

               (i) Certificates theretofore cancelled by the Certificate
     Registrar or delivered to the Certificate Registrar for cancellation; and

               (ii) Certificates in exchange for or in lieu of which other
     Certificates have been authenticated and delivered pursuant to this
     Agreement, unless proof satisfactory to the Trustee is presented that any
     such Certificates are held by a bona fide purchaser in whose hands such
     Certificates are valid obligations of the Trust;

provided, however, that in determining whether the Holders of the required
percentage of the aggregate Voting Rights of the Certificates have given any
request, demand, authorization, direction, notice, consent or waiver
hereunder, Certificates beneficially owned by the Trustor, or any Affiliate
thereof, shall be disregarded and deemed not to be Outstanding, and the Voting
Rights to which its Holder would otherwise be entitled shall not be taken into
account in determining whether the requisite percentage of aggregate Voting
Rights necessary to effect any such consent or take any such action has been
obtained except that, in determining whether the Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Certificates with respect to which the Trustor has
provided the Trustee an Officer's Certificate stating that such Certificates
are so owned shall be so disregarded. Certificates so owned that have been
pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee by certifying to such effect in
an Officer's Certificate the pledgee's right so to act with respect to such
Certificates and that the pledgee is not, to the actual knowledge of the
Trustee without any duty of investigation, the Trustor, the Administrative
Agent, if any, or any Affiliate of any thereof so owned. The principal amount
or notional amount, as applicable, of a Discount Certificate that shall be
deemed to be Outstanding for the determination referred to in the foregoing
proviso shall be the Stated Amount or Certificate Notional Amount, as
applicable, with respect thereto as of the date of such determination, and the
principal amount or notional amount, as applicable, of a Certificate
denominated in a Foreign Currency that shall be deemed to be Outstanding for

                                      7
<PAGE>

purposes of the determination referred to in the foregoing provision shall be
the amount calculated pursuant to Section 5.12(c).

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

     "Pass Through Rate": With respect to any Series (or Class within such
Series) of Certificates (except certain Discount Certificates and Certificates
entitled to nominal or no interest distributions) the annual rate at which
interest accrues on the Certificates of such Series (or Class), which may be a
fixed rate or a floating rate of interest, determined upon the basis and in
the manner specified in the related Series Supplement.

     "Paying Agent": As defined in Section 5.14.

     "Percentage Interest": With respect to a Certificate of any Series or
Class within a Series, the portion of such Series or Class evidenced by such
Certificate, expressed as a percentage, equal to the product of (x) a
fraction, the numerator of which is the initial Stated Amount or Notional
Amount, as applicable, represented by such Certificate and the denominator of
which is the aggregate initial Stated Amount or Notional Amount, as
applicable, of all the Certificates of such Series or Class and (y) 100.

     "Permitted Investments": With respect to any Series, unless otherwise
specified in the related Series Supplement, any one or more of the following
obligations or securities, provided that the total return specified by the
terms of each such obligation or security is at least equal to the purchase
price thereof:

               (i) direct obligations of, and obligations fully guaranteed by,
     the United States, the Federal Home Loan Mortgage Corporation, the
     Federal National Mortgage Association, the Federal Farm Credit System or
     any agency or instrumentality of the United States the obligations of
     which are backed by the full faith and credit of the United States of
     America; provided that obligations of, or guaranteed by, the Federal Home
     Loan Mortgage Corporation, the Federal National Mortgage Association or
     the Federal Farm Credit System shall be Permitted Investments only if, at
     the time of investment, it has the rating specified in such Series
     Supplement for Permitted Investments;

               (ii) demand and time deposits in, certificates of deposit of,
     or banker's acceptances issued by any depository institution or trust
     company (including the Trustee or any agent of the Trustee acting in
     their respective commercial capacities) incorporated under the laws of
     the United States or any State and subject to supervision and examination
     by federal and/or state banking authorities so long as the commercial
     paper and/or the short-term debt obligations of such depository
     institution or trust company (or, in the case of a depository institution
     which is the principal subsidiary of a holding company, the commercial
     paper or other short-term debt obligations of such holding company) at
     the time of such investment or contractual commitment providing for such
     investment have the rating specified in such Series Supplement for
     Permitted

                                      8
<PAGE>

     Investments; provided, however, that such rating shall be no lower than
     the rating on the Underlying Securities at the time of purchase of the
     investments;

               (iii) repurchase agreements with respect to (a) any security
     described in clause (i) above or (b) any other security issued or
     guaranteed by an agency or instrumentality of the United States, with an
     entity having the credit rating specified in such Series Supplement for
     Permitted Investments;

               (iv) securities bearing interest or sold at a discount issued
     by any corporation incorporated under the laws of the United States or
     any State that have the rating specified in such Series Supplement for
     Permitted Investments at the time of such investment or contractual
     commitment providing for such investment; provided, however, that such
     rating shall be no lower than the rating on the Underlying Securities;
     provided further that securities issued by any particular corporation
     will not be Permitted 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 for such Series to exceed
     10% of the aggregate outstanding principal balances and amounts of all
     the Underlying Securities and Permitted Investments held as part of the
     Trust for such Series;

               (v) commercial paper having at the time of such investment the
     rating specified in the Series Supplement for Permitted Investments; and

               (vi) a Guaranteed Investment Contract if and only if specified
     in the related Series Supplement, provided that the Rating Agency
     Condition is met.

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

     "Place of Distribution": With respect to any Series (or Class within such
Series) of Certificates, the place or places where the principal of (and
premium, if any) and interest on the Certificates of such Series (or Class)
are distributable as specified pursuant to Section 5.1.

     "Predecessor Certificate": With respect to any particular Certificate,
every previous Certificate evidencing all or a portion of the same interest as
that evidenced by such particular Certificate; and, for the purpose of this
definition, any Certificate authenticated and delivered under Section 5.5 in
lieu of a lost, destroyed or stolen Certificate shall be deemed to evidence
the same interest as the lost, destroyed or stolen Certificate.

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

     "Purchase Price": With respect to any Underlying Security required to be
repurchased by the Underlying Security Provider pursuant to Section 2.3 and as
confirmed by an Officer's Certificate from the Administrative Agent, if any,
or the Trustor, as the case may be, to the Trustee, an amount equal to the sum
of (i) the greater of (x) 100% of the principal balance thereof as of the date
of such purchase or (y) if the Underlying Security was purchased at a

                                      9
<PAGE>

premium above face value, the price paid therefor, (ii) accrued and unpaid
interest thereon from the immediately preceding interest allocation date, or
if no interest has been paid to the Trust with respect thereto, from the
Cut-Off Date, in each case at a rate equal to the Fixed Pass Through Rate or
the then applicable Floating Pass Through Rate, as the case may be, as
specified in the applicable Series Supplement, on the principal balance of
such Underlying Security as of the close of business on the Business Day
immediately preceding the date of purchase or such other day as may be
specified in the applicable Series Supplement on which such purchase is to
occur, (iii) any unreimbursed Advances and any unpaid Administrative Fees
allocable to such Underlying Security, (iv) expenses reasonably incurred or to
be incurred by the Administrative Agent, if any, or the Trustee in respect of
the breach or defect giving rise to the purchase obligation, including any
expenses arising out of the enforcement of the purchase obligation and (v) any
realized losses previously incurred with respect to such Underlying Security
and allocated to Certificateholders on or before the date of purchase.

     "Qualified Substitute Underlying Security": With respect to any Series,
as defined, if applicable, in the related Series Supplement.

     "Rating Agency": With respect to any Series (or Class within such
Series), as defined in the related Series Supplement.

     "Rating Agency Condition": With respect to any action or occurrence,
unless otherwise specified in the applicable Series Supplement, that each
Rating Agency shall have been given 10 days (or such shorter period acceptable
to each Rating Agency) prior notice thereof and that each Rating Agency shall
have notified the Trustor, the Trustee and the Administrative Agent, if any,
in writing that such action or occurrence will not result in a reduction or
withdrawal of the then current rating of any Certificate of the applicable
Series.

     "Record Date": With respect to any Distribution Date for any Series (or
Class within such Series) of Certificates, the date specified in the related
Series Supplement.

     "Required Interest": Unless otherwise specified in the related Series
Supplement, with respect to the Outstanding Certificates of any Series or any
Class thereof, the accrued and undistributed interest on the Stated Amount or
Notional Amount of such Outstanding Certificates computed at the applicable
Pass Through Rate.

     "Required Percentage-Amendment": Unless otherwise specified in the
related Series Supplement, 66-2/3% of the aggregate Voting Rights of
Certificates of such Series (or of a designated Class or group of Classes
within such Series) (either voting as separate Classes or as a single Class)
applicable to such matter, all as specified in the applicable Series
Supplement.

     "Required Percentage-Definitive Certificates": Unless otherwise specified
in the related Series Supplement, greater than 50% of the aggregate Voting
Rights of Certificates of such Series.

     "Required Percentage-Direction of Trustee": Unless otherwise specified in
the related Series Supplement, greater than 50% of the aggregate Voting Rights
of Certificates of such Series.

                                      10
<PAGE>

     "Required Percentage-Remedies": Unless otherwise specified in the related
Series Supplement, 66-2/3% of the aggregate Voting Rights of Certificates of
such Series.

     "Required Percentage-Removal of Trustee": Unless otherwise specified in
the related Series Supplement, greater than 50% of the aggregate Voting Rights
of Certificates of such Series.

     "Required Percentage-Waiver": Unless otherwise specified in the related
Series Supplement, 66-2/3% of the aggregate Voting Rights of Certificates of
such Series.

     "Required Premium": If applicable, unless otherwise specified in the
related Series Supplement, with respect to the Certificates of any Series or
any Class thereof, an amount equal to the product, as determined on any
Distribution Date with respect to such Series or Class, of (i) the Required
Principal for such Series or Class and (ii) the Call Premium Percentage for
such Series or Class.

     "Required Principal": As determined for any Distribution Date for a given
Series (or Class within such Series), unless otherwise specified in the
related Series Supplement, the amounts on deposit in the Certificate Account
allocable to principal payments on the Underlying Securities (including from
Credit Support, if any, and Advances, if any, but excluding amounts in respect
of principal payments to the extent that Advances with respect thereto were
distributed as Required Principal on a prior Distribution Date) and required
to be distributed in respect of Certificates of such Series (or Class) in
accordance with the terms of such Certificates and such related Series
Supplement.

     "Required Rating": With respect to any Series (or Class within such
Series), the rating category (or categories) specified in the Series
Supplement that, as a condition to the issuance of such Series or Class, is
(or are) the lowest category (or categories) in which the Certificates of such
Series or Class may be categorized by the Rating Agency.

     "Requisite Reserve Amount": As of any date with respect to any Series (or
Class within such Series) of Certificates, the amount, if any, required to be
maintained in the Reserve Account, if any, for such Series or Class as
specified in or determined pursuant to the related Series Supplement.

     "Reserve Account": An Eligible Account, if any, created and maintained
pursuant to Section 3.11.

     "Responsible Officer": With respect to the Trustee, any officer within
the Corporate Trust Office of the Trustee, including any Vice President,
Assistant Vice President, Assistant Treasurer, Assistant Secretary or any
other officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and also, with respect to a
particular matter, any other officer to whom such matter is referred because
of such officer's knowledge of and familiarity with the particular subject.

     "Retained Interest": If applicable, with respect to any Underlying
Security, an ownership interest in and a right to a portion of the payments
thereon by the obligor thereof, as specified in

                                      11
<PAGE>

the Underlying Securities Schedule to the related Series Supplement, held by
the Person so specified in such Underlying Securities Schedule.

     "Scheduled Final Distribution Date": With respect to any Certificate, the
date on which all the unpaid principal of (and premium, if any, on) such
Certificate is scheduled, without giving effect to any prepayment, exchange or
early termination, to become due and payable as provided therein and in the
applicable Series Supplement.

     "Series": A separate series of Certificates issued pursuant to this
Agreement and a related Series Supplement, which series may be divided into
two or more Classes, as provided in such Series Supplement.

     "Series Supplement": An agreement supplemental to this Agreement that
authorizes the issuance of a particular Series (and each Class within such
Series) of Certificates.

     "Specified Currency": As defined in the related Series Supplement.

     "State": Any one of the 50 states of the United States or the District of
Columbia.

     "Stated Amount": With respect to an Outstanding Certificate, as
determined at any time, the maximum amount that the Holder thereof is entitled
to receive as distributions allocable to principal payments on the Underlying
Securities. The Stated Amount, if any, of any Class within a given Series
(other than those Classes, if any, specified in the related Series
Supplement), as of any date of determination, shall be equal to the aggregate
initial Stated Amount thereof less the sum of (i) all amounts allocable to
prior distributions made to such Class in respect of principal of the
Underlying Securities and (ii) any reductions attributable to Certificates
surrendered in exchange for Underlying Securities, as and to the extent
provided in the applicable Series Supplement.

     "Sub-Administration Account": As defined in Section 3.8.

     "Sub-Administration Agreement": The written contract, if any, between the
Administrative Agent, if any, specified in the applicable Series Supplement,
or Trustee and a Sub-Administrative Agent and any successor Administrative
Agent or Trustee or Sub-Administrative Agent relating to the administration of
an Underlying Security or certain Underlying Securities as provided in Section
3.2.

     "Sub-Administrative Agent": Any Person with which the Administrative
Agent, if any, specified in the applicable Series Supplement, or the Trustee
has entered into a Sub-Administration Agreement and which meets the
qualifications of a Sub-Administrative Agent pursuant to Section 3.2.

     "Surety Bond": If so specified in the Series Supplement, with respect to
any Series (or Class within such Series) of Certificates, the surety bond
providing for the distribution under certain circumstances specified in such
Series Supplement of amounts to the Certificateholders of such Series (or
Class), which surety bond will be issued to the Trustee for the benefit of
such Certificateholders by the related Credit Support Provider, all as
specified in such Series Supplement.

                                      12
<PAGE>

     "Treasury Regulations": Regulations, including proposed or temporary
regulations promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

     "Trustor": Synthetic Fixed-Income Securities, Inc., a Delaware
corporation, and, if a successor Person shall have become the Trustor pursuant
to any applicable provisions of this Agreement, "Trustor" shall mean such
successor Person.

     "Trustor Order" or "Trustor Request": A written order or request,
respectively, signed in the name of the Trustor by any of its Chief Executive
Officer, Chief Financial Officer, Chief Operating Officer, President, a Vice
President, its Treasurer, an Assistant Treasurer, its Secretary or an
Assistant Secretary and delivered to the Trustee.

     "Underlying Security Provider": With respect to any Underlying Security
purchased pursuant to an Underlying Security Purchase Agreement, each entity
specified as such in the applicable Series Supplement or its successor in
interest.

     "Underlying Security Purchase Agreement": With respect to certain Series
of Certificates, as designated in the applicable Series Supplement, the
purchase agreement providing for the purchase by the Trustor of one or more
Underlying Securities for such Series, substantially in the form acceptable to
the Trustor, provided, that if required by the applicable Series Supplement,
such agreement shall provide for the repurchase of such Underlying Securities
on the terms set forth in Section 2.3.

     "Underlying Securities": With respect to any Series, the asset or assets
sold as part of the Trust for such Series or acquired (or, in the case of an
agreement, entered into) by the Trustee for the benefit of the Holders of such
Series and, if and to the extent provided in the applicable Series Supplement,
for the benefit of any Credit Support Provider, all as identified in the
Underlying Securities Schedule to the related Series Supplement. The
Underlying Securities for any such Series or the related Trust shall not
constitute Underlying Securities for any other Series or any other Trust.

     "Underlying Securities Issuer": As defined in the related Series
Supplement.

     "Underlying Securities Schedule": With respect to any Series, a listing
of the Underlying Securities for such Series as of the Closing Date,
including, with respect to each Underlying Security, the obligor and the
principal balance thereof, which shall be attached to such Series Supplement
as Schedule A.

     "TIA": The Trust Indenture Act of 1939, as amended.

     "Trust": With respect to any Series, the segregated asset or pool of
assets subject hereto, constituting the trust created hereby and by the
related Series Supplement and to be administered hereunder and thereunder,
consisting of those Underlying Securities and the Credit Support, if
applicable, and all sums distributed in respect thereof that are specified as
being part of the Trust for such Series in the related Series Supplement, all
for the benefit of the Certificateholders of such Series as of any particular
time.

                                      13
<PAGE>

     "Trust Termination Event": With respect to any Series, as specified in
the related Series Supplement.

     "Trustee": With respect to any Series, the Person so specified in the
applicable Series Supplement (which Person shall have agreed pursuant to such
Series Supplement to assume all the duties, obligations, responsibilities and
liabilities of the Trustee as set forth in this Agreement and such Series
Supplement with respect to the related Series of Certificates) for such Series
or any co-trustee appointed pursuant to Section 8.10, until a successor Person
shall have become the Trustee pursuant to the applicable provisions of this
Agreement and the applicable Series Supplement, and thereafter "Trustee" shall
mean such successor Person.

     "Uniform Commercial Code": The Uniform Commercial Code as in effect in
the relevant jurisdiction.

     "United States": The United States of America (including the States), its
territories, its possessions and other areas subject to its jurisdiction.

     "Voting Rights": With respect to any Series (or Class within such Series)
of Certificates, the portion of the aggregate voting rights of the
Certificates of such Series or Class which shall be allocated to any
Certificate as specified in the applicable Series Supplement.

     Section 1.2. Rules of Construction. Unless the context otherwise
requires:

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

               (ii) an accounting term not otherwise defined has the meaning
     assigned to it in accordance with generally accepted accounting
     principles as in effect in the United States from time to time;

               (iii) "or" is not exclusive;

               (iv) the words "herein," "hereof," "hereunder" and other words
     of similar import refer to this Agreement as a whole and not to any
     particular Article, Section or other subdivision;

               (v) "including" means including without limitation; and

               (vi) words in the singular include the plural and words in the
     plural include the singular.

                                  ARTICLE II

                DECLARATION OF TRUSTS; ISSUANCE OF CERTIFICATES

     Section 2.1. Creation and Declaration of Trusts; Assignment of Underlying
Securities. (a) The Trustor, concurrently with the execution and delivery
hereof, does hereby agree to (i) sell, assign, convey and set-over to the
Trustee, on behalf and for the benefit of the Certificateholders of each given
Series of Certificates and without recourse, all the right, title and

                                      14
<PAGE>

interest of the Trustor, including any security interest therein for the
benefit of the Trustor, in, to and under the Underlying Securities
attributable to each such Series (except for the Underlying Securities
attributable to such Series which are not sold by the Trustor, as specified in
the Underlying Securities Schedule to the applicable Series Supplement), in
each case as identified on the applicable Underlying Securities Schedule, and
all other assets included or to be included in the respective Trust for the
benefit of the Certificateholders of each such Series or (ii) deliver to the
Trustee for deposit in the Certificate Account an amount, in immediately
available funds in a form acceptable to the Trustee, sufficient to acquire the
Underlying Securities attributable to such Series, in each case as identified
on the Underlying Security Schedule to the applicable Series Supplement, and
all other assets to be included in the respective Trust for the benefit of the
Certificateholders of each such Series. Each such sale will include all
interest, premium (if any) and principal received by or on behalf of the
Trustor of, on or with respect to any such Underlying Securities due after the
applicable Cut-off Date, and, unless otherwise specified in the Series
Supplement, will exclude (i) all interest, premium (if any) and principal of,
on or with respect to any such Underlying Securities due on or before the
applicable Cut-off Date and (ii) any Retained Interest in any such Underlying
Security.

          (b) In connection with each sale referred to in the preceding
paragraph, the Trustor shall, not later than the applicable Closing Date, (i)
deposit the Underlying Securities for a given Series (except for the
Underlying Securities attributable to such Series which are to be acquired
from a Person other than the Trustor, as specified on the Underlying
Securities Schedule to the applicable Series Supplement) with the Trustee by
physical delivery of such Underlying Securities, duly endorsed, to the Trustee
or by causing such Underlying Securities to be registered by book entry in the
name of the Trustee and (ii) with respect to each such Underlying Security,
deliver or cause to be delivered to the Trustee all documents necessary to
transfer ownership of each such Underlying Security to the Trustee.

          (c) Unless otherwise specified in the applicable Series Supplement,
the sale of such Underlying Securities by the Trustor for a given Series
accomplished hereby and by such Series Supplement is absolute and is intended
by the parties hereto as a sale and not a loan. The Trustor represents and
covenants that the Underlying Securities as of the respective Closing Dates
will be free and clear of any right, charge, security interest or lien or
claim in favor of the Trustor and, with respect to any sale of Underlying
Securities, that the Trustor will as of such respective Closing Date have the
right to sell the applicable Underlying Securities to the Trustee.

     Section 2.2. Acceptance by Trustee. (a) With respect to each Series, the
Trustee will acknowledge receipt by it, or by a custodian on its behalf, of
the related Underlying Securities and the related documents referred to in
Section 2.1, now existing or hereafter acquired, and declares that it will
hold such Underlying Securities and documents and all other documents
delivered to it pursuant to this Agreement, and that it will hold all such
assets and such other assets (including Underlying Securities acquired from a
Person other than the Trustor) comprising the Trust for a given Series of
Certificates, in trust for the exclusive use and benefit of all present and
future Certificateholders of such Series and for the purposes and subject to
the terms and conditions set forth in this Agreement.

          (b) The Trustee, or a custodian on its behalf, shall review all
documents received by it pursuant to Section 2.1 within 45 days after receipt
thereof. If in the process of

                                      15
<PAGE>

reviewing such documents the Trustee or such custodian discovers any document
or documents to be missing or defective, the Trustee shall promptly (but in
any event within 10 Business Days) so notify the Trustor and the
Administrative Agent, if any. In addition, upon the discovery by the Trustor,
the Administrative Agent, if any, or the Trustee of a breach of any of the
representations and warranties made by any Underlying Security Provider in the
related Underlying Security Purchase Agreement, if any, in respect of any
Underlying Security that materially and adversely affects the interests of the
Certificateholders, the party discovering such breach shall give prompt
written notice to the other parties hereto (but in any event within 10
Business Days).

     Section 2.3. Repurchase or Substitution of Certain Underlying Securities
by the Underlying Security Provider. (a) If and to the extent provided for in
a Series Supplement relating to a given Series of Certificates, upon discovery
or receipt of notice pursuant to Section 2.2 that a document is missing or
defective, the Trustee shall immediately notify the Trustor, the
Administrative Agent, if any, and the Rating Agency that such document is
defective or missing and, unless the Trustor provides to the Trustee an
Officer's Certificate stating such missing or defective document will not have
a materially adverse effect on the related Trust, the Administrative Agent, if
any, or the Trustee shall immediately so notify the Underlying Security
Provider and require that the Underlying Security Provider deliver such
missing document or cure such defect within 60 days from the date on which
such Underlying Security Provider was first notified of such missing document
or defect, and if such Underlying Security Provider does not deliver such
missing document or cure such defect in all material respects during such
period, the Administrative Agent, if any, or the Trustee shall use its best
efforts to enforce the Underlying Security Provider's obligation, if any,
under the related Underlying Security Purchase Agreement to repurchase such
Underlying Security from the Trustee at the applicable Purchase Price within
90 days after the date on which the Underlying Security Provider was first
notified of such missing document or defect. The Purchase Price for the
repurchased Underlying Security shall be delivered to the Administrative
Agent, if any, or to the Trustee directly for deposit in the Certificate
Account and the Trustee, upon receipt either of certification by the
Administrative Agent, if any, of such deposit or of such deposit directly,
shall release to the Underlying Security Provider the related documents in its
possession and shall execute and deliver such instruments of transfer or
assignment, in each case without recourse, as shall be necessary to vest in
the Underlying Security Provider any Underlying Security released pursuant
hereto, and the Trustee shall have no further obligations with regard to such
documents. The foregoing notwithstanding, if and to the extent the Series
Supplement provides, the Underlying Security Provider may, as an alternative
to repurchasing any such Underlying Security as provided above, if and to the
extent so provided in the Underlying Security Purchase Agreement, cause such
Underlying Security to be removed from the Trust (in which case it shall
become a Deleted Underlying Security) by agreeing to substitute one or more
Qualified Substitute Underlying Securities in the manner and subject to the
limitations set forth in Section 2.3(b) and the related Series Supplement. It
is understood and agreed that the obligation of the Underlying Security
Provider to repurchase or substitute for any Underlying Security as to which a
constituent document is missing or a defect in a constituent document exists
shall, if such defect is not cured or such missing document is not provided,
constitute (unless otherwise specified in the applicable Series Supplement)
the sole remedy respecting such omission or defect available to the
Certificateholders or the Trustee on behalf of the Certificateholders. It is
further understood and agreed that, unless otherwise provided in the related
Series Supplement, in no

                                      16
<PAGE>

event shall either the Trustor or the Administrative Agent, if any, be
obligated to repurchase or substitute for such an Underlying Security,
regardless of whether the Underlying Security Provider defaults on its
obligation to repurchase or substitute for such an Underlying Security.

          (b) If and to the extent provided for in a Series Supplement
relating to a given Series of Certificates, with respect to any Deleted
Underlying Security for which the Trustor or the Underlying Security Provider
substitutes a Qualified Substitute Underlying Security or Assets, such
substitution shall be effected by the Trustor or Underlying Security Provider
delivering to the Trustee or a custodian on its behalf such Qualified
Substitute Underlying Security or Assets and such documents and agreements,
with all necessary endorsements thereon, as would be required under the terms
of Section 2.1, together with an Officer's Certificate of the Trustor or
relevant Underlying Security Provider certifying that each such Qualified
Substitute Underlying Security satisfies the definition thereof and the
requirements under this Section. The Trustee or such custodian shall
acknowledge receipt of such Qualified Substitute Underlying Security or Assets
and, within five Business Days thereafter, review such documents in the manner
specified in Section 2.2. The Trustor shall give or cause to be given written
notice to the Certificateholders of such Series and the Rating Agency that
such substitution has taken place and shall amend the Underlying Security
Schedule to reflect the removal of such Deleted Underlying Security from the
terms of this Agreement and the substitution of the Qualified Substitute
Underlying Security or Assets. Upon such substitution, such Qualified
Substitute Underlying Security or Assets shall be subject to the terms of this
Agreement in all respects, including those related to the representations and
warranties included in the Underlying Security Purchase Agreement as of the
date of substitution. The terms upon which such substitution may be effected
shall be specified in the applicable Series Supplement.

          (c) Unless otherwise provided in the Series Supplement, no
substitution of Underlying Securities allowed by the Series Supplement shall
be effected unless the Trustee obtains, at the expense of the
Certificateholders, an Opinion of Counsel to the effect that the substitution
will not cause the Trust to be taxable as a corporation for federal income tax
purposes.

     Section 2.4. Representations and Warranties of the Trustor and
Representations, Warranties and Covenants of the Administrative Agent. (a) The
Trustor hereby represents and warrants to the Trustee that as of the Closing
Date or as of such other date specifically provided herein or in the
applicable Series Supplement:

               (i) the Trustor is a corporation duly organized, validly
     existing and in good standing under the laws of the State of Delaware;

               (ii) with respect to each Series Supplement, to the Trustor's
     knowledge, the information set forth in the Underlying Security Schedule
     with respect to each Underlying Security is true and correct in all
     material respects at the date or dates respecting which such information
     is furnished;

               (iii) the execution and delivery of this Agreement by the
     Trustor and its performance of and compliance with the terms of this
     Agreement will not violate the Trustor's articles of incorporation or
     by-laws or constitute a default (or an event which,

                                      17
<PAGE>

     with notice or lapse of time, or both, would constitute a default) under,
     or result in the breach or acceleration of, any material contract,
     agreement or other instrument to which the Trustor is a party or which
     may be applicable to the Trustor or any of its assets;

               (iv) the Trustor has the full power and authority to enter into
     and consummate all transactions contemplated by this Agreement, has duly
     authorized the execution, delivery and performance of this Agreement and
     has duly executed and delivered this Agreement. This Agreement, upon its
     execution and delivery by the Trustor and assuming due authorization,
     execution and delivery by the Trustee, will constitute a valid, legal and
     binding obligation of the Trustor, enforceable against it in accordance
     with the terms hereof, except as such enforcement may be limited by
     bankruptcy, insolvency, reorganization, receivership, moratorium or other
     laws relating to or affecting the rights of creditors generally, and by
     general equity principles (regardless of whether such enforcement is
     considered a proceeding in equity or at law);

               (v) the Trustor is not in violation, and the execution and
     delivery of this Agreement by the Trustor and its performance and
     compliance with the terms of this Agreement will not constitute a
     violation, of any order or decree of any court or any order or regulation
     of any federal, state, municipal or governmental agency having
     jurisdiction over the Trustor or its properties, which violation would
     reasonably be expected to have a material and adverse effect on the
     condition (financial or otherwise) or operations of the Trustor or its
     properties or on the performance of its duties hereunder; and

          (b) The Trustor shall make any additional representations and
warranties, if any, that may be specified in the applicable Series Supplement.

     It is understood and agreed that the representations and warranties of
the Trustor set forth in this Sections 2.4(a) and 2.4(b) shall survive
delivery of the respective documents to the Trustee and shall inure to the
benefit of the Trustee on behalf of the Certificateholders notwithstanding any
restrictive or qualified endorsement or assignment. Upon discovery by any of
the Trustor, the Administrative Agent, if any, or the Trustee of a breach of
any of the foregoing representations and warranties which materially and
adversely affects the interests of the Certificateholders, the party
discovering such breach shall give prompt written notice thereof to the other
parties.

          (c) The Administrative Agent, if any, shall make such
representations, warranties, if any, and covenants that may be specified in
the applicable Series Supplement.

     Upon discovery by any of the Trustor, the Administrative Agent, if any,
or the Trustee of a breach of any of the foregoing representations, warranties
and covenants which materially and adversely affects the interests of the
Certificateholders, the party discovering such breach shall give prompt
written notice thereof to the other parties.

     Section 2.5. Breach of Representation, Warranty or Covenant. (a) Within
30 days of the earlier of discovery by the Trustor or receipt of notice by the
Trustor of a breach of any representation or warranty of the Trustor set forth
in Section 2.4(a) that materially and adversely

                                      18
<PAGE>

     affects the interests of the Certificateholders of a given Series of
     Certificates, the Trustor shall cure such breach in all material
     respects.

          (b) With respect to an Administrative Agent appointed pursuant to
the applicable Series Supplement, within 30 days of the earlier of discovery
by such Administrative Agent or receipt of notice by such Administrative Agent
of a breach of any representation, warranty or covenant of such Administrative
Agent set forth in the applicable Series Supplement that materially and
adversely affects the interests of the Certificateholders, such Administrative
Agent shall cure such breach in all material respects.

     Section 2.6. Agreement to Authenticate and Deliver Certificates. With
respect to each Series of Certificates and the related Trust, the Trustee
hereby agrees and acknowledges that it will, concurrently with the sale to and
receipt by it of the related Underlying Securities and delivery to it by the
Trustor of executed Certificates of such Series, cause to be authenticated and
delivered to or upon the order of the Trustor, in exchange for the Underlying
Securities and such other assets constituting the Trust for a given Series,
Certificates duly authenticated by or on behalf of the Trustee in authorized
denominations evidencing ownership of the entire Trust for such Series, all in
accordance with the terms and subject to the conditions of Sections 5.2 and
5.13.

     Section 2.7. Statement of Intent. It is the intention of the parties
hereto that, for purposes of federal income taxes, state and local income and
franchise taxes and any other taxes imposed upon, measured by or based upon
gross or net income, the Trust shall be treated as a grantor trust, but
failing that, as a partnership and in no event, as a corporation or publicly
traded partnership taxable as a corporation. The terms of this Agreement shall
be interpreted to further this intention of the parties. The parties hereto
agree that, unless otherwise required by appropriate tax authorities, the
Trustee shall file or cause to be filed annual or other necessary returns,
reports and other forms consistent with such intended characterization. Each
Certificateholder and each beneficial owner of a Certificate by acceptance of
its Certificate (or its beneficial interest therein) agrees, unless otherwise
required by appropriate tax authorities, to file its own tax returns and
reports in a manner consistent with such characterization.

                                 ARTICLE III

                         ADMINISTRATION OF EACH TRUST

     Section 3.1. Administration of each Trust. (a) The Trustee (and, to the
extent required in the applicable Series Supplement, any Administrative Agent)
shall administer the Underlying Securities for each given Trust for the sole
benefit of the Certificateholders of the related Series. In engaging in such
activities, the Trustee (or the Administrative Agent, if applicable) shall,
subject to the provisions of Article VI hereof, follow or cause to be followed
collection procedures in accordance with the terms of this Agreement and the
applicable Series Supplement, the respective Underlying Securities and any
applicable Credit Support Instruments. With respect to each Trust, and subject
only to the above-described standards and the terms of this Agreement, the
related Series Supplement and the respective Underlying Securities and
applicable Credit Support Instruments, if any, the Trustee (or the
Administrative Agent, if applicable) shall have full power and authority,
acting alone or through Sub-Administrative

                                      19
<PAGE>

Agents as provided in Section 3.2, to do or cause to be done any and all
things in connection with such administration which it deems necessary to
comply with the terms of this Agreement and the applicable Series Supplement.

          (b) Without limiting the generality of the terms of paragraph (a) of
this Section 3.1, with respect to any Series of Certificates, the
Administrative Agent, if any, specified in the applicable Series Supplement
shall be hereby authorized and empowered by the Trustor, when such
Administrative Agent believes it appropriate in its reasonable judgment and
when otherwise required by a Series Supplement, in its own name or in the name
of a Sub-Administrative Agent, (i) to instruct the Trustee to make
distributions or payments from the Certificate Account or any other Account
for such Series, as set forth herein or in the related Series Supplement, and
(ii) to the extent specified in the related Series Supplement, to execute and
deliver, on behalf of the Certificateholders of such Series and the Trustee or
any of them, and upon notice to the Trustee, any and all instruments of
satisfaction or cancellation, or of partial or full release or discharge, and
all other comparable instruments, with respect to any of the Underlying
Securities relating to such Series.

          (c) The duties of the Trustee and the Administrative Agent, if any,
shall be performed in accordance with applicable local, state and federal law,
and the Trustee (or, if specified in the applicable Series Supplement, the
Administrative Agent) shall make any and all filings, reports, notices or
applications with, and seek any comments and authorizations from, the
Commission and any State securities authority on behalf of the Trust for each
Series. If the applicable Series Supplement appoints an Administrative Agent,
the Trustee, in its capacity as Trustee, shall execute, at the direction of
such Administrative Agent, any powers of attorney and other documents
necessary or appropriate to enable the Administrative Agent to carry out any
of its administrative duties hereunder; provided, however, that the Trustee,
in its capacity as Trustee, shall not be accountable for the actions of the
Administrative Agent or any Sub-Administrative Agents under such powers of
attorney.

     Section 3.2. Sub-Administration Agreements Between Administrative Agent
or Trustee and Sub-Administrative Agents. (a) Unless otherwise provided in a
Series Supplement, an Administrative Agent specified in the applicable Series
Supplement and the Trustee may enter into Sub-Administration Agreements with
one or more Sub-Administrative Agents in order to delegate their
administrative obligations with respect to a related Series under this
Agreement to such Sub-Administrative Agents; provided, however, that (i) such
delegation shall not release either such Administrative Agent or the Trustee,
as applicable, from the duties, obligations, responsibilities or liabilities
arising under this Agreement; (ii) the Rating Agency Condition shall have been
satisfied with respect to the entering into of any such agreement and (iii)
such agreements are consistent with the terms of this Agreement and, with
respect to Certificates of any Series, the related Series Supplement. With
respect to any Series (or Class within such Series) of Certificates, each
Sub-Administration Agreement shall impose on the Sub-Administrative Agent
requirements conforming to the provisions set forth in Section 3.1 and provide
for administration of the related Trust and all or certain specified
Underlying Securities for such Series consistent with the terms of this
Agreement. Additional requirements relating to the scope and contents of any
Sub-Administration Agreement may be provided in the applicable Series
Supplement. Such Administrative Agent shall deliver to the Trustee and the
Trustor copies of all Sub-Administration Agreements which it enters into, and
any amendments or

                                      20
<PAGE>

modifications thereof, promptly upon the Administrative Agent's execution and
delivery of any such instruments.

          (b) As part of its duties hereunder, an Administrative Agent
specified in the applicable Series Supplement shall enforce the obligations of
each Sub-Administrative Agent under any related Sub-Administration Agreement
which it enters into and of the Underlying Security Provider, if any, under
any Underlying Security Purchase Agreement, for the benefit of the Trustee and
the Certificateholders of a given Series. Such enforcement, including the
legal prosecution of claims, the termination of Sub-Administration Agreements
or Underlying Security Purchase Agreements, as appropriate, and the
institution of Proceedings 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 Administrative Agent, in its good faith business judgment, deems necessary
or advisable, subject in all cases to the provisions of Article VI hereof.

     Section 3.3. Successor Sub-Administrative Agents. An Administrative Agent
specified in the applicable Series Supplement and the Trustee shall each be
entitled to terminate any Sub-Administration Agreement which it enters into
and the rights and obligations of any Sub-Administrative Agent under any
Sub-Administration Agreement in accordance with the terms and conditions of
any such Sub-Administration Agreement. In the event of a termination of any
Sub-Administration Agreement, the Administrative Agent or the Trustee, as
applicable, shall simultaneously reassume direct responsibility for all
obligations delegated in such Sub-Administration Agreement without any act or
deed on the part of the applicable Sub-Administrative Agent, the Trustee or
the Administrative Agent, and the Administrative Agent or the Trustee, as
applicable, either shall administer directly the related Underlying Securities
or shall enter into a Sub-Administration Agreement with a successor
Sub-Administrative Agent which so qualifies under Section 3.2.

     Section 3.4. Liability of the Administrative Agent. Notwithstanding any
Sub-Administration Agreement or any of the provisions of this Agreement
relating to agreements or arrangements between an Administrative Agent, if
any, or the Trustee and a Sub-Administrative Agent or references to actions
taken through a Sub-Administrative Agent or otherwise, the Administrative
Agent, if any is specified in the applicable Series Supplement, or the
Trustee, as applicable, shall remain obligated and primarily liable to the
Trustee and the Certificateholders for the administering of the Trust and the
Underlying Securities for each related Series of Certificates to the extent
provided herein and in the related Series Supplement in accordance with the
provisions of Section 3.1 without diminution of such obligation or liability
by virtue of any such Sub-Administration Agreements or arrangements or by
virtue of indemnification from the Sub-Administrative Agent and to the same
extent and under the same terms and conditions as if the Administrative Agent
or the Trustee, as applicable, alone were administering the Underlying
Securities, and the Administrative Agent or the Trustee, as applicable, shall
not thereby be released from any duties or responsibilities set forth in this
Agreement or the related Series Supplement. The Administrative Agent and the
Trustee shall be entitled to enter into any agreement with a
Sub-Administrative Agent for indemnification of the Administrative Agent or
the Trustee by such Sub-Administrative Agent for any liability or obligation
sustained by the Administrative Agent or the Trustee in connection with any
act or failure to act by the Sub-Administrative Agent, and nothing contained
in this Agreement shall be deemed to limit or modify such indemnification.

                                      21
<PAGE>

     Section 3.5. No Contractual Relationship Between Certain
Sub-Administrative Agents and Trustee or Certificateholders. Any
Sub-Administration Agreement between an Administrative Agent specified in the
applicable Series Supplement and a Sub-Administrative Agent that may be
entered into and any transactions or services relating to the Underlying
Securities pursuant to such an agreement shall be deemed to be between the
Sub-Administrative Agent and the Administrative Agent alone, and the Trustee
and Certificateholders shall not be deemed parties thereto and shall have no
claims, rights, obligations, duties or liabilities with respect to the
Sub-Administrative Agent except as set forth in Section 3.6. Except as set
forth in Section 3.6, the Administrative Agent shall be solely liable for all
fees owed by it to any Sub-Administrative Agent, irrespective of whether the
Administrative Agent's compensation pursuant to this Agreement is sufficient
to pay such fees; provided, however, that if so provided in the applicable
Series Supplement, a Sub-Administrative Agent shall be entitled to a Retained
Interest in certain Underlying Securities as and to the extent specified in
the Underlying Securities Schedule to such Series Supplement. Each such
Sub-Administrative Agent shall be reimbursed by the Administrative Agent for
expenditures made by such Sub-Administrative Agent to the same extent the
Administrative Agent would be reimbursed for such expenditures pursuant to the
terms of this Agreement.

     Section 3.6. Assumption or Termination of Sub-Administration Agreements
by Trustee. Except as and to the extent otherwise provided in a Series
Supplement, in the event an Administrative Agent specified in the applicable
Series Supplement shall for any reason no longer be acting in such capacity
with respect to any Series, the Trustee or its designee shall thereupon assume
all the rights and obligations of the Administrative Agent under each
Sub-Administration Agreement that the Administrative Agent may have entered
into with respect to any Underlying Security or Assets related to such Series,
provided that the Trustee may elect to terminate any such Sub-Administration
Agreement in accordance with its terms. Except as otherwise provided in such a
Series Supplement, the Trustee, its designee or any successor Administrative
Agent shall be deemed to have assumed all the Administrative Agent's interest
therein and to have replaced the Administrative Agent as a party to each
Sub-Administration Agreement to the same extent as if each Sub-Administration
Agreement had been assigned to the assuming party; provided, however, that the
Administrative Agent shall not thereby be relieved of any liability or
obligations under any Sub-Administration Agreement and provided further, that
the Trustee shall in no event be obligated to make any Advances if it is
prohibited by law or regulation from doing so or from obligating itself to do
so. The Administrative Agent at its expense shall, upon request of the
Trustee, deliver to such assuming party all documents and records relating to
each Sub-Administration Agreement and the Underlying Securities then being
administered by it and an accounting of amounts collected and held by it and
otherwise use its best efforts to effect the orderly and efficient transfer of
the Sub-Administration Agreements to the assuming party.

     Section 3.7. Collection of Certain Underlying Security Payments. With
respect to any Series or Class of Certificates, the Trustee (or the
Administrative Agent if specified in the related Series Supplement) shall make
reasonable efforts to collect all payments required to be made pursuant to the
terms of the Underlying Securities or any related Credit Support Instruments
in a manner consistent with the terms of this Agreement, the related Series
Supplement, such Underlying Securities and any related Credit Support
Instruments.

                                      22
<PAGE>

     Section 3.8. Collections by Sub-Administrative Agent. Unless otherwise
provided in the applicable Series Supplement, in the event a
Sub-Administrative Agent is administering one or more Underlying Securities
pursuant to a Sub-Administration Agreement, the Sub-Administrative Agent shall
be required to immediately direct the Trustee to deposit into an Eligible
Account established by such Sub-Administrative Agent (a "Sub-Administration
Account") any amounts collected with respect thereto, and not later than the
Business Day after receipt thereof, all such amounts shall be deposited into
the related Certificate Account.

     Section 3.9. Certificate Account. (a) For each Series of Certificates,
the Trustee shall establish and maintain one or more Eligible Accounts
(collectively, the "Certificate Account"), held in trust for the benefit of
the Certificateholders of such Series. The Trustee on behalf of such
Certificateholders shall possess all right, title and interest in all funds on
deposit from time to time in each Certificate Account and in all proceeds
thereof. With respect to each Series of Certificates, the Certificate Account
shall be under the sole dominion and control of the Trustee for the benefit of
the related Certificateholders. With respect to each Series of Certificates,
the Trustee shall deposit or the Administrative Agent, if any, specified in
the applicable Series Supplement shall direct the Trustee to deposit or cause
to be deposited in the Certificate Account no later than the Business Day
after receipt thereof all amounts collected with respect to the Underlying
Securities, any Credit Support and all Liquidation Proceeds related to such
Series including:

               (i) all payments on account of principal of such Underlying
     Securities;

               (ii) all payments on account of interest on such Underlying
     Securities;

               (iii) all payments on account of premium (if any) on such
     Underlying Securities;

               (iv) any payments in respect of any such Credit Support;

               (v) any Advances made as required pursuant to Section 4.3; and

               (vi) any interest or investment income earned on funds
     deposited in the related Accounts.

     Unless otherwise specified in the applicable Series Supplement, it is
understood and agreed that payments in the nature of prepayment or redemption
penalties, late payment charges or assumption fees which may be received by
the Trustee or any Administrative Agent shall be deposited by the Trustee or
the Administrative Agent, as applicable, in the Certificate Account and shall
not be retained by the Trustee or the Administrative Agent for its own
account.

     If, at any time, the Certificate Account for any Series ceases to be an
Eligible Account, the Trustee shall within 10 Business Days (or such longer
period, not to exceed 30 calendar days, as to which the Rating Agency
Condition is met) establish a new Certificate Account meeting the conditions
specified above and transfer any cash and any investments on deposit in the
Certificate Account to such new Certificate Account, and from the date such
new Certificate Account is established, it shall be the Certificate Account
for such Series.

                                      23
<PAGE>

          (b) The Trustee shall give notice to the Administrative Agent, if
any, the Trustor and the Rating Agency of the location of each Eligible
Account constituting the Certificate Account and prior to any change thereof.

          (c) The Administrative Agent, if any, shall instruct the Trustee as
to, or otherwise the Trustee shall determine, the appropriate application of
Available Funds with respect to any Distribution Date for which application is
to be made on any such Distribution Date in accordance with the terms of
Section 4.1 and the related Series Supplement.

     Section 3.10. Investment of Funds in the Accounts. The Trustor (or, if so
specified in the applicable Series Supplement, the Administrative Agent), on
behalf of the Trust, may direct the Trustee to direct any depository
institution maintaining the Certificate Account or the Reserve Account, if
any, for the applicable Series and any other segregated Eligible Account the
contents of which are held for the benefit of Certificateholders of such
Series (each, an "Account") to invest the funds therein in one or more
Permitted Investments bearing interest or sold at a discount, which shall be
held to maturity unless payable on demand and which funds shall not be
reinvested upon the maturity or demand for payment of such Permitted
Investment. If the Trustor (or the Administrative Agent, if applicable) does
not provide any investment directions to the Trustee, funds held in any
Account will be invested in the Permitted Investments specified in clause (ii)
of the definition thereof. Investments of such funds shall be invested in
Permitted Investments that will mature so that such funds will be available
for distribution on the Distribution Date on which such amounts are to be
applied as distributions to Certificateholders. In the event amounts on
deposit in an Account are at any time invested in a Permitted Investment
payable on demand, the Trustee shall:

          (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 same day payment of all amounts due thereunder upon a
     determination by the Trustee that such Permitted Investment would not
     constitute a Permitted Investment in respect of funds thereafter on
     deposit in any Account.

     It is the intent of the Trustee, any Administrative Agent, and the
Trustor that each Account shall be a securities account of the Trustee and not
an account of the Trustor or the Administrative Agent. Each Permitted
Investment that constitutes investment property shall be held by the Trustee
through a securities intermediary, which securities intermediary shall agree
with the Trustee that (A) such investment property at all times shall be
credited to a securities account of the Trustee, (B) all property credited to
such securities account shall be treated as a financial asset, (C) such
securities intermediary shall treat the Trustee as entitled to exercise the
rights that comprise each financial asset credited to such securities account,
(D) such securities intermediary shall comply with entitlement orders
originated by the Trustee without the further consent of any other person or
entity, (E) such securities intermediary shall not agree with any person or
entity other than the Trustee to comply with entitlement orders originated by
any person or entity other than the Trustee, (F) such securities account and
all property credited thereto shall not be subject to any lien, security
interest, right of set-off, or encumbrance in favor

                                      24
<PAGE>

of such securities intermediary or anyone claiming through such securities
intermediary (other than the Trustee), and (G) such agreement between such
securities intermediary and the Trustee shall be governed by the laws of the
State of New York. Each Permitted Investment that does not constitute
investment property shall be held by the Trustee in the State of New York.
Each term used in the preceding two sentences and defined in the New York
Uniform Commercial Code shall have the meaning set forth in the New York
Uniform Commercial Code.

     Section 3.11. Maintenance of Credit Support. On the applicable Closing
Date, the Trustee or, if so specified in the applicable Series Supplement, the
Trustor or the Administrative Agent, shall, to the extent specified in the
applicable Series Supplement, establish and maintain, or enter into, as
applicable, in the name of the Trustee, either as a part of the related Trust
or outside it, for the benefit of the Certificateholders of the related
Series, the Credit Support specified in the applicable Series Supplement. To
the extent specified in the applicable Series Supplement, the Trustor or the
Administrative Agent, as the case may be, will make or cause to be made any
initial deposit to the Certificate Account or any Reserve Account for the
related Series as of the Closing Date. Unless the Series Supplement for a
given Series provides otherwise, if a Reserve Account exists for such Series,
collections with respect to the Underlying Securities for such Series not
distributed to the Certificateholders of such Series shall be deposited in the
Reserve Account. The Reserve Account, if any, will not be a part of or
otherwise includible in the Trust but will be held for the benefit of the
Credit Support Provider.

     Amounts on deposit in the Reserve Account and amounts available pursuant
to any other Credit Support for such Series shall be applied by the Trustee to
make distributions of principal of and premium (if any) and interest on the
Certificates of such Series as required pursuant to Section 4.1 and the
applicable Series Supplement to the extent that funds are not otherwise
available for such purpose. If specified in such Series Supplement,
immediately after each Distribution Date, amounts on deposit in the Reserve
Account for such Series in excess of a specified amount shall be paid to the
Person so specified in such Series Supplement.

     Section 3.12. Realization Upon Defaulted Underlying Securities. (a) If:

               (i) default is made in the payment of any installment of
     interest on any Underlying Security when the same becomes due and
     payable, and such default continues unremedied for the period specified
     in the indenture or other authorizing document for such Underlying
     Security (or, if no such period is specified, three days) after receipt
     by the Underlying Securities Issuer of notice thereof from the Trustee or
     receipt by the Underlying Securities Issuer and the Trustee of notice
     thereof from the Holders of Outstanding Certificates representing at
     least 25% of the Voting Rights; or

               (ii) default is made in the payment of the principal of or any
     installment of the principal of any Underlying Security when the same
     becomes due and payable, and such default continues unremedied for the
     period specified in the indenture or other authorizing document for such
     Underlying Security (or, if no such period is specified, three (3) days)
     after receipt by the Underlying Securities Issuer of notice thereof from
     the Trustee or receipt by the Underlying Securities Issuer and the
     Trustee of notice thereof from the Holders of Outstanding Certificates
     representing at least 25% of the Voting Rights;

                                      25
<PAGE>

and the Underlying Securities Issuer shall, upon demand of the Trustee, fail
to pay forthwith to the Trustee, for the benefit of the Holders, the whole
amount then due and payable on such Underlying Securities for principal and
interest, with interest upon the overdue principal, at the rate borne by the
Underlying Securities and in addition thereto such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee
and its agents and counsel, to the extent permitted by law (such event, an
"Issuer Payment Default"), then the Trustee, in its own name and as trustee of
an express trust, subject to provision being made for indemnification against
costs, expenses and liabilities in a form satisfactory to the Trustee, shall
institute a Proceeding for the collection of the sums so due and unpaid, and
shall prosecute such Proceeding to judgment or final decree or settlement, and
shall enforce the same against the Underlying Securities Issuer or other
obligor upon the Underlying Securities and collect in the manner provided by
law out of the property of the Underlying Securities Issuer or other obligor
upon the Underlying Securities wherever situated, the moneys adjudged or
decreed to be payable, unless otherwise directed by Holders of the Required
Percentage-Direction of the Trustee. In connection therewith, the Trustee
shall use its best reasonable efforts in accordance with such normal and
customary procedures it shall deem necessary or advisable, and shall have the
power and authority, acting alone, to do any and all things in connection
therewith and the administration of the Trust as it may deem necessary or
advisable.

          (b) In the event that the Trustee receives money or other property
in respect of the Underlying Securities (other than a scheduled interest or
principal payment or the payment of any redemption premium on or with respect
to the earlier redemption of the Underlying Securities) as a result of a
payment default on the Underlying Securities or actual notice that such moneys
or other property will be paid to the Trustee, the Trustee shall promptly give
notice (as provided in Section 10.5 hereof) to the Depositary or, if the
Certificates are not then held by the Depositary, directly to the Holders of
the Certificates then outstanding and unpaid. Such notice shall state that,
not later than thirty (30) days after the receipt of such moneys or other
property, the Trustee shall allocate and distribute such moneys or other
property to the Holders of the Outstanding Certificates then unpaid, in
proportion to the Stated Amount or Accreted Amount, as applicable, of each
class of Outstanding Certificates, together with accrued interest to the date
of distribution, if applicable, and within each class pro rata by Stated
Amount. Property received, other than cash, shall be liquidated by the Trustee
in a commercially reasonable manner and the proceeds thereof, after deduction
of all reasonable costs of such liquidation, distributed in cash, only to the
extent necessary to avoid distribution of fractional securities.

          (c) The Trustee (or, if and under the circumstances specified in the
applicable Series Supplement, the Administrative Agent), on behalf of the
Certificateholders, shall assert claims under each applicable Credit Support
Instrument, and shall take such reasonable steps, in addition to those
described in Section 3.12(a), as are necessary to receive payment or to permit
recovery thereunder with respect to any defaulted Underlying Securities,
subject in all cases to the provisions of Article VI hereof in the case of the
Administrative Agent and Article VIII hereof in the case of the Trustee.

          (d) Unless otherwise provided in a Series Supplement, if the
Administrative Agent or the Trustee, as applicable, is unable to obtain full
recovery in respect of a defaulted Underlying Security and any related Credit
Support Instrument pursuant to Section 3.12(c), the

                                      26
<PAGE>

Administrative Agent or the Trustee, as applicable, shall follow or cause to
be followed such normal practices and procedures as it deems necessary or
advisable to realize upon such defaulted Underlying Security and such Credit
Support Instrument, subject in all cases to the provisions of Article VI
hereof in the case of the Administrative Agent and Article VIII hereof in the
case of the Trustee.

     Section 3.13. Retained Interest. The Retained Interest, if any, in any
Underlying Security shall initially be held by the Person so specified in the
related Series Supplement as and to the extent specified in Schedule A
thereof. With respect to each Underlying Security, the Retained Interest shall
be deducted by the Trustee, at the written direction of the Administrative
Agent, if any, or the Trustor from applicable collections in respect of such
Underlying Security. Unless otherwise provided in the applicable Series
Supplement, collections in respect of Retained Interest shall not be deposited
in the Certificate Account for the applicable Series and shall not constitute
a part of the Trust for such Series, but shall instead be distributed to the
holder of such Retained Interest, provided that the Series Supplement for any
Series with respect to which there is a Retained Interest may provide that,
notwithstanding the terms contained herein, commingled amounts received in
respect of assets inclusive of Underlying Securities and Retained Interest may
initially be deposited in a separate and discrete Eligible Account established
by the Trustee at the direction of the Administrative Agent, if any, or the
Trustor and such Series Supplement may provide for additional terms relating
thereto. Unless otherwise provided in the applicable Series Supplement, after
deduction of all applicable fees as provided for in this Agreement, on each
Distribution Date the Trustee shall allocate on a pari passu basis any partial
recovery on an Underlying Security between (a) the Retained Interest, if any,
and (b) distributions to Certificateholders of the applicable Series.

     Section 3.14. Administrative Agent's Compensation and Reimbursement. (a)
As compensation for its activities, the Administrative Agent, if any,
specified in the applicable Series Supplement shall be entitled to the
Administrative Fee, which shall be paid on the dates, in the amounts, under
the circumstances and in the manner specified in the applicable Series
Supplement.

          (b) If, and only to the extent, provided in a Series Supplement, the
Administrative Agent, if any, shall be required to pay from its compensation
hereunder or otherwise all expenses incurred in connection with the Trust for
the related Series and its administration of the Underlying Securities for the
related Series, including payment of the fees and disbursements of the Trustee
(including the reasonable fees and expenses of its counsel and independent
accountants allocable to such Series), payment of expenses incurred in
connection with distributions and reports to Certificateholders of such
Series, payment of premiums on Credit Support Instruments related to such
Series and other expenses specified in such Series Supplement; provided,
however, that neither the Administrative Agent, if any, nor the Trustee will
be responsible for any federal, state, local or foreign income and franchise
taxes, if any, and any interest or penalties with respect thereto, assessed on
the Trust for such Series.

     Section 3.15. Statement as to Compliance. An Administrative Agent
appointed pursuant to the applicable Series Supplement, if any, will deliver
to the Trustee, the Trustor and the Rating Agency not later than 90 days
following the end of each fiscal year of the Administrative Agent an Officer's
Certificate executed by two of its Executive Officers stating, as to each
signatory

                                      27
<PAGE>

thereof, that (i) a review of the activities of the Administrative Agent
during the preceding year and of performance under this Agreement has been
made under such officer's supervision and (ii) to the best of such officer's
knowledge, based on such review, the Administrative Agent has fulfilled all
its obligations under this Agreement throughout such year, or, if there has
been a default in the fulfillment of any such obligation, specifying each such
default known to such officer and the nature and status thereof. Copies of
such statement received by the Trustee shall be provided by the Trustee to any
Certificateholder upon request at the Certificateholder's expense.

     Section 3.16. Independent Public Accountants' Administration Report.
Unless otherwise specified in the Series Supplement, within four months from
the end of each 12-month period beginning with the period specified in the
Series Supplement for a given Series of Certificates, either the
Administrative Agent, if any, specified in the Series Supplement, or otherwise
the Trustee shall cause a firm of nationally recognized independent public
accountants (who may also render other services to the Administrative Agent,
if any, the Trustee or the Trustor) to furnish a report addressed to the
Trustee, the Trustor, the Rating Agency and each Credit Support Provider for
such Series, if any, to the effect that such firm has examined certain
documents and records relating to the administration of the Underlying
Securities and related Credit Support deposited in or held by the applicable
Trust during the preceding 12-month period (or, in the case of the first such
report, during the period from the Closing Date to the date specified in the
applicable Series Supplement), which report should enable the recipients
thereof to determine whether such administration was conducted in accordance
with the terms of this Agreement and the related Series Supplement. Such
report shall identify any exceptions found during the examination.

     Such report will also indicate that the firm is independent of the
Administrative Agent, if any, and the Trustee within the meaning of the Code
of Professional Ethics of the American Institute of Certified Public
Accountants.

     Copies of such statement received by the Trustee shall be provided by the
Trustee to any Certificateholder of such Series upon request without charge to
the requesting Certificateholder.

     The firm of independent public accountants shall be entitled to
compensation in consideration for its duties hereunder in the manner specified
in the applicable Series Supplement.

     Section 3.17. Access to Certain Documentation. The Trustee and the
Administrative Agent, if any, shall provide to any federal, state or local
regulatory authority that may exercise authority over any Certificateholder
access to the documentation regarding the Underlying Securities required by
applicable laws and regulations. Such access shall be afforded without charge,
but only upon reasonable request and during normal business hours at the
offices of the Trustee and Administrative Agent, if any, designated by each of
them. In addition, access to the documentation regarding the Underlying
Securities related to a given Series (or Class within such Series) will be
provided to any Certificateholder of such Series (or Class) upon reasonable
request during normal business hours at the offices of the Trustee and
Administrative Agent designated by each of them at the expense of the
Certificateholder requesting such access.

                                      28
<PAGE>

     Section 3.18. Duties of the Administrative Agent. Notwithstanding any
other provision of this Agreement, with respect to any Series, the applicable
Series Supplement may provide that any Administrative Agent appointed pursuant
to such Series Supplement shall have no rights and no duties, obligations or
liabilities except as provided in such Series Supplement and herein.

     Section 3.19. Trustor to Furnish Names and Addresses of Holders to
Trustee. The Trustor shall furnish or cause to be furnished to the Trustee not
more than five days before each Distribution Date, and at such other times as
the Trustee may request in writing, a list, in such form as the Trustee may
reasonably require, to the extent such information is in the possession or
control of the Trustor or any of its paying agents, of the Holders of
Certificates as of the close of business on the applicable record date of the
Underlying Securities; provided, however, that so long as the Trustee
maintains the Certificate Register, no such list shall be required to be
furnished.

     Section 3.20. Preservation of Information, Communications to Holders.

          (a) The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Certificates
contained in the most recent list furnished to the Trustee as provided in
Section 3.19 and the names and addresses of Holders of Certificates received
by the Trustee in its capacity as Certificate registrar. The Trustee may
destroy any list furnished to it as provided in such Section 3.19 upon receipt
of a new list so furnished.

          (b) Holders shall have the right to communicate pursuant to TIA
Section 312(b) with other Holders with respect to their rights under this
Agreement or under the Certificates.

          (c) The Trustor, the Trustee and the Certificate registrar shall
have the protection of TIA Section 312(c).

     Section 3.21. Reports by Trustee. If required by TIA Section 313(a),
within 60 days after December 31 of each year, the Trustee shall mail to (i)
each Holder as required by TIA Section 313(c) and (ii) the Depositor, a brief
report dated as of such date that complies with TIA Section 313(a). The
Trustee also shall comply with TIA Section 313(b). A copy of any report
delivered pursuant to this Section 3.21 shall, at the time of its mailing to
Holders and the Depositor, be filed by the Trustee with the Commission and
each stock exchange, if any, on which the Certificates are listed. The
Depositor shall notify the Trustee if and when the Certificates are listed on
any stock exchange.

                                  ARTICLE IV

                DISTRIBUTIONS AND REPORTS TO CERTIFICATEHOLDERS

     Section 4.1. Distributions. On each Distribution Date for a given Series
of Certificates, the Trustee shall apply funds in the Certificate Account for
such Series in the manner and priority set forth in the Series Supplement for
such Series. Notwithstanding any other provisions in this Agreement, the right
of the Holder of any Certificate to receive any such distributions in

                                      29
<PAGE>

the manner and priority set forth in the Series Supplement for such Series and
to institute suit for the enforcement of any such payment on or after the date
such payment is payable, shall not be impaired without the consent of such
Holder.

     Section 4.2. Reports to Certificateholders. Unless otherwise specified in
the applicable Series Supplement, on the next Business Day following each such
Distribution Date the Trustee or the Administrative Agent, if any, as
specified in such Series Supplement, shall forward or cause to be forwarded to
the Trustor, each Certificateholder of such Series and such other Persons as
may be specified in such Series Supplement, a statement setting forth:

               (i) the amount of the distribution on such Distribution Date to
     Certificateholders of each Class of such Series allocable to principal of
     and premium, if any, and interest on the Certificates of each such Class;
     and the amount of aggregate unpaid interest accrued as of such
     Distribution Date;

               (ii) in the case of each Class of Floating Rate Certificates of
     such Series, the respective Floating Pass Through Rate applicable to each
     such Class on such Distribution Date, as calculated in accordance with
     the method specified in such Certificates and the related Series
     Supplement;

               (iii) the amount of compensation received by any Administrative
     Agent and such other customary information as the Trustee or
     Administrative Agent, as applicable, deems necessary or desirable, or
     that any such Certificateholder reasonably requests, to enable such
     Certificateholders to prepare their tax returns;

               (iv) if the Series Supplement provides for Advances, the
     aggregate amount of Advances, if any, included in such distribution, and
     the aggregate amount of unreimbursed Advances, if any, at the close of
     business on such Distribution Date;

               (v) the aggregate stated principal amount and, if applicable,
     notional amount of the Underlying Securities related to such Series at
     the close of business on such Distribution Date;

               (vi) the aggregate Stated Amount (or Notional Amount, if
     applicable) of each Class of such Series at the close of business on such
     Distribution Date; and

               (vii) as to any Series (or any Class within such Series) for
     which Credit Support has been obtained, the amount or notional amount of
     coverage of each element of Credit Support (and rating, if any, thereof)
     included therein as of the close of business on such Distribution Date.

In the case of information furnished pursuant to subclauses (i) and (iii)
above, the amounts shall be expressed as a Dollar amount (or the equivalent
thereof in any other Specified Currency) per minimum denomination of
Certificates or for such other specified portion thereof. 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 each such calendar year was a
Certificateholder a statement containing the information set forth in
subclauses (i) and (iii) above, aggregated for such calendar year or the
applicable portion thereof during which such person was a Certificateholder.

                                      30
<PAGE>

Such obligation of the Trustee shall be deemed to have been satisfied to the
extent that substantially comparable information shall be provided by the
Trustee pursuant to any requirements of the Code and the Treasury Regulations
as are from time to time in effect.

     Section 4.3. Advances. (a) Unless otherwise specified in the applicable
Series Supplement, an Administrative Agent appointed pursuant to the Series
Supplement shall have no obligation to make Advances (as defined below) with
respect to the Underlying Securities or in favor of the Holders of any Series
(or Class within such Series) of Certificates. However, as and to the extent
provided in the Series Supplement for a given Series, and subject to the terms
of paragraphs (b) and (c) of this Section 4.3, on or prior to each
Distribution Date, such Administrative Agent shall advance or cause to be
advanced in immediately available funds to the Trustee for deposit in the
Certificate Account for such Series an advance (each, an "Advance") in an
amount equal, unless otherwise specified in the related Series Supplement, to
the aggregate of distributions of principal, premium (if any) and interest due
on the Underlying Securities for such Series (or Class) during the related
Collection Period, to the extent remaining unpaid at the time of such Advance.
In satisfaction of its obligation to make such Advances, the Administrative
Agent shall make such Advances from either (i) its own funds or (ii) funds
with respect to the Underlying Securities for such Series or Class on deposit
in the Certificate Account for such Series, if any, that do not constitute
Available Funds with respect to such Distribution Date; provided, however,
that, to the extent the Administrative Agent shall have made Advances from
funds on deposit in the applicable Certificate Account, the Administrative
Agent shall immediately deposit funds equal to the aggregate amount of such
Advances into such Certificate Account on any subsequent Distribution Date to
the extent that amounts on deposit in such Certificate Account on such
Distribution Date are less than the amount of distributions required to be
made on such Distribution Date pursuant to Section 4.1 and the related Series
Supplement. The Administrative Agent may recover Advances from late
collections received by the Trustee on the applicable Underlying Securities,
proceeds from any applicable Credit Support, if any, and Liquidation Proceeds
with respect to the Underlying Securities for such Series or Class, as
specified in the related Series Supplement, as to which any such unreimbursed
Advance was made.

          (b) Notwithstanding any provision herein to the contrary, no Advance
shall be required to be made hereunder if the Administrative Agent reasonably
believes that it will be unable to recover such Advance from related late
collections, Credit Support proceeds, if any, or Liquidation Proceeds with
respect to the applicable Underlying Securities. It is further understood and
agreed that the Administrative Agent shall not be obligated to make any
Advances in respect of reductions in the amount of collections on the
Underlying Securities due to bankruptcy proceedings with respect to the
Underlying Securities or the obligors thereof.

          (c) Notwithstanding any provision herein to the contrary, unless
otherwise provided in the Series Supplement for a given Series, any Advances
made in respect of any Underlying Securities related to such Series (or Class
within such Series) that are subsequently deemed by the Administrative Agent
to be nonrecoverable from related late collections, Credit Support proceeds,
if any, or Liquidation Proceeds may be reimbursed to the Administrative Agent
through the application of amounts on deposit in the Certificate Account for
such Series allocable to any of such Underlying Securities prior to the
distributions of interest, premium (if any) and principal with respect to the
Certificates of such Series or Class.

                                      31
<PAGE>

     Section 4.4. Compliance with Withholding Requirements. If any withholding
tax is imposed on the payment (or allocations of income) to any
Certificateholder, such tax shall reduce the amount otherwise distributable to
such Holder. The Trustee is hereby authorized and directed to retain from
amounts otherwise distributable to any Holder sufficient funds for the payment
of any tax that is legally owed by the Trust (but such authorization shall not
prevent the Trustee from contesting any such tax in appropriate proceedings
and withholding payment of such tax, if permitted by law, pending the outcome
of such proceedings), or that the Trustee may otherwise determine it is
obligated to withhold under applicable law or regulation. The amount of any
withholding tax imposed with respect to any Holder shall be treated as cash
distributed to such Holder at the time it is withheld by the Trustee and
remitted to the appropriate taxing authority. If there is a possibility that
withholding tax is payable with respect to a distribution, the Trustee may in
its sole discretion withhold such amounts in accordance with this Section 4.4.
If any Holder wishes to apply for a refund of any such withholding tax, the
Trustee shall reasonably cooperate with such Holder in making such claim so
long as such Holder agrees to reimburse the Trustee for any out-of-pocket
expenses incurred. The Trustee shall use reasonable efforts to give notice to
each Holder of any such withholding requirement at least 10 days prior to the
date of the payment from which amounts are required to be withheld.

     Section 4.5. Optional Exchange. (a) The terms and conditions, if any,
upon which Certificates of any Series (or Class within such Series) may be
exchanged for a pro rata portion of the Underlying Securities of the related
Trust will be specified in the related Series Supplement; provided that any
right of exchange shall be exercisable only to the extent that the Trustor
provides upon the Trustee's request an Opinion of Counsel that (i) such
exchange would not be inconsistent with the Trustor's and the Trust's
continued satisfaction of the applicable requirements for exemption under Rule
3a-7 (or other applicable rule or exemption) under the Investment Company Act
of 1940, as amended, and all applicable rules, regulations and interpretations
thereunder and (ii) such exchange would not cause the Trust to be taxable as a
corporation for federal income tax purposes. Such terms may relate to, but are
not limited to, the following:

                    (1) a requirement that the exchanging Holder tender to the
          Trustee Certificates of each Class within such Series;

                    (2) a minimum Stated Amount or Notional Amount, as
          applicable, with respect to Certificates being tendered for exchange
          by a single Holder;

                    (3) a requirement that the Stated Amount or Notional
          Amount, as applicable, of each Certificate tendered for exchange be
          an integral multiple of an amount specified in such Series
          Supplement;

                    (4) specified dates during which a Holder may effect such
          an exchange (each, an "Optional Exchange Date");

                    (5) limitations on the right of an exchanging Holder to
          receive any benefit upon exchange from any Credit Support or
          Underlying Securities which are not debt securities; and

                                      32
<PAGE>

                    (6) adjustments to the value of the proceeds of any
          exchange based upon required prepayment of future expense
          allocations and if provided for in the applicable Series Supplement
          the establishment of a reserve for any anticipated Extraordinary
          Trust Expenses.

          (b) Unless otherwise provided in the applicable Series Supplement,
no Certificate may be exchanged pursuant to the preceding paragraph unless the
Trustee has received at least 30 days but not more than 45 days prior to an
Optional Exchange Date in accordance with delivery instructions specified in
the applicable Series Supplement (i) such Certificate with the form entitled
"Option to Elect Exchange" on the reverse thereof duly completed, or (ii) a
telegram, telex, facsimile transmission or letter from a member of a national
securities exchange or the National Association of Securities Dealers, Inc.,
the Depositary (in accordance with its normal procedures) or a commercial bank
or trust company in the United States setting forth the name of the Holder of
such Certificate, the Stated Amount or Notional Amount of such Certificate to
be exchanged and the Certificate number or a description of the tenor and the
terms of such Certificate, a statement that the option to elect exchange is
being exercised thereby and an assurance that the Certificate to be exchanged
with the form entitled "Option to Elect Exchange" on the reverse of the
Certificate duly completed will be received by such Trustee not later than
five Business Days after the date of such telegram, telex, facsimile
transmission or letter, and such Certificate and form duly completed must be
received by such Trustee by such fifth Business Day. Any tender of a
Certificate by the Holder thereof for exchange shall be irrevocable. Unless
otherwise provided in the applicable Series Supplement, the exchange option
may be exercised pursuant to this Section by the Holder of a Certificate for
less than the Stated Amount or Notional Amount of such Certificate as long as
the Stated Amount or Notional Amount remaining Outstanding after such exchange
is an authorized denomination and all other exchange requirements set forth in
the related Series Supplement are satisfied. Upon such partial exchange, such
Certificate shall be cancelled and a new Certificate or Certificates for the
remaining Stated Amount or Notional Amount thereof shall be issued (which, in
the case of any Certificate, shall be in the name of the Holder of such
exchanged Certificate).

          (c) Upon the completion of any such Optional Exchange, the Trustee
shall give prompt written notice thereof to the Rating Agency.

                                  ARTICLE V

                               THE CERTIFICATES

     Section 5.1. The Certificates. The Certificates of any Series (or Class
within such Series) will be issued in fully registered form as Certificates
and shall be substantially in the form of the exhibits with respect thereto
attached to the applicable Series Supplement. The aggregate Stated Amount or
Notional Amount of Certificates which may be authenticated and delivered under
this Agreement is unlimited.

     The Certificates may be issued in one or more Series, each of which
Series may be issued in one or more Classes, with such further particular
designations added or incorporated in such title for the Certificates of any
particular Series or Class within such Series as the Board of

                                      33
<PAGE>

Directors may determine. Each Certificate shall bear upon its face the
designation so selected for the Series and Class to which it belongs. All
Certificates of the same Series and Class shall be identical in all respects
except for the denominations thereof. All Certificates of all Classes within
any one Series at any time Outstanding shall be identical except for
differences among the Certificates of the different Classes within such Series
specified in the applicable Series Supplement. Except as otherwise provided in
a Series Supplement, all Certificates of a particular Series (and all Classes
within such Series) issued under this Agreement shall be in all respects
equally and ratably entitled to the benefits hereof without preference,
priority or distinction on account of the actual time or times of
authentication and delivery, all in accordance with the terms and provisions
of this Agreement.

     Each Series (and all Classes within such Series) of Certificates shall be
created by a Series Supplement authorized by the Board of Directors and
establishing the terms and provisions of such Series. The several Series may
differ as between Series and any Class may vary as between the other Classes
within any given Series in respect of any of the following matters:

                    (1) designation of such Series and Class;

                    (2) the dates on which or periods during which the
          Certificates of such Series and Class may be issued;

                    (3) the number of Classes, the maximum Stated Amount or
          Notional Amount of Certificates of each Class that may be issued and
          any priorities or subordination among Classes of a Series with
          respect to distributions from the Trust;

                    (4) for each Class of Certificates, the Pass Through Rate
          and, in the case of each Class of Floating Rate Certificates, the
          method for calculating such Pass Through Rate;

                    (5) the terms of the Letter of Credit, if any, or of the
          Surety Bond, if any, or of any other Credit Support for the benefit
          of the Certificateholders of such Series or Class or group of
          Classes;

                    (6) the places, if any, in addition to or instead of the
          Corporate Trust Office of the Trustee (in the case of Certificates),
          where the principal of (and premium, if any) and interest on
          Certificates of such Series and Class shall be distributable;

                    (7) the authorized denominations (if other than $100,000
          and integral multiples of $1,000 in excess thereof) with respect to
          such Series or Class;

                    (8) the Collection Periods, the Distribution Dates and the
          Scheduled Final Distribution Dates for such Series and Class;

                                      34
<PAGE>

                    (9) the types of Underlying Securities that will be
          included in the Trust for such Series and the manner and priorities
          of allocating distributions with respect to collections of principal
          (and premium, if any) and interest payments allocable to such
          Underlying Securities among Holders of Certificates of different
          Classes (including whether the Certificates of any such Class are to
          be entitled to receive principal distributions with
          disproportionate, nominal or no interest distributions, or interest
          distributions with disproportionate, nominal or no principal
          distributions, and, in each case, the applicable terms thereof);

                    (10) the amount, if any, to be deposited on the Closing
          Date in the Certificate Account for such Series;

                    (11) the manner in which the Reserve Account, if any, is
          to be funded, the amount, if any, to be deposited therein on the
          Closing Date and the Requisite Reserve Amount, if any, for such
          Series or Class;

                    (12) the terms of any Guaranteed Investment Contract sold
          as part of the related Trust;

                    (13) the provisions, if any, for the optional exchange of
          the Certificates of such Series by the Certificateholders of such
          Series and the periods within which or the dates on which, and the
          terms and conditions on which, such Certificates may be exchanged in
          whole or in part for a pro rata portion of the Underlying Securities
          related to such Series;

                    (14) whether the Certificates of such Series or Class are
          to be issued as Discount Certificates and the amount of discount
          with which such Certificates may be issued;

                    (15) whether the Certificates of such Series or Class are
          to be issued in whole or in part in the form of one or more Global
          Securities and, in such case, the Depositary for such Global
          Security or Securities and the terms and conditions, if any, upon
          which interests in such Global Security or Securities may be
          exchanged in whole or in part for the individual Certificates
          represented thereby;

                    (16) if other than Dollars, the Currency in which
          Certificates of such Series or Class shall be denominated or in
          which distributions of the principal of (and premium, if any) and
          interest on such Certificates may be made and any other terms
          concerning such payment;

                    (17) if the principal of (and premium, if any) or interest
          on Certificates of such Series or Class are to be distributable, at
          the election of the Trustor or a Holder thereof, in a Currency other
          than that in which such Certificates are denominated or
          distributable without such election, the periods within which and
          the terms and conditions upon which such election may be made and
          the time and the manner of determining the exchange rate between the
          Currency in which such Certificates are denominated or distributable
          without such

                                      35
<PAGE>

          election and the Currency in which such Certificates are to be
          distributed if such election is made;

                    (18) any additional Administrative Agent Termination
          Events or representations, warranties or covenants provided for with
          respect to Certificates of such Series;

                    (19) provisions with respect to the terms for which the
          definitions set forth in Article I permit or require further
          specification in the related Series Supplement, including:

                    (a)      "Accounting Date";
                    (b)      "Accreted Amount";
                    (c)      "Administrative Agent";
                    (d)      "Administrative Fee";
                    (e)      "Available Funds";
                    (f)      "Basic Documents";
                    (g)      "Calculation Agent";
                    (h)      "Call Premium Percentage";
                    (i)      "Closing Date";
                    (j)      "Collection Period";
                    (k)      "Corporate Trust Office";
                    (l)      "Credit Support";
                    (m)      "Credit Support Instrument";
                    (n)      "Credit Support Provider";
                    (o)      "Cut-off Date";
                    (p)      "Depositary";
                    (q)      "Depository Agreement";
                    (r)      "Discount Certificates";
                    (s)      "Distribution Date";
                    (t)      "Event of Default";
                    (u)      "Extraordinary Trust Expense";
                    (v)      "Final Scheduled Distribution Date";
                    (w)      "Fixed Pass Through Rate";
                    (x)      "Floating Pass Through Rate";
                    (y)      "Floating Rate Certificate";
                    (z)      "Global Securities";
                    (aa)     "Guaranteed Investment Contract";
                    (bb)     "Letter of Credit";
                    (cc)     "Limited Guarantor";
                    (dd)     "Limited Guaranty";
                    (ee)     "Notional Amount";
                    (ff)     "Optional Exchange Date";
                    (gg)     "Pass Through Rate";
                    (hh)     "Permitted Investments";
                    (ii)     "Place of Distribution";
                    (jj)     "Purchase Price";

                                      36
<PAGE>

                    (kk)     "Qualified Substitute Underlying Security";
                    (ll)     "Rating Agency";
                    (mm)     "Rating Agency Condition";
                    (nn)     "Record Date";
                    (oo)     "Required Interest";
                    (pp)     "Required Premium";
                    (qq)     "Required Principal";
                    (rr)     "Required Percentage";
                    (ss)     "Required Rating";
                    (tt)     "Requisite Reserve Amount";
                    (uu)     "Retained Interest";
                    (vv)     "Scheduled Final Distribution Date";
                    (ww)     "Specified Currency";
                    (xx)     "Surety Bond";
                    (yy)     "Underlying Security Provider";
                    (zz)     "Underlying Security Purchase Agreement";
                    (aaa)    "Underlying Securities";
                    (bbb)    "Underlying Securities Issuer";
                    (ccc)    "Underlying Securities Schedule";
                    (ddd)    "Trust";
                    (eee)    "Trustee";
                    (fff)    "Trust Termination Event";
                    (ggg)    "Voting Rights";

                    (20) rights and remedies provided to any Credit Support
          Provider with respect to all or a portion of the Trust for such
          Series or Class;

                    (21) any restrictions on the sale and transfer of the
          Certificates, including restrictions arising out of the Employee
          Retirement Income Security Act of 1974, as amended, or the Code and
          Treasury Regulations; and

                    (22) any other provisions expressing or referring to the
          terms and conditions upon which the Certificates of such Series or
          Class are to be issued under this Agreement that do not prevent such
          Certificates from receiving the Required Rating.

     In the absence of any specification pursuant to this Section 5.1 with
respect to Certificates of any Series, the Certificates of such Series shall
be issuable only as Certificates in denominations of $25 and in integral
multiples thereof and shall be payable only in Dollars.

     A different Trustee and an Administrative Agent may be appointed by the
Trustor for each Series of Certificates prior to the issuance of such Series
provided that the Rating Agency Condition is met. If the initial Trustee is to
be other than The Bank of New York, or there is to be an Administrative Agent,
then such Series Supplement shall provide for the appointment of such Trustee
or such Administrative Agent or both, as applicable, of such Series and shall
add or change any of the provisions of this Agreement as shall be necessary to
provide for or facilitate the administration of the trusts hereunder and of
the Underlying Securities; it being understood

                                      37
<PAGE>

that nothing contained herein or in such Series Supplement shall constitute
the Trustees for different Series as co-trustees for the same Series or the
administrative agents for different Series as co-administrative agents for the
same Series, and that each Trustee shall be a trustee of a trust or trusts
separate and apart from any trust or trusts hereunder of any other Trustee,
and that each Administrative Agent shall be an administrative agent of a Trust
separate and apart from any other Trust. Upon final appointment of any new
Trustee or Administrative Agent, the Trustee shall provide a notice of such
appointment to the Rating Agency not later than 15 days following such
appointment.

     Section 5.2. Execution, Authentication and Delivery. (a) The Certificates
shall be executed by the Trustor by its President, its Treasurer, one of its
Vice Presidents, or one of its Finance Officers. The signature of any of these
officers may be manual or facsimile. Certificates bearing the manual or
facsimile signature of individuals who were at any time the proper officers of
the Trustor shall be binding, notwithstanding that such individuals or any of
them have ceased to hold such offices prior to the authentication and delivery
of such Certificates or did not hold such offices at the date of such
Certificates.

          (b) Each Certificate shall be dated as of the later of the date
specified in the related Series Supplement and the date of its authentication.

          (c) No Certificate shall be entitled to any benefit under this
Agreement or be valid or obligatory for any purpose, unless there appears on
such Certificate a certificate of authentication substantially in one of the
forms provided for herein executed by the Trustee by the manual signature of
one of its authorized signatories, and such certificate upon any Certificate
shall be conclusive evidence, and the only evidence, that such Certificate has
been duly authenticated and delivered hereunder and is entitled to the
benefits of this Agreement.

     Section 5.3. Temporary Certificates. Pending the preparation of
Definitive Certificates of any Series (or Class within such Series), the
Trustor may execute, and upon receipt of a Trustor Order, the Trustee shall
authenticate and deliver temporary Certificates which 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, in registered form and with
such appropriate insertions, omissions, substitutions and other variations as
may be authorized by such Trustor Order. Any such temporary Certificate may be
in global form, representing all or a portion of the Outstanding Certificates
of such Series or Class. Every such temporary Certificate shall be executed by
the Trustor and shall be authenticated and delivered by the Trustee upon the
same conditions and in substantially the same manner, and with the same
effect, as the Definitive Certificate or Definitive Certificates in lieu of
which it is issued.

     If temporary Certificates of any Series (or Class within such Series) are
issued, the Trustor will cause Definitive Certificates of such Series or Class
to be prepared without unreasonable delay and (a) after the preparation of
Definitive Certificates of such Series or Class, the temporary Certificates of
such Series or Class shall be exchangeable for Definitive Certificates of such
Series or Class upon surrender of the temporary Certificates of such Series or
Class at the office of the Trustee in a Place of Distribution for such Series
or Class, without charge to the Holder, except as provided in Section 5.4 in
connection with a transfer and (b)

                                      38
<PAGE>

upon surrender for cancellation of any one or more temporary Certificates of
any Series or Class within such Series the Trustor shall execute and the
Trustee shall authenticate and deliver in exchange therefor Definitive
Certificates with a like Stated Amount or Notional Amount, as applicable, of
the same Series (or Class within such Series) of authorized denominations and
of like tenor. Until so exchanged, temporary Certificates of any Series (or
Class within such Series) shall in all respects be entitled to the same
benefits under this Agreement as Definitive Certificates of such Series or
Class, except as otherwise specified in the applicable Series Supplement with
respect to the payment of interest on Global Securities in temporary form.

     Upon any exchange of a portion of a temporary Global Security for a
definitive Global Security or for the individual Definitive Certificates
represented thereby pursuant to this Section 5.3 or Section 5.4, the temporary
Global Security shall be endorsed by the Trustee to reflect the reduction of
the aggregate Stated Amount or Notional Amount, as applicable, evidenced
thereby, whereupon the aggregate Stated Amount or Notional Amount, as
applicable, of such temporary Global Security shall be reduced for all
purposes by the amount so exchanged and endorsed.

     Section 5.4. Registration; Registration of Transfer and Exchange. The
Trustee shall cause to be kept a register for each Series of Certificates (the
registers maintained in such office and in any other office or agency of the
Trustee in a Place of Distribution being herein sometimes collectively
referred to as the "Certificate Register") in which a transfer agent and
registrar (which may be the Trustee) (the "Certificate Registrar") shall
provide for the registration of Certificates and the registration of transfers
and exchanges of Certificates. The Trustee is hereby initially appointed
Certificate Registrar for the purpose of registering Certificates and
transfers and exchanges of Certificates as herein provided; provided, however,
that the Trustee may appoint one or more co-Certificate Registrars. Upon any
resignation of any Certificate Registrar, the Trustor shall promptly appoint a
successor or, in the absence of such appointment, assume the duties of
Certificate Registrar.

     If a Person other than the Trustee is appointed by the Trustor as
Certificate Registrar, the Trustor will give the Trustee prompt written notice
of the appointment of a Certificate Registrar and of the location, and any
change in the location, of the Certificate Register, and the Trustee shall
have the right to rely upon a certificate executed on behalf of the
Certificate Registrar by an Executive Officer thereof as to the names and
addresses of the Holders of the Certificates and the principal amounts and
numbers of such Certificates.

     Upon surrender for registration of transfer of any Certificate of any
Series (or Class within such Series) at the office or agency of the Trustee,
if the requirements of Section 8-401(1) of the Uniform Commercial Code are met
to the Trustor's satisfaction, the Trustor shall execute, and the Trustee
shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Certificates of any authorized denominations, of
a like Series, Class and aggregate Stated Amount or Notional Amount, as
applicable.

     Notwithstanding any other provision of this Section, unless and until it
is exchanged in whole or in part for the individual Certificates represented
thereby, a Global Security representing all or a portion of the Certificates
of a Series (or Class within such Series) may not be transferred except as a
whole by the Depositary for such Series or Class to a nominee of such
Depositary or by a nominee of such Depositary to such Depositary or another
nominee of such

                                      39
<PAGE>

Depositary or by such Depositary or any such nominee to a successor Depositary
for such Series or Class or a nominee of such successor Depositary.

     At the option of the Holder, Certificates of any Series (or Class within
such Series) (other than a Global Security, except as set forth below) may be
exchanged for other Certificates of the same Series or Class of any authorized
denomination or denominations of like tenor and aggregate Stated Amount or
Notional Amount, as applicable, upon surrender of the Certificates to be
exchanged at the office or agency of the Trustee maintained for such purpose.

     Whenever any Certificates are so surrendered for exchange, the Trustor
shall execute and the Trustee shall authenticate and deliver the Certificates
that the Holder making the exchange is entitled to receive.

     If at any time the Depositary for the Certificates of a Series (or Class
within such Series) notifies the Trustor that it is unwilling or unable to
continue as Depositary for the Certificates of such Series or Class or if at
any time the Depositary for the Certificates of such Series or Class shall no
longer be eligible under Section 5.9(b), the Trustor shall appoint a successor
Depositary with respect to the Certificates of such Series or Class. If a
successor Depositary for the Certificates of such Series or Class is not
appointed by the Trustor within 90 days after the Trustor receives such notice
or becomes aware of such ineligibility, the Trustor's election pursuant to
Section 5.1 shall no longer be effective with respect to the Certificates of
such Series or Class and the Trustor will execute, and the Trustee, upon
receipt of a Trustor Order for the authentication and delivery of individual
Certificates of such Series or Class, will authenticate and deliver individual
Certificates of such Series or Class in an aggregate Stated Amount or Notional
Amount, as applicable, equal to the aggregate Stated Amount or Notional
Amount, as applicable, of the Global Security or Securities representing
Certificates of such Series or Class in exchange for such Global Security or
Securities.

     The Trustor may at any time and in its sole discretion determine that
individual Certificates of any Series (or Class within such Series) issued in
the form of one or more Global Securities shall no longer be represented by
such Global Security or Securities. In such event the Trustor shall execute,
and the Trustee, upon receipt of a Trustor Order for the authentication and
delivery of individual Certificates of such Series or Class, shall
authenticate and deliver, individual Certificates of such Series or Class in
an aggregate Stated Amount or Notional Amount, as applicable, equal to the
aggregate Stated Amount or Notional Amount, as applicable, of the Global
Security or Securities representing Certificates of such Series or Class in
exchange for such Global Security or Securities.

     If specified by the Trustor pursuant to Section 5.1 with respect to a
Series (or Class within such Series) of Certificates, the Depositary for such
Series may surrender a Global Security for such Series or Class in exchange in
whole or in part for individual Certificates of such Series or Class on such
terms as are acceptable to the Trustor and such Depositary.

     Thereupon, the Trustor shall execute, and the Trustee, upon receipt of a
Trustor Order, shall authenticate and deliver, without service charge,

                                      40
<PAGE>

               (i) to each Person specified by such Depositary a new
     individual Certificate or Certificates of the same Series or Class, of
     any authorized denomination as requested by such Person in an aggregate
     Stated Amount or Notional Amount, as applicable, equal to and in exchange
     for such Person's beneficial interest in the Global Security; and

               (ii) to such Depositary a new Global Security in a denomination
     equal to the difference, if any, between the aggregate Stated Amount or
     Notional Amount, as applicable, of the surrendered Global Security and
     the aggregate Stated Amount or Notional Amount, as applicable, of
     individual Certificates delivered to Holders thereof.

     In any exchange provided for in any of the preceding three paragraphs,
the Trustor shall execute, and the Trustee, upon receipt of a Trustor Order,
will authenticate and deliver individual Certificates in registered form in
authorized denominations.

     Upon the exchange of a Global Security for individual Certificates, such
Global Security shall be cancelled by the Trustee. Individual Certificates
issued in exchange for a Global Security pursuant to this Section 5.4 shall be
registered in such names and in such authorized denominations as the
Depositary for such Global Security, pursuant to instructions from its
Participants, any indirect participants or otherwise, shall instruct the
Trustee. The Trustee shall deliver such Certificates to the Persons in whose
names such Certificates are so registered.

     All Certificates issued upon any registration of transfer or exchange of
Certificates shall constitute complete and indefeasible evidence of ownership
in the Trust related to such Certificates and be entitled to the same benefits
under this Agreement as the Certificates surrendered upon such registration of
transfer or exchange.

     Every Certificate presented or surrendered for registration of transfer
or exchange shall (if so required by the Trustor, the Trustee or the
Certificate Registrar) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Trustor, the Trustee and
the Certificate Registrar, duly executed, by the Holder thereof or his
attorney duly authorized in writing, with such signature guaranteed by a
brokerage firm or financial institution that is a member of a Securities
Approved Medallion Program such as Securities Transfer Agents Medallion
Program (STAMP), Stock Exchange Medallion Program (SEMP) or New York Stock
Exchange Inc. Medallion Signature Program (MSP).

     No service charge shall be made to a Holder for any registration of
transfer or exchange of Certificates, but the Trustor may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Certificates, other than exchanges pursuant to Section 5.3 not involving any
transfer.

     Section 5.5. Mutilated, Destroyed, Lost and Stolen Certificates. If (i)
any mutilated Certificate is surrendered to the Trustee at its Corporate Trust
Office (in the case of Certificates) or (ii) the Trustor and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of
any Certificate, and there is delivered to the Trustor and the Trustee such
security or indemnity as they may require to hold each of them and any Paying
Agent harmless, and neither the Trustor nor the Trustee receives notice that
such Certificate has been acquired by a bona fide

                                      41
<PAGE>

purchaser, then the Trustor shall execute and the Trustee, upon receipt of a
Trustor Order, shall authenticate and deliver, in exchange for or in lieu of
any such mutilated, destroyed, lost or stolen Certificate a new Certificate of
the same Series and Class of like tenor, form, terms and principal amount,
bearing a number not contemporaneously Outstanding.

     Upon the issuance of any new Certificate under this Section, the Trustor
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in respect thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

     Every new Certificate of any Series or Class issued pursuant to this
Section shall constitute complete and indefeasible evidence of ownership in
the Trust related to such Series, whether or not the destroyed, lost or stolen
Certificate shall be at any time enforceable by anyone, and shall be entitled
to all the benefits of this Agreement equally and proportionately with any and
all other Certificates of that Series or Class duly issued hereunder.

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

     Section 5.6. Distribution of Interest; Interest Rights Preserved. (a)
Interest on any Certificate that is payable and is punctually paid or duly
provided for on any Distribution Date shall be distributed to the Person in
whose name such Certificate (or one or more Predecessor Certificates) is
registered at the close of business on the related Record Date notwithstanding
the cancellation of such Certificate upon any transfer or exchange subsequent
to such related Record Date. The distribution of interest on Certificates
shall be made at the Corporate Trust Office (except as otherwise specified
pursuant to Section 5.1) or, at the option of the Trustee, by check mailed to
the address of the Person entitled thereto as such address shall appear in the
Certificate Register or, if provided pursuant to Section 5.1 and in accordance
with arrangements satisfactory to the Trustee, at the option of the Holder by
wire transfer to an account designated by the Holder.

          (b) Subject to the foregoing provisions of this Section 5.6, each
Certificate delivered under this Agreement upon transfer of or in exchange for
or in lieu of any other Certificate shall carry the rights to interest accrued
and undistributed, and to accrue, that were carried by such other Certificate.

          (c) All computations of interest due with respect to any Certificate
of any Series or Class within such Series shall be made as specified in the
Series Supplement applicable to that particular Series or Class of
Certificates.

          (d) With respect to any computations or calculations to be made
under this Agreement, the applicable Series Supplement and the Certificates,
except as otherwise provided, (i) all percentages resulting from any
calculation of accrued interest will be rounded, if necessary, to the nearest
1/100,000 of 1% (.0000001), with five one-millionths of a percentage point
rounded upward, and (ii) all currency amounts will be rounded to the nearest
one-hundredth of a unit (with .005 of a unit being rounded upward).

                                      42
<PAGE>

          (e) Notwithstanding any other provisions in this Agreement, the
right of the Holder of any Certificate to receive any of the payments
described above in this Section 5.6, and to institute suit for the enforcement
of any such payment on or after the date such payment is payable, shall not be
impaired without the consent of such Holder.

     Section 5.7. Persons Deemed Owners. The Trustor, the Trustee and the
Administrative Agent, if any, and any agent of the Trustor, the Trustee or the
Administrative Agent, if any, may treat the Person in whose name any
Certificate is registered as the owner of such Certificate for the purpose of
receiving distributions of principal of (and premium, if any) and (subject to
Section 5.6) interest, if any, on such Certificate and for all other purposes
whatsoever, whether or not such Certificate be overdue, and neither the
Trustor, the Trustee, the Administrative Agent, if any, nor any agent of the
Trustor, the Trustee nor the Administrative Agent, if any, shall be affected
by notice to the contrary. All distributions made to any Holder, or upon his
order, shall be valid, and, to the extent of the sum or sums paid, effectual
to satisfy and discharge the liability for moneys distributable upon such
Certificate.

     None of the Trustor, the Trustee, the Administrative Agent, if any, or
any of their agents will have any responsibility or liability for any aspect
of the records relating to or distributions made on account of beneficial
ownership interests in a Global Security or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.

     In connection with any notice or other communication to be provided to
Holders pursuant to this Agreement by the Trustee with respect to any consent
or other action to be taken by Holders, the Trustee shall establish a record
date for such consent or other action and in the case of Global Certificates,
give the Depositary notice of such record date not less than 15 calendar days
in advance of such record date to the extent possible. Such record date shall
be the later of thirty (30) days prior to the first solicitation of such
consent or other action or the date of the most recent list of Holders
furnished to the Trustee pursuant to Section 3.19 hereof.

     Section 5.8. Cancellation. Unless otherwise specified pursuant to Section
5.1 for Certificates of any Series, all Certificates surrendered for payment,
redemption, transfer or exchange shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee and shall be promptly cancelled
by it. No Certificates shall be authenticated in lieu of or in exchange for
any Certificates cancelled as provided in this Section, except as expressly
permitted by this Agreement.

     Section 5.9. Global Securities. (a) If the Series Supplement pursuant to
Section 5.1 provides that a Series (or Class within such Series) of
Certificates shall be represented by one or more Global Securities, then the
Trustor shall execute and the Trustee shall authenticate and deliver one or
more Global Securities that (i) shall represent an aggregate initial Stated
Amount or Notional Amount, as applicable, equal to the aggregate initial
Stated Amount or Notional Amount, as applicable, of the Certificates of such
Series or Class to be represented by such one or more Global Securities, (ii)
shall be registered, in the name of the Depositary for such Global Security or
Securities or the nominee of such Depositary, (iii) shall be delivered by the
Trustee to such Depositary or pursuant to such Depositary's instruction and
(iv) shall bear a legend substantially to the following effect: "Unless and
until it is exchanged in whole or in part for the individual Certificates
represented hereby, this Global Security may not be transferred except as

                                      43
<PAGE>

a whole by the Depositary to a nominee of the Depositary or by a nominee of
the Depositary or by the Depositary or any such nominee to a successor
Depositary or a nominee of such successor Depositary."

     No Holder of a Certificate of such Series or Class will receive a
Definitive Certificate representing such Holder's interest in such Certificate
or Certificates, except as provided in Section 5.11. Unless and until
definitive, fully registered Certificates (the "Definitive Certificates") have
been issued to Holders of such Series or Class pursuant to Section 5.11:

               (i) the provisions of this Section 5.9 shall be in full force
     and effect;

               (ii) the Certificate Registrar and the Trustee shall be
     entitled to deal with the Depositary for all purposes of this Agreement
     (including the distribution of principal of, and premium, if any, and
     interest on the Certificates and the giving of instructions or directions
     hereunder) as the sole Holder of the Certificates of such Series or
     Class, and shall have no obligation to the owners of beneficial interests
     in such Series or Class (collectively, the "Certificate Owners");

               (iii) to the extent that the provisions of this Section 5.9
     conflict with any other provisions of this Agreement, the provisions of
     this Section 5.9 shall control;

               (iv) the rights of Certificate Owners of such Series or Class
     shall be exercised only through the Depositary and shall be limited to
     those established by law and agreements between such Certificate Owners
     and the Depositary or its Participants; and

               (v) whenever this Agreement requires or permits actions to be
     taken based upon instructions or directions of Holders of Certificates of
     such Series or Class evidencing a specified percentage of the aggregate
     Voting Rights of such Series or Class, the Depositary shall be deemed to
     represent such percentage only to the extent that it has received
     instructions to such effect from Certificate Owners of such Series or
     Class or Participants in such Depositary's system owning or representing,
     respectively, such required percentage of the beneficial interest in the
     Certificates of such Series or Class and has delivered such instructions
     to the Trustee.

          (b) Each Depositary designated pursuant to Section 5.1 for a Global
Security in registered form must, at the time of its designation and at all
times while it serves as such Depositary, be a clearing agency registered
under the Exchange Act and any other applicable statute or regulation.

     Section 5.10. Notices to Depositary. Whenever a notice or other
communication to the Holders of a Series or Class within such Series
represented by one or more Global Securities is required under this Agreement,
unless and until Definitive Certificates for such Series or Class shall have
been issued to such Certificate Owners pursuant to Section 5.11, the Trustee
shall give all such notices and communications specified herein to be given to
Holders of the Certificates of such Series to the Depositary, and shall have
no obligation to the Certificate Owners.

                                      44
<PAGE>

     Section 5.11. Definitive Certificates. If in respect of a Series (or
Class within such Series) represented by one or more Global Securities (i) the
Trustor advises the Trustee in writing that the Depositary is no longer
willing or able to properly discharge its responsibilities with respect to the
Certificates of such Series or Class and the Trustor is unable to locate a
qualified successor, (ii) the Trustor at its option advises the Trustee in
writing that it elects to terminate the book-entry system for such Series or
Class through the Depositary or (iii) after the occurrence of an
Administrative Agent Termination Event, Certificate Owners representing
beneficial interests aggregating at least a majority (or such other Required
Percentage-Definitive Certificates that may be specified in a Series
Supplement) of the Voting Rights of the Certificates of such Series or Class
advise the Depositary in writing that the continuation of a book-entry system
for such Series or Class through the Depositary is no longer in the best
interests of the Certificate Owners of such Series or Class, then the
Depositary shall notify all Certificate Owners or Participants in the
Depositary's system with respect to such Series or Class and the Trustee of
the occurrence of any such event and of the availability of Definitive
Certificates for such Series or Class to Certificate Owners of such Series or
Class requesting the same. Upon surrender to the Trustee of the Global
Securities of such Series or Class by the Depositary, accompanied by
registration instructions, the Trustor shall execute and the Trustee shall
authenticate the Definitive Certificates of such Series or Class in accordance
with the instructions of the Depositary. None of the Trustor, the Certificate
Registrar or 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 of such
Series or Class, the Trustee shall recognize the holders of the Definitive
Certificates of such Series or Class as Holders.

     Section 5.12. Currency of Distributions in Respect of Certificates.

          (a) Except as otherwise specified pursuant to Section 5.1 for
Certificates of any Series (or Class within such Series), distributions of the
principal of (and premium, if any) and interest on Certificates of such Series
or Class will be made in Dollars.

          (b) For purposes of any provision of the Agreement where the Holders
of Outstanding Certificates may perform an act that requires that a specified
percentage of the aggregate Voting Rights of the Certificates of all Series
perform such act and for purposes of any decision or determination by the
Trustee of amounts due and not distributed for the principal of (and premium,
if any) and interest on the Certificates of all Series in respect of which
moneys are to be disbursed ratably, the principal of (and premium, if any) or
notional amount of, as applicable, and interest on the Outstanding
Certificates denominated in a Foreign Currency will be the amount in Dollars
based upon exchange rates, determined as specified pursuant to Section 5.1 for
Certificates of such Series, as of the date for determining whether the
Holders entitled to perform such act have performed it or as of the date of
such decision or determination by the Trustee, as the case may be.

          (c) With respect to Certificates of any Series (or Class within such
Series), any decision or determination to be made regarding exchange rates
shall be made by an Exchange Rate Agent appointed by the Trustor; provided
that such Exchange Rate Agent shall accept such appointment in writing and the
terms of such appointment shall be acceptable to the Trustee and shall, in the
opinion of the Trustor at the time of such appointment, require such

                                      45
<PAGE>

Exchange Rate Agent to make such determination by a method consistent with the
method provided in the applicable Series Supplement for the making of such
decision or determination. All decisions and determinations of such Exchange
Rate Agent regarding exchange rates shall be in its sole discretion and shall,
in the absence of manifest error, be conclusive for all purposes and
irrevocably binding upon the Trustor, the Trustee and all Holders of the
Certificates of such Series or Class.

          (d) If distributions in respect of a Certificate are required to be
made in a Specified Currency other than Dollars and such currency is
unavailable due to the imposition of exchange controls or other circumstance
beyond the control of the Trustee, the Administrative Agent, if any, and the
Trustor or is no longer used by the government of the country issuing such
Specified Currency or is no longer commonly used for the settlement of
transactions by public institutions of or within the international banking
community, then all distributions in respect of such Certificate shall be made
in Dollars until such Specified Currency is again so used in the manner
specified in the related Series Supplement.

     Section 5.13. Conditions of Authentication and Delivery of New Series.
Certificates of a new Series may be issued at any time and from time to time
after the execution and delivery of this Agreement. The Trustor shall execute
and deliver Certificates of such Series to the Trustee and the Trustee shall
authenticate and deliver such Certificates upon a Trustor Order and upon
delivery by the Trustor to the Trustee of the following:

     (1)  Board Resolution. A Board Resolution (or action by a Person
          authorized by Board Resolution) authorizing the execution,
          authentication and delivery of the Certificates and specifying the
          Series, the Classes within such Series and their respective Final
          Scheduled Distribution Dates, priorities as to distributions of
          principal, premium (if any) and interest, aggregate initial Stated
          Amounts and Notional Amounts, if any, and Pass Through Rates of, if
          any, each Class of such Series of Certificates to be authenticated
          and delivered and the method of calculation thereof.

     (2)  Series Supplement. A Series Supplement consistent with the
          applicable provisions of this Agreement, accompanied by a Board
          Resolution (or action by a Person authorized by Board Resolution)
          authorizing such Series Supplement (and, in the case of the first
          Series to be authenticated and delivered hereunder, authorizing this
          Agreement).

     (3)  Certificates of the Trustor.

          (a)  An Officer's Certificate of the Trustor, dated as of the
               Closing Date, to the effect that the Trustor is not in breach
               of this Agreement and that the issuance of the Certificates
               applied for will not result in any breach of any of the terms,
               conditions, or provisions of, or constitute a default under,
               the Trustor's Certificate of Incorporation or bylaws, or any
               indenture, mortgage, deed of transfer or other agreement or
               instrument to which the

                                      46
<PAGE>

               Trustor is a party or by which it or its property is bound or
               any order of any court or administrative agency entered in any
               Proceeding to which the Trustor is a party or by which it or
               its property may be bound or to which it or its property may be
               subject.

          (b)  An Officer's Certificate of the Trustor, dated as of the
               Closing Date, to the effect that attached thereto are true and
               correct copies of letters signed by the Rating Agency (or other
               evidence satisfactory to the Trustee) and confirming that the
               related Certificates have received the Required Rating.

     (4)  Requirements of Series Supplement. Such other funds, accounts,
          documents, certificates, agreements, instruments or opinions as may
          be required by the terms of the Series Supplement creating such
          Series.

     If all the Certificates of a Series are not to be originally issued at
the same time, then the documents required to be delivered pursuant to this
Section 5.13 must be delivered only once, prior to the authentication and
delivery of the first Certificate of such Series; provided, however, that any
subsequent Trustor Order to the Trustee to authenticate Certificates of such
Series upon original issuance shall constitute a representation and warranty
by the Trustor that, as of the date of such request, the statements made in
the Officer's Certificates delivered pursuant to this Section 5.13 shall be
true and correct as if made on such date.

     Section 5.14. Appointment of Paying Agent. The Trustee may appoint one or
more paying agents (each, a "Paying Agent") with respect to the Certificates
of any Series. Any such Paying Agent shall be authorized to make distributions
to Certificateholders of such Series from the Certificate Account for such
Series pursuant to the provisions of the applicable Series Supplement and
shall report the amounts of such distributions to the Trustee. Any Paying
Agent shall have the revocable power to withdraw funds from such Certificate
Account for the purpose of making the distributions referred to above. The
Trustee may revoke such power and remove the Paying Agent if the Trustee
determines in its sole discretion that the Paying Agent shall have failed to
perform its obligations under this Agreement in any material respect. The
Paying Agent shall initially be the Trustee and any co-paying agent chosen by
the Trustor and acceptable to the Trustee, including, if and so long as any
Series or Class within such Series is listed on the Luxembourg Stock Exchange
and such exchange so requires, a co-paying agent in Luxembourg or another
European city. Any Paying Agent shall be permitted to resign as Paying Agent
upon 30 days' notice to the Trustee. In the event that the Trustee shall no
longer be the Paying Agent, the Trustee shall appoint a successor or
additional Paying Agent. The Trustee shall cause each successor to act as
Paying Agent to execute and deliver to the Trustee an instrument in which such
successor or additional Paying Agent shall agree with the Trustee that (i) it
will hold all sums, if any, held by it for distribution to the
Certificateholders in trust for the benefit of the Certificateholders entitled
thereto until such sums shall be distributed to such Certificateholders and
(ii) it will give the Trustee notice of any default by any obligor on the
applicable Series of Certificates or on the Underlying Securities. The Paying
Agent shall return all unclaimed funds to the Trustee and upon removal shall
also return all funds in its possession to the Trustee. The provisions of
Sections 8.1, 8.2, 8.3, 8.5 and 8.9 shall apply to the Trustee also in its
role as Paying Agent, for so long as the Trustee shall act as Paying Agent.
Any reference in this Agreement to the Paying Agent shall include any
co-paying agent unless the context requires otherwise. Notwithstanding
anything contained herein to the contrary, the appointment of a Paying Agent
pursuant to this Section 5.14 shall not release the Trustee from the duties,

                                      47
<PAGE>

obligations, responsibilities or liabilities arising under this Agreement
other than with respect to funds paid to such Paying Agent.

     Section 5.15. Authenticating Agent. (a) The Trustee may appoint one or
more Authenticating Agents (each, an "Authenticating Agent") with respect to
the Certificates of any Series which shall be authorized to act on behalf of
the Trustee in authenticating such Certificates in connection with the
issuance, delivery and registration of transfer or exchange of such
Certificates. Whenever 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 acceptable to the Trustor and the
Administrative Agent, if any. Notwithstanding anything contained herein to the
contrary, the appointment of an Authenticating Agent pursuant to this Section
5.15 shall not release the Trustee from the duties, obligations,
responsibilities or liabilities arising under this Agreement.

          (b) Any institution succeeding to the corporate agency business of
any Authenticating Agent shall continue to be an Authenticating Agent without
the execution or filing of any power or any further act on the part of the
Trustee or such Authenticating Agent. An Authenticating Agent may at any time
resign by giving notice of resignation to the Trustee and to the Trustor. The
Trustee may at any time terminate the agency of an Authenticating Agent by
giving notice of termination to such Authenticating Agent and to the Trustor.
Upon receiving such a notice of resignation or upon such a termination, or in
case at any time an Authenticating Agent shall cease to be acceptable to the
Trustee or the Trustor, the Trustee promptly may appoint a successor
Authenticating Agent. Any successor Authenticating Agent upon acceptance of
its appointment hereunder shall become vested with all the rights, powers and
duties of its predecessor hereunder, with like effect as if originally named
as an Authenticating Agent. No successor Authenticating Agent shall be
appointed unless acceptable to the Administrative Agent, if any, and the
Trustor. The Trustee agrees to pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section. The
provisions of Section 8.1, 8.2 and 8.3 shall be applicable to any
Authenticating Agent.

          (c) Pursuant to an appointment made under this Section, the
Certificates may have endorsed thereon, in lieu of the Trustee's certificate
of authentication, an alternate certificate of authentication in substantially
the following form:

     This is one of the Certificates described in the Trust Agreement and the
related Series Supplement.

                                       _________________________________________
                                       as Authenticating Agent for the Trustee,

                                       _________________________________________
                                       By:  Authorized Signatory

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<PAGE>

     Section 5.16. Events of Default. If any Event of Default shall occur and
be continuing with respect to any class of Certificates, then, and in each and
every case, the Trustee shall exercise any rights in respect of the related
Underlying Securities as provided in the applicable Series Supplement.

     Section 5.17. Control by Holders. The Holders of Outstanding Certificates
representing the Required Percentage-Direction of Trustee shall, subject to
provision being made for indemnification against costs, expenses and
liabilities in a form satisfactory to the Trustee, have the right to direct
the time, method and place of conducting any Proceeding for any remedy
available to the Trustee with respect to any Issuer Payment Default; provided,
however, that:

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

               (ii) subject to Section 8.7, the Trustee need not take any
     action that it determines might cause it to incur any liability or might
     materially adversely affect the rights of any Holders not consenting to
     such action.

     Section 5.18. Waiver of Past Defaults. The Holders of Outstanding
Certificates representing the Required Percentage-Direction of Trustee may
waive any past default and its consequences except (i) an Issuer Payment
Default or other default in the payment of principal of or interest on any of
the Certificates or (ii) a default in respect of a covenant or provision
hereof which cannot be modified or amended without the consent of the Holder
of each Certificate. In the case of any such waiver, the Trustor, the Trustee
and the Holders shall be restored to their former positions and rights
hereunder, respectively; but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereto.

                                  ARTICLE VI

                   THE TRUSTOR AND THE ADMINISTRATIVE AGENT

     Section 6.1. Preparation and Filing of Exchange Act Reports; Obligations
of the Trustor and the Administrative Agent. (a) The Administrative Agent, if
any, shall be liable in accordance herewith only to the extent of the
obligations specifically imposed by this Agreement and the related Series
Supplement. The Trustee shall:

               (1) on behalf of the Trust, prepare for signature by the
          Trustor and file with the Commission, following the execution
          thereof by the Trustor, within the time period set forth below,
          copies of the annual reports and of the information, documents and
          other reports (or copies of such portions of any of the foregoing as
          the Commission may from time to time by rules and regulations
          prescribe), if any, which the Trustor on behalf of the Trust may be
          required to file with the Commission pursuant to Section 13 or 15(d)
          of the Exchange Act (collectively, "Reports") with respect to the
          Trust. The names of such Reports and the dates on which they are
          required to be filed with the Commission are as follows:

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<PAGE>

               (ii) Form 8-K, in substantially the form previously provided by
     the Trustor to the Trustee, within 15 calendar days after the Closing
     Date, and within the time advised to the Trustee by the Trustor if the
     filing of Form 8-K is necessary for any other reason;

               (iii) Form 10-D, in substantially the form previously provided
     by the Trustor to the Trustee, within 15 calendar days after each
     Distribution Date; and

               (iv) Form 10-K, in substantially the form previously provided
     by the Trustor to the Trustee, within 90 calendar days after December 31
     of each year;

                    (2) receive from the Trustor, within 15 days after the
          Trustor is required to file the same with the Commission, such
          additional information, documents and reports with respect to
          compliance by the Trustor with the conditions and covenants of this
          Agreement, if any, as may be required to be filed with the
          Commission from time to time by such rules and regulations;

                    (3) receive from the Trustor and transmit by mail to all
          Holders described in TIA Section 313(c), in the manner and to the
          extent provided therein, such summaries of any information,
          documents and reports required to be filed by the Trustor and
          received pursuant to clauses (i) and (ii) of this Section 6.1(a), if
          any, as may be required by rules and regulations prescribed from
          time to time by the Commission.

          (b) The Trustor shall deliver to the Trustee, not less often than
annually, an Officer's Certificate signed by an Executive Officer who is the
principal executive officer, principal financial officer or principal
accounting officer of the Trustor, dated as of the date set forth in the
Series Supplement for such year, stating that:

                    (1) a review of the activities of the Trustor during such
          fiscal year and of performance under this Agreement has been made
          under such Executive Officer's supervision; and

                    (2) to the best of such Executive Officer's knowledge,
          based on such review, the Trustor has fulfilled all of its
          obligations under this Agreement throughout such year, or, if there
          has been a default in the fulfillment of any such obligation,
          specifying each such default known to such Executive Officer and the
          nature and status thereof. A copy of such certificate may be
          obtained by any Holder by a request in writing to the Trustor
          addressed to the Corporate Trust Office of the Trustee.

          (c) If and only if the Series Supplement provides for the pledge of
the Underlying Securities to the Trustee (and not merely the transfer,
assignment, conveyance and sale, without recourse, thereof to the Trustee), on
the Closing Date, the Trustor shall furnish to the Trustee an Opinion of
Counsel either stating that, in the opinion of such counsel, such action has
been taken with respect to the recording and filing of this Agreement, any
agreements supplemental hereto and any other requisite documents, and with
respect to the execution and filing of any financing statements and
continuation statements as are necessary to perfect and

                                      50
<PAGE>

make effective the lien and security interest of this Agreement and reciting
the details of such action, or stating that, in the opinion of such counsel,
no such action is necessary to make such lien and security interest effective.

          (d) If and only if the Series Supplement provides for the pledge of
the Underlying Securities to the Trustee (and not merely the transfer,
assignment, conveyance and sale, without recourse, thereof to the Trustee), at
least annually after the Closing Date, the Trustor shall furnish to the
Trustee an Opinion of Counsel either stating that, in the opinion of such
counsel, such action has been taken with respect to the recording, filing,
re-recording and refiling of this Agreement, any agreements supplemental
hereto and any other requisite documents and with respect to the execution and
filing of any financing statements and continuation statements as is necessary
to maintain the lien and security interest created by this Agreement and
reciting the details of such action or stating that in the opinion of such
counsel no such action is necessary to maintain the lien and security interest
created by this Agreement. Such Opinion of Counsel shall also describe the
recording, filing, re-recording and refiling of this Agreement, any agreements
supplemental hereto and any other requisite documents and the execution and
filing of any financing statements and continuation statements that will, in
the opinion of such counsel, be required to maintain the lien and security
interest of this Agreement until such date in the following calendar year.

          (e) If and only if the Series Supplement provides for the pledge of
the Underlying Securities to the Trustee (and not merely the transfer,
assignment, conveyance and sale, without recourse, thereof to the Trustee),

               (i) whenever any property or securities are to be released from
     the lien of this Agreement, the Trustor shall furnish to the Trustee an
     Officer's Certificate of the Trustor certifying or stating the opinion of
     each Person signing such certificate as to the fair value (within 90 days
     of such release) of the property or securities proposed to be released
     and stating that in the opinion of such person the proposed release will
     not impair the security under this Agreement in contravention of the
     provisions hereof.

               (ii) whenever the Trustor is required to furnish to the Trustee
     an Officer's Certificate of the Trustor certifying or stating the opinion
     of any signatory thereof as to the matters described in clause (i) above,
     the Trustor shall also furnish to the Trustee an Independent Certificate
     as to the same matters if the fair value of the property or securities
     and of all other property or securities released from the lien of this
     Agreement since the commencement of the then current calendar year, as
     set forth in the certificates required by clause (i) above and this
     clause (ii), equals 10% or more of the principal amount of the
     Outstanding Certificates, but such certificate need not be furnished in
     the case of any release of property or securities if the fair value
     thereof as set forth in the related Officer's Certificate of the Trustor
     is less than $25,000 or less than one percent of the then principal
     amount of the Outstanding Certificates.

               (iii) prior to the deposit with the Trustee of any securities
     that are to be made the basis for the authentication and delivery of
     Certificates, the withdrawal of cash constituting a part of the trust
     estate or the release of any property or securities subject to the lien
     of this Agreement, the Trustor shall furnish to the Trustee an Officer's
     Certificate

                                      51
<PAGE>

     of the Trustor certifying or stating the opinion of each person signing
     such certificate as to the fair value (within 90 days of such deposit) to
     the Trustor of the securities to be so deposited.

               (iv) whenever the Trustor is required to furnish to the Trustee
     an Officer's Certificate of the Trustor described in clause (iii) above,
     the Trustor shall also deliver to the Trustee an Independent Certificate
     as to the same matters, if the fair value to the Trustor of the
     securities to be so deposited and of all other such securities made the
     basis of any such withdrawal or release since the commencement of the
     then current fiscal year of the Trustor, as set forth in the certificates
     delivered pursuant to clause (iii) above and this clause (iv), is 10% or
     more of the principal amount of the Outstanding Certificates, but such a
     certificate need not be furnished with respect to any securities so
     deposited, if the fair value thereof to the Trustor as set forth in the
     related Officer's Certificate of the Trustor is less than $25,000 or less
     than one percent of the principal amount of the Outstanding Certificates.

               (v) subject to the payment of its fees and expenses hereunder,
     the Trustee may, and when required by the provisions of this Agreement,
     shall, execute instruments to release property from the lien of this
     Agreement, or convey the Trustee's interest in the same, in a manner and
     under circumstances that are consistent with the provisions of this
     Agreement. No party relying upon an instrument executed by the Trustee in
     connection therewith shall be bound to ascertain the Trustee's authority,
     inquire into the satisfaction of any conditions precedent or see to the
     application of any moneys.

               (vi) the Trustee shall at such time as there are no Outstanding
     Certificates and all sums due to the Trustee hereunder have been paid,
     release any remaining portion of the trust estate that secured the
     Certificates from the lien of this Agreement and release to the Trustor
     or any other Person entitled thereto any funds then included in the trust
     estate.

          (f) Upon any application or request by the Trustor to the Trustee to
take any action under the provisions of this Agreement, which action is
subject to the satisfaction of a condition precedent (including any covenants
compliance with which constitutes a condition precedent), the Trustor shall
furnish to the Trustee: (i) an Officer's Certificate stating that all
conditions precedent, if any, provided for in this Agreement relating to the
proposed action have been complied with, (ii) an Opinion of Counsel stating
that in the opinion of such counsel all such conditions precedent, if any,
have been complied with and (iii) (if required by the TIA) an Independent
Certificate from a firm of certified public accountants meeting the applicable
requirements of the TIA, except that, in the case of any such application or
request as to which the furnishing of such documents is specifically required
by any provision of this Agreement, no additional certificate or opinion need
be furnished. Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Agreement shall include:

               (i) a statement that such signatory of such certificate or
     opinion has read or has caused to be read such covenant or condition and
     the definitions herein relating thereto;

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<PAGE>

               (ii) a brief statement as to the nature and scope of the
     examination or investigation upon which the statements or opinions
     contained in such certificate or opinion are based;

               (iii) a statement that, in the judgment of each such signatory,
     such signatory has made such examination or investigations as is
     necessary to enable such signatory to express an informed opinion as to
     whether or not such covenant or condition has been complied with; and

               (iv) a statement as to whether, in the opinion of each such
     signatory, such condition or covenant has been complied with.

     Section 6.2. Merger or Consolidation of the Trustor or the Administrative
Agent. (a)Subject to the following paragraph, the Trustor will keep in full
effect its existence, rights and franchises as a corporation under the laws of
the jurisdiction of its incorporation, and the Administrative Agent, if any,
will keep in full effect its existence, rights and franchises under the laws
of the jurisdiction of its incorporation or association. The Trustor and the
Administrative Agent, if any, each will obtain and preserve its qualification
to do business as a foreign corporation or association in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, the Certificates or any of the Underlying
Securities and to perform its respective duties under this Agreement.

          (b) The Trustor and an Administrative Agent, if any, may consolidate
or merge with or into any other Person, provided that:

               (i) the Person (if other than the Trustor or Administrative
     Agent, as applicable) formed by or surviving such consolidation or merger
     shall expressly assume, by an agreement supplemental hereto executed and
     delivered to the Trustee, in form satisfactory to the Trustee, the
     performance or observance of every agreement and covenant of this
     Agreement on the part of the Trustor or Administrative Agent, as
     applicable, to be performed or observed, all as provided herein and in
     the applicable Series Supplement or Supplements;

               (ii) immediately after giving effect to such transaction, no
     Administrative Agent Termination Event or event which with the passage of
     time or notice or both would become an Administrative Agent Termination
     Event shall have occurred and be continuing;

               (iii) the Rating Agency Condition shall have been satisfied
     with respect to such transaction; and

               (iv) the Trustor or Administrative Agent, as applicable, shall
     have delivered to the Trustee an Officer's Certificate and an Opinion of
     Counsel each stating that such consolidation or merger and such
     supplemental agreement comply with this Article VI and that all
     conditions precedent herein provided for relating to such transaction
     have been complied with.

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<PAGE>

     Section 6.3. Limitation on Liability of the Trustor and the
Administrative Agent. (a) Unless otherwise expressly specified in this
Agreement or a Series Supplement, neither the Administrative Agent, if any,
nor the Trustor shall be under any obligation to expend or risk its own funds
or otherwise incur financial liability in the performance of its duties
hereunder or under a Series Supplement or in the exercise of any of its rights
or powers if reasonable grounds exist for believing that the repayment of such
funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

          (b) Neither the Trustor, an Administrative Agent, if any, nor any of
the directors, officers, employees or agents of the Trustor or such
Administrative Agent shall be under any liability to any Trust or the
Certificateholders of any Series 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 Trustor, any such Administrative Agent or any such person against any
breach of warranties, representations or covenants made herein, or against any
specific liability imposed on such Administrative Agent pursuant hereto, or
against any liability which would otherwise be imposed by reason of willful
misfeasance, bad faith or negligence in the performance of duties or by reason
of reckless disregard of obligations and duties hereunder.

     Neither the Trustor nor an Administrative Agent, if any, 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 involve it in any expense or liability; provided, however,
that either of the Trustor or such Administrative Agent may in its discretion
undertake any such action 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. The legal expenses and
costs of such action and any liability resulting (except any loss, liability
or expense incurred by reason of willful misfeasance, bad faith or negligence
in the performance of duties hereunder or by reason of reckless disregard of
obligations and duties hereunder) shall be allocated as specified in the
applicable Series Supplement.

     Section 6.4. Limitation on Resignation of the Administrative Agent. An
Administrative Agent appointed pursuant to the applicable Series Supplement
shall not resign from the obligations and duties hereby imposed on it except
(a) upon appointment by the Trustee of a successor administrative agent and
receipt by the Trustee of a letter from the Rating Agency that such a
resignation and appointment will satisfy the Rating Agency Condition or (b)
upon a determination that its duties hereunder are no longer permissible under
applicable law. Any such determination pursuant to clause (b) of the preceding
sentence permitting the resignation of the Administrative Agent shall be
evidenced by an Opinion of Counsel to such effect delivered to the Trustee and
the Trustor. No resignation of an Administrative Agent shall become effective
until the Trustee or a successor administrative agent shall have assumed the
Administrative Agent's responsibilities, duties, liabilities (other than those
liabilities arising prior to the appointment of such successor) and
obligations under this Agreement.

     Section 6.5. Rights of the Trustor in Respect of the Administrative
Agent. An Administrative Agent appointed pursuant to the applicable Series
Supplement shall afford the Trustor and the Trustee, upon reasonable notice,
during normal business hours, access to all

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<PAGE>

records maintained by the Administrative Agent in respect of its rights and
obligations hereunder and access to officers of the Administrative Agent
responsible for such obligations. Upon request, the Administrative Agent shall
furnish to the Trustor and the Trustee the Administrative Agent's most recent
financial statements and such other information relating to its capacity to
perform its obligations under this Agreement as the Administrative Agent
possesses. To the extent such information is not otherwise available to the
public, the Trustor and the Trustee shall not disseminate any information
obtained pursuant to the preceding two sentences without the Administrative
Agent's written consent, except as required pursuant to this Agreement to the
extent that it is appropriate to do so (i) in working with legal counsel,
auditors, taxing authorities or other governmental agencies or (ii) pursuant
to any law, rule, regulation, order, judgment, writ, injunction or decree of
any court or governmental authority having jurisdiction over the Trustor, the
Trustee or the Trust. The Trustor may, but is not obligated to, enforce the
obligations of the Administrative Agent under this Agreement and may, but is
not obligated to, perform, or cause a designee to perform, any defaulted
obligation of the Administrative Agent under this Agreement or exercise the
rights of the Administrative Agent under this Agreement; provided, however,
that the Administrative Agent shall not be relieved of any of its obligations
under this Agreement by virtue of such performance by the Trustor or its
designee. The Trustor shall not have any responsibility or liability for any
action or failure to act by the Administrative Agent and is not obligated to
supervise the performance of the Administrative Agent under this Agreement or
otherwise.

     Section 6.6. Trustor May Purchase Certificates. The Trustor may at any
time purchase Certificates in the open market or otherwise. Certificates so
purchased by the Trustor may, at the discretion of the Trustor, be held or
resold. Certificates beneficially owned by the Trustor will be disregarded for
purposes of determining whether the required percentage of the aggregate
Voting Rights has given any request, demand, authorization, direction, notice,
consent or waiver hereunder.

     Section 6.7. The Administrative Agent and Other Parties. The Person
serving as an Administrative Agent, if any, appointed pursuant to the
applicable Series Supplement may be the Trustor, the Trustee or an Affiliate
of either thereof, and may have normal business relationships with the
Trustor, the Trustee or any Affiliates thereof.

     Section 6.8. Preferential Collection of Claims Against Trustor. The
Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A trustee who has resigned or been
removed shall be subject to TIA Section 311(a) to the extent required by TIA
Section 311(a).

                                 ARTICLE VII

                    ADMINISTRATIVE AGENT TERMINATION EVENTS

     Section 7.1. Administrative Agent Termination Events. (a) "Administrative
Agent Termination Event," wherever used herein with respect to any Series of
Certificates, means any one of the following events:

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<PAGE>

               (i) a failure by any Administrative Agent specified in the
     applicable Series Supplement to remit to the Trustee, pursuant to the
     terms of this Agreement, any funds in respect of collections on
     Underlying Securities, Credit Support, if any, and Advances, if any,
     collected by the Administrative Agent pursuant to the terms of this
     Agreement that continues unremedied for a period of two days after the
     date upon which written notice of such failure, requiring the same to be
     remedied, shall have been given to the Administrative Agent by the
     Trustor or the Trustee (in which case notice shall be provided by
     telecopy), or to the Administrative Agent, the Trustor and the Trustee by
     the Holders of Certificates of such Series representing at least 25% of
     the aggregate Voting Rights; or

               (ii) a failure on the part of any Administrative Agent
     specified in the applicable Series Supplement to observe or perform in
     any material respect any other of the covenants or agreements on the part
     of the Administrative Agent contained in the Certificates of such Series
     or in this Agreement which continues unremedied for a period of 10 days
     after the date on which written notice of such failure, requiring the
     same to be remedied, shall have been given to the Administrative Agent by
     the Trustor or the Trustee, or to the Administrative Agent, the Trustor
     and the Trustee by the Holders of Certificates of such Series
     representing at least 25% of the aggregate Voting Rights; or

               (iii) a decree or order of a court or agency or supervisory
     authority having jurisdiction in an involuntary case under any present or
     future federal or state bankruptcy, insolvency or similar law or the
     appointment of a conservator or receiver or liquidator in any insolvency,
     readjustment of debt, marshalling of assets and liabilities or similar
     proceeding, or for the winding up or liquidation of its affairs, shall
     have been entered against the Administrative Agent, if any, specified in
     the applicable Series Supplement and such decree or order shall have
     remained in force undischarged or unstayed for a period of 30 days; or

               (iv) any Administrative Agent specified in the applicable
     Series Supplement shall consent to the appointment of a conservator or
     receiver or liquidator in any insolvency, readjustment of debt,
     marshalling of assets and liabilities or similar proceedings of or
     relating to the Administrative Agent or of or relating to all or
     substantially all its property; or

               (v) any Administrative Agent specified in the applicable Series
     Supplement 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) if so specified in the related Series Supplement, any
     failure of the Administrative Agent, if any, specified in the applicable
     Series Supplement to make any Advances required to be made from its own
     funds pursuant to Section 4.3 which continues unremedied until twelve
     o'clock noon New York City time on the Business Day immediately following
     the day on which such Advance was required to have been made; or

                                      56
<PAGE>

               (vii) any additional Administrative Agent Termination Event
     that may be specified with respect to such Series in the related Series
     Supplement.

Each Series Supplement shall specify as to each of the foregoing clauses
requiring a vote of Holders of different Classes the circumstances and manner
in which the aggregate Voting Rights applicable to each such clause shall be
calculated.

     (b) Unless otherwise provided in the applicable Series Supplement and
provided an Administrative Agent shall have been appointed pursuant to the
applicable Series Supplement, so long as an Administrative Agent Termination
Event with respect to the related Series of Certificates shall have occurred
and be continuing, the Trustor or the Trustee may, and at the written
direction of the Holders of Certificates evidencing not less than the
"Required Percentage-Administrative Agent Termination" of the aggregate Voting
Rights, the Trustee shall, by notice in writing to such Administrative Agent
(and to the Trustor if given by the Trustee or to the Trustee if given by the
Trustor) terminate all the rights and obligations of the Administrative Agent
specified in the applicable Series Supplement in its capacity as
Administrative Agent with respect to such Series under this Agreement, to the
extent permitted by law, and in and to the Underlying Securities relating to
such Series (other than any Retained Interest of the Administrative Agent, if
any) and the proceeds thereof. On or after the receipt by such Administrative
Agent of such written notice, all authority and power of the Administrative
Agent under this Agreement relating to such Series, whether with respect to
the Certificates (other than as a Holder of any Certificate) of such Series or
the Underlying Securities relating to such Series or otherwise, shall pass to
and be vested in the Trustee pursuant to and under this Section 7.1(b), and
without limitation, the Trustee is hereby authorized and empowered, as
attorney-in-fact or otherwise, to execute and deliver, on behalf of and at the
expense of the Administrative Agent, 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 such Underlying
Securities and related documents, or otherwise. The Administrative Agent, if
any, specified in the applicable Series Supplement agrees promptly (and in any
event not later than ten Business Days subsequent to such notice) to provide
the Trustee with all documents and records requested by it to enable it to
assume the functions of the Administrative Agent under this Agreement relating
to such Series, and to cooperate with the Trustee in effecting the termination
of the Administrative Agent's responsibilities and rights under this Agreement
relating to such Series, including the transfer within one Business Day to the
Trustee for administration by it of all cash amounts and investments which
shall at the time be or should have been credited by the Administrative Agent
to the Certificate Account relating to such Series or thereafter be received
with respect to such Underlying Securities; provided, however, that the
Administrative Agent shall continue to be entitled to receive all amounts
accrued or owing to it under this Agreement on or prior to the date of such
termination, whether in respect of Advances or otherwise, and shall continue
to be entitled to the benefits of Section 6.3 notwithstanding any such
termination.

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<PAGE>

     Section 7.2. Trustee to Act; Appointment of Successor. On and after the
time an Administrative Agent, if any, specified in the applicable Series
Supplement receives a notice of termination pursuant to Section 7.1, the
Trustee shall be the successor in all respects to the Administrative Agent in
its capacity as Administrative Agent under this Agreement or the applicable
Series Supplement and the transactions set forth or provided for herein and
shall be subject to all the responsibilities, duties and liabilities relating
thereto and arising thereafter placed on the Administrative Agent (except for
any representations or warranties of the Administrative Agent under this
Agreement and except as otherwise provided herein or in the applicable Series
Supplement) by the terms and provisions hereof including the Administrative
Agent's obligation, if any, to make Advances pursuant to Section 4.3;
provided, however, that if the Trustee is prohibited by law or regulation from
obligating itself to make Advances, then the Trustee shall not be obligated to
make such Advances pursuant to Section 4.3; and provided further, that any
failure to perform such duties or responsibilities caused by the
Administrative Agent's failure to provide information required by Section 7.1
shall not be considered a default by the Trustee as successor to the
Administrative Agent hereunder. As compensation therefor, the Trustee shall be
entitled to the amounts relating to the Underlying Securities of a given
Series to which such Administrative Agent would have been entitled if the
Administrative Agent had continued to act hereunder. Notwithstanding the
above, the Trustee may, if it shall be unwilling to so act, or shall, if it is
unable to so act or if the Holders of Certificates of such Series evidencing
not less than the Required Percentage-Administrative Agent Termination of the
aggregate Voting Rights, so request in writing to the Trustee, promptly
appoint, or petition a court of competent jurisdiction to appoint, an
Administrative Agent acceptable to the Rating Agency (such acceptance to be
evidenced by satisfaction of the Rating Agency Condition with respect to such
appointment) and having a net worth of not less than $15,000,000, as the
successor to such Administrative Agent under this Agreement with respect to
such Series in the assumption of all or any part of the responsibilities,
duties or liabilities of such Administrative Agent under this Agreement with
respect to such Series. The Trustee, the Trustor and any such successor
Administrative Agent may agree upon the compensation to be paid with respect
thereto; provided, however, that in no event shall such compensation be
greater than the compensation payable to the Administrative Agent under this
Agreement. No appointment of a successor Administrative Agent under this
Agreement shall be effective until the assumption by the successor
Administrative Agent of all the responsibilities, duties and liabilities
placed on the Administrative Agent hereunder and under the related Series
Supplement. Pending appointment of a successor Administrative Agent under this
Agreement, the Trustee shall act in such capacity as and to the extent
hereinabove provided.

     Section 7.3. Notification to Certificateholders. (a) Upon any such
termination pursuant to Section 7.2 or appointment of a successor
Administrative Agent, the Trustee shall give prompt written notice thereof to
Certificateholders of the affected Series in the manner provided in Section
10.5.

          (b) Within 60 days after the occurrence of any Administrative Agent
Termination Event or event which but for the lack of notice or passage of time
or both would constitute an Administrative Agent Termination Event with
respect to any Series, the Trustee shall transmit by mail to all
Certificateholders of such Series notice of each such Administrative Agent
Termination Event or event which but for lack of notice or passage of time or
both would constitute an Administrative Agent Termination Event which is known
to the Trustee, unless

                                      58
<PAGE>

such Administrative Agent Termination Event or event which but for lack of
notice or passage of time or both would constitute an Administrative Agent
Termination Event shall have been cured or waived.

     Section 7.4. Waiver of Administrative Agent Termination Events. Unless
otherwise provided in the applicable Series Supplement, the Holders of
Certificates of the related Series evidencing not less than the Required
Percentage-Waiver of the aggregate Voting Rights may, on behalf of all
Certificateholders of such Series, (i) if so provided in the applicable Series
Supplement, waive compliance by the Trustor, the Trustee or the Administrative
Agent, if any, with certain restrictive provisions of this Agreement as set
forth in such Series Supplement prior to the time such compliance is required
and (ii) waive any Administrative Agent Termination Event or event which but
for lack of notice or passage of time or both would constitute an
Administrative Agent Termination Event with respect to such Series; provided,
however, that an Administrative Agent Termination Event or event which but for
lack of notice or passage of time or both would constitute an Administrative
Agent Termination Event with respect to such Series regarding the failure to
distribute, in accordance with the terms of this Agreement, amounts received
with respect to any Underlying Security or any such event with respect to such
Series in respect of a covenant or provision of this Agreement the
modification or amendment of which would require the consent of the Holders of
all outstanding Certificates of such Series, may be waived only by all the
Certificateholders of such Series. Upon any such waiver of an Administrative
Agent Termination Event or event which but for lack of notice or passage of
time or both would constitute an Administrative Agent Termination Event with
respect to such Series, such Administrative Agent Termination Event or event
which but for lack of notice or passage of time or both would constitute an
Administrative Agent Termination Event shall cease to exist and shall be
deemed to have been remedied for every purpose hereunder. No such waiver shall
extend to any subsequent or other Administrative Agent Termination Event or
event which but for lack of notice or passage of time or both would constitute
an Administrative Agent Termination Event or impair any right consequent
thereon except to the extent expressly so waived.

                                 ARTICLE VIII

                            CONCERNING THE TRUSTEE

     Section 8.1. Duties of Trustee; Notice of Defaults. (a) The Trustee,
prior to the occurrence of an Administrative Agent Termination Event or Event
of Default with respect to any Series and after the curing of all such
Administrative Agent Termination Events or Events of Default which may have
occurred, undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement and the related Series Supplement.
During the period an Administrative Agent Termination Event or Event of
Default with respect to any Series shall have occurred and be continuing, the
Trustee shall exercise such of the rights and powers vested in it by this
Agreement, and shall use the same degree of care and skill in their exercise,
as a prudent man would exercise or use under the circumstances in the conduct
of such person's own affairs. Any permissive right of the Trustee enumerated
in this Agreement shall not be construed as a duty.

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          (b) 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. If any such
instrument is found not to conform to the requirements of this Agreement, the
Trustee shall take action as it deems appropriate to have the instrument
corrected, and if the instrument is not corrected to the Trustee's
satisfaction, the Trustee will provide notice thereof to the Trustor,
Administrative Agent, if any, and Certificateholders.

          (c) 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 an Administrative Agent
     Termination Event or Event of Default with respect to any Series, and
     after the curing of all such Administrative Agent Termination Events or
     Events of Default 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 that conform
     to the requirements of this Agreement;

               (ii) the Trustee shall not be personally liable for an error of
     judgment made in good faith by a Responsible Officer or Responsible
     Officers of the Trustee, unless it shall be proved that the Trustee was
     negligent in ascertaining the pertinent facts; and

               (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 Holders of the Required
     Percentage-Direction of Trustee of the aggregate Voting Rights of a given
     Series (or Class or group of Classes within such Series) relating to 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;

               (iv) 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 obligations of an
     Administrative Agent, if any, appointed pursuant to the applicable Series
     Supplement, 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

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     privileges of, such an Administrative Agent in accordance with and only
     to the extent provided in this Agreement;

               (v) except for actions expressly authorized by this Agreement,
     the Trustee shall take no actions reasonably likely to impair the
     interests of the Trust in any Underlying Security now existing or
     hereafter acquired or to impair the value of any Underlying Security now
     existing or hereafter acquired;

               (vi) except as expressly provided in this Agreement, the
     Trustee shall not engage in any activity other than those required or
     authorized by the terms of this Agreement. In particular, after the
     Closing Date the Trustee shall not purchase or otherwise acquire any
     additional securities, modify or permit the modification of any Trust
     Asset or otherwise vary the investment of the Certificateholders or incur
     or modify any obligations, (i) except as expressly required or permitted
     by the terms of this Agreement or (ii) unless the Trustee obtains, at the
     expense of the Certificateholders, an Opinion of Counsel to the effect
     that such acquisition, incurrence or modification will not cause the
     Trust (unless otherwise indicated in a related Series Supplement) to be
     taxable as a corporation for federal income tax purposes; and

               (vii) in the event that the Paying Agent or the Certificate
     Registrar shall fail to perform any obligation, duty or agreement in the
     manner or on the day required to be performed by the Paying Agent or
     Certificate Registrar, as the case may be, under this Agreement, the
     Trustee shall be obligated promptly upon its knowledge thereof to perform
     such obligation, duty or agreement in the manner so required.

          (d) The Trustee shall have the legal power to exercise all of the
rights, powers and privileges of holders of the Underlying Securities in which
the Certificates evidence an interest. However, neither the Trustee (except as
specifically provided herein or in the TIA) nor the Trustor shall be under any
obligation whatsoever to appear in, prosecute or defend any action, suit or
other proceeding in respect of Underlying Securities or Certificates.

          (e) Neither the Trustee nor the Trustor shall have any obligation on
or with respect to the Underlying Securities, except as provided in this
Article VIII with respect to the Trustee; and their respective obligations
with respect to Certificates shall be solely as set forth in this Agreement.

          (f) If there is an event of default (as defined in the indenture or
other document pursuant to which the Underlying Securities were issued) with
respect to any Underlying Security and such default is known to the Trustee,
the Trustee shall promptly give notice to the Depositary or, if the
Certificates are Definitive Certificates, directly to Holders thereof as
provided in Section 10.5 hereof (and in the manner and to the extent provided
in TIA Section 313(c)) within 10 days after such event of default occurs. Such
notice shall set forth (i) the identity of the Underlying Securities, (ii) the
date and nature of such default, (iii) the face amount of the obligation to
which such default relates, (iv) the identifying numbers of the Series and
Class of Certificates, or any combination, as the case may be, evidencing the
obligations (or portions thereof) described above in clause (iii), and (v) any
other information which the Trustee may deem appropriate.

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          (g) Holders of Certificates shall have no recourse against the
Trustor or the Trustee for payment defaults on the Underlying Securities.

     Section 8.2. Certain Matters Affecting the Trustee. (a) Except as
otherwise provided in Section 8.1:

               (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 written
     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 written advice or
     Opinion of Counsel;

               (iii) the Trustee shall be under no 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, 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 reasonable security or indemnity against the
     costs, expenses and liabilities which may be incurred therein or thereby;
     provided, however, that nothing contained herein shall relieve the
     Trustee of the obligations, upon the occurrence of an Administrative
     Agent Termination Event or Event of Default (which has not been cured or
     waived), to exercise such of the rights and powers vested in it by this
     Agreement, and to use the same degree of care and skill in their exercise
     as a prudent man would exercise or use under the circumstances in the
     conduct of such person's own affairs;

               (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 an Administrative Agent
     Termination Event hereunder and after the curing of all Administrative
     Agent Termination Events which may have occurred, the Trustee shall not
     be bound to make any investigation into the facts of matters stated in
     any resolution, certificate, statement, instrument, opinion, report,
     notice, request, consent, order, appraisal, approval, bond or other paper
     or document believed by it to be genuine, unless requested in writing to
     do so by Holders of the Required Percentage-Direction of Trustee of the
     aggregate Voting Rights of the affected Series (or Class or Classes
     within any such Series), as specified by the applicable Series
     Supplement; 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

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     reasonable indemnity against such expense or liability as a condition to
     taking any such action;

               (vi) 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 shall not be liable for
     such persons' actions if it has selected such persons with reasonable
     care; and

               (vii) the Trustee shall not be personally liable for any loss
     resulting from the investment of funds held in any Certificate Account or
     Reserve Account at the direction of an Administrative Agent or the
     Trustor pursuant to Section 3.10.

          (b) All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by it without the
possession of any of the Certificates of any Series (or Class within such
Series), or the production thereof at the trial or other Proceeding relating
thereto, and any such suit, action or proceeding instituted by the Trustee
shall be brought in its name for the benefit of all the Holders of such
Certificates, subject to the provisions of this Agreement.

     Section 8.3. Trustee Not Liable for Recitals in Certificates or
Underlying Securities. The Trustee assumes no responsibility for the
correctness of the recitals contained herein and in the Certificates or in any
document issued in connection with the sale of the Certificates (other than
the signature and authentication on the Certificates). Except as set forth in
Section 8.12, the Trustee makes no representations or warranties as to the
validity or sufficiency of this Agreement or of the Certificates of any Series
(other than the signature and authentication on the Certificates) or of any
Underlying Security or related document. The Trustee shall not be accountable
for the use or application by the Trustor or the Administrative Agent, if any,
of any of the Certificates or of the proceeds of such Certificates.

     Section 8.4. Trustee May Own Certificates. The Trustee in its individual
capacity or any other capacity may become the owner or pledgee of Certificates
with the same rights it would have if it were not Trustee.

     Section 8.5. Trustee's Fees and Expenses; Indemnification; Undertaking
for Costs. (a) The Trustee shall be entitled to receive from the Trustor or an
affiliate of the Trustor as compensation for the Trustee's services hereunder,
trustee's fees pursuant to a separate agreement between the Trustee and the
Trustor, and shall be reimbursed for all reasonable expenses, disbursements
and advances incurred or made by the Trustee (including the reasonable
compensation, disbursements and expenses of its counsel and other persons not
regularly in its employ). The Trustor shall indemnify and hold harmless the
Trustee and its successors, assigns, agents and servants against any and all
loss, liability or reasonable expense (including attorney's fees) incurred by
it in connection with the administration of this trust and the performance of
its duties thereunder. The Trustee shall notify the Trustor promptly of any
claim for which it may seek indemnity. Failure by the Trustee to so notify the
Trustor shall not relieve the Trustor of its obligations hereunder. The
Trustor need not reimburse any expense or indemnify against any loss,
liability or expense incurred by the Trustee through the Trustee's own willful
misconduct,

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negligence or bad faith. The indemnities contained in this Section 8.5(a)
shall survive the resignation or termination of the Trustee or the termination
of this Agreement.

          (b) Failure by the Trustor to pay, reimburse or indemnify the
Trustee shall not entitle the Trustee to any payment, reimbursement or
indemnification from the Trust, nor shall such failure release the Trustee
from the duties it is required to perform under this Agreement. Any unpaid,
unreimbursed or unindemnified amounts shall not be borne by the Trust and
shall not constitute a claim against the Trust, but shall be borne by the
Trustee in its individual capacity.

          (c) All parties to this Agreement agree, and each Holder of any
Certificate by such Holder's acceptance thereof shall be deemed to have
agreed, that any court may in its discretion require, in any Proceeding for
the enforcement of any right or remedy under this Agreement, or in any
Proceeding against the Trustee for any action taken, suffered or omitted by it
as Trustee, the filing by any party litigant in such Proceeding of an
undertaking to pay the costs of such Proceeding and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such Proceeding, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 8.5(c) shall not apply to:

               (i) any Proceeding instituted by the Trustee;

               (ii) any Proceeding instituted by any Holder, or group of
     Holders, in each case holding in the aggregate Outstanding Certificates
     representing more than 10% of the Voting Rights; or

               (iii) any Proceeding instituted by any Holder for the
     enforcement of the payment of principal or interest on or after the
     respective due dates expressed in such Certificate and in this Agreement
     (or, in the case of redemption, on or after the redemption date).

     Section 8.6. Eligibility Requirements for Trustee. (a) The Trustee shall
at all times satisfy the requirements of TIA Section 310(a). The Trustee
hereunder shall at all times be a corporation which is not an Affiliate of the
Trustor (but may have normal banking relationships with the Trustor or any
obligor with respect to the Underlying Securities with respect to such Series
of Certificates and their respective Affiliates) organized and doing business
under the laws of any State or the United States, authorized under such laws
to exercise corporate trust powers, having a combined capital and surplus of
at least $50,000,000 and subject to supervision or examination by federal or
state authority. If such corporation or association publishes reports of
conditions 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 association
shall be deemed to be its combined capital and surplus as set forth in its
most recent report of conditions so published. Such corporation or association
(or its parent) must be rated in one of the four highest rating categories by
the Rating Agency.

          (b) The Trustee shall comply with Section 310(b); provided, however,
that there shall be excluded from the operation of TIA Section 310(b)(1), any
Series Supplement

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under which other securities are outstanding evidencing ownership interest in
obligations of the Underlying Securities Issuer if the requirements for such
exclusion set forth in TIA Section 310(b)(1) are met.

     Section 8.7. Resignation or Removal of the Trustee. (a) The Trustee may,
with respect to any Series of Certificates, at any time resign and be
discharged from any trust hereby created by giving written notice thereof to
the Trustor, the Administrative Agent, if any, the Rating Agency and to all
Certificateholders of such Series. Upon receiving such notice of resignation,
the Trustor shall promptly appoint a successor trustee for such Series by
written instrument, in duplicate, which instrument shall be delivered to the
resigning Trustee and to the successor trustee. A copy of such instrument
shall be delivered to such Certificateholders and the Administrative Agent, if
any, by the Trustor. If no such successor trustee shall have been so appointed
and have 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 for such Series.

          (b) If at any time the Trustee shall cease to be eligible in
accordance with the provisions of Section 8.6 and shall fail to resign after
written request therefor by the Trustor, or if at any time the Trustee shall
become incapable of acting, or shall be adjudged 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 Trustor may remove the Trustee and appoint a successor trustee by written
instrument, in duplicate, which instrument shall be delivered to the Trustee
so removed and to the successor trustee. A copy of such instrument shall be
delivered to the Certificateholders and the Administrative Agent, if any, by
the Trustor.

          (c) The Holders of Certificates of any Series representing the
Required Percentage-Removal of Trustee of the aggregate Voting Rights may at
any time remove the Trustee and appoint a successor trustee by written
instrument or instruments, in triplicate, signed by such Holders or their
attorneys-in-fact and duly authorized, one complete set of which instruments
shall be delivered to the Trustor, one complete set to the Trustee so removed
and one complete set to the successor trustee so appointed. A copy of such
instrument shall be delivered to the Certificateholders and the Administrative
Agent, if any, by the Trustor.

          (d) Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section shall not
become effective until acceptance of appointment by the successor trustee as
provided in Section 8.8. Upon any such resignation or removal, the Trustee
shall be discharged from all of its obligations and duties in connection with
this Agreement.

     Section 8.8. Successor Trustee. (a) Any successor trustee appointed as
provided in Section 8.7 shall execute, acknowledge and deliver to the Trustor
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 (either with respect to a
given Series of Certificates or with respect to all Certificates issued under
this Agreement), with the like effect as if originally

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named as trustee herein. The predecessor trustee shall deliver to the
successor trustee all documents and statements held by it hereunder, and the
Trustor and the predecessor trustee shall execute and deliver such instruments
and do such other things as may reasonably be required for more 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 unless at the time of such acceptance such
successor trustee shall be eligible under the provisions of Section 8.6.

          (b) Upon acceptance of appointment by a successor trustee as
provided in this Section, the Trustor shall transmit notice of the succession
of such trustee hereunder to all Holders of Certificates and to the Rating
Agency in the manner provided in Section 10.5.

     Section 8.9. Merger or Consolidation of Trustee. Any corporation or
association into which the Trustee may be merged or converted or with which it
may be consolidated or any corporation or association resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation or association succeeding to the business of the Trustee,
shall be the successor of the Trustee hereunder, provided such corporation or
association shall be eligible under the provisions of Section 8.6, 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. (a)
Notwithstanding any other provisions hereof, at any time, for the purpose of
meeting any legal requirements of any jurisdiction in which any part of the
Trust for a given Series may at the time be located, the Trustor 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 such Trust, and to vest in such
Person or Persons, in such capacity, such title to such 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 Trustor and the Trustee
may consider necessary or desirable. If the Trustor shall not have joined in
such appointment within 15 days after the receipt by it of a request so to do,
or in case an Administrative Agent Termination Event shall have occurred and
be continuing, the Trustee alone shall have the power to make such
appointment. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor trustee under Section 8.6
hereunder and no notice to Holders of Certificates of the appointment of
co-trustee or co-trustees or separate trustee or trustees shall be required
under Section 8.8 hereof. Notwithstanding anything contained herein to the
contrary, the appointment of a co-trustee pursuant to this Section 8.10 shall
not release the Trustee from the duties, obligations, responsibilities or
liabilities arising under this Agreement.

          (b) In the case of any appointment of a co-trustee or separate
trustee pursuant to this Section 8.10, 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, except to the extent that under any law of any
jurisdiction in which any particular act or acts are to be performed by the
Trustee (whether as Trustee hereunder or as successor to an Administrative
Agent hereunder), the Trustee shall be incompetent or unqualified to perform
such act or acts, in which event such rights, powers, duties and

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obligations (including the holding of title to such Trust or any portion
thereof in any such jurisdiction) shall be exercised and performed by such
separate trustee or co-trustee at the direction of the Trustee.

          (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 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.

          (d) 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
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.

     Section 8.11. Appointment of Office or Agency. As specified in a Series
Supplement, the Trustee shall appoint an office or agency in the City of New
York where the Certificates may be surrendered for registration of transfer or
exchange, and presented for the final distribution with respect thereto, and
where notices and demands to or upon the Trustee in respect of the
Certificates of the related Series and this Agreement may be served.

     Section 8.12. Representations and Warranties of Trustee. The Trustee
represents and warrants that:

               (i) the Trustee is duly organized, validly existing and in good
     standing under the laws of its jurisdiction of incorporation or
     association;

               (ii) neither the execution nor the delivery by the Trustee of
     this Agreement, nor the consummation by it of the transactions
     contemplated hereby nor compliance by it with any of the terms or
     provisions hereof will violate its charter documents or by-laws.

               (iii) the Trustee has full power, authority and right to
     execute, deliver and perform its duties and obligations as set forth
     herein and in each Series Supplement to which it is a party and has taken
     all necessary action to authorize the execution, delivery and performance
     by it of this Agreement; and

               (iv) this Agreement has been duly executed and delivered by the
     Trustee and constitutes the legal, valid and binding obligation of the
     Trustee, enforceable in accordance with its terms, except as enforcement
     may be limited by the applicable bankruptcy, insolvency, reorganization,
     moratorium or similar laws affecting the rights of

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     creditors generally and general principles of equity (regardless of
     whether such enforceability is considered in a proceeding in equity or at
     law).

     Section 8.13. Trustee to Act Only in Accordance With This Agreement or
Pursuant to Instructions of Certificateholders. The Trustee shall only take
such action or shall refrain from taking such action under this Agreement as
directed pursuant to a specific provision of this Agreement or, if required
hereunder, by all the Certificateholders, and the Trustee shall not otherwise
act in respect of the Trust; provided, however, that the Trustee shall not be
required to take any such action if it reasonably determines, or receives, at
the expense of the Certificateholders, an Opinion of Counsel (with copies
thereof delivered to the Certificateholders and the Trustor), that such action
(i) is inconsistent with the purpose of the Trust set forth in Section 2.7 or
contrary to the terms hereof.

     Section 8.14. Accounting and Reports to Certificateholders, Internal
Revenue Service and Others. The Trustee shall (a) maintain the books of the
Trust on a calendar year basis on the accrual method of accounting, (b) after
the close of each calendar year, deliver to each Certificateholder, as may be
required by the Code and applicable Treasury Regulations or otherwise, such
information for such year as may be required to enable each Certificateholder
to prepare its federal income tax returns, (c) as specifically directed in
writing by the Trustor, file such tax returns relating to the Trust and make
such elections as may from time to time be required or appropriate under any
applicable state or federal statute or rule or regulation thereunder so as to
maintain the Trust's characterization as other than an association or publicly
traded partnership taxable as a corporation for federal income tax purposes,
(d) cause such tax returns to be signed in the manner required by law and (e)
collect or cause to be collected any withholding tax as described in and in
accordance with Subsection 4.4 with respect to income or distributions to
Certificateholders.

     Section 8.15. Signature on Returns. Except as required by law, the
Trustee shall sign on behalf of the Trust any and all tax returns of the Trust
presented to it by the Trustor in final execution form.

                                  ARTICLE IX

                                  TERMINATION

     Section 9.1. Termination upon Purchase or Liquidation of All Underlying
Securities. (a) The respective obligations and responsibilities under this
Agreement of the Trustor, the Administrative Agent, if any, and the Trustee
(other than the obligations of any such Administrative Agent to provide for
and the Trustee to make distributions to Holders of the Certificates of any
given Series as hereafter set forth) shall terminate upon the distribution to
such Holders of all amounts held in all the Accounts for such Series or by an
Administrative Agent, if any, and required to be paid to such Holders pursuant
to this Agreement on the Distribution Date coinciding with or following the
earlier to occur of (i) if and as provided in the Series Supplement for such
Series, the purchase by, and at the sole option of, the Administrative Agent,
if any, as provided in the Series Supplement for such Series, of all remaining
Underlying Securities for such Series in the Trust for such Series on any
Distribution Date, provided that such option may be exercised only if the
aggregate principal amount of such Underlying

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Securities at the time of any such purchase is less than 10% (or such other
percentage as may be specified in such Series Supplement) of the aggregate
principal amount of all Underlying Securities deposited in such Trust as of
the applicable Cut-off Date and (ii) the final payment on or other liquidation
(which may include redemption or other purchase thereof by the applicable
Underlying Securities Issuer) (or any Advance with respect thereto) of the
last Underlying Security remaining in the Trust for such Series or the
disposition of all property acquired upon foreclosure or liquidation of any
such Underlying Security; provided, however, that 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.

          (b) The Administrative Agent shall exercise its option to purchase
all the Underlying Securities remaining in the Trust pursuant to clause (i) of
Section 9.1(a) not later than 91 days prior to the anticipated date of
purchase of all such Underlying Securities, at a price as may be specified in
the applicable Series Supplement; provided, however, that such price shall not
be less than the then outstanding aggregate principal amount of such
Underlying Securities as determined on the date of purchase. The proceeds of
such purchase will be deposited into the Certificate Account and applied in
the same manner and priority that collections on Underlying Securities would
be applied as provided in the applicable Series Supplement.

          (c) Written notice of any termination shall be provided as set forth
in Section 10.5.

          (d) Upon presentation and surrender of the Certificates by the
Certificateholders on the Final Scheduled Distribution Date, or the
Distribution Date coinciding with or next following the earlier to occur of
the occurrences specified in clauses (i) and (ii) of Section 9.1(a), with
respect to the applicable Series of Certificates, the Trustee shall distribute
to each Holder presenting and surrendering its Certificates (i) the amount
otherwise distributable on such Distribution Date in accordance with Section
4.1 in respect of the Certificates so presented and surrendered, if not in
connection with the purchase by an Administrative Agent or the Trustor of all
the Underlying Securities or (ii) as specified in the applicable Series
Supplement, if in connection with an Administrative Agent's purchase of all
the remaining Underlying Securities. Any funds not distributed on such
Distribution Date shall be set aside and held in trust for the benefit of
Certificateholders not presenting and surrendering their Certificates in the
aforesaid manner, and shall be disposed of in accordance with this Section 9.1
and Section 4.1 hereof. Immediately following the deposit of funds in trust
hereunder, the Trust for such Series shall terminate.

                                  ARTICLE X

                           MISCELLANEOUS PROVISIONS

     Section 10.1. Amendment. (a) This Agreement may be amended from time to
time by the Trustor and the Trustee without notice to or the consent of any of
the Certificateholders for any of the following purposes: (i) to cure any
ambiguity or to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein; (ii) to add or
supplement any Credit Support for the benefit of any Certificateholders
(provided that if

                                      69
<PAGE>

any such addition affects any series or class of Certificateholders
differently that any other series or class of Certificateholders, then such
addition will not, as evidenced by an opinion of counsel, have a material
adverse effect on the interests of any affected series or class of
Certificateholders); (iii) to add to the covenants, restrictions or
obligations of the Trustor, the Administrative Agent, if any, or the Trustee
for the benefit of the Certificateholders; (iv) to add, change or eliminate
any other provisions with respect to matters or questions arising under this
Agreement, so long as (x) any such amendment described in (i) through (iv)
will not, as evidenced by an opinion of counsel, cause the Trust (unless
otherwise specified in a related Series Supplement) to be taxable as a
corporation for federal income tax purposes or result in a sale or exchange of
any Certificate for tax purposes and (y) the Trustee has received written
confirmation from each Rating Agency rating such Certificates that such
amendment will not cause such Rating Agency rating such Certificates to reduce
or withdraw the then current rating thereof; (v) to comply with any
requirements imposed by the Code or Treasury Regulations; (vi) to evidence and
provide for the acceptance of appointment hereunder of a Trustee other than
The Bank of New York, as Trustee for a Series of Certificates, and to add to
or change any of the provisions of this Agreement as shall be necessary to
provide for or facilitate the administration of the separate Trusts hereunder
by more than one Trustee, pursuant to the requirements of Section 5.1 hereof;
(vii) to evidence and provide for the acceptance of appointment hereunder by a
successor Trustee with respect to the Certificates of one or more Series or to
add or change any of the provisions of this Agreement as shall be necessary to
provide for or facilitate the administration of the trusts hereunder; or
(viii) to provide for the issuance of a new Series of Certificates pursuant to
a Series Supplement issued hereunder pursuant to Sections 5.1 and 5.13 hereof.

          (b) Without limiting the generality of the foregoing, with respect
to any Series this Agreement may also be modified or amended from time to time
by the Trustor and the Trustee with the consent of the Holders of Certificates
representing the Required Percentage-Amendment of the aggregate Voting Rights
of those Certificates to which such modification or amendment relates 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 (i) no such
amendment shall reduce in any manner the amount of, or defer the timing of,
payments received on Underlying Securities which are required to be
distributed on any Certificate without the unanimous consent of the Holders of
such Certificates, and (ii) this Section 10.1(b) shall not be amended without
the unanimous consent of the Holders of all the Certificates of such Series;
and provided further that the Trustor shall furnish to the Trustee an Opinion
of Counsel (unless otherwise indicated in a related Series Supplement) stating
that, in the opinion of such counsel, any such amendment would not cause the
Trust to be taxed as a corporation for federal income tax purposes.
Notwithstanding any other provision of this Agreement, for purposes of the
giving or withholding of consents pursuant to this Section 10.1, Certificates
registered in the name of the Trustor, or any Affiliate thereof, shall be
entitled to Voting Rights with respect to matters affecting such Certificates;
and provided further that in the event the Rating Agency Condition is not
satisfied with respect to such modification or amendment, the Required
Percentage-Amendment shall be increased to require an aggregate percentage of
the aggregate Voting Rights in the amount specified in the applicable Series
Supplement.

                                      70
<PAGE>

          (c) Promptly after the execution of any such amendment or
modification, the Trustee shall furnish a copy of such amendment or
modification to each Certificateholder of the affected Series or Class and to
the Rating Agency. It shall not be necessary for the consent of
Certificate-holders under this Section 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 Certificateholders shall be
subject to such reasonable regulations as the Trustee may prescribe.

     Section 10.2. Counterparts. 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 constitute but one and the same
instrument.

     Section 10.3. Limitation on Rights of Certificateholders. (a) The death
or incapacity of any Certificateholder shall not operate to terminate this
Agreement or the Trust, nor 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 applicable Trust,
nor otherwise affect the rights, obligations and liabilities of the parties
hereto or any of then.

          (b) No Certificateholder of a given Series shall have any right to
vote (except as expressly provided for herein) or in any manner otherwise
control the operation and management of any 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.

          (c) No Certificateholder of a given Series 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 (i) such Holder previously shall have given to the Trustee a
written notice of breach and of the continuance thereof and unless also the
Holders of Certificates of such Series evidencing not less than the Required
Percentage-Remedies of the aggregate Voting Rights of such Series 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 agreed that the Trustee shall not be
obligated to make any investigation of matters arising under this Agreement or
to institute, conduct or defend any litigation hereunder or in relation hereto
at the request, order or direction of any Certificateholders unless such
Certificateholders have offered to the Trustee the reasonable indemnity
referred to above. It is further understood and agreed, and expressly
covenanted by each Certificateholder of each Series with every other
Certificateholder of such Series and the Trustee, that no one or more Holders
of Certificates of such Series 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 the Certificates of such Series, or to
obtain or seek to obtain priority over or preference to any other such Holder,
or to enforce any right under this

                                      71
<PAGE>

Agreement, except in the manner herein provided and for the equal, ratable and
common benefit of all Certificateholders of such Series. 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 10.4. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
agreements made and to be performed entirely therein without reference to such
State's principles of conflicts of law to the extent that the application of
the laws of another jurisdiction would be required thereby, and the
obligations, rights and remedies of the parties hereunder shall be determined
in accordance with such laws.

     Section 10.5. Notices. All directions, demands and notices hereunder
shall be in writing and shall be delivered as set forth in the applicable
Series Supplement. Any notice required to be provided to a Holder of a
Certificate shall be given by first class mail, postage prepaid, at the last
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 when mailed, whether or not the
Certificateholder receives such notice.

     Section 10.6. 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.

     Section 10.7. Notice to Rating Agency. The Trustee shall use its best
efforts promptly to provide notice to the Rating Agency with respect to each
of the following of which it has actual knowledge:

               (i) any change or amendment to this Agreement;

               (ii) the occurrence of any Administrative Agent Termination
     Event;

               (iii) the resignation or termination of an Administrative
     Agent, if any, or the Trustee;

               (iv) the appointment of a successor Trustee;

               (v) the repurchase or substitution of Underlying Securities, if
     any, pursuant to Section 2.3;

               (vi) the final payment to Holders of the Certificates of any
     Class;

               (vii) any change in the location of the Certificate Account;
     and

               (viii) any event that would result in the inability of the
     Trustee to make Advances.

                                      72
<PAGE>

In addition, the Trustee shall promptly furnish to each Rating Agency copies
of each report to Certificateholders described in Section 4.2 and the
Administrative Agent, if any, or otherwise the Trustee shall promptly furnish
to each Rating Agency copies of the following:

               (i) each annual statement as to compliance described in Section
     3.15; and

               (ii) each annual independent public accountants' servicing
     report described in Section 3.16.

     Any such notice pursuant to this Section 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 each Rating
Agency at the address specified in the applicable Series Supplement.

     Section 10.8. Grant of Security Interest. It is the express intent of the
parties hereto that each conveyance of any Underlying Securities by the
Trustor to the Trustee be, and be construed as, a sale of the Underlying
Securities by the Trustor and not a pledge of or grant of a security interest
in any Underlying Securities by the Trustor to secure a debt or other
obligation of the Trustor. However, in the event that, notwithstanding the
aforementioned intent of the parties, any Underlying Securities are held to be
property of the Trustor, then, (a) it is the express intent of the parties
that such conveyance be a pledge of or grant of a security interest in such
Underlying Securities by the Trustor to the Trustee to secure a debt or other
obligation of the Trustor and (b)(1) this Agreement shall also be a security
agreement within the meaning of Articles 8 and 9 of the Uniform Commercial
Code as in effect from time to time in the State of New York, or such other
State as may be specified in the related Series Supplement; (2) the conveyance
provided for in Section 2.1 hereof shall be a grant by the Trustor to the
Trustee of a security interest in all the Trustor's right, title and interest
in and to such Underlying Securities and all amounts payable to the holders of
such Underlying Securities in accordance with the terms thereof and all
proceeds of the conversion, voluntary or involuntary, of the foregoing into
cash, instruments, securities or other property, including all amounts from
time to time held or invested in the applicable Certificate Account, whether
in the form of cash, instruments, securities or other property; (3) the
obligations secured by such security agreement shall be all the Trustor's
obligations under this Agreement, including the obligation to provide to the
Certificateholders the benefits of this Agreement relating to such Underlying
Securities and the applicable Trust; and (4) notifications to persons holding
such property, and acknowledgements, receipts or confirmations from persons
holding such property, shall be deemed notifications to, or acknowledgements,
receipts or confirmations from, financial intermediaries, bailees or agents
(as applicable) of the Trustee for the purpose of perfecting such security
interest under applicable law. The Trustor shall direct the Trustee to the
extent consistent with this Agreement, take such actions as may be necessary
to ensure that, if this Agreement were deemed to create a security interest in
the Underlying Securities, such security interest would be deemed to be a
perfected security interest of first priority under applicable law and will be
maintained as such for so long as any of the Underlying Securities remain
outstanding. Without limiting the generality of the foregoing, the Trustee,
upon receipt of such direction, shall file, or shall cause to be filed, all
filings identified by the Trustor to be necessary to maintain the
effectiveness of any original filings identified by the Trustor to be
necessary under the Uniform Commercial Code as in effect

                                      73
<PAGE>

in any jurisdiction to perfect the Trustee's security interest in or lien on
the Underlying Securities, including (x) continuation statements and (y) such
other statements as may be occasioned by (1) any change of name of the Trustor
or the Trustee, (2) any change of location of the place of business, the chief
executive office, or jurisdiction of organization of the Trustor or (3) any
transfer of any interest of the Trustor in any Underlying Security.

     Section 10.9. Nonpetition Covenant. Notwithstanding any prior termination
of this Agreement, each of the Trustee (including any Co-Trustee) the
Administrative Agent, if any, (including any Sub-Administrative Agent,
Authenticating Agent, Calculation Agent, or Paying Agent) and the Trustor
agrees that it shall not, until the date which is one year and one day after
the earlier of a Trust Termination Event or the Final Scheduled Distribution
Date, acquiesce, petition or otherwise invoke or cause the Trust to invoke the
process of the United States of America, any State or other political
subdivision thereof or any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government for the
purpose of commencing or sustaining a case by or against the Trust under a
federal or state bankruptcy, insolvency or similar law or appointing a
receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Trust or all or any part of the property or assets of
the Trust or ordering the winding up or liquidation of the affairs of the
Trust.

     Section 10.10. No Recourse. Provided that there exists no default on the
Underlying Securities, neither the Trustee (including any Co-Trustee), the
Administrative Agent, if any (including any Sub-Administrative Agent,
Authenticating Agent, Calculation Agent, or Paying Agent) nor the Trustor
shall have any recourse to the Underlying Securities, except as specifically
provided in the related Series Supplement.

     Section 10.11. 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 10.12. Conflict with Trust Indenture Act. (a) If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this Agreement by any of the provisions of the TIA,
such required provision shall control.

          (b) The provisions of TIA Sections 310 through 317 that impose
duties on any Person (including the provisions automatically deemed included
herein unless expressly excluded by this Agreement) are a part of and govern
this Agreement, whether or not physically contained herein.

                                      74
<PAGE>

     IN WITNESS WHEREOF, the Trustor and the Trustee have caused their names
to be signed hereto by their respective officers thereunto duly authorized, in
each case as of the day and year first above written.

                                       SYNTHETIC FIXED-INCOME SECURITIES,
                                         INC., as Trustor

                                       By: /s/ Jeremy Swinson
                                          --------------------------------------
                                          Authorized Signatory

                                       THE BANK OF NEW YORK, as Trustee

                                       By: /s/ Kevin Pennant
                                          --------------------------------------
                                          Authorized Signatory

                                      75==============================================================================

                                 CWABS, INC.,
                                   Depositor

                         COUNTRYWIDE HOME LOANS, INC.,
                                    Seller

                               PARK MONACO INC.,
                                    Seller

                               PARK SIENNA LLC,
                                    Seller

                     COUNTRYWIDE HOME LOANS SERVICING LP,
                                Master Servicer

                             THE BANK OF NEW YORK,
                                    Trustee

                                      and

                  THE BANK OF NEW YORK TRUST COMPANY, N.A.,
                                  Co-Trustee

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

                        POOLING AND SERVICING AGREEMENT

                         Dated as of February 1, 2006

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

                   ASSET-BACKED CERTIFICATES, SERIES 2006-3

<PAGE>

<TABLE>
<CAPTION>

                                       Table of Contents
                                       -----------------

                                                                                          Page
                                                                                          ----

                                           ARTICLE I.
                                          DEFINITIONS

<S>                                                                                        <C>
Section 1.01   Defined Terms.................................................................9
Section 1.02   Certain Interpretive Provisions..............................................54

                                          ARTICLE II.
                  CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES

Section 2.01   Conveyance of Mortgage Loans.................................................54
Section 2.02   Acceptance by Trustee of the Mortgage Loans..................................62
Section 2.03   Representations, Warranties and Covenants of the Master Servicer and
               the Sellers..................................................................68
Section 2.04   Representations and Warranties of the Depositor..............................86
Section 2.05   Delivery of Opinion of Counsel in Connection with Substitutions and
               Repurchases..................................................................88
Section 2.06   Authentication and Delivery of Certificates..................................88
Section 2.07   Covenants of the Master Servicer.............................................89

                                          ARTICLE III.
                         ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

Section 3.01   Master Servicer to Service Mortgage Loans....................................89
Section 3.02   Subservicing; Enforcement of the Obligations of Master Servicer..............91
Section 3.03   Rights of the Depositor, the Sellers, the Certificateholders, the NIM
               Insurer and the Trustee in Respect of the Master Servicer....................92
Section 3.04   Trustee to Act as Master Servicer............................................93
Section 3.05   Collection of Mortgage Loan Payments; Certificate Account; Distribution
               Account; Pre-Funding Account; Seller Shortfall Interest Requirement..........93
Section 3.06   Collection of Taxes, Assessments and Similar Items; Escrow Accounts..........97
Section 3.07   Access to Certain Documentation and Information Regarding the Mortgage
               Loans........................................................................97
Section 3.08   Permitted Withdrawals from the Certificate Account, Distribution
               Account, Carryover Reserve Fund and the Principal Reserve Fund...............98
Section 3.09   [Reserved]..................................................................101
Section 3.10   Maintenance of Hazard Insurance.............................................101
Section 3.11   Enforcement of Due-On-Sale Clauses; Assumption Agreements...................101
Section 3.12   Realization Upon Defaulted Mortgage Loans; Determination of Excess
               Proceeds and Realized Losses; Repurchase of Certain Mortgage Loans..........103
Section 3.13   Co-Trustee to Cooperate; Release of Mortgage Files..........................106
Section 3.14   Documents, Records and Funds in Possession of Master Servicer to be
               Held for the Trustee........................................................107
Section 3.15   Servicing Compensation......................................................108

                                               i
<PAGE>

Section 3.16   Access to Certain Documentation.............................................108
Section 3.17   Annual Statement as to Compliance...........................................108
Section 3.18   [Reserved]..................................................................109
Section 3.19   [Reserved]..................................................................109
Section 3.20   Prepayment Charges..........................................................109
Section 3.21   Swap Contract...............................................................110

                                          ARTICLE IV.
                       DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER

Section 4.01   Advances; Remittance Reports................................................112
Section 4.02   Reduction of Servicing Compensation in Connection with Prepayment
               Interest Shortfalls.........................................................114
Section 4.03   [Reserved]..................................................................114
Section 4.04   Distributions...............................................................114
Section 4.05   Monthly Statements to Certificateholders....................................121
Section 4.06   Termination of the Mortgage Insurance Policy................................123
Section 4.07   Carryover Reserve Fund......................................................123
Section 4.08   Credit Comeback Excess Account..............................................124
Section 4.09   Swap Trust and Swap Account.................................................124

                                           ARTICLE V.
                                        THE CERTIFICATES

Section 5.01   The Certificates............................................................126
Section 5.02   Certificate Register; Registration of Transfer and Exchange of
               Certificates................................................................127
Section 5.03   Mutilated, Destroyed, Lost or Stolen Certificates...........................131
Section 5.04   Persons Deemed Owners.......................................................131
Section 5.05   Access to List of Certificateholders' Names and Addresses...................132
Section 5.06   Book-Entry Certificates.....................................................132
Section 5.07   Notices to Depository.......................................................133
Section 5.08   Definitive Certificates.....................................................133
Section 5.09   Maintenance of Office or Agency.............................................134

                                          ARTICLE VI.
                       THE DEPOSITOR, THE MASTER SERVICER AND THE SELLERS

Section 6.01   Respective Liabilities of the Depositor, the Master Servicer and the
               Sellers.....................................................................134
Section 6.02   Merger or Consolidation of the Depositor, the Master Servicer or the
               Sellers.....................................................................134
Section 6.03   Limitation on Liability of the Depositor, the Sellers, the Master
               Servicer, the NIM Insurer and Others........................................135
Section 6.04   Limitation on Resignation of Master Servicer................................135
Section 6.05   Errors and Omissions Insurance; Fidelity Bonds..............................136

                                              ii
<PAGE>

                                          ARTICLE VII.
                            DEFAULT; TERMINATION OF MASTER SERVICER

Section 7.01   Events of Default...........................................................136
Section 7.02   Trustee to Act; Appointment of Successor....................................138
Section 7.03   Notification to Certificateholders..........................................140

                                         ARTICLE VIII.
                           CONCERNING THE TRUSTEE AND THE CO-TRUSTEE

Section 8.01   Duties of Trustee...........................................................140
Section 8.02   Certain Matters Affecting the Trustee.......................................142
Section 8.03   Trustee Not Liable for Mortgage Loans.......................................143
Section 8.04   Trustee May Own Certificates................................................143
Section 8.05   Master Servicer to Pay Trustee's Fees and Expenses..........................144
Section 8.06   Eligibility Requirements for Trustee........................................144
Section 8.07   Resignation and Removal of Trustee..........................................145
Section 8.08   Successor Trustee...........................................................146
Section 8.09   Merger or Consolidation of Trustee..........................................146
Section 8.10   Appointment of Co-Trustee or Separate Trustee...............................147
Section 8.11   Tax Matters.................................................................148
Section 8.12   Co-Trustee..................................................................151
Section 8.13   Access to Records of the Trustee............................................154
Section 8.14   Suits for Enforcement.......................................................154

                                          ARTICLE IX.
                                          TERMINATION

Section 9.01   Termination upon Liquidation or Repurchase of all Mortgage Loans............154
Section 9.02   Final Distribution on the Certificates......................................155
Section 9.03   Additional Termination Requirements.........................................156

                                           ARTICLE X.
                                    MISCELLANEOUS PROVISIONS

Section 10.01  Amendment...................................................................157
Section 10.02  Recordation of Agreement; Counterparts......................................159
Section 10.03  Governing Law...............................................................159
Section 10.04  Intention of Parties........................................................160
Section 10.05  Notices.....................................................................161
Section 10.06  Severability of Provisions..................................................162
Section 10.07  Assignment..................................................................163
Section 10.08  Limitation on Rights of Certificateholders..................................163
Section 10.09  Inspection and Audit Rights.................................................164
Section 10.10  Certificates Nonassessable and Fully Paid...................................164
Section 10.11  Rights of NIM Insurer.......................................................164

                                              iii
<PAGE>

                                          ARTICLE XI.
                                     EXCHANGE ACT REPORTING

Section 11.01  Filing Obligations..........................................................165
Section 11.02  Form 10-D Filings...........................................................165
Section 11.03  Form 8-K Filings............................................................166
Section 11.04  Form 10-K Filings...........................................................167
Section 11.05  Sarbanes-Oxley Certification................................................167
Section 11.06  Form 15 Filing..............................................................168
Section 11.07  Report on Assessment of Compliance and Attestation..........................168
Section 11.08  Use of Subservicers and Subcontractors......................................170
Section 11.09  Amendments..................................................................171

<CAPTION>
Exhibits
--------

<S>                          <C>
EXHIBIT A                    Forms of Certificates
    EXHIBIT A-1              Form of Class 1-A Certificate
    EXHIBIT A-2              Form of Class 2-A-1 Certificate
    EXHIBIT A-3              Form of Class 2-A-2 Certificate
    EXHIBIT A-4              Form of Class 2-A-3 Certificate
    EXHIBIT A-5              Form of Class 3-A-1 Certificate
    EXHIBIT A-6              Form of Class 3-A-2 Certificate
    EXHIBIT A-7              Form of Class M-1 Certificate
    EXHIBIT A-8              Form of Class M-2 Certificate
    EXHIBIT A-9              Form of Class M-3 Certificate
    EXHIBIT A-10             Form of Class M-4 Certificate
    EXHIBIT A-11             Form of Class M-5 Certificate
    EXHIBIT A-12             Form of Class M-6 Certificate
    EXHIBIT A-13             Form of Class M-7 Certificate
    EXHIBIT A-14             Form of Class M-8 Certificate
    EXHIBIT A-15             Form of Class B Certificate
EXHIBIT B                    Form of Class P Certificate
EXHIBIT C                    Form of Class C Certificate
EXHIBIT D                    Form of Class A-R Certificate
EXHIBIT E                    Form of Tax Matters Person Certificate
EXHIBIT F                    Mortgage Loan Schedule
    EXHIBIT F-1              List of Mortgage Loans
    EXHIBIT F-2              Mortgage Loans for which All or a Portion
                                 of a Related Mortgage File is not Delivered
                                 to the Trustee on or prior to the Closing
                                 Date
EXHIBIT G                    Forms of Certification of Trustee
    EXHIBIT G-1              Form of Initial Certification of Trustee (Initial Mortgage Loans)
    EXHIBIT G-2              Form of Interim Certification of Trustee
    EXHIBIT G-3              Form of Delay Delivery Certification
    EXHIBIT G-4              Form of Initial Certification of Trustee (Subsequent Mortgage Loans)
EXHIBIT H                    Form of Final Certification of Trustee

                                              iv
<PAGE>

EXHIBIT I                    Transfer Affidavit for Class A-R Certificates
EXHIBIT J-1                  Form of Transferor Certificate for Class A-R Certificates
EXHIBIT J-2                  Form of Transferor Certificate for Private Certificates
EXHIBIT K                    Form of Investment Letter (Non-Rule 144A)
EXHIBIT L                    Form of Rule 144A Letter
EXHIBIT M                    Form of Request for Document Release
EXHIBIT N                    Form of Request for File Release
EXHIBIT O                    Copy of Depository Agreement
EXHIBIT P                    Form of Subsequent Transfer Agreement
EXHIBIT Q                    [Reserved]
EXHIBIT R                    [Reserved]
EXHIBIT S-1                  [Reserved]
EXHIBIT S-2                  [Reserved]
EXHIBIT T                    Officer's Certificate with respect to Prepayments
EXHIBIT U                    Form of Swap Contract
EXHIBIT V-1                  Form of Swap Contract Assignment Agreement
EXHIBIT V-2                  Form of Swap Contract Administration Agreement
EXHIBIT V-3                  Form of Swap Guarantee
EXHIBIT W                    Form of Monthly Statement
EXHIBIT X-1                  Form of Performance Certification (Subservicer)
EXHIBIT X-2                  Form of Performance Certification (Trustee)
EXHIBIT Y                    Form of Servicing Criteria to be Addressed in Assessment of
                             Compliance Statement
EXHIBIT Z                    List of Item 1119 Parties
EXHIBIT AA                   Form of Sarbanes-Oxley Certification (Replacement Master
                             Servicer)
SCHEDULE I                   Prepayment Charge Schedule and Prepayment Charge Summary
SCHEDULE II                  Collateral Schedule

                                               v
</TABLE>
<PAGE>

            POOLING AND SERVICING AGREEMENT, dated as of February 1, 2006, by
and among CWABS, INC., a Delaware corporation, as depositor (the "Depositor"),
COUNTRYWIDE HOME LOANS, INC., a New York corporation, as seller ("CHL" or a
"Seller"), PARK MONACO INC., a Delaware corporation, as a seller ("Park
Monaco" or a "Seller"), PARK SIENNA LLC, a Delaware limited liability company,
as a seller ("Park Sienna" or a "Seller", and together with CHL and Park
Monaco, the "Sellers"), COUNTRYWIDE HOME LOANS SERVICING LP, a Texas limited
partnership, as master servicer (the "Master Servicer"), THE BANK OF NEW YORK,
a New York banking corporation, as trustee (the "Trustee"), and THE BANK OF
NEW YORK TRUST COMPANY, N.A., a national banking association, as co-trustee
(the "Co-Trustee").

                             PRELIMINARY STATEMENT

            The Depositor is the owner of the Trust Fund that is hereby
conveyed to the Trustee in return for the Certificates. The Trust Fund
(excluding the Credit Comeback Excess Account, the Carryover Reserve Fund and
the assets held in the Pre-Funding Account) for federal income tax purposes
will consist of four REMICs ("REMIC 1," "REMIC 2," "REMIC 3" and the "Master
REMIC"). Each Certificate, other than the Class A-R Certificate, will
represent ownership of one or more regular interests in the Master REMIC for
purposes of the REMIC Provisions. The Class A-R Certificate represents
ownership of the sole class of residual interest in REMIC 1, REMIC 2, REMIC 3
and the Master REMIC. The Master REMIC will hold as assets the several classes
of uncertificated REMIC 3 Interests (other than the R-3-R Interest). Each
REMIC 3 Interest (other than the R-3-R Interest) is hereby designated as a
regular interest in REMIC 3. REMIC 3 will hold as assets the several classes
of REMIC 2 Interests (other than the R-2-R Interest). Each REMIC 2 Interest
(other than the R-2-R Interest) is hereby designated as a regular interest in
REMIC 2. REMIC 2 will hold as assets the several classes of REMIC 1 Interests
(other than the R-1-R Interest). Each REMIC 1 Interest (other than the R-1-R
Interest) is hereby designated as a regular interest in REMIC 1. REMIC 1 will
hold as assets all property of the Trust Fund (excluding the Credit Comeback
Excess Account, the Carryover Reserve Fund and the assets held in the
Pre-Funding Account). The latest possible maturity date of all REMIC regular
interests created in this Agreement shall be the Latest Possible Maturity
Date.

            None of the REMICs described herein shall hold any interest in the
Swap Trust, Swap Contract or Swap Account.

      REMIC 1:

            The REMIC 1 Interests will have the principal balances,
pass-through rates and Corresponding Loan Groups as set forth below.

                                      Initial      Pass-Through   Corresponding
REMIC 1 Interests                      Balance         Rate       Loan Group(s)
--------------------------------- --------------- -------------  --------------
R-1-1-I.......................          (1)             (5)             1
R-1-1-S.......................          (2)             (6)             1
R-1-2-I.......................          (1)             (5)             2
R-1-2-S.......................          (2)             (6)             2
R-1-3-I.......................          (1)             (5)             3

<PAGE>

R-1-3-S.......................          (2)             (6)             3
R-1-X.........................          (3)             (7)          1 and 2
R-1-P                                 $100.00           (8)            N/A
R-1-R.........................          (4)             (4)            N/A

---------

(1)   The principal balance of each REMIC 1 Interest having an "I" designation
      is the principal balance of all the Initial Mortgage Loans in the
      Corresponding Loan Group.

(2)   The principal balance of each REMIC 1 Interest having an "S" designation
      is the principal balance of all the Subsequent Mortgage Loans in the
      Corresponding Loan Group.

(3)   This REMIC 1 Interest pays no principal.

(4)   The R-1-R Interest is the sole class of residual interest in REMIC 1. It
      has no principal balance and pays no principal or interest.

(5)   The interest rate for this REMIC 1 Interest with respect to any
      Distribution Date (and the related Accrual Period) through the
      Distribution Date in May 2006 is a per annum rate equal to the weighted
      average of the Adjusted Net Mortgage Rates of the Initial Mortgage Loans
      in the Corresponding Loan Group. For any Distribution Date (and the
      related Accrual Period) following the Distribution Date in May 2006, the
      interest rate for this REMIC 1 Interest is a per annum rate equal to the
      weighted average of the Adjusted Net Mortgage Rates of all the Mortgage
      Loans in the Corresponding Loan Group.

(6)   The interest rate for this REMIC 1 Interest with respect to any
      Distribution Date (and the related Accrual Period) through the
      Distribution Date in May 2006 is a per annum rate equal to 0.00%. For
      any Distribution Date (and the related Accrual Period) following the
      Distribution Date in May 2006, the interest rate for this REMIC 1
      Interest is a per annum rate equal to the weighted average of the
      Adjusted Net Mortgage Rates of all the Mortgage Loans in the
      Corresponding Loan Group.

(7)   For any Distribution Date (and the related Accrual Period) through the
      Distribution Date in May 2006, this REMIC 1 Interest is entitled to all
      the interest payable with respect to the Subsequent Mortgage Loans in
      the Corresponding Loan Group (or Groups). For any Distribution Date (and
      the related Accrual Period) following the Distribution Date in May 2006,
      the interest rate for this REMIC 1 Interest is a per annum rate equal to
      0.00%.

(8)   The R-1-P Interest is entitled to all Prepayment Charges collected with
      respect to the Mortgage Loans. It pays no interest.

      On each Distribution Date, the Interest Funds and the Principal
Distribution Amount of the Corresponding Loan Groups shall be distributed with
respect to the REMIC 1 Interests in the following manner:

      (1) Interest. Interest is to be distributed with respect to each REMIC 1
Interest at the rate, or according to the formulas, described above.

                                      2
<PAGE>

      (2) Principal. For any Distribution Date (and the related Accrual
Period) through the Distribution Date in May 2006, the Principal Distribution
Amount with respect to the Initial Mortgage Loans in a Loan Group shall be
allocated to its corresponding "I" REMIC 1 Interests, and the Principal
Distribution Amount with respect to the Subsequent Mortgage Loans in a Loan
Group shall be allocated to its corresponding "S" REMIC 1 Interests. For any
Distribution Date (and the related Accrual Period) after the Distribution Date
in May 2006, the Principal Distribution Amount with respect to all Mortgage
Loans in a Loan Group shall be allocated in proportion to its corresponding
REMIC 1 Interests.

      REMIC 2:

            The REMIC 2 Interests will have the principal balances,
pass-through rates and Corresponding Loan Groups as set forth below.

                                      Initial      Pass-Through   Corresponding
REMIC 2 Interests                     Balance          Rate         Loan Group
--------------------------------- --------------- -------------- --------------
R-2-A-1 (0.9% of SCB Group 1).          (1)             (2)             1
R-2-B-1 (0.1% of SCB Group 1).          (1)             (2)             1
R-2-C-1 (Excess of Group 1)...          (1)             (2)             1
R-2-A-2 (0.9% of SCB Group 2).          (1)             (3)             2
R-2-B-2 (0.1% of SCB Group 2).          (1)             (3)             2
R-2-C-2 (Excess of Group 2)...          (1)             (3)             2
R-2-A-3 (0.9% of SCB Group 3).          (1)             (4)             3
R-2-B-3 (0.1% of SCB Group 3).          (1)             (4)             3
R-2-C-3 (Excess of Group 3)...          (1)             (4)             3
R-2-P.........................          $100            (5)            N/A
R-2-R.........................          (6)             (6)            N/A
R-2-X.........................          (7)             (8)            N/A

---------

(1)   Each REMIC 2 Interest having an "R-2-A-" designation (each, an "R-2-A
      Interest") will have a principal balance initially equal to 0.9% of the
      Subordinate Component Balance ("SCB") of its Corresponding Loan Group.
      Each REMIC 2 Interest having an "R-2-B-" designation (each, an "R-2-B
      Interest") will have a principal balance initially equal to 0.1% of the
      SCB of its Corresponding Loan Group. The initial principal balance of
      each REMIC 2 Interest having an "R-2-C-" designation (each, an "R-2-C
      Interest") will equal the excess of the initial principal balance of its
      Corresponding Loan Group over the initial aggregate principal balances
      of the R-2-A and R-2-B Interests corresponding to such Loan Group.

(2)   A rate equal to the weighted average of the pass-through rates of the
      R-1-1-I and R-1-1-S Interests (the "Loan Group 1 Tax Net Rate Cap").

(3)   A rate equal to the weighted average of the pass-through rates of the
      R-1-2-I and R-1-2-S Interests (the "Loan Group 2 Tax Net Rate Cap").

                                      3
<PAGE>

(4)   A rate equal to the weighted average of the pass-through rates of the
      R-1-3-I and R-1-3-S Interests (the "Loan Group 3 Tax Net Rate Cap").

(5)   The R-2-P Interest is entitled to all amounts payable with respect to
      the R-1-P Interest. It pays no interest.

(6)   The R-2-R Interest is the sole class of residual interest in REMIC 2. It
      has no principal balance and pays no principal or interest.

(7)   This REMIC 2 Interest pays no principal.

(8)   This REMIC 2 Interest is entitled to all amounts payable with respect to
      the R-1-X Interest.

            On each Distribution Date, the Interest Funds and the Principal
Distribution Amounts payable with respect to the REMIC 1 Interests shall be
payable with respect to the REMIC 2 Interests in the following manner:

      (1) Interest. Interest is to be distributed with respect to each REMIC 2
Interest at the rate, or according to the formulas, described above.

      (2) Principal if no Cross-Over Situation Exists. If no Cross-Over
Situation exists with respect to any REMIC 2 Interest, then the Principal
Distribution Amounts payable with respect to each Loan Group will be payable:
first to cause the Loan Group's corresponding R-2-A and R-2-B Interests to
equal, respectively, 0.9% of the SCB and 0.1% of the SCB, and then to the
corresponding R-2-C Interest.

      (3) Principal if a Cross-Over Situation Exists. If a Cross-Over
Situation exists with respect to the R-2-A and R-2-B Interests then:

      (a) if the Calculation Rate in respect of the outstanding R-2-A and
R-2-B Interests is less than the Subordinate Tax Net Rate Cap, Principal
Relocation Payments will be made proportionately to the outstanding R-2-A
Interests prior to any other principal distributions from each such Loan
Group; and

      (b) if the Calculation Rate in respect of the outstanding R-2-A and
R-2-B Interests is greater than the Subordinate Tax Net Rate Cap, Principal
Relocation Payments will be made proportionately to the outstanding R-2-B
Interests prior to any other principal distributions from each such Loan
Group.

      In each case, Principal Relocation Payments will be made so as to cause
the Calculation Rate in respect of the outstanding R-2-A and R-2-B Interests
to equal the Subordinate Tax Net Rate Cap. With respect to each Loan Group, if
(and to the extent that) the sum of (a) the principal payments comprising the
Principal Distribution Amount payable for the related Distribution Date and
(b) the Realized Losses, are insufficient to make the necessary reductions of
principal on the R-2-A and R-2-B Interests, then interest will be added to the
Loan Group's R-2-C Interest.

                                      4
<PAGE>

      (c) Unless required to achieve the Calculation Rate, the outstanding
aggregate R-2-A and R-2-B Interests for all three Loan Groups will not be
reduced below 1 percent of the excess of (i) the aggregate outstanding
principal balances of all three Loan Groups as of the end of any Due Period
(reduced by Principal Prepayments received after the Due Period that are to be
distributed on the Distribution Date related to the Due Period) over (ii) the
Senior Certificates related to all three Loan Groups as of the related
Distribution Date (after taking into account distributions of principal on
such Distribution Date).

      If (and to the extent that) the limitation in paragraph (c) prevents the
distribution of principal to the R-2-A and R-2-B Interests of a Loan Group,
and if the Loan Group's corresponding R-2-C Interest has already been reduced
to zero, then the excess principal from that Loan Group will be paid to the
R-2-C Interest of the other Loan Group(s), the aggregate R-2-A and R-2-B
Interests of which are less than one percent of the Subordinate Component
Balance. If the Loan Group of the corresponding R-2-C Interest that receives
such payment has a Group Tax Net Rate Cap below the Group Tax Net Rate Cap of
the Loan Group making the payment, then the payment will be treated by REMIC 2
as a Realized Loss. Conversely, if the Loan Group of the R-2-C Interest that
receives such payment has a Group Tax Net Rate Cap above the Group Tax Net
Rate Cap of the Loan Group making the payment, then the payment will be
treated by REMIC 2 as a reimbursement for prior Realized Losses.

      REMIC 3:

The REMIC 3 Regular Interests will have the principal balances, pass-through
rates and Corresponding Classes of Certificates as set forth in the following
table:

--------------------------------------------------------------------------------
                                                                 Corresponding
                      Initial Principal     Pass-Through          Class of
 REMIC 3 Interests         Balance               Rate           Certificates
--------------------------------------------------------------------------------
R-3-1-A.............         (1)                 (2)                 1-A
--------------------------------------------------------------------------------
R-3-2-A-1...........         (1)                 (2)                2-A-1
--------------------------------------------------------------------------------
R-3-2-A-2...........         (1)                 (2)                2-A-2
--------------------------------------------------------------------------------
R-3-2-A-3...........         (1)                 (2)                2-A-3
--------------------------------------------------------------------------------
R-3-3-A-1...........         (1)                 (2)                3-A-1
--------------------------------------------------------------------------------
R-3-3-A-2...........         (1)                 (2)                3-A-2
--------------------------------------------------------------------------------
R-3-M-1.............         (1)                 (2)                 M-1
--------------------------------------------------------------------------------
R-3-M-2.............         (1)                 (2)                 M-2
--------------------------------------------------------------------------------
R-3-M-3.............         (1)                 (2)                 M-3
--------------------------------------------------------------------------------
R-3-M-4.............         (1)                 (2)                 M-4
--------------------------------------------------------------------------------
R-3-M-5.............         (1)                 (2)                 M-5
--------------------------------------------------------------------------------
R-3-M-6.............         (1)                 (2)                 M-6
--------------------------------------------------------------------------------
R-3-M-7.............         (1)                 (2)                 M-7
--------------------------------------------------------------------------------
R-3-M-8.............         (1)                 (2)                 M-8
--------------------------------------------------------------------------------
R-3-B...............         (1)                 (2)                  B
--------------------------------------------------------------------------------
R-3-$100............           $100              (3)                 A-R
--------------------------------------------------------------------------------
R-3-C...............         (4)                 (2)                 N/A
--------------------------------------------------------------------------------
R-3-P...............           $100              (5)                  P
--------------------------------------------------------------------------------
R-3-R...............         (6)                 (6)                 N/A
--------------------------------------------------------------------------------

                                      5
<PAGE>

--------------------------------------------------------------------------------
                                                                 Corresponding
                      Initial Principal     Pass-Through          Class of
 REMIC 3 Interests         Balance               Rate           Certificates
--------------------------------------------------------------------------------
R-3-X...............         (7)                 (8)                 N/A
--------------------------------------------------------------------------------

(1) This REMIC 3 Interest has a principal balance that is initially equal to
100% of its Corresponding Certificate Class issued by the Master REMIC.
Principal payments, both scheduled and prepaid, Realized Losses and Subsequent
Recoveries attributable to the REMIC 2 Interests held by REMIC 3 will be
allocated to this class to maintain its size relative to its Corresponding
Certificate Class.

(2) The pass-through rate with respect to any Distribution Date (and the
related Accrual Period) for this REMIC 3 Interest is the weighted average of
the Loan Group 1 Tax Net Rate Cap, the Loan Group 2 Tax Net Rate Cap and the
Loan Group 3 Tax Net Rate Cap (the "Pool Tax Net Rate Cap").

(3) This REMIC 3 Interest pays no interest.

(4) This REMIC 3 Interest has a principal balance that is initially equal to
100% of the Overcollateralization Amount. Principal payments, both scheduled
and prepaid, Realized Losses and Subsequent Recoveries attributable to the
REMIC 2 Interests held by REMIC 3 will be allocated to this class to maintain
its size relative to the Overcollateralization Amount.

(5) The R-3-P Interest is entitled to all amounts payable with respect to the
R-2-P Interest. It pays no interest.

(6) The R-3-R Interest is the sole class of residual interest in REMIC 3. It
has no principal balance and pays no principal or interest.

(7) This REMIC 3 Interest pays no principal.

(8) This REMIC 3 Interest is entitled to all amounts payable with respect to
the R-2-X Interest.

      On each Distribution Date, the Interest Funds and the Principal
Distribution Amount payable with respect to the REMIC 2 Interests shall be
payable with respect to the REMIC 3 Interests in the following manner:

      (1) Interest. Interest is to be distributed with respect to each REMIC 3
Interest at the rate, or according to the formulas, described above.

      (2) Principal. Principal Distribution Amounts shall be allocated among
the REMIC 3 Interests as described above.

                                      6
<PAGE>

            The following table specifies the class designation, interest
rate, and principal amount for each class of Master REMIC Interest:

                                    Original Certificate
Class                                 Principal Balance   Pass-Through Rate
--------------------------------- ----------------------- -----------------
Class 1-A........................    $508,785,000                (1)
Class 2-A-1......................    $254,254,000                (1)
Class 2-A-2......................    $208,354,000                (1)
Class 2-A-3......................    $ 66,782,000                (1)
Class 3-A-1......................    $ 64,603,000                (1)
Class 3-A-2......................    $  6,722,000                (1)
Class M-1........................    $ 51,100,000                (1)
Class M-2........................    $ 46,900,000                (1)
Class M-3........................    $ 28,000,000                (1)
Class M-4........................    $ 24,500,000                (1)
Class M-5........................    $ 25,200,000                (1)
Class M-6........................    $ 22,400,000                (1)
Class M-7........................    $ 21,700,000                (1)
Class M-8........................    $ 18,200,000                (1)
Class B..........................    $ 14,000,000                (1)
Class C..........................             (2)                (3)
Class P..........................            $100                (4)
Class A-R........................            $100                (5)

(1)   The Certificates will accrue interest at the related Pass-Through Rates
      identified in this Agreement. For federal income tax purposes, including
      the computation of the Class C Distributable Amount, the pass-through
      rate in respect of (i) the Class 1-A Certificates will be subject to a
      cap equal to the Loan Group 1 Tax Net Rate Cap, (ii) the Class 2-A
      Certificates will be subject to a cap equal to the Loan Group 2 Tax Net
      Rate Cap, (iii) the Class 3-A Certificates will be subject to a cap
      equal to the Loan Group 3 Tax Net Rate Cap, and (iv) the Subordinate
      Certificates will be subject to a cap equal to the Subordinate Tax Net
      Rate Cap.
(2)   For federal income tax purposes, the Class C Certificates will be
      treated as having a Certificate Principal Balance equal to the
      Overcollateralized Amount.
(3)   For each Interest Accrual Period the Class C Certificates are entitled
      to an amount (the "Class C Distributable Amount") equal to the sum of
      (a) the interest payable on the R-3-X Interest, (b) the interest payable
      on the R-3-C Interest and (c) a specified portion of the interest on the
      REMIC 3 Regular Interests (other than the R-3-$100, R-3-C, R-3-P and
      R-3-X Interests) equal to the excess of the Pool Tax Net Rate Cap over
      the weighted average interest rate of the REMIC 3 Regular Interests
      (other than the R-3-$100, R-3-C, R-3-P and R-3-X Interests) with each
      such Class subject to a cap and a floor equal to the Pass-Through Rate
      of the Corresponding Master REMIC Class. The Pass-Through Rate of the
      Class C Certificates shall be a rate sufficient to entitle it to an
      amount equal to all interest accrued on the REMIC 1 Group 1, Group 2 and
      Group 3"I" and "S" Interests less the interest accrued on the other
      interests issued by the Master REMIC. The Class C Distributable Amount
      for any Distribution Date is payable from current interest on the
      Mortgage Loans and any related Overcollateralization Reduction Amount
      for that Distribution Date.
(4)   For each Distribution Date the Class P Certificates are entitled to all
      Prepayment Charges distributed with respect to the R-3-P Interest.
(5)   The Class A-R Certificates represent the sole class of residual interest
      in each REMIC created hereunder. The Class A-R Certificates are not
      entitled to distributions of interest.

                                      7
<PAGE>

            The foregoing REMIC structure is intended to cause all of the cash
from the Mortgage Loans to flow through to the Master REMIC as cash flow on
REMIC regular interests, without creating any shortfall--actual or potential
(other than for credit losses)-- to any REMIC regular interest. It is not
intended that the Class A-R Certificates be entitled to any cash flows
pursuant to this Agreement except as provided in Section 3.08(a) hereunder.

                                      8
<PAGE>

                                  ARTICLE I.
                                  DEFINITIONS

            Section 1.01. Defined Terms.
                          --------------

            Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the following meanings:

            Accrual Period: With respect to any Distribution Date and each
Class of Interest-Bearing Certificates, the period commencing on the
immediately preceding Distribution Date (or, in the case of the first
Distribution Date, the Closing Date) and ending on the day immediately
preceding such Distribution Date. With respect to any Distribution Date and
the Class C Certificates, the calendar month preceding the month in which such
Distribution Date occurs. All calculations of interest on the Interest-Bearing
Certificates will be made on the basis of the actual number of days elapsed in
the related Accrual Period and on a 360-day year. All calculations of interest
on the Class C Certificates will be made on the basis of a 360-day year
consisting of twelve 30-day months.

            Adjustable Rate Certificates: The Class A and Subordinate
Certificates.

            Adjustable Rate Mortgage Loans: The Mortgage Loans identified in
the Mortgage Loan Schedule as having a Mortgage Rate which is adjustable in
accordance with the terms of the related Mortgage Note.

            Adjusted Net Mortgage Rate: As to each Mortgage Loan, the Mortgage
Rate less the related Expense Fee Rate.

            Adjusted Replacement Upfront Amount: As defined in Section 3.21.

            Adjusted Subordinate Component Balance: With respect to any
Distribution Date and for each Loan Group, (i) the principal balance of the
Mortgage Loans in such Loan Group as of the first day of the related Due
Period (after giving effect to Principal Prepayments received in the
Prepayment Period ending during such Due Period) less (ii) the product of (a)
the Overcollateralized Amount immediately prior to that Distribution Date and
(b)(I) the principal balance of such Loan Group, divided by (II) the sum of
the principal balance of the Mortgage Loans, in each case as of the first day
of the related Due Period, less (iii) the aggregate Certificate Principal
Balance of the related Classes of Senior Certificates immediately prior to
such Distribution Date.

            Adjustment Date: As to each Adjustable Rate Mortgage Loan, each
date on which the related Mortgage Rate is subject to adjustment, as provided
in the related Mortgage Note.

            Advance: The aggregate of the advances required to be made by the
Master Servicer with respect to any Distribution Date pursuant to Section
4.01, the amount of any such advances being equal to the aggregate of payments
of principal of, and interest on the Stated Principal Balance of, the Mortgage
Loans (net of the Servicing Fees) that were due on the related Due Date and
not received by the Master Servicer as of the close of business on the related

                                      9
<PAGE>

Determination Date including an amount equivalent to interest on the Stated
Principal Balance of each Mortgage Loan as to which the related Mortgaged
Property is an REO Property or as to which the related Mortgaged Property has
been liquidated but such Mortgage Loan has not yet become a Liquidated
Mortgage Loan; provided, however, that the net monthly rental income (if any)
from such REO Property deposited in the Certificate Account for such
Distribution Date pursuant to Section 3.12 may be used to offset such Advance
for the related REO Property; provided, further, that for the avoidance of
doubt, no Advances shall be required to be made in respect of any Liquidated
Mortgage Loan.

            Agreement: This Pooling and Servicing Agreement and any and all
amendments or supplements hereto made in accordance with the terms herein.

            Amount Held for Future Distribution: As to any Distribution Date,
the aggregate amount held in the Certificate Account at the close of business
on the immediately preceding Determination Date on account of (i) all
Scheduled Payments or portions thereof received in respect of the Mortgage
Loans due after the related Due Date, (ii) Principal Prepayments received in
respect of such Mortgage Loans after the last day of the related Prepayment
Period and (iii) Liquidation Proceeds and Subsequent Recoveries received in
respect of such Mortgage Loans after the last day of the related Due Period.

            Applied Realized Loss Amount: With respect to any Distribution
Date and any Loan Group or Loan Groups, the amount, if any, by which, the
aggregate Certificate Principal Balance of the Class(es) of Certificates
listed opposite such Loan Group(s) in the following table (after all
distributions of principal on such Distribution Date) exceeds the sum of (x)
the aggregate Stated Principal Balance of the Mortgage Loans in such Loan
Group(s) for such Distribution Date and (y) the amount on deposit in the
Pre-Funding Account in respect of such Loan Group(s); provided, however, that
an Applied Realized Loss Amount will not exist for a single Loan Group with
respect to its corresponding Class A Certificates unless the Certificate
Principal Balances of the Subordinate Certificates have been reduced to zero.

                 Loan Group(s)       Class(es) of Certificates

                   1, 2 and 3             Interest-Bearing
                       1                        1-A
                       2                        2-A
                       3                        3-A

            Appraised Value: The appraised value of the Mortgaged Property
based upon the appraisal made for the originator of the related Mortgage Loan
by an independent fee appraiser at the time of the origination of the related
Mortgage Loan, or the sales price of the Mortgaged Property at the time of
such origination, whichever is less, or with respect to any Mortgage Loan
originated in connection with a refinancing, the appraised value of the
Mortgaged Property based upon the appraisal made at the time of such
refinancing.

            Bankruptcy Code: Title 11 of the United States Code.

                                      10
<PAGE>

            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 5.06). As of the Closing
Date, each Class of Interest-Bearing Certificates constitutes a Class of
Book-Entry Certificates.

            Business Day: Any day other than (i) a Saturday or a Sunday or
(ii) a day on which banking institutions in the State of New York or
California or 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.

            Calculation Rate: For each Distribution Date, the product of (i)
10 and (ii) the weighted average rate of the outstanding R-2-A and R-2-B
Interests, treating each R-2-A Interest as having an interest rate of 0.00%
per annum.

            Carryover Reserve Fund: The separate Eligible Account created and
initially maintained by the Trustee pursuant to Section 4.07 in the name of
the Trustee for the benefit of the Certificateholders and designated "The Bank
of New York in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-3". Funds in the Carryover Reserve Fund shall be
held in trust for the Certificateholders for the uses and purposes set forth
in this Agreement.

            Certificate: Any one of the certificates of any Class executed and
authenticated by the Trustee in substantially the forms attached hereto as
Exhibits A-1 through A-15, Exhibit B, Exhibit C, Exhibit D and Exhibit E.

            Certificate Account: The separate Eligible Account created and
initially maintained by the Master Servicer pursuant to Section 3.05(b) with a
depository institution in the name of the Master Servicer for the benefit of
the Trustee on behalf of the Certificateholders and designated "Countrywide
Home Loans Servicing LP in trust for registered Holders of CWABS, Inc.,
Asset-Backed Certificates, Series 2006-3". Funds in the Certificate Account
shall be held in trust for the Certificateholders for the uses and purposes
set forth in this Agreement.

            Certificate Owner: With respect to a Book-Entry Certificate, the
person that is the beneficial owner of such Book-Entry Certificate.

            Certificate Principal Balance: As to any Certificate (other than
the Class C Certificates) and as of any Distribution Date, the Initial
Certificate Principal Balance of such Certificate (A) less the sum of (i) all
amounts distributed with respect to such Certificate in reduction of the
Certificate Principal Balance thereof on previous Distribution Dates pursuant
to Section 4.04(b) and (ii) any Applied Realized Loss Amounts allocated to
such Certificate on previous Distribution Dates pursuant to Section 4.04(g),
and (B) increased by any Subsequent Recoveries allocated to such Certificate
pursuant to Section 4.04(h) on such Distribution Date. References herein to
the Certificate Principal Balance of a Class of Certificates shall mean the
Certificate Principal Balances of all Certificates in such Class. The Class C
Certificates do not have a Certificate Principal Balance. With respect to any
Certificate (other than the Class C

                                      11
<PAGE>

Certificates) 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: The register maintained pursuant to Section
5.02 hereof.

            Certificateholder or Holder: The person in whose name a
Certificate is registered in the Certificate Register (initially, Cede & Co.,
as nominee for the Depository, in the case of any Class of Book-Entry
Certificates), except that solely for the purpose of giving any consent
pursuant to this Agreement, any Certificate registered in the name of the
Depositor or any affiliate of the Depositor shall be deemed not to be
Outstanding and the Voting Interest evidenced thereby shall not be taken into
account in determining whether the requisite amount of Voting Interests
necessary to effect such consent has been obtained; provided that if any such
Person (including the Depositor) owns 100% of the Voting Interests evidenced
by a Class of Certificates, such Certificates shall be deemed to be
Outstanding for purposes of any provision hereof (other than the second
sentence of Section 10.01 hereof) that requires the consent of the Holders of
Certificates of a particular Class as a condition to the taking of any action
hereunder. The Trustee is entitled to rely conclusively on a certification of
the Depositor or any affiliate of the Depositor in determining which
Certificates are registered in the name of an affiliate of the Depositor.

            Certification Party: As defined in Section 11.05.

            Certifying Person: As defined in Section 11.05.

            CHL: Countrywide Home Loans, Inc., a New York corporation, and its
successors and assigns.

            CHL Mortgage Loans: The Mortgage Loans identified as such on the
Mortgage Loan Schedule for which CHL is the applicable Seller.

            Class: All Certificates bearing the same Class designation as set
forth in Section 5.01 hereof.

            Class 1-A Certificate: Any Certificate designated as a "Class 1-A
Certificate" on the face thereof, in the form of Exhibit A-1 hereto,
representing the right to distributions as set forth herein.

            Class 1-A Net Rate Cap: For any Distribution Date, the weighted
average Adjusted Net Mortgage Rate of the Mortgage Loans in Loan Group 1 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received during the Prepayment Period that ends during such Due
Period), adjusted to an effective rate reflecting the calculation of interest
on the basis of the actual number of days elapsed during the related Accrual
Period and a 360-day year, minus a fraction, expressed as a percentage, the
numerator of which is (a) the product of (x) the sum of (1) the Net Swap
Payment payable to the Swap Counterparty with respect to such Distribution
Date times a fraction, the numerator of which is equal to 360 and the
denominator of which is equal to the actual number of days in the related
Accrual Period and (2) any Swap Termination Payment payable to the Swap
Counterparty for such Distribution Date

                                      12
<PAGE>

(other than a Swap Termination Payment due to a Swap Counterparty Trigger
Event) and (y) a fraction, the numerator of which is the Interest Funds for
Loan Group 1 for such Distribution Date, and the denominator of which is the
Interest Funds for Loan Group 1, Loan Group 2 and Loan Group 3 for such
Distribution Date, and the denominator of which is (b) the sum of the
aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 1 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received during the Prepayment Period that ends during such Due
Period) plus any amounts on deposit in the Pre-Funding Account in respect of
Loan Group 1 as of the first day of that Due Period,

            Class 1-A Principal Distribution Amount: With respect to any
Distribution Date, the product of (x) the Class A Principal Distribution
Target Amount and (y) a fraction, the numerator of which is the Class 1-A
Principal Distribution Target Amount and the denominator of which is the sum
of the Class 1-A Principal Distribution Target Amount, the Class 2-A Principal
Distribution Target Amount and the Class 3-A Principal Distribution Target
Amount.

            Class 1-A Principal Distribution Target Amount: With respect to
any Distribution Date, the excess of (1) the Certificate Principal Balance of
the Class 1-A Certificates immediately prior to such Distribution Date, over
(2) the lesser of (x) 58.50% of the aggregate Stated Principal Balance of the
Mortgage Loans in Loan Group 1 for such Distribution Date and (y) the
aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 1 for
such Distribution Date minus 0.50% of the sum of the aggregate Cut-off Date
Principal Balance of the Initial Mortgage Loans in Loan Group 1 and the
original Group 1 Pre-Funded Amount.

            Class 2-A-1 Certificate: Any Certificate designated as a "Class
2-A-1 Certificate" on the face thereof, in the form of Exhibit A-2 hereto,
representing the right to distributions as set forth herein.

            Class 2-A-2 Certificate: Any Certificate designated as a "Class
2-A-2 Certificate" on the face thereof, in the form of Exhibit A-3 hereto,
representing the right to distributions as set forth herein.

            Class 2-A-3 Certificate: Any Certificate designated as a "Class
2-A-3 Certificate" on the face thereof, in the form of Exhibit A-4 hereto,
representing the right to distributions as set forth herein.

            Class 2-A Certificate: Any Class 2-A-1, Class 2-A-2, or Class
2-A-3 Certificate.

            Class 2-A Net Rate Cap: For any Distribution Date, the weighted
average Adjusted Net Mortgage Rate of the Mortgage Loans in Loan Group 2 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received during the Prepayment Period that ends during such Due
Period), adjusted to an effective rate reflecting the calculation of interest
on the basis of the actual number of days elapsed during the related Accrual
Period and a 360-day year, minus a fraction, expressed as a percentage, the
numerator of which is (a) the product of (x) the sum of (1) the Net Swap
Payment payable to the Swap Counterparty with respect to such Distribution
Date times a fraction, the numerator of which is equal to 360 and the
denominator of which is equal to the actual number of days in the related
Accrual Period and (2) any Swap Termination Payment payable to the Swap
Counterparty for such Distribution Date

                                      13
<PAGE>

(other than a Swap Termination Payment due to a Swap Counterparty Trigger
Event) and (y) a fraction, the numerator of which is the Interest Funds for
Loan Group 2 for such Distribution Date, and the denominator of which is the
Interest Funds for Loan Group 1, Loan Group 2 and Loan Group 3 for such
Distribution Date, and the denominator of which is (b) the sum of the
aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 2 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received during the Prepayment Period that ends during such Due
Period) plus any amounts on deposit in the Pre-Funding Account in respect of
Loan Group 2 as of the first day of that Due Period.

            Class 2-A Principal Distribution Amount: With respect to any
Distribution Date, the product of (x) the Class A Principal Distribution
Target Amount and (y) a fraction, the numerator of which is the Class 2-A
Principal Distribution Target Amount and the denominator of which is the sum
of the Class 1-A Principal Distribution Target Amount, the Class 2-A Principal
Distribution Target Amount and the Class 3-A Principal Distribution Target
Amount.

            Class 2-A Principal Distribution Target Amount: With respect to
any Distribution Date, the excess of (1) the aggregate Certificate Principal
Balance of the Class 2-A Certificates immediately prior to such Distribution
Date, over (2) the lesser of (x) 58.50% of the aggregate Stated Principal
Balance of the Mortgage Loans in Loan Group 2 for such Distribution Date and
(y) the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group
2 for such Distribution Date minus 0.50% of the sum of the aggregate Cut-off
Date Principal Balance of the Initial Mortgage Loans in Loan Group 2 and the
original Group 2 Pre-Funded Amount.

            Class 3-A-1 Certificate: Any Certificate designated as a "Class
3-A-1 Certificate" on the face thereof, in the form of Exhibit A-5 hereto,
representing the right to distributions as set forth herein.

            Class 3-A-2 Certificate: Any Certificate designated as a "Class
3-A-2 Certificate" on the face thereof, in the form of Exhibit A-6 hereto,
representing the right to distributions as set forth herein.

            Class 3-A Certificate: Any Class 3-A-1 or Class 3-A-2 Certificate.

            Class 3-A Net Rate Cap: For any Distribution Date, the weighted
average Adjusted Net Mortgage Rate of the Mortgage Loans in Loan Group 3 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received during the Prepayment Period that ends during such Due
Period), adjusted to an effective rate reflecting the calculation of interest
on the basis of the actual number of days elapsed during the related Accrual
Period and a 360-day year, minus a fraction, expressed as a percentage, the
numerator of which is (a) the product of (x) the sum of (1) the Net Swap
Payment payable to the Swap Counterparty with respect to such Distribution
Date times a fraction, the numerator of which is equal to 360 and the
denominator of which is equal to the actual number of days in the related
Accrual Period and (2) any Swap Termination Payment payable to the Swap
Counterparty for such Distribution Date (other than a Swap Termination Payment
due to a Swap Counterparty Trigger Event) and (y) a fraction, the numerator of
which is the Interest Funds for Loan Group 3 for such Distribution Date, and
the denominator of which is the Interest Funds for Loan Group 1, Loan Group 2
and Loan Group 3 for such Distribution Date, and the denominator of which is
(b) the sum of the

                                      14
<PAGE>

aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 3 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received during the Prepayment Period that ends during such Due
Period) plus any amounts on deposit in the Pre-Funding Account in respect of
Loan Group 3 as of the first day of that Due Period.

            Class 3-A Principal Distribution Amount: With respect to any
Distribution Date, the product of (x) the Class A Principal Distribution
Target Amount and (y) a fraction, the numerator of which is the Class 3-A
Principal Distribution Target Amount and the denominator of which is the sum
of the Class 1-A Principal Distribution Target Amount, the Class 2-A Principal
Distribution Target Amount and the Class 3-A Principal Distribution Target
Amount.

            Class 3-A Principal Distribution Target Amount: With respect to
any Distribution Date, the excess of (1) the aggregate Certificate Principal
Balance of the Class 3-A Certificates immediately prior to such Distribution
Date, over (2) the lesser of (x) 58.50% of the aggregate Stated Principal
Balance of the Mortgage Loans in Loan Group 3 for such Distribution Date and
(y) the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group
3 for such Distribution Date minus 0.50% of the sum of the aggregate Cut-off
Date Principal Balance of the Initial Mortgage Loans in Loan Group 3 and the
original Group 3 Pre-Funded Amount.

            Class A-R Certificate: Any Certificate designated as a "Class A-R
Certificate" on the face thereof, in the form of Exhibit D hereto or, in the
case of the Tax Matters Person Certificate, Exhibit E hereto, in either case
representing the right to distributions as set forth herein.

            Class A Certificate: Any Class 1-A, Class 2-A or Class 3-A
Certificate.

            Class A Principal Distribution Allocation Amount: With respect to
any Distribution Date, (a) in the case of the Class 1-A Certificates, the
Class 1-A Principal Distribution Amount, (b) in the case of the Class 2-A
Certificates, the Class 2-A Principal Distribution Amount and (c) in the case
of the Class 3-A Certificates, the Class 3-A Principal Distribution Amount.

            Class A Principal Distribution Target Amount: With respect to any
Distribution Date, the excess of (1) the aggregate Certificate Principal
Balance of the Class A Certificates immediately prior to such Distribution
Date, over (2) the lesser of (x) 58.50% of the aggregate Stated Principal
Balance of the Mortgage Loans for such Distribution Date and (y) the aggregate
Stated Principal Balance of the Mortgage Loans for such Distribution Date
minus the OC Floor.

            Class B Certificate: Any Certificate designated as a "Class B
Certificate" on the face thereof, in the form of Exhibit A-15 hereto,
representing the right to distributions as set forth herein.

            Class C Certificate: Any Certificate designated as a "Class C
Certificate" on the face thereof, in the form of Exhibit C hereto,
representing the right to distributions as set forth herein.

            Class C Distributable Amount: As defined in the Preliminary
Statement.

                                      15
<PAGE>

            Class M-1 Certificate: Any Certificate designated as a "Class M-1
Certificate" on the face thereof, in the form of Exhibit A-7 hereto,
representing the right to distributions as set forth herein.

            Class M-2 Certificate: Any Certificate designated as a "Class M-2
Certificate" on the face thereof, in the form of Exhibit A-8 hereto,
representing the right to distributions as set forth herein.

            Class M-3 Certificate: Any Certificate designated as a "Class M-3
Certificate" on the face thereof, in the form of Exhibit A-9 hereto,
representing the right to distributions as set forth herein.

            Class M-4 Certificate: Any Certificate designated as a "Class M-4
Certificate" on the face thereof, in the form of Exhibit A-10 hereto,
representing the right to distributions as set forth herein.

            Class M-5 Certificate: Any Certificate designated as a "Class M-5
Certificate" on the face thereof, in the form of Exhibit A-11 hereto,
representing the right to distributions as set forth herein.

            Class M-6 Certificate: Any Certificate designated as a "Class M-6
Certificate" on the face thereof, in the form of Exhibit A-12 hereto,
representing the right to distributions as set forth herein.

            Class M-7 Certificate: Any Certificate designated as a "Class M-7
Certificate" on the face thereof, in the form of Exhibit A-13 hereto,
representing the right to distributions as set forth herein.

            Class M-8 Certificate: Any Certificate designated as a "Class M-8
Certificate" on the face thereof, in the form of Exhibit A-14 hereto,
representing the right to distributions as set forth herein.

            Class P Certificate: Any Certificate designated as a "Class P
Certificate" on the face thereof, in the form of Exhibit B hereto,
representing the right to distributions as set forth herein.

            Class P Principal Distribution Date: The first Distribution Date
that occurs after the end of the latest Prepayment Charge Period for all
Mortgage Loans that have a Prepayment Charge Period.

            Closing Date: February 27, 2006.

            Code: The Internal Revenue Code of 1986, including any successor
or amendatory provisions.

            Collateral Schedule:  Schedule II hereto.

            Commission: The U. S. Securities and Exchange Commission.

                                      16
<PAGE>

            Compensating Interest: With respect to each Loan Group and any
Distribution Date, an amount equal to, in that Loan Group, the lesser of (x)
one-half of the Servicing Fee for the related Due Period and (y) the aggregate
Prepayment Interest Shortfalls for the Mortgage Loans in that Loan Group for
such Distribution Date.

            Confirmation: The confirmation, reference number Global IDs:
2409509, 2409782, with a trade date of February 16, 2006 evidencing a
transaction between the Swap Counterparty and CHL relating to the Swap
Contract.

            Corporate Trust Office: The designated office of the Trustee in
the State of New York where at any particular time its corporate trust
business with respect to this Agreement shall be administered, which office at
the date of the execution of this Agreement is located at 101 Barclay Street,
New York, New York 10286 (Attention: Corporate Trust MBS Administration),
telephone: (212) 815-3236, facsimile: (212) 815-3986.

            Co-Trustee: The Bank of New York Trust Company, N.A., a national
banking association, not in its individual capacity, but solely in its
capacity as co-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.

            Covered Mortgage Loan: A Mortgage Loan listed on the Mortgage Loan
Schedule as being covered by the Mortgage Insurance Policy.

            Credit Bureau Risk Score: A statistical credit score obtained by
CHL in connection with the origination of a Mortgage Loan.

            Credit Comeback Excess Account: The separate Eligible Account
created and initially maintained by the Trustee pursuant to Section 4.08 in
the name of the Trustee for the benefit of the Certificateholders and
designated "The Bank of New York in trust for registered Holders of CWABS,
Inc., Asset-Backed Certificates, Series 2006-3". Funds in the Credit Comeback
Excess Account shall be held in trust for the Certificateholders for the uses
and purposes set forth in this Agreement.

            Credit Comeback Excess Amount: With respect to the Credit Comeback
Loans in any Loan Group and any Master Servicer Advance Date, the portion of
the sum of the following (without duplication) attributable to the excess, if
any, of the actual mortgage rate on each Credit Comeback Loan in such Loan
Group and the Mortgage Rate on such Credit Comeback Loan: (i) all scheduled
interest collected during the related Due Period with respect to the Credit
Comeback Loans in such Loan Group, (ii) all interest on prepayments received
during the related Prepayment Period with respect to the Credit Comeback Loans
in such Loan Group, other than Prepayment Interest Excess, (iii) all Advances
relating to interest with respect to the Credit Comeback Loans in such Loan
Group, (iv) all Compensating Interest with respect to the Credit Comeback
Loans in such Loan Group and (v) Liquidation Proceeds with respect to the
Credit Comeback Loans in such Loan Group collected during the related Due
Period (to the extent such Liquidation Proceeds relate to interest), less all
Nonrecoverable Advances for such Loan Group relating to interest reimbursed
during the related Due Period.

                                      17
<PAGE>

            Credit Comeback Excess Cashflow: With respect to any Distribution
Date, any amounts in the Credit Comeback Excess Account available for such
Distribution Date.

            Credit Comeback Loan: Any Fixed Rate Mortgage Loan for which the
related Mortgage Rate is subject to reduction (not exceeding 0.375% per annum)
for good payment history of Scheduled Payments by the related Mortgagor.

            Cross-Over Situation: For any Distribution Date and for each Loan
Group (after taking into account principal distributions on such Distribution
Date) with respect to (1) the Class A and Class B REMIC 2 Interests, a
situation in which the Class A and Class B Interests corresponding to any Loan
Group are in the aggregate less than 1% of the Subordinate Component Balance
of the Loan Group to which they correspond and (2) the Class C and Class D
REMIC 2 Interests, a situation in which the Class C and Class D Interests
corresponding to any Loan Group are in the aggregate less than 1% of the
Adjusted Subordinate Component Balance of the Loan Group to which they
correspond.

            Cumulative Loss Trigger Event: With respect to a Distribution Date
on or after the Stepdown Date, a Cumulative Loss Trigger Event will be in
effect if (x) the aggregate amount of Realized Losses on the Mortgage Loans
from the Cut-off Date for each such Mortgage Loan to (and including) the last
day of the related Due Period (reduced by the aggregate amount of any
Subsequent Recoveries received through the last day of that Due Period)
exceeds (y) the applicable percentage, for such Distribution Date, of the sum
of the aggregate Cut-off Date Principal Balance of the Initial Mortgage Loans
and the Pre-Funded Amount, as set forth below:

               Distribution Date                 Percentage
               -----------------                 ----------

               March 2008 -- February 2009...... 1.35% with respect to March
                                                 2008, plus an additional
                                                 1/12th of 1.65% for each
                                                 month thereafter through
                                                 February 2009
               March 2009 -- February 2010...... 3.00% with respect to March
                                                 2009, plus an additional
                                                 1/12th of 1.75% for each
                                                 month thereafter through
                                                 February 2010
               March 2010 -- February 2011...... 4.75% with respect to March
                                                 2010, plus an additional
                                                 1/12th of 1.40% for each
                                                 month thereafter through
                                                 February 2011
               March 2011 -- February 2012...... 6.15% with respect to March
                                                 2011, plus an additional
                                                 1/12th of 0.80% for each
                                                 month thereafter through
                                                 February 2012
               March 2012 and thereafter........ 6.95%

            Current Interest: With respect to each Class of Interest-Bearing
Certificates and each Distribution Date, the interest accrued at the
applicable Pass-Through Rate for the

                                      18
<PAGE>

applicable Accrual Period on the Certificate Principal Balance of such Class
immediately prior to such Distribution Date.

            Cut-off Date: When used with respect to any Mortgage Loan the
"Cut-off Date" shall mean the Initial Cut-off Date or the related Subsequent
Cut-off Date, as the case may be.

            Cut-off Date Principal Balance: As to any Mortgage Loan, the
unpaid principal balance thereof as of the close of business on the Cut-off
Date after application of all payments of principal due on or prior to the
Cut-off Date, whether or not received, and all Principal Prepayments received
on or prior to the Cut-off Date, but without giving effect to any installments
of principal received in respect of Due Dates after the Cut-off Date.

            Debt Service Reduction: With respect to any Mortgage Loan, a
reduction by a court of competent jurisdiction in a proceeding under the
Bankruptcy Code in the Scheduled Payment for such Mortgage Loan that became
final and non-appealable, except such a reduction resulting from a Deficient
Valuation or any other reduction that results in a permanent forgiveness of
principal.

            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,
or any reduction in the amount of principal to be paid in connection with any
Scheduled Payment that results in a permanent forgiveness of principal, which
valuation or reduction results from an order of such court that is final and
non-appealable in a proceeding under the Bankruptcy Code.

            Definitive Certificates: As defined in Section 5.06.

            Delay Delivery Mortgage Loans: (i) The Initial Mortgage Loans
identified on the schedule of Mortgage Loans hereto set forth on Exhibit F-2
hereof for which all or a portion of a related Mortgage File is not delivered
to the Co-Trustee on or prior to the Closing Date, and (ii) the Subsequent
Mortgage Loans identified on the schedule of Subsequent Mortgage Loans set
forth in Annex A to each related Subsequent Transfer Agreement for which all
or a portion of the related Mortgage File is not delivered to the Co-Trustee
on or prior to the related Subsequent Transfer Date. The Depositor shall
deliver (or cause delivery of) the Mortgage Files to the Co-Trustee: (A) with
respect to at least 50% of the Initial Mortgage Loans in each Loan Group, not
later than the Closing Date and with respect to at least 10% of the Subsequent
Mortgage Loans in each Loan Group conveyed on a Subsequent Transfer Date, not
later than such Subsequent Transfer Date, (B) with respect to at least an
additional 40% of the Initial Mortgage Loans in each Loan Group, not later
than 20 days after the Closing Date, and not later than 20 days after the
relevant Subsequent Transfer Date with respect to the remaining Subsequent
Mortgage Loans conveyed on such Subsequent Transfer Date, and (C) with respect
to the remaining Initial Mortgage Loans, not later than thirty days after the
Closing Date. To the extent that Countrywide Home Loans, Inc. shall be in
possession of any Mortgage Files with respect to any Delay Delivery Mortgage
Loan, until delivery of such Mortgage File to the Co-Trustee as provided in
Section 2.01, Countrywide Home Loans, Inc. shall hold such files as agent and
in trust for the Co-Trustee.

                                      19
<PAGE>

            Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced
by a Replacement Mortgage Loan.

            Delinquency Trigger Event: With respect to any Distribution Date
on or after the Stepdown Date, a Delinquency Trigger Event will be in effect
if the Rolling Sixty-Day Delinquency Rate for Outstanding Mortgage Loans
equals or exceeds the product of (x) the Senior Enhancement Percentage for
such Distribution Date and (y) the applicable percentage listed below for the
most senior Class of Interest-Bearing Certificates:

                               Class             Percentage
                       Class A..............       38.65%
                       Class M-1............       46.90%
                       Class M-2............       58.33%
                       Class M-3............       68.25%
                       Class M-4............       80.20%
                       Class M-5............       97.80%
                       Class M-6............       121.51%
                       Class M-7............       158.81%
                       Class M-8............       213.86%
                       Class B..............       291.63%

            Delinquent: A Mortgage Loan is "delinquent" if any payment due
thereon is not made pursuant to the terms of such Mortgage Loan by the close
of business on the day such payment is scheduled to be due. A Mortgage Loan is
"30 days delinquent" if such payment has not been received by the close of
business on the corresponding day of the month immediately succeeding the
month in which such payment was due, or, if there is no such corresponding day
(e.g., as when a 30-day month follows a 31-day month in which a payment was
due on the 31st day of such month), then on the last day of such immediately
succeeding month. Similarly for "60 days delinquent," "90 days delinquent" and
so on.

            Denomination: With respect to each Certificate, the amount set
forth on the face thereof as the "Initial Certificate Balance of this
Certificate" or, if not the foregoing, the Percentage Interest appearing on
the face thereof, as applicable.

            Depositor: CWABS, Inc., a Delaware corporation, or its successor
in interest.

            Depository: The initial Depository shall be The Depository Trust
Company, the nominee of which 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(a)(5) of the
Uniform Commercial Code of the State of New York.

            Depository Agreement: With respect to the Book-Entry Certificates,
the agreement among the Depositor and the initial Depository, dated as of the
Closing Date, substantially in the form of Exhibit O.

                                      20
<PAGE>

            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
15th day of the month of such Distribution Date or, if such 15th day is not a
Business Day, the immediately preceding Business Day.

            Distribution Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.05(c) in the name of the
Trustee for the benefit of the Certificateholders and designated "The Bank of
New York, in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-3". Funds in the Distribution Account shall be held
in trust for the Certificateholders for the uses and purposes set forth in
this Agreement.

            Distribution Account Deposit Date: As to any Distribution Date,
1:00 p.m. Pacific time on the Business Day immediately preceding such
Distribution Date.

            Distribution Date: The 25th day of each month, or if such day is
not a Business Day, on the first Business Day thereafter, commencing in March
2006.

            Due Date: With respect to any Mortgage Loan and Due Period, the
due date for Scheduled Payments of interest and/or principal on that Mortgage
Loan occurring in such Due Period as provided in the related Mortgage Note.

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

            EDGAR: The Commission's  Electronic Data Gathering,  Analysis, and
Retrieval system.

            Eligible Account: Any of (i) an account or accounts maintained
with a federal or state chartered depository institution or trust company, the
long-term unsecured debt obligations and 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 debt obligations of such
holding company, if Moody's is not a Rating Agency) are rated by each Rating
Agency in one of its two highest long-term and its highest short-term rating
categories respectively, at the time any amounts are held on deposit therein,
or (ii) an account or accounts in a depository institution or trust company in
which such accounts are insured by the FDIC (to the limits established by the
FDIC) and the uninsured deposits in which accounts are otherwise secured such
that, as evidenced by an Opinion of Counsel delivered to the Trustee and to
each Rating Agency, the Certificateholders have a claim with respect to the
funds in such account or a perfected first priority security interest against
any 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 or trust company in which such account is maintained,
or (iii) a trust account or accounts maintained with the corporate trust
department of a federal or state chartered depository institution or trust
company having capital and surplus of not less than $50,000,000,

                                      21
<PAGE>

acting in its fiduciary capacity or (iv) any other account acceptable to the
Rating Agencies 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, and may include, if otherwise
qualified under this definition, accounts maintained with the Trustee.

            Eligible Repurchase Month: As defined in Section 3.12(d) hereof.

            ERISA: The Employee Retirement Income Security Act of 1974, as
amended.

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

            ERISA-Restricted Certificates: The Class A-R Certificates, Class P
Certificates, Class C Certificates and Certificates of any Class that ceases
to satisfy the applicable rating requirement under the Underwriter's
Exemption.

            Escrow Account: As defined in Section 3.06 hereof.

            Event of Default: As defined in Section 7.01 hereof.

            Excess Cashflow: With respect to any Distribution Date the sum of
(i) the amount remaining after the distribution of interest to
Certificateholders for such Distribution Date pursuant to Section
4.04(a)(iv)(b), (ii) the amount remaining after the distribution of principal
to Certificateholders for such Distribution Date, pursuant to Section
4.04(b)(1)(B)(ii) or 4.04(b)(2)(C) and (iii) the Overcollateralization
Reduction Amount for such Distribution Date.

            Excess Overcollateralization Amount: With respect to any
Distribution Date, the excess, if any, of the Overcollateralized Amount for
such Distribution Date over the Overcollateralization Target Amount for such
Distribution Date.

            Excess Proceeds: With respect to any Liquidated Mortgage Loan, the
amount, if any, by which the sum of any Liquidation Proceeds and Subsequent
Recoveries are in excess of the sum of (i) the unpaid principal balance of
such Liquidated Mortgage Loan as of the date of liquidation of such Liquidated
Mortgage Loan plus (ii) interest at the Mortgage Rate from the Due Date as to
which interest was last paid or advanced to Certificateholders (and not
reimbursed to the Master Servicer) up to the Due Date in the month in which
Liquidation Proceeds are required to be distributed on the Stated Principal
Balance of such Liquidated Mortgage Loan outstanding during each Due Period as
to which such interest was not paid or advanced.

            Exchange Act: The Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder.

            Exchange Act Reports: Any reports on Form 10-D, Form 8-K and Form
10-K required to be filed by the Depositor with respect to the Trust Fund
under the Exchange Act.

                                      22
<PAGE>

            Expense Fee Rate: With respect to any Mortgage Loan, the sum of
(i) the Servicing Fee Rate, (ii) the Trustee Fee Rate, (iii) with respect to a
Covered Mortgage Loan, the applicable Mortgage Insurance Premium Rate and (iv)
with respect to any Mortgage Loan covered by a lender paid mortgage insurance
policy (other than the Mortgage Insurance Policy), the related mortgage
insurance premium rate.

            Extra Principal Distribution Amount: With respect to any
Distribution Date and each of Loan Group 1, Loan Group 2 and Loan Group 3, the
lesser of (1) the Overcollateralization Deficiency Amount and (2) the Excess
Cashflow and Credit Comeback Excess Cashflow available for payment thereof, to
be allocated between Loan Group 1, Loan Group 2 and Loan Group 3, pro rata,
based on the Principal Remittance Amount for each such Loan Group for such
Distribution Date.

            Fannie Mae: 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.

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

            Five-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage
Rate that is fixed for 60 months after origination thereof before such
Mortgage Rate becomes subject to adjustment.

            Fixed Rate Mortgage Loans: The Mortgage Loans identified in the
Mortgage Loan Schedule as having a Mortgage Rate which is fixed for the life
of the related Mortgage and any Credit Comeback Loans, including in each case
any Mortgage Loans delivered in replacement thereof.

            Form 10-D Disclosure Item: With respect to any Person, any
material litigation or governmental proceedings pending against such Person,
or against any of the Trust Fund, the Depositor, the Trustee, any co-trustee,
the Master Servicer or any Subservicer, if such Person has actual knowledge
thereof.

            Form 10-K Disclosure Item: With respect to any Person, (a) Form
10-D Disclosure Item, and (b) any affiliations or relationships between such
Person and any Item 1119 Party.

            Freddie Mac: 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.

            Funding Period: The period from the Closing Date to and including
the earlier to occur of (x) the date the amount in the Pre-Funding Account is
less than $175,000 and (y) April 14, 2006.

            Gross Margin: The percentage set forth in the related Mortgage
Note to be added to the Index for use in determining the Mortgage Rate for
each Adjustable Rate Mortgage Loan on each of its Adjustment Dates.

                                      23
<PAGE>

            Group 1 Mortgage Loans: The group of Mortgage Loans identified in
the related Mortgage Loan Schedule as "Group 1 Mortgage Loans", including in
each case any Mortgage Loans delivered in replacement thereof.

            Group 1 Overcollateralization Reduction Amount: With respect to
any Distribution Date, the Overcollateralization Reduction Amount for such
Distribution Date multiplied by a fraction, the numerator of which is (x) the
Principal Remittance Amount for Loan Group 1 for such Distribution Date, and
the denominator of which is (y) the aggregate Principal Remittance Amount for
Loan Group 1, Loan Group 2 and Loan Group 3 for such Distribution Date.

            Group 1 Pre-Funded Amount: The portion of the Pre-Funded Amount
allocable for purchase of Subsequent Mortgage Loans as Group 1 Mortgage Loans
on the Closing Date, which shall equal $0.00.

            Group 2 Mortgage Loans: The group of Mortgage Loans identified in
the related Mortgage Loan Schedule as "Group 2 Mortgage Loans", including in
each case any Mortgage Loans delivered in replacement thereof.

            Group 2 Overcollateralization Reduction Amount: With respect to
any Distribution Date, the Overcollateralization Reduction Amount for such
Distribution Date multiplied by a fraction, the numerator of which is the
Principal Remittance Amount for Loan Group 2 for such Distribution Date, and
the denominator of which is the aggregate Principal Remittance Amount for Loan
Group 1, Loan Group 2 and Loan Group 3 for such Distribution Date.

            Group 2 Pre-Funded Amount: The portion of the Pre-Funded Amount
allocable for purchase of Subsequent Mortgage Loans as Group 2 Mortgage Loans
on the Closing Date, which shall equal $285.21.

            Group 3 Mortgage Loans: The group of Mortgage Loans identified in
the related Mortgage Loan Schedule as "Group 3 Mortgage Loans", including in
each case any Mortgage Loans delivered in replacement thereof.

            Group 3 Overcollateralization Reduction Amount: With respect to
any Distribution Date, the Overcollateralization Reduction Amount for such
Distribution Date multiplied by a fraction, the numerator of which is the
Principal Remittance Amount for Loan Group 3 for such Distribution Date, and
the denominator of which is the aggregate Principal Remittance Amount for Loan
Group 1, Loan Group 2 and Loan Group 3 for such Distribution Date.

            Group 3 Pre-Funded Amount: The portion of the Pre-Funded Amount
allocable for purchase of Subsequent Mortgage Loans as Group 3 Mortgage Loans
on the Closing Date, which shall equal $186.30.

            Group Tax Net Rate Cap. With respect to Loan Group 1, the Loan
Group 1 Tax Net Rate Cap (as defined in the Preliminary Statement), with
respect to Loan Group 2, the Loan

                                      24
<PAGE>

Group 2 Tax Net Rate Cap (as defined in the Preliminary Statement) and with
respect to Loan Group 3, the Loan Group 3 Tax Net Rate Cap (as defined in the
Preliminary Statement)

            Index: As to any Adjustable Rate Mortgage Loan on any Adjustment
Date related thereto, the index for the adjustment of the Mortgage Rate set
forth as such in the related Mortgage Note, such index in general being the
average of the London interbank offered rates for six-month U.S. dollar
deposits in the London market, as set forth in The Wall Street Journal, as
most recently announced as of a date 45 days prior to such Adjustment Date or,
if the Index ceases to be published in The Wall Street Journal or becomes
unavailable for any reason, then the Index shall be a new index selected by
the Master Servicer, based on comparable information.

            Initial Adjustment Date: As to any Adjustable Rate Mortgage Loan,
the first Adjustment Date following the origination of such Mortgage Loan.

            Initial Certificate Account Deposit: An amount equal to the
aggregate of all amounts in respect of (i) principal of the Initial Mortgage
Loans due after the Initial Cut-off Date and received by the Master Servicer
before the Closing Date and not applied in computing the Cut-off Date
Principal Balance thereof and (ii) interest on the Initial Mortgage Loans due
after the Initial Cut-off Date and received by the Master Servicer before the
Closing Date.

            Initial Certificate Principal Balance: With respect to any
Certificate (other than the Class C Certificates) the Certificate Principal
Balance of such Certificate or any predecessor Certificate on the Closing
Date.

            Initial Cut-off Date: In the case of any Initial Mortgage Loan,
the later of (x) February 1, 2006 and (y) the date of origination of such
Mortgage Loan.

            Initial Mortgage Loan: A Mortgage Loan conveyed to the Trustee on
the Closing Date pursuant to this Agreement as identified on the Mortgage Loan
Schedule delivered to the Trustee on the Closing Date.

            Initial Mortgage Rate: As to each Adjustable Rate Mortgage Loan,
the Mortgage Rate in effect prior to the Initial Adjustment Date.

            Initial Periodic Rate Cap: With respect to each Adjustable Rate
Mortgage Loan, the percentage specified in the related Mortgage Note that
limits the permissible increase or decrease in the Mortgage Rate on its
initial Adjustment Date.

            Insurance Policy: With respect to any Mortgage Loan included in
the Trust Fund, any insurance policy, including the Mortgage Insurance Policy,
including all riders and endorsements thereto in effect with respect to such
Mortgage Loan, including any replacement policy or policies for any Insurance
Policy.

            Insurance Proceeds: Proceeds paid in respect of the Mortgage Loans
pursuant to any Insurance Policy or any other insurance policy covering a
Mortgage Loan, to the extent such proceeds are payable to the mortgagee under
the Mortgage, the Master Servicer or the trustee under the deed of trust and
are not applied to the restoration of the related Mortgaged Property or

                                      25
<PAGE>

released to the Mortgagor in accordance with the procedures that the Master
Servicer would follow in servicing mortgage loans held for its own account, in
each case other than any amount included in such Insurance Proceeds in respect
of Insured Expenses and received either prior to or in connection with such
Mortgage Loan becoming a Liquidated Mortgage Loan.

            Insured Expenses: Expenses covered by an Insurance Policy or any
other insurance policy with respect to the Mortgage Loans.

            Interest-Bearing Certificates: The Class A Certificates and the
Subordinate Certificates.

            Interest Carry Forward Amount: With respect to each Class of
Interest-Bearing Certificates and each Distribution Date, the excess of (i)
the Current Interest for such Class with respect to prior Distribution Dates
over (ii) the amount actually distributed to such Class with respect to
interest on such prior Distribution Dates.

            Interest Determination Date: With respect to the first Accrual
Period for the Interest-Bearing Certificates, February 23, 2006. With respect
to any Accrual Period for the Interest-Bearing Certificates thereafter, the
second LIBOR Business Day preceding the commencement of such Accrual Period.

            Interest Funds: With respect to any Distribution Date and Loan
Group, the Interest Remittance Amount for such Loan Group and Distribution
Date, less the portion of the Trustee Fee for such Distribution Date allocable
to such Loan Group and the Mortgage Insurance Premium for such Distribution
Date allocable to such Loan Group, plus the Adjusted Replacement Upfront
Amount, if any, allocable to such Loan Group.

            Interest Remittance Amount: With respect to the Mortgage Loans in
each Loan Group and any Distribution Date, (x) the sum, without duplication,
of (i) all scheduled interest collected during the related Due Period (for the
avoidance of doubt, other than Credit Comeback Excess Amounts) with respect to
the related Mortgage Loans less the related Servicing Fee, (ii) all interest
on prepayments received during the related Prepayment Period with respect to
such Mortgage Loans, other than Prepayment Interest Excess, (iii) all related
Advances relating to interest with respect to such Mortgage Loans, (iv) all
related Compensating Interest with respect to such Mortgage Loans, (v)
Liquidation Proceeds with respect to such Mortgage Loans collected during the
related Due Period (to the extent such Liquidation Proceeds relate to
interest) and (vi) the related Seller Shortfall Interest Requirement, less (y)
all reimbursements to the Master Servicer during the related Due Period for
Advances of interest previously made allocable to such Loan Group.

            Investment Letter: As defined in Section 5.02(b).

            ISDA Credit Support Annex: The International Swaps and Derivatives
Association, Inc. form of Credit Support Annex, dated as of February 27, 2006,
between the Swap Counterparty and the Swap Contract Administrator.

            Item 1119 Party: The Depositor, any Seller, the Master Servicer,
the Trustee, any Subservicer, any originator identified in the Prospectus
Supplement, the Swap Counterparty and

                                      26
<PAGE>

any other material transaction party, as identified in Exhibit Z hereto, as
updated pursuant to Section 11.04.

            Latest Possible Maturity Date: The Distribution Date following the
third anniversary of the scheduled maturity date of the Mortgage Loan having
the latest scheduled maturity date as of the Cut-off Date.

            LIBOR Business Day: Any day on which banks in the City of London,
England and New York City, U.S.A. are open and conducting transactions in
foreign currency and exchange.

            Limited Exchange Act Reporting Obligations: The obligations of the
Master Servicer under Section 3.17(b), Section 6.02 and Section 6.04 with
respect to notice and information to be provided to the Depositor and Article
XI (except Section 11.07(a)(1) and (2)).

            Liquidated Mortgage Loan: With respect to any Distribution Date, a
defaulted Mortgage Loan that has been liquidated through deed-in-lieu of
foreclosure, foreclosure sale, trustee's sale or other realization as provided
by applicable law governing the real property subject to the related Mortgage
and any security agreements and as to which the Master Servicer has certified
in the related Prepayment Period that it has received all amounts it expects
to receive in connection with such liquidation.

            Liquidation Proceeds: Amounts, including Insurance Proceeds,
received in connection with the partial or complete liquidation of Mortgage
Loans, whether through trustee's sale, foreclosure sale or otherwise or
amounts received in connection with any condemnation or partial release of a
Mortgaged Property and any other proceeds received in connection with an REO
Property received in connection with or prior to such Mortgage Loan becoming a
Liquidated Mortgage Loan (other than the amount of such net proceeds
representing any profit realized by the Master Servicer in connection with the
disposition of any such properties), less the sum of related unreimbursed
Advances, Servicing Fees and Servicing Advances.

            Loan Group: Any of Loan Group 1, Loan Group 2 or Loan Group 3.

            Loan Group 1: The Group 1 Mortgage Loans.

            Loan Group 1 Tax Net Rate Cap: As defined in the Preliminary
Statement.

            Loan Group 2: The Group 2 Mortgage Loans.

            Loan Group 2 Tax Net Rate Cap: As defined in the Preliminary
Statement.

            Loan Group 3: The Group 3 Mortgage Loans.

            Loan Group 3 Tax Net Rate Cap: As defined in the Preliminary
Statement.

            Loan Number and Borrower Identification Mortgage Loan Schedule:
With respect to any Subsequent Transfer Date, the Loan Number and Borrower
Identification Mortgage Loan Schedule delivered in connection with such
Subsequent Transfer Date pursuant

                                      27
<PAGE>

to Section 2.01(f). Each Loan Number and Borrower Identification Mortgage Loan
Schedule shall contain the information specified in the definition of
"Mortgage Loan Schedule" with respect to the Subsequent Mortgage Loans
conveyed on such Subsequent Transfer Date, and each Loan Number and Borrower
Identification Mortgage Loan Schedule shall be deemed to be included in the
Mortgage Loan Schedule.

            Loan-to-Value Ratio: The fraction, expressed as a percentage, the
numerator of which is the original principal balance of the related Mortgage
Loan and the denominator of which is the Appraised Value of the related
Mortgaged Property.

            Majority Holder: The Holders of Certificates evidencing at least
51% of the Voting Rights allocated to such Class of Certificates.

            Margin: With respect to any Accrual Period and Class of
Interest-Bearing Certificates, the per annum rate indicated in the following
table:

            ------------------------------------------------------
                        Class              Margin (1) Margin (2)
            ------------------------------------------------------
            Class 1-A..................      0.200%     0.400%
            ------------------------------------------------------
            Class 2-A-1................      0.070%     0.140%
            ------------------------------------------------------
            Class 2-A-2................      0.180%     0.360%
            ------------------------------------------------------
            Class 2-A-3................      0.290%     0.580%
            ------------------------------------------------------
            Class 3-A-1................      0.120%     0.240%
            ------------------------------------------------------
            Class 3-A-2................      0.390%     0.780%
            ------------------------------------------------------
            Class M-1..................      0.370%     0.555%
            ------------------------------------------------------
            Class M-2..................      0.390%     0.585%
            ------------------------------------------------------
            Class M-3..................      0.420%     0.630%
            ------------------------------------------------------
            Class M-4..................      0.540%     0.810%
            ------------------------------------------------------
            Class M-5..................      0.580%     0.870%
            ------------------------------------------------------
            Class M-6..................      0.670%     1.005%
            ------------------------------------------------------
            Class M-7..................      1.250%     1.875%
            ------------------------------------------------------
            Class M-8..................      1.550%     2.325%
            ------------------------------------------------------
            Class B....................      2.500%     3.750%
            ------------------------------------------------------

(1)   For any Accrual Period relating to any Distribution Date occurring on or
      prior to the Optional Termination Date.
(2)   For any Accrual Period relating to any Distribution Date occurring after
      the Optional Termination Date.

            Master Servicer: Countrywide Home Loans Servicing LP, a Texas
limited partnership, and its successors and assigns, in its capacity as master
servicer hereunder.

            Master Servicer Advance Date: As to any Distribution Date, the
Business Day immediately preceding such Distribution Date.

            Master Servicer Prepayment Charge Payment Amount: The amounts (i)
payable by the Master Servicer in respect of any Prepayment Charges waived
other than in accordance

                                      28
<PAGE>

with the standard set forth in the first sentence of Section 3.20(a), or (ii)
collected from the Master Servicer in respect of a remedy for the breach of
the representation made by CHL set forth in Section 3.20(c).

            Maximum Mortgage Rate: With respect to each Adjustable Rate
Mortgage Loan, the maximum rate of interest set forth as such in the related
Mortgage Note.

            MERS: Mortgage Electronic Registration Systems, Inc., a
corporation organized and existing under the laws of the State of Delaware, or
any successor thereto.

            MERS Mortgage Loan: Any Mortgage Loan registered with MERS on the
MERS(R) System.

            MERS(R) System: The system of recording transfers of mortgages
electronically maintained by MERS.

            MIN: The Mortgage Identification Number for any MERS Mortgage
Loan.

            Minimum Mortgage Rate: With respect to each Adjustable Rate
Mortgage Loan, the minimum rate of interest set forth as such in the related
Mortgage Note.

            Modified Mortgage Loan: As defined in Section 3.12(a).

            MOM Loan: Any Mortgage Loan, as to which MERS is acting as
mortgagee, solely as nominee for the originator of such Mortgage Loan and its
successors and assigns.

            Monthly Statement: The statement delivered to the
Certificateholders pursuant to Section 4.05.

            Moody's: Moody's Investors Service, Inc. and its successors.

            Mortgage: The mortgage, deed of trust or other instrument creating
a first lien on or first priority ownership interest in an estate in fee
simple in real property securing a Mortgage Note.

            Mortgage File: The mortgage documents listed in Section 2.01
hereof pertaining to a particular Mortgage Loan and any additional documents
delivered to the Co-Trustee to be added to the Mortgage File pursuant to this
Agreement.

            Mortgage Insurance Policy: The Mortgage Insurance Policy issued by
the Mortgage Insurer with respect to certain Mortgage Loans identified in the
Mortgage Loan Schedule.

            Mortgage Insurance Premium: The premium payable on the Mortgage
Insurance Policy on each Distribution Date and amounts due for premium taxes
with respect to West Virginia and Kentucky.

                                      29
<PAGE>

            Mortgage Insurance Premium Rate: With respect to a Covered
Mortgage Loan and any Distribution Date, the per annum rate equal to a
fraction (expressed as a percentage), the numerator of which is equal to the
portion of the Mortgage Insurance Premium payable with respect to such
Distribution Date attributable to such Covered Mortgage Loan multiplied by
twelve and the denominator of which is equal to the Stated Principal Balance
of such Covered Mortgage Loan.

            Mortgage Insurer: Mortgage Guaranty Insurance Corporation or any
replacement Mortgage Insurer, as applicable.

            Mortgage Loan Schedule: The list of Mortgage Loans (as from time
to time amended by the Master Servicer to reflect the deletion of Liquidated
Mortgage Loans and Deleted Mortgage Loans and the addition of (x) Replacement
Mortgage Loans pursuant to the provisions of this Agreement and (y) Subsequent
Mortgage Loans pursuant to the provisions of this Agreement and any Subsequent
Transfer Agreement) transferred to the Trustee as part of the Trust Fund and
from time to time subject to this Agreement, attached hereto as Exhibit F-1,
setting forth in the following information with respect to each Mortgage Loan:

                  (i) the loan number;

                  (ii) the Loan Group;

                  (iii) the Appraised Value;

                  (iv) the Initial Mortgage Rate;

                  (v) the maturity date;

                  (vi) the original principal balance;

                  (vii) the Cut-off Date Principal Balance;

                  (viii) the first payment date of the Mortgage Loan;

                  (ix) the Scheduled Payment in effect as of the Cut-off Date;

                  (x) the Loan-to-Value Ratio at origination;

                  (xi) a code indicating whether the residential dwelling at
            the time of origination was represented to be owner-occupied;

                  (xii) a code indicating whether the residential dwelling is
            either (a) a detached single-family dwelling, (b) a two-family
            residential property, (c) a three-family residential property, (d)
            a four-family residential property, (e) planned unit development,
            (f) a low-rise condominium unit, (g) a high-rise condominium unit
            or (h) manufactured housing;

                                      30
<PAGE>

                  (xiii) a code indicating whether such Mortgage Loan is a
            Credit Comeback Loan;

                  (xiv) the purpose of the Mortgage Loan;

                  (xv) with respect to each Adjustable Rate Mortgage Loan:

                        (a) the frequency of each Adjustment Date;

                        (b) the next Adjustment Date;

                        (c) the Maximum Mortgage Rate;

                        (d) the Minimum Mortgage Rate;

                        (e) the Mortgage Rate as of the Cut-off Date;

                        (f) the related Initial Periodic Rate Cap and
                  Subsequent Periodic Rate Cap; and

                        (g) the Gross Margin;

                  (xvi) a code indicating if such Mortgage Loan is a Covered
            Mortgage Loan and the rate for the Mortgage Insurance Premium, if
            applicable;

                  (xvii) a code indicating whether the Mortgage Loan is a CHL
            Mortgage Loan, a Park Monaco Mortgage Loan or a Park Sienna
            Mortgage Loan;

                  (xviii) the premium rate for any lender-paid mortgage
            insurance, if applicable; and

                  (xix) a code indicating whether the Mortgage Loan is a Fixed
            Rate Mortgage Loan or an Adjustable Rate Mortgage Loan.

Such schedule shall also set forth the total of the amounts described under
(vii) above for all of the Mortgage Loans and for each Loan Group. The
Mortgage Loan Schedule shall be deemed to include each Loan Number and
Borrower Identification Mortgage Loan Schedule delivered pursuant to Section
2.01(f) and all the related Subsequent Mortgage Loans and Subsequent Mortgage
Loan information included therein.

            Mortgage Loans: Such of the mortgage loans transferred and
assigned to the Trustee pursuant to the provisions hereof and any Subsequent
Transfer Agreement as from time to time are held as part of the Trust Fund
(including any REO Property), the mortgage loans so held being identified in
the Mortgage Loan Schedule, notwithstanding foreclosure or other acquisition
of title of the related Mortgaged Property. Any mortgage loan that was
intended by the parties hereto to be transferred to the Trust Fund as
indicated by such Mortgage Loan

                                      31
<PAGE>

Schedule which is in fact not so transferred for any reason, including a
breach of the representation contained in Section 2.02 hereof, shall continue
to be a Mortgage Loan hereunder until the Purchase Price with respect thereto
has been paid to the Trust Fund.

            Mortgage Note: The original executed note or other evidence of
indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan.

            Mortgage Pool: The aggregate of the Mortgage Loans identified in
the Mortgage Loan Schedule.

            Mortgage Rate: The annual rate of interest borne by a Mortgage
Note from time to time; provided, however, the Mortgage Rate for each Credit
Comeback Loan shall be treated for all purposes of payments on the
Certificates, including the calculation of the Pass-Through Rates and the
applicable Net Rate Cap, as reduced by 0.375% on the Due Date following the
end of each of the first four annual periods after the origination date,
irrespective of whether the Mortgagor qualifies for the reduction by having a
good payment history.

            Mortgaged Property: The underlying property securing a Mortgage
Loan.

            Mortgagor: The obligors on a Mortgage Note.

            Net Mortgage Rate: As to each Mortgage Loan, and at any time, the
per annum rate equal to the Mortgage Rate less the Servicing Fee Rate.

            Net Rate Cap: With respect to any Distribution Date and (i) the
Class 1-A Certificates, the Class 1-A Net Rate Cap, (ii) each Class of Class
2-A Certificates, the Class 2-A Net Rate Cap, (iii) each Class of Class 3-A
Certificates, the Class 3-A Net Rate Cap and (iv) each Class of Subordinate
Certificates, the Subordinate Net Rate Cap.

            Net Rate Carryover: With respect to any Class of Interest-Bearing
Certificates and any Distribution Date, the sum of (A) the excess of (i) the
amount of interest that such Class would otherwise have accrued for such
Distribution Date had the Pass-Through Rate for such Class and the related
Accrual Period not been determined based on the applicable Net Rate Cap, over
(ii) the amount of interest accrued on such Class at the applicable Net Rate
Cap for such Distribution Date and (B) the Net Rate Carryover for such Class
for all previous Distribution Dates not previously paid pursuant to Section
4.04, together with interest thereon at the then-applicable Pass-Through Rate
for such Class, without giving effect to the applicable Net Rate Cap.

            Net Swap Payment: With respect to any Distribution Date and
payment by the Swap Contract Administrator to the Swap Counterparty, the
excess, if any, of the "Fixed Amount" (as defined in the Swap Contract) with
respect to such Distribution Date over the "Floating Amount" (as defined in
the Swap Contract) with respect to such Distribution Date. With respect to any
Distribution Date and payment by the Swap Counterparty to the Swap Contract
Administrator, the excess, if any, of the "Floating Amount" (as defined in the
Swap Contract) with respect to such Distribution Date over the "Fixed Amount"
(as defined in the Swap Contract) with respect to such Distribution Date

                                      32
<PAGE>

            NIM Insurer: Any insurer guarantying at the request of CHL certain
payments under notes backed or secured by the Class C or Class P Certificates.

            Nonrecoverable Advance: Any portion of an Advance previously made
or proposed to be made by the Master Servicer that, in the good faith judgment
of the Master Servicer, will not or, in the case of a current delinquency,
would not, be ultimately recoverable by the Master Servicer from the related
Mortgagor, related Liquidation Proceeds or otherwise.

            Non-United States Person: A Person that is not a citizen or
resident of the United States, a corporation, partnership, or other entity
(treated as a corporation or a partnership for federal income tax purposes)
created or organized in or under the laws of the United States, any state
thereof or the District of Columbia, an estate whose income from sources
without the United States is includible in gross income for United States
federal income tax purposes regardless of its connection with the conduct of a
trade or business within the United States, or 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 trustor.

            OC Floor: With respect to any Distribution Date, an amount equal
to 0.50% of the sum of the aggregate Cut-off Date Principal Balance of the
Initial Mortgage Loans and the Pre-Funded Amount.

            Officer's Certificate: A certificate (i) in the case of the
Depositor, signed by the Chairman of the Board, the Vice Chairman of the
Board, the President, a Managing Director, a Vice President (however
denominated), an Assistant Vice President, the Treasurer, the Secretary, or
one of the Assistant Treasurers or Assistant Secretaries of the Depositor,
(ii) in the case of the Master Servicer, signed by the President, an Executive
Vice President, a Vice President, an Assistant Vice President, the Treasurer,
or one of the Assistant Treasurers or Assistant Secretaries of Countrywide GP,
Inc., its general partner, (iii) if provided for in this Agreement, signed by
a Servicing Officer, as the case may be, and delivered to the Depositor and
the Trustee, as the case may be, as required by this Agreement, or (iv) in the
case of any other Person, signed by an authorized officer of such Person.

            One-Month LIBOR: With respect to any Accrual Period for the
Interest-Bearing Certificates, the rate determined by the Trustee on the
related Interest Determination Date on the basis of the rate for U.S. dollar
deposits for one month as quoted on the Bloomberg Terminal on such Interest
Determination Date; provided that the parties hereto acknowledge that
One-Month LIBOR calculated for the first Accrual Period for the
Interest-Bearing Certificates shall equal 4.58063% per annum. If such rate is
not quoted on the Bloomberg Terminal (or if such service is no longer offered,
such other service for displaying One-Month LIBOR or comparable rates as may
be reasonably selected by the Trustee), One-Month LIBOR for the applicable
Accrual Period for the Interest-Bearing Certificates will be the Reference
Bank Rate. If no such quotations can be obtained by the Trustee and no
Reference Bank Rate is available, One-Month LIBOR will be One-Month LIBOR
applicable to the preceding Accrual Period for the Interest-Bearing
Certificates.

                                      33
<PAGE>

            Opinion of Counsel: A written opinion of counsel, who may be
counsel for the Depositor or the Master Servicer, reasonably acceptable to
each addressee of such opinion; provided that with respect to Section 6.04 or
10.01, or the interpretation or application of the REMIC Provisions, such
counsel must (i) in fact be independent of the Depositor and the Master
Servicer, (ii) not have any direct financial interest in the Depositor or the
Master Servicer or in any affiliate of either and (iii) not be connected with
the Depositor or the Master Servicer as an officer, employee, promoter,
underwriter, trustee, partner, director or person performing similar
functions.

            Optional Termination: The termination of the Trust Fund provided
hereunder pursuant to the purchase of the Mortgage Loans pursuant to clause
(a) of the first sentence of Section 9.01 hereof.

            Optional Termination Date: The first Distribution Date on which
the aggregate Stated Principal Balance of the Mortgage Loans is less than or
equal to 10% of the sum of the aggregate Cut-off Date Principal Balance of the
Initial Mortgage Loans and the Pre-Funded Amount.

            Original Value: The value of the property underlying a Mortgage
Loan based, in the case of the purchase of the underlying Mortgaged Property,
on the lower of an appraisal satisfactory to the Master Servicer or the sales
price of such property or, in the case of a refinancing, on an appraisal
satisfactory to the Master Servicer.

            OTS: The Office of Thrift Supervision.

            Outstanding: With respect to the Certificates as of any date of
determination, all Certificates theretofore executed and authenticated under
this Agreement except:

                  (i) Certificates theretofore canceled by the Trustee or
            delivered to the Trustee for cancellation; and

                  (ii) Certificates in exchange for which or in lieu of which
            other Certificates have been executed and delivered by the Trustee
            pursuant to this Agreement.

            Outstanding Mortgage Loan: As of any Distribution Date, a Mortgage
Loan with a Stated Principal Balance greater than zero that was not the
subject of a Principal Prepayment in full, and that did not become a
Liquidated Mortgage Loan, prior to the end of the related Prepayment Period.

            Overcollateralization Deficiency Amount: With respect to any
Distribution Date, the amount, if any, by which the Overcollateralization
Target Amount exceeds the Overcollateralized Amount on such Distribution Date
(after giving effect to distribution of the Principal Distribution Amount
(other than the portion thereof consisting of the Extra Principal Distribution
Amount) on such Distribution Date).

            Overcollateralization Reduction Amount: With respect to any
Distribution Date, an amount equal to the lesser of (i) the Excess
Overcollateralization Amount for such

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<PAGE>

Distribution Date and (ii) the aggregate Principal Remittance Amount for Loan
Group 1, Loan Group 2 and Loan Group 3 for such Distribution Date.

            Overcollateralization Target Amount: With respect to any
Distribution Date (a) prior to the Stepdown Date, an amount equal to 2.75% of
the sum of the aggregate Cut-off Date Principal Balance of the Initial
Mortgage Loans and the Pre-Funded Amount and (b) on or after the Stepdown
Date, the greater of (i) an amount equal to 5.50% of the aggregate Stated
Principal Balance of the Mortgage Loans for the current Distribution Date and
(ii) the OC Floor; provided, however, that if a Trigger Event is in effect on
any Distribution Date, the Overcollateralization Target Amount will be the
Overcollateralization Target Amount as in effect for the prior Distribution
Date.

            Overcollateralized Amount: With respect to any Distribution Date,
the amount, if any, by which (x) the sum of the aggregate Stated Principal
Balance of the Mortgage Loans for such Distribution Date and any amount on
deposit in the Pre-Funding Account exceeds (y) the aggregate Certificate
Principal Balance of the Interest-Bearing Certificates as of such Distribution
Date (after giving effect to distribution of the Principal Remittance Amounts
to be made on such Distribution Date and, in the case of the Distribution Date
immediately following the end of the Funding Period, any amounts to be
released from the Pre-Funding Account).

            Ownership Interest: As to any Certificate, any ownership 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.

            Park Monaco: Park Monaco Inc., a Delaware corporation, and its
successors and assigns.

            Park Monaco Mortgage Loans: The Mortgage Loans identified as such
on the Mortgage Loan Schedule for which Park Monaco is the applicable Seller.

            Park Sienna: Park Sienna LLC, a Delaware limited liability
company, and its successors and assigns.

            Park Sienna Mortgage Loans: The Mortgage Loans identified as such
on the Mortgage Loan Schedule for which Park Sienna is the applicable Seller.

            Pass-Through Rate: With respect to any Accrual Period and each
Class of Interest-Bearing Certificates the lesser of (x) One-Month LIBOR for
such Accrual Period plus the Margin for such Class and Accrual Period and (y)
the applicable Net Rate Cap for such Class and the related Distribution Date.

            Percentage Interest: With respect to any Interest-Bearing
Certificate, a fraction, expressed as a percentage, the numerator of which is
the Certificate Principal Balance represented by such Certificate and the
denominator of which is the aggregate Certificate Principal Balance of the
related Class. With respect to the Class C, Class P and Class A-R
Certificates, the portion of the Class evidenced thereby, expressed as a
percentage, as stated on the face of such Certificate.

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<PAGE>

            Performance Certification: As defined in Section 11.05.

            Permitted Investments: At any time, any one or more of the
following obligations and securities:

                  (i) obligations of the United States or any agency thereof,
            provided such obligations are backed by the full faith and credit
            of the United States;

                  (ii) general obligations of or obligations guaranteed by any
            state of the United States or the District of Columbia receiving
            the highest long-term debt rating of each Rating Agency, or such
            lower rating as each Rating Agency has confirmed in writing is
            sufficient for the ratings originally assigned to the Certificates
            by such Rating Agency;

                  (iii) commercial or finance company paper which is then
            receiving the highest commercial or finance company paper rating
            of each Rating Agency, or such lower rating as each Rating Agency
            has confirmed in writing is sufficient for the ratings originally
            assigned to the Certificates by such Rating Agency;

                  (iv) certificates of deposit, demand or time deposits, or
            bankers' acceptances issued by any depository institution or trust
            company incorporated under the laws of the United States or of any
            state thereof and subject to supervision and examination by
            federal and/or state banking authorities, provided that the
            commercial paper and/or long term unsecured debt obligations of
            such depository institution or trust company (or in the case of
            the principal depository institution in a holding company system,
            the commercial paper or long-term unsecured debt obligations of
            such holding company, but only if Moody's is not a Rating Agency)
            are then rated one of the two highest long-term and the highest
            short-term ratings of each such Rating Agency for such securities,
            or such lower ratings as each Rating Agency has confirmed in
            writing is sufficient for the ratings originally assigned to the
            Certificates by such Rating Agency;

                  (v) repurchase obligations with respect to any security
            described in clauses (i) and (ii) above, in either case entered
            into with a depository institution or trust company (acting as
            principal) described in clause (iv) above;

                  (vi) securities (other than stripped bonds, stripped coupons
            or instruments sold at a purchase price in excess of 115% of the
            face amount thereof) bearing interest or sold at a discount issued
            by any corporation incorporated under the laws of the United
            States or any state thereof which, at the time of such investment,
            have one of the two highest long term ratings of each Rating
            Agency (except (x) if the Rating Agency is Moody's, such rating
            shall be the highest commercial paper rating of S&P for any such
            securities) and (y), or such lower rating as each Rating Agency
            has confirmed in writing is sufficient for the ratings originally
            assigned to the Certificates by such Rating Agency;

                  (vii) interests in any money market fund which at the date
            of acquisition of the interests in such fund and throughout the
            time such interests are held in

                                      36
<PAGE>

            such fund has the highest applicable long term rating by each
            Rating Agency or such lower rating as each Rating Agency has
            confirmed in writing is sufficient for the ratings originally
            assigned to the Certificates by such Rating Agency;

                  (viii) short term investment funds sponsored by any trust
            company or national banking association incorporated under the
            laws of the United States or any state thereof which on the date
            of acquisition has been rated by each Rating Agency in their
            respective highest applicable rating category or such lower rating
            as each Rating Agency has confirmed in writing is sufficient for
            the ratings originally assigned to the Certificates by such Rating
            Agency; and

                  (ix) such other relatively risk free investments having a
            specified stated maturity and bearing interest or sold at a
            discount acceptable to each Rating Agency as will not result in
            the downgrading or withdrawal of the rating then assigned to the
            Certificates by any Rating Agency, as evidenced by a signed
            writing delivered by each Rating Agency, and reasonably acceptable
            to the NIM Insurer, as evidenced by a signed writing delivered by
            the NIM Insurer;

provided, that no such instrument shall be a Permitted Investment if such
instrument (i) evidences the right to receive interest only payments with
respect to the obligations underlying such instrument, (ii) is purchased at a
premium or (iii) is purchased at a deep discount; provided further that no
such instrument shall be a Permitted Investment (A) if such instrument
evidences principal and interest payments derived from obligations underlying
such instrument and the 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, or (B) if it may be redeemed at a price
below the purchase price (the foregoing clause (B) not to apply to investments
in units of money market funds pursuant to clause (vii) above); provided
further that no amount beneficially owned by any REMIC (including, without
limitation, any amounts collected by the Master Servicer but not yet deposited
in the Certificate Account) may be invested in investments (other than money
market funds) treated as equity interests for Federal income tax purposes,
unless the Master Servicer shall receive an Opinion of Counsel, at the expense
of Master Servicer, to the effect that such investment will not adversely
affect the status of any such REMIC as a REMIC under the Code or result in
imposition of a tax on any such REMIC. Permitted Investments that are subject
to prepayment or call may not be purchased at a price in excess of par.

            Permitted Transferee: Any Person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality
of any of the foregoing, (ii) a foreign government, International Organization
or any agency or instrumentality of either of the foregoing, (iii) an
organization (except certain farmers' cooperatives described in section 521 of
the Code) that is exempt from tax imposed by Chapter 1 of the Code (including
the tax imposed by section 511 of the Code on unrelated business taxable
income) on any excess inclusions (as defined in section 860E(c)(1) of the
Code) with respect to any Class A-R Certificate, (iv) rural electric and
telephone cooperatives described in section 1381(a)(2)(C) of the Code, (v) an
"electing large partnership" as defined in section 775 of the Code, (vi) a
Person that is not a citizen or resident of the United States, a corporation,
partnership, or other entity (treated as a corporation or a partnership for
federal income tax purposes) created or organized in or under the

                                      37
<PAGE>

laws of the United States, any state thereof or the District of Columbia, or
an estate whose income from sources without the United States is includible in
gross income for United States federal income tax purposes regardless of its
connection with the conduct of a trade or business within the United States,
or 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 trustor
unless such Person has furnished the transferor and the Trustee with a duly
completed Internal Revenue Service Form W-8ECI, and (vii) any other Person so
designated by the Trustee based upon an Opinion of Counsel that the Transfer
of an Ownership Interest in a Class A-R Certificate to such Person may cause
any REMIC formed hereunder to fail to qualify as a REMIC at any time that any
Certificates are Outstanding. The terms "United States," "State" and
"International Organization" shall have the meanings set forth in section 7701
of the Code or successor provisions. A corporation will not be treated as an
instrumentality of the United States or of any State or political subdivision
thereof for these purposes 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 government unit.

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

            Plan: An "employee benefit plan" as defined in section 3(3) of
ERISA that is subject to Title I of ERISA, a "plan" as defined in section 4975
of the Code that is subject to section 4975 of the Code, or any Person
investing on behalf of or with plan assets (as defined in 29 CFR ss.2510.3-101
or otherwise under ERISA) of such an employee benefit plan or plan.

            Pool Tax Net Rate Cap: As defined in the Preliminary Statement.

            Pool Stated Principal Balance: The aggregate of the Stated
Principal Balances of the Mortgage Loans which were Outstanding Mortgage
Loans.

            Pre-Funded Amount: The amount deposited in the Pre-Funding Account
on the Closing Date, which shall equal $471.51.

            Pre-Funding Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.05 in the name of the Trustee
for the benefit of the Certificateholders and designated "The Bank of New
York, in trust for registered holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-3." Funds in the Pre-Funding Account shall be held
in trust for the Certificateholders for the uses and purposes set forth in
this Agreement and shall not be a part of any REMIC created hereunder,
provided, however that any investment income earned from Permitted Investments
made with funds in the Pre-Funding Account will be for the account of CHL.

            Prepayment Assumption: The applicable rate of prepayment, as
described in the Prospectus Supplement relating to the Certificates.

            Prepayment Charge: With respect to any Mortgage Loan, the charges
or premiums, if any, due in connection with a full or partial prepayment of
such Mortgage Loan

                                      38
<PAGE>

within the related Prepayment Charge Period in accordance with the terms
thereof (other than any Master Servicer Prepayment Charge Payment Amount).

            Prepayment Charge Period: With respect to any Mortgage Loan, the
period of time during which a Prepayment Charge may be imposed.

            Prepayment Charge Schedule: As of the Initial Cut-off Date with
respect to each Initial Mortgage Loan and as of the Subsequent Cut-off Date
with respect to each Subsequent Mortgage Loan, a list attached hereto as
Schedule I (including the Prepayment Charge Summary attached thereto), setting
forth the following information with respect to each Prepayment Charge:

                  (i) the Mortgage Loan identifying number;

                  (ii) a code indicating the type of Prepayment Charge;

                  (iii) the state of origination of the related Mortgage Loan;

                  (iv) the date on which the first monthly payment was due on
            the related Mortgage Loan;

                  (v) the term of the related Prepayment Charge; and

                  (vi) the principal balance of the related Mortgage Loan as
            of the Cut-off Date.

            As of the Closing Date, the Prepayment Charge Schedule shall
contain the necessary information for each Initial Mortgage Loan. The
Prepayment Charge Schedule shall be amended by the Master Servicer upon the
sale of any Subsequent Mortgage Loans to the Trust Fund. In addition, the
Prepayment Charge Schedule shall be amended from time to time by the Master
Servicer in accordance with the provisions of this Agreement and a copy of
each related amendment shall be furnished by the Master Servicer to the Class
P and Class C Certificateholders and the NIM Insurer.

            Prepayment Interest Excess: With respect to any Distribution Date,
for each Mortgage Loan that was the subject of a Principal Prepayment during
the period from the related Due Date to the end of the related Prepayment
Period, any payment of interest received in connection therewith (net of any
applicable Servicing Fee) representing interest accrued for any portion of
such month of receipt.

            Prepayment Interest Shortfall: With respect to any Distribution
Date, for each Mortgage Loan that was the subject of a partial Principal
Prepayment or a Principal Prepayment in full during the period from the
beginning of the related Prepayment Period to the Due Date in such Prepayment
Period (other than a Principal Prepayment in full resulting from the purchase
of a Mortgage Loan pursuant to Section 2.02, 2.03, 2.04, 3.12 or 9.01 hereof)
and for each Mortgage Loan that became a Liquidated Mortgage Loan during the
related Due Period, the amount, if any, by which (i) one month's interest at
the applicable Net Mortgage Rate on the Stated Principal Balance of such
Mortgage Loan immediately prior to such prepayment (or

                                      39
<PAGE>

liquidation) or in the case of a partial Principal Prepayment on the amount of
such prepayment (or Liquidation Proceeds) exceeds (ii) the amount of interest
paid or collected in connection with such Principal Prepayment or such
Liquidation Proceeds.

            Prepayment Period: As to any Distribution Date and related Due
Date, the period beginning with the opening of business on the sixteenth day
of the calendar month preceding the month in which such Distribution Date
occurs (or, with respect to the first Distribution Date, the period beginning
with the opening of business on the day immediately following the Initial
Cut-off Date) and ending on the close of business on the fifteenth day of the
month in which such Distribution Date occurs.

            Prime Rate: The prime commercial lending rate of The Bank of New
York, as publicly announced to be in effect from time to time. The Prime Rate
shall be adjusted automatically, without notice, on the effective date of any
change in such prime commercial lending rate. The Prime Rate is not
necessarily The Bank of New York's lowest rate of interest.

            Principal Distribution Amount: With respect to each Distribution
Date and a Loan Group, the sum of (i) the Principal Remittance Amount for such
Loan Group for such Distribution Date less any portion of such amount used to
cover any payment due to the Swap Counterparty with respect to such
Distribution Date pursuant to Section 4.09, (ii) the Extra Principal
Distribution Amount for such Loan Group for such Distribution Date, and (iii)
with respect to the Distribution Date immediately following the end of the
Funding Period, the amount, if any, remaining in the Pre-Funding Account at
the end of the Funding Period (net of any investment income therefrom)
allocable to such Loan Group, minus (iv) (a) the amount of any Group 1
Overcollateralization Reduction Amount, in the case of Loan Group 1, (b) the
amount of any Group 2 Overcollateralization Reduction Amount, in the case of
Loan Group 2 and (c) the amount of Group 3 Overcollateralization Reduction
Amount, in the case of Loan Group 3.

            Principal Prepayment: Any Mortgagor payment or other recovery of
(or proceeds with respect to) principal on a Mortgage Loan (including loans
purchased or repurchased under Sections 2.02, 2.03, 2.04, 3.12 and 9.01
hereof) that is received in advance of its scheduled Due Date to the extent it
is not accompanied by an amount as to interest representing scheduled interest
due on any date or dates in any month or months subsequent to the month of
prepayment. Partial Principal Prepayments shall be applied by the Master
Servicer in accordance with the terms of the related Mortgage Note.

            Principal Relocation Payment: A payment from any Loan Group to a
REMIC 2 Interest other than a Regular Interest corresponding to that Loan
Group as provided in the Preliminary Statement. Principal Relocation Payments
shall be made of principal allocations comprising the Principal Remittance
Amount from a Loan Group and shall include a proportionate allocation of
Realized Losses from the Mortgage Loans of such Loan Group.

            Principal Remittance Amount: With respect to the Mortgage Loans in
each Loan Group and any Distribution Date, (a) the sum, without duplication,
of: (i) the scheduled principal collected with respect to the Mortgage Loans
during the related Due Period or advanced with respect to such Distribution
Date, (ii) Principal Prepayments collected in the related Prepayment

                                      40
<PAGE>

Period, with respect to the Mortgage Loans, (iii) the Stated Principal Balance
of each Mortgage Loan that was repurchased by a Seller or purchased by the
Master Servicer with respect to such Distribution Date, (iv) the amount, if
any, by which the aggregate unpaid principal balance of any Replacement
Mortgage Loans delivered by the Sellers in connection with a substitution of a
Mortgage Loan is less than the aggregate unpaid principal balance of any
Deleted Mortgage Loans and (v) all Liquidation Proceeds (to the extent such
Liquidation Proceeds related to principal) and Subsequent Recoveries collected
during the related Due Period; less (b) all Advances relating to principal and
certain expenses reimbursable pursuant to Section 6.03 and reimbursed during
the related Due Period, in each case with respect to such Loan Group.

            Principal Reserve Fund: The separate Eligible Account created and
initially maintained by the Trustee pursuant to Section 3.08 in the name of
the Trustee for the benefit of the Certificateholders and designated "The Bank
of New York in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-3". Funds in the Principal Reserve Fund shall be
held in trust for the Certificateholders for the uses and purposes set forth
in this Agreement.

            Private Certificates: The Class C and Class P Certificates.

            Prospectus: The prospectus dated February 23, 2006, relating to
asset-backed securities to be sold by the Depositor.

            Prospectus Supplement: The prospectus supplement dated February
23, 2006, relating to the public offering of the certain Classes of
Certificates offered thereby.

            PTCE 95-60: As defined in Section 5.02(b).

            PUD: A Planned Unit Development.

            Purchase Price: With respect to any Mortgage Loan (x) required to
be (1) repurchased by a Seller or purchased by the Master Servicer, as
applicable, pursuant to Section 2.02, 2.03 or 3.12 hereof or (2) repurchased
by the Depositor pursuant to Section 2.04 hereof, or (y) that the Master
Servicer has a right to purchase pursuant to Section 3.12 hereof, an amount
equal to the sum of (i) 100% of the unpaid principal balance (or, if such
purchase or repurchase, as the case may be, is effected by the Master
Servicer, the Stated Principal Balance) of the Mortgage Loan as of the date of
such purchase, (ii) accrued interest thereon at the applicable Mortgage Rate
(or, if such purchase or repurchase, as the case may be, is effected by the
Master Servicer, at the Net Mortgage Rate) from (a) the date through which
interest was last paid by the Mortgagor (or, if such purchase or repurchase,
as the case may be, is effected by the Master Servicer, the date through which
interest was last advanced and not reimbursed by the Master Servicer) to (b)
the Due Date in the month in which the Purchase Price is to be distributed to
Certificateholders and (iii) any costs, expenses and damages incurred by the
Trust Fund resulting from any violation of any predatory or abusive lending
law in connection with such Mortgage Loan.

            Rating Agency: Each of Moody's and S&P. If any such organization
or its successor is no longer in existence, "Rating Agency" shall be a
nationally recognized statistical rating organization, or other comparable
Person, designated by the Depositor, notice of which

                                      41
<PAGE>

designation shall be given to the Trustee. References herein to a given rating
category of a Rating Agency shall mean such rating category without giving
effect to any modifiers.

            Realized Loss: With respect to each Liquidated Mortgage Loan, an
amount (not less than zero or more than the Stated Principal Balance of the
Mortgage Loan) as of the date of such liquidation, equal to (i) the Stated
Principal Balance of such Liquidated Mortgage Loan as of the date of such
liquidation, minus (ii) the Liquidation Proceeds, if any, received in
connection with such liquidation during the month in which such liquidation
occurs, to the extent applied as recoveries of principal of the Liquidated
Mortgage Loan. With respect to each Mortgage Loan that has become the subject
of a Deficient Valuation, (i) if the value of the related Mortgaged Property
was reduced below the principal balance of the related Mortgage Note, the
amount by which the value of the Mortgaged Property was reduced below the
principal balance of the related Mortgage Note, and (ii) if the principal
amount due under the related Mortgage Note has been reduced, the difference
between the principal balance of the Mortgage Loan outstanding immediately
prior to such Deficient Valuation and the principal balance of the Mortgage
Loan as reduced by the Deficient Valuation. With respect to each Mortgage Loan
that has become the subject of a Debt Service Reduction and any Distribution
Date, the amount, if any, by which the related Scheduled Payment was reduced.

            Record Date: With respect to any Distribution Date and the
Interest-Bearing Certificates, the Business Day immediately preceding such
Distribution Date, or if such Certificates are no longer Book-Entry
Certificates, the last Business Day of the month preceding the month of such
Distribution Date. With respect to the Class A-R, Class C and Class P
Certificates, the last Business Day of the month preceding the month of a
Distribution Date.

            Reference Bank Rate: With respect to any Accrual Period, the
arithmetic mean (rounded upwards, if necessary, to the nearest whole multiple
of 0.03125%) of the offered rates for United States dollar deposits for one
month that are quoted by the Reference Banks as of 11:00 a.m., New York City
time, on the related Interest Determination Date to prime banks in the London
interbank market for a period of one month in amounts approximately equal to
the outstanding aggregate Certificate Principal Balance of the
Interest-Bearing Certificates on such Interest Determination Date, provided
that at least two such Reference Banks provide such rate. If fewer than two
offered rates appear, the Reference Bank Rate will be the arithmetic mean
(rounded upwards, if necessary, to the nearest whole multiple of 0.03125%) of
the rates quoted by one or more major banks in New York City, selected by the
Trustee, 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
Interest-Bearing Certificates on such Interest Determination Date.

            Reference Banks: Barclays Bank PLC, Deutsche Bank and NatWest,
N.A., provided that if any of the foregoing banks are not suitable to serve as
a Reference Bank, then any leading banks selected by the Trustee which are
engaged in transactions in Eurodollar deposits in the international
Eurocurrency market (i) with an established place of business in London,
England, (ii) not controlling, under the control of or under common control
with the Depositor, CHL or the Master Servicer and (iii) which have been
designated as such by the Trustee.

                                      42
<PAGE>

            Refinancing Mortgage Loan: Any Mortgage Loan originated in
connection with the refinancing of an existing mortgage loan.

            Regular Certificate: Any Certificate other than the Class A-R
Certificates.

            Regulation AB: Subpart 229.1100 - Asset Backed Securities
(Regulation AB), 17 C.F.R. ss.ss.229.1100-229.1123, as such may be amended
from time to time, and subject to such clarification and interpretation as
have been provided by the Commission in the adopting release (Asset-Backed
Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531
(Jan. 7, 2005)) or by the staff of the Commission, or as may be provided by
the Commission or its staff from time to time and publicly available.

            Relief Act: The Servicemembers Civil Relief Act.

            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.

            Remittance Report: A report prepared by the Master Servicer and
delivered to the Trustee and the NIM Insurer in accordance with Section 4.04.

            REO Property: A Mortgaged Property acquired by the Master Servicer
through foreclosure or deed-in-lieu of foreclosure in connection with a
defaulted Mortgage Loan.

            Replacement Mortgage Loan: A Mortgage Loan substituted by a Seller
for a Deleted Mortgage Loan which must, on the date of such substitution, as
confirmed in a Request for File Release, (i) have a Stated Principal Balance,
after deduction of the principal portion of the Scheduled Payment due in the
month of substitution, not in excess of, and not less than 90% of the Stated
Principal Balance of the Deleted Mortgage Loan; (ii) with respect to any Fixed
Rate Mortgage Loan, have a Mortgage Rate not less than or no more than 1% per
annum higher than the Mortgage Rate of the Deleted Mortgage Loan and, with
respect to any Adjustable Rate Mortgage Loan: (a) have a Maximum Mortgage Rate
no more than 1% per annum higher or lower than the Maximum Mortgage Rate of
the Deleted Mortgage Loan; (b) have a Minimum Mortgage Rate no more than 1%
per annum higher or lower than the Minimum Mortgage Rate of the Deleted
Mortgage Loan; (c) have the same Index and intervals between Adjustment Dates
as that of the Deleted Mortgage Loan; (d) have a Gross Margin not more than 1%
per annum higher or lower than that of the Deleted Mortgage Loan; and (e) have
an Initial Periodic Rate Cap and a Subsequent Periodic Rate Cap each not more
than 1% lower than that of the Deleted Mortgage Loan; (iii) have the same or
higher credit quality characteristics than that of the Deleted Mortgage Loan;
(iv) be accruing interest at a rate not more than 1% per annum higher or lower
than that of the Deleted Mortgage Loan; (v) have a Loan-to-Value Ratio no
higher than that of the Deleted Mortgage Loan; (vi) have a remaining term to
maturity not greater than (and not more than one year less than) that of the
Deleted Mortgage Loan; (vii) not permit conversion of the Mortgage Rate from a
fixed rate to a variable rate or vice versa; (viii) provide for a Prepayment
Charge on terms substantially similar to those of the Prepayment Charge, if
any, of the Deleted Mortgage Loan; (ix) have the same occupancy type and lien
priority as the Deleted

                                      43
<PAGE>

Mortgage Loan; (x) be covered by the Mortgage Insurance Policy if the Deleted
Mortgage Loan was covered by the Mortgage Insurance Policy; and (xi) comply
with each representation and warranty set forth in Section 2.03 as of the date
of substitution; provided, however, that notwithstanding the foregoing, to the
extent that compliance with clause (xi) of this definition would cause a
proposed Replacement Mortgage Loan to fail to comply with one or more of
clauses (i), (ii), (iv), (viii) and/or (ix) of this definition, then such
proposed Replacement Mortgage Loan must comply with clause (xi) and need not
comply with one or more of clauses (i), (ii), (iv), (viii) and/or (ix), to the
extent, and only to the extent, necessary to assure that the Replacement
Mortgage Loan otherwise complies with clause (xi).

            Reportable Event: Any event required to be reported on Form 8-K,
and in any event, the following:

            (a) entry into a definitive agreement related to the Trust Fund,
the Certificates or the Mortgage Loans, or an amendment to a Transaction
Document, even if the Depositor is not a party to such agreement (e.g., a
servicing agreement with a servicer contemplated by Item 1108(a)(3) of
Regulation AB);

            (b) termination of a Transaction Document (other than by
expiration of the agreement on its stated termination date or as a result of
all parties completing their obligations under such agreement), even if the
Depositor is not a party to such agreement (e.g., a servicing agreement with a
servicer contemplated by Item 1108(a)(3) of Regulation AB);

            (c) with respect to the Master Servicer only, if the Master
Servicer becomes aware of any bankruptcy or receivership with respect to CHL,
the Depositor, the Master Servicer, any Subservicer, the Trustee, the Swap
Counterparty, any enhancement or support provider contemplated by Items
1114(b) or 1115 of Regulation AB, or any other material party contemplated by
Item 1101(d)(1) of Regulation AB;

            (d) with respect to the Trustee, the Master Servicer and the
Depositor only, the occurrence of an early amortization, performance trigger
or other event, including an Event of Default under this Agreement;

            (e) any amendment to this Agreement;

            (f) the resignation, removal, replacement, substitution of the
Master Servicer, any Subservicer, the Trustee or any co-trustee;

            (g) with respect to the Master Servicer only, if the Master
Servicer becomes aware that (i) any material enhancement or support specified
in Item 1114(a)(1) through (3) of Regulation AB or Item 1115 of Regulation AB
that was previously applicable regarding one or more classes of the
Certificates has terminated other than by expiration of the contract on its
stated termination date or as a result of all parties completing their
obligations under such agreement; (ii) any material enhancement specified in
Item 1114(a)(1) through (3) of Regulation AB or Item 1115 of Regulation AB has
been added with respect to one or more classes of the Certificates; or (iii)
any existing material enhancement or support specified in Item 1114(a)(1)
through (3) of Regulation AB or Item 1115 of Regulation AB with respect to one
or more classes of the Certificates has been materially amended or modified;
and

                                      44
<PAGE>

            (h) with respect to the Trustee, the Master Servicer and the
Depositor only, a required distribution to Holders of the Certificates is not
made as of the required Distribution Date under this Agreement.

            Reporting Subcontractor: With respect to the Master Servicer or
the Trustee, any Subcontractor determined by such Person pursuant to Section
11.08(b) to be "participating in the servicing function" within the meaning of
Item 1122 of Regulation AB. References to a Reporting Subcontractor shall
refer only to the Subcontractor of such Person and shall not refer to
Subcontractors generally.

            Representing Party: As defined in Section 2.03(e).

            Request for Document Release: A Request for Document Release
submitted by the Master Servicer to the Co-Trustee, substantially in the form
of Exhibit M.

            Request for File Release: A Request for File Release submitted by
the Master Servicer to the Co-Trustee, substantially in the form of Exhibit N.

            Required Carryover Reserve Fund Deposit: With respect to any
Distribution Date, an amount equal to the excess of (i) $1,000 over (ii) the
amount of funds on deposit in the Carryover Reserve Fund.

            Required Insurance Policy: With respect to any Mortgage Loan, any
insurance policy that is required to be maintained from time to time under
this Agreement, including with respect to the Covered Mortgage Loans, the
Mortgage Insurance Policy.

            Responsible Officer: When used with respect to the Trustee, any
Vice President, any Assistant Vice President, the Secretary, 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 also to whom, with respect to a particular matter, such matter is
referred because of such officer's knowledge of and familiarity with the
particular subject.

            Rolling Sixty-Day Delinquency Rate: With respect to any
Distribution Date on or after the Stepdown Date and any Loan Group or Loan
Groups, the average of the Sixty-Day Delinquency Rates for such Loan Group or
Loan Groups and such Distribution Date and the two immediately preceding
Distribution Dates.

            Rule 144A: Rule 144A under the Securities Act.

            Rule 144A Letter: As defined in Section 5.02(b).

            S&P: Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc. and its successors.

            Sarbanes-Oxley Certification: As defined in Section 11.05.

                                      45
<PAGE>

            Scheduled Payment: With respect to any Mortgage Loan, the
scheduled monthly payment of principal and/or interest due on any Due Date 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 any similar state or
local law; (b) without giving effect to any extension granted or agreed to by
the Master Servicer pursuant to Section 3.05(a); and (c) on the assumption
that all other amounts, if any, due under such Mortgage Loan are paid when
due.

            Securities Act: The Securities Act of 1933, as amended.

            Sellers: CHL, in its capacity as seller of the CHL Mortgage Loans
to the Depositor, Park Monaco, in its capacity as seller of the Park Monaco
Mortgage Loans to the Depositor and Park Sienna, in its capacity as seller of
the Park Sienna Mortgage Loans to the Depositor.

            Seller Shortfall Interest Requirement: With respect to the
Distribution Date in each of March 2006, April 2006 and May 2006 is the sum
of:

            (a) the product of: (1) the excess of the aggregate Stated
Principal Balance for such Distribution Date of all the Mortgage Loans in the
Mortgage Pool (including the Subsequent Mortgage Loans, if any) owned by the
Trust Fund at the beginning of the related Due Period, over the aggregate
Stated Principal Balance for such Distribution Date of such Mortgage Loans
(including such Subsequent Mortgage Loans, if any) that have a scheduled
payment of interest due in the related Due Period, and (2) a fraction, the
numerator of which is the weighted average Net Mortgage Rate of all the
Mortgage Loans in the Mortgage Pool (including such Subsequent Mortgage Loans,
if any) (weighted on the basis of the Stated Principal Balances thereof for
such Distribution Date) and the denominator of which is 12; and

            (b) the lesser of:

                (i) the product of: (1) the amount on deposit in the
Pre-Funding Account at the beginning of the related Due Period, and (2) a
fraction, the numerator of which is the weighted average Net Mortgage Rate of
the Mortgage Loans (including Subsequent Mortgage Loans, if any) owned by the
Trust Fund at the beginning of the related Due Period (weighted on the basis
of the Stated Principal Balances thereof for such Distribution Date) and the
denominator of which is 12; and

                (ii) the excess of (x) the amount of Current Interest and
Interest Carry Forward Amount due and payable on the Interest-Bearing
Certificates for such Distribution Date, over (y) the sum of (1) Interest
Funds (less any portion of Interest Funds allocated to the Swap Trust to cover
any Net Swap Payment due to the Swap Counterparty with respect to such
Distribution Date) otherwise available to pay the amount specified in clause
(b)(ii)(x) (after giving effect to the addition of any amounts in clause (a)
of this definition of Seller Shortfall Interest Requirement to Interest Funds
for such Distribution Date) and (2) any Net Swap Payment received by the Swap
Contract Administrator from the Swap Counterparty for such

                                      46
<PAGE>

Distribution Date and allocated to the Swap Trust to pay Current Interest and
Interest Carry Forward Amounts on the Interest-Bearing Certificates for such
Distribution Date.

            Senior Certificates: The Class A and Class A-R Certificates.

            Senior Enhancement Percentage: With respect to a Distribution Date
on or after the Stepdown Date, the fraction (expressed as a percentage) (1)
the numerator of which is the excess of (a) the aggregate Stated Principal
Balance of the Mortgage Loans for the preceding Distribution Date over (b) (i)
before the Certificate Principal Balances of the Senior Certificates have been
reduced to zero, the sum of the Certificate Principal Balances of the Senior
Certificates, or (ii) after the Certificate Principal Balances of the Senior
Certificates have been reduced to zero, the Certificate Principal Balance of
the most senior Class of Subordinate Certificates outstanding, as of the
related Master Servicer Advance Date, and (2) the denominator of which is the
aggregate Stated Principal Balance of the Mortgage Loans for the preceding
Distribution Date.

            Servicing Advances: All customary, reasonable and necessary "out
of pocket" costs and expenses incurred in the performance by the Master
Servicer of its servicing obligations hereunder, including, but not limited
to, the cost of (i) the preservation, restoration and protection of a
Mortgaged Property, (ii) any enforcement or judicial proceedings, including
foreclosures, (iii) the management and liquidation of any REO Property and
(iv) compliance with the obligations under Section 3.10.

            Servicing Criteria: The "servicing criteria" set forth in Item
1122(d) of Regulation AB.

            Servicing Fee: As to each Mortgage Loan and any Distribution Date,
an amount equal to one month's interest at the Servicing Fee Rate on the
Stated Principal Balance of such Mortgage Loan for the preceding Distribution
Date or, in the event of any payment of interest that accompanies a Principal
Prepayment in full made by the Mortgagor, interest at the Servicing Fee Rate
on the Stated Principal Balance of such Mortgage Loan for the period covered
by such payment of interest.

            Servicing Fee Rate: With respect to each Mortgage Loan, 0.50% per
annum.

            Servicing Officer: Any officer of the Master Servicer involved in,
or responsible for, the administration and servicing of the Mortgage Loans
whose name and facsimile signature appear on a list of servicing officers
furnished to the Trustee by the Master Servicer on the Closing Date pursuant
to this Agreement, as such list may from time to time be amended.

            Sixty-Day Delinquency Rate: With respect to any Distribution Date
on or after the Stepdown Date, a fraction, expressed as a percentage, the
numerator of which is the aggregate Stated Principal Balance for such
Distribution Date of all Mortgage Loans 60 or more days delinquent as of the
close of business on the last day of the calendar month preceding such
Distribution Date (including Mortgage Loans in foreclosure, bankruptcy and REO
Properties) and the denominator of which is the aggregate Stated Principal
Balance for such Distribution Date of all Mortgage Loans.

                                      47
<PAGE>

            Stated Principal Balance: With respect to any Mortgage Loan or
related REO Property (i) as of the Cut-off Date, the unpaid principal balance
of the Mortgage Loan as of such date (before any adjustment to the
amortization schedule for any moratorium or similar waiver or grace period),
after giving effect to any partial prepayments or Liquidation Proceeds
received prior to such date and to the payment of principal due on or prior to
such date and irrespective any delinquency in payment by the related
Mortgagor, and (ii) as of any other Distribution Date, the Stated Principal
Balance of the Mortgage Loan as of its Cut-off Date, minus the sum of (a) the
principal portion of the Scheduled Payments (x) due with respect to such
Mortgage Loan during each Due Period ending prior to such Distribution Date
and (y) that were received by the Master Servicer as of the close of business
on the Determination Date related to such Distribution Date or with respect to
which Advances were made as of the Master Servicer Advance Date related to
such Distribution Date, (b) all Principal Prepayments with respect to such
Mortgage Loan received by the Master Servicer during each Prepayment Period
ending prior to such Distribution Date and (c) all Liquidation Proceeds
collected with respect to such Mortgage Loan during each Due Period ending
prior to such Distribution Date, to the extent applied by the Master Servicer
as recoveries of principal in accordance with Section 3.12. The Stated
Principal Balance of any Mortgage Loan that becomes a Liquidated Mortgage Loan
will be zero on each date following the Due Period in which such Mortgage Loan
becomes a Liquidated Mortgage Loan. References herein to the Stated Principal
Balance of the Mortgage Loans at any time shall mean the aggregate Stated
Principal Balance of all Mortgage Loans in the Trust Fund as of such time, and
references herein to the Stated Principal Balance of a Loan Group at any time
shall mean the aggregate Stated Principal Balance of all Mortgage Loans in
such Loan Group at such time.

            Stepdown Date: The earlier to occur of (a) the Distribution Date
on which the aggregate Certificate Principal Balance of the Senior
Certificates is reduced to zero, and (b) the later to occur of (x) the
Distribution Date in March 2009 and (y) the first Distribution Date on which
the aggregate Certificate Principal Balance of the Senior Certificates (after
calculating anticipated distributions on such Distribution Date) is less than
or equal to 58.50% of the aggregate Stated Principal Balance of the Mortgage
Loans for such Distribution Date.

            Stepdown Target Subordination Percentage: For each Class of
Subordinate Certificates, the respective percentage indicated in the following
table:

                                               Stepdown Target
                                                Subordination
                                                 Percentage
                                             -------------------
            Class M-1....................           34.20%
            Class M-2....................           27.50%
            Class M-3....................           23.50%
            Class M-4....................           20.00%
            Class M-5....................           16.40%
            Class M-6....................           13.20%
            Class M-7....................           10.10%
            Class M-8....................            7.50%
            Class B......................            5.50%

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<PAGE>

            Subcontractor: Any vendor, subcontractor or other Person that is
not responsible for the overall servicing (as "servicing" is commonly
understood by participants in the mortgage-backed securities market) of
Mortgage Loans but performs one or more discrete functions identified in Item
1122(d) of Regulation AB with respect to the Mortgage Loans under the
direction or authority of the Master Servicer or a Subservicer or the Trustee,
as the case may be.

            Subordinate Certificates: The Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B
Certificates.

            Subordinate Class Principal Distribution Amount: With respect to
any Distribution Date and any Class of Subordinate Certificates, the excess of
(1) the sum of (a) the aggregate Certificate Principal Balance of the Class A
Certificates (after taking into account distribution of the Class A Principal
Distribution Target Amount for such Distribution Date), (b) the aggregate
Certificate Principal Balance of any Class(es) of Subordinate Certificates
that are senior to the subject Class (in each case, after taking into account
distribution of the Subordinate Class Principal Distribution Amount(s) for
such senior Class(es) of Certificates for such Distribution Date), and (c) the
Certificate Principal Balance of the subject Class of Subordinate Certificates
immediately prior to such Distribution Date over (2) the lesser of (a) the
product of (x) 100% minus the Stepdown Target Subordination Percentage for the
subject Class of Certificates and (y) the aggregate Stated Principal Balance
of the Mortgage Loans for such Distribution Date and (b) the aggregate Stated
Principal Balance of the Mortgage Loans for such Distribution Date minus the
OC Floor; provided, however, that if such Class of Subordinate Certificates is
the only Class of Subordinate Certificates outstanding on such Distribution
Date, that Class will be entitled to receive the entire remaining Principal
Distribution Amount for Loan Group 1, Loan Group 2 and Loan Group 3 until the
Certificate Principal Balance thereof is reduced to zero.

            Subordinate Component Balance: With respect to any Distribution
Date and for each of Loan Group 1, Loan Group 2 and Loan Group 3, the excess
of the aggregate Stated Principal Balance of the Mortgage Loans in such Loan
Group as of the first day of the related Due Period (after giving effect to
Principal Prepayments received in the Prepayment Period ending during such Due
Period) over the Certificate Principal Balance of the Class 1-A Certificates
in the case of Loan Group 1, the aggregate Certificate Principal Balance of
the Class 2-A Certificates in the case of Loan Group 2 and the aggregate
Certificate Principal Balance of the Class 3-A Certificates in the case of
Loan Group 3, in each case immediately prior to that Distribution Date.

            Subordinate Net Rate Cap: With respect to any Distribution Date
and each Class of Subordinate Certificates, the weighted average of the Class
1-A Net Rate Cap, the Class 2-A Net Rate Cap and the Class 3-A Net Rate Cap
weighted on the basis of the excess (if any) of the sum of the aggregate
Stated Principal Balance of the Mortgage Loans in the related Loan Group and
the amount on deposit in the Pre-Funding Account in respect of that Loan Group
over the outstanding Certificate Principal Balance of the related Senior
Certificates.

            Subordinate Tax Net Rate Cap: With respect to any Distribution
Date and each Class of Subordinate Certificates, the weighted average of the
Loan Group 1 Tax Net Rate Cap, the Loan Group 2 Tax Net Rate Cap and the Loan
Group 3 Tax Net Rate Cap, weighted on the

                                      49
<PAGE>

basis of the excess (if any) of the sum of the aggregate Stated Principal
Balance of the Mortgage Loans in the related Loan Group and the amount on
deposit in the Pre-Funding Account in respect of that Loan Group over the
outstanding Certificate Principal Balance of the related Senior Certificates.

            Subsequent Certificate Account Deposit: With respect to any
Subsequent Transfer Date, an amount equal to the aggregate of all amounts in
respect of (i) principal of the related Subsequent Mortgage Loans due after
the related Subsequent Cut-off Date and received by the Master Servicer on or
before such Subsequent Transfer Date and not applied in computing the Cut-off
Date Principal Balance thereof and (ii) interest on the such Subsequent
Mortgage Loans due after such Subsequent Cut-off Date and received by the
Master Servicer on or before the Subsequent Transfer Date.

            Subsequent Cut-off Date: In the case of any Subsequent Mortgage
Loan, the later of (x) the first day of the month of the related Subsequent
Transfer Date and (y) the date of origination of such Subsequent Mortgage
Loan.

            Subsequent Mortgage Loan: Any Mortgage Loan conveyed to the
Trustee on a Subsequent Transfer Date, and listed on the related Loan Number
and Borrower Identification Mortgage Loan Schedule delivered pursuant to
Section 2.01(f). When used with respect to a single Subsequent Transfer Date,
"Subsequent Mortgage Loan" shall mean a Subsequent Mortgage Loan conveyed to
the Trustee on such Subsequent Transfer Date.

            Subsequent Periodic Rate Cap: With respect to each Adjustable Rate
Mortgage Loan, the percentage specified in the related Mortgage Note that
limits permissible increases and decreases in the Mortgage Rate on any
Adjustment Date (other than the initial Adjustment Date).

            Subsequent Recoveries: As to any Distribution Date, with respect
to a Liquidated Mortgage Loan that resulted in a Realized Loss in a prior
calendar month, unexpected amounts received by the Master Servicer (net of any
related expenses permitted to be reimbursed pursuant to Section 3.08 and 3.12)
specifically related to such Liquidated Mortgage Loan after the classification
of such Mortgage Loan as a Liquidated Mortgage Loan.

            Subsequent Transfer Agreement: A Subsequent Transfer Agreement
substantially in the form of Exhibit P hereto, executed and delivered by the
Sellers, the Depositor and the Trustee as provided in Section 2.01(d).

            Subsequent Transfer Date: For any Subsequent Transfer Agreement,
the "Subsequent Transfer Date" identified in such Subsequent Transfer
Agreement; provided, however, the Subsequent Transfer Date for any Subsequent
Transfer Agreement must be a Business Day and may not be a date earlier than
the date on which the Subsequent Transfer Agreement is executed and delivered
by the parties thereto pursuant to Section 2.01(d).

            Subsequent Transfer Date Purchase Amount: With respect to any
Subsequent Transfer Date, the "Subsequent Transfer Date Purchase Amount"
identified in the related Subsequent Transfer Agreement which shall be an
estimate of the aggregate Stated Principal Balances of the Subsequent Mortgage
Loans identified in such Subsequent Transfer Agreement.

                                      50
<PAGE>

            Subsequent Transfer Date Transfer Amount: With respect to any
Subsequent Transfer Date, an amount equal to the lesser of (i) the aggregate
Stated Principal Balances as of the related Subsequent Cut-off Dates of the
Subsequent Mortgage Loans conveyed on such Subsequent Transfer Date, as listed
on the related Loan Number and Borrower Identification Mortgage Loan Schedule
delivered pursuant to Section 2.01(f) and (ii) the amount on deposit in the
Pre-Funding Account.

            Subservicer: As defined in Section 3.02(a).

            Subservicing Agreement: As defined in Section 3.02(a).

            Substitution Adjustment Amount: The meaning ascribed to such term
pursuant to Section 2.03(e).

            Substitution Amount: With respect to any Mortgage Loan substituted
pursuant to Section 2.03(e), the excess of (x) the principal balance of the
Mortgage Loan that is substituted for, over (y) the principal balance of the
related substitute Mortgage Loan, each balance being determined as of the date
of substitution.

            Swap Account: The separate Eligible Account created and initially
maintained by the Swap Trustee pursuant to Section 4.09.

            Swap Contract: The transaction evidenced by the Confirmation (as
assigned to the Swap Contract Administrator pursuant to the Swap Contract
Assignment Agreement), a form of which is attached hereto as Exhibit U.

            Swap Contract Administration Agreement: The swap contract
administration agreement dated as of the Closing Date among CHL, the Trustee
and the Swap Contract Administrator, a form of which is attached hereto as
Exhibit V-2.

            Swap Contract Administrator: The Bank of New York, in its capacity
as swap contract administrator under the Swap Contract Administration
Agreement.

            Swap Contract Assignment Agreement: The Assignment Agreement dated
as of the Closing Date among CHL, the Swap Contract Administrator and the Swap
Counterparty, a form of which is attached hereto as Exhibit V-1.

            Swap Counterparty: Lehman Brothers Special Financing Inc. and its
successors.

            Swap Guarantee: The guaranty, dated as of February 27, 2006, by
the Swap Guarantor in favor of the Swap Contract Administrator, a form of
which is attached hereto as Exhibit V-3.

            Swap Guarantor: Lehman Brothers Holdings Inc.

            Swap Contract Termination Date: The Distribution Date in February
2011.

                                      51
<PAGE>

            Swap Counterparty Trigger Event: A Swap Termination Payment that
is triggered upon (i) an "Event of Default" under the Swap Contract with
respect to which the Swap Counterparty is the sole "Defaulting Party" (as
defined in the Swap Contract) or (ii) a "Termination Event" or "Additional
Termination Event" under the Swap Contract with respect to which the Swap
Counterparty is the sole "Affected Party" (as defined in the Swap Contract).

            Swap Termination Payment: The payment payable to either party
under the Swap Contract due to an early termination of the Swap Contract.

            Swap Trust: The trust fund established by Section 4.09.

            Swap Trustee: The Bank of New York, a New York banking
corporation, not in its individual capacity, but solely in its capacity as
trustee for the benefit of the Holders of the Interest-Bearing Certificates
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.

            Tax Matters Person: The person designated as "tax matters person"
in the manner provided under Treasury regulation ss. 1.860F-4(d) and Treasury
regulation ss. 301.6231(a)(7)-1. Initially, this person shall be the Trustee.

            Tax Matters Person Certificate: With respect to the Master REMIC,
REMIC 1 and REMIC 2, the Class A-R Certificate with a Denomination of $0.05
and in the form of Exhibit E hereto.

            Terminator: As defined in Section 9.01.

            Three-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage
Rate that is fixed for 36 months after origination thereof before such
Mortgage Rate becomes subject to adjustment.

            Transaction Documents: This Agreement, the Swap Contract, the Swap
Contract Administration Agreement, the Swap Guarantee and any other document
or agreement entered into in connection with the Trust Fund, the Certificates
or the Mortgage Loans.

            Transfer: Any direct or indirect transfer or sale of any Ownership
Interest in a Certificate.

            Transfer Affidavit: As defined in Section 5.02(c).

            Transferor Certificate: As defined in Section 5.02(b).

            Trigger Event: With respect to any Distribution Date on or after
the Stepdown Date, either a Delinquency Trigger Event with respect to that
Distribution Date or a Cumulative Loss Trigger Event with respect to that
Distribution Date.

                                      52
<PAGE>

            Trust Fund: The corpus of the trust created hereunder consisting
of (i) the Mortgage Loans and all interest and principal received on or with
respect thereto after the Cut-off Date to the extent not applied in computing
the Cut-off Date Principal Balance thereof, exclusive of interest not required
to be deposited in the Certificate Account pursuant to Section 3.05(b)(2);
(ii) the Certificate Account, the Distribution Account, the Principal Reserve
Fund, the Carryover Reserve Fund, the Credit Comeback Excess Account, the
Pre-Funding Account and all amounts deposited therein pursuant to the
applicable provisions of this Agreement; (iii) property that secured a
Mortgage Loan and has been acquired by foreclosure, deed in lieu of
foreclosure or otherwise; (iv) the mortgagee's rights under the Insurance
Policies with respect to the Mortgage Loan; and (v) all proceeds of the
conversion, voluntary or involuntary, of any of the foregoing into cash or
other liquid property.

            Trustee: The Bank of New York, a New York 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.

            Trustee Advance Notice: As defined in Section 4.01(d).

            Trustee Advance Rate: With respect to any Advance made by the
Trustee pursuant to Section 4.01(d), a per annum rate of interest determined
as of the date of such Advance equal to the Prime Rate in effect on such date
plus 5.00%.

            Trustee Fee: As to any Distribution Date, an amount equal to
one-twelfth of the Trustee Fee Rate multiplied by the sum of (i) the Pool
Stated Principal Balance and (ii) any amounts remaining in the Pre-Funding
Account (excluding any investment earnings thereon) with respect to such
Distribution Date.

            Trustee Fee Rate: With respect to each Mortgage Loan, the per
annum rate agreed upon in writing on or prior to the Closing Date by the
Trustee and the Depositor, which is 0.009% per annum.

            Two-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage
Rate that is fixed for 24 months after origination thereof before such
Mortgage Rate becomes subject to adjustment.

            Underwriter's Exemption: Prohibited Transaction Exemption 2002-41,
67 Fed. Reg. 54487 (2002), as amended (or any successor thereto), or any
substantially similar administrative exemption granted by the U.S. Department
of Labor.

            Underwriters: Countrywide Securities Corporation, Barclays Capital
Inc. and Deutsche Bank Securities Inc.

            Unpaid Realized Loss Amount: For any Class of Certificates and any
Distribution Date, (x) the portion of the aggregate Applied Realized Loss
Amount previously allocated to that Class remaining unpaid from prior
Distribution Dates minus (y) any increase in

                                      53
<PAGE>

the Certificate Principal Balance of that Class due to the allocation of
Subsequent Recoveries to the Certificate Principal Balance of that Class
pursuant to Section 4.04(h).

            Voting Rights: The voting rights of all the Certificates that are
allocated to any Certificates for purposes of the voting provisions hereunder.
Voting Rights allocated to each Class of Certificates shall be allocated 97%
to the Certificates other than the Class A-R, Class C and Class P Certificates
(with the allocation among the Certificates to be in proportion to the
Certificate Principal Balance of each Class relative to the Certificate
Principal Balance of all other such Classes), and 1% to each of the Class A-R,
Class C and Class P Certificates. Voting Rights will be allocated among the
Certificates of each such Class in accordance with their respective Percentage
Interests.

            Section 1.02 Certain Interpretive Provisions.
                         --------------------------------

            All terms defined in this Agreement shall have the defined
meanings when used in any certificate, agreement or other document delivered
pursuant hereto unless otherwise defined therein. For purposes of this
Agreement and all such certificates and other documents, unless the context
otherwise requires: (a) accounting terms not otherwise defined in this
Agreement, and accounting terms partly defined in this Agreement to the extent
not defined, shall have the respective meanings given to them under generally
accepted accounting principles; (b) the words "hereof," "herein" and
"hereunder" and words of similar import refer to this Agreement (or the
certificate, agreement or other document in which they are used) as a whole
and not to any particular provision of this Agreement (or such certificate,
agreement or document); (c) references to any Section, Schedule or Exhibit are
references to Sections, Schedules and Exhibits in or to this Agreement, and
references to any paragraph, subsection, clause or other subdivision within
any Section or definition refer to such paragraph, subsection, clause or other
subdivision of such Section or definition; (d) the term "including" means
"including without limitation"; (e) references to any law or regulation refer
to that law or regulation as amended from time to time and include any
successor law or regulation; (f) references to any agreement refer to that
agreement as amended from time to time; and (g) references to any Person
include that Person's permitted successors and assigns.

                                 ARTICLE II.
                         CONVEYANCE OF MORTGAGE LOANS;
                        REPRESENTATIONS AND WARRANTIES

            Section 2.01 Conveyance of Mortgage Loans.
                         -----------------------------

            (a) Each Seller hereby sells, transfers, assigns, sets over and
otherwise conveys to the Depositor, without recourse, all the right, title and
interest of such Seller in and to the applicable Initial Mortgage Loans,
including all interest and principal received and receivable by such Seller on
or with respect to applicable Initial Mortgage Loans after the Initial Cut-off
Date (to the extent not applied in computing the Cut-off Date Principal
Balance thereof) or deposited into the Certificate Account by the Master
Servicer on behalf of such Seller as part of the Initial Certificate Account
Deposit as provided in this Agreement, other than principal due on the
applicable Initial Mortgage Loans on or prior to the Initial Cut-off Date and
interest accruing prior to the Initial Cut-off Date. The Master Servicer
confirms that, on behalf of the Sellers,

                                      54
<PAGE>

concurrently with the transfer and assignment, it has deposited into the
Certificate Account the Initial Certificate Account Deposit.

            Immediately upon the conveyance of the Initial Mortgage Loans
referred to in the preceding paragraph, the Depositor sells, transfers,
assigns, sets over and otherwise conveys to the Trustee for benefit of the
Certificateholders, without recourse, all right title and interest in the
Initial Mortgage Loans.

            CHL further agrees (x) to cause The Bank of New York to enter into
the Swap Contract Administration Agreement as Swap Contract Administrator and
(y) to assign all of its right, title and interest in and to the interest rate
swap transaction evidenced by the Confirmation, and to cause all of its
obligations in respect of such transaction to be assumed by, the Swap Contract
Administrator, on the terms and conditions set forth in the Swap Contract
Assignment Agreement.

            (b) Subject to the execution and delivery of the related
Subsequent Transfer Agreement as provided by Section 2.01(d) and the terms and
conditions of this Agreement, each Seller sells, transfers, assigns, sets over
and otherwise conveys to the Depositor, without recourse, on each Subsequent
Transfer Date, all the right, title and interest of such Seller in and to the
related Subsequent Mortgage Loans, including all interest and principal
received and receivable by such Seller on or with respect to such Subsequent
Mortgage Loans after the related Subsequent Cut-off Date (to the extent not
applied in computing the Cut-off Date Principal Balance thereof) or deposited
into the Certificate Account by the Master Servicer on behalf of such Seller
as part of any related Subsequent Certificate Account Deposit as provided in
this Agreement, other than principal due on such Subsequent Mortgage Loans on
or prior to the related Subsequent Cut-off Date and interest accruing prior to
the related Subsequent Cut-off Date.

            Immediately upon the conveyance of the Subsequent Mortgage Loans
referred to in the preceding paragraph, the Depositor sells, transfers,
assigns, sets over and otherwise conveys to the Trustee for benefit of the
Certificateholders, without recourse, all right title and interest in the
Subsequent Mortgage Loans.

            (c) Each Seller has entered into this Agreement in consideration
for the purchase of the Mortgage Loans by the Depositor and has agreed to take
the actions specified herein. The Depositor, concurrently with the execution
and delivery of this Agreement, hereby sells, transfers, assigns and otherwise
conveys to the Trustee for the use and benefit of the Certificateholders,
without recourse, all right title and interest in the portion of the Trust
Fund not otherwise conveyed to the Trustee pursuant to Section 2.01(a) or (b).

            (d) On any Business Day during the Funding Period designated by
CHL to the Trustee, the Sellers, the Depositor and the Trustee shall complete,
execute and deliver a Subsequent Transfer Agreement. After the execution and
delivery of such Subsequent Transfer Agreement, on the Subsequent Transfer
Date, the Trustee shall set aside in the Pre-Funding Account an amount equal
to the related Subsequent Transfer Date Purchase Amount.

                                      55
<PAGE>

            (e) The transfer of Subsequent Mortgage Loans on the Subsequent
Transfer Date is subject to the satisfaction of each of the following
conditions:

                (1) the Trustee and the Underwriters will be provided Opinions
      of Counsel addressed to the Rating Agencies as with respect to the sale
      of the Subsequent Mortgage Loans conveyed on such Subsequent Transfer
      Date (such opinions being substantially similar to the opinions
      delivered on the Closing Date to the Rating Agencies with respect to the
      sale of the Initial Mortgage Loans on the Closing Date), to be delivered
      as provided in Section 2.01(f);

                (2) the execution and delivery of such Subsequent Transfer
      Agreement or conveyance of the related Subsequent Mortgage Loans does
      not result in a reduction or withdrawal of any ratings assigned to the
      Certificates by the Rating Agencies;

                (3) the Depositor shall deliver to the Trustee an Officer's
      Certificate confirming the satisfaction of each of the conditions set
      forth in this Section 2.01(e) required to be satisfied by such
      Subsequent Transfer Date;

                (4) each Subsequent Mortgage Loan conveyed on such Subsequent
      Transfer Date satisfies the representations and warranties applicable to
      it under this Agreement, provided, however, that with respect to a
      breach of a representation and warranty with respect to a Subsequent
      Mortgage Loan set forth in this clause (4), the obligation under Section
      2.03(e) of this Agreement of the applicable Seller, to cure, repurchase
      or replace such Subsequent Mortgage Loan shall constitute the sole
      remedy against such Seller respecting such breach available to
      Certificateholders, the Depositor or the Trustee;

                (5) the Subsequent Mortgage Loans conveyed on such Subsequent
      Transfer Date were selected in a manner reasonably believed not to be
      adverse to the interests of the Certificateholders;

                (6) no Subsequent Mortgage Loan conveyed on such Subsequent
      Transfer Date was 30 or more days delinquent;

                (7) following the conveyance of the Subsequent Mortgage Loans
      on such Subsequent Transfer Date, the characteristics of each Loan Group
      will not vary by more than the amount specified below (other than the
      percentage of Mortgage Loans secured by Mortgaged Properties located in
      the State of California, which will not exceed 50% of the Mortgage Pool
      and the percentage of mortgage loans in the Credit Grade Categories of
      "C" or below, which will not exceed 10% of the Mortgage Loans in each
      Loan Group) from the characteristics listed below; provided that for the
      purpose of making such calculations, the characteristics for any Initial
      Mortgage Loan made will be taken as of the Initial Cut-off Date and the
      characteristics for any Subsequent Mortgage Loans will be taken as of
      the Subsequent Cut-off Date;

Loan Group 1

                                      56
<PAGE>

                                                                     Permitted
                                                                   Variance or
Characteristic                                       Value            Range
-----------------------------                  ----------------   --------------
Average Stated Principal Balance............       $167,039            10%
Weighted Average Mortgage Rate..............        7.912%            0.10%
Weighted Average Original Loan-to-Value Ratio       77.74%             3%
Weighted Average Remaining Term to Maturity.      356 months        3 months
Weighted Average Credit Bureau Risk Score...      608 points        5 points

Loan Group 2
                                                                     Permitted
                                                                   Variance or
Characteristic                                       Value            Range
-----------------------------                  ----------------   --------------
Average Stated Principal Balance............       $173,689            10%
Weighted Average Mortgage Rate..............        7.992%            0.10%
Weighted Average Original Loan-to-Value Ratio       80.98%             3%
Weighted Average Remaining Term to Maturity.      357 months        3 months
Weighted Average Credit Bureau Risk Score...      618 points        5 points

Loan Group 3
                                                                     Permitted
                                                                   Variance or
Characteristic                                       Value            Range
-----------------------------                  ----------------   --------------
Average Stated Principal Balance............       $232,668            10%
Weighted Average Mortgage Rate..............        7.439%            0.10%
Weighted Average Original Loan-to-Value Ratio       73.34%             3%
Weighted Average Remaining Term to Maturity.      357 months        3 months
Weighted Average Credit Bureau Risk Score...      610 points        5 points

                (8) none of the Sellers or the Depositor is insolvent and
      neither of the Sellers nor the Depositor will be rendered insolvent by
      the conveyance of Subsequent Mortgage Loans on such Subsequent Transfer
      Date; and

                (9) the Trustee and the Underwriters will be provided with an
      Opinion of Counsel, which Opinion of Counsel shall not be at the expense
      of either the Trustee or the Trust Fund, addressed to the Trustee, to
      the effect that such purchase of Subsequent Mortgage Loans will not (i)
      result in the imposition of the tax on "prohibited transactions" on the
      Trust Fund or contributions after the Startup Date, as defined in
      Sections 860F(a)(2) and 860G(d) of the Code, respectively or (ii) cause
      any REMIC formed hereunder to fail to qualify as a REMIC, such opinion
      to be delivered as provided in Section 2.01(f).

                                      57
<PAGE>

            The Trustee shall not be required to investigate or otherwise
verify compliance with these conditions, except for its own receipt of
documents specified above, and shall be entitled to rely on the required
Officer's Certificate.

            (f) Within six Business Days after each Subsequent Transfer Date,
upon (1) delivery to the Trustee by the Depositor of the Opinions of Counsel
referred to in Section 2.01(e)(1) and (e)(9), (2) delivery to the Trustee by
CHL (on behalf of each Seller) of a Loan Number and Borrower Identification
Mortgage Loan Schedule reflecting the Subsequent Mortgage Loans conveyed on
such Subsequent Transfer Date and the Loan Group into which each Subsequent
Mortgage Loan was conveyed, (3) deposit in the Certificate Account by the
Master Servicer on behalf of the Sellers of the applicable Subsequent
Certificate Account Deposit, and (4) delivery to the Trustee by the Depositor
of an Officer's Certificate confirming the satisfaction of each of the
conditions precedent set forth in this Section 2.01(f), the Trustee shall pay
the applicable Seller the Subsequent Transfer Date Transfer Amount from such
funds that were set aside in the Pre-Funding Account pursuant to Section
2.01(d). The positive difference, if any, between the Subsequent Transfer Date
Transfer Amount and the Subsequent Transfer Date Purchase Amount shall be
re-invested by the Trustee in the Pre-Funding Account.

            The Trustee shall not be required to investigate or otherwise
verify compliance with the conditions set forth in the preceding paragraph,
except for its own receipt of documents specified above, and shall be entitled
to rely on the required Officer's Certificate.

            Within thirty days after each Subsequent Transfer Date, the
Depositor shall deliver to the Trustee a letter of a nationally recognized
firm of independent public accountants stating whether or not the Subsequent
Mortgage Loans conveyed on such Subsequent Transfer Date conform to the
characteristics described in Section 2.01(e)(6) and (7).

            (g) In connection with the transfer and assignment of each
Mortgage Loan, the Depositor has delivered to, and deposited with, the
Co-Trustee (or, in the case of the Delay Delivery Mortgage Loans, will deliver
to, and deposit with, the Co-Trustee within the time periods specified in the
definition of Delay Delivery Mortgage Loans) (except as provided in clause
(vi) below) for the benefit of the Certificateholders, the following documents
or instruments with respect to each such Mortgage Loan so assigned (with
respect to each Mortgage Loan, clause (i) through (vi) below, together, the
"Mortgage File" for each such Mortgage Loan):

                  (i) the original Mortgage Note, endorsed by manual or
            facsimile signature in blank in the following form: "Pay to the
            order of ________________ without recourse", with all intervening
            endorsements that show a complete chain of endorsement from the
            originator to the Person endorsing the Mortgage Note (each such
            endorsement being sufficient to transfer all right, title and
            interest of the party so endorsing, as noteholder or assignee
            thereof, in and to that Mortgage Note), or, if the original
            Mortgage Note has been lost or destroyed and not replaced, an
            original lost note affidavit, stating that the original Mortgage
            Note was lost or destroyed, together with a copy of the related
            Mortgage Note and all such intervening endorsements;

                                      58
<PAGE>

                  (ii) in the case of each Mortgage Loan that is not a MERS
            Mortgage Loan, the original recorded Mortgage or a copy of such
            Mortgage, with recording information, and in the case of each MERS
            Mortgage Loan, the original Mortgage or a copy of such Mortgage,
            with recording information, noting the presence of the MIN of the
            Mortgage Loan and language indicating that the Mortgage Loan is a
            MOM Loan if the Mortgage Loan is a MOM Loan, with evidence of
            recording indicated thereon, or a copy of the Mortgage certified
            by the public recording office in which such Mortgage has been
            recorded;

                  (iii) in the case of each Mortgage Loan that is not a MERS
            Mortgage Loan, a duly executed assignment of the Mortgage to
            "Asset-Backed Certificates, Series 2006-3, CWABS, Inc., by The
            Bank of New York, a New York banking corporation, as trustee under
            the Pooling and Servicing Agreement dated as of February 1, 2006,
            without recourse" or a copy of such assignment, with recording
            information, (each such assignment, when duly and validly
            completed, to be in recordable form and sufficient to effect the
            assignment of and transfer to the assignee thereof, under the
            Mortgage to which such assignment relates);

                  (iv) the original recorded assignment or assignments of the
            Mortgage or a copy of such assignments, with recording
            information, together with all interim recorded assignments of
            such Mortgage or a copy of such assignments, with recording
            information (in each case noting the presence of a MIN in the case
            of each MERS Mortgage Loan);

                  (v) the original or copies of each assumption, modification,
            written assurance or substitution agreement, if any; and

                  (vi) the original or duplicate original lender's title
            policy or a copy of lender's title policy or a printout of the
            electronic equivalent and all riders thereto or, in the event such
            original title policy has not been received from the insurer, such
            original or duplicate original lender's title policy and all
            riders thereto shall be delivered within one year of the Closing
            Date.

            In addition, in connection with the assignment of any MERS
Mortgage Loan, each Seller agrees that it will cause, at such Seller's own
expense, the MERS(R) System to indicate (and provide evidence to the Trustee
that it has done so) that such Mortgage Loans have been assigned by such
Seller to the Trustee in accordance with this Agreement for the benefit of the
Certificateholders by including (or deleting, in the case of Mortgage Loans
which are repurchased in accordance with this Agreement) in such computer
files (a) the code "[IDENTIFY TRUSTEE SPECIFIC CODE]" in the field "[IDENTIFY
THE FIELD NAME FOR TRUSTEE]" which identifies the Trustee and (b) the code
"[IDENTIFY SERIES SPECIFIC CODE NUMBER]" in the field "Pool Field" which
identifies the series of the Certificates issued in connection with such
Mortgage Loans. The Sellers further agree that they will not, and will not
permit the Master Servicer to, and the Master Servicer agrees that it will
not, alter the codes referenced in this paragraph with respect to any Mortgage
Loan during the term of this Agreement unless and until such Mortgage Loan is
repurchased in accordance with the terms of this Agreement.

                                      59
<PAGE>

            In the event that in connection with any Mortgage Loan that is not
a MERS Mortgage Loan a Seller cannot deliver the original recorded Mortgage or
all interim recorded assignments of the Mortgage satisfying the requirements
of clause (ii), (iii) or (iv) concurrently with the execution and delivery
hereof, such Seller shall deliver or cause to be delivered to the Co-Trustee a
true copy of such Mortgage and of each such undelivered interim assignment of
the Mortgage each certified by such Seller, the applicable title company,
escrow agent or attorney, or the originator of such Mortgage, as the case may
be, to be a true and complete copy of the original Mortgage or assignment of
Mortgage submitted for recording. For any such Mortgage Loan that is not a
MERS Mortgage Loan each Seller shall promptly deliver or cause to be delivered
to the Co-Trustee such original Mortgage and such assignment or assignments
with evidence of recording indicated thereon upon receipt thereof from the
public recording official, or a copy thereof, certified, if appropriate, by
the relevant recording office, but in no event shall any such delivery be made
later than 270 days following the Closing Date; provided that in the event
that by such date such Seller is unable to deliver or cause to be delivered
each such Mortgage and each interim assignment by reason of the fact that any
such documents have not been returned by the appropriate recording office, or,
in the case of each interim assignment, because the related Mortgage has not
been returned by the appropriate recording office, such Seller shall deliver
or cause to be delivered such documents to the Co-Trustee as promptly as
possible upon receipt thereof. If the public recording office in which a
Mortgage or interim assignment thereof is recorded retains the original of
such Mortgage or assignment, a copy of the original Mortgage or assignment so
retained, with evidence of recording thereon, certified to be true and
complete by such recording office, shall satisfy a Seller's obligations in
Section 2.01. If any document submitted for recording pursuant to this
Agreement is (x) lost prior to recording or rejected by the applicable
recording office, the applicable Seller shall immediately prepare or cause to
be prepared a substitute and submit it for recording, and shall deliver copies
and originals thereof in accordance with the foregoing or (y) lost after
recording, the applicable Seller shall deliver to the Co-Trustee a copy of
such document certified by the applicable public recording office to be a true
and complete copy of the original recorded document. Each Seller shall
promptly forward or cause to be forwarded to the Co-Trustee (x) from time to
time additional original documents evidencing an assumption or modification of
a Mortgage Loan and (y) any other documents required to be delivered by the
Depositor or the Master Servicer to the Co-Trustee within the time periods
specified in this Section 2.01.

            With respect to each Mortgage Loan other than a MERS Mortgage Loan
as to which the related Mortgaged Property and Mortgage File are located in
(a) the State of California or (b) any other jurisdiction under the laws of
which the recordation of the assignment specified in clause (iii) above is not
necessary to protect the Trustee's and the Certificateholders' interest in the
related Mortgage Loan, as evidenced by an Opinion of Counsel delivered by CHL
to the Trustee and a copy to the Rating Agencies, in lieu of recording the
assignment specified in clause (iii) above, the applicable Seller may deliver
an unrecorded assignment in blank, in form otherwise suitable for recording to
the Co-Trustee; provided that if the related Mortgage has not been returned
from the applicable public recording office, such assignment, or any copy
thereof, of the Mortgage may exclude the information to be provided by the
recording office. As to any Mortgage Loan other than a MERS Mortgage Loan, the
procedures of the preceding sentence shall be applicable only so long as the
related Mortgage File is maintained in the possession of the Co-Trustee in the
State or jurisdiction described in such sentence. In the event that with
respect to Mortgage Loans other than MERS Mortgage Loans (I) any Seller, the
Depositor, the

                                      60
<PAGE>

Master Servicer or the NIM Insurer gives written notice to the Trustee that
recording is required to protect the right, title and interest of the Trustee
on behalf of the Certificateholders in and to any Mortgage Loan, (II) a court
recharacterizes any sale of the Mortgage Loans as a financing, or (III) as a
result of any change in or amendment to the laws of the State or jurisdiction
described in the first sentence of this paragraph or any applicable political
subdivision thereof, or any change in official position regarding application
or interpretation of such laws, including a holding by a court of competent
jurisdiction, such recording is so required, the Co-Trustee shall complete the
assignment in the manner specified in clause (iii) above and CHL shall submit
or cause to be submitted for recording as specified above or, should CHL fail
to perform such obligations, the Trustee shall cause the Master Servicer, at
the Master Servicer's expense, to cause each such previously unrecorded
assignment to be submitted for recording as specified above. In the event a
Mortgage File is released to the Master Servicer as a result of the Master
Servicer's having completed a Request for Document Release, the Trustee shall
complete the assignment of the related Mortgage in the manner specified in
clause (iii) above.

            So long as the Co-Trustee or its agent maintains an office in the
State of California, the Co-Trustee or its agent shall maintain possession of
and not remove or attempt to remove from the State of California any of the
Mortgage Files as to which the related Mortgaged Property is located in such
State. In the event that a Seller fails to record an assignment of a Mortgage
Loan as herein provided within 90 days of notice of an event set forth in
clause (I), (II) or (III) of the preceding paragraph, the Master Servicer
shall prepare and, if required hereunder, file such assignments for
recordation in the appropriate real property or other records office. Each
Seller hereby appoints the Master Servicer (and any successor servicer
hereunder) as its attorney-in-fact with full power and authority acting in its
stead for the purpose of such preparation, execution and filing.

            In the case of Mortgage Loans that become the subject of a
Principal Prepayment between the Closing Date (in the case of Initial Mortgage
Loans) or related Subsequent Transfer Date (in the case of Subsequent Mortgage
Loans) and the Cut-off Date, CHL shall deposit or cause to be deposited in the
Certificate Account the amount required to be deposited therein with respect
to such payment pursuant to Section 3.05 hereof.

            Notwithstanding anything to the contrary in this Agreement, within
thirty days after the Closing Date (in the case of Initial Mortgage Loans) or
within twenty days after the related Subsequent Transfer Date (in the case of
Subsequent Mortgage Loans), CHL (on behalf of each Seller) shall either (i)
deliver to the Co-Trustee the Mortgage File as required pursuant to this
Section 2.01 for each Delay Delivery Mortgage Loan or (ii) (A) repurchase the
Delay Delivery Mortgage Loan or (B) substitute the Delay Delivery Mortgage
Loan for a Replacement Mortgage Loan, which repurchase or substitution shall
be accomplished in the manner and subject to the conditions set forth in
Section 2.03, provided that if CHL fails to deliver a Mortgage File for any
Delay Delivery Mortgage Loan within the period provided in the prior sentence,
the cure period provided for in Section 2.02 or in Section 2.03 shall not
apply to the initial delivery of the Mortgage File for such Delay Delivery
Mortgage Loan, but rather CHL shall have five (5) Business Days to cure such
failure to deliver. CHL shall promptly provide each Rating Agency with written
notice of any cure, repurchase or substitution made pursuant to the proviso of
the preceding sentence. On or before the thirtieth (30th) day (or if such
thirtieth day is not a Business Day, the succeeding Business Day) after the
Closing Date (in the case of

                                      61
<PAGE>

Initial Mortgage Loans) or within twenty days after the related Subsequent
Transfer Date (in the case of Subsequent Mortgage Loans), the Trustee shall,
in accordance with the provisions of Section 2.02, send a Delay Delivery
Certification substantially in the form annexed hereto as Exhibit G-3 (with
any applicable exceptions noted thereon) for all Delay Delivery Mortgage Loans
delivered within thirty (30) days after such date. The Trustee will promptly
send a copy of such Delay Delivery Certification to each Rating Agency.

            Each Seller has entered into this Agreement in consideration for
the purchase of the Mortgage Loans sold by such Seller to the Depositor and
has agreed to take the actions specified herein. The Depositor, concurrently
with the execution and delivery of this Agreement, hereby sells, transfers,
assigns and otherwise conveys to the Trustee for the use and benefit of the
Certificateholders, without recourse, all right title and interest in the
portion of the Trust Fund not otherwise conveyed to the Trust Fund pursuant to
Sections 2.01(a) or (b).

            Section 2.02 Acceptance by Trustee of the Mortgage Loans.
                         -------------------------------------------

            (a) The Co-Trustee acknowledges receipt, subject to the
limitations contained in and any exceptions noted in the Initial Certification
in the form annexed hereto as Exhibit G-1 and in the list of exceptions
attached thereto, of the documents referred to in clauses (i) and (iii) of
Section 2.01(g) above with respect to the Initial Mortgage Loans and all other
assets included in the Trust Fund and declares that it holds and will hold
such documents and the other documents delivered to it constituting the
Mortgage Files, and that it holds or will hold such other assets included in
the Trust Fund, in trust for the exclusive use and benefit of all present and
future Certificateholders.

            The Trustee agrees to execute and deliver on the Closing Date to
the Depositor, the Master Servicer and CHL (on behalf of each Seller) an
Initial Certification substantially in the form annexed hereto as Exhibit G-1
to the effect that, as to each Initial Mortgage Loan listed in the Mortgage
Loan Schedule (other than any Initial Mortgage Loan paid in full or any
Initial Mortgage Loan specifically identified in such certification as not
covered by such certification), the documents described in Section 2.01(g)(i)
and, in the case of each Initial Mortgage Loan that is not a MERS Mortgage
Loan, the documents described in Section 2.01(g)(iii) with respect to such
Initial Mortgage Loans as are in the Co-Trustee's possession and based on its
review and examination and only as to the foregoing documents, such documents
appear regular on their face and relate to such Initial Mortgage Loan. The
Trustee agrees to execute and deliver within 30 days after the Closing Date to
the Depositor, the Master Servicer and CHL (on behalf of each Seller) an
Interim Certification substantially in the form annexed hereto as Exhibit G-2
to the effect that, as to each Initial Mortgage Loan listed in the Mortgage
Loan Schedule (other than any Initial Mortgage Loan paid in full or any
Initial Mortgage Loan specifically identified in such certification as not
covered by such certification) all documents required to be delivered to the
Co-Trustee pursuant to the Agreement with respect to such Initial Mortgage
Loans are in its possession (except those documents described in Section
2.01(g)(vi)) and based on its review and examination and only as to the
foregoing documents, (i) such documents appear regular on their face and
relate to such Initial Mortgage Loan, and (ii) the information set forth in
items (i), (iv), (v), (vi), (viii), (ix) and (xv) of the definition of the
"Mortgage Loan Schedule" accurately reflects information set forth in the
Mortgage File. On or before the thirtieth (30th) day after the Closing Date
(or if such thirtieth day is not a Business Day, the succeeding Business Day),
the

                                      62
<PAGE>

Trustee shall deliver to the Depositor, the Master Servicer and CHL (on behalf
of each Seller) a Delay Delivery Certification with respect to the Initial
Mortgage Loans substantially in the form annexed hereto as Exhibit G-3, with
any applicable exceptions noted thereon. The Co-Trustee or the Trustee, as
applicable, shall be under no duty or obligation to inspect, review or examine
such documents, instruments, certificates or other papers to determine that
the same are genuine, enforceable or appropriate for the represented purpose
or that they have actually been recorded in the real estate records or that
they are other than what they purport to be on their face.

            Not later than 180 days after the Closing Date, the Trustee shall
deliver to the Depositor, the Master Servicer and CHL (on behalf of each
Seller), and to any Certificateholder that so requests, a Final Certification
with respect to the Initial Mortgage Loans substantially in the form annexed
hereto as Exhibit H, with any applicable exceptions noted thereon.

            In connection with the Trustee's completion and delivery of such
Final Certification, the Co-Trustee, at the Trustee's direction, shall review
each Mortgage File with respect to the Initial Mortgage Loans to determine
that such Mortgage File contains the following documents:

                  (i) the original Mortgage Note, endorsed by manual or
            facsimile signature in blank in the following form: "Pay to the
            order of ________________ without recourse", with all intervening
            endorsements that show a complete chain of endorsement from the
            originator to the Person endorsing the Mortgage Note (each such
            endorsement being sufficient to transfer all right, title and
            interest of the party so endorsing, as noteholder or assignee
            thereof, in and to that Mortgage Note), or, if the original
            Mortgage Note has been lost or destroyed and not replaced, an
            original lost note affidavit, stating that the original Mortgage
            Note was lost or destroyed, together with a copy of the related
            Mortgage Note and all such intervening endorsements;

                  (ii) in the case of each Initial Mortgage Loan that is not a
            MERS Mortgage Loan, the original recorded Mortgage or a copy of
            such Mortgage, with recording information, and in the case of each
            Initial Mortgage Loan that is a MERS Mortgage Loan, the original
            Mortgage or a copy of such Mortgage, with recording information,
            noting the presence of the MIN of the Initial Mortgage Loan and
            language indicating that the Mortgage Loan is a MOM Loan if the
            Initial Mortgage Loan is a MOM Loan, with evidence of recording
            indicated thereon, or a copy of the Mortgage certified by the
            public recording office in which Mortgage has been recorded;

                  (iii) in the case of each Initial Mortgage Loan that is not
            a MERS Mortgage Loan, a duly executed assignment of the Mortgage
            or a copy thereof with recording information, in either case in
            the form permitted by Section 2.01;

                  (iv) the original recorded assignment or assignments of the
            Mortgage or a copy of such assignments, with recording
            information, together with all interim recorded assignments of
            such Mortgage or a copy of such assignments,

                                      63
<PAGE>

with recording information (in each case noting the presence of a MIN in the
case of each MERS Mortgage Loan);

                  (v) the original or copies of each assumption, modification,
            written assurance or substitution agreement, if any; and

                  (vi) the original or duplicate original lender's title
            policy or a copy of lender's title policy or a printout of the
            electronic equivalent and all riders thereto.

            If, in the course of such review, the Co-Trustee finds any
document or documents constituting a part of such Mortgage File that do not
meet the requirements of clauses (i)-(iv) and (vi) above, the Trustee shall
include such exceptions in such Final Certification (and the Trustee shall
state in such Final Certification whether any Mortgage File does not then
include the original or duplicate original lender's title policy or a printout
of the electronic equivalent and all riders thereto). If the public recording
office in which a Mortgage or assignment thereof is recorded retains the
original of such Mortgage or assignment, a copy of the original Mortgage or
assignment so retained, with evidence of recording thereon, certified to be
true and complete by such recording office, shall be deemed to satisfy the
requirements of clause (ii), (iii) or (iv) above, as applicable. CHL shall
promptly correct or cure such defect referred to above within 90 days from the
date it was so notified of such defect and, if CHL does not correct or cure
such defect within such period, CHL shall either (A) if the time to cure such
defect expires prior to the end of the second anniversary of the Closing Date,
substitute for the related Initial Mortgage Loan a Replacement Mortgage Loan,
which substitution shall be accomplished in the manner and subject to the
conditions set forth in Section 2.03, or (B) purchase such Initial Mortgage
Loan from the Trust Fund within 90 days from the date CHL was notified of such
defect in writing at the Purchase Price of such Initial Mortgage Loan;
provided that any such substitution pursuant to (A) above or repurchase
pursuant to (B) above shall not be effected prior to the delivery to the
Trustee of the Opinion of Counsel required by Section 2.05 hereof and any
substitution pursuant to (A) above shall not be effected prior to the
additional delivery to the Co-Trustee of a Request for File Release. No
substitution will be made in any calendar month after the Determination Date
for such month. The Purchase Price for any such Initial Mortgage Loan shall be
deposited by CHL in the Certificate Account and, upon receipt of such deposit
and Request for File Release with respect thereto, the Co-Trustee shall
release the related Mortgage File to CHL and shall execute and deliver at
CHL's request such instruments of transfer or assignment as CHL has prepared,
in each case without recourse, as shall be necessary to vest in CHL, or a
designee, the Trustee's interest in any Initial Mortgage Loan released
pursuant hereto. If pursuant to the foregoing provisions CHL repurchases an
Initial Mortgage Loan that is a MERS Mortgage Loan, the Master Servicer shall
cause MERS to execute and deliver an assignment of the Mortgage in recordable
form to transfer the Mortgage from MERS to CHL and shall cause such Mortgage
to be removed from registration on the MERS(R) System in accordance with MERS'
rules and regulations.

            The Co-Trustee shall retain possession and custody of each
Mortgage File in accordance with and subject to the terms and conditions set
forth herein. Each Seller shall promptly deliver to the Co-Trustee, upon the
execution or receipt thereof, the originals of such other documents or
instruments constituting the Mortgage File that come into the possession of
such Seller from time to time.

                                      64
<PAGE>

            It is understood and agreed that the obligation of CHL to
substitute for or to purchase any Mortgage Loan that does not meet the
requirements of Section 2.02(a) above shall constitute the sole remedy
respecting such defect available to the Trustee, the Co-Trustee, the Depositor
and any Certificateholder against any Seller.

            It is understood and agreed that the obligation of CHL to
substitute for or to purchase, pursuant to Section 2.02(a), any Initial
Mortgage Loan whose Mortgage File contains any document or documents that does
not meet the requirements of clauses (i)-(iv) and (vi) above and which defect
is not corrected or cured by CHL within 90 days from the date it was notified
of such defect, shall constitute the sole remedy respecting such defect
available to the Trustee, the Co-Trustee, the Depositor and any
Certificateholder against any Seller.

            (b) The Trustee agrees to execute and deliver on the Subsequent
Transfer Date to the Depositor, the Master Servicer and CHL (on behalf of each
Seller) an Initial Certification substantially in the form annexed hereto as
Exhibit G-4 to the effect that, as to each Subsequent Mortgage Loan listed in
the Mortgage Loan Schedule (other than any Subsequent Mortgage Loan paid in
full or any Subsequent Mortgage Loan specifically identified in such
certification as not covered by such certification), the documents described
in Section 2.01(g)(i) and, in the case of each Subsequent Mortgage Loan that
is not a MERS Mortgage Loan, the documents described in Section 2.01(g)(iii),
with respect to such Subsequent Mortgage Loan are in its possession, and based
on its review and examination and only as to the foregoing documents, such
documents appear regular on their face and relate to such Subsequent Mortgage
Loan.

            The Trustee agrees to execute and deliver within 30 days after the
Subsequent Transfer Date to the Depositor, the Master Servicer and CHL (on
behalf of each Seller) an Interim Certification substantially in the form
annexed hereto as Exhibit G-2 to the effect that, as to each Subsequent
Mortgage Loan listed in the Mortgage Loan Schedule (other than any Subsequent
Mortgage Loan paid in full or any Subsequent Mortgage Loan specifically
identified in such certification as not covered by such certification), all
documents required to be delivered to it pursuant to this Agreement with
respect to such Subsequent Mortgage Loan are in its possession (except those
described in Section 2.01(g)(vi)) and based on its review and examination and
only as to the foregoing documents, (i) such documents appear regular on their
face and relate to such Subsequent Mortgage Loan, and (ii) the information set
forth in items (i), (iv), (v), (vi), (viii), (ix) and (xv) of the definition
of the "Mortgage Loan Schedule" accurately reflects information set forth in
the Mortgage File. On or before the thirtieth (30th) day after the Subsequent
Transfer Date (or if such thirtieth day is not a Business Day, the succeeding
Business Day), the Trustee shall deliver to the Depositor, the Master Servicer
and CHL (on behalf of each Seller) a Delay Delivery Certification with respect
to the Subsequent Mortgage Loans substantially in the form annexed hereto as
Exhibit G-3, with any applicable exceptions noted thereon, together with a
Subsequent Certification substantially in the form annexed hereto as Exhibit
G-4. The Trustee shall be under no duty or obligation to inspect, review or
examine such documents, instruments, certificates or other papers to determine
that the same are genuine, enforceable or appropriate for the represented
purpose or that they have actually been recorded in the real estate records or
that they are other than what they purport to be on their face.

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            Not later than 180 days after the Subsequent Transfer Date, the
Trustee shall deliver to the Depositor, the Master Servicer, CHL (on behalf of
each Seller) and to any Certificateholder that so requests a Final
Certification with respect to the Subsequent Mortgage Loans substantially in
the form annexed hereto as Exhibit H, with any applicable exceptions noted
thereon.

            In connection with the Trustee's completion and delivery of such
Final Certification, the Co-Trustee shall review each Mortgage File with
respect to the Subsequent Mortgage Loans to determine that such Mortgage File
contains the following documents:

                (i) the original Mortgage Note, endorsed by manual or
      facsimile signature in blank in the following form: "Pay to the order of
      ________________ without recourse", with all intervening endorsements
      that show a complete chain of endorsement from the originator to the
      Person endorsing the Mortgage Note (each such endorsement being
      sufficient to transfer all right, title and interest of the party so
      endorsing, as noteholder or assignee thereof, in and to that Mortgage
      Note), or, if the original Mortgage Note has been lost or destroyed and
      not replaced, an original lost note affidavit, stating that the original
      Mortgage Note was lost or destroyed, together with a copy of the related
      Mortgage Note and all such intervening endorsements;

                (ii) in the case of each Subsequent Mortgage Loan that is not
      a MERS Mortgage Loan, the original recorded Mortgage or a copy of such
      Mortgage, with recording information, and in the case of each Subsequent
      Mortgage Loan that is a MERS Mortgage Loan, the original Mortgage or a
      copy of such Mortgage, with recording information, noting the presence
      of the MIN of the Subsequent Mortgage Loan and language indicating that
      the Subsequent Mortgage Loan is a MOM Loan if the Subsequent Mortgage
      Loan is a MOM Loan, with evidence of recording indicated thereon, or a
      copy of the Mortgage certified by the public recording office in which
      Mortgage has been recorded;

                (iii) in the case of each Subsequent Mortgage Loan that is not
      a MERS Mortgage Loan, a duly executed assignment of the Mortgage or a
      copy thereof with recording information, in either case in the form
      permitted by Section 2.01;

                (iv) the original recorded assignment or assignments of the
      Mortgage or a copy of such assignments, with recording information,
      together with all interim recorded assignments of such Mortgage or a
      copy of such assignments, with recording information (in each case
      noting the presence of a MIN in the case of each MERS Mortgage Loan);

                (v) the original or copies of each assumption, modification,
      written assurance or substitution agreement, if any; and

                (vi) the original or duplicate original lender's title policy
      or a copy of lender's title policy or a printout of the electronic
      equivalent and all riders thereto.

            If, in the course of such review, the Co-Trustee finds any
document or documents constituting a part of such Mortgage File that do not
meet the requirements of clauses (i)-(iv) and

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(vi) above, the Trustee shall include such exceptions in such Final
Certification (and the Trustee shall state in such Final Certification whether
any Mortgage File does not then include the original or duplicate original
lender's title policy or a printout of the electronic equivalent and all
riders thereto). If the public recording office in which a Mortgage or
assignment thereof is recorded retains the original of such Mortgage or
assignment, a copy of the original Mortgage or assignment so retained, with
evidence of recording thereon, certified to be true and complete by such
recording office, shall be deemed to satisfy the requirements of clause (ii),
(iii) or (iv) above, as applicable. CHL shall promptly correct or cure such
defect referred to above within 90 days from the date it was so notified of
such defect and, if CHL does not correct or cure such defect within such
period, CHL shall either (A) if the time to cure such defect expires prior to
the end of the second anniversary of the Closing Date, substitute for the
related Subsequent Mortgage Loan a Replacement Mortgage Loan, which
substitution shall be accomplished in the manner and subject to the conditions
set forth in Section 2.03, or (B) purchase such Subsequent Mortgage Loan from
the Trust Fund within 90 days from the date CHL was notified of such defect in
writing at the Purchase Price of such Subsequent Mortgage Loan; provided that
any such substitution pursuant to (A) above or repurchase pursuant to (B)
above shall not be effected prior to the delivery to the Trustee of the
Opinion of Counsel required by Section 2.05 hereof and any substitution
pursuant to (A) above shall not be effected prior to the additional delivery
to the Trustee of a Request for File Release. No substitution will be made in
any calendar month after the Determination Date for such month. The Purchase
Price for any such Subsequent Mortgage Loan shall be deposited by CHL in the
Certificate Account and, upon receipt of such deposit and Request for File
Release with respect thereto, the Trustee shall release the related Mortgage
File to CHL and shall execute and deliver at CHL's request such instruments of
transfer or assignment as CHL has prepared, in each case without recourse, as
shall be necessary to vest in CHL, or a designee, the Trustee's interest in
any Subsequent Mortgage Loan released pursuant hereto. If pursuant to the
foregoing provisions CHL repurchases a Subsequent Mortgage Loan that is a MERS
Mortgage Loan, the Master Servicer shall cause MERS to execute and deliver an
assignment of the Mortgage in recordable form to transfer the Mortgage from
MERS to CHL and shall cause such Mortgage to be removed from registration on
the MERS(R) System in accordance with MERS' rules and regulations.

            The Co-Trustee shall retain possession and custody of each
Mortgage File in accordance with and subject to the terms and conditions set
forth herein. Each Seller shall promptly deliver to the Co-Trustee, upon the
execution or receipt thereof, the originals of such other documents or
instruments constituting the Mortgage File that come into the possession of
such Seller from time to time.

            It is understood and agreed that the obligation of the Sellers to
substitute for or to purchase, pursuant to Section 2.02(b), any Subsequent
Mortgage Loan whose Mortgage File contains any document or documents that does
not meet the requirements of clauses (i)-(iv) and (vi) above and which defect
is not corrected or cured by such Seller within 90 days from the date it was
notified of such defect, shall constitute the sole remedy respecting such
defect available to the Trustee, the Co-Trustee, the Depositor and any
Certificateholder against the Sellers.

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            Section 2.03 Representations, Warranties and Covenants of the
                         Master Servicer and the Sellers.
                         --------------------------------

            (a) The Master Servicer hereby represents and warrants to the
Depositor and the Trustee as follows, as of the date hereof with respect to
the Initial Mortgage Loans, and the related Subsequent Transfer Date with
respect to the Subsequent Mortgage Loans:

                (1) The Master Servicer is duly organized as a Texas limited
      partnership and is validly existing and in good standing under the laws
      of the State of Texas and is duly authorized and qualified to transact
      any and all business contemplated by this Agreement to be conducted by
      the Master Servicer in any state in which a Mortgaged Property is
      located or is otherwise not required under applicable law to effect such
      qualification and, in any event, is in compliance with the doing
      business laws of any such state, to the extent necessary to ensure its
      ability to enforce each Mortgage Loan, to service the Mortgage Loans in
      accordance with the terms of this Agreement and to perform any of its
      other obligations under this Agreement in accordance with the terms
      hereof.

                (2) The Master Servicer has the full partnership power and
      authority to sell and service each Mortgage Loan, and to execute,
      deliver and perform, and to enter into and consummate the transactions
      contemplated by this Agreement and has duly authorized by all necessary
      partnership action on the part of the Master Servicer the execution,
      delivery and performance of this Agreement; and this Agreement, assuming
      the due authorization, execution and delivery hereof by the other
      parties hereto, constitutes a legal, valid and binding obligation of the
      Master Servicer, enforceable against the Master Servicer in accordance
      with its terms, except that (a) the enforceability hereof may be limited
      by bankruptcy, insolvency, moratorium, receivership and other similar
      laws relating to creditors' rights generally and (b) the remedy of
      specific performance and injunctive and other forms of equitable relief
      may be subject to equitable defenses and to the discretion of the court
      before which any proceeding therefor may be brought.

                (3) The execution and delivery of this Agreement by the Master
      Servicer, the servicing of the Mortgage Loans by the Master Servicer
      under this Agreement, the consummation of any other of the transactions
      contemplated by this Agreement, and the fulfillment of or compliance
      with the terms hereof are in the ordinary course of business of the
      Master Servicer and will not (A) result in a material breach of any term
      or provision of the certificate of limited partnership, partnership
      agreement or other organizational document of the Master Servicer or (B)
      materially conflict with, result in a material breach, violation or
      acceleration of, or result in a material default under, the terms of any
      other material agreement or instrument to which the Master Servicer is a
      party or by which it may be bound, or (C) constitute a material
      violation of any statute, order or regulation applicable to the Master
      Servicer of any court, regulatory body, administrative agency or
      governmental body having jurisdiction over the Master Servicer; and the
      Master Servicer is not in breach or violation of any material indenture
      or other material agreement or instrument, or in violation of any
      statute, order or regulation of any court, regulatory body,
      administrative agency or governmental body

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<PAGE>

      having jurisdiction over it which breach or violation may materially
      impair the Master Servicer's ability to perform or meet any of its
      obligations under this Agreement.

                (4) The Master Servicer is an approved servicer of
      conventional mortgage loans for Fannie Mae and Freddie Mac and is a
      mortgagee approved by the Secretary of Housing and Urban Development
      pursuant to sections 203 and 211 of the National Housing Act.

                (5) No litigation is pending or, to the best of the Master
      Servicer's knowledge, threatened, against the Master Servicer that would
      materially and adversely affect the execution, delivery or
      enforceability of this Agreement or the ability of the Master Servicer
      to service the Mortgage Loans or to perform any of its other obligations
      under this Agreement or any Subsequent Transfer Agreement in accordance
      with the terms hereof or thereof.

                (6) 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 hereby, or if any such consent, approval, authorization or
      order is required, the Master Servicer has obtained the same.

                (7) The Master Servicer is a member of MERS in good standing,
      and will comply in all material respects with the rules and procedures
      of MERS in connection with the servicing of the Mortgage Loans for as
      long as such Mortgage Loans are registered with MERS.

                (8) The Master Servicer has fully furnished and will fully
      furnish, in accordance with the Fair Credit Reporting Act and its
      implementing regulations, accurate and complete information (i.e.,
      favorable and unfavorable) on its borrower credit files to Equifax,
      Experian, and Trans Union Credit Information Company (three of the
      credit repositories), on a monthly basis for the Mortgage Loans in Loan
      Group 1.

            (b) CHL hereby represents and warrants to the Depositor and the
Trustee as follows, as of the Initial Cut-off Date in the case of the Initial
Mortgage Loans and as of the related Subsequent Cut-off Date in the case of
the Subsequent Mortgage Loans (unless otherwise indicated or the context
otherwise requires, percentages with respect to the Initial Mortgage Loans in
the Trust Fund or in a Loan Group or Loan Groups are measured by the Cut-off
Date Principal Balance of the Initial Mortgage Loans in the Trust Fund or of
the Initial Mortgage Loans in the related Loan Group or Loan Groups, as
applicable):

                (1) CHL is duly organized as a New York corporation and is
      validly existing and in good standing under the laws of the State of New
      York and is duly authorized and qualified to transact any and all
      business contemplated by this Agreement and each Subsequent Transfer
      Agreement to be conducted by CHL in any state in which a Mortgaged
      Property is located or is otherwise not required under applicable law to
      effect such qualification and, in any event, is in compliance with the
      doing business laws of any such state, to the extent necessary to ensure
      its ability to enforce each Mortgage

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<PAGE>

      Loan, to sell the CHL Mortgage Loans in accordance with the terms of
      this Agreement and each Subsequent Transfer Agreement and to perform any
      of its other obligations under this Agreement and each Subsequent
      Transfer Agreement in accordance with the terms hereof and thereof.

                (2) CHL has the full corporate power and authority to sell
      each CHL Mortgage Loan, and to execute, deliver and perform, and to
      enter into and consummate the transactions contemplated by this
      Agreement and each Subsequent Transfer Agreement and has duly authorized
      by all necessary corporate action on the part of CHL the execution,
      delivery and performance of this Agreement and each Subsequent Transfer
      Agreement; and this Agreement and each Subsequent Transfer Agreement,
      assuming the due authorization, execution and delivery hereof by the
      other parties hereto, constitutes a legal, valid and binding obligation
      of CHL, enforceable against CHL in accordance with its terms, except
      that (a) the enforceability hereof may be limited by bankruptcy,
      insolvency, moratorium, receivership and other similar laws relating to
      creditors' rights generally and (b) the remedy of specific performance
      and injunctive and other forms of equitable relief may be subject to
      equitable defenses and to the discretion of the court before which any
      proceeding therefor may be brought.

                (3) The execution and delivery of this Agreement and each
      Subsequent Transfer Agreement by CHL, the sale of the CHL Mortgage Loans
      by CHL under this Agreement and each Subsequent Transfer Agreement, the
      consummation of any other of the transactions contemplated by this
      Agreement and each Subsequent Transfer Agreement, and the fulfillment of
      or compliance with the terms hereof and thereof are in the ordinary
      course of business of CHL and will not (A) result in a material breach
      of any term or provision of the charter or by-laws of CHL or (B)
      materially conflict with, result in a material breach, violation or
      acceleration of, or result in a material default under, the terms of any
      other material agreement or instrument to which CHL is a party or by
      which it may be bound, or (C) constitute a material violation of any
      statute, order or regulation applicable to CHL of any court, regulatory
      body, administrative agency or governmental body having jurisdiction
      over CHL; and CHL is not in breach or violation of any material
      indenture or other material agreement or instrument, or in violation of
      any statute, order or regulation of any court, regulatory body,
      administrative agency or governmental body having jurisdiction over it
      which breach or violation may materially impair CHL's ability to perform
      or meet any of its obligations under this Agreement and each Subsequent
      Transfer Agreement.

                (4) CHL is an approved seller of conventional mortgage loans
      for Fannie Mae and Freddie Mac and is a mortgagee approved by the
      Secretary of Housing and Urban Development pursuant to sections 203 and
      211 of the National Housing Act.

                (5) No litigation is pending or, to the best of CHL's
      knowledge, threatened, against CHL that would materially and adversely
      affect the execution, delivery or enforceability of this Agreement or
      any Subsequent Transfer Agreement or the ability of CHL to sell the CHL
      Mortgage Loans or to perform any of its other obligations under this
      Agreement or any Subsequent Transfer Agreement in accordance with the
      terms hereof or thereof.

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<PAGE>

                (6) No consent, approval, authorization or order of any court
      or governmental agency or body is required for the execution, delivery
      and performance by CHL of, or compliance by CHL with, this Agreement or
      any Subsequent Transfer Agreement or the consummation of the
      transactions contemplated hereby, or if any such consent, approval,
      authorization or order is required, CHL has obtained the same.

                (7) The information set forth on Exhibit F-1 hereto with
      respect to each Initial Mortgage Loan is true and correct in all
      material respects as of the Closing Date.

                (8) CHL will treat the transfer of the CHL Mortgage Loans to
      the Depositor as a sale of the CHL Mortgage Loans for all tax,
      accounting and regulatory purposes.

                (9) None of the Mortgage Loans is delinquent in payment of
      principal and interest.

                (10) No Mortgage Loan had a Loan-to-Value Ratio at origination
      in excess of 100.00%.

                (11) Each Mortgage Loan is secured by a valid and enforceable
      first lien on the related Mortgaged Property subject only to (1) the
      lien of non-delinquent current real property taxes and assessments, (2)
      covenants, conditions and restrictions, rights of way, easements and
      other matters of public record as of the date of recording of such
      Mortgage, such exceptions appearing of record being acceptable to
      mortgage lending institutions generally or specifically reflected in the
      appraisal made in connection with the origination of the related
      Mortgage Loan and (3) other matters to which like properties are
      commonly subject that do not materially interfere with the benefits of
      the security intended to be provided by such Mortgage.

                (12) Immediately prior to the assignment of each CHL Mortgage
      Loan to the Depositor, CHL had good title to, and was the sole owner of,
      such CHL Mortgage Loan free and clear of any pledge, lien, encumbrance
      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 the same pursuant to this Agreement.

                (13) There is no delinquent tax or assessment lien against any
      Mortgaged Property.

                (14) There is no valid offset, claim, defense or counterclaim
      to any Mortgage Note or Mortgage, including the obligation of the
      Mortgagor to pay the unpaid principal of or interest on such Mortgage
      Note.

                (15) There are no mechanics' liens or claims for work, labor
      or material affecting any Mortgaged Property that are or may be a lien
      prior to, or equal with, the lien of such Mortgage, except those that
      are insured against by the title insurance policy referred to in item
      (18) below.

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<PAGE>

                (16) As of the Closing Date in the case of the Initial
      Mortgage Loans and as of the related Subsequent Transfer Date in the
      case of the Subsequent Mortgage Loans, to the best of CHL's knowledge,
      each Mortgaged Property is free of material damage and is in good
      repair.

                (17) As of the Closing Date in the case of the Initial
      Mortgage Loans and as of the related Subsequent Transfer Date in the
      case of the Subsequent Mortgage Loans, neither CHL nor any prior holder
      of any Mortgage has modified the Mortgage in any material respect
      (except that a Mortgage Loan may have been modified by a written
      instrument that has been recorded or submitted for recordation, if
      necessary, to protect the interests of the Certificateholders and the
      original or a copy of which has been delivered to the Trustee);
      satisfied, cancelled or subordinated such Mortgage in whole or in part;
      released the related Mortgaged Property in whole or in part from the
      lien of such Mortgage; or executed any instrument of release,
      cancellation, modification (except as expressly permitted above) or
      satisfaction with respect thereto.

                (18) A lender's policy of title insurance together with a
      condominium endorsement and extended coverage endorsement, if
      applicable, in an amount at least equal to the Cut-off Date Principal
      Balance of each such Mortgage Loan or a commitment (binder) to issue the
      same was effective on the date of the origination of each Mortgage Loan,
      each such policy is valid and remains in full force and effect, and each
      such policy was issued by a title insurer qualified to do business in
      the jurisdiction where the Mortgaged Property is located and acceptable
      to Fannie Mae and Freddie Mac and is in a form acceptable to Fannie Mae
      and Freddie Mac, which policy insures the Sellers and successor owners
      of indebtedness secured by the insured Mortgage, as to the first
      priority lien, of the Mortgage subject to the exceptions set forth in
      paragraph (11) above; to the best of CHL's knowledge, no claims have
      been made under such mortgage title insurance policy and no prior holder
      of the related Mortgage, including any Seller, has done, by act or
      omission, anything that would impair the coverage of such mortgage title
      insurance policy.

                (19) No Initial Mortgage Loan was the subject of a Principal
      Prepayment in full between the Initial Cut-off Date and the Closing
      Date. No Subsequent Mortgage Loan was the subject of a Principal
      Prepayment in full between the Subsequent Cut-off Date and the
      Subsequent Transfer Date.

                (20) To the best of CHL's knowledge, all of the improvements
      that were included for the purpose of determining the Appraised Value of
      the Mortgaged Property lie wholly within the boundaries and building
      restriction lines of such property, and no improvements on adjoining
      properties encroach upon the Mortgaged Property.

                (21) To the best of CHL's knowledge, no improvement located on
      or being part of the Mortgaged Property is in violation of any
      applicable zoning law or regulation. To the best of CHL's knowledge, all
      inspections, licenses and certificates required to be made or issued
      with respect to all occupied portions of the Mortgaged Property and,
      with respect to the use and occupancy of the same, including but not
      limited to certificates of occupancy and fire underwriting certificates,
      have been made or

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<PAGE>

      obtained from the appropriate authorities, unless the lack thereof would
      not have a material adverse effect on the value of such Mortgaged
      Property, and the Mortgaged Property is lawfully occupied under
      applicable law.

                (22) The Mortgage Note and the related Mortgage are genuine,
      and each is the legal, valid and binding obligation of the maker
      thereof, enforceable in accordance with its terms and under applicable
      law, except that (a) the enforceability thereof may be limited by
      bankruptcy, insolvency, moratorium, receivership and other similar laws
      relating to creditors' rights generally and (b) the remedy of specific
      performance and injunctive and other forms of equitable relief may be
      subject to equitable defenses and to the discretion of the court before
      which any proceeding therefor may be brought. To the best of CHL's
      knowledge, all parties to the Mortgage Note and the Mortgage had legal
      capacity to execute the Mortgage Note and the Mortgage and each Mortgage
      Note and Mortgage have been duly and properly executed by such parties.

                (23) The proceeds of the Mortgage Loan have been fully
      disbursed, there is no requirement for future advances thereunder, and
      any and all requirements as to completion of any on-site or off-site
      improvements and as to disbursements of any escrow funds therefor have
      been complied with. All costs, fees and expenses incurred in making, or
      closing or recording the Mortgage Loan were paid.

                (24) The related Mortgage contains customary and enforceable
      provisions that render the rights and remedies of the holder thereof
      adequate for the realization against the Mortgaged Property of the
      benefits of the security, including, (i) in the case of a Mortgage
      designated as a deed of trust, by trustee's sale, and (ii) otherwise by
      judicial foreclosure.

                (25) With respect to each Mortgage constituting a deed of
      trust, a trustee, duly qualified under applicable law to serve as such,
      has been properly designated and currently so serves and is named in
      such Mortgage, and no fees or expenses are or will become payable by the
      Certificateholders to the trustee under the deed of trust, except in
      connection with a trustee's sale after default by the Mortgagor.

                (26) Each Mortgage Note and each Mortgage is acceptable in
      form to Fannie Mae and Freddie Mac.

                (27) There exist no deficiencies with respect to escrow
      deposits and payments, if such are required, for which customary
      arrangements for repayment thereof have not been made, and no escrow
      deposits or payments of other charges or payments due the Sellers have
      been capitalized under the Mortgage or the related Mortgage Note.

                (28) The origination, underwriting, servicing and collection
      practices with respect to each Mortgage Loan have been in all respects
      legal, proper, prudent and customary in the mortgage lending and
      servicing business, as conducted by prudent lending institutions which
      service mortgage loans of the same type in the jurisdiction in which the
      Mortgaged Property is located.

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                (29) There is no pledged account or other security other than
      real estate securing the Mortgagor's obligations.

                (30) No Mortgage Loan has a shared appreciation feature, or
      other contingent interest feature.

                (31) Each Mortgage Loan contains a customary "due on sale"
      clause.

                (32) No less than approximately the percentage specified in
      the Collateral Schedule of the Initial Mortgage Loans in Loan Group 1,
      Loan Group 2 and Loan Group 3 are secured by single family detached
      dwellings. No more than approximately the percentage specified in the
      Collateral Schedule of the Initial Mortgage Loans in Loan Group 1, Loan
      Group 2 and Loan Group 3 are secured by two- to four-family dwellings.
      No more than approximately the percentage specified in the Collateral
      Schedule of the Initial Mortgage Loans in Loan Group 1, Loan Group 2 and
      Loan Group 3 are secured by low-rise condominium units. No more than
      approximately the percentage specified in the Collateral Schedule of the
      Initial Mortgage Loans in Loan Group 1, Loan Group 2 and Loan Group 3
      are secured by high-rise condominium units. No more than approximately
      the percentage specified in the Collateral Schedule of the Initial
      Mortgage Loans in Loan Group 1, Loan Group 2 and Loan Group 3 are
      secured by manufactured housing. No more than approximately the
      percentage specified in the Collateral Schedule of the Initial Mortgage
      Loans in Loan Group 1, Loan Group 2 and Loan Group 3 are secured by
      PUDs.

                (33) Each Initial Mortgage Loan in Loan Group 1, Loan Group 2
      and Loan Group 3 was originated on or after the date specified in the
      Collateral Schedule.

                (34) Each Initial Mortgage Loan that is an Adjustable Rate
      Mortgage Loan, other than a Two-Year Hybrid Mortgage Loan, a Three-Year
      Hybrid Mortgage Loan or a Five-Year Hybrid Mortgage Loan, had an initial
      Adjustment Date no later than the applicable date specified on the
      Collateral Schedule; each Initial Mortgage Loan that is a Two-Year
      Hybrid Mortgage Loan had an initial Adjustment Date no later than the
      applicable date specified on the Collateral Schedule; each Initial
      Mortgage Loan that is a Three-Year Hybrid Mortgage Loan had an initial
      Adjustment Date no later than the applicable date specified on the
      Collateral Schedule; and each Initial Mortgage Loan that is a Five-Year
      Hybrid Mortgage Loan had an initial Adjustment Date no later than the
      applicable date specified on the Collateral Schedule.

                (35) Approximately the percentage specified in the Collateral
      Schedule of the Initial Mortgage Loans in Loan Group 1, Loan Group 2 and
      Loan Group 3 provide for a Prepayment Charge.

                (36) On the basis of representations made by the Mortgagors in
      their loan applications, no more than approximately the percentage
      specified in the Collateral Schedule of the Initial Mortgage Loans in
      Loan Group 1, Loan Group 2 and Loan Group 3, respectively, are secured
      by investor properties, and no less than approximately the percentage
      specified in the Collateral Schedule of the Initial Mortgage Loans in
      Loan

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      Group 1, Loan Group 2 and Loan Group 3 respectively, are secured by
      owner-occupied Mortgaged Properties that are primary residences.

                (37) At the Cut-off Date, the improvements upon each Mortgaged
      Property are covered by a valid and existing hazard insurance policy
      with a generally acceptable carrier that provides for fire and extended
      coverage and coverage for such other hazards as are customary in the
      area where the Mortgaged Property is located in an amount that is at
      least equal to the lesser of (i) the maximum insurable value of the
      improvements securing such Mortgage Loan or (ii) the greater of (a) the
      outstanding principal balance of the Mortgage Loan and (b) an amount
      such that the proceeds of such policy shall be sufficient to prevent the
      Mortgagor and/or the mortgagee from becoming a co-insurer. If the
      Mortgaged Property is a condominium unit, it is included under the
      coverage afforded by a blanket policy for the condominium unit. All such
      individual insurance policies and all flood policies referred to in item
      (38) below contain a standard mortgagee clause naming the applicable
      Seller or the original mortgagee, and its successors in interest, as
      mortgagee, and the applicable Seller has received no notice that any
      premiums due and payable thereon have not been paid; the Mortgage
      obligates the Mortgagor thereunder to maintain all such insurance,
      including flood insurance, at the Mortgagor's cost and expense, and upon
      the Mortgagor's failure to do so, authorizes the holder of the Mortgage
      to obtain and maintain such insurance at the Mortgagor's cost and
      expense and to seek reimbursement therefor from the Mortgagor.

                (38) If the Mortgaged Property is in an area identified in the
      Federal Register by the Federal Emergency Management Agency as having
      special flood hazards, a flood insurance policy in a form meeting the
      requirements of the current guidelines of the Flood Insurance
      Administration is in effect with respect to such Mortgaged Property with
      a generally acceptable carrier in an amount representing coverage not
      less than the least of (A) the original outstanding principal balance of
      the Mortgage Loan, (B) the minimum amount required to compensate for
      damage or loss on a replacement cost basis, or (C) the maximum amount of
      insurance that is available under the Flood Disaster Protection Act of
      1973, as amended.

                (39) To the best of CHL's knowledge, there is no proceeding
      occurring, pending or threatened for the total or partial condemnation
      of the Mortgaged Property.

                (40) There is no material monetary default existing under any
      Mortgage or the related Mortgage Note and, to the best of CHL's
      knowledge, there is no material event that, with the passage of time or
      with notice and the expiration of any grace or cure period, would
      constitute a default, breach, violation or event of acceleration under
      the Mortgage or the related Mortgage Note; and no Seller has waived any
      default, breach, violation or event of acceleration.

                (41) Each Mortgaged Property is improved by a one- to
      four-family residential dwelling, including condominium units and
      dwelling units in PUDs. To the best of CHL's knowledge, no improvement
      to a Mortgaged Property includes a cooperative or a mobile home or
      constitutes other than real property under state law.

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                (42) Each Mortgage Loan is being serviced by the Master
      Servicer.

                (43) Any future advances made prior to the Cut-off Date have
      been consolidated with the outstanding principal amount secured by the
      Mortgage, and the secured principal amount, as consolidated, bears a
      single interest rate and single repayment term reflected on the Mortgage
      Loan Schedule. The consolidated principal amount does not exceed the
      original principal amount of the Mortgage Loan. The Mortgage Note does
      not permit or obligate the Master Servicer to make future advances to
      the Mortgagor at the option of the Mortgagor.

                (44) All taxes, governmental assessments, insurance premiums,
      water, sewer and municipal charges, leasehold payments or ground rents
      that previously became due and owing have been paid, or an escrow of
      funds has been established in an amount sufficient to pay for every such
      item that remains unpaid and that has been assessed, but is not yet due
      and payable. Except for (A) payments in the nature of escrow payments,
      and (B) interest accruing from the date of the Mortgage Note or date of
      disbursement of the Mortgage proceeds, whichever is later, to the day
      that precedes by one month the Due Date of the first installment of
      principal and interest, including without limitation, taxes and
      insurance payments, the Master Servicer has not advanced funds, or
      induced, solicited or knowingly received any advance of funds by a party
      other than the Mortgagor, directly or indirectly, for the payment of any
      amount required by the Mortgage.

                (45) The Mortgage Loans originated by CHL were underwritten in
      all material respects in accordance with CHL's underwriting guidelines
      for credit blemished quality mortgage loans or, with respect to Mortgage
      Loans purchased by CHL were underwritten in all material respects in
      accordance with customary and prudent underwriting guidelines generally
      used by originators of credit blemished quality mortgage loans.

                (46) Prior to the approval of the Mortgage Loan application,
      an appraisal of the related Mortgaged Property was obtained from a
      qualified appraiser, duly appointed by the originator, who had no
      interest, direct or indirect, in the Mortgaged Property or in any loan
      made on the security thereof, and whose compensation is not affected by
      the approval or disapproval of the Mortgage Loan; such appraisal is in a
      form acceptable to Fannie Mae and Freddie Mac.

                (47) None of the Mortgage Loans is a graduated payment
      mortgage loan or a growing equity mortgage loan, and no Mortgage Loan is
      subject to a buydown or similar arrangement.

                (48) The Mortgage Rates borne by the Initial Mortgage Loans in
      Loan Group 1, Loan Group 2 and Loan Group 3 as of the Cut-off Date
      ranged between the approximate per annum percentages specified on the
      Collateral Schedule and the weighted average Mortgage Rate as of the
      Cut-off Date was approximately the per annum rate specified on the
      Collateral Schedule.

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                (49) The Mortgage Loans were selected from among the
      outstanding one- to four-family mortgage loans in the applicable
      Seller's portfolio at the Closing Date as to which the representations
      and warranties made as to the Mortgage Loans set forth in this Section
      2.03(b) and Sections 2.03(c) and 2.03(d) can be made. No selection was
      made in a manner that would adversely affect the interests of
      Certificateholders.

                (50) The Gross Margins on the Initial Mortgage Loans in Loan
      Group 1, Loan Group 2 and Loan Group 3 range between the approximate
      percentages specified on the Collateral Schedule, and the weighted
      average Gross Margin was approximately the percentage specified in the
      Collateral Schedule.

                (51) Each of the Initial Mortgage Loans in the Mortgage Pool
      has a Due Date on or before the date specified in the Collateral
      Schedule.

                (52) The Mortgage Loans, individually and in the aggregate,
      conform in all material respects to the descriptions thereof in the
      Prospectus Supplement.

                (53) There is no obligation on the part of any Seller under
      the terms of the Mortgage or related Mortgage Note to make payments in
      addition to those made by the Mortgagor.

                (54) Any leasehold estate securing a Mortgage Loan has a term
      of not less than five years in excess of the term of the related
      Mortgage Loan.

                (55) Each Mortgage Loan represents a "qualified mortgage"
      within the meaning of Section 860(a)(3) of the Code (but without regard
      to the rule in Treasury Regulation ss. 1.860G-2(f)(2) that treats a
      defective obligation as a qualified mortgage, or any substantially
      similar successor provision) and applicable Treasury regulations
      promulgated thereunder.

                (56) No Mortgage Loan was either a "consumer credit contract"
      or a "purchase money loan" as such terms are defined in 16 C.F.R. ss.
      433 nor is any Mortgage Loan a "mortgage" as defined in 15 U.S.C. ss.
      1602(aa).

                (57) To the extent required under applicable law, each
      originator and subsequent mortgagee or servicer of the Mortgage Loan
      complied with all licensing requirements and was authorized to transact
      and do business in the jurisdiction in which the related Mortgaged
      Property is located at all times when it held or serviced the Mortgage
      Loan. Any and all requirements of any federal, state or local laws or
      regulations, including, without limitation, usury, truth-in-lending,
      real estate settlement procedures, consumer credit protection,
      anti-predatory lending, fair credit reporting, unfair collection
      practice, equal credit opportunity, fair housing and disclosure laws and
      regulations, applicable to the solicitation, origination, collection and
      servicing of such Mortgage Loan have been complied with in all material
      respects; and any obligations of the holder of the Mortgage Note,
      Mortgage and other loan documents have been complied with in all
      material respects; servicing of each Mortgage Loan has been in
      accordance with prudent mortgage servicing standards, any applicable
      laws, rules and regulations and in accordance with the terms of the
      Mortgage Notes, Mortgage and other

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      loan documents, whether such origination and servicing was done by the
      applicable Seller, its affiliates, or any third party which originated
      the Mortgage Loan on behalf of, or sold the Mortgage Loan to, any of
      them, or any servicing agent of any of the foregoing.

                (58) The methodology used in underwriting the extension of
      credit for the Mortgage Loan employs objective mathematical principles
      which relate the borrower's income, assets and liabilities to the
      proposed payment and such underwriting methodology does not rely on the
      extent of the borrower's equity in the collateral as the principal
      determining factor in approving such credit extension. Such underwriting
      methodology confirmed that at the time of origination
      (application/approval) the borrower had a reasonable ability to make
      timely payments on the Mortgage Loan.

                (59) No borrower was required to purchase any credit life,
      disability, accident or health insurance product as a condition of
      obtaining the extension of credit. No borrower obtained a prepaid
      single-premium credit life, disability, accident or health insurance
      policy in connection with the origination of the Mortgage Loan.

                (60) If the Mortgage Loan provides that the interest rate on
      the principal balance of the related Mortgage Loan may be adjusted, all
      of the terms of the related Mortgage pertaining to interest rate
      adjustments, payment adjustments and adjustments of the outstanding
      principal balance have been made in accordance with the terms of the
      related Mortgage Note and applicable law and are enforceable and such
      adjustments will not affect the priority of the Mortgage lien.

                (61) The Mortgaged Property complies with all applicable laws,
      rules and regulations relating to environmental matters, including but
      not limited to those relating to radon, asbestos and lead paint and no
      Seller nor, to the best of CHL's knowledge, the Mortgagor, has received
      any notice of any violation or potential violation of such law.

                (62) There is no action, suit or proceeding pending, or to the
      best of CHL's knowledge, threatened or likely to be asserted with
      respect to the Mortgage Loan against or affecting any Seller before or
      by any court, administrative agency, arbitrator or governmental body.

                (63) No action, inaction, or event has occurred and no state
      of fact exists or has existed that has resulted or will result in the
      exclusion from, denial of, or defense to coverage under any applicable
      hazard insurance policy, irrespective of the cause of such failure of
      coverage. In connection with the placement of any such insurance, no
      commission, fee, or other compensation has been or will be received by
      CHL or any designee of CHL or any corporation in which CHL or any
      officer, director, or employee had a financial interest at the time of
      placement of such insurance.

                (64) Each Mortgage Loan has a fully assignable life of loan
      tax service contract which may be assigned without the payment of any
      fee.

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                (65) No Mortgagor has notified CHL or the Master Servicer on
      CHL's behalf, and CHL has no knowledge, of any relief requested or
      allowed to a Mortgagor under the Relief Act or any similar state or
      local law.

                (66) Each Mortgage Loan was originated by a savings and loan
      association, savings bank, commercial bank, credit union, insurance
      company, or mortgage banking company which is supervised and examined by
      a federal or state authority, or by a mortgagee approved by the
      Secretary of Housing and Urban Development pursuant to Sections 2.03 and
      2.11 of the National Housing Act.

                (67) Each Mortgage Loan was (A) originated no earlier than six
      months prior to the time the applicable Seller purchased such Mortgage
      Loan pursuant to a mortgage loan purchase agreement or other similar
      agreement and (B) underwritten or reunderwritten by the applicable
      Seller in accordance with the applicable Seller's underwriting
      guidelines in effect at the time the loan was underwritten or
      reunderwritten, as applicable.

                (68) Each Mortgage Loan, at the time it was originated and as
      of the Closing Date or the related Subsequent Transfer Date, as
      applicable, complied in all material respects with applicable local,
      state and federal laws, including, but not limited to, all predatory and
      abusive lending laws.

                (69) None of the Mortgage Loans is a "high cost" mortgage loan
      as defined by applicable federal, state and local predatory and abusive
      lending laws.

                (70) Each Prepayment Charge is enforceable and was originated
      in compliance with all applicable federal, state and local laws.

                (71) None of the Mortgage Loans that are secured by property
      located in the State of Illinois are in violation of the provisions of
      the Illinois Interest Act; 815 Ill. Comp. Stat. 205/0.01 (2004).

                (72) There is no Mortgage Loan in the Trust Fund that was
      originated on or after March 7, 2003, which is a "high cost home loan"
      as defined under the Georgia Fair Lending Act.

                (73) No Mortgage Loan in the Trust Fund is a High Cost Loan or
      Covered Loan, as applicable (as such terms are defined in the
      then-current Standard & Poor's LEVELS(R) Glossary which is now Version
      5.6(c), Appendix E) and no Mortgage Loan originated on or after October
      1, 2002 through March 6, 2003 is governed by the Georgia Fair Lending
      Act.

                (74) Each Mortgage Loan is secured by a "single family
      residence" within the meaning of Section 25(e)(10) of the Internal
      Revenue Code of 1986 (as amended) (the "Code"). The fair market value of
      the manufactured home securing each Mortgage Loan was at least equal to
      80% of the adjusted issue price of the contract at either (i) the time
      the contract was originated (determined pursuant to the REMIC

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      Provisions) or (ii) the time the contract is transferred to the
      purchaser. Each Mortgage Loan is a "qualified mortgage" under Section
      860G(a)(3) of the Code.

                (75) No Mortgage Loan in the Trust Fund is a "high cost home,"
      "covered" (excluding home loans defined as "covered home loans" in the
      New Jersey Home Ownership Security Act of 2002 that were originated
      between November 26, 2003 and July 7, 2004), "high risk home" or
      "predatory" loan under any applicable state, federal or local law (or a
      similarly classified loan using different terminology under a law
      imposing heightened regulatory scrutiny or additional legal liability
      for residential mortgage loans having high interest rates, points and/or
      fees).

                (76) There is no Mortgage Loan in the Trust Fund that was
      originated on or after October 1, 2002 and before March 7, 2003, which
      is secured by property located in the State of Georgia.

                (77) Representations and Warranties relating to the Mortgage
      Loans in Loan Group 1:

                  (i) No Mortgage Loan in Loan Group 1 is covered by the Home
            Ownership and Equity Protection Act of 1994 ("HOEPA");

                  (ii) No borrower obtained a prepaid single-premium credit
            life, credit disability, credit unemployment or credit property
            insurance policy in connection with the origination of the
            Mortgage Loan;

                  (iii) No Mortgage Loan in Loan Group 1 originated on or
            after October 1, 2002 will impose a prepayment premium for a term
            in excess of three years. Any Mortgage Loan in Loan Group 1
            originated prior to such date will not impose prepayment penalties
            in excess of five years;

                  (iv) With respect to (a) any Mortgage Loan in Loan Group 1
            originated by CHL from August 1, 2004 through April 30, 2005 and
            (b) any Mortgage Loan in Loan Group 1 originated by any other
            entity through April 30, 2005, if the related Mortgage or the
            related Mortgage Note, or any document relating to the loan
            transaction, contains a mandatory arbitration clause (that is, a
            clause that requires the borrower to submit to arbitration to
            resolve any dispute arising out of or relating in any way to the
            mortgage loan transaction), CHL will (i) notify the related
            borrower in writing within 60 days after the issuance of the
            Certificates that none of the related seller, the related servicer
            or any subsequent party that acquires an interest in the loan or
            services such Mortgage Loan will enforce such arbitration clause
            against the borrower, but that the borrower will continue to have
            the right to submit a dispute to arbitration and (ii) place a copy
            of such notice in the Mortgage File; and with respect to any
            Mortgage Loan in Loan Group 2 and originated on or after May 1,
            2005, neither the related mortgage nor the related mortgage note
            requires the borrower to submit to arbitration to resolve any
            dispute arising out of or relating in any way to the mortgage loan
            transaction; and

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                  (v) Each Mortgage Loan in Loan Group 1 had an original
            principal balance that conforms to Freddie Mac guidelines
            concerning original principal balance limits at the time of the
            origination of such mortgage loan.

                (78) The representations in Section 2.03(c)(1)-(6) and
      2.03(d)(1)-(6) are true and correct.

            (c) Park Monaco hereby represents and warrants to the Depositor
and the Trustee as follows, as of the Cut-off Date:

                (1) Park Monaco is duly organized as a Delaware corporation
      and is validly existing and in good standing under the laws of the State
      of Delaware and is duly authorized and qualified to transact any and all
      business contemplated by this Agreement and each Subsequent Transfer
      Agreement to be conducted by Park Monaco in any state in which a
      Mortgaged Property securing a Park Monaco Mortgage Loan is located or is
      otherwise not required under applicable law to effect such qualification
      and, in any event, is in compliance with the doing business laws of any
      such state, to the extent necessary to ensure its ability to enforce
      each Park Monaco Mortgage Loan, to sell the Park Monaco Mortgage Loans
      in accordance with the terms of this Agreement and each Subsequent
      Transfer Agreement and to perform any of its other obligations under
      this Agreement in accordance with the terms hereof.

                (2) Park Monaco has the full company power and authority to
      sell each Park Monaco Mortgage Loan, and to execute, deliver and
      perform, and to enter into and consummate the transactions contemplated
      by this Agreement and each Subsequent Transfer Agreement and has duly
      authorized by all necessary corporate action on the part of Park Monaco
      the execution, delivery and performance of this Agreement and each
      Subsequent Transfer Agreement; and this Agreement and each Subsequent
      Transfer Agreement, assuming the due authorization, execution and
      delivery hereof by the other parties hereto, constitutes a legal, valid
      and binding obligation of Park Monaco, enforceable against Park Monaco
      in accordance with its terms, except that (a) the enforceability hereof
      may be limited by bankruptcy, insolvency, moratorium, receivership and
      other similar laws relating to creditors' rights generally and (b) the
      remedy of specific performance and injunctive and other forms of
      equitable relief may be subject to equitable defenses and to the
      discretion of the court before which any proceeding therefor may be
      brought.

                (3) The execution and delivery of this Agreement and each
      Subsequent Transfer Agreement by Park Monaco, the sale of the Park
      Monaco Mortgage Loans by Park Monaco under this Agreement and each
      Subsequent Transfer Agreement, the consummation of any other of the
      transactions contemplated by this Agreement and each Subsequent Transfer
      Agreement, and the fulfillment of or compliance with the terms hereof
      are in the ordinary course of business of Park Monaco and will not (A)
      result in a material breach of any term or provision of the certificate
      of incorporation or by-laws of Park Monaco or (B) materially conflict
      with, result in a material breach, violation or acceleration of, or
      result in a material default under, the terms of any other material
      agreement or instrument to which Park Monaco is a party or by which it
      may be bound,

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      or (C) constitute a material violation of any statute, order or
      regulation applicable to Park Monaco of any court, regulatory body,
      administrative agency or governmental body having jurisdiction over Park
      Monaco; and Park Monaco is not in breach or violation of any material
      indenture or other material agreement or instrument, or in violation of
      any statute, order or regulation of any court, regulatory body,
      administrative agency or governmental body having jurisdiction over it
      which breach or violation may materially impair Park Monaco's ability to
      perform or meet any of its obligations under this Agreement.

                (4) No litigation is pending or, to the best of Park Monaco's
      knowledge, threatened, against Park Monaco that would materially and
      adversely affect the execution, delivery or enforceability of this
      Agreement or any Subsequent Transfer Agreement or the ability of Park
      Monaco to sell the Park Monaco Mortgage Loans or to perform any of its
      other obligations under this Agreement or any Subsequent Transfer
      Agreement in accordance with the terms hereof or thereof.

                (5) No consent, approval, authorization or order of any court
      or governmental agency or body is required for the execution, delivery
      and performance by Park Monaco of, or compliance by Park Monaco with,
      this Agreement or any Subsequent Transfer Agreement or the consummation
      of the transactions contemplated hereby, or if any such consent,
      approval, authorization or order is required, Park Monaco has obtained
      the same.

                (6) Park Monaco will treat the transfer of the Park Monaco
      Mortgage Loans to the Depositor as a sale of the Park Monaco Mortgage
      Loans for all tax, accounting and regulatory purposes.

                (7) Immediately prior to the assignment of each Park Monaco
      Mortgage Loan to the Depositor, Park Monaco had good title to, and was
      the sole owner of, such Park Monaco Mortgage Loan free and clear of any
      pledge, lien, encumbrance 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 the same pursuant to this
      Agreement.

            (d) Park Sienna hereby represents and warrants to the Depositor
and the Trustee as follows, as of the Cut-off Date:

                (1) Park Sienna is duly organized as a Delaware limited
      liability company and is validly existing and in good standing under the
      laws of the State of Delaware and is duly authorized and qualified to
      transact any and all business contemplated by this Agreement and each
      Subsequent Transfer Agreement to be conducted by Park Sienna in any
      state in which a Mortgaged Property securing a Park Sienna Mortgage Loan
      is located or is otherwise not required under applicable law to effect
      such qualification and, in any event, is in compliance with the doing
      business laws of any such state, to the extent necessary to ensure its
      ability to enforce each Park Sienna Mortgage Loan, to sell the Park
      Sienna Mortgage Loans in accordance with the terms of

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      this Agreement and each Subsequent Transfer Agreement and to perform any
      of its other obligations under this Agreement in accordance with the
      terms hereof.

                (2) Park Sienna has the full company power and authority to
      sell each Park Sienna Mortgage Loan, and to execute, deliver and
      perform, and to enter into and consummate the transactions contemplated
      by this Agreement and each Subsequent Transfer Agreement and has duly
      authorized by all necessary company action on the part of Park Sienna
      the execution, delivery and performance of this Agreement and each
      Subsequent Transfer Agreement; and this Agreement and each Subsequent
      Transfer Agreement, assuming the due authorization, execution and
      delivery hereof by the other parties hereto, constitutes a legal, valid
      and binding obligation of Park Sienna, enforceable against Park Sienna
      in accordance with its terms, except that (a) the enforceability hereof
      may be limited by bankruptcy, insolvency, moratorium, receivership and
      other similar laws relating to creditors' rights generally and (b) the
      remedy of specific performance and injunctive and other forms of
      equitable relief may be subject to equitable defenses and to the
      discretion of the court before which any proceeding therefor may be
      brought.

                (3) The execution and delivery of this Agreement and each
      Subsequent Transfer Agreement by Park Sienna, the sale of the Park
      Sienna Mortgage Loans by Park Sienna under this Agreement and each
      Subsequent Transfer Agreement, the consummation of any other of the
      transactions contemplated by this Agreement and each Subsequent Transfer
      Agreement and the fulfillment of or compliance with the terms hereof are
      in the ordinary course of business of Park Sienna and will not (A)
      result in a material breach of any term or provision of the certificate
      of formation or limited liability company agreement of Park Sienna or
      (B) materially conflict with, result in a material breach, violation or
      acceleration of, or result in a material default under, the terms of any
      other material agreement or instrument to which Park Sienna is a party
      or by which it may be bound, or (C) constitute a material violation of
      any statute, order or regulation applicable to Park Sienna of any court,
      regulatory body, administrative agency or governmental body having
      jurisdiction over Park Sienna; and Park Sienna is not in breach or
      violation of any material indenture or other material agreement or
      instrument, or in violation of any statute, order or regulation of any
      court, regulatory body, administrative agency or governmental body
      having jurisdiction over it which breach or violation may materially
      impair Park Sienna's ability to perform or meet any of its obligations
      under this Agreement.

                (4) No litigation is pending or, to the best of Park Sienna's
      knowledge, threatened, against Park Sienna that would materially and
      adversely affect the execution, delivery or enforceability of this
      Agreement or any Subsequent Transfer Agreement or the ability of Park
      Sienna to sell the Park Sienna Mortgage Loans or to perform any of its
      other obligations under this Agreement or any Subsequent Transfer
      Agreement in accordance with the terms hereof or thereof.

                (5) No consent, approval, authorization or order of any court
      or governmental agency or body is required for the execution, delivery
      and performance by Park Sienna of, or compliance by Park Sienna with,
      this Agreement or any Subsequent Transfer Agreement or the consummation
      of the transactions contemplated hereby, or if

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      any such consent, approval, authorization or order is required, Park
      Sienna has obtained the same.

                (6) Park Sienna will treat the transfer of the Park Sienna
      Mortgage Loans to the Depositor as a sale of the Park Sienna Mortgage
      Loans for all tax, accounting and regulatory purposes.

                (7) Immediately prior to the assignment of each Park Sienna
      Mortgage Loan to the Depositor, Park Sienna had good title to, and was
      the sole owner of, such the Park Sienna Mortgage Loan free and clear of
      any pledge, lien, encumbrance 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 the same pursuant to this
      Agreement.

            (e) Upon discovery by any of the parties hereto of a breach of a
representation or warranty set forth in Section 2.03(a) through (d) that
materially and adversely affects the interests of the Certificateholders in
any Mortgage Loan, the party discovering such breach shall give prompt notice
thereof to the other parties, the NIM Insurer and the Swap Counterparty. Each
of the Master Servicer and the Sellers (each, a "Representing Party") hereby
covenants with respect to the representations and warranties set forth in
Sections 2.03(a) through (d) that within 90 days of the earlier of the
discovery by such Representing Party or receipt of written notice by such
Representing Party from any party of a breach of any representation or
warranty set forth herein made that materially and adversely affects the
interests of the Certificateholders in any Mortgage Loan, it shall cure such
breach in all material respects and, if such breach is not so cured, shall,
(i) if such 90-day period expires prior to the second anniversary of the
Closing Date, remove such Mortgage Loan (a "Deleted Mortgage Loan") from the
Trust Fund and substitute in its place a Replacement Mortgage Loan, in the
manner and subject to the conditions set forth in this Section; or (ii)
repurchase the affected Mortgage Loan or Mortgage Loans from the Trustee at
the Purchase Price in the manner set forth below; provided that (a) any such
substitution pursuant to (i) above or repurchase pursuant to (ii) above shall
not be effected prior to the delivery to the Trustee of the Opinion of Counsel
required by Section 2.05 hereof, (b) any such substitution pursuant to (i)
above shall not be effected prior to the additional delivery to the Trustee of
a Request for File Release and (c) any such substitution pursuant to (i) above
shall include a payment by the applicable Representing Party of any amount as
calculated under item (iii) of the definition of "Purchase Price". Any
Representing Party liable for a breach under this Section 2.03 shall promptly
reimburse the Master Servicer or the Trustee for any expenses reasonably
incurred by the Master Servicer or the Trustee in respect of enforcing the
remedies for such breach. To enable the Master Servicer to amend the Mortgage
Loan Schedule, any Representing Party liable for a breach under this Section
2.03 shall, unless it cures such breach in a timely fashion pursuant to this
Section 2.03, promptly notify the Master Servicer whether such Representing
Party intends either to repurchase, or to substitute for, the Mortgage Loan
affected by such breach. With respect to the representations and warranties
described in this Section that are made to the best of the Representing
Party's knowledge, if it is discovered by any of the Depositor, the Master
Servicer, the Sellers 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, notwithstanding the
Representing Party's lack of knowledge with respect to the substance of such
representation or warranty, such inaccuracy shall be deemed a breach of the
applicable representation or warranty. Any breach of a

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representation set forth in Section 2.03(a)(8), (b)(72), (b)(75), (b)(76) or
(b)(77) shall be deemed to materially and adversely affect the
Certificateholders.

            With respect to any Replacement Mortgage Loan or Loans, the
applicable Seller delivering such Replacement Mortgage Loan shall deliver to
the Trustee for the benefit of the Certificateholders the related Mortgage
Note, Mortgage and assignment of the Mortgage, and such other documents and
agreements as are required by Section 2.01, with the Mortgage Note endorsed
and the Mortgage assigned as required by Section 2.01. No substitution will be
made in any calendar month after the Determination Date for such month.
Scheduled Payments due with respect to Replacement Mortgage Loans in the Due
Period related to the Distribution Date on which such proceeds are to be
distributed shall not be part of the Trust Fund and will be retained by the
applicable Seller delivering such Replacement Mortgage Loan on such
Distribution Date. For the month of substitution, distributions to
Certificateholders will include the Scheduled Payment due on any Deleted
Mortgage Loan for the related Due Period and thereafter the applicable Seller
shall be entitled to retain all amounts received in respect of such Deleted
Mortgage Loan. The Master Servicer shall amend the Mortgage Loan Schedule for
the benefit of the Certificateholders to reflect the removal of such Deleted
Mortgage Loan and the substitution of the Replacement Mortgage Loan or Loans
and the Master Servicer shall deliver the amended Mortgage Loan Schedule to
the Trustee. Upon such substitution, the Replacement Mortgage Loan or Loans
shall be subject to the terms of this Agreement in all respects, and the
applicable Seller delivering such Replacement Mortgage Loan shall be deemed to
have made with respect to such Replacement Mortgage Loan or Loans, as of the
date of substitution, the representations and warranties set forth in Section
2.03(b), (c) or (d) with respect to such Mortgage Loan. Upon any such
substitution and the deposit to the Certificate Account of the amount required
to be deposited therein in connection with such substitution as described in
the following paragraph, the Co-Trustee shall release to the Representing
Party the Mortgage File relating to such Deleted Mortgage Loan and held for
the benefit of the Certificateholders and shall execute and deliver at the
Master Servicer's direction such instruments of transfer or assignment as have
been prepared by the Master Servicer, in each case without recourse, as shall
be necessary to vest in the applicable Seller, or its respective designee,
title to the Trustee's interest in any Deleted Mortgage Loan substituted for
pursuant to this Section 2.03.

            For any month in which any Seller substitutes one or more
Replacement Mortgage Loans for one or more Deleted Mortgage Loans, the Master
Servicer will determine the amount (if any) by which the aggregate principal
balance of all such Replacement Mortgage Loans as of the date of substitution
is less than the Stated Principal Balance (after application of the principal
portion of the Scheduled Payment due in the month of substitution) of all such
Deleted Mortgage Loans. An amount equal to the aggregate of the deficiencies
described in the preceding sentence (such amount, the "Substitution Adjustment
Amount") shall be forwarded by the applicable Seller to the Master Servicer
and deposited by the Master Servicer into the Certificate Account not later
than the Determination Date for the Distribution Date relating to the
Prepayment Period during which the related Mortgage Loan became required to be
purchased or replaced hereunder.

            In the event that a Seller shall have repurchased a Mortgage Loan,
the Purchase Price therefor shall be deposited in the Certificate Account
pursuant to Section 3.05 on the Determination Date for the Distribution Date
in the month following the month during which

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<PAGE>

such Seller became obligated to repurchase or replace such Mortgage Loan and
upon such deposit of the Purchase Price, the delivery of the Opinion of
Counsel required by Section 2.05, if any, and the receipt of a Request for
File Release, the Co-Trustee shall release the related Mortgage File held for
the benefit of the Certificateholders to such Seller, and the Trustee shall
execute and deliver at such Person's direction the related instruments of
transfer or assignment prepared by such Seller, in each case without recourse,
as shall be necessary to transfer title from the Trustee for the benefit of
the Certificateholders and transfer the Trustee's interest to such Seller to
any Mortgage Loan purchased pursuant to this Section 2.03. It is understood
and agreed that the obligation under this Agreement of the Sellers to cure,
repurchase or replace any Mortgage Loan as to which a breach has occurred and
is continuing shall constitute the sole remedy against the Sellers respecting
such breach available to Certificateholders, the Depositor or the Trustee.

            (f) The representations and warranties set forth in this Section
2.03 shall survive delivery of the respective Mortgage Files to the Co-Trustee
for the benefit of the Certificateholders with respect to each Mortgage Loan.

            Section 2.04 Representations and Warranties of the Depositor.
                         ------------------------------------------------

            The Depositor hereby represents and warrants to the Master
Servicer and the Trustee as follows, as of the date hereof and as of each
Subsequent Transfer Date:

                (1) The Depositor is duly organized and is validly existing as
      a corporation in good standing under the laws of the State of Delaware
      and has full power and authority (corporate and other) necessary to own
      or hold its properties and to conduct its business as now conducted by
      it and to enter into and perform its obligations under this Agreement
      and each Subsequent Transfer Agreement.

                (2) The Depositor has the full corporate power and authority
      to execute, deliver and perform, and to enter into and consummate the
      transactions contemplated by, this Agreement and each Subsequent
      Transfer Agreement and has duly authorized, by all necessary corporate
      action on its part, the execution, delivery and performance of this
      Agreement and each Subsequent Transfer Agreement; and this Agreement and
      each Subsequent Transfer Agreement, assuming the due authorization,
      execution and delivery hereof by the other parties hereto, constitutes a
      legal, valid and binding obligation of the Depositor, enforceable
      against the Depositor in accordance with its terms, subject, as to
      enforceability, to (i) bankruptcy, insolvency, reorganization,
      moratorium and other similar laws affecting creditors' rights generally
      and (ii) general principles of equity, regardless of whether enforcement
      is sought in a proceeding in equity or at law.

                (3) The execution and delivery of this Agreement and each
      Subsequent Transfer Agreement by the Depositor, the consummation of the
      transactions contemplated by this Agreement, and the fulfillment of or
      compliance with the terms hereof are in the ordinary course of business
      of the Depositor and will not (A) result in a material breach of any
      term or provision of the charter or by-laws of the Depositor or (B)
      materially conflict with, result in a material breach, violation or
      acceleration of, or result

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<PAGE>

      in a material default under, the terms of any other material agreement
      or instrument to which the Depositor is a party or by which it may be
      bound or (C) constitute a material violation of any statute, order or
      regulation applicable to the Depositor of any court, regulatory body,
      administrative agency or governmental body having jurisdiction over the
      Depositor; and the Depositor is not in breach or violation of any
      material indenture or other material agreement or instrument, or in
      violation of any statute, order or regulation of any court, regulatory
      body, administrative agency or governmental body having jurisdiction
      over it which breach or violation may materially impair the Depositor's
      ability to perform or meet any of its obligations under this Agreement.

                (4) No litigation is pending, or, to the best of the
      Depositor's knowledge, threatened, against the Depositor that would
      materially and adversely affect the execution, delivery or
      enforceability of this Agreement or any Subsequent Transfer Agreement or
      the ability of the Depositor to perform its obligations under this
      Agreement or any Subsequent Transfer Agreement in accordance with the
      terms hereof or thereof.

                (5) No consent, approval, authorization or order of any court
      or governmental agency or body is required for the execution, delivery
      and performance by the Depositor of, or compliance by the Depositor
      with, this Agreement or any Subsequent Transfer Agreement or the
      consummation of the transactions contemplated hereby, or if any such
      consent, approval, authorization or order is required, the Depositor has
      obtained the same.

            The Depositor hereby represents and warrants to the Trustee with
respect to each Mortgage Loan, as of the Closing Date or the related
Subsequent Transfer Date, as applicable, following the transfer of such
Mortgage Loan to it by the Sellers, the Depositor had good title to the
Initial Mortgage Loans or related Subsequent Mortgage Loans, as applicable,
and the related Mortgage Notes were subject to no offsets, claims, defenses or
counterclaims.

            It is understood and agreed that the representations and
warranties set forth in the two immediately preceding paragraphs shall survive
delivery of the Mortgage Files to the Co-Trustee. Upon discovery by the
Depositor or the Trustee, of a breach of any of the foregoing representations
and warranties set forth in the immediately preceding paragraph (referred to
herein as a "breach"), which breach materially and adversely affects the
interest of the Certificateholders, the party discovering such breach shall
give prompt written notice to the others and to each Rating Agency, the NIM
Insurer and the Swap Counterparty. The Depositor hereby covenants with respect
to the representations and warranties made by it in this Section 2.04 that
within 90 days of the earlier of the discovery by it or receipt of written
notice by it from any party of a breach of any representation or warranty set
forth herein made that materially and adversely affects the interests of the
Certificateholders in any Mortgage Loan, it shall cure such breach in all
material respects and, if such breach is not so cured, shall repurchase or
replace the affected Mortgage Loan or Loans in accordance with the procedure
set forth in Section 2.03(e).

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            Section 2.05 Delivery of Opinion of Counsel in Connection with
                         Substitutions and Repurchases.
                         -----------------------------

            (a) Notwithstanding any contrary provision of this Agreement, with
respect to any Mortgage Loan that is not in default or as to which default is
not imminent, no repurchase or substitution pursuant to Sections 2.02, 2.03 or
2.04 shall be made unless the Representing Party making such repurchase or
substitution delivers to the Trustee an Opinion of Counsel (which such
Representing Party shall use reasonable efforts to obtain), addressed to the
Trustee to the effect that such repurchase or substitution would not (i)
result in the imposition of the tax on "prohibited transactions" of the Trust
Fund or contributions after the Closing Date, as defined in sections
860F(a)(2) and 860G(d) of the Code, respectively or (ii) cause the any REMIC
formed hereunder to fail to qualify as a REMIC at any time that any
Certificates are outstanding. Any Mortgage Loan as to which repurchase or
substitution was delayed pursuant to this paragraph shall be repurchased or
the substitution therefor shall occur (subject to compliance with Sections
2.02, 2.03 or 2.04) upon the earlier of (a) the occurrence of a default or
imminent default with respect to such loan and (b) receipt by the Trustee of
an Opinion of Counsel to the effect that such repurchase or substitution, as
applicable, will not result in the events described in clause (i) or clause
(ii) of the preceding sentence.

            (b) Upon discovery by the Depositor, any Seller, the Master
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 promptly (and in any event within five
Business Days of discovery) give written notice thereof to the other parties
and the NIM Insurer. In connection therewith, the Trustee shall require CHL,
at CHL's option, to either (i) substitute, if the conditions in Section
2.03(e) with respect to substitutions are satisfied, a Replacement Mortgage
Loan for the affected Mortgage Loan, or (ii) repurchase the affected Mortgage
Loan within 90 days of such discovery in the same manner as it would a
Mortgage Loan for a breach of representation or warranty contained in Section
2.03. The Trustee shall reconvey to CHL 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 contained in Section 2.03.

            Section 2.06 Authentication and Delivery of Certificates.

            The Trustee acknowledges the transfer and assignment to it of the
Trust Fund and, concurrently with such transfer and assignment, has executed,
authenticated and delivered, to or upon the order of the Depositor, the
Certificates in authorized denominations evidencing the entire ownership of
the Trust Fund. The Trustee agrees to hold the Trust Fund and exercise the
rights referred to above for the benefit of all present and future Holders of
the Certificates and to perform the duties set forth in this Agreement.

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            Section 2.07 Covenants of the Master Servicer.

            The Master Servicer hereby covenants to the Depositor and the
Trustee as follows:

            (a) the Master Servicer shall comply in the performance of its
obligations under this Agreement with all reasonable rules and requirements of
the insurer under each Required Insurance Policy; and

            (b) no written information, certificate of an officer, statement
furnished in writing or written report delivered to the Depositor, any
affiliate of the Depositor or the Trustee and prepared by the Master Servicer
pursuant to this Agreement will contain any untrue statement of a material
fact or omit to state a material fact necessary to make the information,
certificate, statement or report not misleading.

                                 ARTICLE III
                ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

            Section 3.01 Master Servicer to Service Mortgage Loans.

            For and on behalf of the Certificateholders, the Master Servicer
shall service and administer the Mortgage Loans in accordance with customary
and usual standards of practice of prudent mortgage loan lenders in the
respective states in which the Mortgaged Properties are located, including
taking all required and appropriate actions under each Required Insurance
Policy and taking all required and appropriate actions under the Mortgage
Insurance Policy on behalf of the Co-Trustee, other than the payment of the
Mortgage Insurance Premium and obtaining the approval of the Mortgage Insurer
with respect to the appointment of a successor servicer. In connection with
such servicing and administration, the Master Servicer shall have full power
and authority, acting alone and/or through subservicers as provided in Section
3.02 hereof, subject to the terms hereof (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 (but only
in the manner provided in this Agreement), (iii) to collect any Insurance
Proceeds, other Liquidation Proceeds and Subsequent Recoveries, and (iv)
subject to Section 3.12(b), to effectuate foreclosure or other conversion of
the ownership of the Mortgaged Property securing any Mortgage Loan; provided
that the Master Servicer shall take no action that is inconsistent with or
prejudices the interests of the Trustee or the Certificateholders in any
Mortgage Loan or the rights and interests of the Depositor and the Trustee
under this Agreement. The Master Servicer shall represent and protect the
interest of the Trustee in the same manner as it currently protects its own
interest in mortgage loans in its own portfolio in any claim, proceeding or
litigation regarding a Mortgage Loan and shall not make or permit any
modification, waiver or amendment of any term of any Mortgage Loan which would
(i) cause any REMIC formed hereunder to fail to qualify as a REMIC, (ii)
result in the imposition of any tax under section 860(a) or 860(d) of the Code
or (iii) cause any Covered Mortgage Loan to not be covered by the Mortgage
Insurance Policy, but in any case the Master Servicer shall not act in any
manner that is a lesser standard than that provided in the first sentence of
this Section 3.01. Without limiting the generality of the foregoing, the
Master Servicer, in its own name or in the

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name of the Depositor and the Trustee, is hereby authorized and empowered by
the Depositor and the Trustee, when the Master Servicer believes it
appropriate in its reasonable judgment, to execute and deliver, on behalf of
the Trustee, the Depositor, the Certificateholders 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 held for the benefit of
the Certificateholders. The Master Servicer shall prepare and deliver to the
Depositor and/or the Trustee such documents requiring execution and delivery
by any or all of them as are necessary or appropriate to enable the Master
Servicer to service and administer the Mortgage Loans. Upon receipt of such
documents, the Depositor and/or the Trustee shall execute such documents and
deliver them to the Master Servicer. 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 the Subservicer, when the Master
Servicer or the Subservicer, as the case may be, believes it appropriate in
its best judgment to register any Mortgage Loan on the MERS(R) System, or
cause the removal from the registration of any Mortgage Loan on the MERS(R)
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.

            In accordance with the standards of the preceding paragraph, the
Master Servicer shall advance or cause to be advanced funds as necessary for
the purpose of effecting the payment of taxes and assessments on the Mortgaged
Properties, which advances shall be reimbursable in the first instance from
related collections from the Mortgagors pursuant to Section 3.06, and further
as provided in Section 3.08. All costs incurred by the Master Servicer, if
any, in effecting the timely payments of taxes and assessments on the
Mortgaged Properties and related insurance premiums shall not, for the purpose
of calculating monthly distributions to the Certificateholders, be added to
the Stated Principal Balance under the related Mortgage Loans, notwithstanding
that the terms of such Mortgage Loans so permit.

            The Master Servicer shall deliver a list of Servicing Officers to
the Trustee by the Closing Date.

            In addition, the Master Servicer shall administer the Mortgage
Insurance Policy on behalf of itself, the Sellers, the Depositor, and the
Trustee for the benefit of the Certificateholders, when it is necessary to
make claims and receive payments under the Mortgage Insurance Policy. In
connection with its activities as Master Servicer of the Mortgage Loans, the
Master Servicer agrees to present, on behalf of itself, the Trustee and the
Certificateholders, claims to the insurer under any primary insurance policies
and, in this regard, to take any reasonable action necessary to permit
recovery under any primary insurance policies respecting defaulted Mortgage
Loans. Any amounts collected by the Master Servicer under any primary
insurance policies shall be deposited in the Certificate Account.

            The Master Servicer shall take whatever action is appropriate to
maximize the amounts payable under the Mortgage Insurance Policy and to
service the Covered Mortgage Loans in the manner required by the Mortgage
Insurance Policy. The Master Servicer shall prepare and submit all claims
eligible for submission under the Mortgage Insurance Policy and shall, except
as otherwise specified in this Agreement, perform all of the obligations of
the

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insured under the Mortgage Insurance Policy. If the Mortgage Insurance Policy
is terminated for any reason other than the exhaustion of its coverage, or if
the financial strength rating of the Mortgage Insurer is reduced to below
investment grade, the Master Servicer will use its best efforts to obtain a
comparable policy from an insurer that is acceptable to the Rating Agencies.
The replacement policy shall provide coverage equal to the then remaining
coverage of the applicable Mortgage Insurance Policy, if available. However,
if the premium cost of a replacement policy exceeds the premium cost of the
Mortgage Insurance Policy, the coverage amount of the replacement policy will
be reduced so that its premium cost will not exceed the premium cost of the
Mortgage Insurance Policy.

            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 Rates, Scheduled Payments or Stated Principal Balances
that were made by the Master Servicer in a manner not consistent with the
terms of the related Mortgage Note and this Agreement, the Master 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 master servicer in respect of any
such liability. Such indemnities shall survive the termination or discharge of
this Agreement. Notwithstanding the foregoing, this Section 3.01 shall not
limit the ability of the Master Servicer to seek recovery of any such amounts
from the related Mortgagor under the terms of the related Mortgage Note, as
permitted by law and shall not be an expense of the Trust.

            Section 3.02 Subservicing; Enforcement of the Obligations of
                         Master Servicer.
                         ----------------

            (a) The Master Servicer may arrange for the subservicing of any
Mortgage Loan by a subservicer (each, a "Subservicer") pursuant to a
subservicing agreement (each, a "Subservicing Agreement"); provided that (i)
such subservicing arrangement and the terms of the related subservicing
agreement must provide for the servicing of such Mortgage Loans in a manner
consistent with the servicing arrangements contemplated hereunder, (ii) that
such subservicing agreements would not result in a withdrawal or a downgrading
by any Rating Agency of the ratings on any Class of Certificates, as evidenced
by a letter to that effect delivered by each Rating Agency to the Depositor
and the NIM Insurer and (iii) the NIM Insurer shall have consented to such
subservicing agreements (which consent shall not be unreasonably withheld)
with Subservicers, for the servicing and administration of the Mortgage Loans.
The Master Servicer shall deliver to the Trustee copies of all Sub-Servicing
Agreements, and any amendments or modifications thereof, promptly upon the
Master Servicer's execution and delivery of such instruments. The Master
Servicer, with the written consent of the NIM Insurer (which consent shall not
be unreasonably withheld), shall be entitled to terminate any Subservicing
Agreement and the rights and obligations of any Subservicer pursuant to any
Subservicing Agreement in accordance with the terms and conditions of such
Subservicing Agreement. Notwithstanding the provisions of any subservicing
agreement, any of the provisions of this Agreement relating to agreements or
arrangements between the Master Servicer or a subservicer or reference to
actions taken through a Master Servicer or otherwise, the Master Servicer
shall remain obligated and liable to the Depositor, the Trustee and the
Certificateholders for the servicing and administration of the Mortgage Loans
in accordance with the provisions of this Agreement without diminution of such
obligation or liability by virtue of

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such subservicing agreements or arrangements or by virtue of indemnification
from the subservicer and to the same extent and under the same terms and
conditions as if the Master Servicer alone were servicing and administering
the Mortgage Loans. Every subservicing agreement entered into by the Master
Servicer shall contain a provision giving the successor Master Servicer the
option to terminate such agreement without cost in the event a successor
Master Servicer is appointed. All actions of each subservicer performed
pursuant to the related subservicing agreement shall be performed as an agent
of the Master Servicer with the same force and effect as if performed directly
by the Master Servicer.

            (b) For purposes of this Agreement, the Master Servicer shall be
deemed to have received any collections, recoveries or payments with respect
to the Mortgage Loans that are received by a subservicer regardless of whether
such payments are remitted by the subservicer to the Master Servicer.

            Section 3.03 Rights of the Depositor, the Sellers, the
                         Certificateholders, the NIM Insurer and the Trustee in
                         Respect of the Master Servicer.
                         -------------------------------

            None of the Trustee, the Sellers, the Certificateholders, the NIM
Insurer or the Depositor shall have any responsibility or liability for any
action or failure to act by the Master Servicer, and none of them is obligated
to supervise the performance of the Master Servicer hereunder or otherwise.
The Master Servicer shall afford (and any Subservicing Agreement shall provide
that each Subservicer shall afford) the Depositor, the NIM Insurer and the
Trustee, upon reasonable notice, during normal business hours, access to all
records maintained by the Master Servicer (and any such Subservicer) in
respect of the Master Servicer's rights and obligations hereunder and access
to officers of the Master Servicer (and those of any such Subservicer)
responsible for such obligations. Upon request, the Master Servicer shall
furnish to the Depositor, the NIM Insurer and the Trustee its (and any such
Subservicer's) most recent financial statements and such other information
relating to the Master Servicer's capacity to perform its obligations under
this Agreement that it possesses. To the extent such information is not
otherwise available to the public, the Depositor, the NIM Insurer and the
Trustee shall not disseminate any information obtained pursuant to the
preceding two sentences without the Masters Servicer's (or any such
Subservicer's) written consent, except as required pursuant to this Agreement
or to the extent that it is necessary to do so (i) in working with legal
counsel, auditors, taxing authorities or other governmental agencies, rating
agencies or reinsurers or (ii) pursuant to any law, rule, regulation, order,
judgment, writ, injunction or decree of any court or governmental authority
having jurisdiction over the Depositor, the Trustee, the NIM Insurer or the
Trust Fund, and in either case, the Depositor, the NIM Insurer or the Trustee,
as the case may be, shall use its reasonable best efforts to assure the
confidentiality of any such disseminated non-public information. The Depositor
may, but is not obligated to, enforce the obligations of the Master Servicer
under this Agreement and may, but is not obligated to, perform, or cause a
designee to perform, any defaulted obligation of the Master Servicer under
this Agreement or exercise the rights of the Master Servicer under this
Agreement; provided by virtue of such performance by the Depositor of its
designee. The Depositor shall not have any responsibility or liability for any
action or failure to act by the Master Servicer and is not obligated to
supervise the performance of the Master Servicer under this Agreement or
otherwise.

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            Section 3.04 Trustee to Act as Master Servicer.

            In the event that the Master Servicer shall for any reason no
longer be the Master Servicer hereunder (including by reason of an Event of
Default or termination by the Depositor), the Trustee or its designee shall
thereupon assume all of the rights and obligations of the Master Servicer
hereunder arising thereafter (except that the Trustee shall not be (i) liable
for losses of the Master Servicer pursuant to Section 3.10 hereof or any acts
or omissions of the predecessor Master Servicer hereunder, (ii) obligated to
make Advances if it is prohibited from doing so by applicable law, (iii)
obligated to effectuate repurchases or substitutions of Mortgage Loans
hereunder, including pursuant to Section 2.02 or 2.03 hereof, (iv) responsible
for expenses of the Master Servicer pursuant to Section 2.03 or (v) deemed to
have made any representations and warranties hereunder, including pursuant to
Section 2.03 or the first paragraph of Section 6.02 hereof). If the Master
Servicer shall for any reason no longer be the Master Servicer (including by
reason of any Event of Default or termination by the Depositor), the Trustee
(or any other successor servicer) may, at its option, succeed to any rights
and obligations of the Master Servicer under any subservicing agreement in
accordance with the terms thereof; provided that the Trustee (or any other
successor servicer) shall not incur any liability or have any obligations in
its capacity as servicer under a subservicing agreement arising prior to the
date of such succession unless it expressly elects to succeed to the rights
and obligations of the Master Servicer thereunder; and the Master Servicer
shall not thereby be relieved of any liability or obligations under the
subservicing agreement arising prior to the date of such succession.

            The Master Servicer shall, upon request of the Trustee, but at the
expense of the Master Servicer, deliver to the assuming party all documents
and records relating to each subservicing agreement and the Mortgage Loans
then being serviced thereunder and an accounting of amounts collected held by
it and otherwise use its best efforts to effect the orderly and efficient
transfer of the subservicing agreement to the assuming party.

            Section 3.05 Collection of Mortgage Loan Payments; Certificate
                         Account; Distribution Account; Pre-Funding Account;
                         Seller Shortfall Interest Requirement.
                         --------------------------------------

            (a) The Master Servicer shall make reasonable efforts in
accordance with customary and usual standards of practice of prudent mortgage
lenders in the respective states in which the Mortgaged Properties are located
to collect all payments called for under the terms and provisions of the
Mortgage Loans to the extent such procedures shall be consistent with this
Agreement and the terms and provisions of any related Required Insurance
Policy. Consistent with the foregoing, the Master Servicer may in its
discretion (i) waive any late payment charge or, subject to Section 3.20, 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 270 days. In the event of any such
arrangement, the Master Servicer shall make Advances on the related Mortgage
Loan during the scheduled period in accordance with the amortization schedule
of such Mortgage Loan without modification thereof by reason of such
arrangements. In addition, the NIM Insurer's prior written consent shall be
required for any waiver of Prepayment Charges or for the extension of the due
dates for payments due on a Mortgage Note, if the aggregate number of
outstanding Mortgage Loans that have been granted such waivers or extensions
exceeds 5% of the aggregate number of Initial

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Mortgage Loans and Subsequent Mortgage Loans. The Master Servicer shall not be
required to institute or join in litigation with respect to collection of any
payment (whether under a Mortgage, Mortgage Note or otherwise or against any
public or governmental authority with respect to a taking or condemnation) if
it reasonably believes that enforcing the provision of the Mortgage or other
instrument pursuant to which such payment is required is prohibited by
applicable law.

            (b) The Master Servicer shall establish and maintain a Certificate
Account into which the Master Servicer shall deposit or cause to be deposited
on a daily basis within two Business Days of receipt, except as otherwise
specifically provided herein, the following payments and collections remitted
by Subservicers or received by it in respect of Mortgage Loans subsequent to
the Cut-off Date (other than in respect of principal and interest due on the
Mortgage Loans on or before the Cut-off Date) and the following amounts
required to be deposited hereunder:

                (1) all payments on account of principal, including Principal
      Prepayments, on the Mortgage Loans;

                (2) all payments on account of interest on the Mortgage Loans
      (net of the related Servicing Fee and Prepayment Interest Excess
      permitted under Section 3.15 hereof to the extent not previously paid to
      or withheld by the Master Servicer);

                (3) all Insurance Proceeds;

                (4) all Liquidation Proceeds and Subsequent Recoveries, other
      than proceeds to be applied to the restoration or repair of the
      Mortgaged Property or released to the Mortgagor in accordance with the
      Master Servicer's normal servicing procedures;

                (5) all Compensating Interest;

                (6) any amount required to be deposited by the Master Servicer
      pursuant to Section 3.05(e) in connection with any losses on Permitted
      Investments;

                (7) any amounts required to be deposited by the Master
      Servicer pursuant to Section 3.10 hereof;

                (8) the Purchase Price and any Substitution Adjustment Amount;

                (9) all Advances made by the Master Servicer or the Trustee
      pursuant to Section 4.01 hereof;

                (10) all Prepayment Charges and Master Servicer Prepayment
      Charge Payment Amounts; and

                (11) any other amounts required to be deposited hereunder.

            The foregoing requirements for remittance by the Master Servicer
into the Certificate Account shall be exclusive, it being understood and
agreed that, without limiting the

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generality of the foregoing, payments in the nature of late payment charges or
assumption fees, if collected, need not be remitted by the Master Servicer. In
the event that the Master Servicer shall remit any amount not required to be
remitted and not otherwise subject to withdrawal pursuant to Section 3.08
hereof, it may at any time withdraw or direct the institution maintaining the
Certificate Account, to withdraw such amount from the Certificate Account, any
provision herein to the contrary notwithstanding. Such withdrawal or direction
may be accomplished by delivering written notice thereof to the institution
maintaining the Certificate Account, that describes the amounts deposited in
error in the Certificate Account. The Master Servicer shall maintain adequate
records with respect to all withdrawals made pursuant to this Section. All
funds deposited in the Certificate Account shall be held in trust for the
Certificateholders until withdrawn in accordance with Section 3.08.

            No later than 1:00 p.m. Pacific time on the Business Day prior to
the Master Servicer Advance Date in each of and March 2006, April 2006 and May
2006, CHL shall remit to the Master Servicer, and the Master Servicer shall
deposit in the Certificate Account, the Seller Shortfall Interest Requirement
(if any) for such Master Servicer Advance Date.

            (c) The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Distribution Account. The Trustee shall, promptly upon
receipt, deposit in the Distribution Account and retain therein the following:

                  (1) the aggregate amount remitted by the Master Servicer
            pursuant to the second paragraph of Section 3.08(a); and

                  (2) any amount required to be deposited by the Master
            Servicer pursuant to Section 3.05(e) in connection with any losses
            on Permitted Investments.

            The foregoing requirements for remittance by the Master Servicer
and deposit by the Trustee into the Distribution Account shall be exclusive.
In the event that the Master Servicer shall remit any amount not required to
be remitted and not otherwise subject to withdrawal pursuant to Section 3.08
hereof, it may at any time direct the Trustee to withdraw such amount from the
Distribution Account, any provision herein to the contrary notwithstanding.
Such direction may be accomplished by delivering a written notice to the
Trustee that describes the amounts deposited in error in the Distribution
Account. All funds deposited in the Distribution Account shall be held by the
Trustee in trust for the Certificateholders until disbursed in accordance with
this Agreement or withdrawn in accordance with Section 3.08. In no event shall
the Trustee incur liability for withdrawals from the Distribution Account at
the direction of the Master Servicer.

            (d) If the Pre-Funded Amount is greater than zero, the Trustee
shall establish and maintain, on behalf of the Certificateholders, the
Pre-Funding Account, and on the Closing Date, CHL shall remit the Pre-Funded
Amount to the Trustee for deposit in the Pre-Funding Account.

            On the Business Day before the Distribution Date following the end
of the Funding Period, the Trustee shall (i) withdraw the amount on deposit in
the Pre-Funding Account (net of investment income), (ii) promptly deposit such
amount in the Distribution

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Account, and (iii) distribute each amount to the Certificates on the
Distribution Date pursuant to Section 4.04.

            (e) Each institution that maintains the Certificate Account, the
Distribution Account or the Pre-Funding Account shall invest the funds in each
such account, as directed by the Master Servicer, in Permitted Investments,
which shall mature not later than (x) in the case of the Certificate Account,
the second Business Day next preceding the related Distribution Account
Deposit Date (except that if such Permitted Investment is an obligation of the
institution that maintains such Certificate Account, then such Permitted
Investment shall mature not later than the Business Day next preceding such
Distribution Account Deposit Date) and (y) in the case of the Distribution
Account and the Pre-Funding Account, the Business Day immediately preceding
the first Distribution Date that follows the date of such investment (except
that if such Permitted Investment is an obligation of the institution that
maintains such Distribution Account or Pre-Funding Account, then such
Permitted Investment shall mature not later than such Distribution Date), in
each case, shall not be sold or disposed of prior to its maturity. All such
Permitted Investments shall be made in the name of the Trustee, for the
benefit of the Certificateholders. In the case of (i) the Certificate Account
and the Distribution Account, all income and gain net of any losses realized
from any such investment shall be for the benefit of the Master Servicer as
servicing compensation and shall be remitted to it monthly as provided herein
and (ii) the Pre-Funding Account, all income and gain net of any losses
realized from any such investment shall be for the benefit of the Depositor
and shall be remitted to the Depositor as provided herein. The amount of any
losses incurred in the Certificate Account or the Distribution Account in
respect of any such investments shall be deposited by the Master Servicer in
the Certificate Account or paid to the Trustee for deposit into the
Distribution Account out of the Master Servicer's own funds immediately as
realized. The amount of any losses incurred in the Pre-Funding Account in
respect of any such investments shall be paid by the Master Servicer to the
Trustee for deposit into the Pre-Funding Account out of the Master Servicer's
own funds immediately as realized. The Trustee shall not be liable for the
amount of any loss incurred in respect of any investment or lack of investment
of funds held in the Certificate Account, the Distribution Account or the
Pre-Funding Account and made in accordance with this Section 3.05.

            (f) The Master Servicer shall give at least 30 days advance notice
to the Trustee, each Seller, each Rating Agency and the Depositor of any
proposed change of location of the Certificate Account prior to any change
thereof. The Trustee shall give at least 30 days advance notice to the Master
Servicer, each Seller, each Rating Agency and the Depositor of any proposed
change of the location of the Distribution Account, the Pre-Funding Account or
the Carryover Reserve Fund prior to any change thereof.

            (g) Except as otherwise expressly provided in this Agreement, if
any default occurs under any Permitted Investment, the Trustee may and,
subject to Sections 8.01 and 8.02(a)(4), at the request of the Holders of
Certificates representing more than 50% of the Voting Rights or the NIM
Insurer, shall take any action appropriate to enforce payment or performance,
including the institution and prosecution of appropriate proceedings.

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            Section 3.06 Collection of Taxes, Assessments and Similar Items;
                         Escrow Accounts.
                         ----------------

            To the extent required by the related Mortgage Note, the Master
Servicer shall establish and maintain one or more accounts (each, an "Escrow
Account") and deposit and retain therein all collections from the Mortgagors
(or advances by the Master Servicer) for the payment of taxes, assessments,
hazard insurance premiums or comparable items for the account of the
Mortgagors. Nothing herein shall require the Master Servicer to compel a
Mortgagor to establish an Escrow Account in violation of applicable law.

            Withdrawals of amounts so collected from the Escrow Accounts may
be made only to effect timely payment of taxes, assessments, hazard insurance
premiums, condominium or PUD association dues, or comparable items, to
reimburse the Master Servicer out of related collections for any payments made
pursuant to Sections 3.01 hereof (with respect to taxes and assessments and
insurance premiums) and 3.10 hereof (with respect to hazard insurance), to
refund to any Mortgagors any sums as may be determined to be overages, to pay
interest, if required by law or the terms of the related Mortgage or Mortgage
Note, to Mortgagors on balances in the Escrow Account or to clear and
terminate the Escrow Account at the termination of this Agreement in
accordance with Section 9.01 hereof. The Escrow Accounts shall not be a part
of the Trust Fund.

            Section 3.07 Access to Certain Documentation and Information
                         Regarding the Mortgage Loans.
                         -----------------------------

            The Master Servicer shall afford the Depositor, the NIM Insurer
and the Trustee reasonable access to all records and documentation regarding
the Mortgage Loans and all accounts, insurance policies and other matters
relating to this Agreement, such access being afforded without charge, but
only upon reasonable request and during normal business hours at the offices
of the Master Servicer designated by it. Upon request, the Master Servicer
shall furnish to the Trustee and the NIM Insurer its most recent publicly
available financial statements and any other information relating to its
capacity to perform its obligations under this Agreement reasonably requested
by the NIM Insurer.

            Upon reasonable advance notice in writing if required by federal
regulation, the Master Servicer will provide to each Certificateholder or
Certificate Owner that is a savings and loan association, bank or insurance
company certain reports and reasonable access to information and documentation
regarding the Mortgage Loans sufficient to permit such Certificateholder or
Certificate Owner to comply with applicable regulations of the OTS or other
regulatory authorities with respect to investment in the Certificates;
provided that the Master Servicer shall be entitled to be reimbursed by each
such Certificateholder or Certificate Owner for actual expenses incurred by
the Master Servicer in providing such reports and access.

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            Section 3.08 Permitted Withdrawals from the Certificate Account,
                         Distribution Account, Carryover Reserve Fund and the
                         Principal Reserve Fund.
                         ----------------------

            (a) The Master Servicer may from time to time make withdrawals
from the Certificate Account for the following purposes:

                  (i) to pay to the Master Servicer (to the extent not
            previously paid to or withheld by the Master Servicer), as
            servicing compensation in accordance with Section 3.15, that
            portion of any payment of interest that equals the Servicing Fee
            for the period with respect to which such interest payment was
            made, and, as additional servicing compensation to the Master
            Servicer, those other amounts set forth in Section 3.15;

                  (ii) to reimburse each of the Master Servicer and the
            Trustee for Advances made by it with respect to the Mortgage
            Loans, such right of reimbursement pursuant to this subclause (ii)
            being limited to amounts received on particular Mortgage Loan(s)
            (including, for this purpose, Liquidation Proceeds, Insurance
            Proceeds and Subsequent Recoveries) that represent late recoveries
            of payments of principal and/or interest on such particular
            Mortgage Loan(s) in respect of which any such Advance was made;

                  (iii) [Reserved];

                  (iv) to reimburse each of the Master Servicer and the
            Trustee for any Nonrecoverable Advance previously made;

                  (v) to reimburse the Master Servicer from Insurance Proceeds
            for Insured Expenses covered by the related Insurance Policy;

                  (vi) to pay the Master Servicer any unpaid Servicing Fees
            and to reimburse it for any unreimbursed Servicing Advances, the
            Master Servicer's right to reimbursement of Servicing Advances
            pursuant to this subclause (vi) with respect to any Mortgage Loan
            being limited to amounts received on particular Mortgage Loan(s)
            (including, for this purpose, Liquidation Proceeds, Insurance
            Proceeds and Subsequent Recoveries and purchase and repurchase
            proceeds) that represent late recoveries of the payments for which
            such advances were made pursuant to Section 3.01 or Section 3.06;

                  (vii) to pay to the applicable Seller, the Depositor or the
            Master Servicer, as applicable, with respect to each Mortgage Loan
            or property acquired in respect thereof that has been purchased
            pursuant to Section 2.02, 2.03, 2.04 or 3.12, all amounts received
            thereon and not taken into account in determining the related
            Purchase Price of such repurchased Mortgage Loan;

                  (viii) to reimburse the applicable Seller, the Master
            Servicer, the NIM Insurer or the Depositor for expenses incurred
            by any of them in connection with the Mortgage Loans or
            Certificates and reimbursable pursuant to Section 6.03 hereof;
            provided that such amount shall only be withdrawn following the

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            withdrawal from the Certificate Account for deposit into the
            Distribution Account pursuant to the following paragraph;

                  (ix) to pay any lender-paid primary mortgage insurance
            premiums;

                  (x) to withdraw any amount deposited in the Certificate
            Account and not required to be deposited therein; and

                  (xi) to clear and terminate the Certificate Account upon
            termination of this Agreement pursuant to Section 9.01 hereof.

            In addition, no later than 1:00 p.m. Pacific time on the
Distribution Account Deposit Date, the Master Servicer shall withdraw from the
Certificate Account and remit to the Trustee the Interest Remittance Amount,
Principal Remittance Amount and Prepayment Charges collected and amounts in
respect of Prepayment Charges pursuant to Section 3.20 for each Loan Group,
and the Trustee shall deposit such amount in the Distribution Account.

            The Trustee shall establish and maintain, on behalf of the
Certificateholders, a Principal Reserve Fund in the name of the Trustee. On
the Closing Date, CHL shall deposit into the Principal Reserve Fund $200.00.
Funds on deposit in the Principal Reserve Fund shall not be invested. The
Principal Reserve Fund shall be treated as an "outside reserve fund" under
applicable Treasury regulations and shall not be part of any REMIC created
under this Agreement.

            On the Business Day before the first Distribution Date, the
Trustee shall transfer $100.00 from the Principal Reserve Fund to the
Distribution Account, and on the first Distribution Date, the Trustee shall
withdraw $100 and distribute such amount to the Class A-R Certificates in
reduction of the Certificate Principal Balance thereof.

            On the Business Day before the Class P Principal Distribution
Date, the Trustee shall transfer from the Principal Reserve Fund to the
Distribution Account $100.00 and shall distribute such amount to the Class P
Certificates on the Class P Principal Distribution Date. Following the
distributions to be made in accordance with the preceding sentence, the
Trustee shall then terminate the Principal Reserve Fund.

            The Master Servicer shall keep and maintain separate accounting,
on a Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any
withdrawal from the Certificate Account pursuant to subclauses (i), (ii),
(iv), (v), (vi), (vii), (viii) and (ix) above. Prior to making any withdrawal
from the Certificate Account pursuant to subclause (iv), the Master Servicer
shall deliver to the Trustee an Officer's Certificate of a Servicing Officer
indicating the amount of any previous Advance determined by the Master
Servicer to be a Nonrecoverable Advance and identifying the related Mortgage
Loan(s), and their respective portions of such Nonrecoverable Advance.

            (b) The Trustee shall withdraw funds from the Distribution Account
for distribution to the Certificateholders and remittance to the Swap Account
in the manner specified in this Agreement (and to withhold from the amounts so
withdrawn, the amount of any taxes that it is authorized to retain pursuant to
the penultimate paragraph of Section 8.11). In addition, the

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Trustee may from time to time make withdrawals from the Distribution Account
for the following purposes:

                  (i) to pay the Trustee the Trustee Fee on each Distribution
            Date;

                  (ii) to pay to the Master Servicer, as additional servicing
            compensation, earnings on or investment income with respect to
            funds in or credited to the Distribution Account;

                  (iii) to withdraw pursuant to Section 3.05 any amount
            deposited in the Distribution Account and not required to be
            deposited therein;

                  (iv) to reimburse the Trustee for any unreimbursed Advances
            made by it pursuant to Section 4.01(d) hereof, such right of
            reimbursement pursuant to this subclause (iv) being limited to (x)
            amounts received on the related Mortgage Loan(s) in respect of
            which any such Advance was made and (y) amounts not otherwise
            reimbursed to the Trustee pursuant to Section 3.08(a)(ii) hereof;

                  (v) to reimburse the Trustee for any Nonrecoverable Advance
            previously made by the Trustee pursuant to Section 4.01(d) hereof,
            such right of reimbursement pursuant to this subclause (v) being
            limited to amounts not otherwise reimbursed to the Trustee
            pursuant to Section 3.08(a)(iv) hereof;

                  (vi) to pay to the Co-Trustee, for payment to the Mortgage
            Insurer as provided below, the Mortgage Insurance Premium; and

                  (vii) to clear and terminate the Distribution Account upon
            termination of the Agreement pursuant to Section 9.01 hereof.

            The Co-Trustee shall pay the applicable Mortgage Insurance Premium
to the Mortgage Insurer in accordance with the following wiring instructions:

            Mortgage Guaranty Insurance Corporation, Account #112663706, US
Bank, 777 E. Wisconsin Ave., Milwaukee, WI, 53201, ABA #075000022, Txt:
Attention: Premium Pay - ID #3147644341 deal # 1898.

            (c) The Trustee shall withdraw funds from the Carryover Reserve
Fund for distribution to the Certificateholders in the manner specified in
this Agreement (and to withhold from the amounts so withdrawn, the amount of
any taxes that it is authorized to retain pursuant to the penultimate
paragraph of Section 8.11). In addition, the Trustee may from time to time
make withdrawals from the Carryover Reserve Fund for the following purposes:

                (1) to withdraw any amount deposited in the Carryover Reserve
      Fund and not required to be deposited therein; and

                (2) to clear and terminate the Carryover Reserve Fund upon
      termination of the Agreement pursuant to Section 9.01 hereof.

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            Section 3.09 [Reserved].
                         -----------

            Section 3.10 Maintenance of Hazard Insurance.
                         --------------------------------

            The Master Servicer shall cause to be maintained, for each
Mortgage Loan, hazard insurance with extended coverage in an amount that is at
least equal to the lesser of (i) the maximum insurable value of the
improvements securing such Mortgage Loan and (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan and (b) an amount such that
the proceeds of such policy shall be sufficient to prevent the related
Mortgagor and/or mortgagee from becoming a co-insurer. Each such policy of
standard hazard insurance shall contain, or have an accompanying endorsement
that contains, a standard mortgagee clause. The Master Servicer shall also
cause flood insurance to be maintained on property acquired upon foreclosure
or deed in lieu of foreclosure of any Mortgage Loan, to the extent described
below. Pursuant to Section 3.05 hereof, any amounts collected by the Master
Servicer under any such policies (other than the amounts to be applied to the
restoration or repair of the related Mortgaged Property or property thus
acquired or amounts released to the Mortgagor in accordance with the Master
Servicer's normal servicing procedures) shall be deposited in the Certificate
Account. Any cost incurred by the Master Servicer in maintaining any such
insurance shall not, for the purpose of calculating monthly distributions to
the Certificateholders or remittances to the Trustee for their benefit, be
added to the principal balance of the Mortgage Loan, notwithstanding that the
terms of the Mortgage Loan so permit. Such costs shall be recoverable by the
Master Servicer out of late payments by the related Mortgagor or out of
Liquidation Proceeds or Subsequent Recoveries to the extent permitted by
Section 3.08 hereof. It is understood and agreed that no earthquake or other
additional insurance is to be required of any Mortgagor or maintained on
property acquired in respect of a Mortgage other than pursuant to such
applicable laws and regulations as shall at any time be in force and as shall
require such additional insurance. If the Mortgaged Property is located at the
time of origination of the Mortgage Loan in a federally designated special
flood hazard area and such area is participating in the national flood
insurance program, the Master Servicer shall cause flood insurance to be
maintained with respect to such Mortgage Loan. Such flood insurance shall be
in an amount equal to the lesser of (i) the original principal balance of the
related Mortgage Loan, (ii) the replacement value of the improvements that are
part of such Mortgaged Property, or (iii) the maximum amount of such insurance
available for the related Mortgaged Property under the Flood Disaster
Protection Act of 1973, as amended. If the hazard policy contains a deductible
clause, the Master Servicer will be required to deposit from its own funds
into the Certificate Account the amounts that would have been deposited
therein but for the deductible clause.

            Section 3.11 Enforcement of Due-On-Sale Clauses; Assumption
                         Agreements.
                         -----------

            (a) Except as otherwise provided in this Section 3.11(a), when any
property subject to a Mortgage has been or is about to be conveyed by the
Mortgagor, the Master Servicer shall to the extent that it has knowledge of
such conveyance, enforce any due-on-sale clause contained in any Mortgage Note
or Mortgage, to the extent permitted under applicable law and governmental
regulations, but only to the extent that such enforcement will not adversely
affect or jeopardize coverage under any Required Insurance Policy.
Notwithstanding the foregoing, the Master Servicer is not required to exercise
such rights with respect to a Mortgage Loan if the Person to whom the related
Mortgaged Property has been conveyed or is proposed to be

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conveyed satisfies the terms and conditions contained in the Mortgage Note and
Mortgage related thereto and the consent of the mortgagee under such Mortgage
Note or Mortgage is not otherwise so required under such Mortgage Note or
Mortgage as a condition to such transfer. In the event that the Master
Servicer is prohibited by law from enforcing any such due-on-sale clause, or
if coverage under any Required Insurance Policy would be adversely affected,
or if nonenforcement is otherwise permitted hereunder, the Master Servicer is
authorized, subject to Section 3.11(b), to take or enter into an assumption
and modification agreement from or 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 state law, the
Mortgagor remains liable thereon, provided that the Mortgage Loan shall
continue to be covered (if so covered before the Master Servicer enters such
agreement) by the applicable Required Insurance Policies. The Master Servicer,
subject to Section 3.11(b), is also authorized with the prior approval of the
insurers under any Required Insurance Policies 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 Mortgage Note. The Master Servicer shall notify the
Trustee that any such substitution, modification or assumption agreement has
been completed by forwarding to the Co-Trustee the executed original of such
substitution or assumption agreement, which document shall be added to the
related Mortgage File and 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.

            (b) Subject to the Master Servicer's duty to enforce any
due-on-sale clause to the extent set forth in Section 3.11(a) hereof, in any
case in which a Mortgaged Property has been conveyed to a Person by a
Mortgagor, and such Person is to enter into an assumption agreement or
modification agreement or supplement to the Mortgage Note or Mortgage that
requires the signature of the Trustee, or if an instrument of release signed
by the Trustee is required releasing the Mortgagor from liability on the
Mortgage Loan, the Master Servicer shall prepare and deliver or cause to be
prepared and delivered to the Trustee for signature and shall direct, in
writing, the Trustee to execute the assumption agreement with the Person to
whom the Mortgaged Property is to be conveyed and such modification agreement
or supplement to the Mortgage Note or Mortgage or other instruments as are
reasonable or necessary to carry out the terms of the Mortgage Note or
Mortgage or otherwise to comply with any applicable laws regarding assumptions
or the transfer of the Mortgaged Property to such Person. In connection with
any such assumption, no material term of the Mortgage Note (including, but not
limited to, the Mortgage Rate, the amount of the Scheduled Payment, the
Maximum Mortgage Rate, the Minimum Mortgage Rate, the Gross Margin, the
Initial Periodic Rate Cap, the Subsequent Periodic Rate Cap, the Adjustment
Date and any other term affecting the amount or timing of payment on the
Mortgage Loan) may be changed. In addition, the substitute Mortgagor and the
Mortgaged Property must be acceptable to the Master Servicer in accordance
with its underwriting standards as then in effect. The Master Servicer shall
notify the Trustee that any such substitution or assumption agreement has been
completed by forwarding to the Trustee the original of such substitution or
assumption agreement, which in the case of the original shall be added to the
related Mortgage File and 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. Any fee collected by the Master Servicer for
entering into an assumption or substitution of liability agreement will be
retained by the Master Servicer as additional servicing compensation.

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            Section 3.12 Realization Upon Defaulted Mortgage Loans;
                         Determination of Excess Proceeds and Realized Losses;
                         Repurchase of Certain Mortgage Loans.
                         -------------------------------------

            (a) The Master Servicer may agree to a modification of any
Mortgage Loan (the "Modified Mortgage Loan") if (i) CHL purchases the Modified
Mortgage Loan from the Trust Fund immediately following the modification as
described below and (ii) the Stated Principal Balance of such Mortgage Loan,
when taken together with the aggregate of the Stated Principal Balances of all
other Mortgage Loans in the same Loan Group that have been so modified since
the Closing Date at the time of those modifications, does not exceed an amount
equal to 5% of the aggregate Certificate Principal Balance of the related
Certificates. Effective immediately after the modification, and, in any event,
on the same Business Day on which the modification occurs, all interest of the
Trustee in the Modified Mortgage Loan shall automatically be deemed
transferred and assigned to CHL and all benefits and burdens of ownership
thereof, including the right to accrued interest thereon from the date of
modification and the risk of default thereon, shall pass to CHL. The Master
Servicer shall promptly deliver to the Trustee a certification of a Servicing
Officer to the effect that all requirements of this paragraph have been
satisfied with respect to the Modified Mortgage Loan. For federal income tax
purposes, the Trustee shall account for such purchase as a prepayment in full
of the Modified Mortgage Loan. CHL shall remit the Purchase Price to the
Master Servicer for deposit into the Certificate Account pursuant to Section
3.05 within one Business Day after the purchase of the Modified Mortgage Loan.
Upon receipt by the Trustee of written notification of any such deposit signed
by a Servicing Officer, the Trustee shall release to CHL or its designee the
related Mortgage File and shall execute and deliver such instruments of
transfer or assignment, in each case without recourse, as shall be necessary
to vest in CHL any Modified Mortgage Loan previously transferred and assigned
pursuant hereto. CHL covenants and agrees to indemnify the Trust Fund against
any liability for any "prohibited transaction" taxes and any related interest,
additions, and penalties imposed on the Trust Fund established hereunder as a
result of any modification of a Mortgage Loan effected pursuant to this
subsection (a), any holding of a Modified Mortgage Loan by the Trust Fund or
any purchase of a Modified Mortgage Loan by CHL (but such obligation shall not
prevent CHL or any other appropriate Person from in good faith contesting any
such tax in appropriate proceedings and shall not prevent CHL from withholding
payment of such tax, if permitted by law, pending the outcome of such
proceedings). CHL shall have no right of reimbursement for any amount paid
pursuant to the foregoing indemnification, except to the extent that the
amount of any tax, interest, and penalties, together with interest thereon, is
refunded to the Trust Fund or CHL. If the Master Servicer agrees to a
modification of any Mortgage Loan pursuant to this Section 3.12(a), and if
such Mortgage Loan carries a Prepayment Charge provision, CHL shall deliver to
the Trustee the amount of the Prepayment Charge, if any, that would have been
due had such Mortgage Loan been prepaid at the time of such modification, for
deposit into the Certificate Account (not later than 1:00 p.m. Pacific time on
the Master Servicer Advance Date immediately succeeding the date of such
modification) for distribution in accordance with the terms of this Agreement.

            (b) The Master Servicer shall use reasonable efforts to foreclose
upon or otherwise comparably convert the ownership of 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.
In connection with such foreclosure or other conversion,

                                     103
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the Master Servicer shall follow such practices and procedures as it shall
deem necessary or advisable and as shall be normal and usual in its general
mortgage servicing activities and the requirements of the insurer under any
Required Insurance Policy; provided that the Master Servicer shall not be
required to expend its own funds in connection with any foreclosure 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 after reimbursement to itself of such expenses and (ii) that
such expenses will be recoverable to it through Liquidation Proceeds
(respecting which it shall have priority for purposes of withdrawals from the
Certificate Account pursuant to Section 3.08 hereof). The Master Servicer
shall be responsible for all other costs and expenses incurred by it in any
such proceedings; provided that it shall be entitled to reimbursement thereof
from the proceeds of liquidation of the related Mortgaged Property and any
related Subsequent Recoveries, as contemplated in Section 3.08 hereof. If the
Master Servicer has knowledge that a Mortgaged Property that the Master
Servicer is contemplating acquiring in foreclosure or by deed-in-lieu of
foreclosure is located within a one-mile radius of any site with environmental
or hazardous waste risks known to the Master Servicer, the Master Servicer
will, prior to acquiring the Mortgaged Property, consider such risks and only
take action in accordance with its established environmental review
procedures.

            With respect to any REO Property, the deed or certificate of sale
shall be taken in the name of the Trustee for the benefit of the
Certificateholders (or the Trustee's nominee on behalf of the
Certificateholders). The Trustee's name shall be placed on the title to such
REO Property solely as the Trustee hereunder and not in its individual
capacity. The Master Servicer shall ensure that the title to such REO Property
references this Agreement and the Trustee's capacity thereunder. Pursuant to
its efforts to sell such REO Property, the Master Servicer shall either itself
or through an agent selected by the Master Servicer protect and conserve such
REO Property in the same manner and to such extent as is customary in the
locality where such REO Property is located and may, incident to its
conservation and protection of the interests of the Certificateholders, rent
the same, or any part thereof, as the Master Servicer deems to be in the best
interest of the Master Servicer and the Certificateholders for the period
prior to the sale of such REO Property. The Master Servicer shall prepare for
and deliver to the Trustee a statement with respect to each REO Property that
has been rented showing the aggregate rental income received and all expenses
incurred in connection with the management and maintenance of such REO
Property at such times as is necessary to enable the Trustee to comply with
the reporting requirements of the REMIC Provisions. The net monthly rental
income, if any, from such REO Property shall be deposited in the Certificate
Account no later than the close of business on each Determination Date. The
Master Servicer shall perform the tax reporting and withholding related to
foreclosures, abandonments and cancellation of indebtedness income as
specified by Sections 1445, 6050J and 6050P of the Code by preparing and
filing such tax and information returns, as may be required.

            In the event that the Trust Fund acquires any Mortgaged Property
as aforesaid or otherwise in connection with a default or imminent default on
a Mortgage Loan, the Master Servicer shall dispose of such Mortgaged Property
as soon as practicable in a manner that maximizes the Liquidation Proceeds,
but in no event later than three years after its acquisition by the Trust Fund
or, at the expense of the Trust Fund, the Master Servicer shall request, more
than 60 days prior to the day on which such three-year period would otherwise
expire, an extension of the three-year grace period. In the event the Trustee
shall have been supplied with an Opinion of

                                     104
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Counsel (such opinion not to be an expense of the Trustee) to the effect that
the holding by the Trust Fund of such Mortgaged Property subsequent to such
three-year period will not result in the imposition of taxes on "prohibited
transactions" of the Trust Fund as defined in section 860F of the Code or
cause any REMIC formed hereunder to fail to qualify as a REMIC at any time
that any Certificates are outstanding, and the Trust Fund may continue to hold
such Mortgaged Property (subject to any conditions contained in such Opinion
of Counsel) after the expiration of such three-year period. Notwithstanding
any other provision of this Agreement, no Mortgaged Property acquired by the
Trust Fund shall be rented (or allowed to continue to be rented) or otherwise
used for the production of income by or on behalf of the Trust Fund in such a
manner or pursuant to any terms that would (i) cause such Mortgaged Property
to fail to qualify as "foreclosure property" within the meaning of section
860G(a)(8) of the Code or (ii) subject the Trust Fund to the imposition of any
federal, state or local income taxes on the income earned from such Mortgaged
Property under section 860G(c) of the Code or otherwise, unless the Master
Servicer has agreed to indemnify and hold harmless the Trust Fund with respect
to the imposition of any such taxes.

            The decision of the Master Servicer to foreclose on a defaulted
Mortgage Loan shall be subject to a determination by the Master Servicer that
the proceeds of such foreclosure would exceed the costs and expenses of
bringing such a proceeding. The income earned from the management of any
Mortgaged Properties acquired through foreclosure or other judicial
proceeding, net of reimbursement to the Master Servicer for expenses incurred
(including any property or other taxes) in connection with such management and
net of unreimbursed Servicing Fees, Advances, Servicing Advances and any
management fee paid or to be paid with respect to the management of such
Mortgaged Property, shall be applied to the payment of principal of, and
interest on, the related defaulted Mortgage Loans (with interest accruing as
though such Mortgage Loans were still current) and all such income shall be
deemed, for all purposes in this Agreement, to be payments on account of
principal and interest on the related Mortgage Notes and shall be deposited
into the Certificate Account. To the extent the income received during a
Prepayment Period is in excess of the amount attributable to amortizing
principal and accrued interest at the related Mortgage Rate on the related
Mortgage Loan, such excess shall be considered to be a partial Principal
Prepayment for all purposes hereof.

            The Liquidation Proceeds from any liquidation of a Mortgage Loan
and any Subsequent Recoveries, net of any payment to the Master Servicer as
provided above, shall be deposited in the Certificate Account as provided in
Section 3.05 for distribution on the related Distribution Date, except that
any Excess Proceeds shall be retained by the Master Servicer as additional
servicing compensation.

            The proceeds of any Liquidated Mortgage Loan, as well as any
recovery resulting from a partial collection of Liquidation Proceeds or any
income from an REO Property, will be applied in the following order of
priority: first, to reimburse the Master Servicer for any related unreimbursed
Servicing Advances and Servicing Fees, pursuant to Section 3.08(a)(vi) or this
Section 3.12; second, to reimburse the Master Servicer for any unreimbursed
Advances, pursuant to Section 3.08(a)(ii) or this Section 3.12; third, to
accrued and unpaid interest (to the extent no Advance has been made for such
amount) on the Mortgage Loan or related REO Property, at the Net Mortgage Rate
to the Due Date occurring in the month in which such amounts are required to
be distributed; and fourth, as a recovery of principal of the Mortgage Loan.

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<PAGE>

            (c) [Reserved].

            (d) The Master Servicer, in its sole discretion, shall have the
right to elect (by written notice sent to the Trustee) to purchase for its own
account from the Trust Fund any Mortgage Loan that is 150 days or more
delinquent at a price equal to the Purchase Price; provided, however, that the
Master Servicer may only exercise this right on or before the last day of the
calendar month in which such Mortgage Loan became 150 days delinquent (such
month, the "Eligible Repurchase Month"); provided further, that any such
Mortgage Loan which becomes current but thereafter becomes delinquent may be
purchased by the Master Servicer pursuant to this Section in any ensuing
Eligible Repurchase Month. The Purchase Price for any Mortgage Loan purchased
hereunder shall be deposited in the Certificate Account. Any purchase of a
Mortgage Loan pursuant to this Section 3.12(d) shall be accomplished by
remittance to the Master Servicer for deposit in the Certificate Account of
the Purchase Price. The Trustee, upon receipt of certification from the Master
Servicer of such deposit and a Request for File Release from the Master
Servicer, shall release or cause to be released to the purchaser of such
Mortgage Loan the related Mortgage File and shall execute and deliver such
instruments of transfer or assignment prepared by the purchaser of such
Mortgage Loan, in each case without recourse, as shall be necessary to vest in
the purchaser of such Mortgage Loan any Mortgage Loan released pursuant hereto
and the purchaser of such Mortgage Loan shall succeed to all the Trustee's
right, title and interest in and to such Mortgage Loan and all security and
documents related thereto. Such assignment shall be an assignment outright and
not for security. The purchaser of such Mortgage Loan shall thereupon own such
Mortgage Loan, and all security and documents, free of any further obligation
to the Trustee or the Certificateholders with respect thereto.

            Section 3.13 Co-Trustee to Cooperate; Release of Mortgage Files.
                         ---------------------------------------------------

            Upon the payment in full of any Mortgage Loan, or the receipt by
the Master Servicer of a notification that payment in full will be escrowed in
a manner customary for such purposes, the Master Servicer will promptly notify
the Co-Trustee by delivering a Request for File Release. Upon receipt of such
request, the Co-Trustee shall promptly release the related Mortgage File to
the Master Servicer, and the Co-Trustee shall at the Master Servicer's
direction execute and deliver to the Master Servicer the request for
reconveyance, deed of reconveyance or release or satisfaction of mortgage or
such instrument releasing the lien of the Mortgage in each case provided by
the Master Servicer, together with the Mortgage Note with written evidence of
cancellation thereon. The Master Servicer is authorized to cause the removal
from the registration on the MERS(R) System of such Mortgage and to execute
and deliver, on behalf of the Trust Fund and the Certificateholders or any of
them, any and all instruments of satisfaction or cancellation or of partial or
full release. No expenses incurred in connection with any instrument of
satisfaction or deed of reconveyance shall be chargeable to the Certificate
Account, the Distribution Account, the Carryover Reserve Fund or the related
subservicing account. From time to time and as shall be appropriate for the
servicing or foreclosure of any Mortgage Loan, including for such purpose,
collection under any policy of flood insurance any fidelity bond or errors or
omissions policy, or for the purposes of effecting a partial release of any
Mortgaged Property from the lien of the Mortgage or the making of any
corrections to the Mortgage Note or the Mortgage or any of the other documents
included in the Mortgage File, the Co-Trustee shall, upon delivery to the
Co-Trustee of a Request for Document Release or a Request for File

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<PAGE>

Release, as applicable, release the documents specified in such request or the
Mortgage File, as the case may be, to the Master Servicer. Subject to the
further limitations set forth below, the Master Servicer shall cause the
Mortgage File or documents so released to be returned to the Co-Trustee when
the need therefor by the Master Servicer no longer exists, unless the Mortgage
Loan is liquidated and the proceeds thereof are deposited in the Certificate
Account, in which case the Master Servicer shall deliver to the Co-Trustee a
Request for File Release for any remaining documents in the Mortgage File not
in the possession of the Master Servicer.

            If the Master Servicer at any time seeks to initiate a foreclosure
proceeding in respect of any Mortgaged Property as authorized by this
Agreement, the Master Servicer shall deliver or cause to be delivered to the
Trustee, for signature, as appropriate, any court pleadings, requests for
trustee's sale or other documents necessary to effectuate such foreclosure or
any legal action brought to obtain judgment against the Mortgagor on the
Mortgage Note or the Mortgage or to obtain a deficiency judgment or to enforce
any other remedies or rights provided by the Mortgage Note or the Mortgage or
otherwise available at law or in equity. Notwithstanding the foregoing, the
Master Servicer shall cause possession of any Mortgage File or of the
documents therein that shall have been released by the Co-Trustee to be
returned to the Co-Trustee within 21 calendar days after possession thereof
shall have been released by the Co-Trustee unless (i) the Mortgage Loan has
been liquidated and the Liquidation Proceeds relating to the Mortgage Loan
have been deposited in the Certificate Account, and the Master Servicer shall
have delivered to the Co-Trustee a Request for File Release or (ii) the
Mortgage File or document shall have been delivered 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 and the Master Servicer shall have delivered to the
Trustee an Officer's Certificate of a Servicing Officer certifying as to the
name and address of the Person to which the Mortgage File or the documents
therein were delivered and the purpose or purposes of such delivery.

            Section 3.14 Documents, Records and Funds in Possession of Master
                         Servicer to be Held for the Trustee.
                         ------------------------------------

            Notwithstanding any other provisions of this Agreement, the Master
Servicer shall transmit to the Co-Trustee as required by this Agreement all
documents and instruments in respect of a Mortgage Loan coming into the
possession of the Master Servicer from time to time and shall account fully to
the Trustee for any funds received by the Master Servicer or that otherwise
are collected by the Master Servicer as Liquidation Proceeds, Insurance
Proceeds or Subsequent Recoveries in respect of any Mortgage Loan. All
Mortgage Files and funds collected or held by, or under the control of, the
Master Servicer in respect of any Mortgage Loans, whether from the collection
of principal and interest payments or from Liquidation Proceeds or Subsequent
Recoveries including but not limited to, any funds on deposit in the
Certificate Account, shall be held by the Master Servicer for and on behalf of
the Trust Fund and shall be and remain the sole and exclusive property of the
Trust Fund, subject to the applicable provisions of this Agreement. The Master
Servicer also agrees that it shall not create, incur or subject any Mortgage
File or any funds that are deposited in the Certificate Account, the
Distribution Account, the Carryover Reserve Fund or in any Escrow Account (as
defined in Section 3.06), or any funds that otherwise are or may become due or
payable to the Trustee for the benefit of the Certificateholders, to any
claim, lien, security interest, judgment, levy, writ of

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<PAGE>

attachment or other encumbrance, or assert by legal action or otherwise any
claim or right of set off against any Mortgage File or any funds collected on,
or in connection with, a Mortgage Loan, except, however, that the Master
Servicer shall be entitled to set off against and deduct from any such funds
any amounts that are properly due and payable to the Master Servicer under
this Agreement.

            Section 3.15 Servicing Compensation.
                         -----------------------

            As compensation for its activities hereunder, the Master Servicer
shall be entitled to retain or withdraw from the Certificate Account out of
each payment of interest on a Mortgage Loan included in the Trust Fund an
amount equal to interest at the applicable Servicing Fee Rate on the Stated
Principal Balance of the related Mortgage Loan for the period covered by such
interest payment.

            Additional servicing compensation in the form of any Excess
Proceeds, assumption fees, late payment charges, Prepayment Interest Excess,
and all income and gain net of any losses realized from Permitted Investments
shall be retained by the Master Servicer to the extent not required to be
deposited in the Certificate Account pursuant to Section 3.05 or 3.12(b)
hereof. The Master Servicer shall be required to pay all expenses incurred by
it in connection with its servicing activities hereunder (including payment of
any premiums for hazard insurance, as required by Section 3.10 hereof and
maintenance of the other forms of insurance coverage required by Section 3.10
hereof) and shall not be entitled to reimbursement therefor except as
specifically provided in Sections 3.08 and 3.12 hereof.

            Section 3.16 Access to Certain Documentation.
                         --------------------------------

            The Master Servicer shall provide to the OTS and the FDIC and to
comparable regulatory authorities supervising Holders of the Certificates and
Certificate Owners and the examiners and supervisory agents of the OTS, the
FDIC and such other authorities, access to the documentation regarding the
Mortgage Loans required by applicable regulations of the OTS and the FDIC.
Such access shall be afforded without charge, but only upon reasonable and
prior written request and during normal business hours at the offices of the
Master Servicer designated by it. Nothing in this Section shall limit the
obligation of the Master Servicer to observe any applicable law prohibiting
disclosure of information regarding the Mortgagors and the failure of the
Master Servicer to provide access as provided in this Section as a result of
such obligation shall not constitute a breach of this Section.

            Section 3.17 Annual Statement as to Compliance.
                         ----------------------------------

            (a) The Master Servicer shall deliver to the Depositor and the
Trustee on or before March 15 of each year, commencing with its 2007 fiscal
year, an Officer's Certificate stating, as to the signer thereof, that (i) a
review of the activities of the Master Servicer during the preceding calendar
year (or applicable portion thereof) and of the performance of the Master
Servicer under this Agreement, has been made under such officer's supervision
and (ii) to the best of such officer's knowledge, based on such review, the
Master Servicer has fulfilled all its obligations under this Agreement, in all
material respects throughout such year (or applicable portion thereof), or, if
there has been a failure to fulfill any such obligation in any material

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<PAGE>

respect, specifying each such failure known to such officer and the nature and
status thereof and (iii) to the best of such officer's knowledge, each
Subservicer has fulfilled all its obligations under its Subservicing Agreement
in all material respects throughout such year, or, if there has been a failure
to fulfill any such obligation in any material respect specifying each such
failure known to such officer and the nature and status thereof.

            (b) The Master Servicer shall cause each Subservicer to deliver to
the Depositor and the Trustee on or before March 15 of each year, commencing
with its 2007 fiscal year, an Officer's Certificate stating, as to the signer
thereof, that (i) a review of the activities of such Subservicer during the
preceding calendar year (or applicable portion thereof) and of the performance
of the Subservicer under the applicable Subservicing Agreement or primary
servicing agreement, has been made under such officer's supervision and (ii)
to the best of such officer's knowledge, based on such review, such
Subservicer has fulfilled all its obligations under the applicable
Subservicing Agreement or primary servicing agreement, in all material
respects throughout such year (or applicable portion thereof), or, if there
has been a failure to fulfill any such obligation in any material respect,
specifying each such failure known to such officer and the nature and status
thereof.

            (c) The Trustee shall forward a copy of each such statement to
each Rating Agency. Copies of such statement shall be provided by the Trustee
to any Certificateholder or Certificate Owner upon request at the Master
Servicer's expense, provided such statement is delivered by the Master
Servicer to the Trustee.

            Section 3.18 [Reserved].
                         -----------

            Section 3.19 [Reserved].
                         -----------

            Section 3.20 Prepayment Charges.
                         -------------------

            (a) Notwithstanding anything in this Agreement to the contrary, in
the event of a Principal Prepayment in full or in part of a Mortgage Loan, the
Master Servicer may not waive any Prepayment Charge or portion thereof
required by the terms of the related Mortgage Note unless (i) such Mortgage
Loan is in default or the Master Servicer believes that such a default is
imminent, and the Master Servicer determines that such waiver would maximize
recovery of Liquidation Proceeds for such Mortgage Loan, taking into account
the value of such Prepayment Charge, 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 or in part with respect to any
Mortgage Loan, the Master Servicer shall deliver to the Trustee an Officer's
Certificate substantially in the form of Exhibit T no later than the third
Business Day following the immediately succeeding Determination Date with a
copy to the Class P Certificateholders. If the Master Servicer has waived or
does not collect all or a portion of a Prepayment Charge relating to a
Principal Prepayment in full or in part due to any action or omission of the
Master Servicer, other than as provided above, the Master Servicer shall
deliver to the Trustee, together with the Principal Prepayment in full or in
part, the amount of such Prepayment Charge (or such portion thereof as had
been waived) for deposit into the

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<PAGE>

Certificate Account (not later than 1:00 p.m. Pacific time on the
immediately succeeding Master Servicer Advance Date, in the case of such
Prepayment Charge) for distribution in accordance with the terms of this
Agreement.

            (b) Upon discovery by the Master Servicer or a Responsible Officer
of the Trustee of a breach of the foregoing subsection (a), the party
discovering the breach shall give prompt written notice to the other parties.

            (c) CHL represents and warrants to the Depositor and the Trustee,
as of the Closing Date and each Subsequent Transfer Date, that the information
in the Prepayment Charge Schedule (including the attached prepayment charge
summary) is complete and accurate in all material respects at the dates as of
which the information is furnished and each Prepayment Charge is permissible
and enforceable in accordance with its terms under applicable state law,
except as the enforceability thereof is limited due to acceleration in
connection with a foreclosure or other involuntary payment.

            (d) Upon discovery by the Master Servicer or a Responsible Officer
of the Trustee of a breach of the foregoing clause (c) that materially and
adversely affects right of the Holders of the Class P Certificates to any
Prepayment Charge, the party discovering the breach shall give prompt written
notice to the other parties. Within 60 days of the earlier of discovery by the
Master Servicer or receipt of notice by the Master Servicer of breach, the
Master Servicer shall cure the breach in all material respects or shall pay
into the Certificate Account the amount of the Prepayment Charge that would
otherwise be due from the Mortgagor, less any amount representing such
Prepayment Charge previously collected and paid by the Master Servicer into
the Certificate Account.

            Section 3.21 Swap Contract.
                         --------------

            CHL shall cause The Bank of New York to enter into the Swap
Contract Administration Agreement and shall assign all of its right, title and
interest in and to the interest rate swap transaction evidenced by the Swap
Contract to, and shall cause all of its obligations in respect of such
transaction to be assumed by, the Swap Contract Administrator, on the terms
and conditions set forth in the Swap Contract Assignment Agreement. The
Trustee's rights to receive certain proceeds of the Swap Contract as provided
in the Swap Contract Administration Agreement shall be rights of the Trustee
as Swap Trustee hereunder, shall be an asset of the Swap Trust and shall not
be an asset of the Trust Fund nor of any REMIC. The Swap Trustee shall deposit
any amounts received from time to time from the Swap Contract Administrator
with respect to the Swap Contract into the Swap Account. The Master Servicer
shall deposit any amounts received on behalf of the Swap Trustee from time to
time with respect to the Swap Contract into the Swap Account.

            On the Business Day preceding each Distribution Date, the Swap
Trustee shall notify the Swap Contract Administrator of any amounts
distributable to the Interest-Bearing Certificates pursuant to Section
4.04(d)(3) through (8) that will remain unpaid following all distributions to
be made on such Distribution Date pursuant to Section 4.04(a) through (c).

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<PAGE>

            No later than two Business Days following each Distribution Date,
the Trustee shall provide the Swap Contract Administrator with information
regarding the aggregate Certificate Principal Balance of the Interest-Bearing
Certificates after all distributions on such Distribution Date.

            Upon the Swap Contract Administrator obtaining actual knowledge of
the rating of the Swap Counterparty falling below the Approved Rating
Thresholds (as defined in the Swap Contract), the Swap Trustee shall direct
the Swap Contract Administrator to demand payment of the Delivery Amount (as
defined in the ISDA Credit Support Annex) on each Valuation Date (as defined
in the ISDA Credit Support Annex) and to perform its other obligations in
accordance with the ISDA Credit Support Annex. If a Delivery Amount is
demanded, the Swap Trustee shall set up an account in accordance with Section
4.09 to hold cash or other eligible investments pledged under the ISDA Credit
Support Annex. Any cash or other eligible investments pledged under the ISDA
Credit Support Annex shall not be part of the Distribution Account or the Swap
Account unless they are applied in accordance with the ISDA Credit Support
Annex to make a payment due to the Swap Contract Administrator pursuant to the
Swap Contract. If Eligible Credit Support (as defined in the ISDA Credit
Support Annex) with a value equal to the Delivery Amount is not delivered, the
Swap Trustee shall direct the Swap Contract Administrator to notify the Swap
Counterparty of such failure.

            Upon the Swap Trustee obtaining actual knowledge of a Failure to
Pay or Deliver (as defined in the Swap Contract), the Swap Trustee shall
direct the Swap Contract Administrator to demand payment under the Swap
Guarantee.

            Upon the Swap Trustee obtaining actual knowledge of an Event of
Default (as defined in the Swap Contract) or Termination Event (as defined in
the Swap Contract) for which the Swap Contract Administrator has the right to
designate an Early Termination Date (as defined in the Swap Contract), the
Swap Trustee shall act at the written direction of the Depositor as to whether
to direct the Swap Contract Administrator to designate an Early Termination
Date; provided, however, that the Swap Trustee shall provide written notice to
each Rating Agency following the Event of Default or Termination Event. Upon
the termination of the Swap Contract under the circumstances contemplated by
this Section 3.21, the Swap Trustee shall use its reasonable best efforts to
enforce the rights of the Swap Contract Administrator as may be permitted by
the terms of the Swap Contract and consistent with the terms hereof, and CHL
shall assist the Swap Contract Administrator in procuring a replacement swap
contract with terms approximating those of the original Swap Contract.

            In the event that the swap counterparty in respect of a
replacement swap contract pays any upfront amount to the Swap Contract
Administrator in connection with entering into the replacement swap contract
and such upfront amount is received by the Swap Contract Administrator prior
to the Distribution Date on which any Swap Termination Payment will be payable
to the Swap Counterparty in respect of the original Swap Contract, a portion
of that upfront amount equal to the lesser of (x) that upfront amount and (y)
the amount of the Swap Termination Payment due to the Swap Counterparty in
respect of the original Swap Contract (the "Adjusted Replacement Upfront
Amount") shall be included in Interest Funds for Loan Group 1, Loan Group 2
and Loan Group 3 pro rata based on their respective Interest Funds for that
Distribution Date and any upfront amount in excess of the Adjusted Replacement
Upfront

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<PAGE>

Amount shall be distributed to CHL and will not be available to make
distributions in respect of any Class of Certificates. Any upfront amount paid
to the Swap Contract Administrator by the swap counterparty in respect of a
replacement swap contract after the Distribution Date on which any Swap
Termination Payment will be payable to the Swap Counterparty in respect of the
original Swap Contract, such upfront amount shall be retained by the Swap
Contract Administrator and remitted to the Swap Trustee on subsequent
Distribution Dates up to and including the Swap Contract Termination Date to
pay any amounts distributable to the Interest-Bearing Certificates pursuant to
Section 4.04(d)(3) through (8) that will remain unpaid following all
distributions to be made on such Distribution Date pursuant to Section 4.04(a)
through (c).

            Any portion of any Net Swap Payment or Swap Termination Payment
payable by the Swap Counterparty and not remitted by the Swap Contract
Administrator to the Swap Trustee with respect to any Distribution Date will
be remitted to CHL and will not be available to make distributions in respect
of any Class of Certificates.

            The Swap Counterparty shall be an express third party beneficiary
of this Agreement for the purpose of enforcing the provisions hereof to the
extent of the Swap Counterparty's rights explicitly specified herein as if a
party hereto.

                                 ARTICLE IV.
               DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER

            Section 4.01 Advances; Remittance Reports.
                         -----------------------------

            (a) Within two Business Days after each Determination Date, the
Master Servicer shall deliver to the Trustee by facsimile or electronic mail
(or by such other means as the Master Servicer and the Trustee, as the case
may be, may agree from time to time) a Remittance Report with respect to the
related Distribution Date. The Trustee shall not be responsible to recompute,
recalculate or verify any information provided to it by the Master Servicer.

            (b) Subject to the conditions of this Article IV, the Master
Servicer, as required below, shall make an Advance and deposit such Advance in
the Certificate Account. Each such Advance shall be remitted to the
Certificate Account no later than 1:00 p.m. Pacific time on the Master
Servicer Advance Date in immediately available funds. The Trustee will provide
notice to the Master Servicer by facsimile by the close of business on any
Master Servicer Advance Date in the event that the amount remitted by the
Master Servicer to the Trustee on the Distribution Account Deposit Date is
less than the Advances required to be made by the Master Servicer for such
Distribution Date. The Master Servicer shall be obligated to make any such
Advance only to the extent that such advance would not be a Nonrecoverable
Advance. If the Master Servicer shall have determined that it has made a
Nonrecoverable Advance or that a proposed Advance or a lesser portion of such
Advance would constitute a Nonrecoverable Advance, the Master Servicer shall
deliver (i) to the Trustee for the benefit of the Certificateholders funds
constituting the remaining portion of such Advance, if applicable, and (ii) to
the Depositor, each Rating Agency and the Trustee an Officer's Certificate
setting forth the basis for such determination.

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<PAGE>

            (c) In lieu of making all or a portion of such Advance from its
own funds, the Master Servicer may (i) cause to be made an appropriate entry
in its records relating to the Certificate Account that any Amount Held for
Future Distributions has been used by the Master Servicer in discharge of its
obligation to make any such Advance and (ii) transfer such funds from the
Certificate Account to the Distribution Account. Any funds so applied and
transferred shall be replaced by the Master Servicer by deposit in the
Certificate Account no later than the close of business on the Business Day
immediately preceding the Distribution Date on which such funds are required
to be distributed pursuant to this Agreement. The Master Servicer shall be
entitled to be reimbursed from the Certificate Account for all Advances of its
own funds made pursuant to this Section as provided in Section 3.08. The
obligation to make Advances with respect to any Mortgage Loan shall continue
until such Mortgage Loan is paid in full or becomes a Liquidated Mortgage Loan
or until the purchase or repurchase thereof (or substitution therefor) from
the Trustee pursuant to any applicable provision of this Agreement, except as
otherwise provided in this Section 4.01.

            (d) If the Master Servicer determines that it will be unable to
comply with its obligation to make the Advances as and when described in
paragraphs (b) and (c) immediately above, it shall use its best efforts to
give written notice thereof to the Trustee (each such notice a "Trustee
Advance Notice"; and such notice may be given by facsimile), not later than
3:00 p.m., New York time, on the Business Day immediately preceding the
related Master Servicer Advance Date, specifying the amount that it will be
unable to deposit (each such amount an "Advance Deficiency") and certifying
that such Advance Deficiency constitutes an Advance hereunder and is not a
Nonrecoverable Advance. If the Trustee receives a Trustee Advance Notice on or
before 3:30 p.m., (New York time) on a Master Servicer Advance Date, the
Trustee shall, not later than 3:00 p.m., (New York time), on the related
Distribution Date, deposit in the Distribution Account an amount equal to the
Advance Deficiency identified in such Trustee Advance Notice unless it is
prohibited from so doing by applicable law. Notwithstanding the foregoing, the
Trustee shall not be required to make such deposit if the Trustee shall have
received written notification from the Master Servicer that the Master
Servicer has deposited or caused to be deposited in the Certificate Account an
amount equal to such Advance Deficiency. All Advances made by the Trustee
pursuant to this Section 4.01(d) shall accrue interest on behalf of the
Trustee at the Trustee Advance Rate from and including the date such Advances
are made to but excluding the date of repayment, with such interest being an
obligation of the Master Servicer and not the Trust Fund. The Master Servicer
shall reimburse the Trustee for the amount of any Advance made by the Trustee
pursuant to this Section 4.01(d) together with accrued interest, not later
than 6:00 p.m. (New York time) on the Business Day following the related
Distribution Date. In the event that the Master Servicer does not reimburse
the Trustee in accordance with the requirements of the preceding sentence, the
Trustee shall immediately (i) terminate all of the rights and obligations of
the Master Servicer under this Agreement in accordance with Section 7.01 and
(ii) subject to the limitations set forth in Section 3.04, assume all of the
rights and obligations of the Master Servicer hereunder.

            (e) The Master Servicer shall, not later than the close of
business on the second Business Day immediately preceding each Distribution
Date, deliver to the Trustee a report (in form and substance reasonably
satisfactory to the Trustee) that indicates (i) the Mortgage Loans with
respect to which the Master Servicer has determined that the related Scheduled
Payments should be advanced and (ii) the amount of the related Scheduled
Payments.

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<PAGE>

The Master Servicer shall deliver to the Trustee on the related Master
Servicer Advance Date an Officer's Certificate of a Servicing Officer
indicating the amount of any proposed Advance determined by the Master
Servicer to be a Nonrecoverable Advance.

            Section 4.02 Reduction of Servicing Compensation in Connection
                         with Prepayment Interest Shortfalls.
                         ------------------------------------

            In the event that any Mortgage Loan is the subject of a Prepayment
Interest Shortfall, the Master Servicer shall remit any related Compensating
Interest as part of the related Interest Remittance Amount as provided in this
Agreement. The Master Servicer shall not be entitled to any recovery or
reimbursement for Compensating Interest from the Depositor, the Trustee, any
Seller, the Trust Fund or the Certificateholders.

            Section 4.03 [Reserved].
                         -----------

            Section 4.04 Distributions.
                         ---------------

            (a) On each Distribution Date, the Interest Funds for that
Distribution Date shall be distributed by the Trustee from the Distribution
Account in the following order of priority:

                  (i) from the Interest Funds for all Loan Groups, pro rata
            based on the Interest Funds for each such Loan Group, to the Swap
            Account, the amount of any Net Swap Payment and any Swap
            Termination Payment (other than a Swap Termination Payment due to
            a Swap Counterparty Trigger Event) payable to the Swap
            Counterparty with respect to such Distribution Date;

                  (ii) concurrently:

                        (a) from the Interest Funds for Loan Group 1, to the
                  Class 1-A Certificates, the Current Interest and Interest
                  Carry Forward Amount for such Class,

                        (b) from the Interest Funds for Loan Group 2,
                  concurrently to each Class of Class 2-A Certificates, the
                  Current Interest and Interest Carry Forward Amount for each
                  such Class, pro rata based on their respective entitlements,

                        (c) from the Interest Funds for Loan Group 3,
                  concurrently to each Class of Class 3-A Certificates, the
                  Current Interest and Interest Carry Forward Amount for each
                  such Class, pro rata based on their respective entitlements,

                  (iii) from the remaining Interest Funds for all Loan Groups,
            concurrently to each Class of Class A Certificates, any remaining
            Current Interest and Interest Carry Forward Amount not paid
            pursuant to clauses (ii)(a), (ii)(b) and (ii)(c) above, pro rata
            based on the Certificate Principal Balances thereof, to the extent
            needed to pay any Current Interest and Interest Carry Forward
            Amount for

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<PAGE>

            each such Class; provided that Interest Funds remaining after such
            allocation to pay any Current Interest and Interest Carry Forward
            Amount based on the Certificate Principal Balances of the
            Certificates will be distributed to each Class of Class A
            Certificates with respect to which there remains any unpaid
            Current Interest and Interest Carry Forward Amount (after the
            distribution based on Certificate Principal Balances), pro rata
            based on the amount of such remaining unpaid Current Interest and
            Interest Carry Forward Amount,

                  (iv) from the remaining Interest Funds for all Loan Groups,
            sequentially:

                        (a) sequentially, to the Class M-1, Class M-2, Class
                  M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8
                  and Class B Certificates, in that order, the Current
                  Interest for each such Class, and

                        (b) any remainder as part of the Excess Cashflow.

            (b) On each Distribution Date, the Principal Distribution Amount
for such Distribution Date with respect to Loan Group 1, Loan Group 2 and Loan
Group 3 shall be distributed by the Trustee from the Distribution Account in
the following order of priority:

                (1) with respect to any Distribution Date prior to the
      Stepdown Date or on which a Trigger Event is in effect, sequentially:

                  (A) concurrently:

                  (i) from the Principal Distribution Amount for Loan Group 1,
            sequentially:

                        (a) to the Class 1-A Certificates, until the
                  Certificate Principal Balance thereof is reduced to zero,
                  and

                        (b) pro rata (based on (x) the aggregate Certificate
                  Principal Balance of the Class 2-A Certificates and (y) the
                  aggregate Certificate Principal Balance of the Class 3-A
                  Certificates) to (I) the Classes of Class 2-A Certificates
                  (after the distribution of the Principal Distribution Amount
                  from Loan Group 2 as provided in clause (1)(A)(ii)(a)
                  below), in the amounts and order of priority set forth in
                  clause (3) below, until the Certificate Principal Balances
                  thereof are reduced to zero and (II) the Classes of Class
                  3-A Certificates (after the distribution of the Principal
                  Distribution Amount from Loan Group 3 as provided in clause
                  (1)(A)(iii)(a) below), in the amounts and order of priority
                  described in clause (4) below, until the Certificate
                  Principal Balances thereof are reduced to zero,

                  (ii) from the Principal Distribution Amount for Loan Group
            2, sequentially:

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                        (a) to the Classes of Class 2-A Certificates, in the
                  amounts and order of priority set forth in clause (3) below,
                  until the Certificate Principal Balances thereof are reduced
                  to zero, and

                        (b) pro rata (based on (x) the Certificate Principal
                  Balance of the Class 1-A Certificates and (y) the aggregate
                  Certificate Principal Balance of the Class 3-A Certificates)
                  to (I) the Class 1-A Certificates (after the distribution of
                  the Principal Distribution Amount from Loan Group 1 as
                  provided in clause (1)(A)(i)(a) above), until the
                  Certificate Principal Balance thereof is reduced to zero and
                  (II) the Classes of Class 3-A Certificates (after the
                  distribution of the Principal Distribution Amount from Loan
                  Group 3 as provided in clause (1)(A)(iii)(a) below), in the
                  amounts and order of priority described in clause (4) below,
                  until the Certificate Principal Balances thereof are reduced
                  to zero,

                  (iii) from the Principal Distribution Amount for Loan Group
            3, sequentially:

                        (a) to the Classes of Class 3-A Certificates, in the
                  amounts and order of priority set forth in clause (4) below,
                  until the Certificate Principal Balances thereof are reduced
                  to zero, and

                        (b) pro rata (based on (x) the Certificate Principal
                  Balance of the Class 1-A Certificates and (y) the aggregate
                  Certificate Principal Balance of the Class 2-A Certificates)
                  to (I) the Class 1-A Certificates (after the distribution of
                  the Principal Distribution Amount from Loan Group 1 as
                  provided in clause (1)(A)(i)(a) above), until the
                  Certificate Principal Balance thereof is reduced to zero and
                  (II) the Classes of Class 2-A Certificates (after the
                  distribution of the Principal Distribution Amount from Loan
                  Group 2 as provided in clause (1)(A)(ii)(a) above), in the
                  amounts and order of priority described in clause (3) below,
                  until the Certificate Principal Balances thereof are reduced
                  to zero,

            (B) from the remaining Principal Distribution Amounts for all Loan
      Groups, sequentially:

            (i) sequentially, to the Class M-1, Class M-2, Class M-3, Class
      M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B
      Certificates, in that order, in each case until the Certificate
      Principal Balance thereof is reduced to zero, and

            (ii) any remainder as part of the Excess Cashflow.

                (2) For each Distribution Date on or after the Stepdown Date
      and so long as a Trigger Event is not in effect, from the Principal
      Distribution Amounts for all Loan Groups, sequentially:

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<PAGE>

            (A) in an amount up to the Class A Principal Distribution Target
      Amount, pro rata based on the related Class A Principal Distribution
      Allocation Amount for the Class 1-A, Class 2-A and Class 3-A
      Certificates, concurrently:

            (i) to the Class 1-A Certificates, in an amount up to the Class
      1-A Principal Distribution Amount, until the Certificate Principal
      Balance thereof is reduced to zero,

            (ii) to the Classes of Class 2-A Certificates, in an amount up to
      the Class 2-A Principal Distribution Amount, allocated in the amounts
      and order of priority set forth in clause (3) below, until the
      Certificate Principal Balances thereof are reduced to zero, and

            (iii) to the Classes of Class 3-A Certificates, in an amount up to
      the Class 3-A Principal Distribution Amount, allocated in the amounts
      and order of priority set forth in clause (4) below, until the
      Certificate Principal Balances thereof are reduced to zero.

      provided, however, that if (a) the Certificate Principal Balance of the
      Class 1-A Certificates, (b) the aggregate Certificate Principal Balance
      of the Class 2-A Certificates and/or the aggregate Certificate Principal
      Balance of the Class 3-A Certificates is reduced to zero, then any
      remaining unpaid Class A Principal Distribution Target Amount will be
      distributed pro rata (based on the Certificate Principal Balance of the
      Class 1-A Certificates, the aggregate Certificate Principal Balance of
      the Class 2-A Certificates and the aggregate Certificate Principal
      Balance of the Class 3-A Certificates) to the remaining Classes of
      Senior Certificates after distributions from clauses (i), (ii) and (iii)
      above (and, in the case of the Class 2-A Certificates, in the amounts
      and order of priority described in clause (3) below, and, in the case of
      the Class 3-A Certificates, in the amounts and order of priority
      described in clause (4) below), until the Certificate Principal
      Balance(s) thereof is/are reduced to zero,

            (B) sequentially, to the Class M-1, Class M-2, Class M-3, Class
      M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B
      Certificates, in that order, the Subordinate Class Principal
      Distribution Amount for each such Class, in each case until the
      Certificate Principal Balance thereof is reduced to zero, and

            (C) any remainder as part of the Excess Cashflow.

                (3) On each Distribution Date on which any principal amounts
      are to be distributed to the Class 2-A Certificates, those amounts shall
      be distributed sequentially, to the Class 2-A-1, Class 2-A-2 and Class
      2-A-3 Certificates, in that order, in each case until the Certificate
      Principal Balance thereof is reduced to zero.

                (4) On each Distribution Date on which any principal amounts
      are to be distributed to the Class 3-A Certificates, those amounts shall
      be distributed sequentially, to the Class 3-A-1 and Class 3-A-2
      Certificates, in that order, in each case until the Certificate
      Principal Balance thereof is reduced to zero.

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            (c) With respect to any Distribution Date, any Excess Cashflow
and, in the case of clauses (1) and (2) below and in the case of the payment
of Unpaid Realized Loss Amounts pursuant to clause (3) below, any Credit
Comeback Excess Cashflow shall be distributed to the Classes of Certificates
in the following order of priority, in each case first to the extent of the
remaining Credit Comeback Excess Cashflow, if applicable, and second to the
extent of the remaining Excess Cashflow:

                (1) to the Holders of the Class or Classes of Interest-Bearing
      Certificates then entitled to receive distributions in respect of
      principal, in an aggregate amount equal to the Extra Principal
      Distribution Amount for Loan Group 1, Loan Group 2 and Loan Group 3
      payable to such Holders of each such Class as part of the Principal
      Distribution Amount for Loan Group 1, Loan Group 2 and Loan Group 3
      pursuant to Section 4.04(b);

                (2) concurrently, to the Holders of each Class of Class A
      Certificates, pro rata based on the Unpaid Realized Loss Amounts for
      those Classes, in each case in an amount equal to the Unpaid Realized
      Loss Amount for each such Class;

                (3) sequentially, to the Holders of the Class M-1, Class M-2,
      Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and
      Class B Certificates, in that order, in each case, first in an amount
      equal to any Interest Carry Forward Amount for such Class, and second in
      an amount equal to any Unpaid Realized Loss Amount for such Class;

                (4) to the Carryover Reserve Fund and from the Carryover
      Reserve Fund to the Holders of each Class of Interest-Bearing
      Certificates, pro rata based on the Certificate Principal Balances
      thereof, to the extent needed to pay any Net Rate Carryover for each
      such Class; provided that any Excess Cashflow remaining after such
      allocation to pay Net Rate Carryover based on the Certificate Principal
      Balances of those Certificates shall be distributed to each Class of
      Interest-Bearing Certificates with respect to which there remains any
      unpaid Net Rate Carryover (after the distribution based on Certificate
      Principal Balances), pro rata, based on the amount of such unpaid Net
      Rate Carryover;

                (5) to the Carryover Reserve Fund, in an amount equal to the
      Required Carryover Reserve Fund Deposit (after giving effect to other
      deposits and withdrawals therefrom on such Distribution Date);

                (6) to the Swap Account, in an amount equal to any Swap
      Termination Payment due to the Swap Counterparty as a result of a Swap
      Counterparty Trigger Event;

                (7) to the Class C Certificateholders, the Class C
      Distributable Amount for such Distribution Date; and

                (8) to the Class A-R Certificates, any remaining amount.

            (d) On each Distribution Date on or prior to the Swap Contract
Termination Date, following the deposits to the Swap Account pursuant to
Section 4.04(a)(i) and Section 4.09

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and the distributions described under Section 4.04(c)(1) through (4), the Swap
Trustee shall distribute amounts on deposit in the Swap Account in the
following amounts and order of priority:

                (1) to the Swap Contract Administrator for payment to the Swap
      Counterparty, any Net Swap Payment payable to the Swap Counterparty with
      respect to such Distribution Date;

                (2) to the Swap Contract Administrator for payment to the Swap
      Counterparty, any Swap Termination Payment (other than a Swap
      Termination Payment due to a Swap Counterparty Trigger Event) payable to
      the Swap Counterparty with respect to such Distribution Date;

                (3) concurrently to the Holders of each Class of Class A
      Certificates, any remaining Current Interest and Interest Carry Forward
      Amount, pro rata based on their respective entitlements;

                (4) sequentially, to the Holders of the Class M-1, Class M-2,
      Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and
      Class B Certificates, in that order, in each case in an amount equal to
      any remaining Current Interest and Interest Carry Forward Amount for
      such Class;

                (5) to the Holders of the Class or Classes of Interest-Bearing
      Certificates then entitled to receive distributions in respect of
      principal, in an aggregate amount equal to the Overcollateralization
      Deficiency Amount remaining unpaid following the distribution of Excess
      Cashflow and Credit Comeback Excess Cashflow as described above under
      Section 4.04(c) payable to such Holders of each such Class in the same
      manner in which the Extra Principal Distribution Amount in respect of
      Loan Group 1, Loan Group 2 and Loan Group 3 would be distributed to such
      Classes as described under Section 4.04(c);

                (6) concurrently to the Holders of each Class of
      Interest-Bearing Certificates, to the extent needed to pay any remaining
      Net Rate Carryover for each such Class, pro rata, based on the amount of
      such remaining Net Rate Carryover;

                (7) concurrently, to the Holders of each Class of Class A
      Certificates, pro rata based on the remaining Unpaid Realized Loss
      Amounts for those Classes, in each case in an amount equal to the
      remaining Unpaid Realized Loss Amount for each such Class; and

                (8) sequentially, to the Holders of the Class M-1, Class M-2,
      Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and
      Class B Certificates, in that order, in each case in an amount equal to
      the remaining Unpaid Realized Loss Amount for each such Class.

            On each Distribution Date on or prior to the Swap Contract
Termination Date, following the distributions described under Section
4.04(c)(5) and following the deposit to the Swap Account pursuant to Section
4.04(c)(6), the Swap Trustee shall distribute amounts on

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deposit in the Swap Account to the Swap Contract Administrator for payment to
the Swap Counterparty, any Swap Termination Payment due to a Swap Counterparty
Trigger Event payable to the Swap Counterparty with respect to such
Distribution Date.

            (e) To the extent that a Class of Interest-Bearing Certificates
receives interest in excess of the applicable Net Rate Cap, if such interest
is paid pursuant to Section 4.04(c), then it shall be deemed to have been paid
to the Carryover Reserve Fund and then paid by the Carryover Reserve Fund to
those Certificateholders, and if such interest is paid pursuant to Section
4.04(d), then such interest shall be deemed to have been paid to the Swap
Account and then paid by the Swap Account to those Certificateholders. For
purposes of the Code, amounts deemed deposited in the Carryover Reserve Fund
shall be deemed to have first been distributed to the Class C Certificates.

            (f) On each Distribution Date, all Prepayment Charges (including
amounts deposited in connection with the full or partial waiver of such
Prepayment Charges pursuant to Section 3.20) shall be allocated to the Class P
Certificates. On the Class P Principal Distribution Date, the Trustee shall
make the $100.00 distribution to the Class P Certificates as specified in
Section 3.08.

            (g) On each Distribution Date, the Trustee shall allocate any
Applied Realized Loss Amount to reduce the Certificate Principal Balances of
the Class B, Class M-8, Class M-7, Class M-6, Class M-5, Class M-4, Class M-3,
Class M-2 and Class M-1 Certificates, sequentially, in that order, in each
case until the Certificate Principal Balance thereof is reduced to zero. After
the Certificate Principal Balances of the Subordinate Certificates have been
reduced to zero, (i) the Trustee shall allocate any Applied Realized Loss
Amount with respect to Loan Group 1 to reduce the Certificate Principal
Balance of the Class 1-A Certificates until the Certificate Principal Balance
of the Class 1-A Certificates has been reduced to zero, (ii) the Trustee shall
allocate any Applied Realized Loss Amount with respect to Loan Group 2 to
reduce the Certificate Principal Balances of each Class of Class 2-A
Certificates, on a pro rata basis according to their respective Certificate
Principal Balances, until the Certificate Principal Balances of such Classes
have been reduced to zero and (iii) the Trustee shall allocate any Applied
Realized Loss Amount with respect to Loan Group 3 to reduce the Certificate
Principal Balances of each Class of Class 3-A Certificates, on a pro rata
basis according to their respective Certificate Principal Balances, until the
Certificate Principal Balances of such Classes have been reduced to zero.

            (h) On each Distribution Date, the Trustee shall allocate the
amount of the Subsequent Recoveries with respect to either Loan Group, if any,
first to increase the Certificate Principal Balance of the Class 1-A
Certificates (in the case of any Subsequent Recoveries with respect to Loan
Group 1), the Classes of Class 2-A Certificates (in the case of any Subsequent
Recoveries with respect to Loan Group 2) or the Classes of Class 3-A
Certificates (in the case of any Subsequent Recoveries with respect to Loan
Group 3) to which Applied Realized Loss Amounts have been previously allocated
(such increases, in the case of Subsequent Recoveries with respect to Loan
Group 2 to be made among the Classes of Class 2-A Certificates on a pro rata
basis according to their respective Certificate Principal Balances and, in the
case of Subsequent Recoveries with respect to Loan Group 3 to be made among
the Classes of Class 3-A Certificates on a pro rata basis according to their
respective Certificate Principal Balances), in

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each case by not more than the amount of the Unpaid Realized Loss Amount of
such Class, and then to increase the Certificate Principal Balance of the
Subordinate Certificates to which Applied Realized Loss Amounts have been
previously allocated, sequentially, to the Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B
Certificates, in that order, in each case by not more than the amount of the
Unpaid Realized Loss Amount of such Class.

            Holders of Certificates to which any Subsequent Recoveries have
been allocated shall not be entitled to any payment in respect of Current
Interest on the amount of such increases for any Accrual Period preceding the
Distribution Date on which such increase occurs.

            Subject to Section 9.02 hereof respecting the final distribution,
on each Distribution Date the Trustee shall make distributions to each
Certificateholder of record on the preceding Record Date either by wire
transfer in immediately available funds to the account of such Holder at a
bank or other entity having appropriate facilities therefor, if (i) such
Holder has so notified the Trustee at least five Business Days prior to the
related Record Date and (ii) such Holder shall hold Regular Certificates with
an aggregate initial Certificate Principal Balance of not less than $1,000,000
or evidencing a Percentage Interest aggregating 10% or more with respect to
such Class or, if not, by check mailed by first class mail to such
Certificateholder at the address of such Holder appearing in the Certificate
Register. Notwithstanding the foregoing, but subject to Section 9.02 hereof
respecting the final distribution, distributions with respect to Certificates
registered in the name of a Depository shall be made to such Depository in
immediately available funds.

            On or before 5:00 p.m. Pacific time on the fifth Business Day
following each Determination Date (but in no event later than 5:00 p.m.
Pacific time on the third Business Day before the related Distribution Date),
the Master Servicer shall deliver a report to the Trustee (in the form of a
computer readable magnetic tape or by such other means as the Master Servicer
and the Trustee may agree from time to time) containing such data and
information as agreed to by the Master Servicer and the Trustee (including,
without limitation, the actual mortgage rate for each Credit Comeback Loan)
such as to permit the Trustee to prepare the Monthly Statement and make the
required distributions for the related Distribution Date (the "Remittance
Report"). The Trustee shall not be responsible to recompute, recalculate or
verify information provided to it by the Master Servicer and shall be
permitted to conclusively rely on any information provided to it by the Master
Servicer.

            Section 4.05 Monthly Statements to Certificateholders.
                         -----------------------------------------

            (a) Concurrently with each distribution on a Distribution Date,
the Trustee will forward by mail to each Rating Agency and make available to
Certificateholders on the Trustee's website
(http://www.bnyinvestorrreporting.com) a statement generally setting forth the
information contained in Exhibit W.

            (b) The Trustee's responsibility for disbursing the above
information to the Certificateholders is limited to the availability,
timeliness and accuracy of the information derived from the Master Servicer.
The Trustee shall send a copy of each statement provided pursuant to this
Section 4.05 to each Rating Agency and the NIM Insurer. The Trustee may

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make the above information available to Certificateholders via the Trustee's
website at http://www.bnyinvestorreporting.com.

            (c) Within a reasonable period of time after the end of each
calendar year, the Trustee shall cause to be furnished to each Person who at
any time during the calendar year was a Certificateholder, a statement
containing the information regarding (i) the amount of distributions to that
Certificateholder allocable to principal, separately identifying (A) the
aggregate amount of any Principal Prepayments included therein and (B) the
aggregate of all scheduled payments of principal included therein, (ii) the
amount of distributions to that Certificateholder allocable to interest and
(iii) the related amount of the Servicing Fees paid to or retained by the
Master Servicer, in each case 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 provided by the Trustee
pursuant to any requirements of the Code as from time to time in effect.

            (d) Upon filing with the Internal Revenue Service, the Trustee
shall furnish to the Holders of the Class A-R Certificates the Form 1066 and
each Form 1066Q and shall respond promptly to written requests made not more
frequently than quarterly by any Holder of Class A-R Certificates with respect
to the following matters:

                (1) The original projected principal and interest cash flows
      on the Closing Date on each related Class of regular and residual
      interests created hereunder and on the Mortgage Loans, based on the
      Prepayment Assumption;

                (2) The projected remaining principal and interest cash flows
      as of the end of any calendar quarter with respect to each related Class
      of regular and residual interests created hereunder and the Mortgage
      Loans, based on the Prepayment Assumption;

                (3) The applicable Prepayment Assumption and any interest rate
      assumptions used in determining the projected principal and interest
      cash flows described above;

                (4) The original issue discount (or, in the case of the
      Mortgage Loans, market discount) or premium accrued or amortized through
      the end of such calendar quarter with respect to each related Class of
      regular or residual interests created hereunder and to the Mortgage
      Loans, together with each constant yield to maturity used in computing
      the same;

                (5) The treatment of losses realized with respect to the
      Mortgage Loans or the regular interests created hereunder, including the
      timing and amount of any cancellation of indebtedness income of the
      related REMIC with respect to such regular interests or bad debt
      deductions claimed with respect to the Mortgage Loans;

                (6) The amount and timing of any non-interest expenses of the
      related REMIC; and

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<PAGE>

                (7) Any taxes (including penalties and interest) imposed on
      the related REMIC, including, without limitation, taxes on "prohibited
      transactions," "contributions" or "net income from foreclosure property"
      or state or local income or franchise taxes.

            The information pursuant to clauses (1), (2), (3) and (4) above
shall be provided by the Depositor pursuant to Section 8.11.

            Section 4.06 Termination of the Mortgage Insurance Policy.
                         ---------------------------------------------

            If on any given date the rating of Mortgage Guaranty Insurance
Corporation's claims-paying ability is downgraded below and remains below
"AA-" from S&P or "Aa3" from Moody's, the Master Servicer may direct the
Co-Trustee to terminate the Mortgage Insurance Policy and the Co-Trustee shall
act in accordance with such direction. The Master Servicer hereby covenants
and agrees that it will not direct the Co-Trustee to exercise its right to
terminate the Mortgage Insurance Policy unless the Co-Trustee obtains a
mortgage insurance policy that meets the following conditions: (i) such
mortgage insurance policy must be issued by a mortgage insurer that has a
rating with respect to its claims-paying ability at or above "AA " from S&P or
"Aa3" from Moody's and (ii) such mortgage insurance policy must cover the
Covered Mortgage Loans outstanding as of such date.

            In addition, if during the period which the Depositor is required
to file Exchange Act Reports with respect to the Trust Fund, Mortgage Guaranty
Insurance Corporation shall fail to provide to CHL any information required to
be provided pursuant to Section 4 or 5 of the Indemnification and Disclosure
Agreement, dated February 27, 2006, between CHL and Mortgage Guaranty
Insurance Corporation, within the time period required by Section 4 or 5, as
the case may be, then the Co-Trustee shall act at the written direction of the
Depositor as to whether to terminate the Mortgage Insurance Policy; provided,
however, that the Co-Trustee shall provide written notice to each Rating
Agency of any such termination. Upon the termination of the Mortgage Insurance
Policy under the circumstances contemplated by this paragraph, CHL shall
assist the Co-Trustee in procuring a replacement mortgage insurance policy
that meets the criteria for a replacement mortgage insurance policy specified
in the preceding paragraph.

            Section 4.07 Carryover Reserve Fund.
                         -----------------------

            (a) On the Closing Date, the Trustee shall establish and maintain
in its name, in trust for the benefit of the Holders of the Certificates, the
Carryover Reserve Fund and shall deposit $1,000 therein. The Carryover Reserve
Fund shall be an Eligible Account, and funds on deposit therein shall be held
separate and apart from, and shall not be commingled with, any other moneys,
including without limitation, other moneys held by the Trustee pursuant to
this Agreement.

            (b) The Trustee shall make withdrawals from the Carryover Reserve
Fund to make distributions in respect of Net Rate Carryover as to the extent
required by Section 4.04.

            (c) The Carryover Reserve Fund shall not constitute an asset of
any REMIC created hereunder. The Class C Certificates shall evidence ownership
of the Carryover Reserve Fund for federal tax purposes.

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            Section 4.08 Credit Comeback Excess Account.
                         -------------------------------

            On the Closing Date, the Trustee shall establish and maintain in
its name, in trust for the benefit of the Certificateholders, the Credit
Comeback Excess Account. The Credit Comeback Excess Account shall be an
Eligible Account, and funds on deposit therein shall be held separate and
apart from, and shall not be commingled with, any other moneys, including
without limitation, other moneys held by the Trustee pursuant to this
Agreement.

            On each Distribution Date, the Trustee shall deposit all Credit
Comeback Excess Amounts in the Credit Comeback Excess Account. The Trustee
shall make withdrawals from the Credit Comeback Excess Account to make
distributions as and to the extent required by Section 4.04.

            Funds in the Credit Comeback Excess Account with respect to Loan
Group 1, Loan Group 2 and Loan Group 3 may be invested in Permitted
Investments at the written direction of the Majority Holder of the Class C
Certificates, which Permitted Investments shall mature not later than the
Business Day immediately preceding the first Distribution Date that follows
the date of such investment (except that if such Permitted Investment is an
obligation of the institution that maintains the Credit Comeback Excess
Account, then such Permitted Investment shall mature not later than such
Distribution Date) and shall not be sold or disposed of prior to maturity. All
such Permitted Investments shall be made in the name of the Trustee, for the
benefit of the Certificateholders. In the absence of such written direction,
all funds in the Credit Comeback Excess Account shall be invested by the
Trustee in The Bank of New York cash reserves. Any net investment earnings on
amounts in the Credit Comeback Excess Account with respect to Loan Group 1,
Loan Group 2 and Loan Group 3 shall be payable pro rata to the Holders of the
Class C Certificates in accordance with their Percentage Interests. Any losses
incurred in the Credit Comeback Excess Account in respect of any such
investments shall be charged against amounts on deposit in the Credit Comeback
Excess Account (or such investments) immediately as realized.

            The Trustee shall not be liable for the amount of any loss
incurred in respect of any investment or lack of investment of funds held in
the Credit Comeback Excess Account and made in accordance with this Section
4.08. The Credit Comeback Excess Account shall not constitute an asset of any
REMIC created hereunder. The Class C Certificates shall evidence ownership of
the Credit Comeback Excess Account for federal tax purposes.

            Section 4.09 Swap Trust and Swap Account.
                         ----------------------------

            On the Closing Date, there is hereby established a separate trust
(the "Swap Trust"), the assets of which shall consist of the Trustee's rights
and obligations under the Swap Contract Administration Agreement. The Swap
Trust shall be maintained by the Swap Trustee, who initially, shall be the
Trustee. The Swap Trustee shall hold the assets of the Swap Trust in trust for
the benefit of the Holders of the Interest-Bearing Certificates and the Swap
Counterparty. No later than the Closing Date, the Swap Trustee shall establish
and maintain a separate, segregated trust account to be held in the Swap
Trust, titled, "Swap Account, The Bank of New York, as Swap Trustee, in trust
for the Swap Counterparty and the registered holders of CWABS, Inc.,
Asset-Backed Certificates, Series 2006-3." Such account shall be an Eligible

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Account and funds on deposit therein shall be held separate and apart from,
and shall not be commingled with, any other moneys, including, without
limitation, other moneys of the Trustee held pursuant to this Agreement.
Amounts therein shall be held uninvested. Funds on deposit in the Swap Account
shall be distributed in the amounts and in the order of priority described
under Section 4.04(d). For federal income tax purposes, the Swap Trust,
including the Swap Account, shall be owned by the Class C Certificates.

            On each Distribution Date, the Trustee shall make a deposit to the
Swap Account pursuant to Section 4.04(a)(i), and to the extent that the amount
of such deposit is insufficient to pay any Net Swap Payment and/or Swap
Termination Payment (other than a Swap Termination Payment due to a Swap
Counterparty Trigger Event) due to the Swap Counterparty with respect to such
Distribution Date, the Trustee shall withdraw, out of amounts on deposit in
the Distribution Account in respect of the Principal Remittance Amount for
Loan Group 1, Loan Group 2 and Loan Group 3, pro rata on the basis of those
respective Principal Remittance Amounts, such additional amount as is
necessary to cover the remaining portion of any such Net Swap Payment and/or
Swap Termination Payment (other than a Swap Termination Payment due to a Swap
Counterparty Trigger Event) due to the Swap Counterparty with respect to such
Distribution Date.

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                                  ARTICLE V.
                               THE CERTIFICATES

            Section 5.01 The Certificates.
                         -----------------

            The Certificates shall be substantially in the forms attached
hereto as Exhibits A-1 through A-15, Exhibit B, Exhibit C, Exhibit D and
Exhibit E. The Certificates shall be issuable in registered form, in the
minimum dollar denominations, integral dollar multiples in excess thereof and
aggregate dollar denominations as set forth in the following table:

                                         Integral Multiples       Original
                           Minimum          in Excess of         Certificate
       Class            Denomination           Minimum        Principal Balance
-------------------------------------------------------------------------------
        1-A                $20,000             $1,000           $508,785,000
       2-A-1               $20,000             $1,000           $254,254,000
       2-A-2               $20,000             $1,000           $208,354,000
       2-A-3               $20,000             $1,000            $66,782,000
       3-A-1               $20,000             $1,000            $64,603,000
       3-A-2               $20,000             $1,000             $6,722,000
        M-1                $20,000             $1,000            $51,100,000
        M-2                $20,000             $1,000            $46,900,000
        M-3                $20,000             $1,000            $28,000,000
        M-4                $20,000             $1,000            $24,500,000
        M-5                $20,000             $1,000            $25,200,000
        M-6                $20,000             $1,000            $22,400,000
        M-7                $20,000             $1,000            $21,700,000
        M-8                $20,000             $1,000            $18,200,000
         B                 $20,000             $1,000            $14,000,000
        A-R               $99.95(1)              N/A                $100
         C                   N/A                 N/A                 N/A
         P                   N/A                 N/A                $100

(1)   The Tax Matters Person Certificate may be issued in a denomination of
      $0.05.

            The Certificates shall be executed by manual or facsimile
signature on behalf of the Trustee by an authorized 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 Trustee, 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
authentication and delivery. 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 set
forth as attached hereto executed by the Trustee by manual signature, and such
certificate of 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. On the Closing Date, the Trustee shall
authenticate the Certificates to be issued at the written direction of the
Depositor, or any affiliate thereof.

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<PAGE>

            The Depositor shall provide, or cause to be provided, to the
Trustee on a continuous basis, an adequate inventory of Certificates to
facilitate transfers.

            Section 5.02 Certificate Register; Registration of Transfer and
                         Exchange of Certificates.
                         -------------------------

            (a) The Trustee shall maintain a Certificate Register for the
Trust Fund in which, subject to the provisions of subsections (b) and (c)
below and to such reasonable regulations as it may prescribe, the Trustee
shall provide for the registration of Certificates and of Transfers and
exchanges of Certificates as herein provided. Upon surrender for registration
of Transfer of any Certificate, the Trustee shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new
Certificates of the same Class and of like aggregate Percentage Interest.

            At the option of a Certificateholder, Certificates may be
exchanged for other Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest upon surrender of the
Certificates to be exchanged at the office or agency of the Trustee. Whenever
any Certificates are so surrendered for exchange, the Trustee shall execute,
authenticate, and deliver the Certificates that the Certificateholder making
the exchange is entitled to receive. Every Certificate presented or
surrendered for registration of Transfer or exchange shall be accompanied by a
written instrument of Transfer in form satisfactory to the Trustee duly
executed by the Holder thereof or his attorney duly authorized in writing.

            No service charge to the Certificateholders shall be made for any
registration of Transfer or exchange of Certificates, but 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 may be required.

            All Certificates surrendered for registration of Transfer or
exchange shall be canceled and subsequently destroyed by the Trustee in
accordance with the Trustee's customary procedures.

            (b) No Transfer of a Private Certificate shall be made unless such
Transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under the Securities Act and such state securities
laws. In the event that a transfer is to be made in reliance upon an exemption
from the Securities Act and such state securities laws, in order to assure
compliance with the Securities Act and such state securities laws, the
Certificateholder desiring to effect such Transfer and such
Certificateholder's prospective transferee shall (except in connection with
any transfer of a Private Certificate to an affiliate of the Depositor (either
directly or through a nominee) in connection with the initial issuance of the
Certificates) each certify to the Trustee in writing the facts surrounding the
Transfer in substantially the forms set forth in Exhibit J-2 and, in the case
of a Class A-R Certificate, Exhibit J-1 (the "Transferor Certificate") and (i)
deliver a letter in substantially the form of either Exhibit K (in the case of
the Class P and Class C Certificates only) (the "Investment Letter") or
Exhibit L (in the case of any Private Certificate) (the "Rule 144A Letter") or
(ii) there shall be delivered to the Trustee at the expense of the
Certificateholder desiring to effect such transfer an Opinion of Counsel that
such Transfer may

                                     127
<PAGE>

be made pursuant to an exemption from the Securities Act; provided, however,
that in the case of the delivery of an Investment Letter in connection with
the transfer of any Class C or Class P Certificate to a transferee that is
formed with the purpose of issuing notes backed by such Class C or Class P
Certificate, as the case may be, clause (b) and (c) of the form of Investment
Letter shall not be applicable and shall be deleted by such transferee. The
Depositor shall provide to any Holder of a Private Certificate and any
prospective transferee designated by any such Holder, information regarding
the related Certificates and the Mortgage Loans and such other information as
shall be necessary to satisfy the condition to eligibility set forth in Rule
144A(d)(4) for transfer of any such Certificate without registration thereof
under the Securities Act pursuant to the registration exemption provided by
Rule 144A. The Trustee, the Co-Trustee and the Master Servicer shall cooperate
with the Depositor in providing the Rule 144A information referenced in the
preceding sentence, including providing to the Depositor such information
regarding the Certificates, the Mortgage Loans and other matters regarding the
Trust Fund as the Depositor shall reasonably request to meet its obligation
under the preceding sentence. Each Holder of a Private Certificate desiring to
effect such Transfer shall, and does hereby agree to, indemnify the Trustee,
the Co-Trustee, the Depositor, the Trust Fund, each Seller, the Master
Servicer and the NIM Insurer 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 (other than a
transfer of an ERISA-Restricted Certificate to an affiliate of the Depositor
(either directly or through a nominee) in connection with the initial issuance
of the Certificates) shall be made unless the Trustee shall have received
either (i) a representation from the transferee of such Certificate acceptable
to and in form and substance satisfactory to the Trustee (in the event such
Certificate is a Private Certificate, such requirement is satisfied only by
the Trustee's receipt of a representation letter from the transferee
substantially in the form of Exhibit K or Exhibit L, or in the event such
Certificate is a Residual Certificate, such requirement is satisfied only by
the Trustee's receipt of a representation letter from the transferee
substantially in the form of Exhibit I), to the effect that (x) such
transferee is not a Plan, or (y) in the case of an ERISA-Restricted
Certificate that has been the subject of an ERISA-Qualifying Underwriting, a
representation that the transferee is an insurance company which is purchasing
such Certificate 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 Certificate satisfy the requirements for exemptive relief under Sections
I and III of PTCE 95-60 or (ii) in the case of any ERISA-Restricted
Certificate presented for registration in the name of an employee benefit plan
or arrangement subject to ERISA, or a plan or arrangement subject to Section
4975 of the Code (or comparable provisions of any subsequent enactments), or a
trustee of any such plan or arrangement or any other person acting on behalf
of any such plan or arrangement, an Opinion of Counsel satisfactory to the
Trustee, addressed to the Trustee and the Master Servicer, to the effect that
the purchase or holding of such ERISA-Restricted Certificate will not result
in a non-exempt prohibited transaction under ERISA or the Code and will not
subject the Trustee or the Master Servicer to any obligation in addition to
those expressly undertaken in this Agreement, which Opinion of Counsel shall
not be an expense of the Trustee, the Master Servicer, or the Trust Fund. For
purposes of the preceding sentence, one of such representations, as
appropriate, shall be deemed to have been made to the Trustee by the
transferee's acceptance of an ERISA-Restricted Certificate (or the acceptance
by a Certificate Owner of the beneficial interest in any such Class of
ERISA-Restricted Certificates) unless the

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<PAGE>

Trustee shall have received from the transferee an Opinion of Counsel as
described in clause (ii) or a representation letter acceptable in form and
substance to the Trustee. 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 Section 406 of ERISA or a plan
subject to Section 4975 of the Code without the delivery to the Trustee of an
Opinion of Counsel satisfactory to the Trustee meeting the requirements of
clause (i) of the first sentence of this paragraph as described above shall be
void and of no effect. The Trustee shall be under no liability to any Person
for any registration of transfer of any ERISA-Restricted Certificate that is
in fact not permitted by this Section 5.02(b) 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
Trustee, with respect to the transfer of such Classes of Certificates,
required delivery of such certificates and other documentation or evidence as
are expressly required by the terms of this Agreement and examined such
certificates and other documentation or evidence to determine compliance as to
form with the express requirements hereof. The Trustee shall be entitled, but
not obligated, to recover from any Holder of any ERISA-Restricted Certificate
that was in fact an employee benefit plan or arrangement subject to Section
406 of ERISA or a plan or arrangement subject to Section 4975 of the Code or a
Person acting on behalf of any such plan or arrangement at the time it became
a Holder or, at such subsequent time as it became such a plan or arrangement
or Person acting on behalf of such a plan or arrangement, all payments made on
such ERISA-Restricted Certificate at and after either such time. Any such
payments so recovered by the Trustee shall be paid and delivered by the
Trustee to the last preceding Holder of such Certificate that is not such a
plan or arrangement or Person acting on behalf of a plan or arrangement.

            No transfer of an Interest-Bearing Certificate (other than a
transfer of an Interest-Bearing Certificate to an affiliate of the Depositor
(either directly or through a nominee) in connection with the initial issuance
of the Certificates) shall be made unless the Trustee shall have received
either (i) a representation from the transferee of such Interest-Bearing
Certificate acceptable to and in form and substance satisfactory to the
Trustee to the effect that such transferee is not a Plan, or (ii) a
representation that the purchase and holding of the Interest-Bearing
Certificate satisfy the requirements for exemptive relief under PTCE 84-14,
PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or a similar exemption. In the
event that such a representation letter is not delivered, one of the foregoing
representations, as appropriate, shall be deemed to have been made by the
transferee's (including an initial acquiror's) acceptance of the
Interest-Bearing Certificate. In the event that such representation is
violated, such transfer or acquisition shall be void and of no effect.

            (c) Each Person who has or who acquires any Ownership Interest in
a Class A-R Certificate shall be deemed by the acceptance or acquisition of
such Ownership Interest to have agreed to be bound by the following
provisions, and the rights of each Person acquiring any Ownership Interest in
a Class A-R Certificate are expressly subject to the following provisions:

                (1) Each Person holding or acquiring any Ownership Interest in
      a Class A-R Certificate shall be a Permitted Transferee and shall
      promptly notify the Trustee of any change or impending change in its
      status as a Permitted Transferee.

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<PAGE>

                (2) Except in connection with (i) the registration of the Tax
      Matters Person Certificate in the name of the Trustee or (ii) any
      registration in the name of, or transfer of a Class A-R Certificate to,
      an affiliate of the Depositor (either directly or through a nominee) in
      connection with the initial issuance of the Certificates, no Ownership
      Interest in a Class A-R Certificate may be registered or transferred,
      and the Trustee shall not register the Transfer of any Class A-R
      Certificate, unless the Trustee shall have been furnished with an
      affidavit (a "Transfer Affidavit") of the initial owner or the proposed
      transferee in the form attached hereto as Exhibit I.

                (3) Each Person holding or acquiring any Ownership Interest in
      a Class A-R Certificate shall agree (A) to obtain a Transfer Affidavit
      from any other Person to whom such Person attempts to Transfer its
      Ownership Interest in a Class A-R Certificate, (B) to obtain a Transfer
      Affidavit from any Person for whom such Person is acting as nominee,
      trustee or agent in connection with any Transfer of a Class A-R
      Certificate and (C) not to Transfer its Ownership Interest in a Class
      A-R Certificate, or to cause the Transfer of an Ownership Interest in a
      Class A-R Certificate to any other Person, if it has actual knowledge
      that such Person is not a Permitted Transferee or that such Transfer
      Affidavit is false.

                (4) Any attempted or purported Transfer of any Ownership
      Interest in a Class A-R Certificate in violation of the provisions of
      this Section 5.02(c) shall be absolutely null and void and shall vest no
      rights in the purported Transferee. If any purported transferee shall
      become a Holder of a Class A-R Certificate in violation of the
      provisions of this Section 5.02(c), then the last preceding Permitted
      Transferee shall be restored to all rights as Holder thereof retroactive
      to the date of registration of Transfer of such Class A-R Certificate.
      The Trustee shall be under no liability to any Person for any
      registration of Transfer of a Class A-R Certificate that is in fact not
      permitted by Section 5.02(b) and this Section 5.02(c) 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 after receipt of the
      related Transfer Affidavit and Transferor Certificate. The Trustee shall
      be entitled but not obligated to recover from any Holder of a Class A-R
      Certificate that was in fact not a Permitted Transferee at the time it
      became a Holder or, at such subsequent time as it became other than a
      Permitted Transferee, all payments made on such Class A-R Certificate at
      and after either such time. Any such payments so recovered by the
      Trustee shall be paid and delivered by the Trustee to the last preceding
      Permitted Transferee of such Certificate.

                (5) The Master Servicer shall use its best efforts to make
      available, upon receipt of written request from the Trustee, all
      information necessary to compute any tax imposed under section 860E(e)
      of the Code as a result of a Transfer of an Ownership Interest in a
      Class A-R Certificate to any Holder who is not a Permitted Transferee.

            The restrictions on Transfers of a Class A-R Certificate set forth
in this Section 5.02(c) shall cease to apply (and the applicable portions of
the legend on a Class A-R Certificate may be deleted) with respect to
Transfers occurring after delivery to the Trustee of an Opinion of

                                     130
<PAGE>

Counsel, which Opinion of Counsel shall not be an expense of the Trustee, any
Seller or the Master Servicer, to the effect that the elimination of such
restrictions will not cause any REMIC formed hereunder to fail to qualify as a
REMIC at any time that the Certificates are outstanding or result in the
imposition of any tax on the Trust Fund, a Certificateholder or another
Person. Each Person holding or acquiring any Ownership Interest in a Class A-R
Certificate, by acceptance of its Ownership Interest, shall be deemed to
consent to any amendment of this Agreement that, based on an Opinion of
Counsel furnished to the Trustee, is reasonably necessary (a) to ensure that
the record ownership of, or any beneficial interest in, a Class A-R
Certificate is not transferred, directly or indirectly, to a Person that is
not a Permitted Transferee and (b) to provide for a means to compel the
Transfer of a Class A-R Certificate that is held by a Person that is not a
Permitted Transferee to a Holder that is a Permitted Transferee.

            (d) The preparation and delivery of all affidavits, certifications
and opinions referred to above in this Section 5.02 shall not be an expense of
the Trust Fund, the Trustee, the Depositor, any Seller or the Master Servicer.

            Section 5.03 Mutilated, Destroyed, Lost or Stolen Certificates.
                         --------------------------------------------------

            If (a) any mutilated Certificate is surrendered to the Trustee, or
the Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Certificate and of the ownership thereof and (b) there is
delivered to the Master Servicer and the Trustee 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 that such Certificate has been acquired by a bona fide
purchaser, the Trustee shall execute, authenticate and deliver, in exchange
for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a
new Certificate of like Class, tenor and Percentage Interest. In connection
with the issuance of any new Certificate under this Section 5.03, the Trustee
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) connected therewith.
Any replacement Certificate issued pursuant to this Section 5.03 shall
constitute complete and indefeasible evidence of ownership in the Trust Fund,
as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time. All Certificates surrendered to the
Trustee under the terms of this Section 5.03 shall be canceled and destroyed
by the Trustee in accordance with its standard procedures without liability on
its part.

            Section 5.04 Persons Deemed Owners.
                         ----------------------

            The Master Servicer, the Trustee, the NIM Insurer and any agent of
the Master Servicer, the Trustee or the NIM Insurer may treat the person in
whose name any Certificate is registered as the owner of such Certificate for
the purpose of receiving distributions as provided in this Agreement and for
all other purposes whatsoever, and none of the Master Servicer, the Trustee,
the NIM Insurer or any agent of the Master Servicer, the Trustee or the NIM
Insurer shall be affected by any notice to the contrary.

                                     131
<PAGE>

            Section 5.05 Access to List of Certificateholders' Names and
                         Addresses.
                         ----------

            If three or more Certificateholders or Certificate Owners (a)
request such information in writing from the Trustee, (b) state that such
Certificateholders or Certificate Owners desire to communicate with other
Certificateholders or Certificate Owners with respect to their rights under
this Agreement or under the Certificates and (c) provide a copy of the
communication that such Certificateholders or Certificate Owners propose to
transmit or if the Depositor or Master Servicer shall request such information
in writing from the Trustee, then the Trustee shall, within ten Business Days
after the receipt of such request, provide the Depositor, the Master Servicer
or such Certificateholders or Certificate Owners at such recipients' expense
the most recent list of the Certificateholders of the Trust Fund held by the
Trustee, if any. The Depositor and every Certificateholder or Certificate
Owner, by receiving and holding a Certificate, agree that the Trustee shall
not be held accountable by reason of the disclosure of any such information as
to the list of the Certificateholders hereunder, regardless of the source from
which such information was derived.

            Section 5.06 Book-Entry Certificates.
                         ------------------------

            The Book-Entry Certificates, upon original issuance, shall be
issued in the form of one typewritten Certificate (or more than one, if
required by the Depository) for each Class of such Certificates, to be
delivered to the Depository by or on behalf of the Depositor. Such
Certificates shall initially be registered on the Certificate Register in the
name of the Depository or its nominee, and no Certificate Owner of such
Certificates will receive a definitive certificate representing such
Certificate Owner's interest in such Certificates, except as provided in
Section 5.08. Unless and until definitive, fully registered Certificates
("Definitive Certificates") have been issued to the Certificate Owners of such
Certificates pursuant to Section 5.08:

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

            (b) the Depositor, the Sellers, the Master Servicer and the
Trustee may deal with the Depository and the Depository Participants for all
purposes (including the making of distributions) as the authorized
representative of the respective Certificate Owners of such Certificates;

            (c) registration of the Book-Entry Certificates may not be
transferred by the Trustee except to another Depository;

            (d) the rights of the respective Certificate Owners of such
Certificates shall be exercised only through the Depository and the Depository
Participants and shall be limited to those established by law and agreements
between the Owners of such Certificates and the Depository and/or the
Depository Participants. Pursuant to the Depository Agreement, unless and
until Definitive Certificates are issued pursuant to Section 5.08, the
Depository will make book-entry transfers among the Depository Participants
and receive and transmit distributions of principal and interest on the
related Certificates to such Depository Participants;

            (e) the Depository may collect its usual and customary fees,
charges and expenses from its Depository Participants;

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<PAGE>

            (f) the Trustee may rely and shall be fully protected in relying
upon information furnished by the Depository with respect to its Depository
Participants; and

            (g) to the extent the provisions of this Section conflict with any
other provisions of this Agreement, the provisions of this Section shall
control.

            For purposes of any provision of this Agreement requiring or
permitting actions with the consent of, or at the direction of,
Certificateholders evidencing a specified percentage of the aggregate unpaid
principal amount of any Class of Certificates, such direction or consent may
be given by Certificate Owners (acting through the Depository and the
Depository Participants) owning Book-Entry Certificates evidencing the
requisite percentage of principal amount of such Class of Certificates.

            Section 5.07 Notices to Depository.
                         ----------------------

            Whenever any notice or other communication is required to be given
to Certificateholders of the Class with respect to which Book-Entry
Certificates have been issued, unless and until Definitive Certificates shall
have been issued to the related Certificate Owners, the Trustee shall give all
such notices and communications to the Depository.

            Section 5.08 Definitive Certificates.
                         ------------------------

            If, after Book-Entry Certificates have been issued with respect to
any Certificates, (a) the Depositor advises the Trustee that the Depository is
no longer willing or able to discharge properly its responsibilities under the
Depository Agreement with respect to such Certificates and the Trustee or the
Depositor is unable to locate a qualified successor or (b) after the
occurrence and continuation of an Event of Default, Certificate Owners of such
Book-Entry Certificates having not less than 51% of the Voting Rights
evidenced by any Class of Book-Entry Certificates advise the Trustee and the
Depository in writing through the Depository Participants that the
continuation of a book-entry system with respect to Certificates of such Class
through the Depository (or its successor) is no longer in the best interests
of the Certificate Owners of such Class, then the Trustee shall notify all
Certificate Owners of such Certificates, through the Depository, of the
occurrence of any such event and of the availability of Definitive
Certificates to Certificate Owners of such Class requesting the same. The
Depositor shall provide the Trustee with an adequate inventory of Certificates
to facilitate the issuance and transfer of Definitive Certificates. Upon
surrender to the Trustee of any such Certificates by the Depository,
accompanied by registration instructions from the Depository for registration,
the Trustee shall authenticate and deliver such Definitive Certificates.
Neither the Depositor nor the Trustee shall be liable for any delay in
delivery of such instructions and each may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of such
Definitive Certificates, all references herein to obligations imposed upon or
to be performed by the Depository 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 such
Definitive Certificates as Certificateholders hereunder.

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<PAGE>

            Section 5.09 Maintenance of Office or Agency.

            The Trustee will maintain or cause to be maintained at its expense
an office or offices or agency or agencies in New York City where Certificates
may be surrendered for registration of transfer or exchange. The Trustee
initially designates its offices at 101 Barclay Street, New York, New York
10286, Attention: Corporate Trust MBS Administration, as offices for such
purposes. The Trustee will give prompt written notice to the
Certificateholders of any change in such location of any such office or
agency.

                                 ARTICLE VI.
              THE DEPOSITOR, THE MASTER SERVICER AND THE SELLERS

            Section 6.01 Respective Liabilities of the Depositor, the Master
                         Servicer and the Sellers.
                         -------------------------

            The Depositor, the Master Servicer and each Seller shall each be
liable in accordance herewith only to the extent of the obligations
specifically and respectively imposed upon and undertaken by them herein.

            Section 6.02 Merger or Consolidation of the Depositor, the Master
                         Servicer or the Sellers.
                         ------------------------

            The Depositor will keep in full effect its existence, rights and
franchises as a corporation under the laws of the United States or under the
laws of one of the states thereof and will each obtain and preserve its
qualification to do business as a foreign corporation in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, or any of the Mortgage Loans and to perform
its duties under this Agreement. The Master Servicer will keep in effect its
existence, rights and franchises as a limited partnership under the laws of
the United States or under the laws of one of the states thereof and will
obtain and preserve its qualification or registration to do business as a
foreign partnership in each jurisdiction in which such qualification or
registration is or shall be necessary to protect the validity and
enforceability of this Agreement or any of the Mortgage Loans and to perform
its duties under this Agreement.

            Any Person into which the Depositor, the Master Servicer or any
Seller may be merged or consolidated, or any Person resulting from any merger
or consolidation to which the Depositor, the Master Servicer or any Seller
shall be a party, or any person succeeding to the business of the Depositor,
the Master Servicer or any Seller, shall be the successor of the Depositor,
the Master Servicer or such Seller, 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 that
the successor or surviving Person to the Master Servicer shall be qualified to
service mortgage loans on behalf of Fannie Mae and Freddie Mac.

            As a condition to the effectiveness of any merger or
consolidation, at least 15 calendar days prior to the effective date of any
merger or consolidation of the Master Servicer, the Master Servicer shall
provide (x) written notice to the Depositor of any successor pursuant to this
Section and (y) in writing and in form and substance reasonably satisfactory
to the

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<PAGE>

Depositor, all information reasonably requested by the Depositor in order to
comply with its reporting obligation under Item 6.02 of Form 8-K with respect
to a replacement Master Servicer.

            Section 6.03 Limitation on Liability of the Depositor, the Sellers,
                         the Master Servicer, the NIM Insurer and Others.
                         ------------------------------------------------

            None of the Depositor, the Sellers, the NIM Insurer or the Master
Servicer or any of the directors, officers, employees or agents of the
Depositor, the Sellers, the NIM Insurer or the Master Servicer shall be under
any liability to the Trustee (except as provided in Section 8.05), 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 that this provision shall not protect the Depositor, the
Sellers, the Master Servicer or any such Person against any breach of
representations or warranties made by it herein or protect the Depositor, the
Sellers, the Master Servicer or any such Person from any liability that would
otherwise be imposed by reasons of willful misfeasance, bad faith or gross
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties hereunder. The Depositor, the Sellers, the NIM Insurer,
the Master Servicer and any director, officer, employee or agent of the
Depositor, the Sellers, the NIM Insurer or the Master 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
Depositor, the Sellers, the NIM Insurer, the Master Servicer and any director,
officer, employee or agent of the Depositor, the Sellers, the NIM Insurer or
the Master Servicer shall be indemnified by the Trust Fund and held harmless
against any loss, liability or expense incurred in connection with any audit,
controversy or judicial proceeding relating to a governmental taxing authority
or any legal action relating to this Agreement or the Certificates, other than
any loss, liability or expense related to any specific Mortgage Loan or
Mortgage Loans (except as any such loss, liability or expense shall be
otherwise reimbursable pursuant to this Agreement) and any loss, liability or
expense incurred by reason of willful misfeasance, bad faith or gross
negligence in the performance of duties hereunder or by reason of reckless
disregard of obligations and duties hereunder. None of the Depositor, the
Sellers, the NIM Insurer or the Master Servicer shall be under any obligation
to appear in, prosecute or defend any legal action that is not incidental to
its respective duties hereunder and that in its opinion may involve it in any
expense or liability; provided that any of the Depositor, the Sellers, the NIM
Insurer or the Master Servicer may, in its discretion undertake any such
action that it may deem necessary or desirable in respect of this Agreement
and the rights and duties of the parties hereto and interests of the Trustee
and 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 Depositor, the Sellers, the
NIM Insurer and the Master Servicer shall be entitled to be reimbursed
therefor out of the Certificate Account as provided by Section 3.08 hereof.

            Section 6.04 Limitation on Resignation of Master Servicer.

            The Master Servicer shall not resign from the obligations and
duties hereby imposed on it except (i) upon determination that its duties
hereunder are no longer permissible under applicable law or (ii) upon
appointment of a successor servicer that is reasonably acceptable to the
Trustee and the NIM Insurer and the written confirmation from each Rating
Agency (which confirmation shall be furnished to the Depositor, the Trustee
and the NIM

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Insurer) that such resignation will not cause such Rating Agency to reduce the
then-current rating of the Certificates. Any such determination pursuant to
clause (i) of the preceding sentence permitting the resignation of the Master
Servicer shall be evidenced by an Opinion of Counsel to such effect delivered
to the Trustee. No resignation of the Master Servicer shall become effective
until the Trustee shall have assumed the Master Servicer's responsibilities,
duties, liabilities (other than those liabilities arising prior to the
appointment of such successor) and obligations under this Agreement and the
Depositor shall have received the information described in the following
sentence. As a condition to the effectiveness of any such resignation, at
least 15 calendar days prior to the effective date of such resignation, the
Master Servicer shall provide (x) written notice to the Depositor of any
successor pursuant to this Section and (y) in writing and in form and
substance reasonably satisfactory to the Depositor, all information reasonably
requested by the Depositor in order to comply with its reporting obligation
under Item 6.02 of Form 8-K with respect to the resignation of the Master
Servicer.

            Section 6.05 Errors and Omissions Insurance; Fidelity Bonds.
                         -----------------------------------------------

            The Master Servicer shall, for so long as it acts as servicer
under this Agreement, obtain and maintain in force (a) a policy or policies of
insurance covering errors and omissions in the performance of its obligations
as servicer hereunder, and (b) a fidelity bond in respect of its officers,
employees and agents. Each such policy or policies and bond shall, together,
comply with the requirements from time to time of Fannie Mae and Freddie Mac
for persons performing servicing for mortgage loans purchased by Fannie Mae
and Freddie Mac. In the event that any such policy or bond ceases to be in
effect, the Master Servicer shall use its reasonable best efforts to obtain a
comparable replacement policy or bond from an insurer or issuer, meeting the
requirements set forth above as of the date of such replacement.

            The Master Servicer shall provide the Trustee and the NIM Insurer
(upon such party's reasonable request) with copies of any such insurance
policies and fidelity bond. The Master Servicer shall be deemed to have
complied with this provision if an Affiliate of the Master Servicer has such
errors and omissions and fidelity bond coverage and, by the terms of such
insurance policy or fidelity bond, the coverage afforded thereunder extends to
the Master Servicer.

                                 ARTICLE VII.
                    DEFAULT; TERMINATION OF MASTER SERVICER

            Section 7.01 Events of Default.
                         ------------------

            "Event of Default," wherever used herein, means any one of the
following events:

                (1) any failure by the Master Servicer to deposit in the
      Certificate Account or the Distribution Account or remit to the Trustee
      any payment (excluding a payment required to be made under Section 4.01
      hereof) required to be made under the terms of this Agreement, which
      failure shall continue unremedied for five calendar days and, with
      respect to a payment required to be made under Section 4.01(b) or (c)
      hereof, for one Business Day, after the date on which written notice of
      such failure shall have been given to the Master Servicer by the
      Trustee, the NIM Insurer or the Depositor, or to

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<PAGE>

      the Trustee, the NIM Insurer and the Master Servicer by the Holders of
      Certificates evidencing not less than 25% of the Voting Rights; or

                (2) any failure by the Master Servicer to observe or perform
      in any material respect any other of the covenants or agreements on the
      part of the Master Servicer contained in this Agreement (except with
      respect to a failure related to a Limited Exchange Act Reporting
      Obligation) or any representation or warranty shall prove to be untrue,
      which failure or breach shall continue unremedied for a period of 60
      days after the date on which written notice of such failure shall have
      been given to the Master Servicer by the Trustee, the NIM Insurer or the
      Depositor, or to the Trustee by the Holders of Certificates evidencing
      not less than 25% of the Voting Rights; provided, that the sixty-day
      cure period shall not apply to the initial delivery of the Mortgage File
      for Delay Delivery Mortgage Loans or the failure to repurchase or
      substitute in lieu thereof; or

                (3) a decree or order of a court or agency or supervisory
      authority having jurisdiction in the premises for the appointment of a
      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 consecutive days;
      or

                (4) the Master Servicer shall consent to the appointment of a
      receiver or liquidator in any insolvency, readjustment of debt,
      marshalling of assets and liabilities or similar proceedings of or
      relating to the Master Servicer or all or substantially all of the
      property of the Master Servicer; or

                (5) 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, or commence a voluntary case under, any applicable
      insolvency or reorganization statute, make an assignment for the benefit
      of its creditors, or voluntarily suspend payment of its obligations; or

                (6) the Master Servicer shall fail to reimburse in full the
      Trustee not later than 6:00 p.m. (New York time) on the Business Day
      following the related Distribution Date for any Advance made by the
      Trustee pursuant to Section 4.01(d) together with accrued and unpaid
      interest.

            If an Event of Default shall occur, then, and in each and every
such case, so long as such Event of Default shall not have been remedied, the
Trustee shall, but only at the direction of either the NIM Insurer or the
Holders of Certificates evidencing not less than 25% of the Voting Rights, by
notice in writing to the Master Servicer (with a copy to each Rating Agency
and the Depositor), terminate all of the rights and obligations of the Master
Servicer under this Agreement and in and to the Mortgage Loans and the
proceeds thereof, other than its rights as a Certificateholder hereunder. In
addition, if during the period that the Depositor is required to file Exchange
Act Reports with respect to the Trust Fund, the Master Servicer shall fail to
observe or perform any of the obligations that constitute a Limited Exchange
Act Reporting Obligation or

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the obligations set forth in Section 3.17(a) or Section 11.07(a)(1) and (2),
and such failure continues for the lesser of 10 calendar days or such period
in which the applicable Exchange Act Report can be filed timely (without
taking into account any extensions), so long as such failure shall not have
been remedied, the Trustee shall, but only at the direction of the Depositor,
terminate all of the rights and obligations of the Master Servicer under this
Agreement and in and to the Mortgage Loans and the proceeds thereof, other
than its rights as a Certificateholder hereunder. The Depositor shall not be
entitled to terminate the rights and obligations of the Master Servicer if a
failure of the Master Servicer to identify a Subcontractor "participating in
the servicing function" within the meaning of Item 1122 of Regulation AB was
attributable solely to the role or functions of such Subcontractor with
respect to mortgage loans other than the Mortgage Loans.

            On or after the receipt by the Master Servicer of such written
notice, all authority and power of the Master Servicer hereunder, whether with
respect to the Mortgage Loans or otherwise, shall pass to and be vested in the
Trustee. The Trustee shall thereupon make any Advance described in Section
4.01 hereof subject to Section 3.04 hereof. The Trustee is hereby authorized
and empowered to execute and deliver, on behalf of the 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. Unless expressly provided in such written notice, no
such termination shall affect any obligation of the Master Servicer to pay
amounts owed pursuant to Article VIII. The Master Servicer agrees to cooperate
with the Trustee in effecting the termination of the Master Servicer's
responsibilities and rights hereunder, including, without limitation, the
transfer to the Trustee of all cash amounts which shall at the time be
credited to the Certificate Account, or thereafter be received with respect to
the Mortgage Loans. The Trustee shall promptly notify the Rating Agencies and
the Depositor of the occurrence of an Event of Default.

            Notwithstanding any termination of the activities of a Master
Servicer hereunder, such Master Servicer shall be entitled to receive, out of
any late collection of a Scheduled Payment on a Mortgage Loan that was due
prior to the notice terminating such Master Servicer's rights and obligations
as Master Servicer hereunder and received after such notice, that portion
thereof to which such Master Servicer would have been entitled pursuant to
Sections 3.08(a)(i) through (viii), and any other amounts payable to such
Master Servicer hereunder the entitlement to which arose prior to the
termination of its activities hereunder.

            If the Master Servicer is terminated, the Trustee shall provide
the Depositor in writing and in form and substance reasonably satisfactory to
the Depositor, all information reasonably requested by the Depositor in order
to comply with its reporting obligation under Item 6.02 of Form 8-K with
respect to a successor master servicer in the event the Trustee should succeed
to the duties of the Master Servicer as set forth herein.

            Section 7.02 Trustee to Act; Appointment of Successor.
                         -----------------------------------------

            On and after the time the Master Servicer receives a notice of
termination pursuant to Section 7.01 hereof, the Trustee shall, to the extent
provided in Section 3.04, be the

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<PAGE>

successor to the Master 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 Master Servicer by the terms and provisions hereof and
applicable law including the obligation to make advances pursuant to Section
4.01. As compensation therefor, the Trustee shall be entitled to all fees,
costs and expenses relating to the Mortgage Loans that the Master Servicer
would have been entitled to if the Master Servicer had continued to act
hereunder. Notwithstanding the foregoing, if the Trustee has become the
successor to the Master Servicer in accordance with Section 7.01 hereof, the
Trustee may, if it shall be unwilling to so act, or shall, if it is prohibited
by applicable law from making Advances pursuant to Section 4.01 hereof or if
it is otherwise unable to so act, (i) appoint any established mortgage loan
servicing institution reasonably acceptable to the NIM Insurer (as evidenced
by the prior written consent of the NIM Insurer), or (ii) if it is unable for
60 days to appoint a successor servicer reasonably acceptable to the NIM
Insurer, petition a court of competent jurisdiction to appoint any established
mortgage loan servicing institution, the appointment of which does not
adversely affect the then-current rating of the Certificates and the NIM
Insurer guaranteed notes (without giving any effect to any policy or guaranty
provided by the NIM Insurer) by each Rating Agency as the successor to the
Master Servicer hereunder in the assumption of all or any part of the
responsibilities, duties or liabilities of the Master Servicer hereunder. Any
successor Master Servicer shall be an institution that is a Fannie Mae and
Freddie Mac approved seller/servicer in good standing, that has been approved
by the Mortgage Insurer if required, that has a net worth of at least
$15,000,000 and that is willing to service the Mortgage Loans and executes and
delivers to the Depositor and the Trustee an agreement accepting such
delegation and assignment, that contains an assumption by such Person of the
rights, powers, duties, responsibilities, obligations and liabilities of the
Master Servicer (other than liabilities and indemnities of the Master Servicer
under Section 6.03 hereof incurred prior to termination of the Master Servicer
under Section 7.01), with like effect as if originally named as a party to
this Agreement; and provided further that each Rating Agency acknowledges that
its rating of the Certificates in effect immediately prior to such assignment
and delegation will not be qualified or reduced as a result of such assignment
and delegation. No appointment of a successor to the Master Servicer hereunder
shall be effective until (i) the Trustee shall have consented thereto, (ii)
written notice of such proposed appointment shall have been provided by the
Trustee to each Certificateholder and (iii) at least 15 calendar days prior to
the effective date of such appointment, (x) the Trustee shall provide written
notice to the Depositor of such successor pursuant to this Section 7.02 and
(y) such successor Master Servicer shall provide to the Depositor in writing
and in form and substance reasonably satisfactory to the Depositor, all
information reasonably requested by the Depositor in order to comply with its
reporting obligation under Item 6.02 of Form 8-K with respect to a replacement
master servicer. The Trustee shall not resign as servicer until a successor
servicer has been appointed and has accepted such appointment. Pending
appointment of a successor to the Master Servicer hereunder, the Trustee,
unless the Trustee is prohibited by law from so acting, shall, subject to
Section 3.04 hereof, act in such capacity as herein above provided. In
connection with such appointment and assumption, the Trustee may make such
arrangements for the compensation of such successor out of payments on
Mortgage Loans as it and such successor shall agree; provided that no such
compensation shall be in excess of that permitted the Master Servicer
hereunder. The Trustee and such successor shall take such action, consistent
with this Agreement, as shall be necessary to effectuate any such succession.
Neither the Trustee nor any

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<PAGE>

other successor 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 or any failure to perform, or any delay in performing, any
duties or responsibilities hereunder, in either case caused by the failure of
the Master Servicer to deliver or provide, or any delay in delivering or
providing, any cash, information, documents or records to it.

            Any successor to the Master Servicer as servicer shall give notice
to the NIM Insurer and the Mortgagors of such change of servicer and shall,
during the term of its service as servicer maintain in force the policy or
policies that the Master Servicer is required to maintain pursuant to Section
6.05.

            In connection with the termination or resignation of the Master
Servicer hereunder, either (i) the successor Master Servicer, including the
Trustee if the Trustee is acting as successor Master Servicer, shall represent
and warrant that it is a member of MERS in good standing and shall agree to
comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with
MERS, or (ii) the predecessor Master Servicer shall cooperate with the
successor Master Servicer in causing MERS to execute and deliver an assignment
of Mortgage in recordable form to transfer the Mortgage from MERS to the
Trustee and to execute and deliver such other notices, documents and other
instruments as may be necessary or desirable to effect a transfer of such
Mortgage Loan or servicing of such Mortgage Loan on the MERS(R) System to the
successor Master Servicer. The predecessor Master Servicer shall file or cause
to be filed any such assignment in the appropriate recording office. The
successor Master Servicer shall cause such assignment to be delivered to the
Co-Trustee promptly upon receipt of the original with evidence of recording
thereon or a copy certified by the public recording office in which such
assignment was recorded.

            Section 7.03 Notification to Certificateholders.
                         -----------------------------------

            (a) Upon any termination of or appointment of a successor to the
Master Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders and to each Rating Agency.

            (b) Within 60 days after the occurrence of any Event of Default,
the Trustee shall transmit by mail to all Certificateholders notice of each
such Event of Default hereunder known to the Trustee, unless such Event of
Default shall have been cured or waived.

                                ARTICLE VIII.
                   CONCERNING THE TRUSTEE AND THE CO-TRUSTEE

            Section 8.01 Duties of Trustee.
                         ------------------

            The Trustee, prior to the occurrence of an Event of Default and
after the curing of all Events of Default that may have occurred, shall
undertake to perform such duties and only such duties as are specifically set
forth in this Agreement. In case an Event of Default has occurred and remains
uncured, 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

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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 (or the Co-Trustee, to the extent provided in this
Agreement) that 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, to the extent provided in this
Agreement. If any such instrument is found not to conform to the requirements
of this Agreement in a material manner, the Trustee shall take action as it
deems appropriate to have the instrument corrected.

            No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own grossly negligent action, its own gross
negligent failure to act or its own misconduct, its grossly negligent failure
to perform its obligations in compliance with this Agreement, or any liability
that would be imposed by reason of its willful misfeasance or bad faith;
provided that:

                (1) prior to the occurrence of an Event of Default, and after
      the curing of all such Events of Default that 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,
      individually or as Trustee, 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 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 that it reasonably
      believed in good faith to be genuine and to have been duly executed by
      the proper authorities respecting any matters arising hereunder;

                (2) the Trustee shall not be liable, individually or as
      Trustee, for an error of judgment made in good faith by a Responsible
      Officer or Responsible Officers of the Trustee, unless the Trustee was
      grossly negligent or acted in bad faith or with willful misfeasance;

                (3) the Trustee shall not be liable, individually or as
      Trustee, with respect to any action taken, suffered or omitted to be
      taken by it in good faith in accordance with the direction of the
      Holders of each Class of Certificates evidencing not less than 25% of
      the Voting Rights of such Class relating to 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; and

                (4) without in any way limiting the provisions of this Section
      8.01 or Section 8.02 hereof, the Trustee shall be entitled to rely
      conclusively on the information delivered to it by the Master Servicer
      in a Trustee Advance Notice in determining whether or not it is required
      to make an Advance under Section 4.01(d), shall have no responsibility
      to ascertain or confirm any information contained in any Trustee Advance
      Notice, and shall have no obligation to make any Advance under Section
      4.01(d) in the

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<PAGE>

      absence of a Trustee Advance Notice or actual knowledge by a Responsible
      Officer that (A) a required Advance was not made and (B) such required
      Advance was not a Nonrecoverable Advance.

            Section 8.02 Certain Matters Affecting the Trustee.

            (a) Except as otherwise provided in Section 8.01:

                (1) 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 believed by it to be genuine
      and to have been signed or presented by the proper party or parties;

                (2) the Trustee may consult with counsel and any 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 Opinion of Counsel;

                (3) the Trustee shall not be liable, individually or as
      Trustee, 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;

                (4) prior to the occurrence of an Event of Default hereunder
      and after the curing of all Events of Default that 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 document, unless requested in writing so to do by the NIM
      Insurer or the Holders of each Class of Certificates evidencing not less
      than 25% of the Voting Rights of such Class; 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 NIM Insurer or such Certificateholders,
      the Trustee may require reasonable indemnity against such expense, or
      liability from the NIM Insurer or such Certificateholders as a condition
      to taking any such action;

                (5) the Trustee may execute any of the trusts or powers
      hereunder or perform any duties hereunder either directly or by or
      through agents, accountants or attorneys;

                (6) the Trustee shall not be required to expend its own funds
      or otherwise incur any financial liability in the performance of any of
      its duties hereunder if it shall have reasonable grounds for believing
      that repayment of such funds or adequate indemnity against such
      liability is not assured to it;

                (7) the Trustee shall not be liable, individually or as
      Trustee, for any loss on any investment of funds pursuant to this
      Agreement (other than as issuer of the investment security);

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<PAGE>

                (8) the Trustee shall not be deemed to have knowledge of an
      Event of Default until a Responsible Officer of the Trustee shall have
      received written notice thereof; and

                (9) the Trustee shall be under no obligation to exercise any
      of the trusts or powers vested in it by this Agreement or to make any
      investigation of matters arising hereunder or to institute, conduct or
      defend any litigation hereunder or in relation hereto at the request,
      order or direction of the NIM Insurer or any of the Certificateholders,
      pursuant to the provisions of this Agreement, unless the NIM Insurer or
      such Certificateholders, as applicable, shall have offered to the
      Trustee reasonable security or indemnity against the costs, expenses and
      liabilities that may be incurred therein or thereby.

            (b) All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by the Trustee
without the possession of any of the Certificates, or the production thereof
at the trial or other proceeding relating thereto, and any such suit, action
or proceeding instituted by the Trustee shall be brought in its name for the
benefit of all the Holders of the Certificates, subject to the provisions of
this Agreement.

            The Depositor hereby directs the Trustee to execute, deliver and
perform its obligations under the Swap Contract Administration Agreement (in
its capacity as Swap Trustee). The Sellers, the Depositor, the Master Servicer
and the Holders of the Interest-Bearing Certificates by their acceptance of
such Certificates acknowledge and agree that the Trustee shall execute,
deliver and perform its obligations under the Swap Contract Administration
Agreement and shall do so solely in its capacity as Swap Trustee, as the case
may be, and not in its individual capacity. Every provision of this Agreement
relating to the conduct or affecting the liability of or affording protection
to the Trustee shall apply to the Trustee's execution of the Swap Contract
Administration Agreement in its capacity as Swap Trustee, and the performance
of its duties and satisfaction of its obligations thereunder.

            Section 8.03 Trustee Not Liable for Mortgage Loans.
                         --------------------------------------

            The recitals contained herein shall be taken as the statements of
the Depositor or the Master Servicer, as the case may be, and the Trustee
assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Agreement or of any
Mortgage Loan or related document or of MERS or the MERS(R) System other than
with respect to the Trustee's execution and authentication of the
Certificates. The Trustee shall not be accountable for the use or application
by the Depositor or the Master Servicer of any funds paid to the Depositor or
the Master Servicer in respect of the Mortgage Loans or deposited in or
withdrawn from the Certificate Account by the Depositor or the Master
Servicer.

            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 the Trustee.

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            Section 8.05 Master Servicer to Pay Trustee's Fees and Expenses.
                         ---------------------------------------------------

            The Master Servicer covenants and agrees to pay or reimburse the
Trustee, upon its request, for all reasonable expenses, disbursements and
advances incurred or made by the Trustee on behalf of the Trust Fund in
accordance with any of the provisions of this Agreement (including, without
limitation: (A) the reasonable compensation and the expenses and disbursements
of its counsel, but only for representation of the Trustee acting in its
capacity as Trustee hereunder and (B) to the extent that the Trustee must
engage persons not regularly in its employ to perform acts or services on
behalf of the Trust Fund, which acts or services are not in the ordinary
course of the duties of a trustee, paying agent or certificate registrar, in
the absence of a breach or default by any party hereto, the reasonable
compensation, expenses and disbursements of such persons, except any such
expense, disbursement or advance as may arise from its negligence, bad faith
or willful misconduct). The Trustee and any director, officer, employee or
agent of the Trustee shall be indemnified by the Master Servicer and held
harmless against any loss, liability or expense (i) incurred in connection
with any legal action relating to this Agreement or the Certificates, or in
connection with the performance of any of the Trustee's duties hereunder,
other than any loss, liability or expense incurred by reason of willful
misfeasance, bad faith or negligence in the performance of any of the
Trustee's duties hereunder or by reason of reckless disregard of the Trustee's
obligations and duties hereunder or (ii) resulting from any error in any tax
or information return prepared by the Master Servicer. Such indemnity shall
survive the termination of this Agreement or the resignation or removal of the
Trustee hereunder.

            Section 8.06 Eligibility Requirements for Trustee.
                         -------------------------------------

            The Trustee hereunder shall, at all times, be a corporation or
association organized and doing business under the laws of a state or the
United States of America, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least $50,000,000,
subject to supervision or examination by federal or state authority and with a
credit rating that would not cause any of the Rating Agencies to reduce their
respective ratings of any Class of Certificates below the ratings issued on
the Closing Date (or having provided such security from time to time as is
sufficient to avoid such reduction). If such corporation or 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 8.06 the combined capital and surplus of such
corporation or 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 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 hereof. The corporation
or national banking association serving as Trustee may have normal banking and
trust relationships with the Depositor, the Sellers and the Master Servicer
and their respective affiliates; provided that such corporation cannot be an
affiliate of the Master Servicer other than the Trustee in its role as
successor to the Master Servicer.

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            Section 8.07 Resignation and Removal of Trustee.
                         -----------------------------------

            The Trustee may at any time resign and be discharged from the
trusts hereby created by (1) giving written notice of resignation to the
Depositor and the Master Servicer and by mailing notice of resignation by
first class mail, postage prepaid, to the Certificateholders at their
addresses appearing on the Certificate Register and each Rating Agency, not
less than 60 days before the date specified in such notice when, subject to
Section 8.08, such resignation is to take effect, and (2) acceptance of
appointment by a successor trustee in accordance with Section 8.08 and meeting
the qualifications set forth in Section 8.06. If no successor trustee shall
have been so appointed and have accepted appointment within 30 days after the
giving of such notice or resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor trustee.

            As a condition to the effectiveness of any such resignation, at
least 15 calendar days prior to the effective date of such resignation, the
Trustee shall provide (x) written notice to the Depositor of any successor
pursuant to this Section and (y) in writing and in form and substance
reasonably satisfactory to the Depositor, all information reasonably requested
by the Depositor in order to comply with its reporting obligation under Item
6.02 of Form 8-K with respect to the resignation of the Trustee.

            If at any time (i) the Trustee shall cease to be eligible in
accordance with the provisions of Section 8.06 hereof and shall fail to resign
after written request thereto by the NIM Insurer or the Depositor, (ii) the
Trustee shall become incapable of acting, or shall be adjudged as 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, (iii)(A) a tax is imposed with respect to the Trust Fund by any
state in which the Trustee or the Trust Fund is located, (B) the imposition of
such tax would be avoided by the appointment of a different trustee and (C)
the Trustee fails to indemnify the Trust Fund against such tax, or (iv) during
the period which the Depositor is required to file Exchange Act Reports with
respect to the Trust Fund, the Trustee fails to comply with its obligations
under the last sentence of Section 7.01, the preceding paragraph, Section 8.09
or Article XI and such failure is not remedied within the lesser of 10
calendar days or such period in which the applicable Exchange Act Report can
be filed timely (without taking into account any extensions), then, in the
case of clauses (i) through (iii), the Depositor, the NIM Insurer or the
Master Servicer, or in the case of clause (iv), the Depositor, may remove the
Trustee and appoint a successor trustee, reasonably acceptable to the NIM
Insurer, by written instrument, in triplicate, one copy of which instrument
shall be delivered to the Trustee, one copy of which shall be delivered to the
Master Servicer and one copy of which shall be delivered to the successor
trustee.

            The Holders evidencing at least 51% of the Voting Rights of each
Class of Certificates may at any time remove the Trustee and appoint a
successor trustee by written instrument or instruments, in triplicate, signed
by such Holders or their attorneys-in-fact duly authorized, one complete set
of which instruments shall be delivered by the successor Trustee to the Master
Servicer one complete set to the Trustee so removed, one complete set to the
successor so appointed and one complete set to the Depositor, together with a
written description

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of the basis for such removal. Notice of any removal of the Trustee shall be
given to each Rating Agency by the successor Trustee.

            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
become effective upon acceptance of appointment by the successor trustee as
provided in Section 8.08 hereof.

            Section 8.08 Successor Trustee.
                         ------------------

            Any successor trustee appointed as provided in Section 8.07 hereof
shall execute, acknowledge and deliver to the Depositor, its predecessor
trustee and the Master Servicer 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 the like effect as
if originally named as trustee herein. In addition, if the Swap Contract is
still outstanding, the Person appointed as successor trustee shall execute,
acknowledge and deliver to the predecessor trustee, CHL and the Master
Servicer an instrument accepting the appointment as successor Swap Contract
Administrator under the Swap Contract Administration Agreement.

            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 hereof, is reasonably
acceptable to the NIM Insurer, its appointment shall not adversely affect the
then-current ratings of the Certificates and has provided to the Depositor in
writing and in form and substance reasonably satisfactory to the Depositor,
all information reasonably requested by the Depositor in order to comply with
its reporting obligation under Item 6.02 of Form 8-K with respect to a
replacement Trustee.

            Upon acceptance of appointment by a successor trustee as provided
in this Section 8.08, the Depositor shall mail notice of the succession of
such trustee hereunder to the NIM Insurer and all Holders of Certificates. If
the Depositor fails to mail such notice within ten days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be mailed at the expense of the Depositor.

            Section 8.09 Merger or Consolidation of Trustee.
                         -----------------------------------

            Any corporation into which the Trustee may be merged or converted
or with which it may be consolidated or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation succeeding to substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided that such corporation shall be eligible under the provisions of
Section 8.06 hereof without the execution or filing of any paper or further
act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

            As a condition to the effectiveness of any merger or
consolidation, at least 15 calendar days prior to the effective date of any
merger or consolidation of the Trustee, the Trustee shall provide (x) written
notice to the Depositor of any successor pursuant to this Section and (y) in
writing and in form and substance reasonably satisfactory to the Depositor,
all

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information reasonably requested by the Depositor in order to comply with its
reporting obligation under Item 6.02 of Form 8-K with respect to a replacement
Trustee.

            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 Fund or property securing any Mortgage Note may at
the time be located, the Master Servicer 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 and reasonably acceptable to the NIM
Insurer 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 Fund,
and to vest in such Person or Persons, in such capacity and for the benefit of
the Certificateholders, such title to the Trust Fund or any part thereof,
whichever is applicable, and, subject to the other provisions of this Section
8.10, such powers, duties, obligations, rights and trusts as the Master
Servicer and the Trustee may consider necessary or desirable. If the Master
Servicer shall not have joined in such appointment, or the NIM Insurer shall
not have approved such appointment, within 15 days after receipt by it of a
request to do so, or in the case an Event of Default shall have occurred and
be continuing, the Trustee shall have the power to make such appointment. No
co-trustee or 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.

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

                (1) All rights, powers, duties and obligations conferred or
      imposed upon the Trustee, except for the obligation of the Trustee under
      this Agreement to advance funds on behalf of the Master Servicer, 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 Master 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 Fund 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;

                (2) No trustee hereunder shall be held personally liable by
      reason of any act or omission of any other trustee hereunder; and

                (3) The Trustee may at any time accept the resignation of 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

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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 Master Servicer and the Depositor.

            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.

            Section 8.11 Tax Matters.
                         ------------

            It is intended that the Trust Fund shall constitute, and that the
affairs of the Trust Fund shall be conducted so that each REMIC created
pursuant to the Preliminary Statement qualifies as, a "real estate mortgage
investment conduit" as defined in and in accordance with the REMIC Provisions.
In furtherance of such intention, the Trustee covenants and agrees that it
shall act as agent (and the Trustee is hereby appointed to act as agent) on
behalf of the Trust Fund and that in such capacity it shall: (a) prepare and
file, or cause to be prepared and filed, in a timely manner, a U.S. Real
Estate Mortgage Investment Conduit Income Tax Returns (Form 1066 or any
successor form adopted by the Internal Revenue Service) and prepare and file
or cause to be prepared and filed with the Internal Revenue Service and
applicable state or local tax authorities income tax or information returns
for each taxable year with respect to each REMIC created hereunder containing
such information and at the times and in the manner as may be required by the
Code or state or local tax laws, regulations, or rules, and furnish or cause
to be furnished to Certificateholders the schedules, statements or information
at such times and in such manner as may be required thereby; (b) within thirty
days of the Closing Date, furnish or cause to be furnished to the Internal
Revenue Service, on Forms 8811 or as otherwise may be required by the Code,
the name, title, address, and telephone number of the person that the Holders
of the Certificates may contact for tax information relating thereto, together
with such additional information as may be required by such Form, and update
such information at the time or times in the manner required by the Code for
the Trust Fund; (c) make or cause to be made elections, on behalf of each
REMIC created hereunder to be treated as a REMIC on the federal tax return of
each such REMIC for its first taxable year (and, if necessary, under
applicable state law); (d) prepare and forward, or cause to be prepared and
forwarded, to the Certificateholders and to the Internal Revenue Service and,
if necessary, state tax authorities, all information returns and reports as
and when required to be provided to them in accordance with the REMIC
Provisions, including without limitation, the calculation of any original
issue discount using the Prepayment Assumption; (e) provide information
necessary for the computation of tax imposed on the transfer of a Class A-R
Certificate to a Person that is not a Permitted Transferee, or an agent
(including a broker, nominee or other middleman) of a Non-Permitted
Transferee, or a pass-through entity in which a Non-Permitted Transferee is
the record holder of an interest (the

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reasonable cost of computing and furnishing such information may be charged to
the Person liable for such tax); (f) to the extent that they are under its
control conduct the affairs of the Trust Fund at all times that any
Certificates are outstanding so as to maintain the status of each REMIC
created hereunder as a REMIC under the REMIC Provisions; (g) not knowingly or
intentionally take any action or omit to take any action that would cause the
termination of the REMIC status of any REMIC created hereunder; (h) pay, from
the sources specified in the penultimate paragraph of this Section 8.11, the
amount of any federal, state and local taxes, including prohibited transaction
taxes as described below, imposed on any REMIC created hereunder prior to the
termination of the Trust Fund when and as the same shall be due and payable
(but such obligation shall not prevent the Trustee or any other appropriate
Person from contesting any such tax in appropriate proceedings and shall not
prevent the Trustee from withholding payment of such tax, if permitted by law,
pending the outcome of such proceedings); (i) sign or cause to be signed
federal, state or local income tax or information returns; (j) maintain
records relating to each REMIC created hereunder, including but not limited to
the income, expenses, assets and liabilities of each such REMIC, and the fair
market value and adjusted basis of the Trust Fund property determined at such
intervals as may be required by the Code, as may be necessary to prepare the
foregoing returns, schedules, statements or information; and (k) as and when
necessary and appropriate, represent the Trust Fund in any administrative or
judicial proceedings relating to an examination or audit by any governmental
taxing authority, request an administrative adjustment as to any taxable year
of any REMIC created hereunder, enter into settlement agreements with any
governmental taxing agency, extend any statute of limitations relating to any
tax item of the Trust Fund, and otherwise act on behalf of any REMIC created
hereunder in relation to any tax matter involving any such REMIC.

            In order to enable the Trustee to perform its duties as set forth
herein, the Depositor shall provide, or cause to be provided, to the Trustee
within ten days after the Closing Date all information or data that the
Trustee requests in writing and determines to be relevant for tax purposes to
the valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows
of the Certificates and the Mortgage Loans (and, to the extent not part of the
aforementioned, the information referred to in paragraphs (1), (2), (3) and
(4) of Section 4.05(d)). Thereafter, the Depositor shall provide to the
Trustee promptly upon written request therefor, any such additional
information or data that the Trustee may, from time to time, request in order
to enable the Trustee to perform its duties as set forth herein. The Depositor
hereby indemnifies the Trustee for any losses, liabilities, damages, claims or
expenses of the Trustee arising from any errors or miscalculations of the
Trustee that result from any failure of the Depositor to provide, or to cause
to be provided, accurate information or data to the Trustee on a timely basis.

            In the event that any tax is imposed on "prohibited transactions"
of the Trust Fund as defined in section 860F(a)(2) of the Code, on the "net
income from foreclosure property" of the Trust Fund as defined in section
860G(c) of the Code, on any contribution to the Trust Fund after the startup
day pursuant to section 860G(d) of the Code, or any other tax is imposed,
including, without limitation, any federal, state or local tax or minimum tax
imposed upon the Trust Fund pursuant to sections 23153 and 24872 of the
California Revenue and Taxation Code if not paid as otherwise provided for
herein, such tax shall be paid by (i) the Trustee, if any such other tax
arises out of or results from a breach by the Trustee of any of its
obligations under this Agreement, (ii) (x) the Master Servicer, in the case of
any such minimum tax, and (y) any party

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hereto (other than the Trustee) to the extent any such other tax arises out of
or results from a breach by such other party of any of its obligations under
this Agreement or (iii) in all other cases, or in the event that any liable
party here fails to honor its obligations under the preceding clauses (i) or
(ii), any such tax will be paid first with amounts otherwise to be distributed
to the Class A-R Certificateholders, and second with amounts otherwise to be
distributed to all other Certificateholders in the same manner as if such tax
were a Realized Loss that occurred ratably within each Loan Group.
Notwithstanding anything to the contrary contained herein, to the extent that
such tax is payable by the Class A-R Certificates, the Trustee is hereby
authorized to retain on any Distribution Date, from the Holders of the Class
A-R Certificates (and, if necessary, second, from the Holders of the all other
Certificates in the priority specified in the preceding sentence), funds
otherwise distributable to such Holders in an amount sufficient to pay such
tax. The Trustee agrees to promptly notify in writing the party liable for any
such tax of the amount thereof and the due date for the payment thereof.

            The Trustee shall treat the Carryover Reserve Fund and the Swap
Trust, including the Swap Account, as outside reserve funds within the meaning
of Treasury Regulation 1.860G-2(h), neither of which is an asset of any REMIC
created hereunder. The Carryover Reserve Fund shall be treated as owned by the
Class C Certificateholders and the Swap Trust, including the Swap Account
shall be treated as owned by the Class C Certificateholders. The rights of the
Holders of each Class of Certificates (other than the Class P and Class A-R
Certificates) to receive payments from, and the deemed obligations of such
Holders to make payments to, the Carryover Reserve Fund or the Swap Trust,
including the Swap Account, shall be treated as rights and obligations with
respect to notional principal contracts written by the Holders of the Class C
Certificates in respect of any Net Rate Carryover distributed pursuant to
Sections 4.04(c)(4), and (ii) the Swap Counterparty in respect of any Net Rate
Carryover funded by the Swap Contract and in respect of any residual payments
from such Swap Contract received by the Class C Certificates. Thus, the
Certificates (other than the Class P and Class A-R Certificates), shall be
treated as representing ownership of Master REMIC regular interests coupled
with contractual rights and obligations within the meaning of Treasury
Regulation 1.860G-2(i). For purposes of determining the issue price of the
various Master REMIC regular interests, the Trustee shall assume that the Swap
Contract has a value of $3,275,000.

            The Trustee shall treat the entitlement to Credit Comeback Excess
Amounts as owned by the Holders of the Class C Certificates and not as an
asset of, or interest in, any REMIC created hereunder. Further, the Trustee
shall treat any payments of Credit Comeback Excess Amounts to Persons other
than the Holders of the Class C Certificates as payments made by the Holders
of the Class C Certificates pursuant to a credit enhancement contract under
Treasury Regulation 1.860G-2(c). The Trustee shall also treat any amount
payable to a Class C Certificate with respect to the R-3-X Interest as
deposited into the Carryover Reserve Fund. In addition, to the extent the
interest otherwise payable to a Certificateholder is reduced for amounts
payable with respect to the Swap Contract, the Trustee, for federal income tax
purposes, shall treat the amount of such reduction as first payable to the
Certificateholder as interest and as then payable by the Certificateholder
with respect to a notional principal contract. To the extent the amount
payable with respect to the Swap Contract exceeds the aggregate of the
reductions described in the immediate sentence, the Trustee, for federal
income tax purposes, shall treat such excess as Realized Losses from Mortgage
Loans and to the extent such Realized Losses (if they had occurred) would be
allocated to a Certificateholder, the Trustee shall treat such amount

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<PAGE>

as first payable to the Certificateholder as principal and as then payable by
the Certificateholder with respect to a notional principal contract.

            Section 8.12 Co-Trustee.
                         -----------

            (a) The Co-Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments
furnished to the Co-Trustee that 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, to the extent
required by this Agreement. If any such instrument is found not to conform to
the requirements of this Agreement in a material manner, the Co-Trustee shall
take action as it deems appropriate to have the instrument corrected. In
addition, the Co-Trustee shall act as the insured under the Mortgage Insurance
Policy and hereby directs the Master Servicer, on behalf of the Co-Trustee, to
take all actions appropriate or required of the Co-Trustee under the Mortgage
Insurance Policy, other than the payment of the Mortgage Insurance Premium and
obtaining the approval of the Mortgage Insurer with respect to the appointment
of a successor servicer.

            (b) No provision of this Agreement shall be construed to relieve
the Co-Trustee from liability for its own grossly negligent action, its own
gross negligent failure to act or its own misconduct, its grossly negligent
failure to perform its obligations in compliance with this Agreement, or any
liability that would be imposed by reason of its willful misfeasance or bad
faith; provided that:

                (1) the duties and obligations of the Co-Trustee shall be
      determined solely by the express provisions of this Agreement with the
      exception of Section 8.10, the Co-Trustee shall not be liable,
      individually or as Co-Trustee, 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 Co-Trustee and the Co-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
      Co-Trustee and conforming to the requirements of this Agreement that it
      reasonably believed in good faith to be genuine and to have been duly
      executed by the proper authorities respecting any matters arising
      hereunder; and

                (2) the Co-Trustee shall not be liable, individually or as
      Co-Trustee, for an error of judgment made in good faith by a Responsible
      Officer or Responsible Officers of the Trustee, unless the Co-Trustee
      was grossly negligent or acted in bad faith or with willful misfeasance.

            (c) Except as otherwise provided in paragraph (b) above:

                (1) the Co-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 believed by it to be genuine
      and to have been signed or presented by the proper party or parties;

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<PAGE>

                (2) the Co-Trustee may consult with counsel and any 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 Opinion of Counsel;

                (3) the Co-Trustee shall not be liable, individually or as
      Co-Trustee, 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;

                (4) the Co-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 document;

                (5) the Co-Trustee may execute any of the trusts or powers
      hereunder or perform any duties hereunder either directly or by or
      through agents, accountants or attorneys; and

                (6) the Co-Trustee shall not be required to expend its own
      funds or otherwise incur any financial liability in the performance of
      any of its duties hereunder if it shall have reasonable grounds for
      believing that repayment of such funds or adequate indemnity against
      such liability is not assured to it.

            (d) The recitals contained herein shall be taken as the statements
of the Depositor or the Master Servicer, as the case may be, and the
Co-Trustee assumes no responsibility for their correctness. The Co-Trustee
makes no representations as to the validity or sufficiency of this Agreement
or of any Mortgage Loan or related document or of MERS or the MERS(R) System.
The Co-Trustee shall not be accountable for the use or application by the
Depositor or the Master Servicer of any funds paid to the Depositor or the
Master Servicer in respect of the Mortgage Loans or deposited in or withdrawn
from the Certificate Account by the Depositor or the Master Servicer.

            (e) The Co-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 the Co-Trustee.

            (f) The Master Servicer covenants and agrees (i) to pay to the
Co-Trustee from time to time, and the Co-Trustee shall be entitled to, such
compensation as shall be agreed in writing by the Master Servicer and the
Co-Trustee (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 Co-Trustee and
(ii) to pay or reimburse the Co-Trustee, upon its request, for all reasonable
expenses, disbursements and advances incurred or made by the Co-Trustee on
behalf of the Trust Fund in accordance with any of the provisions of this
Agreement (including, without limitation: (A) the reasonable compensation and
the expenses and disbursements of its counsel, but only for representation of
the Co-Trustee acting in its capacity as Co-Trustee hereunder and (B) to the
extent that the Co-Trustee must engage

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persons not regularly in its employ to perform acts or services on behalf of
the Trust Fund, which acts or services are not in the ordinary course of the
duties of a trustee, paying agent or certificate registrar, in the absence of
a breach or default by any party hereto, the reasonable compensation, expenses
and disbursements of such persons, except any such expense, disbursement or
advance as may arise from its negligence, bad faith or willful misconduct).
The Co-Trustee and any director, officer, employee or agent of the Co-Trustee
shall be indemnified by the Master Servicer and held harmless against any
loss, liability or expense (i) incurred in connection with any legal action
relating to this Agreement or the Certificates, or in connection with the
performance of any of the Co-Trustee's duties hereunder, other than any loss,
liability or expense incurred by reason of willful misfeasance, bad faith or
negligence in the performance of any of the Co-Trustee's duties hereunder or
by reason of reckless disregard of the Co-Trustee's obligations and duties
hereunder and (ii) resulting from any error in any tax or information return
prepared by the Master Servicer. Such indemnity shall survive the termination
of this Agreement or the resignation or removal of the Co-Trustee hereunder.

            (g) The Co-Trustee hereunder shall, at all times, be a corporation
or association organized and doing business under the laws of a state or the
United States of America, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least $50,000,000,
subject to supervision or examination by federal or state authority and with a
credit rating that would not cause any of the Rating Agencies to reduce their
respective ratings of any Class of Certificates below the ratings issued on
the Closing Date (or having provided such security from time to time as is
sufficient to avoid such reduction). If such corporation or 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 8.12 the combined capital and surplus of such
corporation or 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 the Co-Trustee shall cease to be eligible in accordance with
the provisions of this Section 8.12, the Co-Trustee shall resign immediately
in the manner and with the effect specified in paragraph (h) below. The
corporation or national banking association serving as Co-Trustee may have
normal banking and trust relationships with the Depositor, the Sellers and the
Master Servicer and their respective affiliates; provided that such
corporation cannot be an affiliate of the Master Servicer other than the
Trustee in its role as successor to the Master Servicer.

            (h) The Co-Trustee may at any time resign and be discharged from
the trusts hereby created by giving 30 days prior written notice of
resignation to the Trustee, the Depositor and the Master Servicer. Upon such
resignation the Trustee (x) may appoint a successor Co-Trustee meeting the
requirements in paragraph (g) above and acceptable to the Master Servicer and
the NIM Insurer (in their sole discretion), so long as such Co-Trustee
executes and delivers to the other parties hereto an instrument agreeing to be
bound by the provisions of this Agreement or (y) may if permitted by the
Master Servicer (in its sole discretion) assume the rights and duties of the
resigning Co-Trustee so long as the Trustee executes and delivers an
instrument to that effect.

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            Section 8.13 Access to Records of the Trustee.
                         ---------------------------------

            The Trustee and the Co-Trustee shall afford the Sellers, the
Depositor, the Master Servicer, the NIM Insurer and each Certificate Owner
upon reasonable notice during normal business hours access to all records
maintained by the Trustee or Co-Trustee in respect of its duties under this
Agreement and access to officers of the Trustee responsible for performing its
duties. Upon request, the Trustee or Co-Trustee shall furnish the Depositor,
the Master Servicer, the NIM Insurer and any requesting Certificate Owner with
its most recent financial statements. The Trustee shall cooperate fully with
the Sellers, the Master Servicer, the Depositor, the NIM Insurer and the
Certificate Owner for review and copying any books, documents, or records
requested with respect to the Trustee's and Co-Trustee's respective duties
under this Agreement. The Sellers, the Depositor, the Master Servicer and the
Certificate Owner shall not have any responsibility or liability for any
action for failure to act by the Trustee or Co-Trustee and are not obligated
to supervise the performance of the Trustee under this Agreement or otherwise.

            Section 8.14 Suits for Enforcement.
                         ----------------------

            If an Event of Default or other material default by the Master
Servicer or the Depositor under this Agreement occurs and is continuing, at
the direction of the Certificateholders holding not less than 51% of the
Voting Rights or the NIM Insurer, the Trustee shall proceed to protect and
enforce its rights and the rights of the Certificateholders or the NIM Insurer
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, the NIM Insurer and the Certificateholders.

                                 ARTICLE IX.
                                  TERMINATION

            Section 9.01 Termination upon Liquidation or Repurchase of all
                         Mortgage Loans.
                         ---------------

            Subject to Section 9.03, the Trust Fund shall terminate and the
obligations and responsibilities of the Depositor, the Master Servicer, the
Sellers, the Trustee and the Co-Trustee created hereby shall terminate upon
the earlier of (a) the purchase by the Master Servicer or NIM Insurer (the
party exercising such purchase option, the "Terminator") of all of the
Mortgage Loans (and REO Properties) remaining in the Trust Fund at the price
equal to the sum of (i) 100% of the Stated Principal Balance of each Mortgage
Loan in the Trust Fund (other than in respect of an REO Property), (ii)
accrued interest thereon at the applicable Mortgage Rate (or, if such
repurchase is effected by the Master Servicer, at the applicable Net Mortgage
Rate), (iii) the appraised value of any REO Property in the Trust Fund (up to
the Stated Principal Balance of the related Mortgage Loan), such appraisal to
be conducted by an appraiser mutually agreed upon by the Terminator and the
Trustee, (iv) any remaining unpaid costs and damages incurred by the Trust
Fund that arises out of an actual violation of any predatory or abusive
lending law or regulation and (v) if the Terminator is the NIM Insurer, any
unreimbursed Servicing Advances,

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<PAGE>

and the principal portion of any unreimbursed Advances, made on the Mortgage
Loans prior to the exercise of such repurchase and (b) the later of (i) the
maturity or other liquidation (or any Advance with respect thereto) of the
last Mortgage Loan remaining in the Trust Fund and the disposition of all REO
Property and (ii) the distribution to related Certificateholders of all
amounts required to be distributed to them pursuant to this Agreement, as
applicable. In no event shall the trusts created hereby continue beyond the
earlier of (i) 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 and (ii) the
Latest Possible Maturity Date.

            The right to purchase all Mortgage Loans and REO Properties by the
Terminator pursuant to clause (a) of the immediately preceding paragraph shall
be conditioned upon (1) the Stated Principal Balance of the Mortgage Loans, at
the time of any such repurchase, aggregating ten percent (10%) or less of the
sum of the aggregate Cut-off Date Principal Balance of the Initial Mortgage
Loans and the Pre-Funded Amount and (2) unless the NIM Insurer otherwise
consents, the purchase price for such Mortgage Loans and REO Properties shall
result in a final distribution on any NIM Insurer guaranteed notes that is
sufficient (x) to pay such notes in full and (y) to pay any amounts due and
payable to the NIM Insurer pursuant to the indenture related to such notes.

            The NIM Insurer's right to purchase all Mortgage Loans and REO
Properties shall be further conditioned upon the written consent of the Master
Servicer.

            The Swap Trust shall terminate on the earlier of (i) the Swap
Contract Termination Date, (ii) the reduction of the aggregate Certificate
Principal Balance of the Interest-Bearing Certificates to zero and (iii) the
termination of this Agreement.

            Section 9.02 Final Distribution on the Certificates.
                         ---------------------------------------

            If on any Determination Date, (i) the Master Servicer determines
that there are no Outstanding Mortgage Loans and no other funds or assets in
the Trust Fund other than the funds in the Certificate Account, the Master
Servicer shall direct the Trustee to send a final distribution notice promptly
to each related Certificateholder or (ii) the Trustee determines that a Class
of Certificates shall be retired after a final distribution on such Class, the
Trustee shall notify the related Certificateholders within five (5) Business
Days after such Determination Date that the final distribution in retirement
of such Class of Certificates is scheduled to be made on the immediately
following Distribution Date. Any final distribution made pursuant to the
immediately preceding sentence will be made only upon presentation and
surrender of the related Certificates at the Corporate Trust Office of the
Trustee. If the Terminator elects to terminate pursuant to clause (a) of
Section 9.01, at least 20 days prior to the date notice is to be mailed to the
affected Certificateholders, such electing party shall notify the Depositor
and the Trustee of the date such electing party intends to terminate and of
the applicable repurchase price of the related Mortgage Loans and REO
Properties.

            Notice of any termination, specifying the Distribution Date on
which related Certificateholders may surrender their Certificates for payment
of the final distribution and cancellation, shall be given promptly by the
Trustee by letter to related Certificateholders mailed

                                     155
<PAGE>

not earlier than the 10th day and no later than the 15th day of the month
immediately preceding the month of such final distribution. Any such notice
shall specify (a) the Distribution Date upon which final distribution on
related Certificates will be made upon presentation and surrender of such
Certificates at the office therein designated, (b) the amount of such final
distribution, (c) the location of the office or agency at which such
presentation and surrender must be made, and (d) that the Record Date
otherwise applicable to such Distribution Date is not applicable,
distributions being made only upon presentation and surrender of such
Certificates at the office therein specified. The Terminator will give such
notice to each Rating Agency at the time such notice is given to the affected
Certificateholders.

            In the event such notice is given, the Master Servicer shall cause
all funds in the Certificate Account to be remitted to the Trustee for deposit
in the Distribution Account on the Business Day prior to the applicable
Distribution Date in an amount equal to the final distribution in respect of
the Certificates. Upon such final deposit and the receipt by the Trustee of a
Request for File Release therefor, the Co-Trustee shall promptly release to
the Master Servicer the Mortgage Files for the Mortgage Loans.

            Upon presentation and surrender of the Certificates, the Trustee
shall cause to be distributed to Certificateholders of each affected Class the
amounts allocable to such Certificates held in the Distribution Account (and,
if applicable, the Carryover Reserve Fund) in the order and priority set forth
in Section 4.04 hereof on the final Distribution Date and in proportion to
their respective Percentage Interests. Notwithstanding the reduction of the
Certificate Principal Balance of any Class of Certificates to zero, such Class
will be outstanding hereunder (solely for the purpose of receiving
distributions (if any) to which it may be entitled pursuant to the terms of
this Agreement and not for any other purpose) until the termination of the
respective obligations and responsibilities of the Depositor, each Seller, the
Master Servicer and the Trustee hereunder in accordance with Article IX.

            In the event that any affected Certificateholders shall not
surrender related Certificates for cancellation within six months after the
date specified in the above mentioned written notice, the Trustee shall give a
second written notice to the remaining Certificateholders to surrender their
related Certificates for cancellation and receive the final distribution with
respect thereto. If within six months after the second notice all the
applicable Certificates shall not have been surrendered for cancellation, the
Trustee may take appropriate steps, or may appoint an agent to take
appropriate steps, to contact the remaining Certificateholders concerning
surrender of their Certificates, and the cost thereof shall be paid out of the
funds and other assets that remain a part of the Trust Fund. If within one
year after the second notice all related Certificates shall not have been
surrendered for cancellation, the Class A-R Certificates shall be entitled to
all unclaimed funds and other assets that remain subject hereto.

            Section 9.03 Additional Termination Requirements.
                         ------------------------------------

            (a) In the event the Terminator exercises its purchase option, the
Trust Fund shall be terminated in accordance with the following additional
requirements, unless the Trustee has been supplied with an Opinion of Counsel,
at the expense of the Terminator, to the effect that the failure of the Trust
Fund to comply with the requirements of this Section 9.03 will not (i) result
in the imposition of taxes on "prohibited transactions" of a REMIC, or (ii)
cause any

                                     156
<PAGE>

REMIC created hereunder to fail to qualify as a REMIC at any time
that any Certificates are outstanding:

                (1) The Master Servicer shall establish a 90-day liquidation
period and notify the Trustee thereof, which shall in turn specify the first
day of such period in a statement attached to the Trust Fund's final Tax
Return pursuant to Treasury Regulation Section 1.860F-1. The Master Servicer
shall prepare a plan of complete liquidation and shall otherwise satisfy all
the requirements of a qualified liquidation under Section 860F of the Code and
any regulations thereunder, as evidenced by an Opinion of Counsel delivered to
the Trustee and the Depositor obtained at the expense of the Terminator;

                (2) During such 90-day liquidation period, and at or prior to
the time of making the final payment on the Certificates, the Master Servicer
as agent of the Trustee shall sell all of the assets of the Trust Fund to the
Terminator for cash; and

                (3) 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, to the Class A-R Certificateholders all cash on hand
(other than cash retained to meet claims) related to such Class of
Certificates, and the Trust Fund shall terminate at that time.

            (b) By their acceptance of the Certificates, the Holders thereof
hereby authorize the Master Servicer to specify the 90-day liquidation period
for the Trust Fund, which authorization shall be binding upon all successor
Certificateholders. The Trustee shall attach a statement to the final federal
income tax return for each of any REMIC created hereunder stating that
pursuant to Treasury Regulation Section 1.860F-1, the first day of the 90-day
liquidation period for each the REMIC was the date on which the Trustee sold
the assets of the Trust Fund to the Terminator.

            (c) The Trustee as agent for each REMIC created hereunder hereby
agrees to adopt and sign such a plan of complete liquidation upon the written
request of the Master Servicer, and the receipt of the Opinion of Counsel
referred to in Section 9.03(a)(1), and together with the Holders of the Class
A-R Certificates agree to take such other action in connection therewith as
may be reasonably requested by the Terminator.

                                  ARTICLE X.

                           MISCELLANEOUS PROVISIONS

            Section 10.01 Amendment.
                          ----------

            This Agreement may be amended from time to time by the Depositor,
the Master Servicer, the Sellers, the Co-Trustee and the Trustee with the
consent of the NIM Insurer, without the consent of any of the
Certificateholders (i) to cure any ambiguity, (ii) to correct or supplement
any provisions herein, (iii) to conform this Agreement to the Prospectus
Supplement or the Prospectus, (iv) to modify, alter, amend, add to or rescind
any of the terms or provisions contained in this Agreement to comply with any
rules or regulations promulgated by the Securities and Exchange Commission
from time to time, or (v) to make such other provisions with respect to
matters or questions arising under this Agreement, as shall not be
inconsistent

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<PAGE>

with any other provisions herein if such action shall not, as evidenced by an
Opinion of Counsel, adversely affect in any material respect the interests of
any Certificateholder; provided that any such amendment shall be deemed not to
adversely affect in any material respect the interests of the
Certificateholders and no such Opinion of Counsel shall be required if the
Person requesting such amendment obtains a letter from each Rating Agency
stating that such amendment would not result in the downgrading or withdrawal
of the respective ratings then assigned to the Certificates, it being
understood and agreed that any such letter in and of itself will not represent
a determination as to the materiality of any such amendment and will represent
a determination only as to the credit issues affecting any such rating. Any
amendment described above made solely to conform this Agreement to the
Prospectus or the Prospectus Supplement shall be deemed not to adversely
affect in any material respect the interests of the Certificateholders.
Notwithstanding the foregoing, no amendment that significantly changes the
permitted activities of the trust created by this Agreement may be made
without the consent of Certificateholders representing not less than 51% of
the Voting Rights of each Class of Certificates affected by such amendment.
Each party to this Agreement hereby agrees that it will cooperate with each
other party in amending this Agreement pursuant to clause (iv) above.

            The Trustee, the Co-Trustee, the Depositor, the Master Servicer
and the Sellers with the consent of the NIM Insurer may also at any time and
from time to time amend this Agreement, without the consent of the
Certificateholders, to modify, eliminate or add to any of its provisions to
such extent as shall be necessary or appropriate to maintain the qualification
of the Trust Fund as a REMIC under the Code or to avoid or minimize the risk
of the imposition of any tax on the Trust Fund pursuant to the Code that would
be a claim against the Trust Fund at any time prior to the final redemption of
the Certificates, provided that the Trustee has been provided an Opinion of
Counsel, which opinion shall be an expense of the party requesting such
opinion but in any case shall not be an expense of the Trustee, to the effect
that such action is necessary or appropriate to maintain such qualification or
to avoid or minimize the risk of the imposition of such a tax.

            This Agreement may also be amended from time to time by the
Depositor, the Master Servicer, the Sellers, the Co-Trustee and the Trustee
with the consent of the NIM Insurer and the Holders of each Class of
Certificates affected thereby evidencing not less than 51% of the Voting
Rights of such Class 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
that no such amendment shall (i) reduce in any manner the amount of, or delay
the timing of, payments required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Certificates in
a manner other than as described in (i), without the consent of the Holders of
Certificates of such Class evidencing 66% or more of the Voting Rights of such
Class, or (iii) reduce the aforesaid percentages of Certificates the Holders
of which are required to consent to any such amendment without the consent of
the Holders of all such Certificates then outstanding.

            Notwithstanding any contrary provision of this Agreement, no
amendment shall adversely affect in any material respect the Swap Counterparty
without at least ten Business Days' prior notice to the Swap Counterparty and
without the prior written consent of the Swap

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<PAGE>

Counterparty, which consent shall not be unreasonably withheld. CHL shall
provide the Swap Counterparty with prior written notice of any proposed
material amendment of this Agreement.

            Notwithstanding any contrary provision of this Agreement, the
Trustee and the NIM Insurer shall not consent to any amendment to this
Agreement unless each shall have first received an Opinion of Counsel
satisfactory to the Trustee and the NIM Insurer, which opinion shall be an
expense of the party requesting such amendment but in any case shall not be an
expense of the Trustee or the NIM Insurer, to the effect that such amendment
will not cause the imposition of any tax on the Trust Fund or the
Certificateholders or cause any REMIC formed hereunder to fail to qualify as a
REMIC at any time that any Certificates are outstanding.

            Promptly after the execution of any amendment to this Agreement,
the Trustee shall furnish written notification of the substance of such
amendment to the Swap Counterparty, to each Certificateholder (if the consent
of Certificateholders is required) and each Rating Agency.

            It shall not be necessary for the consent of Certificateholders
under this Section 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 Certificateholders shall be subject
to such reasonable regulations as the Trustee may prescribe.

            Nothing in this Agreement shall require the Trustee to enter into
an amendment without receiving an Opinion of Counsel, reasonably satisfactory
to the Trustee and the NIM Insurer that (i) such amendment is permitted and is
not prohibited by this Agreement and that all requirements for amending this
Agreement have been complied with; and (ii) either (A) the amendment does not
adversely affect in any material respect the interests of any
Certificateholder or (B) the conclusion set forth in the immediately preceding
clause (A) is not required to be reached pursuant to this Section 10.01.

            Section 10.02 Recordation of Agreement; Counterparts.
                          ---------------------------------------

            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 Master Servicer at its
expense.

            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 constitute but one
and the same instrument.

            Section 10.03 Governing Law.
                          --------------

            THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE
AND TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE

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<PAGE>

PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

            Section 10.04 Intention of Parties.
                          ---------------------

            (a) It is the express intent of the parties hereto that the
conveyance of the Mortgage Notes, Mortgages, assignments of Mortgages, title
insurance policies and any modifications, extensions and/or assumption
agreements and private mortgage insurance policies relating to the Mortgage
Loans by the Depositor to the Trustee be, and be construed as, an absolute
sale thereof to the Trustee. It is, further, not the intention of the parties
that such conveyance be deemed a pledge thereof by the Depositor to the
Trustee. However, in the event that, notwithstanding the intent of the
parties, such assets are held to be the property of the Depositor, or if for
any other reason this Agreement or any Subsequent Transfer Agreement is held
or deemed to create a security interest in such assets, then (i) this
Agreement shall be deemed to be a security agreement (within the meaning of
the Uniform Commercial Code of the State of New York) with respect to all such
assets and security interests and (ii) the conveyance provided for in this
Agreement and any Subsequent Transfer Agreement shall be deemed to be an
assignment and a grant pursuant to the terms of this Agreement by the
Depositor to the Trustee, for the benefit of the Certificateholders and the
Swap Counterparty, of a security interest in all of the assets that constitute
the Trust Fund, whether now owned or hereafter acquired.

            The Depositor for the benefit of the Certificateholders, the NIM
Insurer and the Swap Counterparty shall, to the extent consistent with this
Agreement, take such actions as may be necessary to ensure that, if this
Agreement were deemed to create a security interest in the assets of the Trust
Fund, such security interest would be deemed to be a perfected security
interest of first priority under applicable law and will be maintained as such
throughout the term of the Agreement. The Depositor shall arrange for filing
any Uniform Commercial Code continuation statements in connection with any
security interest granted or assigned to the Trustee for the benefit of the
Certificateholders and the Swap Counterparty.

            (b) The Depositor hereby represents that:

                  (i) This Agreement creates a valid and continuing security
            interest (as defined in the Uniform Commercial Code as enacted in
            the State of New York (the "NY UCC")) in the Mortgage Notes in
            favor of the Trustee, which security interest is prior to all
            other liens, and is enforceable as such as against creditors of
            and purchasers from the Depositor.

                  (ii) The Mortgage Notes constitute "instruments" within the
            meaning of the NY UCC.

                  (iii) Immediately prior to the assignment of each Mortgage
            Loan to the Trustee, the Depositor owns and has good and
            marketable title to such Mortgage Loan free and clear of any lien,
            claim or encumbrance of any Person.

                  (iv) The Depositor has received all consents and approvals
            required by the terms of the Mortgage Loans to the sale of the
            Mortgage Loans hereunder to the Trustee.

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<PAGE>

                  (v) All original executed copies of each Mortgage Note that
            are required to be delivered to the Co-Trustee pursuant to Section
            2.01 have been delivered to the Co-Trustee.

                  (vi) Other than the security interest granted to the Trustee
            pursuant to this Agreement, the Depositor has not pledged,
            assigned, sold, granted a security interest in, or otherwise
            conveyed any of the Mortgage Loans. The Depositor has not
            authorized the filing of and is not aware of any financing
            statements against the Depositor that include a description of
            collateral covering the Mortgage Loans other than any financing
            statement relating to the security interest granted to the Trustee
            hereunder or that has been terminated. The Depositor is not aware
            of any judgment or tax lien filings against the Depositor.

            (c) The Master Servicer shall take such action as is reasonably
necessary to maintain the perfection and priority of the security interest of
the Trustee in the Mortgage Loans; provided, however, that the obligation to
deliver the Mortgage File to the Co-Trustee pursuant to Section 2.01 shall be
solely the Depositor's obligation and the Master Servicer shall not be
responsible for the safekeeping of the Mortgage Files by the Co-Trustee.

            (d) It is understood and agreed that the representations and
warranties set forth in subsection (b) above shall survive delivery of the
Mortgage Files to the Co-Trustee. Upon discovery by the Depositor or the
Trustee of a breach of any of the foregoing representations and warranties set
forth in subsection (b) above, which breach materially and adversely affects
the interest of the Certificateholders, the party discovering such breach
shall give prompt written notice to the others and to each Rating Agency.

            Section 10.05 Notices.
                          ---------

            (a) The Trustee shall use its best efforts to promptly provide
notice to each Rating Agency and the Swap Counterparty with respect to each of
the following of which it has actual knowledge:

                (1) Any material change or amendment to this Agreement;

                (2) The occurrence of any Event of Default that has not been
      cured;

                (3) The resignation or termination of the Master Servicer or
      the Trustee and the appointment of any successor;

                (4) The repurchase or substitution of Mortgage Loans pursuant
      to Sections 2.02, 2.03, 2.04 and 3.12; and

                (5) The final payment to Certificateholders.

            (b) In addition, the Trustee shall promptly furnish to each Rating
Agency copies of the following:

                (1) Each report to Certificateholders described in Section
      4.05;

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<PAGE>

                (2) Each annual statement as to compliance described in
      Section 3.17; and

                (3) Each annual independent public accountants' servicing
      report described in Section 11.07.

            (c) All directions, demands and notices hereunder shall be in
writing and shall be deemed to have been duly given when sent by facsimile
transmission, first class mail or delivered to (i) in the case of the
Depositor, CWABS, Inc., 4500 Park Granada, Calabasas, California 91302,
facsimile number: (818) 225-4053, Attention: David A. Spector, or such other
address as may be hereafter furnished to the Sellers, the Master Servicer and
the Trustee by the Depositor in writing; (ii) in the case of CHL, Countrywide
Home Loans, Inc., 4500 Park Granada, Calabasas, California 91302, facsimile
number (818) 225-4053, Attention: David A. Spector, or such other address as
may be hereafter furnished to the Depositor, the Master Servicer and the
Trustee by the Sellers in writing; (iii) in the case of Park Monaco, Park
Monaco Inc., 4500 Park Granada, Calabasas, California 91302, facsimile number
(818) 225-4028, Attention: Paul Liu, or such other address as may be hereafter
furnished to the Depositor, the Master Servicer and the Trustee by the Sellers
in writing; (iv) in the case of Park Sienna, Park Sienna LLC, 4500 Park
Granada, Calabasas, California 91302, facsimile number (818) 225-4028,
Attention: Paul Liu, or such other address as may be hereafter furnished to
the Depositor, the Master Servicer and the Trustee by the Sellers in writing;
(v) in the case of the Master Servicer, Countrywide Home Loans Servicing LP,
7105 Corporate Drive, Plano, Texas 75024, facsimile number (805) 520-5623,
Attention: Mark Wong or such other address as may be hereafter furnished to
the Depositor, the Sellers and the Trustee by the Master Servicer in writing;
(vi) in the case of the Trustee, The Bank of New York, 101 Barclay Street, New
York, New York 10286, Attention: Corporate Trust MBS Administration, CWABS,
Series 2006-3, or such other address as the Trustee may hereafter furnish to
the parties hereto; (vii) in the case of the Co-Trustee, The Bank of New York
Trust Company, N.A., 5730 Katella Avenue, Cypress, California 90630,
Attention: MBS Support Services, or such other address as the Co-Trustee may
be hereafter furnished to the Depositor, the Master Servicer and the Trustee;
and (viii) in the case of the Rating Agencies, (x) Moody's Investors Service,
Inc., Attention: ABS Monitoring Department, 99 Church Street, Sixth Floor, New
York, New York 10007, and (y) Standard & Poor's Ratings Services, a division
of The McGraw-Hill Companies, Attention: Mortgage Surveillance Group, 55 Water
Street, 41st Floor, New York, New York 10041; and (ix) in the case of the Swap
Counterparty, Lehman Brothers Special Financing Inc., c/o Lehman Brothers
Inc., Transaction Management Group, Corporate Advisory Division, 745 Seventh
Avenue, New York, NY 10019, Attention: Documentation Manager, facsimile number
(212) 526-7672, or such other address as may be hereafter furnished by the
Swap Counterparty. Notices to Certificateholders shall be deemed given when
mailed, first postage prepaid, to their respective addresses appearing in the
Certificate Register.

            Section 10.06 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,

                                     162
<PAGE>

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 10.07 Assignment.
                          -----------

            Notwithstanding anything to the contrary contained herein, except
as provided pursuant to Section 6.02, this Agreement may not be assigned by
the Master Servicer without the prior written consent of the Trustee and the
Depositor.

            Section 10.08 Limitation on Rights of Certificateholders.
                          -------------------------------------------

            The death or incapacity of any Certificateholder shall not operate
to terminate this Agreement or the Trust Fund, nor entitle such
Certificateholder's legal representative or heirs to claim an accounting or to
take any action or commence any proceeding in any court for a petition or
winding up of the Trust Fund, or otherwise affect the rights, obligations and
liabilities of the parties hereto or any of them.

            No Certificateholder shall have any right to vote (except as
provided herein) or in any manner otherwise control 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 party 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 or by availing
itself of any provisions 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, the Holders of Certificates evidencing not less than
25% of the Voting Rights shall also have made written request to 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 60 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 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 itself or themselves of any provisions of this Agreement to affect,
disturb or prejudice the rights of the Holders of any other of the
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 common benefit of all
Certificateholders. For the protection and enforcement of the provisions of
this Section 10.08, each and every Certificateholder and the Trustee shall be
entitled to such relief as can be given either at law or in equity.

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<PAGE>

            Section 10.09 Inspection and Audit Rights.
                          ----------------------------

            The Master Servicer agrees that, on reasonable prior notice, it
will permit any representative of the Depositor, any Seller, the NIM Insurer
or the Trustee during the Master Servicer's normal business hours, to examine
all the books of account, records, reports and other papers of the Master
Servicer relating to the Mortgage Loans, to make copies and extracts
therefrom, to cause such books to be audited by independent certified public
accountants selected by the Depositor, a Seller, the NIM Insurer or the
Trustee and to discuss its affairs, finances and accounts relating to the
Mortgage Loans with its officers, employees and independent public accountants
(and by this provision the Master Servicer hereby authorizes such accountants
to discuss with such representative such affairs, finances and accounts), all
at such reasonable times and as often as may be reasonably requested. Any
out-of-pocket expense incident to the exercise by the Depositor, any Seller,
the NIM Insurer or the Trustee of any right under this Section 10.09 shall be
borne by the party requesting such inspection; all other such expenses shall
be borne by the Master Servicer.

            Section 10.10 Certificates Nonassessable and Fully Paid.
                          ------------------------------------------

            It is the intention of the Depositor that Certificateholders shall
not be personally liable for obligations of the Trust Fund, that the interests
in the Trust Fund represented by the Certificates shall be nonassessable for
any reason whatsoever, and that the Certificates, upon due authentication
thereof by the Trustee pursuant to this Agreement, are and shall be deemed
fully paid.

            Section 10.11 Rights of NIM Insurer.
                          ----------------------

            (a) The rights of the NIM Insurer under this Agreement shall exist
only so long as either:

                (1) the notes certain payments on which are guaranteed by the
      NIM Insurer remain outstanding or

                (2) the NIM Insurer is owed amounts paid by it with respect to
      that guaranty.

            (b) The rights of the NIM Insurer under this Agreement are
exercisable by the NIM Insurer only so long as no default by the NIM Insurer
under its guaranty of certain payments under notes backed or secured by the
Class C or Class P Certificates has occurred and is continuing. If the NIM
Insurer is the subject of any insolvency proceeding, the rights of the NIM
Insurer under this Agreement will be exercisable by the NIM Insurer only so
long as:

                (1) the obligations of the NIM Insurer under its guaranty of
      notes backed or secured by the Class C or Class P Certificates have not
      been disavowed and

                (2) CHL and the Trustee have received reasonable assurances
      that the NIM Insurer will be able to satisfy its obligations under its
      guaranty of notes backed or secured by the Class C or Class P
      Certificates.

                                     164
<PAGE>

            (c) The NIM Insurer is a third party beneficiary of this Agreement
to the same extent as if it were a party to this Agreement and may enforce any
of those rights under this Agreement.

            (d) A copy of any documents of any nature required by this
Agreement to be delivered by the Trustee, or to the Trustee or the Rating
Agencies, shall in each case at the same time also be delivered to the NIM
Insurer. Any notices required to be given by the Trustee, or to the Trustee or
the Rating Agencies, shall in each case at the same time also be given to the
NIM Insurer. If the Trustee receives a notice or document that is required
hereunder to be delivered to the NIM Insurer, and if such notice or document
does not indicate that a copy thereof has been previously sent to the NIM
Insurer, the Trustee shall send the NIM Insurer a copy of such notice or
document. If such document is an Opinion of Counsel, the NIM Insurer shall be
an addressee thereof or such Opinion of Counsel shall contain language
permitting the NIM Insurer to rely thereon as if the NIM Insurer were an
addressee thereof.

            (e) Anything in this Agreement that is conditioned on not
resulting in the downgrading or withdrawal of the ratings then assigned to the
Certificates by the Rating Agencies shall also be conditioned on not resulting
in the downgrading or withdrawal of the ratings then assigned by the Rating
Agencies to the notes backed or secured by the Class C or Class P Certificates
(without giving effect to any policy or guaranty provided by the NIM Insurer).

                                 ARTICLE XI.
                            EXCHANGE ACT REPORTING

            Section 11.01 Filing Obligations.
                          -------------------

            The Master Servicer, the Trustee and each Seller shall reasonably
cooperate with the Depositor in connection with the satisfaction of the
Depositor's reporting requirements under the Exchange Act with respect to the
Trust Fund. In addition to the information specified below, if so requested by
the Depositor for the purpose of satisfying its reporting obligation under the
Exchange Act, the Master Servicer, the Trustee and each Seller shall (and the
Master Servicer shall cause each Subservicer to) provide the Depositor with
(a) such information which is available to such Person without unreasonable
effort or expense and within such timeframe as may be reasonably requested by
the Depositor to comply with the Depositor's reporting obligations under the
Exchange Act and (b) to the extent such Person is a party (and the Depositor
is not a party) to any agreement or amendment required to be filed, copies of
such agreement or amendment in EDGAR-compatible form.

            Section 11.02 Form 10-D Filings.
                          ------------------

            (a) In accordance with the Exchange Act, the Trustee shall prepare
for filing and file within 15 days after each Distribution Date (subject to
permitted extensions under the Exchange Act) with the Commission with respect
to the Trust Fund, a Form 10-D with copies of the Monthly Statement and, to
the extent delivered to the Trustee, no later than 10 days following the
Distribution Date, such other information identified by the Depositor or the
Master Servicer,

                                     165
<PAGE>

in writing, to be filed with the Commission (such other information, the
"Additional Designated Information"). If the Depositor or Master Servicer
directs that any Additional Designated Information is to be filed with any
Form 10-D, the Depositor or Master Servicer, as the case may be, shall specify
the Item on Form 10-D to which such information is responsive and, with
respect to any Exhibit to be filed on Form 10-D, the Exhibit number. Any
information to be filed on Form 10-D shall be delivered to the Trustee in
EDGAR-compatible form or as otherwise agreed upon by the Trustee and the
Depositor or the Master Servicer, as the case may be, at the Depositor's
expense, and any necessary conversion to EDGAR-compatible format will be at
the Depositor's expense. At the reasonable request of, and in accordance with
the reasonable directions of, the Depositor or the Master Servicer, subject to
the two preceding sentences, the Trustee shall prepare for filing and file an
amendment to any Form 10-D previously filed with the Commission with respect
to the Trust Fund. The Master Servicer shall sign the Form 10-D filed on
behalf of the Trust Fund.

            (b) No later than each Distribution Date, each of the Master
Servicer and the Trustee shall notify (and the Master Servicer shall cause any
Subservicer to notify) the Depositor and the Master Servicer of any Form 10-D
Disclosure Item, together with a description of any such Form 10-D Disclosure
Item in form and substance reasonably acceptable to the Depositor. In addition
to such information as the Master Servicer and the Trustee are obligated to
provide pursuant to other provisions of this Agreement, if so requested by the
Depositor, each of the Master Servicer and the Trustee shall provide such
information which is available to the Master Servicer and the Trustee, as
applicable, without unreasonable effort or expense regarding the performance
or servicing of the Mortgage Loans (in the case of the Trustee, based on the
information provided by the Master Servicer) as is reasonably required to
facilitate preparation of distribution reports in accordance with Item 1121 of
Regulation AB. Such information shall be provided concurrently with the
Remittance Reports in the case of the Master Servicer and the Monthly
Statement in the case of the Trustee, commencing with the first such report
due not less than five Business Days following such request.

            (c) The Trustee shall not have any responsibility to file any
items (other than those generated by it) that have not been received in a
format suitable (or readily convertible into a format suitable) for electronic
filing via the EDGAR system and shall not have any responsibility to convert
any such items to such format (other than those items generated by it or that
are readily convertible to such format). The Trustee shall have no liability
to the Certificateholders, the Trust Fund, the Master Servicer, the Depositor
or the NIM Insurer with respect to any failure to properly prepare or file any
of Form 10-D to the extent that such failure is not the result of any
negligence, bad faith or willful misconduct on its part.

            Section 11.03 Form 8-K Filings.
                          -----------------

            The Master Servicer shall prepare and file on behalf of the Trust
Fund any Form 8-K required by the Exchange Act. Each Form 8-K must be signed
by the Master Servicer. Each of the Master Servicer (and the Master Servicer
shall cause any Subservicer to promptly notify) and the Trustee shall promptly
notify the Depositor and the Master Servicer (if the notifying party is not
the Master Servicer), but in no event later than one (1) Business Day after
its occurrence, of any Reportable Event of which it has actual knowledge. Each
Person shall be deemed to have actual knowledge of any such event to the
extent that it relates to such Person or

                                     166
<PAGE>

any action or failure to act by such Person. Concurrently with any Subsequent
Transfer, CHL shall notify the Depositor and the Master Servicer, if any
material pool characteristic of the actual asset pool at the time of issuance
of the Certificates differs by 5% or more (other than as a result of the pool
assets converting into cash in accordance with their terms) from the
description of the asset pool in the Prospectus Supplement.

            Section 11.04 Form 10-K Filings.
                          ------------------

            Prior to March 30th of each year, commencing in 2007 (or such
earlier date as may be required by the Exchange Act), the Depositor shall
prepare and file on behalf of the Trust Fund a Form 10-K, in form and
substance as required by the Exchange Act. A senior officer in charge of the
servicing function of the Master Servicer shall sign each Form 10-K filed on
behalf of the Trust Fund. Such Form 10-K shall include as exhibits each (i)
annual compliance statement described under Section 3.17, (ii) annual report
on assessments of compliance with servicing criteria described under Section
11.07 and (iii) accountant's report described under Section 11.07. Each Form
10-K shall also include any Sarbanes-Oxley Certification required to be
included therewith, as described in Section 11.05.

            If the Item 1119 Parties listed on Exhibit Z have changed since
the Closing Date, no later than March 1 of each year, the Master Servicer
shall provide each of the Master Servicer (and the Master Servicer shall
provide any Subservicer) and the Trustee with an updated Exhibit Z setting
forth the Item 1119 Parties. No later than March 15 of each year, commencing
in 2007, the Master Servicer and the Trustee shall notify (and the Master
Servicer shall cause any Subservicer to notify) the Depositor and the Master
Servicer of any Form 10-K Disclosure Item, together with a description of any
such Form 10-K Disclosure Item in form and substance reasonably acceptable to
the Depositor. Additionally, each of the Master Servicer and the Trustee shall
provide, and shall cause each Reporting Subcontractor retained by the Master
Servicer or the Trustee, as applicable, and in the case of the Master Servicer
shall cause each Subservicer, to provide, the following information no later
than March 15 of each year in which a Form 10-K is required to be filed on
behalf of the Trust Fund: (i) if such Person's report on assessment of
compliance with servicing criteria described under Section 11.07 or related
registered public accounting firm attestation report described under Section
11.07 identifies any material instance of noncompliance, notification of such
instance of noncompliance and (ii) if any such Person's report on assessment
of compliance with servicing criteria or related registered public accounting
firm attestation report is not provided to be filed as an exhibit to such Form
10-K, information detailing the explanation why such report is not included.

            Section 11.05 Sarbanes-Oxley Certification.
                          -----------------------------

            Each Form 10-K shall include a certification (the "Sarbanes-Oxley
Certification") required by Rules 13a-14(d) and 15d-14(d) under the Exchange
Act (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and the rules
and regulations of the Commission promulgated thereunder (including any
interpretations thereof by the Commission's staff)). No later than March 15 of
each year, beginning in 2007, the Master Servicer and the Trustee shall
(unless such person is the Certifying Person), and the Master Servicer shall
cause each Subservicer and each Reporting Subcontractor and the Trustee shall
cause each Reporting Subcontractor to, provide to the Person who signs the
Sarbanes-Oxley Certification (the "Certifying Person") a certification

                                     167
<PAGE>

(each, a "Performance Certification"), in the form attached hereto as Exhibit
X-1 (in the case of a Subservicer or any Reporting Subcontractor of the Master
Servicer or a Subservicer) and Exhibit X-2 (in the case of the Trustee or any
Reporting Subcontractor of the Trustee), on which the Certifying Person, the
entity for which the Certifying Person acts as an officer, and such entity's
officers, directors and Affiliates (collectively with the Certifying Person,
"Certification Parties") can reasonably rely. The senior officer in charge of
the servicing function of the Master Servicer shall serve as the Certifying
Person on behalf of the Trust Fund. Neither the Master Servicer nor the
Depositor will request delivery of a certification under this clause unless
the Depositor is required under the Exchange Act to file an annual report on
Form 10-K with respect to the Trust Fund. In the event that prior to the
filing date of the Form 10-K in March of each year, the Trustee or the
Depositor has actual knowledge of information material to the Sarbanes-Oxley
Certification, the Trustee or the Depositor, as the case may be, shall
promptly notify the Master Servicer and the Depositor. The respective parties
hereto agree to cooperate with all reasonable requests made by any Certifying
Person or Certification Party in connection with such Person's attempt to
conduct any due diligence that such Person reasonably believes to be
appropriate in order to allow it to deliver any Sarbanes-Oxley Certification
or portion thereof with respect to the Trust Fund.

            Section 11.06 Form 15 Filing.
                          ---------------

            Prior to January 30 of the first year in which the Depositor is
able to do so under applicable law, the Depositor shall file a Form 15
relating to the automatic suspension of reporting in respect of the Trust Fund
under the Exchange Act.

            Section 11.07 Report on Assessment of Compliance and Attestation.
                          ---------------------------------------------------

            (a) On or before March 15 of each calendar year, commencing in
2007:

                (1) Each of the Master Servicer and the Trustee shall deliver
      to the Depositor and the Master Servicer a report (in form and substance
      reasonably satisfactory to the Depositor) regarding the Master
      Servicer's or the Trustee's, as applicable, assessment of compliance
      with the Servicing Criteria during the immediately preceding calendar
      year, as required under Rules 13a-18 and 15d-18 of the Exchange Act and
      Item 1122 of Regulation AB. Such report shall be signed by an authorized
      officer of such Person and shall address each of the Servicing Criteria
      specified on a certification substantially in the form of Exhibit W
      hereto delivered to the Depositor concurrently with the execution of
      this Agreement. To the extent any of the Servicing Criteria are not
      applicable to such Person, with respect to asset-backed securities
      transactions taken as a whole involving such Person and that are backed
      by the same asset type backing the Certificates, such report shall
      include such a statement to that effect. The Depositor and the Master
      Servicer, and each of their respective officers and directors shall be
      entitled to rely on upon each such servicing criteria assessment.

                (2) Each of the Master Servicer and the Trustee shall deliver
      to the Depositor and the Master Servicer a report of a registered public
      accounting firm reasonably acceptable to the Depositor that attests to,
      and reports on, the assessment of compliance made by Master Servicer or
      the Trustee, as applicable, and delivered pursuant

                                     168
<PAGE>

      to the preceding paragraphs. Such attestation shall be in accordance
      with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities
      Act and the Exchange Act, including, without limitation that in the
      event that an overall opinion cannot be expressed, such registered
      public accounting firm shall state in such report why it was unable to
      express such an opinion. Such report must be available for general use
      and not contain restricted use language. To the extent any of the
      Servicing Criteria are not applicable to such Person, with respect to
      asset-backed securities transactions taken as a whole involving such
      Person and that are backed by the same asset type backing the
      Certificates, such report shall include such a statement that that
      effect.

                (3) The Master Servicer shall cause each Subservicer and each
      Reporting Subcontractor to deliver to the Depositor an assessment of
      compliance and accountant's attestation as and when provided in
      paragraphs (a) and (b) of this Section 11.07.

                (4) The Trustee shall cause each Reporting Subcontractor to
      deliver to the Depositor and the Master Servicer an assessment of
      compliance and accountant's attestation as and when provided in
      paragraphs (a) and (b) of this Section.

                (5) The Master Servicer and the Trustee shall execute (and the
      Master Servicer shall cause each Subservicer to execute, and the Master
      Servicer and the Trustee shall cause each Reporting Subcontractor to
      execute) a reliance certificate to enable the Certification Parties to
      rely upon each (i) annual compliance statement provided pursuant to
      Section 3.17, (ii) annual report on assessments of compliance with
      servicing criteria provided pursuant to this Section 11.07 and (iii)
      accountant's report provided pursuant to this Section 11.07 and shall
      include a certification that each such annual compliance statement or
      report discloses any deficiencies or defaults described to the
      registered public accountants of such Person to enable such accountants
      to render the certificates provided for in this Section 11.07.

            (b) In the event the Master Servicer, any Subservicer, the Trustee
or Reporting Subcontractor is terminated or resigns during the term of this
Agreement, such Person shall provide documents and information required by
this Section 11.07 with respect to the period of time it was subject to this
Agreement or provided services with respect to the Trust Fund, the
Certificates or the Mortgage Loans.

            (c) Each assessment of compliance provided by a Subservicer
pursuant to Section 11.07(a)(3) shall address each of the Servicing Criteria
specified on a certification substantially in the form of Exhibit W hereto
delivered to the Depositor concurrently with the execution of this Agreement
or, in the case of a Subservicer subsequently appointed as such, on or prior
to the date of such appointment. An assessment of compliance provided by a
Subcontractor pursuant to Section 11.07(a)(3) or (4) need not address any
elements of the Servicing Criteria other than those specified by the Master
Servicer or the Trustee, as applicable, pursuant to Section 11.07(a)(1).

                                     169
<PAGE>

            Section 11.08 Use of Subservicers and Subcontractors.

            (a) The Master Servicer shall cause any Subservicer used by the
Master Servicer (or by any Subservicer) for the benefit of the Depositor to
comply with the provisions of Section 3.17 and this Article XI to the same
extent as if such Subservicer were the Master Servicer (except with respect to
the Master Servicer's duties with respect to preparing and filing any Exchange
Act Reports or as the Certifying Person). The Master Servicer shall be
responsible for obtaining from each Subservicer and delivering to the
Depositor any servicer compliance statement required to be delivered by such
Subservicer under Section 3.17, any assessment of compliance and attestation
required to be delivered by such Subservicer under Section 11.07 and any
certification required to be delivered to the Certifying Person under Section
11.05 as and when required to be delivered. As a condition to the succession
to any Subservicer as subservicer under this Agreement by any Person (i) into
which such Subservicer may be merged or consolidated, or (ii) which may be
appointed as a successor to any Subservicer, the Master Servicer shall provide
to the Depositor, at least 15 calendar days prior to the effective date of
such succession or appointment, (x) written notice to the Depositor of such
succession or appointment and (y) in writing and in form and substance
reasonably satisfactory to the Depositor, all information reasonably requested
by the Depositor in order to comply with its reporting obligation under Item
6.02 of Form 8-K.

            (b) It shall not be necessary for the Master Servicer, any
Subservicer or the Trustee to seek the consent of the Depositor or any other
party hereto to the utilization of any Subcontractor. The Master Servicer or
the Trustee, as applicable, shall promptly upon request provide to the
Depositor (or any designee of the Depositor, such as the Master Servicer or
administrator) a written description (in form and substance satisfactory to
the Depositor) of the role and function of each Subcontractor utilized by such
Person (or in the case of the Master Servicer, any Subservicer), specifying
(i) the identity of each such Subcontractor, (ii) which (if any) of such
Subcontractors are "participating in the servicing function" within the
meaning of Item 1122 of Regulation AB, and (iii) which elements of the
Servicing Criteria will be addressed in assessments of compliance provided by
each Subcontractor identified pursuant to clause (ii) of this paragraph.

            As a condition to the utilization of any Subcontractor determined
to be a Reporting Subcontractor, the Master Servicer or the Trustee, as
applicable, shall cause any such Subcontractor used by such Person (or in the
case of the Master Servicer, any Subservicer) for the benefit of the Depositor
to comply with the provisions of Sections 11.07 and 11.09 of this Agreement to
the same extent as if such Subcontractor were the Master Servicer (except with
respect to the Master Servicer's duties with respect to preparing and filing
any Exchange Act Reports or as the Certifying Person) or the Trustee, as
applicable. The Master Servicer or the Trustee, as applicable, shall be
responsible for obtaining from each Subcontractor and delivering to the
Depositor and the Master Servicer, any assessment of compliance and
attestation required to be delivered by such Subcontractor under Section 11.05
and Section 11.07, in each case as and when required to be delivered.

                                     170
<PAGE>

            Section 11.09 Amendments.

            In the event the parties to this Agreement desire to further
clarify or amend any provision of this Article XI, this Agreement shall be
amended to reflect the new agreement between the parties covering matters in
this Article XI pursuant to Section 10.01, which amendment shall not require
any Opinion of Counsel or Rating Agency confirmations or the consent of any
Certificateholder or the NIM Insurer.

            If, during the period that the Depositor is required to file
Exchange Act Reports with respect to the Trust Fund, the Master Servicer is no
longer an Affiliate of the Depositor, the Depositor shall assume the
obligations and responsibilities of the Master Servicer in this Article XI
with respect to the preparation and filing of the Exchange Act Reports and/or
acting as the Certifying Person, if the Depositor has received indemnity from
such successor Master Servicer satisfactory to the Depositor, and such Master
Servicer has agreed to provide a Sarbanes-Oxley Certification to the Depositor
substantially in the form of Exhibit AA and the certifications referred to in
Section 11.07.

                                     171
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused their names to
be signed hereto by their respective officers thereunto duly authorized as of
the day and year first above written.

                                    CWABS, INC.,
                                         as Depositor

                                    By:         /s/ Leon Daniels, Jr.
                                         --------------------------------------
                                         Name:  Leon Daniels, Jr.
                                         Title: Vice President

                                    COUNTRYWIDE HOME LOANS, INC.,
                                         as a Seller

                                    By:         /s/ Leon Daniels, Jr.
                                         --------------------------------------
                                         Name:  Leon Daniels, Jr.
                                         Title: Senior Vice President

                                    PARK MONACO INC.,
                                         as a Seller

                                    By:         /s/ Leon Daniels, Jr.
                                         --------------------------------------
                                         Name:  Leon Daniels, Jr.
                                         Title: Vice President

                                    PARK SIENNA LLC,
                                         as a Seller

                                    By:        /s/ Leon Daniels, Jr.
                                         --------------------------------------
                                         Name:  Leon Daniels, Jr.
                                         Title: Vice President

<PAGE>

                                    COUNTRYWIDE HOME LOANS SERVICING LP,
                                         as Master Servicer

                                    By:  COUNTRYWIDE GP, INC.

                                    By:         /s/ Leon Daniels, Jr.
                                         --------------------------------------
                                         Name:  Leon Daniels, Jr.
                                         Title: Vice President

                                    THE BANK OF NEW YORK,
                                    as Trustee

                                    By:         /s/ Maria Tokarz
                                         --------------------------------------
                                         Name:  Maria Tokarz
                                         Title: Assistant Treasurer

                                    THE BANK OF NEW YORK TRUST COMPANY, N.A.,
                                    as Co-Trustee

                                    By:         /s/ Ernest Ulate, Jr.
                                         --------------------------------------
                                         Name:  Ernest Ulate, Jr.
                                         Title: Vice President

                                    THE BANK OF NEW YORK (solely with respect
                                    to its obligations under Section 4.01(d))

                                    By:         /s/ Paul Connolly
                                         --------------------------------------
                                         Name:  Paul Connolly
                                         Title: Vice President

<PAGE>

STATE OF CALIFORNIA           )
                              )  ss.:
COUNTY OF LOS ANGELES         )

            On this 27th day of February, 2006, before me, a notary public in
and for said State, appeared Leon Daniels, Jr., personally known to me on the
basis of satisfactory evidence to be a Senior Vice President of Countrywide
Home Loans, Inc., one of the corporations that executed the within instrument,
and also known to me to be the person who executed it on behalf of such
corporation and acknowledged to me that such corporation executed the within
instrument.

            IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                /s/ Glenda J. Daniel
                                    ------------------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA           )
                              )  ss.:
COUNTY OF LOS ANGELES         )

            On this 27th day of February, 2006, before me, a notary public in
and for said State, appeared Leon Daniels, Jr., personally known to me on the
basis of satisfactory evidence to be a Vice President of Countrywide GP, Inc.,
the parent company of Countrywide Home Loans Servicing LP, one of the
organizations that executed the within instrument, and also known to me to be
the person who executed it on behalf of such limited partnership and
acknowledged to me that such limited partnership executed the within
instrument.

            IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                /s/ Glenda J. Daniel
                                   -------------------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA           )
                              )  ss.:
COUNTY OF LOS ANGELES         )

            On this 27th day of February, 2006, before me, a notary public in
and for said State, appeared Leon Daniels, Jr., personally known to me on the
basis of satisfactory evidence to be a Vice President of CWABS, Inc., one of
the corporations that executed the within instrument, and also known to me to
be the person who executed it on behalf of such corporation and acknowledged
to me that such corporation executed the within instrument.

            IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                /s/ Glenda J. Daniel
                                   -------------------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA               )
                                  )      ss.:
COUNTY OF LOS ANGELES             )

            On this 27th day of February, 2006, before me, a notary public in
and for said State, appeared Leon Daniels, Jr., personally known to me on the
basis of satisfactory evidence to be a Vice President of Park Monaco Inc., one
of the corporations that executed the within instrument, and also known to me
to be the person who executed it on behalf of such corporation and
acknowledged to me that such corporation executed the within instrument.

            IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                /s/ Glenda J. Daniel
                                   -------------------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA                      )
                                         )      ss.:
COUNTY OF LOS ANGELES                    )

            On this 27th day of February, 2006, before me, a notary public in
and for said State, appeared Leon Daniels, Jr., personally known to me on the
basis of satisfactory evidence to be a Vice President of Park Sienna LLC, one
of the entities that executed the within instrument, and also known to me to
be the person who executed it on behalf of such entity and acknowledged to me
that such entity executed the within instrument.

            IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                /s/ Glenda J. Daniel
                                   -------------------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF NEW YORK             )
                              )  ss.:
COUNTY OF NEW YORK            )

            On this 27th day of February, 2006 before me, a notary public in
and for said State, appeared Maria Tokarz, personally known to me on the basis
of satisfactory evidence to be a Vice Treasurer of The Bank of New York, a New
York banking corporation that executed the within instrument, and also known
to me to be the person who executed it on behalf of such corporation, and
acknowledged to me that such corporation executed the within instrument.

            IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                /s/ Philip A. Tracy III
                                   -------------------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA           )
                              )  ss.:
COUNTY OF LOS ANGELES         )

            On this ____ day of February, 2006 before me, a notary public in
and for said State, appeared __________________, personally known to me on the
basis of satisfactory evidence to be a ____________ of The Bank of New York
Trust Company, N.A., one of the corporations that executed the within
instrument, and also known to me to be the person who executed it on behalf of
such corporation and acknowledged to me that such corporation executed the
within instrument.

            IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                      ----------------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF NEW YORK             )
                              )  ss.:
COUNTY OF NEW YORK            )

            On this 27th day of February, 2006 before me, a notary public in
and for said State, appeared Paul Connolly, personally known to me on the
basis of satisfactory evidence to be a Vice President of The Bank of New York,
a New York banking corporation that executed the within instrument, and also
known to me to be the person who executed it on behalf of such corporation,
and acknowledged to me that such corporation executed the within instrument.

            IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                /s/ Philip A. Tracy III
                                   -------------------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

                                                                  Exhibits A-1
                                                                  through A-15

                        [Exhibits A-1 through A-15 are
                photocopies of such Certificates as delivered.]

               [See appropriate documents delivered at closing.]

                                     A-1
<PAGE>

                                                                     Exhibit B

                           Exhibit B is a photocopy
                          of the Class P Certificates
                                 as delivered.

               [See appropriate document delivered at closing.]

                                     B-1
<PAGE>

                                                                     Exhibit C

                           Exhibit C is a photocopy
                          of the Class C Certificates
                                 as delivered.

               [See appropriate document delivered at closing.]

                                     C-1
<PAGE>

                                                                     Exhibit D

                           Exhibit D is a photocopy
                         of the Class A-R Certificate
                                 as delivered.

              [See appropriate documents delivered at closing.]

                                     D-1
<PAGE>

                                                                     Exhibit E

                           Exhibit E is a photocopy
                     of the Tax Matters Person Certificate
                                 as delivered.

              [See appropriate documents delivered at closing.]

                                     E-1
<PAGE>

                                                           Exhibit F-1 and F-2

            [Exhibits F-1 and F-2 are schedules of Mortgage Loans]

       [Delivered to Trustee at closing and on file with the Trustee.]

                                     F-1
<PAGE>

                                  EXHIBIT G-1

                   FORM OF INITIAL CERTIFICATION OF TRUSTEE

                                    [Date]

[Depositor]

[Sellers]

[Master Servicer]

            Re:   CWABS Asset-Backed Certificates, Series 2006-3
                  ----------------------------------------------

Gentlemen:

            In accordance with Section 2.02 of the Pooling and Servicing
Agreement dated as of February 1, 2006 (the "Pooling and Servicing Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home
Loans Servicing LP, as Master Servicer, the undersigned, as Trustee, and The
Bank of New York Trust Company, N.A., as Co-Trustee, 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 in
the attached list of exceptions) the Co-Trustee has received:

            (i) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of ______________,
without recourse", or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note; and

            (ii) a duly executed assignment of the Mortgage or a copy of such
assignment, in either case in the form permitted by Section 2.01 of the
Pooling and Servicing Agreement.

            Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.

            The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule or (ii) the collectibility,
insurability, effectiveness or suitability of any such Mortgage Loan.

                                    G-1-1
<PAGE>

            Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the Pooling and Servicing Agreement.

                                    The Bank of New York,
                                         as Trustee

                                    By:
                                        ------------------------------------
                                         Name:
                                         Title:

                                    G-1-2
<PAGE>

                                  EXHIBIT G-2

                   FORM OF INTERIM CERTIFICATION OF TRUSTEE

                                    [Date]

[Depositor]

[Sellers]

[Master Servicer]

            Re:   CWABS Asset-Backed Certificates, Series 2006-3
                  ----------------------------------------------

Gentlemen:

            In accordance with Section 2.02 of the Pooling and Servicing
Agreement dated as of February 1, 2006 (the "Pooling and Servicing Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home
Loans Servicing LP, as Master Servicer, the undersigned, as Trustee, and The
Bank of New York Trust Company, N.A., as Co-Trustee, the undersigned, as
Trustee, hereby certifies that[, with respect to the Subsequent Mortgage Loans
delivered in connection with the Subsequent Transfer Agreement, dated as of
__________ (the "Subsequent Transfer Agreement") among CWABS, Inc., as
Depositor, Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc., as a
Seller, Park Sienna LLC, as a Seller and The Bank of New York, as Trustee],
except as listed in the following paragraph, as to each [Initial Mortgage
Loan][Subsequent Mortgage Loan] listed in the [Mortgage Loan Schedule][Loan
Number and Borrower Identification Mortgage Loan Schedule] (other than any
[Mortgage Loan][Loan Number and Borrower Identification Mortgage Loan
Schedule] paid in full or listed on the attached list of exceptions) the
Co-Trustee has received:

            (i) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of _______________
without recourse", with all intervening endorsements that show a complete
chain of endorsement from the originator to the Person endorsing the Mortgage
Note (each such endorsement being sufficient to transfer all right, title and
interest of the party so endorsing, as noteholder or assignee thereof, in and
to that Mortgage Note), or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note and all such intervening endorsements;

            (ii) the case of each [Initial Mortgage Loan][Subsequent Mortgage
Loan] that is not a MERS Mortgage Loan, the original recorded Mortgage or a
copy of such Mortgage, with recording information, and in the case of each
[Initial Mortgage Loan][Subsequent Mortgage Loan] that is a MERS Mortgage
Loan, the original Mortgage or a copy of such Mortgage, with recording
information, noting thereon the presence of the MIN of the [Initial Mortgage

                                    G-2-1
<PAGE>

Loan][Subsequent Mortgage Loan] and language indicating that the [Initial
Mortgage Loan][Subsequent Mortgage Loan] is a MOM Loan if the [Initial
Mortgage Loan][Subsequent Mortgage Loan] is a MOM Loan, with evidence of
recording indicated thereon, or a copy of the Mortgage certified by the public
recording office in which such Mortgage has been recorded;

            (iii)

the case of each [Initial Mortgage Loan][Subsequent Mortgage Loan] that is not
a MERS Mortgage Loan, a duly executed assignment of the Mortgage to
"Asset-Backed Certificates, Series 2006-3, CWABS, Inc., by The Bank of New
York, a New York banking corporation, as trustee under the Pooling and
Servicing Agreement dated as of February 1, 2006, without recourse" or a copy
of such assignment, with recording information, or, in the case of each
[Initial Mortgage Loan][Subsequent Mortgage Loan] with respect to property
located in the State of California that is not a MERS Mortgage Loan, a duly
executed assignment of the Mortgage in blank (each such assignment, when duly
and validly completed, to be in recordable form and sufficient to effect the
assignment of and transfer to the assignee thereof, under the Mortgage to
which such assignment relates);

            (iv) the original recorded assignment or assignments of the
Mortgage or a copy of such assignments, with recording information, together
with all interim recorded assignments of such Mortgage or a copy of such
assignments, with recording information (in each case noting the presence of a
MIN in the case of each MERS Mortgage Loan);

            (v) the original or copies of each assumption, modification,
written assurance or substitution agreement, if any; and

            (vi) the original or duplicate original lender's title policy or a
copy of lender's title policy or a printout of the electronic equivalent and
all riders thereto or, in the event such original title policy has not been
received from the insurer, any one of an original title binder, an original
preliminary title report or an original title commitment, or a copy thereof
certified by the title company, with the original policy of title insurance to
be delivered within one year of the Closing Date.

            In the event that in connection with any [Initial Mortgage
Loan][Subsequent Mortgage Loan] that is not a MERS Mortgage Loan the
applicable Seller cannot deliver the original recorded Mortgage or all interim
recorded assignments of the Mortgage satisfying the requirements of clause
(ii), (iii) or (iv), as applicable, the Co-Trustee has received, in lieu
thereof, a true and complete copy of such Mortgage and/or such assignment or
assignments of the Mortgage, as applicable, each certified by the applicable
Seller, the applicable title company, escrow agent or attorney, or the
originator of such [Initial Mortgage Loan][Subsequent Mortgage Loan], as the
case may be, to be a true and complete copy of the original Mortgage or
assignment of Mortgage submitted for recording.

            Based on its review and examination and only as to the foregoing
documents, (i) such documents appear regular on their face and related to such
[Initial Mortgage Loan][Subsequent Mortgage Loan], and (ii) the information
set forth in items (i), (iv), (v), (vi),

                                    G-2-2
<PAGE>

(viii), (ix) and (xv) of the definition of the "Mortgage Loan Schedule" in
Section 1.01 of the Pooling and Servicing Agreement accurately reflects
information set forth in the Mortgage File.

            The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of the [Initial
Mortgage Loans][Subsequent Mortgage Loans] identified on the [Mortgage Loan
Schedule][Loan Number and Borrower Identification Mortgage Loan Schedule] or
(ii) the collectibility, insurability, effectiveness or suitability of any
such Mortgage Loan.

                                    G-2-3
<PAGE>

            Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the Pooling and Servicing Agreement.

                                    The Bank of New York,
                                         as Trustee

                                    By:
                                         ------------------------------------
                                         Name:
                                         Title:

                                    G-2-4
<PAGE>

                                  EXHIBIT G-3

                     FORM OF DELAY DELIVERY CERTIFICATION

                                    [Date]

[Depositor]

[Sellers]

[Master Servicer]

            Re:   CWABS Asset-Backed Certificates, Series 2006-3
                  ----------------------------------------------

Gentlemen:

            [Reference is made to the Initial Certification of Trustee
relating to the above-referenced series, with the schedule of exceptions
attached thereto, delivered by the undersigned, as Trustee, on the Closing
Date in accordance with Section 2.02 of the Pooling and Servicing Agreement
dated as of February 1, 2006 (the "Pooling and Servicing Agreement") among
CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller, Park
Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans
Servicing LP, as Master Servicer, the undersigned, as Trustee, and The Bank of
New York Trust Company, N.A., as Co-Trustee.] The undersigned hereby certifies
that [, with respect to the Subsequent Mortgage Loans delivered in connection
with the Subsequent Transfer Agreement, dated as of __________ (the
"Subsequent Transfer Agreement") among CWABS, Inc., as Depositor, Countrywide
Home Loans, Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC,
as a Seller and The Bank of New York, as Trustee,] as to each Delay Delivery
Mortgage Loan listed on the Schedule A attached hereto (other than any
[Initial Mortgage Loan][Subsequent Mortgage Loan] paid in full or listed on
Schedule B attached hereto) the Trustee has received:

            (1) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of _______________
without recourse", with all intervening endorsements that show a complete
chain of endorsement from the originator to the Person endorsing the Mortgage
Note (each such endorsement being sufficient to transfer all right, title and
interest of the party so endorsing, as noteholder or assignee thereof, in and
to that Mortgage Note), or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note and all such intervening endorsements;

            (2) in the case of each [Initial Mortgage Loan][Subsequent
Mortgage Loan] that is not a MERS Mortgage Loan, a duly executed assignment of
the Mortgage to "Asset-Backed Certificates, Series 2006-3, CWABS, Inc., by The
Bank of New York, a New York banking corporation, as trustee under the Pooling
and Servicing Agreement dated as of February 1, 2006, without recourse" or a
copy of such assignment, with recording information, or, in the

                                    G-3-1
<PAGE>

case of each [Initial Mortgage Loan][Subsequent Mortgage Loan] with respect to
property located in the State of California that is not a MERS Mortgage Loan,
a duly executed assignment of the Mortgage in blank (each such assignment,
when duly and validly completed, to be in recordable form and sufficient to
effect the assignment of and transfer to the assignee thereof, under the
Mortgage to which such assignment relates).

            Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.

            The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of the [Initial
Mortgage Loans][Subsequent Mortgage Loans] identified on the [Mortgage Loan
Schedule][Loan Number and Borrower Identification Mortgage Loan Schedule] or
(ii) the collectibility, insurability, effectiveness or suitability of any
such [Initial Mortgage Loan][Subsequent Mortgage Loan].

            Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the Pooling and Servicing Agreement.

                                    The Bank of New York,
                                         as Trustee

                                    By:
                                         ------------------------------------
                                         Name:
                                         Title:

                                    G-3-2
<PAGE>

                                  EXHIBIT G-4

                   FORM OF INITIAL CERTIFICATION OF TRUSTEE
                          (SUBSEQUENT MORTGAGE LOANS)

                                    [Date]

[Depositor]

[Sellers]

[Master Servicer]

            Re:   CWABS Asset-Backed Certificates, Series 2006-3
                  ----------------------------------------------

Gentlemen:

            In accordance with Section 2.02 of the Pooling and Servicing
Agreement dated as of February 1, 2006 (the "Pooling and Servicing Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home
Loans Servicing LP, as Master Servicer, the undersigned, as Trustee, and The
Bank of New York Trust Company, N.A., as Co-Trustee, the undersigned hereby
certifies that, as to each Subsequent Mortgage Loan listed in the Loan Number
and Borrower Identification Mortgage Loan Schedule (other than any Subsequent
Mortgage Loan paid in full or listed in the attached list of exceptions) the
Co-Trustee has received:

            (1) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of _______________
without recourse", with all intervening endorsements that show a complete
chain of endorsement from the originator to the Person endorsing the Mortgage
Note (each such endorsement being sufficient to transfer all right, title and
interest of the party so endorsing, as noteholder or assignee thereof, in and
to that Mortgage Note), or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note and all such intervening endorsements; and

            (2) a duly executed assignment of the Mortgage or a copy of such
assignment with recording information, in either case in the form permitted by
Section 2.01 of the Pooling and Servicing Agreement.

            Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.

            The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency,

                                    G-4-1
<PAGE>

enforceability or genuineness of any of the documents contained in each
Mortgage File of any of the Subsequent Mortgage Loans identified on the Loan
Number and Borrower Identification Mortgage Loan Schedule or (ii) the
collectibility, insurability, effectiveness or suitability of any such
Subsequent Mortgage Loan.

            Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the Pooling and Servicing Agreement.

                                    The Bank of New York,
                                         as Trustee

                                    By:
                                         ------------------------------------
                                         Name:
                                         Title:

                                    G-4-2
<PAGE>

                                   EXHIBIT H

                    FORM OF FINAL CERTIFICATION OF TRUSTEE

                                    [Date]

[Depositor]

[Master Servicer]

[Sellers]

            Re:   CWABS Asset-Backed Certificates, Series 2006-3
                  ----------------------------------------------

Gentlemen:

            In accordance with Section 2.02 of the Pooling and Servicing
Agreement dated as of February 1, 2006 (the "Pooling and Servicing Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home
Loans Servicing LP, as Master Servicer, the undersigned, as Trustee, and The
Bank of New York Trust Company, N.A., as Co-Trustee, the undersigned, as
Trustee, hereby certifies that[, with respect to the Subsequent Mortgage Loans
delivered in connection with the Subsequent Transfer Agreement, dated as of
__________ (the "Subsequent Transfer Agreement") among CWABS, Inc., as
Depositor, Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc., as a
Seller, Park Sienna LLC, as a Seller and The Bank of New York, as Trustee,] as
to each [Initial Mortgage Loan][Subsequent Mortgage Loan] listed in the
[Mortgage Loan Schedule][Loan Number and Borrower Identification Mortgage Loan
Schedule] (other than any [Initial Mortgage Loan][Subsequent Mortgage Loan]
paid in full or listed on the attached Document Exception Report) the Trustee
has received:

            (i) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of
_________________ without recourse", with all intervening endorsements that
show a complete chain of endorsement from the originator to the Person
endorsing the Mortgage Note (each such endorsement being sufficient to
transfer all right, title and interest of the party so endorsing, as
noteholder or assignee thereof, in and to that Mortgage Note), or, if the
original Mortgage Note has been lost or destroyed and not replaced, an
original lost note affidavit, stating that the original Mortgage Note was lost
or destroyed, together with a copy of the related Mortgage Note and all such
intervening endorsements;

            (ii) in the case of each [Initial Mortgage Loan][Subsequent
Mortgage Loan] that is not a MERS Mortgage Loan, the original recorded
Mortgage or a copy of such Mortgage, with recording information, and in the
case of each [Initial Mortgage Loan][Subsequent Mortgage Loan] that is a MERS
Mortgage Loan, the original Mortgage or a copy of such Mortgage, with
recording information, noting the presence of the MIN of the [Initial Mortgage
Loan][Subsequent Mortgage Loan] and language indicating that the [Initial
Mortgage Loan][Subsequent Mortgage Loan] is a MOM Loan if the [Initial
Mortgage Loan][Subsequent

                                     H-1
<PAGE>

Mortgage Loan] is a MOM Loan, with evidence of recording indicated thereon, or
a copy of the Mortgage certified by the public recording office in which such
Mortgage has been recorded];

            (iii) in the case of each [Initial Mortgage Loan][Subsequent
Mortgage Loan] that is not a MERS Mortgage Loan, a duly executed assignment of
the Mortgage to "Asset-Backed Certificates, Series 2006-3, CWABS, Inc., by The
Bank of New York, a New York banking corporation, as trustee under the Pooling
and Servicing Agreement dated as of February 1, 2006, without recourse" or a
copy of such assignment, with recording information, or, in the case of each
[Initial Mortgage Loan][Subsequent Mortgage Loan] with respect to property
located in the State of California that is not a MERS Mortgage Loan, a duly
executed assignment of the Mortgage in blank (each such assignment, when duly
and validly completed, to be in recordable form and sufficient to effect the
assignment of and transfer to the assignee thereof, under the Mortgage to
which such assignment relates);

            (iv) the original recorded assignment or assignments of the
Mortgage or a copy of such assignments, with recording information, together
with all interim recorded assignments of such Mortgage (or a copy of such
assignments, with recording information (in each case noting the presence of a
MIN in the case of each MERS Mortgage Loan));

            (v) the original or copies of each assumption, modification,
written assurance or substitution agreement, if any; and

            (vi) the original or duplicate original lender's title policy or a
copy of lender's title policy or a printout of the electronic equivalent and
all riders thereto or any one of an original title binder, an original
preliminary title report or an original title commitment, or a copy thereof
certified by the title company.

            If the public recording office in which a Mortgage or assignment
thereof is recorded has retained the original of such Mortgage or assignment,
the Trustee has received, in lieu thereof, a copy of the original Mortgage or
assignment so retained, with evidence of recording thereon, certified to be
true and complete by such recording office.

            Based on its review and examination and only as to the foregoing
documents, (i) such documents appear regular on their face and related to such
Mortgage Loan, and (ii) the information set forth in items (i), (iv), (v),
(vi), (viii), (ix) and (xv) of the definition of the "Mortgage Loan Schedule"
in Section 1.01 of the Pooling and Servicing Agreement accurately reflects
information set forth in the Mortgage File.

            The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of the [Initial
Mortgage Loans][Subsequent Mortgage Loans] identified on the [Mortgage Loan
Schedule][Loan Number and Borrower Identification Mortgage Loan Schedule] or
(ii) the collectibility, insurability, effectiveness or suitability of any
such [Initial Mortgage Loan][Subsequent Mortgage Loan].

                                     H-2
<PAGE>

            Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the Pooling and Servicing Agreement.

                                    The Bank of New York,
                                       as Trustee

                                    By:
                                         ------------------------------------
                                         Name:
                                         Title:

                                     H-3
<PAGE>

                                   EXHIBIT I

              TRANSFER AFFIDAVIT FOR THE CLASS A-R CERTIFICATES

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 A-R Certificate (the
"Certificate") issued pursuant to the Pooling and Servicing Agreement, dated
as of February 1, 2006 (the "Agreement"), by and among CWABS, Inc., as
depositor (the "Depositor"), Countrywide Home Loans, Inc., as a Seller, Park
Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans
Servicing LP, as Master Servicer, The Bank of New York Trust Company, N.A., as
Co-Trustee and The Bank of New York, as Trustee. Capitalized terms used, but
not defined herein or in Exhibit 1 hereto, 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 not an employee benefit plan that is subject
to Title I of ERISA or to section 4975 of the Internal Revenue Code of 1986,
nor is it acting on behalf of or with plan assets of any such plan. The
Transferee is, as of the date hereof, and will be, as of the date of the
Transfer, a Permitted Transferee. The Transferee will endeavor to remain a
Permitted Transferee for so long as it retains its Ownership Interest in the
Certificate. The Transferee is acquiring its Ownership Interest in the
Certificate for its own account.

            3. The Transferee has been advised of, and understands that (i) a
tax will be imposed on Transfers of the 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 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.)

                                     I-1
<PAGE>

            5. The Transferee has reviewed the provisions of Section 5.02(c)
of the Agreement (attached hereto as Exhibit 2 and incorporated herein by
reference) and understands the legal consequences of the acquisition of an
Ownership Interest in the 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(c) 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 from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in
the 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 its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit J-1 to the Agreement (a "Transferor Certificate") to
the effect that such Transferee has no actual knowledge that the Person to
which the Transfer is to be made is not a Permitted Transferee.

            7. 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 Class A-R Certificates.

            8. The Transferee's taxpayer identification number is _____.

            9. The Transferee is a U.S. Person as defined in Code section
7701(a)(30).

            10. The Transferee is aware that the Class A-R Certificates may be
"noneconomic residual interests" within the meaning of proposed 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. In
addition, as the holder of a noneconomic residual interest, the Transferee may
incur tax liabilities in excess of any cash flows generated by the interest
and the Transferee hereby represents that it intends to pay taxes associated
with holding the residual interest as they become due.

            11. The Transferee has provided financial statements or other
financial information requested by the Transferor in connection with the
transfer of the Class A-R Certificates to permit the Transferor to assess the
financial capability of the Transferee to pay such taxes.

                                *     *     *

                                     I-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 and its corporate seal to be hereunto affixed,
duly attested, this ____ day of _____________, 20__.

                                    [NAME OF TRANSFEREE]

                                    By:
                                         --------------------------------------
                                         Name:
                                         Title:

[Corporate Seal]

ATTEST:

-------------------------
[Assistant] Secretary

            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 _______, 20__.

                                    -------------------------------------
                                                NOTARY PUBLIC
                                    My Commission expires the ___ day of
                                                , 20__.

                                     I-3
<PAGE>

                              Certain Definitions

            "Ownership Interest": As to any Certificate, any ownership
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.

            "Permitted Transferee": Any person other than (i) the United
States, any State or political subdivision thereof, or any agency or
instrumentality of any of the foregoing, (ii) a foreign government,
International Organization or any agency or instrumentality of either of the
foregoing, (iii) an organization (except certain farmers' cooperatives
described in section 521 of the Code) that is exempt from tax imposed by
Chapter 1 of the Code (including the tax imposed by section 511 of the Code on
unrelated business taxable income) on any excess inclusions (as defined in
section 860E(c)(1) of the Code) with respect to any Class A-R Certificate,
(iv) rural electric and telephone cooperatives described in section
1381(a)(2)(C) of the Code, (v) an "electing large partnership" as defined in
section 775 of the Code, (vi) a Person that is not a citizen or resident of
the United States, a corporation, partnership, or other entity (treated as a
corporation or a partnership for federal income tax purposes) created or
organized in or under the laws of the United States, any state thereof or the
District of Columbia, or an estate whose income from sources without the
United States is includible in gross income for United States federal income
tax purposes regardless of its connection with the conduct of a trade or
business within the United States, or 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 trustor unless such Person has furnished the
transferor and the Trustee with a duly completed Internal Revenue Service Form
W-8ECI, and (vii) any other Person so designated by the Trustee based upon an
Opinion of Counsel that the Transfer of an Ownership Interest in a Class A-R
Certificate to such Person may cause any REMIC formed hereunder to fail to
qualify as a REMIC at any time that any Certificates are Outstanding. The
terms "United States," "State" and "International Organization" shall have the
meanings set forth in section 7701 of the Code or successor provisions. A
corporation will not be treated as an instrumentality of the United States or
of any State or political subdivision thereof for these purposes 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 government unit.

            "Person": Any individual, corporation, limited liability company,
partnership, joint venture, bank, joint stock company, trust (including any
beneficiary thereof), unincorporated organization or government or any agency
or political subdivision thereof.

            "Transfer": Any direct or indirect transfer or sale of any
Ownership Interest in a Certificate, including the acquisition of a
Certificate by the Depositor.

            "Transferee":   Any  Person  who  is  acquiring  by  Transfer  any
Ownership Interest in a Certificate.

                                     I-4
<PAGE>

                       Section 5.02(c) of the Agreement

            (c) Each Person who has or who acquires any Ownership Interest in
a Class A-R Certificate shall be deemed by the acceptance or acquisition of
such Ownership Interest to have agreed to be bound by the following
provisions, and the rights of each Person acquiring any Ownership Interest in
a Class A-R Certificate are expressly subject to the following provisions:

            (1) Each Person holding or acquiring any Ownership Interest in a
      Class A-R Certificate shall be a Permitted Transferee and shall promptly
      notify the Trustee of any change or impending change in its status as a
      Permitted Transferee.

            (2) Except in connection with (i) the registration of the Tax
      Matters Person Certificate in the name of the Trustee or (ii) any
      registration in the name of, or transfer of a Class A-R Certificate to,
      an affiliate of the Depositor (either directly or through a nominee) in
      connection with the initial issuance of the Certificates, no Ownership
      Interest in a Class A-R Certificate may be registered on the Closing
      Date or thereafter transferred, and the Trustee shall not register the
      Transfer of any Class A-R Certificate, unless the Trustee shall have
      been furnished with an affidavit (a "Transfer Affidavit") of the initial
      owner or the proposed transferee in the form attached hereto as Exhibit
      I.

            (3) Each Person holding or acquiring any Ownership Interest in a
      Class A-R Certificate shall agree (A) to obtain a Transfer Affidavit
      from any other Person to whom such Person attempts to Transfer its
      Ownership Interest in a Class A-R Certificate, (B) to obtain a Transfer
      Affidavit from any Person for whom such Person is acting as nominee,
      trustee or agent in connection with any Transfer of a Class A-R
      Certificate and (C) not to Transfer its Ownership Interest in a Class
      A-R Certificate, or to cause the Transfer of an Ownership Interest in a
      Class A-R Certificate to any other Person, if it has actual knowledge
      that such Person is not a Permitted Transferee.

            (4) Any attempted or purported Transfer of any Ownership Interest
      in a Class A-R Certificate in violation of the provisions of this
      Section 5.02(c) shall be absolutely null and void and shall vest no
      rights in the purported Transferee. If any purported transferee shall
      become a Holder of a Class A-R Certificate in violation of the
      provisions of this Section 5.02(c), then the last preceding Permitted
      Transferee shall be restored to all rights as Holder thereof retroactive
      to the date of registration of Transfer of such Class A-R Certificate.
      The Trustee shall be under no liability to any Person for any
      registration of Transfer of a Class A-R Certificate that is in fact not
      permitted by Section 5.02(b) and this Section 5.02(c) 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 after receipt of the
      related Transfer Affidavit and Transferor Certificate. The Trustee shall
      be entitled but not obligated to recover from any Holder of a Class A-R
      Certificate that was in fact not a Permitted Transferee at the time it
      became a Holder or, at such subsequent time as it became other than a
      Permitted Transferee, all payments made on such Class A-R Certificate at
      and after either such time. Any such payments so recovered by the
      Trustee shall be paid and delivered by the Trustee to the last preceding
      Permitted Transferee of such Certificate.

                                     I-5
<PAGE>

            (5) The Master Servicer shall use its best efforts to make
      available, upon receipt of written request from the Trustee, all
      information necessary to compute any tax imposed under section 860E(e)
      of the Code as a result of a Transfer of an Ownership Interest in a
      Class A-R Certificate to any Holder who is not a Permitted Transferee.

            The restrictions on Transfers of a Class A-R Certificate set forth
in this Section 5.02(c) shall cease to apply (and the applicable portions of
the legend on a Class A-R Certificate may be deleted) with respect to
Transfers occurring after delivery to the Trustee of an Opinion of Counsel,
which Opinion of Counsel shall not be an expense of the Trustee, the Sellers
or the Master Servicer to the effect that the elimination of such restrictions
will not cause any constituent REMIC of any REMIC formed hereunder to fail to
qualify as a REMIC at any time that the Certificates are outstanding or result
in the imposition of any tax on the Trust Fund, a Certificateholder or another
Person. Each Person holding or acquiring any ownership Interest in a Class A-R
Certificate hereby consents to any amendment of this Agreement that, based on
an Opinion of Counsel furnished to the Trustee, is reasonably necessary (a) to
ensure that the record ownership of, or any beneficial interest in, a Class
A-R Certificate is not transferred, directly or indirectly, to a Person that
is not a Permitted Transferee and (b) to provide for a means to compel the
Transfer of a Class A-R Certificate that is held by a Person that is not a
Permitted Transferee to a Holder that is a Permitted Transferee.

                                     I-6
<PAGE>

                                  EXHIBIT J-1

          FORM OF TRANSFEROR CERTIFICATE FOR CLASS A-R CERTIFICATES

                                     Date:

CWABS, Inc.
as Depositor
4500 Park Granada
Calabasas, California  91302

The Bank of New York
as Trustee
101 Barclay Street
New York, New York  10286

            Re:   CWABS, Inc. Asset Backed
                  Certificates, Series 2006-3
                  ---------------------------

Ladies and Gentlemen:

            In connection with our disposition of the Class A-R Certificates,
we certify that we have no knowledge that the Transferee is not a Permitted
Transferee. All capitalized terms used herein but not defined herein shall
have the meanings assigned to them in the Pooling and Servicing Agreement
dated as of February 1, 2006, among CWABS, Inc., as Depositor, Countrywide
Home Loans, Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC,
as a Seller, Countrywide Home Loans Servicing LP, as Master Servicer, The Bank
of New York Trust Company, N.A., as Co-Trustee, and The Bank of New York, as
Trustee.

                                    Very truly yours,

                                    -------------------------------------
                                    Name of Transferor

                                    By:
                                       ----------------------------------
                                    Name:
                                    Title:

                                    J-1-1
<PAGE>

                                  EXHIBIT J-2

                      FORM OF TRANSFEROR CERTIFICATE FOR
                             PRIVATE CERTIFICATES

                                     Date:

CWABS, Inc.,
      as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
      as Trustee
101 Barclay Street
New York, New York  10286

            Re:   CWABS, Inc. Asset-Backed Certificates,
                  Series 2006-3, Class [   ]

Ladies and Gentlemen:

            In connection with our disposition of the above-captioned
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. All capitalized terms used herein but not
defined herein shall have the meanings assigned to them in the Pooling and
Servicing Agreement dated as of February 1, 2006, among CWABS, Inc., as
Depositor, Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc., as a
Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans Servicing LP, as
Master Servicer, The Bank of New York Trust Company, N.A., as Co-Trustee and
The Bank of New York, as Trustee.

                                    Very truly yours,

                                    ----------------------------------
                                    Name of Transferor

                                    By:
                                        ------------------------------
                                    Name:
                                    Title:

                                    J-2-1
<PAGE>

                                   EXHIBIT K

                   FORM OF INVESTMENT LETTER (NON-RULE 144A)

                                     Date:

CWABS, Inc.,
      as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
      as Trustee
101 Barclay St., 8W
New York, New York  10286

            Re:   CWABS, Inc. Asset-Backed Certificates,
                  Series 2006-3, Class [   ]

Ladies and Gentlemen:

            In connection with our acquisition of the above-captioned
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) either (i) we are
not an employee benefit plan that is subject to the Employee Retirement Income
Security Act of 1974, as amended, or a plan or arrangement that is subject to
Section 4975 of the Internal Revenue Code of 1986, as amended, nor are we
acting on behalf of any such plan or arrangement, or using the assets of any
such plan or arrangement to effect such acquisition or (ii) if the
Certificates have been the subject of an ERISA-Qualifying Underwriting, we are
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 the purchase and holding of such Certificates are covered under
Sections I and III of PTCE 95-60, (e) 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),
(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, and (g) we will not sell,
transfer or otherwise dispose of any

                                     K-1
<PAGE>

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.

            All capitalized terms used herein but not defined herein shall
have the meanings assigned to them in the Pooling and Servicing Agreement
dated as of February 1, 2006, among CWABS, Inc., as Depositor, Countrywide
Home Loans, Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC,
as a Seller, Countrywide Home Loans Servicing LP, as Master Servicer, The Bank
of New York Trust Company, N.A., as Co-Trustee, and The Bank of New York, as
Trustee.

                                    Very truly yours,

                                    ----------------------------------
                                    Name of Transferee

                                    By:
                                       -------------------------------
                                         Authorized Officer

                                     K-2
<PAGE>

                                   EXHIBIT L

                           FORM OF RULE 144A LETTER

                                     Date:

CWABS, Inc.,
      as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
      as Trustee
101 Barclay Street
New York, New York  10286

            Re:   CWABS, Inc. Asset-Backed Certificates,
                  Series 2006-3, Class [   ]

Ladies and Gentlemen:

            In connection with our acquisition of the above-captioned
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 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) either (i) we are
not an employee benefit plan that is subject to the Employee Retirement Income
Security Act of 1974, as amended, or a plan or arrangement that is subject to
Section 4975 of the Internal Revenue Code of 1986, as amended, nor are we
acting on behalf of any such plan or arrangement, or using the assets of any
such plan or arrangement to effect such acquisition or (ii) if the
Certificates have been the subject of an ERISA-Qualifying Underwriting, we are
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 the purchase and holding of such Certificates are covered under
Sections I and III of PTCE 95-60, (e) 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

                                     L-1
<PAGE>

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, (f) 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.

            All capitalized terms used herein but not defined herein shall
have the meanings assigned to them in the Pooling and Servicing Agreement
dated as of February 1, 2006, among CWABS, Inc., as Depositor, Countrywide
Home Loans, Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC,
as a Seller, Countrywide Home Loans Servicing LP, as Master Servicer, The Bank
of New York Trust Company, N.A., as Co-Trustee, and The Bank of New York, as
Trustee.

                                    Very truly yours,

                                    ----------------------------------
                                    Name of Transferee

                                    By:
                                       -------------------------------
                                         Authorized Officer

                                     L-2
<PAGE>

                             ANNEX 1 TO EXHIBIT L

           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:

      As indicated below, the undersigned is the President, Chief Financial
         Officer, Senior Vice President or other executive officer of the
         Buyer.

      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 either at least
         $100,000,000 in securities or, if Buyer is a dealer, Buyer must own
         and/or invest on a discretionary basis at least $10,000,000 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.

         ___  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

                                     L-3
<PAGE>

              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.

      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.

      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.

      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.

                                     L-4
<PAGE>

      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:
                                          ------------------------------------

                                     L-5
<PAGE>

                                                          ANNEX 2 TO EXHIBIT L
                                                          --------------------

           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.

      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).

   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).

   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

                                     L-6
<PAGE>

      agreements, (vi) securities owned but subject to a repurchase agreement
      and (vii) currency, interest rate and commodity swaps.

   The Buyer is familiar with Rule 144A and under-stands 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.

   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:
                                         --------------------------------------

                                      L-7
<PAGE>

                                   EXHIBIT M

                     FORM OF REQUEST FOR DOCUMENT RELEASE

Loan Information

      Name of Mortgagor:
                                          ------------------------------------

      Master Servicer
      Loan No.:
                                          ------------------------------------

Co-Trustee

      Name:
                                          ------------------------------------

      Address:
                                          ------------------------------------

                                          ------------------------------------
      Co-Trustee
      Mortgage File No.:
                                          ------------------------------------

            The undersigned Master Servicer hereby acknowledges that it has
received from _______________________________________, as Co-Trustee for the
Holders of Asset-Backed Certificates, Series 2006-3, the documents referred to
below (the "Documents"). All capitalized terms not otherwise defined in this
Request for Document Release shall have the meanings given them in the Pooling
and Servicing Agreement dated as of February 1, 2006 (the "Pooling and
Servicing Agreement") among CWABS, Inc., as Depositor, Countrywide Home Loans,
Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a
Seller, Countrywide Home Loans Servicing LP, as Master Servicer, The Bank of
New York, as Trustee, and The Bank of New York Trust Company, N.A., as
Co-Trustee.

( )   Mortgage Note dated ___________, ____, in the original principal sum
      of $________, made by __________________, payable to, or endorsed to the
      order of, the Trustee.

(  )  Mortgage recorded on _________________ as instrument no.
      ________________ in the County Recorder's Office of the County of
      ________________, State of _______________ in book/reel/docket
      _______________ of official records at page/image _____________.

(  )  Deed of Trust recorded on _________________ as instrument no.
      ________________ in the County Recorder's Office of the County of
      ________________, State of _______________ in book/reel/docket
      _______________ of official records at page/image _____________.

(  )  Assignment of Mortgage or Deed of Trust to the Trustee, recorded on
      _________________ as instrument no. __________ in the County Recorder's
      Office of

                                     M-1
<PAGE>

      the County of __________, State of _______________ in book/reel/docket
      _______________ of official records at page/image _____________.

(  )  Other documents, including any amendments, assignments or other
      assumptions of the Mortgage Note or Mortgage.

(  )  ______________________________________________

(  )  ______________________________________________

(  )  ______________________________________________

(  )  ______________________________________________

            The undersigned Master Servicer hereby acknowledges and agrees as
follows:

            (1) The Master Servicer shall hold and retain possession of the
      Documents in trust for the benefit of the Trust Fund, solely for the
      purposes provided in the Pooling and Servicing Agreement.

            (2) The Master Servicer shall not cause or knowingly permit the
      Documents to become subject to, or encumbered by, any claim, liens,
      security interest, charges, writs of attachment or other impositions nor
      shall the Master Servicer assert or seek to assert any claims or rights
      of setoff to or against the Documents or any proceeds thereof.

            (3) The Master Servicer shall return each and every Document
      previously requested from the Mortgage File to the Co-Trustee when the
      need therefor no longer exists, unless the Mortgage Loan relating to the
      Documents has been liquidated and the proceeds thereof have been
      remitted to the Certificate Account and except as expressly provided in
      the Pooling and Servicing Agreement.

            (4) The Documents and any proceeds thereof, including any proceeds
      of proceeds, coming into the possession or control of the Master
      Servicer shall at all times be earmarked for the account of the Trust
      Fund, and the Master Servicer shall keep the Documents and any proceeds
      separate and distinct from all other property in the Master Servicer's
      possession, custody or control.

                                    [Master Servicer]

                                    By   _____________________________________

                                    Its  _____________________________________

                                    Date: _________________, ____

                                     M-2
<PAGE>

                                   EXHIBIT N

                       FORM OF REQUEST FOR FILE RELEASE

                    OFFICER'S CERTIFICATE AND TRUST RECEIPT
                          ASSET-BACKED CERTIFICATES,
                                 Series 2006-3

__________________________________________ HEREBY CERTIFIES THAT HE/SHE IS AN
OFFICER OF THE MASTER SERVICER, HOLDING THE OFFICE SET FORTH BENEATH HIS/HER
SIGNATURE, AND HEREBY FURTHER CERTIFIES AS FOLLOWS:

WITH RESPECT TO THE MORTGAGE LOANS, AS THE TERM IS DEFINED IN THE POOLING AND
SERVICING AGREEMENT DESCRIBED IN THE ATTACHED SCHEDULE:

[ALL PAYMENTS OF PRINCIPAL AND INTEREST HAVE BEEN MADE.] [THE PURCHASE PRICE
FOR SUCH MORTGAGE LOANS HAS BEEN PAID.] [THE MORTGAGE LOANS HAVE BEEN
LIQUIDATED AND THE RELATED [INSURANCE PROCEEDS] [LIQUIDATION PROCEEDS] HAVE
BEEN DEPOSITED PURSUANT TO SECTION 3.13 OF THE POOLING AND SERVICING
AGREEMENT.] [A REPLACEMENT MORTGAGE LOAN HAS BEEN DELIVERED TO THE TRUSTEE IN
THE MANNER AND OTHERWISE IN ACCORDANCE WITH THE CONDITIONS SET FORTH IN
SECTIONS 2.02 AND 2.03 OF THE POOLING AND SERVICING AGREEMENT.]

LOAN NUMBER:_______________         BORROWER'S NAME:_____________

COUNTY:____________________

[For Substitution or Repurchase Only: The Master Servicer certifies that [an]
[no] opinion is required by Section 2.05 [and is attached hereto].]

I HEREBY CERTIFY THAT ALL AMOUNTS RECEIVED IN CONNECTION WITH SUCH PAYMENTS,
THAT ARE REQUIRED TO BE DEPOSITED IN THE CERTIFICATE ACCOUNT PURSUANT TO
SECTION 3.05 OF THE POOLING AND SERVICING AGREEMENT, HAVE BEEN OR WILL BE
CREDITED.

____________                        _____________________
                                    DATED:____________

/ /                                 VICE PRESIDENT
/ /                                 ASSISTANT VICE PRESIDENT

                                     N-1
<PAGE>

                                                                     Exhibit O

                           Exhibit O is a photocopy
                          of the Depository Agreement
                                 as delivered.

              [See appropriate documents delivered at closing.]

                                     O-1
<PAGE>

                                   EXHIBIT P

                     FORM OF SUBSEQUENT TRANSFER AGREEMENT

            SUBSEQUENT TRANSFER AGREEMENT, dated as of ____________, 200[_]
(this "Subsequent Transfer Agreement"), among CWABS, INC., a Delaware
corporation, as depositor (the "Depositor"), COUNTRYWIDE HOME LOANS, INC., a
New York corporation, in its capacity as a seller under the Pooling and
Servicing Agreement referred to below ("CHL"), PARK MONACO INC., a Delaware
corporation, in its capacity as a seller under the Pooling and Servicing
Agreement ("Park Monaco"), PARK SIENNA LLC, a Delaware limited liability
company, in its capacity as a seller under the Pooling and Servicing Agreement
("Park Sienna" and, together with CHL and Park Monaco, the "Sellers") and The
Bank of New York, a New York banking corporation, as trustee (the "Trustee");

            WHEREAS, the Depositor, CHL, Park Monaco, Park Sienna, the
Trustee, Countrywide Home Loans Servicing LP, as Master Servicer, and The Bank
of New York Trust Company N.A., as Co-Trustee, have entered in the Pooling and
Servicing Agreement, dated as of February 1, 2006 (the "Pooling and Servicing
Agreement"), relating to the CWABS, Inc. Asset-Backed Certificates, Series
2006-3 (capitalized terms not otherwise defined herein are used as defined in
the Pooling and Servicing Agreement);

            WHEREAS, Section 2.01(b) of the Pooling and Servicing Agreement
provides for the parties hereto to enter into this Subsequent Transfer
Agreement in accordance with the terms and conditions of the Pooling and
Servicing Agreement;

            NOW, THEREFORE, in consideration of the premises and for other
good and valuable consideration the receipt and adequacy of which are hereby
acknowledged the parties hereto agree as follows:

            (a) The "Subsequent Transfer Date" with respect to this Subsequent
Transfer Agreement shall be ________ __, 200[_].

            (b) The "Subsequent Transfer Date Purchase Amount" with respect to
this Subsequent Transfer Agreement shall be $_______________.

            (c) The Subsequent Mortgage Loans conveyed on the Subsequent
Transfer Date shall be subject to the terms and conditions of the Pooling and
Servicing Agreement.

            (d) Annex I hereto sets forth a list of the Mortgage Loans which
are Delay Delivery Mortgage Loans.

            (e) In case any provision of this Subsequent Transfer Agreement
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions or obligations shall not in any way
be affected or impaired thereby.

            (f) In the event of any conflict between the provisions of this
Subsequent Transfer Agreement and the Pooling and Servicing Agreement, the
provisions of the Pooling and Servicing Agreement shall prevail.

                                     P-1
<PAGE>

            (g) This Subsequent Transfer Agreement shall be governed by, and
shall be construed and enforced in accordance with the laws of the State of
New York.

            (h) The Subsequent Transfer Agreement may be executed in one or
more counterparts, each of which so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument.

                                     P-2
<PAGE>

            IN WITNESS WHEREOF, the parties to this Subsequent Transfer
Agreement have caused their names to be signed hereto by their respective
officers thereunto duly authorized as of the day and year first above written.

                                       CWABS, INC.,
                                          as Depositor

                                       By:
                                          -------------------------------
                                          Name:
                                          Title:

                                       COUNTRYWIDE HOME LOANS, INC.,
                                          as a Seller

                                       By:
                                          -------------------------------
                                          Name:
                                          Title:

                                       PARK MONACO INC.,
                                          as a Seller

                                       By:
                                          -------------------------------
                                          Name:
                                          Title:

                                       PARK SIENNA LLC,
                                           as a Seller

                                       By:
                                          -------------------------------
                                          Name:
                                          Title:

                                     P-3
<PAGE>

                                       THE BANK OF NEW YORK,
                                          not in its individual capacity,
                                          but solely as Trustee

                                       By:
                                          -------------------------------
                                          Name:
                                          Title:

                                     P-4
<PAGE>

                                                                       Annex I

  Mortgage Loans for which All or a Portion of a Related Mortgage File is not
     Delivered to the Trustee on or prior to the Subsequent Transfer Date

                                     P-5
<PAGE>

                                   EXHIBIT Q

                                  [RESERVED]

                                     Q-1
<PAGE>

                                   EXHIBIT R

                                  [RESERVED]

                                     R-1
<PAGE>

                                  EXHIBIT S-1

                                  [RESERVED]

                                    S-1-1
<PAGE>

                                  EXHIBIT S-2

                                  [RESERVED]

                                    S-2-1
<PAGE>

                                   EXHIBIT T

              OFFICER'S CERTIFICATE WITH RESPECT TO PREPAYMENTS

                          ASSET-BACKED CERTIFICATES,
                                 Series 2006-3

                                       [Date]

Via Facsimile

The Bank of New York,
      as Trustee
101 Barclay Street
New York, New York  10286

Dear Sir or Madam:

            Reference is made to the Pooling and Servicing Agreement, dated as
of February 1, 2006, (the "Pooling and Servicing Agreement") among CWABS,
Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller, Park Monaco
Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans
Servicing LP, as Master Servicer, The Bank of New York Trust Company, N.A., as
Co-Trustee and The Bank of New York, as Trustee. Capitalized terms used herein
shall have the meanings ascribed to such terms in the Pooling and Servicing
Agreement.

            __________________ hereby certifies that he/she is a Servicing
Officer, holding the office set forth beneath his/her name and hereby further
certifies as follows:

            With respect to the Distribution Date in _________ 20[ ] and each
Mortgage Loan set forth in the attached schedule:

            1. A Principal Prepayment in full or in part was received during
the related Prepayment Period;

            2. Any Prepayment Charge due under the terms of the Mortgage Note
with respect to such Principal Prepayment was or was not, as indicated on the
attached schedule using "Yes" or "No", received from the Mortgagor and
deposited in the Certificate Account;

            3. As to each Mortgage Loan set forth on the attached schedule for
which all or part of the Prepayment Charge required in connection with the
Principal Prepayment was waived by the Master Servicer, such waiver was, as
indicated on the attached schedule, based upon:

                (i) the Master Servicer's determination that such waiver would
      maximize recovery of Liquidation Proceeds for such Mortgage Loan, taking
      into account the value of such Prepayment Charge, or

                                     T-1
<PAGE>

                (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; and

            4. We certify that all amounts due in connection with the waiver
of a Prepayment Charge inconsistent with clause 3 above which are required to
be deposited by the Master Servicer pursuant to Section 3.20 of the Pooling
and Servicing Agreement, have been or will be so deposited.

                                       COUNTRYWIDE HOME LOANS, INC.,
                                         as Master Servicer

                                       By:
                                          -----------------------------------
                                          Name:
                                          Title:

                                     T-2
<PAGE>

   SCHEDULE OF MORTGAGE LOANS FOR WHICH A PREPAYMENT WAS RECEIVED DURING THE
                           RELATED PREPAYMENT PERIOD

--------------------------------------------------------------------------------
Loan Number                 Clause 2:  Yes/No          Clause 3:  (i) or (ii)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

                                     T-3
<PAGE>

                                   EXHIBIT U

                             FORM OF SWAP CONTRACT

                     [See document delivered at closing.]

                                     U-1
<PAGE>

                                  EXHIBIT V-1

                  FORM OF SWAP CONTRACT ASSIGNMENT AGREEMENT

                     [See document delivered at closing.]

                                    V-1-1
<PAGE>

                                  EXHIBIT V-2

                FORM OF SWAP CONTRACT ADMINISTRATION AGREEMENT

                     [See document delivered at closing.]

                                    V-2-1
<PAGE>

                                  EXHIBIT V-3

                            FORM OF SWAP GUARANTEE

                     [See document delivered at closing.]

                                    V-3-1
<PAGE>

                                   EXHIBIT W

                               MONTHLY STATEMENT

                            [On file with Trustee]

                                     W-1
<PAGE>

                                  EXHIBIT X-1

                       FORM OF PERFORMANCE CERTIFICATION
                                 (Subservicer)

                            [On file with Trustee]

<PAGE>

                                  EXHIBIT X-2

                       FORM OF PERFORMANCE CERTIFICATION
                                   (Trustee)

                            [On file with Trustee]

<PAGE>

                                   EXHIBIT Y

                                    FORM OF
                     SERVICING CRITERIA TO BE ADDRESSED IN
                      ASSESSMENT OF COMPLIANCE STATEMENT

            The assessment of compliance to be delivered by [the Master
Servicer] [Trustee] [Name of Subservicer] shall address, at a minimum, the
criteria identified as below as "Applicable Servicing Criteria":

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------ ----------------------
                                                                                           Applicable Servicing
                                   Servicing Criteria                                            Criteria
------------------------------------------------------------------------------------------ ----------------------
     Reference                                     Criteria
-------------------- --------------------------------------------------------------------- ----------------------
<S>                  <C>                                                                   <C>
                                       General Servicing Considerations
--------------------                                                                       ----------------------
                     Policies and procedures are instituted to monitor any
                     performance or other triggers and events of default in
1122(d)(1)(i)        accordance with the transaction agreements.
--------------------                                                                       ----------------------
                     If any material servicing activities are outsourced to
                     third parties, policies and procedures are instituted to
                     monitor the third party's performance and compliance with
1122(d)(1)(ii)       such servicing activities.
--------------------                                                                       ----------------------
                     Any requirements in the transaction agreements to
                     maintain a back-up servicer for the mortgage loans are
1122(d)(1)(iii)      maintained.
--------------------                                                                       ----------------------
                     A fidelity bond and errors and omissions policy is in
                     effect on the party participating in the servicing
                     function throughout the reporting period in the amount of
                     coverage required by and otherwise in accordance with the
1122(d)(1)(iv)       terms of the transaction agreements.
--------------------                                                                       ----------------------
                                      Cash Collection and Administration
--------------------                                                                       ----------------------
                     Payments on mortgage loans are deposited into the
                     appropriate custodial bank accounts and related bank
                     clearing accounts no more than two business days
                     following receipt, or such other number of days specified
1122(d)(2)(i)        in the transaction agreements.
--------------------                                                                       ----------------------
                     Disbursements made via wire transfer on behalf of an
                     obligor or to an investor are made only by authorized
1122(d)(2)(ii)       personnel.
--------------------                                                                       ----------------------
                     Advances of funds or guarantees regarding collections,
                     cash flows or distributions, and any interest or other
                     fees charged for such advances, are made, reviewed and
1122(d)(2)(iii)      approved as specified in the transaction agreements.
--------------------                                                                       ----------------------
                     The related accounts for the transaction, such as cash
                     reserve accounts or accounts established as a form of
                     overcollateralization, are separately maintained (e.g.,
                     with respect to commingling of cash) as set forth in the
                     transaction agreements.
1122(d)(2)(iv)
--------------------                                                                       ----------------------
                     Each custodial account is maintained at a federally
                     insured depository institution as set forth in the
                     transaction agreements. For purposes of this criterion,
                     "federally insured depository institution" with respect
                     to a foreign financial institution means a foreign
                     financial institution that meets the requirements of Rule
1122(d)(2)(v)        13k-1(b)(1) of the Securities Exchange Act.
--------------------                                                                       ----------------------
                     Unissued checks are safeguarded so as to prevent
1122(d)(2)(vi)       unauthorized access.

--------------------                                                                       ----------------------
</TABLE>

                                     Y-1
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------ ----------------------
                                                                                           Applicable Servicing
                                   Servicing Criteria                                            Criteria
------------------------------------------------------------------------------------------ ----------------------
     Reference                                     Criteria
-------------------- --------------------------------------------------------------------- ----------------------
<S>                  <C>                                                                   <C>
1122(d)(2)(vii)      Reconciliations are prepared on a monthly basis for all
                     asset-backed securities related bank accounts, including
                     custodial accounts and related bank clearing accounts.
                     These reconciliations are (A) mathematically accurate;
                     (B) prepared within 30 calendar days after the bank
                     statement cutoff date, or such other number of days
                     specified in the transaction agreements; (C) reviewed and
                     approved by someone other than the person who prepared
                     the reconciliation; and (D) contain explanations for
                     reconciling items. These reconciling items are resolved
                     within 90 calendar days of their original identification,
                     or such other number of days specified in the transaction
                     agreements.
--------------------                                                                       ----------------------
                                      Investor Remittances and Reporting
--------------------                                                                       ----------------------
1122(d)(3)(i)        Reports to investors, including those to be filed with
                     the Commission, are maintained in accordance with the
                     transaction agreements and applicable Commission
                     requirements. Specifically, such reports (A) are prepared
                     in accordance with timeframes and other terms set forth
                     in the transaction agreements; (B) provide information
                     calculated in accordance with the terms specified in the
                     transaction agreements; (C) are filed with the Commission
                     as required by its rules and regulations; and (D) agree
                     with investors' or the trustee's records as to the total
                     unpaid principal balance and number of mortgage loans
                     serviced by the Servicer.
--------------------                                                                       ----------------------
1122(d)(3)(ii)       Amounts due to investors are allocated and remitted in
                     accordance with timeframes, distribution priority and
                     other terms set forth in the transaction agreements.
--------------------                                                                       ----------------------
                     Disbursements made to an investor are posted within two
                     business days to the Servicer's investor records, or such
                     other number of days specified in the transaction
1122(d)(3)(iii)      agreements.
--------------------                                                                       ----------------------
                     Amounts remitted to investors per the investor reports
                     agree with cancelled checks, or other form of payment, or
                     custodial bank statements.
1122(d)(3)(iv)
--------------------                                                                       ----------------------
                                          Pool Asset Administration
--------------------                                                                       ----------------------
1122(d)(4)(i)        Collateral or security on mortgage loans is maintained as
                     required by the transaction agreements or related
                     mortgage loan documents.
--------------------                                                                       ----------------------
                     Mortgage loan and related documents are safeguarded as
1122(d)(4)(ii)       required by the transaction agreements
--------------------                                                                       ----------------------
1122(d)(4)(iii)      Any additions, removals or substitutions to the asset
                     pool are made, reviewed and approved in accordance with
                     any conditions or requirements in the transaction
                     agreements.
--------------------                                                                       ----------------------
1122(d)(4)(iv)       Payments on mortgage loans, including any payoffs, made
                     in accordance with the related mortgage loan documents
                     are posted to the Servicer's obligor records maintained
                     no more than two business days after receipt, or such
                     other number of days specified in the transaction
                     agreements, and allocated to principal, interest or other
                     items (e.g., escrow) in accordance with the related
                     mortgage loan documents.
--------------------                                                                       ----------------------
1122(d)(4)(v)        The Servicer's records regarding the mortgage loans agree
                     with the Servicer's records with respect to an obligor's
                     unpaid principal balance.
--------------------                                                                       ----------------------
1122(d)(4)(vi)       Changes with respect to the terms or status of an
                     obligor's mortgage loans (e.g., loan modifications or
                     re-agings) are made, reviewed and approved by authorized
                     personnel in accordance with the transaction agreements
                     and related pool asset documents.
--------------------                                                                       ----------------------
1122(d)(4)(vii)      Loss mitigation or recovery actions (e.g., forbearance
                     plans, modifications and deeds in lieu of foreclosure,
                     foreclosures and repossessions, as applicable) are
                     initiated, conducted and concluded in accordance with the
                     timeframes or other requirements established by the
                     transaction agreements.
--------------------                                                                       ----------------------
</TABLE>

                                     Y-2
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------ ----------------------
                                                                                           Applicable Servicing
                                   Servicing Criteria                                            Criteria
------------------------------------------------------------------------------------------ ----------------------
     Reference                                     Criteria
-------------------- --------------------------------------------------------------------- ----------------------
<S>                  <C>                                                                   <C>
1122(d)(4)(viii)     Records documenting collection efforts are maintained
                     during the period a mortgage loan is delinquent in
                     accordance with the transaction agreements. Such records
                     are maintained on at least a monthly basis, or such other
                     period specified in the transaction agreements, and
                     describe the entity's activities in monitoring delinquent
                     mortgage loans including, for example, phone calls,
                     letters and payment rescheduling plans in cases where
                     delinquency is deemed temporary (e.g., illness or
                     unemployment).
--------------------                                                                       ----------------------
1122(d)(4)(ix)       Adjustments to interest rates or rates of return for
                     mortgage loans with variable rates are computed based on
                     the related mortgage loan documents.
--------------------                                                                       ----------------------
1122(d)(4)(x)        Regarding any funds held in trust for an obligor (such as
                     escrow accounts): (A) such funds are analyzed, in
                     accordance with the obligor's mortgage loan documents, on
                     at least an annual basis, or such other period specified
                     in the transaction agreements; (B) interest on such funds
                     is paid, or credited, to obligors in accordance with
                     applicable mortgage loan documents and state laws; and
                     (C) such funds are returned to the obligor within 30
                     calendar days of full repayment of the related mortgage
                     loans, or such other number of days specified in the
                     transaction agreements.
--------------------                                                                       ----------------------
1122(d)(4)(xi)       Payments made on behalf of an obligor (such as tax or
                     insurance payments) are made on or before the related
                     penalty or expiration dates, as indicated on the
                     appropriate bills or notices for such payments, provided
                     that such support has been received by the servicer at
                     least 30 calendar days prior to these dates, or such
                     other number of days specified in the transaction
                     agreements.
--------------------                                                                       ----------------------
1122(d)(4)(xii)      Any late payment penalties in connection with any payment
                     to be made on behalf of an obligor are paid from the
                     servicer's funds and not charged to the obligor, unless
                     the late payment was due to the obligor's error or
                     omission.
--------------------                                                                       ----------------------
                     Disbursements made on behalf of an obligor are posted
                     within two business days to the obligor's records
                     maintained by the servicer, or such other number of days
                     specified in the transaction agreements.
1122(d)(4)(xiii)
--------------------                                                                       ----------------------
1122(d)(4)(xiv)      Delinquencies, charge-offs and uncollectible accounts are
                     recognized and recorded in accordance with the
                     transaction agreements.
--------------------                                                                       ----------------------
                     Any external enhancement or other support, identified in
                     Item 1114(a)(1) through (3) or Item 1115 of Regulation
                     AB, is maintained as set forth in the transaction agreements.
1122(d)(4)(xv)
-------------------- --------------------------------------------------------------------- ----------------------

-------------------- --------------------------------------------------------------------- ----------------------
</TABLE>

                                       [NAME OF MASTER SERVICER] [NAME OF
                                       TRUSTEE] [NAME OF SUBSERVICER]

                                       Date:
                                             -------------------------

                                       By:
                                              --------------------------------
                                       Name:
                                       Title:

                                     Y-3
<PAGE>

                                   EXHIBIT Z

                      [FORM OF] LIST OF ITEM 1119 PARTIES

                          ASSET BACKED CERTIFICATES,
                                Series 200_-__

                                       [Date]

-------------------------------------------------------------------------------
Party                       Contact Information
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------

                                     Z-1
<PAGE>

                                  EXHIBIT AA

                                    FORM OF
                         SARBANES-OXLEY CERTIFICATION
                         (Replacement Master Servicer)

                            (On file with Trustee)

                                     AA-1
<PAGE>

                                  SCHEDULE I

           PREPAYMENT CHARGE SCHEDULE AND PREPAYMENT CHARGE SUMMARY

       [Delivered to Trustee at closing and on file with the Trustee.]

                                    S-I-1
<PAGE>

<TABLE>
<CAPTION>

                                                            SCHEDULE II

                                                        COLLATERAL SCHEDULE

---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
                                                              Applicable
Characteristic                                                 Section        Loan Group 1      Loan Group 2      Loan Group 3
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
<S>                                                          <C>                <C>              <C>               <C>
Single-Family Detached Dwellings                             2.03(b)(32)         76.02%            70.52%            75.71%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Two- to Four-Family Dwellings                                2.03(b)(32)          4.96%            3.23%             9.61%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Low-Rise Condominium Units                                   2.03(b)(32)          5.13%            6.00%             8.35%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
High-Rise Condominium Units                                  2.03(b)(32)          0.19%            0.49%             0.00%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Manufactured Housing                                         2.03(b)(32)          0.00%            0.56%             1.04%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
PUDs                                                         2.03(b)(32)         13.69%            19.19%            4.28%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Earliest Origination Date                                    2.03(b)(33)        3/31/1999        8/31/1998         12/1/2004
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Prepayment Penalty                                           2.03(b)(35)         67.62%            76.02%            95.45%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Investor Properties                                          2.03(b)(36)          4.84%            1.44%             4.20%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Primary Residences                                           2.03(b)(36)         94.16%            98.33%            95.70%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Lowest Current Mortgage Rate                                 2.03(b)(48)         4.375%            4.375%            5.25%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Highest Current Mortgage Rate                                2.03(b)(48)         14.250%          13.625%            10.25%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Weighted Average Current Mortgage Rate                       2.03(b)(48)         7.983%            7.913%            7.487%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Lowest Gross Margin                                          2.03(b)(51)         2.500%            2.750%            3.950%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Highest Gross Margin                                         2.03(b)(51)         11.350%          10.820%            8.800%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Weighted Average Gross Margin                                2.03(b)(51)         6.733%            6.814%            6.536%
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------
Date on or before which each Initial Mortgage Loan has a
Due Date                                                     2.03(b)(52)        4/1/2006          4/1/2006          4/1/2006
---------------------------------------------------------- ----------------- ---------------- ----------------- -----------------

<CAPTION>
------------------ ----------------- ---------------------------- ---------------- ----------------- ----------------
                                            Adjustable Rate
                                         Mortgage Loans (other        Two-Year         Three-Year        Five-Year
                                         than Two-Year, Three-         Hybrid       Hybrid Mortgage       Hybrid
 Adjustment Date       Applicable         Year and Five-Year       Mortgage Loans        Loans        Mortgage Loans
                        Section         Hybrid Mortgage Loans)
------------------- ----------------- ---------------------------- ---------------- ----------------- ----------------
   <S>                <C>                      <C>                    <C>               <C>              <C>
   Latest Next
    Adjustment
       Date           2.03(b)(34)              9/1/2006               3/1/2008          3/1/2009         2/1/2011
------------------- ----------------- ---------------------------- ---------------- ----------------- ----------------
</TABLE>

                                                              S-II-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]