Document:

Exhibit 4.1

    Exhibit
      4.1

     

    

    LOAN
      AGREEMENT AND CONVERTIBLE PROMISSORY NOTE

     

    

    THIS
      LOAN
      AGREEMENT AND CONVERTIBLE PROMISSORY NOTE, dated as of September 30, 2006 (the
      “Note”),
      between EQUICAP, INC., a Nevada Corporation (the "Maker"),
      having an address at 5528 Westcott Circle, Frederick, MD 21703 and Fountainhead
      Capital Partners Limited (the "Payee"),
      having an address at c/o Jordans (C.I.) Limited, Portman House, Hue Street,
      St.
      Helier, Jersey JE4 5RP. Each of the Maker and the Payee are referred to herein
      as a “Party”,
      and
      collectively as the “Parties.”

    

    WHEREAS,
      as of September 30, 2006, Payee had advanced funds to the Maker in the total
      amount of $99,896.00 (the “Loans”)
      for
      its corporate purposes, on the terms and conditions set forth therein;
      and

    

    WHEREAS,
      the Parties desire to evidence the amount due thereunder by this Loan Agreement
      and Convertible Promissory Note (“Note”)
      which
      shall accrue interest at a rate of 3% per annum.

    

    NOW
      THEREFORE, in consideration of the premises, and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto hereby agree as follows:

    

    1. The
      Maker, unconditionally promises to pay to the order of the Payee, the principal
      sum of the Loans together with accrued interest thereon from the date of
      issuance hereof. The Maker further agrees to pay all costs of collection,
      including reasonable attorneys' fees, incurred by the Payee or by any other
      holder of this Note in any action to collect this Note, whether or not suit
      is
      brought.

    

    3. Principal
      and accrued interest shall be payable on December 31, 2006. Maker shall have
      the
      right at any time to prepay, in whole or in part, the principal and accrued
      interest without penalty upon fifteen (15) days prior written notice to the
      Payee.

    

    4. The
      amounts due hereunder are payable without deduction or offset in lawful money
      of
      the United States of America in immediately available funds to the Payee at
      its
      address as set forth above, or at such other place as the holder of this Note
      shall from time to time designate. 

    

    5. It
      shall
      be an event of default (“Event
      of Default”),
      and
      the then unpaid portion of this Note shall become immediately due and payable,
      at the election of Payee, upon the occurrence of any of the following
      events:

     

    (a) any
      failure on the part of Maker to make any payment hereunder when due, whether
      by
      acceleration or otherwise;

    

    (b) Maker
      shall commence (or take any action for the purpose of commencing) any proceeding
      under any bankruptcy, reorganization, arrangement, readjustment of debt,
      moratorium or similar law or statute; or

    

    (c) a
      proceeding shall be commenced against Maker under any bankruptcy,
      reorganization, arrangement, readjustment of debt, moratorium or similar law
      or
      statute and relief is ordered against Maker, or the proceeding is controverted
      but is not dismissed within sixty (60) days after the commencement
      thereof.

    

    6. The
      principal balance of this Note and all accrued interest hereunder shall be
      convertible, in whole or in part, into shares of the Maker’s common stock in the
      manner described below at the option of the Payee or other holder hereof at
      any
      time prior to maturity, upon ten (10) days advance written notice to the Maker.
      The number of shares of the Maker’s common stock issuable upon such conversion
      shall be determined by the Board of Directors
      of the Company based on what it determines the fair market value of the Company
      is at the time of such conversion. Upon conversion, this Note shall be canceled
      and a replacement note on identical terms shall be promptly issued by the maker
      to the holder hereof to evidence the remaining outstanding principal amount
      hereof as of the date of the conversion, if applicable. In the event of a
      stock-split, combination, stock dividend, recapitalization of the Maker or
      similar event, the conversion price and number of shares issuable upon
      conversion shall be equitably adjusted to reflect the occurrence of such
      event.

     

    7. No
      failure on the part of the Payee or any other holder of this Note to exercise
      and no delay in exercising any right, remedy or power hereunder or under any
      other document or agreement executed in connection herewith shall operate as
      a
      waiver thereof, nor shall any single or partial exercise by the Payee or any
      other holder of this Note of any right, remedy or power hereunder preclude
      any
      other or future exercise of any other right, remedy or power.

    

    8. This
      Note
      shall be binding upon the Maker and the Maker’s successors and
      assigns.

    

    9. This
      Note
      shall be governed by and construed in accordance with the laws of the State
      of
      New York, excluding the conflicts of laws principles thereof.

    

    10. In
      the
      event that any one or more of the provisions of this Note shall for any reason
      be held to be invalid, illegal or unenforceable, in whole or in part, or in
      any
      respect, or in the event that any one or more of the provisions of this Note
      shall operate, or would prospectively operate, to invalidate this Note, then,
      and in any such event, such provision or provisions only shall be deemed null
      and void and of no force or effect and shall not affect any other provision
      of
      this Note, and the remaining provisions of this Note shall remain operative
      and
      in full force and effect, shall be valid, legal and enforceable, and shall
      in no
      way be affected, prejudiced or disturbed thereby.

    

    11. All
      agreements between Maker and Payee are hereby expressly limited so that in
      no
      event whatsoever, whether by reason of deferment in accordance with this Note
      or
      under any agreement or by virtue of acceleration or maturity of the Note, or
      otherwise, shall the amount paid or agreed to be paid to the Payee hereunder
      or
      to compensate Payee for damages to be suffered by reason of a late payment
      hereof, exceed the maximum permissible under applicable law. If enforcement
      of
      any provision hereof at the time performance of such provision shall be due,
      shall exceed the limit of validity prescribed by law, the relevant obligations
      to be fulfilled shall be deemed reduced to the limit of such validity. This
      provision shall never be superseded or waived and shall control every other
      provision of all agreements among Maker and Payee. 

    

    12. Subject
      to applicable federal and state securities laws, the Payee may assign this
      Note
      without first obtaining the consent of the Maker.

    

    13. Subject
      to the applicable cure periods contained herein, time is of the essence of
      this
      Note.

    

    14. EXCEPT
      AS
      OTHERWISE SPECIFICALLY PROVIDED HEREIN, THE MAKER, AND ALL OTHERS THAT MAY
      BECOME LIABLE FOR ALL OR ANY PART OF THE OBLIGATIONS EVIDENCED BY THIS NOTE,
      HEREBY WAIVES PRESENTMENT, DEMAND, NOTICE OF NONPAYMENT, PROTEST AND ALL OTHER
      DEMANDS AND NOTICES IN CONNECTION WITH THE DELIVERY, ACCEPTANCE, PERFORMANCE
      OR
      ENFORCEMENT OF THIS NOTE, AND DOES HEREBY CONSENT TO ANY NUMBER OF RENEWALS
      OR
      EXTENSIONS OF THE TIME OF PAYMENT HEREOF AND AGREE THAT ANY SUCH RENEWALS OR
      EXTENSIONS MAY BE MADE WITHOUT NOTICE TO ANY SUCH PERSONS AND WITHOUT AFFECTING
      THEIR LIABILITY HEREIN AND DO FURTHER CONSENT TO THE RELEASE OF ANY PERSON
      LIABLE WITH RESPECT TO FAILURE TO GIVE SUCH NOTICE, (ALL WITHOUT AFFECTING
      THE
      LIABILITY OF THE OTHER PERSONS, FIRMS, OR CORPORATIONS LIABLE FOR THE PAYMENT
      OF
      THIS NOTE).

    

    15. TO
      THE
      FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE MAKER HEREBY KNOWINGLY AND
      VOLUNTARILY WAIVES TRIAL BY JURY AND THE RIGHT THERETO IN ANY ACTION OR
      PROCEEDING OF ANY KIND ARISING UNDER OR OUT OF OR OTHERWISE RELATED TO OR
      CONNECTED WITH THIS NOTE OR ANY RELATED DOCUMENT.

    

     

     

    IN
      WITNESS WHEREOF, each of the undersigned has duly executed this Amended and
      Restated Loan Agreement and Convertible Promissory Note on the date first above
      written. 

    

    
      	
               

            	
               

            	
               

            
	
               

            	
              EQUICAP,
                INC.

            
	
               

               

            	
               

               

            	
               

               

            
	 	
              By:  

            	
              /s/ Thomas
                C. Colligan

            
	
               

            	
              Thomas
                C. Colligan

            
	
               

            	
              President<PAGE>
                                                                     Exhibit 4.1

                                                                  --------------
                                                                  EXECUTION COPY
                                                                  --------------

================================================================================

                      BANC OF AMERICA FUNDING CORPORATION,
                                  as Depositor,

                             WELLS FARGO BANK, N.A.,
                as Master Servicer and Securities Administrator,

                                       and

                         U.S. BANK NATIONAL ASSOCIATION,
                                   as Trustee

                         POOLING AND SERVICING AGREEMENT

                             Dated October 30, 2006

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

                       Mortgage Pass-Through Certificates

                                  Series 2006-7

===============================================================================

<PAGE>
                                TABLE OF CONTENTS

                                                                            Page

                                    ARTICLE I

                                   DEFINITIONS
<TABLE>
<S>     <C>    <C>    <C>    <C>    <C>    <C>

   Section 1.01       Defined Terms..............................................................................12
   Section 1.02       Interest Calculations......................................................................60

                                   ARTICLE II

         CONVEYANCE OF MORTGAGE LOANS ORIGINAL ISSUANCE OF CERTIFICATES

   Section 2.01       Conveyance of Mortgage Loans...............................................................60
   Section 2.02       Acceptance by the Trustee or Custodian of the Mortgage Loans...............................64
   Section 2.03       Representations, Warranties and Covenants of the Master Servicer...........................69
   Section 2.04       Representations and Warranties of the Depositor as to the Mortgage Loans...................70
   Section 2.05       Designation of Interests in the REMICs.....................................................71
   Section 2.06       Designation of Start-up Day................................................................71
   Section 2.07       REMIC Certificate Maturity Date............................................................71
   Section 2.08       Execution and Delivery of Certificates.....................................................72
   Section 2.09       Establishment of the Trust.................................................................72
   Section 2.10       Purpose and Powers of the Trust............................................................73
   Section 2.11       Rights of the NIMS Insurer.................................................................73

                                   ARTICLE III

              ADMINISTRATION AND MASTER SERVICING OF MORTGAGE LOANS

   Section 3.01       Master Servicing of the Mortgage Loans.....................................................73
   Section 3.02       Monitoring of Servicers....................................................................74
   Section 3.03       Fidelity Bond; Errors and Omissions Insurance..............................................76
   Section 3.04       Access to Certain Documentation............................................................76
   Section 3.05       Maintenance of Primary Mortgage Insurance Policy; Claims...................................77
   Section 3.06       Rights of the Depositor, the Securities Administrator and the Trustee in
                      Respect of the Master Servicer.............................................................77
   Section 3.07       Trustee to Act as Master Servicer..........................................................78
   Section 3.08       Servicer Custodial Accounts and Escrow Accounts............................................78
   Section 3.09       Collection of Mortgage Loan Payments; Master Servicer Custodial Account,
                      Certificate Account, Cap Carryover Reserve Account, Reserve Funds
                      and Yield Maintenance Agreements...........................................................79

                                      -i-
</TABLE>
<PAGE>
<TABLE>
<S>        <C>                                                                                                  <C>
   Section 3.10       Access to Certain Documentation and Information Regarding the Mortgage Loans...............84
   Section 3.11       Permitted Withdrawals from the Certificate Account and the Master
                      Servicer Custodial Account.................................................................84
   Section 3.12       Maintenance of Hazard Insurance and Other Insurance........................................85
   Section 3.13       Presentment of Claims and Collection of Proceeds...........................................86
   Section 3.14       Enforcement of Due-On-Sale Clauses; Assumption Agreements..................................86
   Section 3.15       Realization Upon Defaulted Mortgage Loans; REO Property....................................86
   Section 3.16       Trustee to Cooperate; Release of Mortgage Files............................................88
   Section 3.17       Documents, Records and Funds in Possession of the Master Servicer to
                      be Held for the Trustee....................................................................89
   Section 3.18       Master Servicer Compensation...............................................................90
   Section 3.19       Advances...................................................................................90
   Section 3.20       Annual Statement as to Compliance..........................................................90
   Section 3.21       Assessments of Compliance and Attestation Reports..........................................91
   Section 3.22       Reports to the Commission..................................................................93

                                   ARTICLE IV

                          MASTER SERVICER'S CERTIFICATE

   Section 4.01       Master Servicer's Certificate.............................................................100

                                    ARTICLE V

       PAYMENTS AND STATEMENTS TO CERTIFICATEHOLDERS;REMIC ADMINISTRATION

   Section 5.01       Distributions.............................................................................100
   Section 5.02       Priorities of Distributions on the Shifting Interest Certificates.........................101
   Section 5.03       Priorities of Distributions on the Overcollateralized Certificates........................107
   Section 5.04       Allocation of Losses......................................................................118
   Section 5.05       Statements to Certificateholders..........................................................121
   Section 5.06       Tax Returns and Reports to Certificateholders.............................................128
   Section 5.07       Tax Matters Person........................................................................128
   Section 5.08       Rights of the Tax Matters Person in Respect of the Securities Administrator...............129
   Section 5.09       REMIC Related Covenants...................................................................129
   Section 5.10       Determination of One-Month LIBOR..........................................................130
   Section 5.11       Master Servicer, Securities Administrator and Trustee Indemnification.....................131

                                   ARTICLE VI

                                THE CERTIFICATES

   Section 6.01       The Certificates..........................................................................132
   Section 6.02       Registration of Transfer and Exchange of Certificates.....................................133
   Section 6.03       Mutilated, Destroyed, Lost or Stolen Certificates.........................................137
   Section 6.04       Persons Deemed Owners.....................................................................138

                                      -ii-
</TABLE>
<PAGE>
<TABLE>

                                   ARTICLE VII

                      THE DEPOSITOR AND THE MASTER SERVICER
<S>     <C>    <C>    <C>    <C>    <C>    <C>

   Section 7.01       Respective Liabilities of the Depositor and the Master Servicer...........................138
   Section 7.02       Merger or Consolidation of the Depositor or the Master Servicer...........................138
   Section 7.03       Limitation on Liability of the Depositor, the Master Servicer and Others..................139
   Section 7.04       Depositor and Master Servicer Not to Resign...............................................140

                                  ARTICLE VIII

                                     DEFAULT

   Section 8.01       Events of Default.........................................................................140
   Section 8.02       Remedies of Trustee.......................................................................142
   Section 8.03       Directions by Certificateholders and Duties of Trustee During Event of Default............142
   Section 8.04       Action upon Certain Failures of the Master Servicer and upon Event of Default.............142
   Section 8.05       Trustee to Act; Appointment of Successor..................................................143
   Section 8.06       Notification to Certificateholders........................................................144

                                   ARTICLE IX

                  THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

   Section 9.01       Duties of Trustee and Securities Administrator............................................144
   Section 9.02       Certain Matters Affecting the Trustee and the Securities Administrator....................148
   Section 9.03       Neither Trustee nor Securities Administrator Liable for Certificates or Mortgage Loans....149
   Section 9.04       Trustee and Securities Administrator May Own Certificates.................................150
   Section 9.05       Eligibility Requirements for Trustee and the Securities Administrator.....................150
   Section 9.06       Resignation and Removal of Trustee and the Securities Administrator.......................151
   Section 9.07       Successor Trustee or Securities Administrator.............................................152
   Section 9.08       Merger or Consolidation of Trustee or Securities Administrator............................153
   Section 9.09       Appointment of Co-Trustee or Separate Trustee.............................................153
   Section 9.10       Authenticating Agents.....................................................................154
   Section 9.11       Securities Administrator's Fees and Expenses and Trustee's Fees and Expenses..............155
   Section 9.12       Appointment of Custodian..................................................................156
   Section 9.13       Paying Agents.............................................................................156
   Section 9.14       Limitation of Liability...................................................................157
   Section 9.15       Trustee or Securities Administrator May Enforce Claims Without Possession of Certificates.158
   Section 9.16       Suits for Enforcement.....................................................................158
   Section 9.17       Waiver of Bond Requirement................................................................158
   Section 9.18       Waiver of Inventory, Accounting and Appraisal Requirement.................................158

                                     -iii-
</TABLE>
<PAGE>
<TABLE>

                                    ARTICLE X

                                   TERMINATION
<S>     <C>    <C>    <C>    <C>    <C>    <C>

   Section 10.01      Termination upon Purchase or Liquidation of All Mortgage Loans............................158
   Section 10.02      Additional Termination Requirements.......................................................161

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

   Section 11.01      Amendment.................................................................................162
   Section 11.02      Recordation of Agreement; Counterparts....................................................164
   Section 11.03      Limitation on Rights of Certificateholders................................................164
   Section 11.04      Governing Law.............................................................................165
   Section 11.05      Notices...................................................................................165
   Section 11.06      Severability of Provisions................................................................166
   Section 11.07      Certificates Nonassessable and Fully Paid.................................................166
   Section 11.08      Access to List of Certificateholders......................................................166
   Section 11.09      Recharacterization........................................................................167
   Section 11.10      Regulation AB Compliance; Intent of the Parties; Reasonableness...........................167
   Section 11.11      Third Party Beneficiary...................................................................167

>
</TABLE>
                                      -iv-
<PAGE>

                                    EXHIBITS

Exhibit A-1AR                Form of Face of Class 1-A-R Certificate
Exhibit A-1A1                Form of Face of Class 1-A-1 Certificate
Exhibit A-1A2                Form of Face of Class 1-A-2 Certificate
Exhibit A-1A3                Form of Face of Class 1-A-3 Certificate
Exhibit A-1A4                Form of Face of Class 1-A-4 Certificate
Exhibit A-1A5                Form of Face of Class 1-A-5 Certificate
Exhibit A-1A6                Form of Face of Class 1-A-6 Certificate
Exhibit A-1A7                Form of Face of Class 1-A-7 Certificate
Exhibit A-1A8                Form of Face of Class 1-A-8 Certificate
Exhibit A-1A9                Form of Face of Class 1-A-9 Certificate
Exhibit A-1A10               Form of Face of Class 1-A-10 Certificate
Exhibit A-1A11               Form of Face of Class 1-A-11 Certificate
Exhibit A-1A12               Form of Face of Class 1-A-12 Certificate
Exhibit A-30IO               Form of Face of Class 30-IO Certificate
Exhibit A-30PO               Form of Face of Class 30-PO Certificate
Exhibit A-T2A1               Form of Face of Class T2-A-1 Certificate
Exhibit A-T2A2               Form of Face of Class T2-A-2 Certificate
Exhibit A-T2A3               Form of Face of Class T2-A-3 Certificate
Exhibit A-T2A4               Form of Face of Class T2-A-4 Certificate
Exhibit A-T2A5               Form of Face of Class T2-A-5 Certificate
Exhibit A-T2A6               Form of Face of Class T2-A-6 Certificate
Exhibit A-T2A7               Form of Face of Class T2-A-7 Certificate
Exhibit A-T2A8               Form of Face of Class T2-A-8 Certificate
Exhibit A-T2AA               Form of Face of Class T2-A-A Certificate
Exhibit A-T2AB               Form of Face of Class T2-A-B Certificate
Exhibit B-1B1                Form of Face of Class 1-B-1 Certificate
Exhibit B-1B2                Form of Face of Class 1-B-2 Certificate
Exhibit B-1B3                Form of Face of Class 1-B-3 Certificate
Exhibit B-1B4                Form of Face of Class 1-B-4 Certificate
Exhibit B-1B5                Form of Face of Class 1-B-5 Certificate
Exhibit B-1B6                Form of Face of Class 1-B-6 Certificate
Exhibit B-T2M1               Form of Face of Class T2-M-1 Certificate
Exhibit B-T2M2               Form of Face of Class T2-M-2 Certificate
Exhibit B-T2M3               Form of Face of Class T2-M-3 Certificate
Exhibit B-T2M4               Form of Face of Class T2-M-4 Certificate
Exhibit B-T2M5               Form of Face of Class T2-M-5 Certificate
Exhibit B-T2M6               Form of Face of Class T2-M-6 Certificate
Exhibit B-T2M7               Form of Face of Class T2-M-7 Certificate
Exhibit B-T2M8               Form of Face of Class T2-M-8 Certificate
Exhibit B-T2B1               Form of Face of Class T2-B-1 Certificate
Exhibit B-T2B1               Form of Face of Class T2-B-2 Certificate
Exhibit B-CE                 Form of Face of Class CE Certificate
Exhibit B-P                  Form of Face of Class P Certificate
Exhibit C                    Form of Reverse of all Certificates

                                      -v-
<PAGE>

Exhibit D-1                  Loan Group 1 Mortgage Loan Schedule
Exhibit D-T2                 Loan Group T2 Mortgage Loan Schedule
Exhibit E                    Request for Release of Documents
Exhibit F                    Form of Certification of Establishment of Account
Exhibit G-1                  Form of Transferor's Certificate
Exhibit G-2A                 Form 1 of Transferee's Certificate
Exhibit G-2B                 Form 2 of Transferee's Certificate
Exhibit H                    Form of Transferee Representation Letter for ERISA
                             Restricted Certificates
Exhibit I                    Form of Affidavit Regarding Transfer of Residual
                               Certificate
Exhibit J                    List of Recordation States
Exhibit K                    Form of Initial Certification
Exhibit L                    Form of Final Certification
Exhibit M                    Form of Sarbanes-Oxley Certification
Exhibit N                    Relevant Servicing Criteria
Exhibit O                    Additional Form 10-D Disclosure
Exhibit P                    Additional Form 10-K Disclosure
Exhibit Q                    Form 8-K Disclosure Information
Exhibit R                    Form of Back-up Certification
Exhibit S                    Form of Additional Disclosure Notification
Exhibit T                    Class 1-A-4 Yield Maintenance Agreement
Exhibit U                    Overcollateralized Yield Maintenance Agreement
Exhibit V                    Principal Balance Schedules

                                      -vi-
<PAGE>

                     POOLING AND SERVICING AGREEMENT

     THIS POOLING AND  SERVICING  AGREEMENT,  dated  October 30, 2006, is hereby
executed  by and  among  BANC  OF  AMERICA  FUNDING  CORPORATION,  as  depositor
(together with its permitted  successors and assigns,  the  "Depositor"),  WELLS
FARGO BANK, N.A., as master servicer (together with its permitted successors and
assigns,   in  such   capacity,   the  "Master   Servicer")  and  as  securities
administrator  (together  with its  permitted  successors  and assigns,  in such
capacity, the "Securities  Administrator"),  and U.S. BANK NATIONAL ASSOCIATION,
as trustee (together with its permitted successors and assigns, the "Trustee").

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

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

                              PRELIMINARY STATEMENT

     The Depositor intends to sell pass-through certificates (collectively,  the
"Certificates"),  to be  issued  hereunder  in  multiple  Classes,  which in the
aggregate will evidence the entire  beneficial  ownership  interest in the Trust
Estate created hereunder.  The Certificates will consist of forty-three  Classes
of Certificates,  designated as (i) the Class 1-A-1,  Class 1-A-2,  Class 1-A-3,
Class 1-A-4,  Class 1-A-5,  Class 1-A-6,  Class 1-A-7, Class 1-A-8, Class 1-A-9,
Class  1-A-10,  Class  1-A-11,  Class 1-A-12,  Class 30-IO,  Class 30-PO,  Class
T2-A-1,  Class T2-A-2,  Class T2-A-3,  Class T2-A-4, Class T2-A-5, Class T2-A-6,
Class T2-A-7,  Class T2-A-8,  Class T2-A-A and Class T2-A-B  Certificates,  (ii)
Class 1-B-1,  Class 1-B-2,  Class 1-B-3,  Class 1-B-4, Class 1-B-5, Class 1-B-6,
Class T2-M-1,  Class T2-M 2, Class T2-M-3,  Class  T2-M-4,  Class T2-M-5,  Class
T2-M-6,  Class T2-M-7, Class T2-M-8, Class T2-B-1 and Class T2-B-2 Certificates,
(iii) the Class CE Certificates, (iv) the Class P Certificates and (v) the Class
1-A-R Certificate.  The descriptions of the Shifting Interest  Lower-Tier REMIC,
the Shifting Interest Middle-Tier REMIC, the Shifting Interest Upper-Tier REMIC,
the  Lower-Tier II REMIC and the Upper-Tier II REMIC that follow are part of the
Preliminary  Statement.  Any inconsistencies or ambiguities in this Agreement or
in the  administration of this Agreement shall be resolved pursuant to the terms
of Section  11.01 hereof in a manner that  preserves  the validity of such REMIC
elections described below.

<PAGE>

                       Shifting Interest Lower-Tier REMIC

     As provided herein,  the Securities  Administrator will make an election to
treat the segregated pool of assets consisting of the Group 1 Mortgage Loans and
certain other related  assets  subject to this  Agreement  (but exclusive of the
Class 1-A-4 Yield Maintenance  Agreements and the Class 1-A-4 Reserve Fund) as a
real  estate  mortgage  investment  conduit  ("REMIC")  for  federal  income tax
purposes, and such segregated pool of assets will be designated as the "Shifting
Interest  Lower-Tier  REMIC." The Class SI-LR  Interest will  represent the sole
class of "residual  interests"  in the Shifting  Interest  Lower-Tier  REMIC for
purposes of the REMIC Provisions. The following table irrevocably sets forth the
designation,  the Uncertificated Shifting Interest Lower-Tier REMIC Pass-Through
Rate, the initial Uncertificated  Balance, and solely for purposes of satisfying
Treasury Regulations Section 1.860G-1(a)(4)(iii),  the "latest possible maturity
date" for each of the  Uncertificated  Shifting Interest  Lower-Tier  Interests.
None  of the  Uncertificated  Shifting  Interest  Lower-Tier  Interests  will be
certificated.
<TABLE>
<CAPTION>
------------------------ ----------------------------- -------------------------------- --------------------------
                                                           Uncertificated Shifting
                            Initial Uncertificated        Interest Lower-Tier REMIC     Latest Possible Maturity
      Designation                  Balance                    Pass-Through Rate                  Date(1)
------------------------ ----------------------------- -------------------------------- --------------------------
<S>       <C>                   <C>                                 <C>                              <C> <C>
          1-L                   $332,712,762.80                     6.25%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-LIO                   $13,805,701.29(2)                  6.00%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-LPO                    $1,687,199.34                      (3)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
</TABLE>

(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Group 1 Mortgage Loan with the latest maturity date has been
     designated as the "latest possible maturity date" for each Uncertificated
     Shifting Interest Lower-Tier Interest.

(2)  Calculated in accordance with the definition of "Notional Amount" herein.

(3)  The Class 1-LPO Interest will not bear interest.

                                      -2-
<PAGE>

                       Shifting Interest Middle-Tier REMIC

     As provided herein,  the Securities  Administrator will make an election to
treat the segregated pool of assets  consisting of the  Uncertificated  Shifting
Interest  Lower-Tier  Interests as a REMIC for federal income tax purposes,  and
such  segregated  pool of assets will be designated  as the  "Shifting  Interest
Middle-Tier  REMIC." The Class SI-MR  Interest will  represent the sole class of
"residual  interests" in the Shifting Interest Middle-Tier REMIC for purposes of
the  REMIC   Provisions.   The  following  table   irrevocably  sets  forth  the
designation, the Uncertificated Shifting Interest Middle-Tier REMIC Pass-Through
Rate, the initial Uncertificated  Balance, and solely for purposes of satisfying
Treasury Regulations Section 1.860G-1(a)(4)(iii),  the "latest possible maturity
date" for each of the Uncertificated  Shifting Interest  Middle-Tier  Interests.
None of the  Uncertificated  Shifting  Interest  Middle-Tier  Interests  will be
certificated.
<TABLE>
<CAPTION>
------------------------ ----------------------------- -------------------------------- --------------------------
                                                           Uncertificated Shifting
                          Initial Uncertificated         Interest Middle-Tier REMIC     Latest Possible Maturity
      Designation                   Balance                    Pass-Through Rate                  Date(1)
------------------------ ----------------------------- -------------------------------- --------------------------
<S>        <C> <C>                  <C>                             <C>                              <C> <C>
       MRI-1-A-1                    $80,043,000                     7.00%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       MRI-1-A-R                           $100                     6.25%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       MRI-1-A-2                         $1,000                     6.00%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       MRI-1-A-3                         $1,000                     6.00%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       MRI-1-A-4                   $240,127,000                     6.00%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        MRI-IO                      $13,805,701(2)                   (3)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        MRI-PO                       $1,687,199                     0.00%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       MRI-1-B-1                     $8,026,000                     6.25%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       MRI-1-B-2                     $1,839,000                     6.25%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       MRI-1-B-3                     $1,003,000                     6.25%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       MRI-1-B-4                       $669,000                     6.25%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       MRI-1-B-5                       $502,000                     6.25%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       MRI-1-B-6                       $501,662                     6.25%                  September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
</TABLE>

     (1)  Solely for  purposes of Section  1.860G-1(a)(4)(iii)  of the  Treasury
          regulations,  the Distribution Date immediately following the maturity
          date for the Group 1 Mortgage  Loan with the latest  maturity date has
          been  designated  as the  "latest  possible  maturity  date"  for each
          Uncertificated Shifting Interest Middle-Tier Interest.

     (2)  Calculated in  accordance  with the  definition  of "Notional  Amount"
          herein.

     (3)  For federal  income tax  purposes,  the Class MRI-IO  Interest will be
          entitled  to 100% of the  amounts  distributed  on the  Uncertificated
          Shifting Interest Lower-Tier Class 1-LIO Interest.

                                      -3-
<PAGE>

                       Shifting Interest Upper-Tier REMIC

     As provided herein,  the Securities  Administrator will make an election to
treat the segregated pool of assets  consisting of the  Uncertificated  Shifting
Interest Middle-Tier  Interests as a REMIC for federal income tax purposes,  and
such  segregated  pool of assets will be designated  as the  "Shifting  Interest
Upper-Tier  REMIC." The Class SI-UR  Interest  will  represent the sole class of
"residual  interests" in the Shifting Interest  Upper-Tier REMIC for purposes of
the REMIC Provisions.  The following table irrevocably sets forth (or describes)
the  designation,  the Interest Rate, and Initial Balance or Notional Amount for
each Shifting Interest Upper-Tier Interest comprising the "regular interests" in
the Shifting Interest  Upper-Tier REMIC for purposes of the REMIC Provisions and
solely   for   purposes   of    Satisfying    Treasury    Regulations    Section
1.860G-1(a)(4)(iii),  the  "latest  possible  maturity  date" for each  class of
Shifting Interest Upper-Tier Interests.

<TABLE>
<CAPTION>
------------------------ ----------------------------- -------------------------------- --------------------------
                           Initial Balance or                                                 Latest Possible
      Designation             Notional Amount            Interest Rate                         Maturity Date(1)
------------------------ ----------------------------- -------------------------------- --------------------------
<S>      <C>                               <C>                       <C>                             <C> <C>
         1-A-R                             $100                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-A-1                      $70,000,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-A-2                      $10,043,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-A-3                      $80,043,000(3)                   (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-A-4                      $87,663,000                      (4)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-A-5                           $1,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-A-6                           $1,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-A-7                      $51,597,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-A-8                       $2,010,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-A-9                      $30,597,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        1-A-10                       $6,314,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        1-A-11                       $5,679,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        1-A-12                      $56,267,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         30-IO                      $13,805,701(3)                   (5)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         30-PO                       $1,687,199                      (6)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-B-1                       $8,026,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-B-2                       $1,839,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-B-3                       $1,003,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-B-4                         $669,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-B-5                         $502,000                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
         1-B-6                         $501,662                      (2)                   September 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
</TABLE>
     (1)  Solely for  purposes of Section  1.860G-1(a)(4)(iii)  of the  Treasury
          regulations,  the Distribution Date immediately following the maturity
          date for the Group 1 Mortgage  Loan with the latest  maturity date has
          been  designated  as the  "latest  possible  maturity  date"  for each
          Shifting Interest Upper-Tier Interest.
     (2)  Interest will accrue on these Shifting Interest  Upper-Tier  Interests
          at a rate equal to the Pass-Through Rate of the Corresponding Class of
          Shifting Interest Certificates.
     (3)  Calculated in  accordance  with the  definition  of "Notional  Amount"
          herein.
                                      -4-

<PAGE>

     (4)  Interest will accrue on the Shifting  Interest  Upper-Tier Class 1-A-4
          Interest at a rate equal to the Pass-Through Rate of the Corresponding
          Class  of  Shifting  Interest  Certificates.   The  Shifting  Interest
          Upper-Tier Class 1-A-4 Interest will not be entitled to any amounts in
          respect of the Class 1-A-4 Yield Maintenance Agreement.
     (5)  The Class  30-IO  Interest  will be  entitled  to 100% of the  amounts
          distributed on the Uncertificated  Shifting Interest Middle-Tier Class
          MRI-IO Interest.
     (6)  The Class 30-PO Interest will not bear interest.

                                      -5-
<PAGE>

                               Lower-Tier II REMIC

     As provided herein,  the Securities  Administrator will make an election to
treat the  segregated  pool of assets  consisting of the Group T2 Mortgage Loans
and certain other related assets subject to this Agreement (but exclusive of the
Overcollateralized Yield Maintenance Agreement,  the Overcollateralized  Reserve
Fund and the Cap Carryover  Reserve  Account) as a REMIC for federal  income tax
purposes,  and  such  segregated  pool  of  assets  will  be  designated  as the
"Lower-Tier  II REMIC."  The II-LR  Interest  will  represent  the sole class of
"residual  interests"  in the  Lower-Tier  II REMIC  for  purposes  of the REMIC
Provisions.  The following table  irrevocably  sets forth the  designation,  the
Uncertificated Lower-Tier II REMIC Pass-Through Rate, the initial Uncertificated
Balance,  and solely for purposes of  satisfying  Treasury  Regulations  Section
1.860G-1(a)(4)(iii),  the  "latest  possible  maturity  date"  for  each  of the
Uncertificated  Lower-Tier  II  Regular  Interests.  None of the  Uncertificated
Lower-Tier II Regular Interests will be certificated.
<TABLE>
<CAPTION>
------------------------ ----------------------------- -------------------------------- --------------------------
                               Initial Uncertificated      Uncertificated Lower- Tier II   Latest Possible Maturity
      Designation                        Balance             REMIC Pass-Through Rate               Date(1)
------------------------ ----------------------------- -------------------------------- --------------------------
<S>                               <C>                                    <C>                        <C> <C>
        LRII-AA                   $396,059,031.78                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2A1                    $1,532,710.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2A2                      $500,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2A3                      $408,400.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2A4                      $396,110.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2A5                      $211,500.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2A6                       $81,600.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2A7                      $240,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2A8                      $349,370.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2AA                       $20,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2AB                       $35,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2M1                       $66,680.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2M2                       $24,250.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2M3                       $20,210.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2M4                       $20,210.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2M5                       $20,210.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2M6                       $20,210.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2M7                       $20,210.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2M8                       $20,210.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2B1                       $20,210.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
       LRII-T2B2                       $20,210.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        LRII-ZZ                     $4,055,537.38                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        LRII-P                            $100.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
</TABLE>

     (1)  Solely for  purposes of Section  1.860G-1(a)(4)(iii)  of the  Treasury
          regulations,  the Distribution Date immediately following the maturity
          date for the Group T2 Mortgage Loan with the latest  maturity date has
          been  designated  as the  "latest  possible  maturity  date"  for each
          Uncertificated Lower-Tier II Regular Interest.

     (2)  Calculated  in  accordance  with  the  definition  of  "Uncertificated
          Lower-Tier II REMIC Pass-Through Rate" herein.

                                      -6-
<PAGE>

     The foregoing  Lower-Tier  II REMIC  structure is intended to cause all the
cash from the Group T2 Mortgage Loans to flow through the Upper-Tier II REMIC as
cash flow on an  Upper-Tier  REMIC II Regular  Interest,  without  creating  any
shortfall,  actual or potential  (other than for losses),  to any  Upper-Tier II
Regular  Interest.  To the extent that the structure is believed to diverge from
such  intention,  the party  identifying  such ambiguity or drafting error shall
notify the other parties hereto, and the parties hereto shall attempt to resolve
such ambiguity or drafting error in accordance with Section 11.01 hereto.

                                      -7-
<PAGE>

                               Upper-Tier II REMIC

     As provided herein,  the Securities  Administrator will make an election to
treat the segregated pool of assets consisting of the Uncertificated  Lower-Tier
II  Regular  Interests  as a REMIC for  federal  income tax  purposes,  and such
segregated  pool of assets will be designated as the  "Upper-Tier II REMIC." The
II-UR  Interest  will  represent  the sole class of "residual  interests" in the
Upper-Tier II REMIC for purposes of the REMIC Provisions.

     The Corresponding Class of Overcollateralized Certificates that corresponds
to each Regular  Interest  listed  below  (other than the Class P Upper-Tier  II
Regular Interest) represents ownership of a "regular interest" in the Upper-Tier
II REMIC and also  represents  either  (i) the right to  receive  payments  with
respect to the Cap Carryover  Amount (as defined  herein) or (ii) the obligation
to pay or the right to receive payments from the Overcollateralized Reserve Fund
and Cap Carryover Reserve Account. The Class P Certificates  represent ownership
of a Regular Interest in the Upper-Tier II REMIC, but do not represent rights or
the  obligations in respect of (i) or (ii) above.  The entitlement to principal,
if applicable,  of the Upper-Tier II Regular  Interest which  corresponds to its
related  Class  shall  be equal in  amount  and  timing  to the  entitlement  to
principal of such Class.

     The following table irrevocably sets forth (or describes) the Upper-Tier II
Regular  Interest  designation,  the  Initial  Uncertificated  Balance  and  the
Uncertificated  Upper-Tier  II REMIC  Pass-Through  Rate for each  Upper-Tier II
Regular Interest  comprising the "regular  interests" in the Upper-Tier II REMIC
for purposes of the REMIC  Provisions  and,  solely for  purposes of  satisfying
Treasury Regulations Section 1.860G-1(a)(4)(iii),  the "latest possible maturity
date" for each Upper-Tier II Regular Interest.

<TABLE>
<CAPTION>
------------------------ ----------------------------- -------------------------------- --------------------------
      Designation           Initial Uncertificated      Uncertificated Upper- Tier II   Latest Possible Maturity
                                   Balance                 REMIC Pass-Through Rate               Date(1)
------------------------ ----------------------------- -------------------------------- --------------------------
<S>      <C> <C>                  <C>                                    <C>                        <C> <C>
        T2-A-1                    $153,271,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-A-2                     $50,000,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-A-3                     $40,840,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-A-4                     $39,611,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-A-5                     $21,150,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-A-6                      $8,160,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-A-7                     $24,000,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-A-8                     $34,937,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-A-A                      $2,000,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-A-B                      $3,500,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-M-1                      $6,668,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-M-2                      $2,425,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-M-3                      $2,021,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-M-4                      $2,021,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------

                                      -8-
<PAGE>

        T2-M-5                      $2,021,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-M-6                      $2,021,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-M-7                      $2,021,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-M-8                      $2,021,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-B-1                      $2,021,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
------------------------ ----------------------------- -------------------------------- --------------------------
        T2-B-2                      $2,021,000.00                Variable(2)                October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
------------------------ ----------------------------- -------------------------------- --------------------------
          CE                                (3)                      (3)                    October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
------------------------ ----------------------------- -------------------------------- --------------------------
           P                              $100.00                    (4)                    October 25, 2036
------------------------ ----------------------------- -------------------------------- --------------------------
</TABLE>

     (1)  Solely for  purposes of Section  1.860G-1(a)(4)(iii)  of the  Treasury
          regulations,  the Distribution Date immediately following the maturity
          date for the Group T2 Mortgage Loan with the latest  maturity date has
          been  designated  as the  "latest  possible  maturity  date"  for each
          Uncertificated Upper-Tier II Regular Interest.

     (2)  Interest will accrue on these Upper-Tier II Regular Interests at a per
          annum rate equal to the lesser of (i) the  related  Base Rate and (ii)
          the Pool Cap.

     (3)  Solely for REMIC purposes, the Class CE Upper-Tier II Regular Interest
          (i) will have an initial  Uncertificated  Balance equal to the Initial
          Overcollateralization  Amount and (ii) will be entitled to 100% of the
          amount distributed on the Class CE Upper-Tier II Regular Interest.

     (4)  The Class P Upper-Tier II Regular Interest will not bear interest.

                                      -9-
<PAGE>
                             SUMMARY OF CERTIFICATES

     The  following  table  sets  forth  characteristics  of  the  Certificates,
together with the minimum denominations and integral multiples in excess thereof
in which the Classes of Certificates shall be issuable:

<TABLE>
<CAPTION>
Classes                                                Pass-Through                              Integral
                               Initial Class              Rate or                               Multiples in
                            Certificate Balance          Certificate            Minimum           Excess of
                             or Notional Amount         Interest Rate        Denomination         Minimum
<S>   <C>                    <C>                                  <C>                <C>
Class 1-A-R                  $100                                 6.2500%            $100            N/A
Class 1-A-1                  $70,000,000                         (1)               $1,000             $1
Class 1-A-2                  $10,043,000                         (1)               $1,000             $1
Class 1-A-3                  $80,043,000                         (2)           $1,000,000             $1
Class 1-A-4                  $87,663,000                          6.0000%(3)       $1,000             $1
Class 1-A-5                  $1,000                               6.0000%          $1,000            N/A
Class 1-A-6                  $1,000                               6.0000%          $1,000            N/A
Class 1-A-7                  $51,597,000                          6.0000%          $1,000             $1
Class 1-A-8                  $2,010,000                           6.0000%          $1,000             $1
Class 1-A-9                  $30,597,000                          6.0000%          $1,000             $1
Class 1-A-10                 $6,314,000                           6.0000%          $1,000             $1
Class 1-A-11                 $5,679,000                           6.0000%          $1,000             $1
Class 1-A-12                 $56,267,000                          6.0000%          $1,000             $1
Class 30-IO                  $13,805,701                          6.0000%      $1,000,000             $1
Class 30-PO                  $1,687,199                          (4)              $25,000             $1
Class 1-B-1                  $8,026,000                           6.2500%         $25,000             $1
Class 1-B-2                  $1,839,000                           6.2500%         $25,000             $1
Class 1-B-3                  $1,003,000                           6.2500%         $25,000             $1
Class 1-B-4                  $669,000                             6.2500%         $25,000             $1
Class 1-B-5                  $502,000                             6.2500%         $25,000             $1
Class 1-B-6                  $501,662                             6.2500%         $25,000             $1
Class T2-A-1                 $153,271,000                         5.8776%(5)       $1,000             $1
Class T2-A-2                 $50,000,000                         (6)               $1,000             $1
Class T2-A-3                 $40,840,000                          5.6948%(5)       $1,000             $1
Class T2-A-4                 $39,611,000                          5.9789%(7)       $1,000             $1
Class T2-A-5                 $21,150,000                          6.0363%(7)       $1,000             $1
Class T2-A-6                 $8,160,000                           6.2170%(7)       $1,000             $1
Class T2-A-7                 $24,000,000                          5.9117%(7)       $1,000             $1
Class T2-A-8                 $34,937,000                          5.9117%(7)       $1,000             $1
Class T2-A-A                 $2,000,000                           6.0605%(7)       $1,000             $1
Class T2-A-B                 $3,500,000                           6.0605%(7)       $1,000             $1
Class T2-M-1                 $6,668,000                           6.0588%(7)      $25,000             $1
Class T2-M-2                 $2,425,000                           6.1086%(7)      $25,000             $1
Class T2-M-3                 $2,021,000                           6.1584%(7)      $25,000             $1
Class T2-M-4                 $2,021,000                           6.3078%(7)      $25,000             $1
Class T2-M-5                 $2,021,000                           6.3574%(7)      $25,000             $1

                                      -10-
<PAGE>

Class T2-M-6                 $2,021,000                           6.4072%(7)      $25,000             $1
Class T2-M-7                 $2,021,000                           6.9000%(7)      $25,000             $1
Class T2-M-8                 $2,021,000                           6.9000%(7)      $25,000             $1
Class T2-B-1                 $2,021,000                           6.9000%(7)      $25,000             $1
Class T2-B-2                 $2,021,000                           6.9000%(7)      $25,000             $1
Class CE                     (8)                                 (8)                  N/A            N/A
Class P                      $100                                (9)                  $10             $1

</TABLE>

     (1)  During the initial  Interest  Accrual Period,  interest will accrue on
          the Class 1-A-1 and Class 1-A-2 Certificates at the rate of 5.770% per
          annum.  During each Interest Accrual Period thereafter,  interest will
          accrue on the Class 1-A-1 and Class 1-A-2  Certificates at a per annum
          rate  equal to (i)  0.450%  plus (ii)  One-Month  LIBOR,  subject to a
          minimum rate of 0.450% and a maximum rate of 7.000%.

     (2)  During the initial  Interest  Accrual Period,  interest will accrue on
          the Class 1-A-3  Certificates at the rate of 1.230% per annum.  During
          each Interest Accrual Period  thereafter,  interest will accrue on the
          Class 1-A-3 Certificates at a per annum rate equal to (i) 6.550% minus
          (ii)  One-Month  LIBOR,  subject  to a minimum  rate of  0.000%  and a
          maximum rate of 6.550%.

     (3)  On or prior to the Distribution Date in November 2011, the Class 1-A-4
          Certificates will also be entitled to amounts received under the Class
          1-A-4 Yield Maintenance Agreement. During this period, the Class 1-A-4
          Certificates  will receive  payments on each  Distribution  Date at an
          effective  per annum  rate  equal to  one-month  LIBOR (as  determined
          pursuant to the Class 1-A-4 Yield Maintenance  Agreement) plus 0.600%,
          subject to a minimum rate of 6.000% and a maximum rate of 9.500%.

     (4)  The Class 30-PO  Certificates are Principal Only Certificates and will
          not be entitled to distributions in respect of interest.

     (5)  The  Certificate  Interest Rate for these  Certificates  will be a per
          annum  rate  equal  to the  lesser  of (i)  the  fixed  interest  rate
          specified  in this table (the  "Pass-Through  Rate") and (ii) the Pool
          Cap.

     (6)  The  Certificate  Interest Rate for these  Certificates  will be a per
          annum rate equal to the lesser of (i) the sum of One-Month  LIBOR plus
          a margin  equal to 0.05% (the  "Pass-Through  Rate") and (ii) the Pool
          Cap.

     (7)  The  Certificate  Interest Rate for these  Certificates  will be a per
          annum  rate  equal  to the  lesser  of (i)  the  fixed  interest  rate
          specified  in this table (the  "Pass-Through  Rate") and (ii) the Pool
          Cap. The  Pass-Through  Rate for these  Certificates  will increase by
          0.50% per annum following the Group T2 Optional Termination Date.

     (8)  Solely for REMIC purposes,  the Class CE Certificates will (i) have an
          initial   Class    Certificate    Balance   equal   to   the   Initial
          Overcollateralization  Amount  and  (ii)  be  entitled  to 100% of the
          amount distributed on the Class CE Upper-Tier II Regular Interest.

     (9)  The Class P Certificates will not bear interest.

                                      -11-
<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  meanings  specified  in this
Article:

     10-K Filing Deadline: As defined in Section 3.22(c).

     1933 Act: The Securities Act of 1933, as amended.

     60+ Day Delinquent Loan: For each Distribution Date, each Group T2 Mortgage
Loan  (including  each Group T2 Mortgage Loan in  foreclosure  and each Group T2
Mortgage Loan for which the Mortgagor has filed for bankruptcy after the Closing
Date) with  respect to which any portion of a Monthly  Payment is, as of the Due
Date in the prior calendar month,  two months or more past due and each Group T2
Mortgage Loan relating to an REO Property.

     Accretion  Termination  Date:  For (i) the Class  1-A-5  Certificates,  the
earlier to occur of (1) the Distribution Date following the Distribution Date on
which the Class  Certificate  Balance of the Class 1-A-4  Certificates  has been
reduced to zero and (2) the Senior Credit  Support  Depletion  Date and (ii) the
Class  1-A-6  Certificates,  the earlier to occur of (1) the  Distribution  Date
following the Distribution Date on which the aggregate Class Certificate Balance
of the Class 1-A-4 and Class 1-A-5 Certificates has been reduced to zero and (2)
the Senior Credit Support Depletion Date.

     Additional Disclosure Notification: The form of notification to be included
with any Additional  Form 10-D  Disclosure,  Additional  Form 10-K Disclosure or
Form 8-K Disclosure Information which is attached hereto as Exhibit S.

     Additional   Form  10-D   Disclosure:   As  defined  in  Section   3.22(b).

     Additional   Form  10-K   Disclosure:   As  defined  in  Section   3.22(c).

     Additional Servicer: A Subcontractor  engaged by the Master Servicer or the
Securities Administrator that is a "servicer" within the meaning of Item 1101 of
Regulation AB and meets any of the criteria in Item 1108(a)(2)(i)  through (iii)
of Regulation AB.

     Adjusted Pool Amount:  With respect to any  Distribution  Date, the Cut-off
Date Pool  Principal  Balance of the Group 1 Mortgage Loans minus the sum of (i)
all amounts in respect of principal  received in respect of the Group 1 Mortgage
Loans  (including,  without  limitation,  amounts received as Monthly  Payments,
Periodic Advances, Principal Prepayments,  Liquidation Proceeds and Substitution
Adjustment  Amounts)  and  distributed  to  Holders  of  the  Shifting  Interest
Certificates on such Distribution Date and all prior Distribution Dates and (ii)
the  principal   portion  of  all  Realized  Losses  (other  than  Debt  Service
Reductions) incurred on the Group 1 Mortgage Loans from the Cut-off Date through
the end of the month preceding such Distribution Date.

                                      -12-
<PAGE>
     Adjusted Pool Amount  (Non-PO  Portion):  With respect to any  Distribution
Date,  the  difference  between the Adjusted  Pool Amount and the Adjusted  Pool
Amount (PO Portion).

     Adjusted Pool Amount (PO Portion):  With respect to any Distribution  Date,
the sum of the amount,  calculated as follows,  with respect to each Outstanding
Mortgage  Loan in Loan Group 1: the  product of (i) the PO  Percentage  for such
Group 1 Mortgage Loan and (ii) the  remainder of (A) the Cut-off Date  Principal
Balance of such Group 1  Mortgage  Loan minus (B) the sum of (x) all  amounts in
respect  of  principal  received  in  respect  of  such  Group 1  Mortgage  Loan
(including,  without limitation,  amounts received as Monthly Payments, Periodic
Advances,   Principal   Prepayments,   Liquidation   Proceeds  and  Substitution
Adjustment  Amounts)  and  distributed  to  Holders  of  the  Shifting  Interest
Certificates on such Distribution Date and all prior  Distribution Dates and (y)
the principal portion of any Realized Loss (other than a Debt Service Reduction)
incurred on such Group 1 Mortgage  Loan from the Cut-off Date through the end of
the month preceding such Distribution Date.

     Advance: A Periodic Advance or a Servicing Advance.

     Agreement:   This  Pooling  and  Servicing   Agreement  together  with  all
amendments hereof and supplements hereto.

     Applied Realized Loss Amount:  Any of a Senior Applied Realized Loss Amount
or a Subordinated Applied Realized Loss Amount.

     Appraised  Value:  With respect to any Mortgaged  Property,  either (i) the
lesser of (a) the appraised  value  determined  in an appraisal  obtained by the
originator  generally no more than four months prior to  origination  (or,  with
respect to newly  constructed  properties,  no more than twelve  months prior to
origination) of such Mortgage Loan or, in certain cases, an automated  valuation
model (if  applicable)  or tax  assessed  value and (b) the sales price for such
property,  except that, in the case of Mortgage Loans the proceeds of which were
used to refinance an existing  mortgage loan, the Appraised Value of the related
Mortgaged  Property is the appraised  value  thereof  determined in an appraisal
obtained at the time of refinancing or, in certain cases, an automated valuation
model  (if  applicable)  or tax  assessed  value,  or (ii) the  appraised  value
determined  in an  appraisal  made at the request of a Mortgagor  subsequent  to
origination in order to eliminate the  Mortgagor's  obligation to keep a Primary
Mortgage Insurance Policy in force.

     Assessment of Compliance: As defined in Section 3.21(a).

     Assignment of Mortgage: An individual assignment of the Mortgage, notice of
transfer or equivalent  instrument in recordable form, sufficient under the laws
of the jurisdiction  wherein the related  Mortgaged  Property is located to give
record notice of the sale of the Mortgage.

     Attestation Report: As defined in Section 3.21(b).

     Authenticating Agents: As defined in Section 9.10.

     Back-up Certification: As defined in Section 3.22(e).

     BAFC: Banc of America Funding Corporation.

                                      -13-
<PAGE>
     BAMCC: Banc of America Mortgage Capital Corporation.

     BANA:  Bank  of  America,   National   Association,   a  national   banking
association, or its successor in interest.

     BANA Servicing Agreement: The Servicing Agreement,  dated October 30, 2006,
by and between BAFC, as depositor, and BANA, as servicer.

     Base Rate: With respect to the Class T2-A-1 and Class T2-A-3  Upper-Tier II
Regular  Interests,  the  fixed  per annum  rate of the  Corresponding  Class of
Overcollateralized  Certificates  set forth in the Preliminary  Statement.  With
respect to the Class T2-A-2 Upper-Tier II Regular Interest, One-Month LIBOR plus
the  Certificate  Margin  of  the  Corresponding  Class  of   Overcollateralized
Certificates. With respect to the Upper-Tier II Regular Interests other than the
Class  T2-A-1,  Class T2-A-2,  Class T2-A-3,  Class CE and Class P Upper-Tier II
Regular  Interests,  the  fixed  per annum  rate of the  Corresponding  Class of
Overcollateralized  Certificates  set  forth in the  Preliminary  Statement  (as
provided  in the  Preliminary  Statement,  such rate will  increase by 0.50% per
annum following the Group T2 Optional Termination Date).

     BBA: As defined in Section 5.10.

     Book-Entry Certificate: All Classes of Certificates other than the Physical
Certificates.

     BPP Mortgage Loan: Any Mortgage Loan which includes a Borrowers  Protection
Plan(R)  addendum to the related Mortgage Note whereby BANA agrees to cancel (i)
certain  payments of  principal  and  interest on such  Mortgage  Loan for up to
twelve months upon the disability or involuntary  unemployment  of the Mortgagor
or (ii)  the  outstanding  principal  balance  of the  Mortgage  Loan  upon  the
accidental  death of the  Mortgagor;  provided  that such  Borrowers  Protection
Plan(R) has not been terminated in accordance with its terms.

     BPP Mortgage  Loan  Payment:  With respect to any BPP  Mortgage  Loan,  the
Monthly Covered Amount or Total Covered Amount, if any, payable by BANA pursuant
to Section 7(b) of the Mortgage Loan Purchase Agreement.

     Business  Day:  Any day other than (i) a Saturday or a Sunday or (ii) a day
on which banking  institutions in the State of North Carolina,  the State of New
York, the states in which the servicing offices of any Servicer are located, the
state or states in which the master servicing offices of the Master Servicer are
located  or the  state or states in which the  Corporate  Trust  Offices  of the
Trustee and the Securities  Administrator are located are required or authorized
by law or executive order to be closed.

     Buy-Down  Account:  The separate  Eligible  Account or Accounts created and
maintained by a Servicer as set forth in Section 3.08.

     Buy-Down  Agreement:  An agreement  governing the  application  of Buy-Down
Funds with respect to a Buy-Down Mortgage Loan.

     Buy-Down  Funds:  Money advanced by a builder,  seller or other  interested
party to reduce a  Mortgagor's  monthly  payment  during the initial  years of a
Buy-Down Mortgage Loan.

                                      -14-
<PAGE>
     Buy-Down Mortgage Loan: Any Mortgage Loan in respect of which,  pursuant to
a  Buy-Down  Agreement,  the  monthly  interest  payments  made  by the  related
Mortgagor  will be less than the  scheduled  monthly  interest  payments on such
Mortgage Loan, with the resulting difference in interest payments being provided
from related Buy-Down Funds.

     Calculated  Principal  Distribution:  As defined  in Section  5.04(b)(iii).

     Cap Carryover Amount: If on any Distribution  Date, the  Overcollateralized
Accrued Certificate Interest for any Offered  Overcollateralized  Certificate or
Class T2-B  Certificates  is based on the Pool Cap, the excess of (i) the amount
of interest such Class would have been entitled to receive on such  Distribution
Date based on its Pass-Through Rate without regard to the Pool Cap over (ii) the
amount of interest such Class  received on such  Distribution  Date based on the
Pool Cap,  together  with the  unpaid  portion  of any such  excess  from  prior
Distribution  Dates  (and  interest  accrued  thereon  at  the   then-applicable
Pass-Through Rate on such Class without regard to the Pool Cap).

     Cap Carryover Reserve Account:  The Eligible Account created and maintained
by the Securities  Administrator  pursuant to Section 3.09(i) in the name of the
Securities  Administrator,  on behalf of the  Trustee,  for the  benefit  of the
Holders  of  the  Offered   Overcollateralized   Certificates   and  Class  T2-B
Certificates and designated "Wells Fargo Bank, N.A., as Securities Administrator
for U.S. Bank National Association,  as Trustee, in trust for registered holders
of Banc of  America  Funding  Corporation  Mortgage  Pass-Through  Certificates,
Series  2006-7."  Funds in the Cap  Carryover  Reserve  Account shall be held in
trust for the Holders of the Offered  Overcollateralized  Certificates and Class
T2-B  Certificates for the uses and purposes set forth in this Agreement.  Funds
in the Cap Carryover Reserve Account shall be held uninvested. The Cap Carryover
Reserve Account shall not be an asset of any REMIC formed under this Agreement.

     Certificate:  Any of the  Banc  of  America  Funding  Corporation  Mortgage
Pass-Through  Certificates,  Series  2006-7  that are  issued  pursuant  to this
Agreement.

     Certificate  Account:  The Eligible  Account  created and maintained by the
Securities  Administrator  pursuant  to  Section  3.09(b)  in  the  name  of the
Securities  Administrator,  on behalf of the  Trustee,  for the  benefit  of the
Certificateholders  and  designated  "Wells  Fargo  Bank,  N.A.,  as  Securities
Administrator  for U.S.  Bank  National  Association,  as Trustee,  in trust for
registered holders of Banc of America Funding Corporation Mortgage  Pass-Through
Certificates, Series 2006-7." The Certificate Account shall be deemed to consist
of seven  sub-accounts;  one for  each of the Loan  Groups  (the  "Loan  Group 1
Sub-Account"  and  "Loan  Group  T2  Sub-Account"),  and  one  for  each  of the
Lower-Tier  II   Certificate   Sub-Account,   the   Upper-Tier  II   Certificate
Sub-Account,  the Shifting  Interest  Lower-Tier  Certificate  Sub-Account,  the
Shifting Interest Middle-Tier  Certificate Sub-Account and the Shifting Interest
Upper-Tier  Certificate  Sub-Account.  Funds in the Certificate Account shall be
held in trust for the Holders of the  Certificates for the uses and purposes set
forth in this Agreement.

     Certificate  Balance:  With respect to any  Certificate  at any date (other
than a Class CE  Certificate),  the maximum  dollar amount of principal to which

                                      -15-
<PAGE>
the Holder  thereof is then entitled  hereunder,  such amount being equal to the
product of the Percentage Interest of such Certificate and the Class Certificate
Balance of the Class of Certificates of which such Certificate is a part.

     Certificate  Custodian:  Initially,  Wells Fargo Bank, N.A.; thereafter any
other  Certificate  Custodian  acceptable to the  Depository and selected by the
Securities Administrator.

     Certificate Interest Rate: With respect to each Class of Certificates,  the
per annum rate set forth or calculated  in the table under the caption  "Summary
of Certificates" in the Preliminary Statement.

     Certificate  Margin:  With  respect  to the Class T2  Certificates,  0.05%.

     Certificate Owner: With respect to a Book-Entry Certificate, the Person who
is the  beneficial  owner  of a  Book-Entry  Certificate.  With  respect  to any
Definitive Certificate, the Certificateholder of such Certificate.

     Certificate  Register:  The register  maintained  pursuant to Section 6.02.

     Certificate  Registrar:  The registrar  appointed pursuant to Section 6.02.

     Certificateholder:  The Person in whose name a Certificate is registered in
the  Certificate  Register,  except  that,  solely for the purpose of giving any
consent  pursuant to this Agreement,  any Certificate  registered in the name of
the Depositor,  the Master Servicer or any affiliate thereof shall be deemed not
to be  outstanding  and the  Percentage  Interest  and Voting  Rights  evidenced
thereby  shall not be taken into account in  determining  whether the  requisite
amount of Percentage  Interests or Voting Rights,  as the case may be, necessary
to  effect  any such  consent  has been  obtained,  unless  such  entity  is the
registered owner of the entire Class of Certificates,  provided that neither the
Securities  Administrator  nor the Trustee shall be responsible for knowing that
any  Certificate  is  registered in the name of an affiliate of the Depositor or
the Master Servicer unless one of its Responsible  Officers has actual knowledge
thereof.

     Certification Parties: As defined in Section 3.22(e).

     Certifying Person: As defined in Section 3.22(e).

     Class: As to the Certificates,  the Class 1-A-R,  Class 1-A-1, Class 1-A-2,
Class 1-A-3,  Class 1-A-4,  Class 1-A-5,  Class 1-A-6, Class 1-A-7, Class 1-A-8,
Class 1-A-9, Class 1-A-10, Class 1-A-11, Class 1-A-12, Class 30-IO, Class 30-PO,
Class T2-A-1,  Class T2-A-2,  Class T2-A-3,  Class T2-A-4,  Class T2-A-5,  Class
T2-A-6,  Class T2-A-7,  Class T2-A-8,  Class T2-A-A,  Class T2-A-B, Class 1-B-1,
Class 1-B-2,  Class 1-B-3,  Class 1-B-4, Class 1-B-5, Class 1-B-6, Class T2-M-1,
Class T2-M-2,  Class T2-M-3,  Class T2-M-4,  Class T2-M-5,  Class T2-M-6,  Class
T2-M-7,  Class  T2-M-8,  Class  T2-B-1,  Class  T2-B-2,  Class  CE and  Class  P
Certificates, as the case may be.

     Class 1-A-1 Loss Amount:  With respect to any  Distribution  Date after the
Senior Credit Support  Depletion  Date,  the amount,  if any, by which the Class
Certificate Balance of the Class 1-A-1 Certificates would be reduced as a result
of the allocation of any reduction pursuant to Section 5.04(b)(i) to such Class,
without regard to the operation of Section  5.04(b)(iv).

                                      -16-
<PAGE>
     Class 1-A-3 Notional  Amount:  With respect to each  Distribution  Date, an
amount  equal to the sum of the Class  Certificate  Balances  of the Class 1-A-1
Certificates and the Class 1-A-2 Certificates.

     Class 1-A-4 Loss Amount:  With respect to any  Distribution  Date after the
Senior Credit Support  Depletion  Date,  the amount,  if any, by which the Class
Certificate Balance of the Class 1-A-4 Certificates would be reduced as a result
of the allocation of any reduction pursuant to Section 5.04(b)(i) to such Class,
without regard to the operation of Section 5.04(b)(iv).

     Class 1-A-4 Reserve Fund:  The Eligible  Account  created and maintained by
the  Securities  Administrator  pursuant  to Section  3.09(j) in the name of the
Securities  Administrator,  on behalf of the  Trustee,  for the  benefit  of the
Holders of the Class 1-A-4  Certificates  and  designated  "Class 1-A-4  Reserve
Fund, Wells Fargo Bank, N.A., as Securities Administrator for U.S. Bank National
Association,  as  Trustee,  in trust for  registered  holders of Banc of America
Funding Corporation Mortgage Pass-Through Certificates,  Series 2006-7." Amounts
on deposit in the Class  1-A-4  Reserve  Fund shall not be  invested.  The Class
1-A-4  Reserve  Fund  shall  not be an  asset of any  REMIC  formed  under  this
Agreement.

     Class 1-A-4 Yield Maintenance  Agreement:  The yield maintenance  agreement
between  the  Securities  Administrator,   on  behalf  of  the  Trust,  and  the
Counterparty,  which will be for the  benefit of the Class  1-A-4  Certificates,
substantially  in the form  attached  hereto as Exhibit T. The Class 1-A-4 Yield
Maintenance  Agreement  shall not be an asset of any  REMIC  formed  under  this
Agreement.

     Class 1-A-4 Yield Maintenance  Agreement Payment: For any Distribution Date
prior to and including the  Distribution  Date in November 2011, the amount,  if
any,  required to be paid by the  Counterparty  to the Securities  Administrator
under the Class 1-A-4 Yield Maintenance Agreement.

     Class 1-A-5 Accrual  Distribution Amount: For any Distribution Date and the
Class 1-A-5  Certificates  prior to the related  Accretion  Termination Date, an
amount with  respect to such Class equal to the sum of (i) the amount  allocated
but not currently  distributable  as interest to such Class  pursuant to Section
5.02(a)(i)  that is  attributable  to clause (i) of the  definition of "Interest
Distribution   Amount,"  and  (ii)  the  amount   allocated  but  not  currently
distributable  as interest to such Class pursuant to Section  5.02(a)(i) that is
attributable to clause (ii) of the definition of "Interest Distribution Amount."

     Class 1-A-6 Accrual  Distribution Amount: For any Distribution Date and the
Class 1-A-6  Certificates  prior to the related  Accretion  Termination Date, an
amount with  respect to such Class equal to the sum of (i) the amount  allocated
but not currently  distributable  as interest to such Class  pursuant to Section
5.02(a)(i)  that is  attributable  to clause (i) of the  definition of "Interest
Distribution   Amount,"  and  (ii)  the  amount   allocated  but  not  currently
distributable  as interest to such Class pursuant to Section  5.02(a)(i) that is
attributable to clause (ii) of the definition of "Interest Distribution Amount."

     Class 1-A-7 Loss Amount:  With respect to any  Distribution  Date after the
Senior Credit Support  Depletion  Date,  the amount,  if any, by which the Class

                                      -17-
<PAGE>
Certificate Balance of the Class 1-A-7 Certificates would be reduced as a result
of the allocation of any reduction pursuant to Section 5.04(b)(i) to such Class,
without regard to the operation of Section 5.04(b)(iv).

     Class 1-A-8 Loss Allocation  Amount:  With respect to any Distribution Date
after the Senior  Credit  Support  Depletion  Date,  the lesser of (a) the Class
Certificate  Balance  of the  Class  1-A-8  Certificates  with  respect  to such
Distribution  Date prior to any  reduction  for the Class 1-A-8 Loss  Allocation
Amount and (b) the Class  1-A-7 Loss Amount  with  respect to such  Distribution
Date.

     Class 1-A-10 Loss Allocation Amount:  With respect to any Distribution Date
after the Senior  Credit  Support  Depletion  Date,  the lesser of (a) the Class
Certificate  Balance  of the Class  1-A-10  Certificates  with  respect  to such
Distribution  Date prior to any reduction  for the Class 1-A-10 Loss  Allocation
Amount and (b) the sum of the Class  1-A-1 Loss  Amount and the Class 1-A-4 Loss
Amount with respect to such Distribution Date.

     Class 1-A-R Certificate: The Class 1-A-R Certificate,  which represents the
ownership of the II-UR  Interest,  the II-LR Interest,  the SI-UR Interest,  the
SI-MR Interest and the SI-LR Interest.

     Class 1-B Certificates: Class 1-B-1, Class 1-B-2, Class 1-B-3, Class 1-B-4,
Class 1-B-5 and Class 1-B-6 Certificates.

     Class 30-IO Notional  Amount:  With respect to each  Distribution  Date, an
amount  equal  to the  product  of (i) the  aggregate  of the  Stated  Principal
Balances of the Premium Mortgage Loans as of the Due Date in the month preceding
the month of such  Distribution  Date and (ii) a fraction,  (a) the numerator of
which is equal to the weighted average of the Net Mortgage Interest Rates of the
Premium  Mortgage Loans (based on the Stated  Principal  Balances of the Premium
Mortgage  Loans  as of the Due Date in the  month  preceding  the  month of such
Distribution  Date)  minus  6.25% and (b) the  denominator  of which is equal to
6.00%.

     Class CE Certificates:  The Class CE Certificates,  which represent (i) the
corresponding   Upper-Tier  II  Regular  Interest  for  purposes  of  the  REMIC
Provisions, (ii) the obligation to pay Cap Carryover Amounts and (iii) the right
to  receive   amounts   from  the  Cap   Carryover   Reserve   Account  and  the
Overcollateralized Reserve Fund.

     Class CE Distributable  Amount:  With respect to any Distribution Date, the
sum of (i) the interest accrued on the Class CE Upper-Tier II Regular  Interests
at their  Pass-Through  Rate calculated on their Notional Amount less the amount
(without  duplication)  of  Cap  Carryover  Amounts  paid  pursuant  to  Section
5.03(c)(i)(HH)  and  (ii)  up to  any  remaining  Overcollateralization  Release
Amounts and (iii) the amounts remaining in (A) the Cap Carryover Reserve Account
after  the  distributions  in  Section  3.09(i)  and (B) the  Overcollateralized
Reserve Fund after distributions in Section 5.03(d)(i) through (vi).

     Class Certificate  Balance:  With respect to any Class of Shifting Interest
Certificates  (other than the Class 1-A-3 and Class 30-IO  Certificates) and any
date of determination,  and subject to Section  5.04(b)(vi),  an amount equal to
the Initial Class  Certificate  Balance of such Class (plus,  in the case of the

                                      -18-
<PAGE>
Class 1-A-5 and Class 1-A-6 Certificates,  any Class 1-A-5 Accrual  Distribution
Amounts and Class 1-A-6 Accrual Distribution Amounts,  respectively,  previously
added thereto) minus (A) the sum of (i) all distributions of principal made with
respect thereto (including in the case of a Class of Class 1-B Certificates, any
principal  otherwise  payable to such Class of Subordinate  Certificates used to
pay any PO Deferred Amounts),  (ii) all reductions in Class Certificate  Balance
previously  allocated  thereto  pursuant to Section  5.04(b)(i) and (iii) in the
case of the Class 1-A-8 and Class 1-A-10  Certificates,  any reduction allocated
thereto pursuant to Section 5.04(b)(iv) plus (B) the sum of (i) all increases in
Class  Certificate  Balance  previously  allocated  thereto  pursuant to Section
5.04(b)(i)   and  (ii)  in  the  case  of  the  Class  1-A-8  and  Class  1-A-10
Certificates,  any increases allocated thereto pursuant to Section  5.04(b)(iv).
The Class 1-A-3 and Class 30-IO  Certificates are Interest Only Certificates and
have no Class Certificate Balance.

     With respect to any Class of  Overcollateralized  Certificates  (other than
the Class CE  Certificates)  and any date of  determination,  and subject to the
last paragraph of Section 5.04(c), the Initial Class Certificate Balance of such
Class (a) reduced by the sum of (i) all amounts actually  distributed in respect
of  principal  of such Class on all prior  Distribution  Dates and (ii)  Applied
Realized Loss Amounts allocated thereto for previous  Distribution Dates and (b)
increased by any  Recoveries  allocated to such Class for previous  Distribution
Dates.

     With respect to the Class CE  Certificates  and any date of  determination,
and solely for federal  income tax  purposes,  the  excess,  if any, of the then
aggregate Uncertificated Balances of the Uncertificated  Lower-Tier II Interests
over  the  aggregate  Class  Certificate   Balance  of  the   Overcollateralized
Certificates (other than the Class CE Certificates) then outstanding.

     Class  Interest  Shortfall:  For any  Distribution  Date and each  Class of
interest-bearing  Shifting Interest  Certificates,  the amount by which Shifting
Interest  Accrued  Certificate  Interest for such Class (as reduced  pursuant to
Section  5.02(c))  exceeds the amount of interest  actually  distributed on such
Class (or, in the case of the Class 1-A-5 and Class 1-A-6  Certificates prior to
the applicable  Accretion  Termination  Date,  the amount  included in the Class
1-A-5 Accrual Distribution Amount or Class 1-A-6 Accrual Distribution Amount, as
applicable,   pursuant  to  clause  (i)  of  the  definition  thereof,  but  not
distributed  pursuant to the proviso in Section 5.02(a)(i)) on such Distribution
Date pursuant to clause (i) of the definition of "Interest Distribution Amount."

     Class  P  Certificates:  The  Class P  Certificates,  which  represent  the
corresponding   Upper-Tier  II  Regular  Interest  for  purposes  of  the  REMIC
Provisions  and  are  entitled  to  distributions  in  respect  of  their  Class
Certificate Balance and certain Prepayment Charges as set forth herein.

     Class T2-B  Certificates:  The Class T2-B-1 and Class T2-B-2  Certificates.

     Class T2-B-1 Principal  Distribution  Amount: As of any Distribution  Date,
the excess of (x) the sum of (i) the aggregate Class Certificate  Balance of the
Senior Overcollateralized Certificates (after taking into account the payment of
the Overcollateralized Senior Principal Distribution Amount on such Distribution
Date),  (ii) the Class  Certificate  Balance  of the Class  T2-M-1  Certificates
(after   taking  into  account  the  payment  of  the  Class  T2-M-1   Principal

                                      -19-
<PAGE>
Distribution  Amount on such  Distribution  Date),  (iii) the Class  Certificate
Balance of the Class T2-M-2  Certificates (after taking into account the payment
of the Class T2-M-2 Principal  Distribution  Amount on such Distribution  Date),
(iv) the Class  Certificate  Balance  of the Class  T2-M-3  Certificates  (after
taking  into  account  the payment of the Class  T2-M-3  Principal  Distribution
Amount on such  Distribution  Date),  (v) the Class  Certificate  Balance of the
Class T2-M-4  Certificates  (after  taking into account the payment of the Class
T2-M-4 Principal  Distribution Amount on such Distribution Date), (vi) the Class
Certificate  Balance of the Class T2-M-5 Certificates (after taking into account
the  payment  of  the  Class  T2-M-5  Principal   Distribution  Amount  on  such
Distribution  Date),  (vii) the Class  Certificate  Balance of the Class  T2-M-6
Certificates  (after  taking  into  account  the  payment  of the  Class  T2-M-6
Principal  Distribution  Amount on such  Distribution  Date),  (viii)  the Class
Certificate  Balance of the Class T2-M-7 Certificates (after taking into account
the  payment  of  the  Class  T2-M-7  Principal   Distribution  Amount  on  such
Distribution  Date),  (ix) the Class  Certificate  Balance  of the Class  T2-M-8
Certificates  (after  taking  into  account  the  payment  of the  Class  T2-M-8
Principal  Distribution  Amount  on such  Distribution  Date)  and (x) the Class
Certificate Balance of the Class T2-B-1  Certificates  immediately prior to such
Distribution  Date over (y) the lesser of (a) the product of (i) 98.30% and (ii)
the aggregate Stated Principal  Balance of the Group T2 Mortgage Loans as of the
last day of the  related  Collection  Period  and (b) the  amount  by which  the
aggregate Stated Principal Balance of the Group T2 Mortgage Loans as of the last
day of the related  Collection  Period exceeds the product of (i) 0.35% and (ii)
the aggregate Stated Principal  Balance of the Group T2 Mortgage Loans as of the
Cut-off Date.

     Class T2-B-2 Principal  Distribution  Amount: As of any Distribution  Date,
the excess of (x) the sum of (i) the aggregate Class Certificate  Balance of the
Senior Overcollateralized Certificates (after taking into account the payment of
the Overcollateralized Senior Principal Distribution Amount on such Distribution
Date),  (ii) the Class  Certificate  Balance  of the Class  T2-M-1  Certificates
(after   taking  into  account  the  payment  of  the  Class  T2-M-1   Principal
Distribution  Amount on such  Distribution  Date),  (iii) the Class  Certificate
Balance of the Class T2-M-2  Certificates (after taking into account the payment
of the Class T2-M-2 Principal  Distribution  Amount on such Distribution  Date),
(iv) the Class  Certificate  Balance  of the Class  T2-M-3  Certificates  (after
taking  into  account  the payment of the Class  T2-M-3  Principal  Distribution
Amount on such  Distribution  Date),  (v) the Class  Certificate  Balance of the
Class T2-M-4  Certificates  (after  taking into account the payment of the Class
T2-M-4 Principal  Distribution Amount on such Distribution Date), (vi) the Class
Certificate  Balance of the Class T2-M-5 Certificates (after taking into account
the  payment  of  the  Class  T2-M-5  Principal   Distribution  Amount  on  such
Distribution  Date),  (vii) the Class  Certificate  Balance of the Class  T2-M-6
Certificates  (after  taking  into  account  the  payment  of the  Class  T2-M-6
Principal  Distribution  Amount on such  Distribution  Date),  (viii)  the Class
Certificate  Balance of the Class T2-M-7 Certificates (after taking into account
the  payment  of  the  Class  T2-M-7  Principal   Distribution  Amount  on  such
Distribution  Date),  (ix) the Class  Certificate  Balance  of the Class  T2-M-8
Certificates  (after  taking  into  account  the  payment  of the  Class  T2-M-8
Principal  Distribution  Amount  on  such  Distribution  Date),  (x)  the  Class
Certificate  Balance of the Class T2-B-1 Certificates (after taking into account
the  payment  of  the  Class  T2-B-1  Principal   Distribution  Amount  on  such
Distribution  Date) and (xi) the Class  Certificate  Balance of the Class T2-B-2
Certificates  immediately prior to such Distribution Date over (y) the lesser of
(a) the product of (i) 99.30% and (ii) the aggregate Stated Principal Balance of
the Group T2 Mortgage Loans as of the last day of the related  Collection Period
and (b) the amount by which the aggregate Stated Principal  Balance of the Group

                                      -20-
<PAGE>
T2 Mortgage  Loans as of the last day of the related  Collection  Period exceeds
the product of (i) 0.35% and (ii) the aggregate Stated Principal  Balance of the
Group T2 Mortgage Loans as of the Cut-off Date.

     Class T2-M-1 Principal  Distribution  Amount: As of any Distribution  Date,
the excess of (x) the sum of (i) the aggregate Class Certificate  Balance of the
Senior Overcollateralized Certificates (after taking into account the payment of
the Overcollateralized Senior Principal Distribution Amount on such Distribution
Date) and (ii) the Class  Certificate  Balance of the Class T2-M-1  Certificates
immediately  prior to such  Distribution  Date  over (y) the  lesser  of (a) the
product of (i) 90.10% and (ii) the  aggregate  Stated  Principal  Balance of the
Group T2 Mortgage Loans as of the last day of the related  Collection Period and
(b) the amount by which the aggregate Stated  Principal  Balance of the Group T2
Mortgage Loans as of the last day of the related  Collection  Period exceeds the
product  of (i) 0.35% and (ii) the  aggregate  Stated  Principal  Balance of the
Group T2 Mortgage Loans as of the Cut-off Date.

     Class T2-M-2 Principal  Distribution  Amount: As of any Distribution  Date,
the excess of (x) the sum of (i) the aggregate Class Certificate  Balance of the
Senior Overcollateralized Certificates (after taking into account the payment of
the Overcollateralized Senior Principal Distribution Amount on such Distribution
Date),  (ii) the Class  Certificate  Balance  of the Class  T2-M-1  Certificates
(after   taking  into  account  the  payment  of  the  Class  T2-M-1   Principal
Distribution  Amount on such Distribution  Date) and (iii) the Class Certificate
Balance of the Class T2-M-2 Certificates  immediately prior to such Distribution
Date over (y) the lesser of (a) the product of (i) 91.30% and (ii) the aggregate
Stated  Principal  Balance of the Group T2 Mortgage  Loans as of the last day of
the related  Collection  Period and (b) the amount by which the aggregate Stated
Principal  Balance  of the  Group  T2  Mortgage  Loans as of the last day of the
related  Collection  Period  exceeds  the  product  of (i)  0.35%  and  (ii) the
aggregate  Stated  Principal  Balance of the Group T2  Mortgage  Loans as of the
Cut-off Date.

     Class T2-M-3 Principal  Distribution  Amount: As of any Distribution  Date,
the excess of (x) the sum of (i) the aggregate Class Certificate  Balance of the
Senior Overcollateralized Certificates (after taking into account the payment of
the Overcollateralized Senior Principal Distribution Amount on such Distribution
Date),  (ii) the Class  Certificate  Balance  of the Class  T2-M-1  Certificates
(after   taking  into  account  the  payment  of  the  Class  T2-M-1   Principal
Distribution  Amount on such  Distribution  Date),  (iii) the Class  Certificate
Balance of the Class T2-M-2  Certificates (after taking into account the payment
of the Class T2-M-2 Principal Distribution Amount on such Distribution Date) and
(iv) the Class Certificate Balance of the Class T2-M-3 Certificates  immediately
prior to such  Distribution  Date over (y) the lesser of (a) the  product of (i)
92.30% and (ii) the aggregate Stated Principal  Balance of the Group T2 Mortgage
Loans as of the last day of the related  Collection Period and (b) the amount by
which the aggregate Stated  Principal  Balance of the Group T2 Mortgage Loans as
of the last day of the  related  Collection  Period  exceeds  the product of (i)
0.35% and (ii) the aggregate Stated  Principal  Balance of the Group T2 Mortgage
Loans as of the Cut-off Date.

     Class T2-M-4 Principal  Distribution  Amount: As of any Distribution  Date,
the excess of (x) the sum of (i) the aggregate Class Certificate  Balance of the
Senior Overcollateralized Certificates (after taking into account the payment of
the Overcollateralized Senior Principal Distribution Amount on such Distribution

                                      -21-
<PAGE>

Date),  (ii) the Class  Certificate  Balance  of the Class  T2-M-1  Certificates
(after   taking  into  account  the  payment  of  the  Class  T2-M-1   Principal
Distribution  Amount on such  Distribution  Date),  (iii) the Class  Certificate
Balance of the Class T2-M-2  Certificates (after taking into account the payment
of the Class T2-M-2 Principal  Distribution  Amount on such Distribution  Date),
(iv) the Class  Certificate  Balance  of the Class  T2-M-3  Certificates  (after
taking  into  account  the payment of the Class  T2-M-3  Principal  Distribution
Amount on such Distribution  Date) and (v) the Class Certificate  Balance of the
Class T2-M-4  Certificates  immediately prior to such Distribution Date over (y)
the  lesser of (a) the  product  of (i)  93.30%  and (ii) the  aggregate  Stated
Principal  Balance  of the  Group  T2  Mortgage  Loans as of the last day of the
related  Collection  Period  and (b) the  amount by which the  aggregate  Stated
Principal  Balance  of the  Group  T2  Mortgage  Loans as of the last day of the
related  Collection  Period  exceeds  the  product  of (i)  0.35%  and  (ii) the
aggregate  Stated  Principal  Balance of the Group T2  Mortgage  Loans as of the
Cut-off Date.

     Class T2-M-5 Principal  Distribution  Amount: As of any Distribution  Date,
the excess of (x) the sum of (i) the aggregate Class Certificate  Balance of the
Senior Overcollateralized Certificates (after taking into account the payment of
the Overcollateralized Senior Principal Distribution Amount on such Distribution
Date),  (ii) the Class  Certificate  Balance  of the Class  T2-M-1  Certificates
(after   taking  into  account  the  payment  of  the  Class  T2-M-1   Principal
Distribution  Amount on such  Distribution  Date),  (iii) the Class  Certificate
Balance of the Class T2-M-2  Certificates (after taking into account the payment
of the Class T2-M-2 Principal  Distribution  Amount on such Distribution  Date),
(iv) the Class  Certificate  Balance  of the Class  T2-M-3  Certificates  (after
taking  into  account  the payment of the Class  T2-M-3  Principal  Distribution
Amount on such  Distribution  Date),  (v) the Class  Certificate  Balance of the
Class T2-M-4  Certificates  (after  taking into account the payment of the Class
T2-M-4 Principal  Distribution  Amount on such  Distribution  Date) and (vi) the
Class Certificate Balance of the Class T2-M-5 Certificates  immediately prior to
such  Distribution Date over (y) the lesser of (a) the product of (i) 94.30% and
(ii) the aggregate Stated Principal Balance of the Group T2 Mortgage Loans as of
the last day of the  related  Collection  Period and (b) the amount by which the
aggregate Stated Principal Balance of the Group T2 Mortgage Loans as of the last
day of the related  Collection  Period exceeds the product of (i) 0.35% and (ii)
the aggregate Stated Principal  Balance of the Group T2 Mortgage Loans as of the
Cut-off Date.

     Class T2-M-6 Principal  Distribution  Amount: As of any Distribution  Date,
the excess of (x) the sum of (i) the aggregate Class Certificate  Balance of the
Senior Overcollateralized Certificates (after taking into account the payment of
the Overcollateralized Senior Principal Distribution Amount on such Distribution
Date),  (ii) the Class  Certificate  Balance  of the Class  T2-M-1  Certificates
(after   taking  into  account  the  payment  of  the  Class  T2-M-1   Principal
Distribution  Amount on such  Distribution  Date),  (iii) the Class  Certificate
Balance of the Class T2-M-2  Certificates (after taking into account the payment
of the Class T2-M-2 Principal  Distribution  Amount on such Distribution  Date),
(iv) the Class  Certificate  Balance  of the Class  T2-M-3  Certificates  (after
taking  into  account  the payment of the Class  T2-M-3  Principal  Distribution
Amount on such  Distribution  Date),  (v) the Class  Certificate  Balance of the
Class T2-M-4  Certificates  (after  taking into account the payment of the Class
T2-M-4 Principal  Distribution Amount on such Distribution Date), (vi) the Class
Certificate  Balance of the Class T2-M-5 Certificates (after taking into account
the  payment  of  the  Class  T2-M-5  Principal   Distribution  Amount  on  such
Distribution  Date) and (vii) the Class Certificate  Balance of the Class T2-M-6
Certificates  immediately prior to such Distribution Date over (y) the lesser of
(a) the product of (i) 95.30% and (ii) the aggregate Stated Principal Balance of

                                      -22-
<PAGE>
the Group T2 Mortgage Loans as of the last day of the related  Collection Period
and (b) the amount by which the aggregate Stated Principal  Balance of the Group
T2 Mortgage  Loans as of the last day of the related  Collection  Period exceeds
the product of (i) 0.35% and (ii) the aggregate Stated Principal  Balance of the
Group T2 Mortgage Loans as of the Cut-off Date.

     Class T2-M-7 Principal  Distribution  Amount: As of any Distribution  Date,
the excess of (x) the sum of (i) the aggregate Class Certificate  Balance of the
Senior Overcollateralized Certificates (after taking into account the payment of
the Overcollateralized Senior Principal Distribution Amount on such Distribution
Date),  (ii) the Class  Certificate  Balance  of the Class  T2-M-1  Certificates
(after   taking  into  account  the  payment  of  the  Class  T2-M-1   Principal
Distribution  Amount on such  Distribution  Date),  (iii) the Class  Certificate
Balance of the Class T2-M-2  Certificates (after taking into account the payment
of the Class T2-M-2 Principal  Distribution  Amount on such Distribution  Date),
(iv) the Class  Certificate  Balance  of the Class  T2-M-3  Certificates  (after
taking  into  account  the payment of the Class  T2-M-3  Principal  Distribution
Amount on such  Distribution  Date),  (v) the Class  Certificate  Balance of the
Class T2-M-4  Certificates  (after  taking into account the payment of the Class
T2-M-4 Principal  Distribution Amount on such Distribution Date), (vi) the Class
Certificate  Balance of the Class T2-M-5 Certificates (after taking into account
the  payment  of  the  Class  T2-M-5  Principal   Distribution  Amount  on  such
Distribution  Date),  (vii) the Class  Certificate  Balance of the Class  T2-M-6
Certificates  (after  taking  into  account  the  payment  of the  Class  T2-M-6
Principal  Distribution  Amount on such Distribution  Date) and (viii) the Class
Certificate Balance of the Class T2-M-7  Certificates  immediately prior to such
Distribution  Date over (y) the lesser of (a) the product of (i) 96.30% and (ii)
the aggregate Stated Principal  Balance of the Group T2 Mortgage Loans as of the
last day of the  related  Collection  Period  and (b) the  amount  by which  the
aggregate Stated Principal Balance of the Group T2 Mortgage Loans as of the last
day of the related  Collection  Period exceeds the product of (i) 0.35% and (ii)
the aggregate Stated Principal  Balance of the Group T2 Mortgage Loans as of the
Cut-off Date.

     Class T2-M-8 Principal  Distribution  Amount: As of any Distribution  Date,
the excess of (x) the sum of (i) the aggregate Class Certificate  Balance of the
Senior Overcollateralized Certificates (after taking into account the payment of
the Overcollateralized Senior Principal Distribution Amount on such Distribution
Date),  (ii) the Class  Certificate  Balance  of the Class  T2-M-1  Certificates
(after   taking  into  account  the  payment  of  the  Class  T2-M-1   Principal
Distribution  Amount on such  Distribution  Date),  (iii) the Class  Certificate
Balance of the Class T2-M-2  Certificates (after taking into account the payment
of the Class T2-M-2 Principal  Distribution  Amount on such Distribution  Date),
(iv) the Class  Certificate  Balance  of the Class  T2-M-3  Certificates  (after
taking  into  account  the payment of the Class  T2-M-3  Principal  Distribution
Amount on such  Distribution  Date),  (v) the Class  Certificate  Balance of the
Class T2-M-4  Certificates  (after  taking into account the payment of the Class
T2-M-4 Principal  Distribution Amount on such Distribution Date), (vi) the Class
Certificate  Balance of the Class T2-M-5 Certificates (after taking into account
the  payment  of  the  Class  T2-M-5  Principal   Distribution  Amount  on  such
Distribution  Date),  (vii) the Class  Certificate  Balance of the Class  T2-M-6
Certificates  (after  taking  into  account  the  payment  of the  Class  T2-M-6
Principal  Distribution  Amount on such  Distribution  Date),  (viii)  the Class
Certificate  Balance of the Class T2-M-7 Certificates (after taking into account
the  payment  of  the  Class  T2-M-7  Principal   Distribution  Amount  on  such
Distribution  Date) and (ix) the Class  Certificate  Balance of the Class T2-M-8
Certificates  immediately prior to such Distribution Date over (y) the lesser of

                                      -23-
<PAGE>
(a) the product of (i) 97.30% and (ii) the aggregate Stated Principal Balance of
the Group T2 Mortgage Loans as of the last day of the related  Collection Period
and (b) the amount by which the aggregate Stated Principal  Balance of the Group
T2 Mortgage  Loans as of the last day of the related  Collection  Period exceeds
the product of (i) 0.35% and (ii) the aggregate Stated Principal  Balance of the
Group T2 Mortgage Loans as of the Cut-off Date.

     Class Unpaid Interest Shortfall: As to any Distribution Date and each Class
of  interest-bearing  Shifting  Interest  Certificates,  the amount by which the
aggregate Class Interest  Shortfalls for such Class on prior  Distribution Dates
exceeds the amount of interest  actually  distributed  on such Class (or, in the
case of the Class 1-A-5 and Class  1-A-6  Certificates  prior to the  applicable
Accretion  Termination  Date,  the amount  included in the Class  1-A-5  Accrual
Distribution Amount or Class 1-A-6 Accrual  Distribution  Amount, as applicable,
pursuant to clause (ii) of the definition thereof,  but not distributed pursuant
to the proviso in Section  5.02(a)(i)) on such prior Distribution Dates pursuant
to clause (ii) of the definition of "Interest Distribution Amount."

     Closing Date: October 30, 2006.

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

     Collection  Period:  With respect to any Distribution Date, the period from
the  second  day of the  calendar  month  preceding  the  month  in  which  such
Distribution  Date  occurs  through  the first  day of the  month in which  such
Distribution Date occurs.

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

     Compensating Interest:  With respect to any Distribution Date and Servicer,
an amount equal to the lesser of (a) the aggregate Servicing Fee payable to such
Servicer for the Mortgage  Loans serviced by such Servicer as of the Due Date of
the month preceding the month of such Distribution Date and (b) the aggregate of
the  Prepayment  Interest  Shortfalls  on the  Mortgage  Loans  serviced by such
Servicer resulting from Principal  Prepayments on such Mortgage Loans during the
related Prepayment Period; provided, however,  Compensating Interest payable for
any month by BANA will be limited  to  one-twelfth  of 0.2500% of the  aggregate
Stated Principal  Balance of the Mortgage Loans serviced by BANA,  calculated as
of the Due Date of the month preceding the month of such Distribution Date.

     Compliance Statement: As defined in Section 3.20.

     Cooperative:  A  private,  cooperative  housing  corporation  which owns or
leases land and all or part of a building or  buildings,  including  apartments,
spaces used for commercial  purposes and common areas therein and whose board of
directors authorizes, among other things, the sale of Cooperative Stock.

     Cooperative Apartment:  A dwelling unit in a multi-dwelling  building owned
or leased by a Cooperative,  which unit the Mortgagor has an exclusive  right to
occupy pursuant to the terms of a proprietary lease or occupancy agreement.

     Cooperative  Lease:  With respect to a Cooperative  Loan,  the  proprietary
lease or occupancy agreement with respect to the Cooperative  Apartment occupied

                                      -24-
<PAGE>
by the Mortgagor and relating to the related  Cooperative  Stock, which lease or
agreement  confers an exclusive right to the holder of such Cooperative Stock to
occupy such apartment.

     Cooperative  Loans:  Any  of  the  Mortgage  Loans  made  in  respect  of a
Cooperative  Apartment,  evidenced  by a  Mortgage  Note  and  secured  by (i) a
Security  Agreement,  (ii) the related  Cooperative Stock Certificate,  (iii) an
assignment or mortgage of the Cooperative  Lease, (iv) financing  statements and
(v) a stock  power (or other  similar  instrument),  and  ancillary  thereto,  a
Recognition  Agreement,  each of which was transferred and assigned to the Trust
pursuant to Section 2.01.

     Cooperative   Stock:  With  respect  to  a  Cooperative  Loan,  the  single
outstanding class of stock,  partnership  interest or other ownership instrument
in the related Cooperative.

     Cooperative  Stock  Certificate:  With respect to a Cooperative  Loan,  the
stock certificate or other instrument evidencing the related Cooperative Stock.

     Corporate  Trust  Office:  With respect to the  Trustee,  the office of the
Trustee, which office at the date of the execution of this instrument is located
at 209 South LaSalle Street,  Suite 300,  Chicago,  Illinois  60604,  Attention:
Corporate Trust Services,  BAFC,  Series 2006-7, or at such other address as the
Trustee may designate from time to time by notice to the Certificateholders, the
Depositor, the Securities Administrator and the Master Servicer. With respect to
the  Securities  Administrator,  the  principal  corporate  trust  office of the
Securities  Administrator  at which at any particular  time its corporate  trust
business with respect to this  Agreement is conducted,  which office at the date
of the  execution  of this  instrument  is located at 9062 Old  Annapolis  Road,
Columbia,  Maryland  21045-1951,  Attention:  Corporate  Trust  Services  - BAFC
2006-7,  and for  certificate  transfer  purposes is located at Sixth Street and
Marquette  Avenue,  Minneapolis,  Minnesota  55479,  Attention:  Corporate Trust
Services - BAFC 2006-7, or at such other address as the Securities Administrator
may  designate  from  time to  time by  notice  to the  Certificateholders,  the
Depositor, the Trustee and the Master Servicer.

     Corresponding Class or Classes: As to the following Uncertificated Shifting
Interest Middle-Tier  Interests,  the corresponding Shifting Interest Upper-Tier
Interests or Shifting Interest Certificates as follows:
<TABLE>
<CAPTION>
--------------------------------------------- ------------------------------------ -----------------------------------
      Uncertificated Shifting Interest          Corresponding Shifting Interest     Corresponding Shifting Interest
            Middle-Tier Interest                     Upper-Tier Interests                   Class or Classes
--------------------------------------------- ------------------------------------ -----------------------------------
<S>       <C> <C>                                   <C> <C>      <C> <C>                 <C> <C>      <C> <C>
Class MRI-1-A-1 Interest                      Class 1-A-1, Class 1-A-2 and Class   Class 1-A-1, Class 1-A-2 and
                                              1-A-3 Interest                       Class 1-A-3 Certificates
--------------------------------------------- ------------------------------------ -----------------------------------
Class MRI-1-A-R Interest                      Class 1-A-R Interest                 Class 1-A-R Certificate
--------------------------------------------- ------------------------------------ -----------------------------------
Class MRI-1-A-2 Interest                      Class 1-A-5 Interest                 Class 1-A-5 Certificates
--------------------------------------------- ------------------------------------ -----------------------------------
Class MRI-1-A-3 Interest                      Class 1-A-6 Interest                 Class 1-A-6 Certificates
--------------------------------------------- ------------------------------------ -----------------------------------
Class MRI-1-A-4 Interest                      Class 1-A-4, Class 1-A-7, Class      Class 1-A-4, Class 1-A-7, Class
                                              1-A-8, Class 1-A-9, Class 1-A-10,    1-A-8, Class 1-A-9, Class 1-A-10,
                                              Class 1-A-11 and Class 1-A-12        Class 1-A-11 and Class 1-A-12
                                              Interest                             Certificates
--------------------------------------------- ------------------------------------ -----------------------------------

                                      -25-
<PAGE>
--------------------------------------------- ------------------------------------ -----------------------------------
Class MRI-IO Interest                         Class 30-IO Interest                 Class 30-IO Certificates
--------------------------------------------- ------------------------------------ -----------------------------------
Class MRI-PO Interest                         Class 30-PO Interest                 Class 30-PO Certificates
--------------------------------------------- ------------------------------------ -----------------------------------
Class MRI-1-B-1 Interest                      Class 1-B-1 Interest                 Class 1-B-1 Certificates
--------------------------------------------- ------------------------------------ -----------------------------------
Class MRI-1-B-2 Interest                      Class 1-B-2 Interest                 Class 1-B-2 Certificates
--------------------------------------------- ------------------------------------ -----------------------------------
Class MRI-1-B-3 Interest                      Class 1-B-3 Interest                 Class 1-B-3 Certificates
--------------------------------------------- ------------------------------------ -----------------------------------
Class MRI-1-B-4 Interest                      Class 1-B-4 Interest                 Class 1-B-4 Certificates
--------------------------------------------- ------------------------------------ -----------------------------------
Class MRI-1-B-5 Interest                      Class 1-B-5 Interest                 Class 1-B-5 Certificates
--------------------------------------------- ------------------------------------ -----------------------------------
Class MRI-1-B-6 Interest                      Class 1-B-6 Interest                 Class 1-B-6 Certificates
--------------------------------------------- ------------------------------------ -----------------------------------
</TABLE>
     As to the following  Uncertificated  Lower-Tier II Regular  Interests,  the
corresponding Upper-Tier II Interest or Overcollateralized Class as follows:
<TABLE>
<CAPTION>
---------------------------------------------- ----------------------------------- -----------------------------------
Uncertificated Lower-Tier II Regular Interest     Uncertificated Upper-Tier II      Corresponding Overcollateralized
                                                        Regular Interest                         Class
---------------------------------------------- ----------------------------------- -----------------------------------
<S>                     <C>                                      <C> <C>                      <C> <C>
                  LRII-T2A1                               Class T2-A-1                 Class T2-A-1 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2A2                               Class T2-A-2                 Class T2-A-2 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2A3                               Class T2-A-3                 Class T2-A-3 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2A4                               Class T2-A-4                 Class T2-A-4 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2A5                               Class T2-A-5                 Class T2-A-5 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2A6                               Class T2-A-6                 Class T2-A-6 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2A7                               Class T2-A-7                 Class T2-A-7 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2A8                               Class T2-A-8                 Class T2-A-8 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2AA                               Class T2-A-A                 Class T2-A-A Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2AB                               Class T2-A-B                 Class T2-A-B Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2M1                               Class T2-M-1                 Class T2-M-1 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2M2                               Class T2-M-2                 Class T2-M-2 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2M3                               Class T2-M-3                 Class T2-M-3 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2M4                               Class T2-M-4                 Class T2-M-4 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2M5                               Class T2-M-5                 Class T2-M-5 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2M6                               Class T2-M-6                 Class T2-M-6 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2M7                               Class T2-M-7                 Class T2-M-7 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2M8                               Class T2-M-8                 Class T2-M-8 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2B1                               Class T2-B-1                 Class T2-B-1 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                  LRII-T2B2                               Class T2-B-2                 Class T2-B-2 Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                     N/A                                    Class CE                     Class CE Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
                   LRII-P                                   Class P                       Class P Certificates
---------------------------------------------- ----------------------------------- -----------------------------------
</TABLE>
     Counterparty: Bank of America, National Association.

     Custodian: Initially, the Trustee and thereafter any custodian appointed by
the Trustee  pursuant  to Section  9.12.  A Custodian  may (but need not) be the
Trustee or any Person  directly or  indirectly  controlling  or controlled by or
under  common  control  of  either of them.  None of the  Master  Servicer,  any
Servicer or the Depositor,  or any Person directly or indirectly  controlling or
controlled  by or under  common  control  with any such Person may be  appointed
Custodian.
                                      -26-
<PAGE>
     Customary  Servicing   Procedures:   With  respect  to  (i)  any  Servicer,
procedures (including collection procedures) that a Servicer customarily employs
and exercises in servicing and administering  mortgage loans for its own account
and which are in  accordance  with  accepted  mortgage  servicing  practices  of
prudent lending  institutions  servicing  mortgage loans of the same type as the
Mortgage Loans in the  jurisdictions in which the related  Mortgaged  Properties
are located and (ii) the Master Servicer, those master servicing procedures that
constitute  customary and usual  standards of practice of prudent  mortgage loan
master servicers.

     Cut-off Date: October 1, 2006.

     Cut-off Date Pool Principal Balance:  For each Loan Group, the aggregate of
the Stated Principal Balances of the Mortgage Loans in such Loan Group as of the
Cut-off Date, which is $334,399,962.14  for Loan Group 1 and $404,141,969.16 for
Loan Group T2.

     Debt Service Reduction: As to any Mortgage Loan and any Determination Date,
the excess of (i) the  Monthly  Payment  due on the  related  Due Date under the
terms of such  Mortgage  Loan over (ii) the  amount of the  monthly  payment  of
principal  and/or interest  required to be paid with respect to such Due Date by
the Mortgagor as established by a court of competent  jurisdiction  (pursuant to
an order which has become final and  nonappealable)  as a result of a proceeding
initiated by or against the related  Mortgagor  under the  Bankruptcy  Code,  as
amended  from time to time (11  U.S.C.);  provided  that no such excess shall be
considered a Debt Service Reduction so long as (a) the Servicer of such Mortgage
Loan  is  pursuing  an  appeal  of the  court  order  giving  rise  to any  such
modification  and (b)(1) such  Mortgage  Loan is not in default  with respect to
payment due thereunder in accordance  with the terms of such Mortgage Loan as in
effect on the Cut-off  Date or (2) Monthly  Payments  are being  advanced by the
applicable  Servicer,  the Master  Servicer or the Trustee,  as  applicable,  in
accordance  with the terms of such  Mortgage  Loan as in  effect on the  Cut-off
Date.

     Defective  Mortgage  Loan: Any Mortgage Loan which is required to be cured,
repurchased or substituted for pursuant to Sections 2.02 or 2.04.

     Deficient  Valuation:  As to any Mortgage Loan and any Determination  Date,
the excess of (i) the then  outstanding  indebtedness  under such  Mortgage Loan
over (ii) the secured  valuation  thereof  established  by a court of  competent
jurisdiction  (pursuant to an order which has become final and nonappealable) as
a result of a proceeding initiated by or against the related Mortgagor under the
Bankruptcy  Code,  as amended from time to time (11  U.S.C.),  pursuant to which
such Mortgagor  retained such Mortgaged  Property;  provided that no such excess
shall be considered a Deficient Valuation so long as (a) the applicable Servicer
is pursuing an appeal of the court  order  giving rise to any such  modification
and (b)(1) such  Mortgage  Loan is not in default  with  respect to payments due
thereunder  in  accordance  with the terms of such Mortgage Loan as in effect on
the Cut-off Date or (2) Monthly  Payments are being  advanced by the  applicable
Servicer, the Master Servicer or the Trustee, as applicable,  in accordance with
the terms of such Mortgage Loan as in effect on the Cut-off Date.

     Definitive Certificates: As defined in Section 6.02(c)(iii).

                                      -27-
<PAGE>
     Delinquent: Any Mortgage Loan with respect to which the Monthly Payment due
on a Due Date is not made by the close of  business  on the next  scheduled  Due
Date for such Mortgage Loan.

     Depositor: Banc of America Funding Corporation, a Delaware corporation,  or
its successor in interest, as depositor of the Trust Estate.

     Depository:  The Depository  Trust Company,  the nominee of which is Cede &
Co., as the registered  Holder of the Book-Entry  Certificates  or any successor
thereto appointed in accordance with this Agreement. The Depository shall at all
times be a "clearing  corporation" as defined in Section 8-102(3) of the Uniform
Commercial Code of the State of New York.

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

     Determination  Date:  With  respect to any  Distribution  Date and for each
Servicer, as defined in the applicable Servicing Agreement.

     Discount  Mortgage  Loan:  Any Group 1  Mortgage  Loan with a Net  Mortgage
Interest Rate as of the Cut-off Date that is less than 6.250% per annum.

     Distribution  Date:  The 25th day of each month  beginning in November 2006
(or, if such day is not a Business Day, the next Business Day).

     Due Date: As to any Distribution Date and each Mortgage Loan, the first day
in the calendar month of such Distribution Date.

     EDGAR:  The  Commission's  Electronic Data Gathering 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
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)  have  the  highest
short-term  ratings of each  Rating  Agency 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,  the  Securities  Administrator  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 trust  department of a federal or state chartered
depository  institution  or trust  company  (including  the Trustee,  the Master
Servicer and the Securities Administrator),  acting in its fiduciary capacity or
(iv) any other account  acceptable to each Rating Agency.  Eligible Accounts may

                                      -28-
<PAGE>
bear interest and may include,  if otherwise  qualified  under this  definition,
accounts  maintained  with the Trustee,  the Master  Servicer or the  Securities
Administrator.

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

     ERISA Restricted  Certificates:  Any of the Class 1-A-R, Class 1-B-4, Class
1-B-5,  Class  1-B-6,  Class  T2-B-1,   Class  T2-B-2,  Class  CE  and  Class  P
Certificates  and any  Certificate  that no longer meets the  applicable  rating
requirements of an Underwriter's Exemption.

     Escrow Account: As defined in Section 3.08.

     Escrow  Payments:  The amounts  constituting  taxes,  assessments,  Primary
Mortgage Insurance Policy premiums, fire and hazard insurance premiums and other
payments as may be required to be escrowed by the  Mortgagor  with the mortgagee
pursuant to the terms of any Mortgage Note or Mortgage.

     Events of Default: As defined in Section 8.01.

     Excess Proceeds:  With respect to any Liquidated Mortgage Loan, the amount,
if any, by which any Liquidation  Proceeds of such Mortgage Loan received in the
calendar  month in which such Mortgage Loan became a Liquidated  Mortgage  Loan,
net  of  any  amounts  previously  reimbursed  to  the  applicable  Servicer  as
Nonrecoverable Advance(s) with respect to such Mortgage Loan pursuant to Section
3.11(a)(iv),  exceeds  (i) the  unpaid  principal  balance  of  such  Liquidated
Mortgage Loan as of the Due Date in the month in which such Mortgage Loan became
a Liquidated  Mortgage Loan plus (ii) accrued interest at the Mortgage  Interest
Rate  from the Due  Date as to  which  interest  was  last  paid or for  which a
Periodic  Advance was made (and not reimbursed) up to the Due Date applicable to
the Distribution Date immediately following the calendar month during which such
liquidation occurred.

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

     Extra  Principal  Distribution  Amount:  As of any  Distribution  Date, the
lesser of (x) the Monthly Excess Interest Amount for such  Distribution Date and
(y) the Overcollateralization Deficiency for such Distribution Date.

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

     Final   Distribution  Date:  The  Distribution  Date  on  which  the  final
distribution in respect of some or all of the Certificates will be made pursuant
to Section 10.01.

     Financial Market Service: Bloomberg LP, Intex Solutions, Inc. and any other
financial  information provider designated by the Depositor by written notice to
the Securities Administrator.

     FIRREA: The Financial Institutions Reform,  Recovery and Enforcement Act of
1989, as amended.

     Fitch: Fitch Ratings, or any successor thereto.

                                      -29-
<PAGE>
     Form  8-K   Disclosure   Information:   As  defined  in  Section   3.22(d).

     Fractional Interest: As defined in Section 5.02(d).

     Group 1 Mortgage  Loan:  Each  Mortgage  Loan listed on Exhibit D-1 hereto.

     Group T2 Mortgage Loans:  Each Mortgage Loan listed on Exhibit D-T2 hereto.

     Group T2 Optional  Termination  Date: The first  Distribution Date on which
all of the Group T2 Mortgage Loans and all related REO Property remaining in the
Trust Estate may be purchased pursuant to Section 10.01.

     Holder: A Certificateholder.

     Indenture:  An indenture  relating to the  issuance of net interest  margin
notes secured entirely or in part by all or a portion of the Class CE or Class P
Certificates, which may or may not be guaranteed by the NIMS Insurer.

     Independent:  When used with respect to any  specified  Person means such a
Person  who  (i) is in fact  independent  of the  Depositor,  the  Trustee,  the
Securities  Administrator,  the Master Servicer and the Servicers, (ii) does not
have any direct financial  interest or any material indirect  financial interest
in the Depositor, the Trustee, the Securities Administrator, the Master Servicer
or the  Servicers or in an affiliate of any of them,  and (iii) is not connected
with the  Depositor,  the  Trustee,  the  Securities  Administrator,  the Master
Servicer  or the  Servicers  as an  officer,  employee,  promoter,  underwriter,
trustee,  partner,  director or person performing similar  functions.  When used
with  respect  to any  accountants,  a Person  who is  "independent"  within the
meaning of Rule 2-01(B) of the Commission's Regulation S-X.

     Initial Balance: As set forth in the Preliminary Statement.

     Initial Class Certificate  Balance: As to each Class of Certificates (other
than the Class CE Certificates),  the Class Certificate Balance set forth in the
Preliminary Statement.

     Initial  Notional Amount:  As to each Class of Interest Only  Certificates,
the Notional Amount set forth in the Preliminary Statement.

     Initial Overcollateralization Amount: $1,411,869.16.

     Insurance  Policy:  With respect to any Mortgage Loan included in the Trust
Estate,  any Primary  Mortgage  Insurance  Policy or any other insurance  policy
(including  any  policy  covering  any  Mortgage  Loan  or  Mortgaged  Property,
including without  limitation,  any hazard insurance policy required pursuant to
Section  3.12,  any title  insurance  policy  described  in Section 2.01 and any
Federal  Housing  Administration  insurance  policies and Department of Veterans
Affairs insurance  policies),  including all riders and endorsements  thereto in
effect, including any replacement policy or policies for any Insurance Policies.

                                      -30-
<PAGE>
     Insurance  Proceeds:  Proceeds paid by an insurer pursuant to any Insurance
Policy,  in each case other than any amount included in such Insurance  Proceeds
in respect of Insured Expenses.

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

     Interest  Accrual  Period:  As to any  Distribution  Date and each Class of
interest-bearing  Shifting  Interest  Certificates  (other than the Class 1-A-1,
Class  1-A-2,  Class 1-A-3 and Class 1-A-4  Certificates)  and  interest-bearing
Overcollateralized  Certificates  (other  than  the  Class CE and  Class  T2-A-2
Certificates), the period from and including the first day of the calendar month
preceding the calendar month of such  Distribution Date to but not including the
first  day  of  the  calendar  month  of  such  Distribution  Date.  As  to  any
Distribution Date and the Class 1-A-1, Class 1-A-2, Class 1-A-3, Class 1-A-4 and
Class T2-A-2  Certificates,  the period from and including the Distribution Date
in the prior month (or the Closing Date, in the case of the first period) to but
not including the then current Distribution Date. The Class CE Certificates have
no Interest Accrual Period.

     Interest  Carry  Forward  Amount:  For  any  Class  of   Overcollateralized
Certificates  (other  than  the  Class  CE and  Class  P  Certificates)  and any
Distribution Date, the sum of (a) the excess, if any, of the  Overcollateralized
Accrued  Certificate  Interest  for such  Distribution  Date over the  amount in
respect of interest  actually  distributed  on such Class for such  Distribution
Date,  (b) any  remaining  unpaid  Interest  Carry  Forward  Amount  from  prior
Distribution  Dates and (c) interest on such  remaining  Interest  Carry Forward
Amount  referred to in clause (b) at the  applicable  Pass-Through  Rate for the
related Interest Accrual Period.

     Interest  Distribution  Amount: For any Distribution Date and each Class of
Shifting  Interest  Certificates,  the  sum of  (i)  Shifting  Interest  Accrued
Certificate Interest,  subject to reduction pursuant to Section 5.02(c) and (ii)
any Class Unpaid Interest Shortfall for such Class.

     Interest Only Certificates:  The Class 1-A-3 and Class 30-IO  Certificates.

     Interest    Percentage:    With   respect   to   any   Class   of   Offered
Overcollateralized  Certificates or Class T2-B Certificates and any Distribution
Date,  the  ratio  (expressed  as a  decimal  carried  to  six  places)  of  the
Overcollateralized Accrued Certificate Interest for such Class to the sum of the
Overcollateralized  Accrued  Certificate  Interest  for all  Classes  of Offered
Overcollateralized  Certificates and Class T2-B Certificates,  in each case with
respect to such Distribution Date, without regard to Relief Act Reductions.

     Interest Rate: As set forth in the Preliminary Statement.

     Interest  Remittance  Amount: As of any Distribution Date, the sum, without
duplication,  of (i) all  interest  collected  or advanced  with  respect to the
related  Collection  Period  on the  Group T2  Mortgage  Loans  received  by the
Servicers on or prior to the Determination Date for such Distribution Date (less
the Servicing Fees for the Group T2 Mortgage Loans,  certain  amounts  available

                                      -31-
<PAGE>
for  reimbursement  of Advances with respect to the Group T2 Mortgage  Loans and
certain other reimbursable  expenses and indemnities  pursuant to this Agreement
and the  Servicing  Agreements),  (ii)  all  Compensating  Interest  paid by the
Servicers  for such  Distribution  Date with  respect  to the Group T2  Mortgage
Loans,  (iii) the  portion  of any  payment  in  connection  with any  Principal
Prepayment, Substitution Adjustment Amount, Repurchase Price, Insurance Proceeds
or  Liquidation  Proceeds  relating  to  interest  with  respect to the Group T2
Mortgage  Loans  received  during  the  related  Prepayment  Period,   (iv)  any
Reimbursement  Amounts  received  with  respect to the Group T2  Mortgage  Loans
during the related  Prepayment  Period and (v) on the Distribution Date on which
the Group T2 Mortgage Loans and related REO Property are purchased in accordance
with  Section  10.01  hereof,  that portion of the  purchase  price  therefor in
respect of interest.

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

     LIBOR  Certificates:  Any of the Class 1-A-1,  Class 1-A-2, Class 1-A-3 and
Class T2-A-2 Certificates.

     LIBOR  Determination Date: With respect to each class of Certificates whose
Pass-Through Rate or Certificate  Interest Rate is based on One-Month LIBOR, for
each Distribution Date beginning with the second  Distribution  Date, the second
LIBOR Business Day prior to the immediately preceding Distribution Date.

     Liquidated  Mortgage  Loan:  With  respect  to  any  Distribution  Date,  a
defaulted  Mortgage Loan (including any REO Property) that was liquidated in the
related Prepayment Period and as to which the applicable  Servicer has certified
(in accordance with the applicable Servicing Agreement) that it has received all
proceeds  it  expects  to receive in  connection  with the  liquidation  of such
Mortgage Loan including the final disposition of an REO Property.

     Liquidation Proceeds:  Amounts,  including Insurance Proceeds,  received in
connection with the partial or complete liquidation of defaulted 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,
less the sum of related unreimbursed Servicing Fees and Advances.

     Loan Group: Any of Loan Group 1 or Loan Group T2.

     Loan Group 1: The Group 1 Mortgage Loans.

     Loan Group T2: The Group T2 Mortgage Loans.

     Loan-to-Value  Ratio:  With  respect to any  Mortgage  Loan and any date of
determination,  the fraction,  expressed as a percentage, the numerator of which
is the outstanding principal balance of the related Mortgage Loan at origination
and the  denominator  of which is the Appraised  Value of the related  Mortgaged
Property.

     Losses: As defined in Section 5.11.

     Lower-Tier II Certificate  Sub-Account:  The sub-account of the Certificate
Account designated by the Securities Administrator pursuant to Section 3.09(h).

                                      -32-
<PAGE>

     Lower-Tier II Corresponding Marker Interests: The Class LRII-T2A1 Interest,
Class LRII-T2A2 Interest,  Class LRII-T2A3  Interest,  Class LRII-T2A4 Interest,
Class LRII-T2A5 Interest,  Class LRII-T2A6  Interest,  Class LRII-T2A7 Interest,
Class LRII-T2A8 Interest,  Class LRII-T2AA  Interest,  Class LRII-T2AB Interest,
Class LRII-T2M1 Interest,  Class LRII-T2M2  Interest,  Class LRII-T2M3 Interest,
Class LRII-T2M4 Interest,  Class LRII-T2M5  Interest,  Class LRII-T2M6 Interest,
Class LRII-T2M7 Interest, Class LRII-T2M8 Interest, Class LRII-T2B1 Interest and
Class LRII-T2B2 Interest.

     Lower-Tier II REMIC: As defined in the Preliminary Statement, the assets of
which consist of the Group T2 Mortgage  Loans,  such amounts as shall be held in
the  Lower-Tier II  Certificate  Sub-Account,  the insurance  policies,  if any,
relating  to a Group T2  Mortgage  Loan and  property  which  secured a Group T2
Mortgage  Loan and which has been  acquired  by  foreclosure  or deed in lieu of
foreclosure. The Lower-Tier II REMIC will not include the Cap Carryover Amounts,
the Cap Carryover  Reserve Account,  the  Overcollateralized  Yield  Maintenance
Agreement or the Overcollateralized Reserve Fund.

     Lower-Tier II REMIC Interest Loss  Allocation  Amount:  With respect to any
Distribution  Date,  an amount  equal to (a) the  product  of (i) the  aggregate
Stated  Principal  Balance  of the  Group T2  Mortgage  Loans  and  related  REO
Properties  then  outstanding  and (ii) the  Uncertificated  Lower-Tier II REMIC
Pass-Through Rate for the Class LRII-AA Interest minus the Marker Rate,  divided
by (b) 12.

     Lower-Tier  II  REMIC  Overcollateralization  Target  Amount:  1.00% of the
Targeted Overcollateralization Amount.

     Lower-Tier II REMIC Overcollateralized  Amount: With respect to any date of
determination,  (i)  1.00%  of  the  aggregate  Uncertificated  Balances  of the
Uncertificated  Lower-Tier II Regular  Interests minus (ii) the aggregate of the
Uncertificated  Balances of the Lower-Tier II Corresponding Marker Interests and
the Class LRII-P Interest, in each case as of such date of determination.

     Lower-Tier II REMIC Principal Loss Allocation  Amount:  With respect to any
Distribution  Date,  an amount  equal to (a) the  product  of (i) the  aggregate
Stated  Principal  Balance  of the  Group T2  Mortgage  Loans  and  related  REO
Properties then outstanding and (ii) 1 minus a fraction,  the numerator of which
is two times the aggregate of the  Uncertificated  Balances of the Lower-Tier II
Corresponding Marker Interests, and the denominator of which is the aggregate of
the Uncertificated  Balances of the Lower-Tier II Corresponding Marker Interests
and the Class LRII-ZZ Interest.

     Marker Rate:  With respect to the Class CE Upper-Tier  II Regular  Interest
and any Distribution  Date, a per annum rate equal to two (2) times the weighted
average of the  Uncertificated  Lower-Tier II REMIC  Pass-Through  Rates for the
Lower-Tier II Corresponding Marker Interests and the Class LRII-ZZ Interest, (i)
with the rate on each such Uncertificated  Lower-Tier II Regular Interest (other
than the Class LRII-ZZ Interest) subject to a cap equal to the lesser of (a) the
Base Rate of its  Corresponding  Upper-Tier II Regular Interest and (b) the Pool
Cap for the  purposes  of this  calculation  and (ii) with the rate on the Class
LRII-ZZ Interest  subject to a cap of zero for the purpose of this  calculation;

                                      -33-
<PAGE>
provided,  however,  that for this purpose,  calculations of the  Uncertificated
Lower-Tier II REMIC  Pass-Through  Rate and the related caps with respect to the
Class  LRII-T2A2  Interest  shall be multiplied by a fraction,  the numerator of
which is the actual number of days in the related  Interest  Accrual  Period and
the denominator of which is 30.

     Master  Servicer:  Wells Fargo Bank,  N.A., and any  successors-in-interest
and, if a successor master servicer is appointed hereunder,  such successor,  as
master servicer.

     Master  Servicer  Custodial  Account:  The  Eligible  Account  created  and
maintained by the Master Servicer pursuant to Section 3.09(c) in the name of the
Master Servicer for the benefit of the  Certificateholders and designated "Wells
Fargo Bank,  N.A., as Master  Servicer,  in trust for the registered  holders of
Banc of America Funding Corporation Mortgage Pass-Through  Certificates,  Series
2006-7."

     Master  Servicer   Custodial   Account   Reinvestment   Income:   For  each
Distribution  Date,  all income and gains net of any losses  realized  since the
preceding  Distribution  Date from Permitted  Investments of funds in the Master
Servicer Custodial Account.

     Master Servicer's Certificate: The monthly report required by Section 4.01.

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

     Master  Servicing   Transfer  Costs:  All  reasonable  costs  and  expenses
(including  attorney's  fees)  incurred  by the  Trustee or a  successor  master
servicer in connection with the transfer of master servicing or servicing from a
predecessor  master  servicer,  including,  without  limitation,  any  costs  or
expenses  associated with the complete  transfer of all master servicing data or
servicing data and the  completion,  correction or  manipulation  of such master
servicing  data or servicing data as may be required by the Trustee or successor
master servicer to correct any errors or insufficiencies in the master servicing
data or servicing data or otherwise to enable the Trustee or a successor  master
servicer  to master  service  or  service,  as the case may be,  the  applicable
Mortgage Loans properly and effectively.

     Maximum LRII-ZZ  Uncertificated  Accrued  Interest  Deferral  Amount:  With
respect to any  Distribution  Date,  the excess of (a)  accrued  interest at the
Uncertificated  Lower-Tier II REMIC  Pass-Through  Rate  applicable to the Class
LRII-ZZ  Interest  for  such  Distribution  Date  on  a  balance  equal  to  the
Uncertificated  Balance of the Class LRII-ZZ  Interest  minus the  Lower-Tier II
REMIC  Overcollateralized  Amount, in each case for such Distribution Date, over
(b)  Uncertificated  Accrued Interest on the Lower-Tier II Corresponding  Marker
Interests,  each  subject  to a cap equal to the  lesser of (i) Base Rate of the
related  Corresponding   Overcollateralized   Class  for  the  purpose  of  this
calculation  and (ii) the Pool Cap;  provided,  however,  that for this purpose,
calculations of the Uncertificated Lower-Tier II REMIC Pass-Through Rate and the
related  caps with  respect  to  Uncertificated  Accrued  Interest  on the Class
LRII-T2A2 Interest shall be multiplied by a fraction,  the numerator of which is
the actual number of days in the Interest  Accrual Period and the denominator of
which is 30.

                                      -34-
<PAGE>
     MERS: As defined in Section 2.01(b)(iii).

     Mezzanine Certificates: The Class T2-M-1, Class T2-M-2, Class T2-M-3, Class
T2-M-4,  Class T2-M-5, Class T2-M-6, Class T2-M-7 and Class T2-M-8 Certificates,
each of which  represents (i) the  corresponding  Upper-Tier II Regular Interest
for purposes of the REMIC  Provisions  and (ii) the right to receive the related
Cap Carryover Amounts.

     Monthly Covered Amount: As defined in the Mortgage Loan Purchase Agreement.

     Monthly Excess Cashflow Amount:  For any Distribution  Date, the sum of the
Monthly   Excess   Interest   Amount   for   such    Distribution    Date,   the
Overcollateralization  Release  Amount for such  Distribution  Date and (without
duplication)  any portion of the Principal  Distribution  Amount remaining after
principal distributions on the Offered Overcollateralized Certificates and Class
T2-B Certificates on such Distribution Date.

     Monthly Excess Interest Amount: With respect to each Distribution Date, the
amount, if any, by which the Interest  Remittance  Amounts for such Distribution
Date exceeds the aggregate amount  distributed on such  Distribution Date to the
Overcollateralized  Certificates  pursuant to Section 5.03(a)  priorities  first
through twelfth.

     Monthly  Payment:  The scheduled  monthly payment on a Mortgage Loan due on
any Due Date allocable to principal and/or interest on such Mortgage Loan which,
unless otherwise specified herein, shall give effect to any related Debt Service
Reduction  and any  Deficient  Valuation  that  affect the amount of the monthly
payment due on such Mortgage Loan.

     Monthly Statement: As defined in Section 5.05(b).

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

     Mortgage: The mortgage,  deed of trust or other instrument creating a first
lien on a Mortgaged  Property  securing a Mortgage Note or creating a first lien
on a leasehold interest.

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

     Mortgage  Interest  Rate:  As to any Mortgage  Loan,  the per annum rate of
interest at which  interest  accrues on the  principal  balance of such Mortgage
Loan in accordance with the provisions of the related Mortgage Note.

     Mortgage Loan  Purchase  Agreement:  The Mortgage Loan Purchase  Agreement,
dated  October  30,  2006,  between  BANA,  as  seller,  and the  Depositor,  as
purchaser.

     Mortgage Loan  Schedule:  The list of Mortgage  Loans (as from time to time
amended by the Master  Servicer to reflect the addition of  Substitute  Mortgage
Loans and the deletion of Defective Mortgage Loans pursuant to the provisions of
this Agreement)  transferred to the Trustee as part of the Trust Estate and from

                                      -35-
<PAGE>
time to time  subject to this  Agreement,  attached  hereto as  Exhibit  D-1 and
Exhibit  D-T2  setting  forth the  following  information  with  respect to each
Mortgage Loan: (i) the Mortgage Loan identifying  number; (ii) a code indicating
whether the Mortgaged  Property is  owner-occupied;  (iii) the property type for
each Mortgaged  Property;  (iv) the original months to maturity or the remaining
months  to  maturity  from the  Cut-off  Date;  (v) the  Loan-to-Value  Ratio at
origination;  (vi) the Mortgage Interest Rate; (vii) the date on which the first
Monthly  Payment was due on the Mortgage Loan,  and, if such date is not the Due
Date currently in effect,  such Due Date;  (viii) the stated maturity date; (ix)
the amount of the Monthly  Payment as of the Cut-off Date; (x) the  paid-through
date;  (xi) the  original  principal  amount  of the  Mortgage  Loan;  (xii) the
principal  balance  of the  Mortgage  Loan as of the  close of  business  on the
Cut-off Date,  after  application  of payments of principal due on or before the
Cut-off  Date,  whether or not  collected,  and after  deduction of any payments
collected  of  scheduled  principal  due after the Cut-off  Date;  (xiii) a code
indicating  the  purpose  of the  Mortgage  Loan;  (xiv) a code  indicating  the
documentation  style;  (xv) a code  indicating the initial  Servicer;  (xvi) the
Appraised  Value;  (xvii) the closing date of the Mortgage Loan;  (xviii) a code
indicating  whether the  Mortgage  Loan has a Prepayment  Charge;  and (xix) the
Servicing Fee Rate.  With respect to the Mortgage  Loans in the  aggregate,  the
Mortgage Loan  Schedule  shall set forth the  following  information,  as of the
Cut-off  Date:  (i) the number of Mortgage  Loans;  (ii) the  current  aggregate
outstanding  principal balance of the Mortgage Loans; (iii) the weighted average
Mortgage  Interest  Rate of the Mortgage  Loans;  and (iv) the weighted  average
months to maturity of the Mortgage Loans.

     Mortgage Loans:  Such of the mortgage loans transferred and assigned to the
Trustee  pursuant to Section 2.01 as from time to time are held as a part of the
Trust Estate  (including  any Substitute  Mortgage Loans and REO Property),  the
Mortgage  Loans  originally  so  held  being  identified  in the  Mortgage  Loan
Schedule.

     Mortgage  Note:   The  originally   executed  note  or  other  evidence  of
indebtedness  evidencing the  indebtedness of a Mortgagor under a Mortgage Loan,
together with all riders thereto and amendments thereof.

     Mortgaged Property: The underlying property securing a Mortgage Loan, which
may include Cooperative Stock or residential long-term leases.

     Mortgagor: The obligor on a Mortgage Note.

     Net Mortgage Interest Rate: As to any Mortgage Loan and Distribution  Date,
such  Mortgage  Loan's  Mortgage  Interest  Rate thereon on the first day of the
calendar  month  preceding  the month of such  Distribution  Date reduced by the
applicable Servicing Fee Rate for such Mortgage Loan.

     NIMS Insurer: Any insurer that is guaranteeing certain payments under notes
secured by collateral which includes all or a portion of the Class CE or Class P
Certificates.

     Non-PO Percentage:  As to any Discount Mortgage Loan, a fraction (expressed
as a percentage), the numerator of which is the Net Mortgage Interest Rate as of
the Cut-off Date of such Discount  Mortgage Loan and the denominator of which is
6.250%.  As to any Group 1 Mortgage Loan that is not a Discount  Mortgage  Loan,
100%.

                                      -36-
<PAGE>
     Non-PO Principal  Amount:  As to any Distribution  Date, the sum of (i) the
sum of the  applicable  Non-PO  Percentage of (a) the principal  portion of each
Monthly  Payment due on each Group 1 Mortgage  Loan on the related Due Date (net
of unreimbursed  Advances and other amounts as to which the related  Servicer is
entitled to be reimbursed pursuant to the applicable Servicing  Agreement),  (b)
the Stated Principal Balance, as of the date of repurchase,  of (i) each Group 1
Mortgage  Loan that was  repurchased  by a Servicer  pursuant to the  applicable
Servicing  Agreement as of such  Distribution  Date,  (ii) each Group 1 Mortgage
Loan repurchased by the Sponsor pursuant to the Mortgage Loan Purchase Agreement
or a  Purchase  Obligation  as of such  Distribution  Date,  (iii)  each Group 1
Mortgage Loan repurchased by the Depositor pursuant to Section 2.04 or (iv) each
Group 1 Mortgage  Loan  purchased  by the Master  Servicer  pursuant  to Section
10.01, (c) any Substitution  Adjustment Amount (net of unreimbursed Advances and
other  amounts as to which the related  Servicer  is  entitled to be  reimbursed
pursuant to the applicable  Servicing  Agreement) in connection with a Defective
Mortgage Loan in Loan Group 1 received during the related Prepayment Period, (d)
any  Liquidation  Proceeds  other than amounts to which the related  Servicer is
entitled  to be  reimbursed  pursuant  to  the  applicable  Servicing  Agreement
allocable to recoveries of principal of Group 1 Mortgage  Loans that are not yet
Liquidated  Mortgage Loans received by a Servicer during the related  Prepayment
Period,  (e) with respect to each Group 1 Mortgage Loan that became a Liquidated
Mortgage Loan during the related  Prepayment  Period,  the amount of Liquidation
Proceeds  (excluding  Excess  Proceeds)  allocable  to  principal  received by a
Servicer  with respect to such Group 1 Mortgage  Loan during such period and (f)
with respect to each Group 1 Mortgage Loan, all Principal Prepayments other than
Payahead Amounts on the Group 1 Mortgage Loans received by a Servicer during the
related  Prepayment  Period;  and (ii) the Non-PO Recovery for such Distribution
Date.

     Non-PO Recovery:  As to any Distribution Date, the amount of all Recoveries
received with respect to Loan Group 1 during the related  Prepayment Period less
the PO Recovery for such Distribution Date.

     Non-Supported Interest Shortfalls: As to any Distribution Date, the amount,
if any, by which the aggregate of Prepayment Interest Shortfalls related to Loan
Group 1 exceeds the  aggregate  Compensating  Interest for Loan Group 1 for such
Distribution Date.

     Non-U.S. Person: A Person other than a U.S. Person.

     Nonrecoverable  Advance:  Any  portion  of an  Advance  previously  made or
proposed to be made in respect of a Mortgage Loan which has not been  previously
reimbursed and which, in the good faith judgment of the applicable Servicer will
not or, in the case of a proposed Advance,  would not be ultimately  recoverable
from the related Mortgagor,  related Liquidation Proceeds, Insurance Proceeds or
other recoveries in respect of the related Mortgage Loan.

     Notional Amount: With respect to the Class 1-A-3 Certificates and the Class
1-A-3 Interests and any date of determination,  the Class 1-A-3 Notional Amount.
With respect to the Class 30-IO  Certificates,  the Class 30-IO  Interests,  the
Class  1-LIO   Interest  and  the  Class   MRI-IO   Interest  and  any  date  of
determination,  the Class 30-IO  Notional  Amount.  With respect to the Class CE
Upper-Tier II Interest and any date of determination, a notional amount equal to
the then aggregate  Uncertificated Balances of the Uncertificated  Lower-Tier II
Interests other than the Class LRII-P Interest.

                                      -37-
<PAGE>
     NYCEMA: A New York  Consolidation,  Extension and  Modification  Agreement.

     Offered Certificates: The Senior, Class 1-B-1, Class 1-B-2, Class 1-B-3 and
Mezzanine Certificates.

     Offered  Overcollateralized  Certificates:  The Class T2-A-1, Class T2-A-2,
Class T2-A-3,  Class T2-A-4,  Class T2-A-5,  Class T2-A-6,  Class T2-A-7,  Class
T2-A-8,  Class T2-A-A,  Class T2-A-B,  Class T2-M-1, Class T2-M-2, Class T2-M-3,
Class  T2-M-4,  Class  T2-M-5,  Class  T2-M-6,  Class  T2-M-7  and Class  T2-M-8
Certificates.

     Officer's  Certificate:  A certificate signed by the Chairman of the Board,
Vice Chairman of the Board,  President or a Vice President and by the Treasurer,
the Secretary or one of the Assistant  Treasurers or Assistant  Secretaries,  or
any other duly authorized  officer of the Depositor or the Master  Servicer,  as
the case may be, and delivered to the Trustee or the  Securities  Administrator,
as required in this Agreement.

     One-Month LIBOR: As to any Distribution Date, the arithmetic mean of London
Interbank  offered rate  quotations  for  one-month  U.S.  Dollar  deposits,  as
determined by the Securities Administrator in accordance with Section 5.10.

     Opinion of Counsel:  A written opinion of counsel acceptable to the Trustee
if such opinion is delivered to the Trustee,  or  acceptable  to the  Securities
Administrator if such opinion is delivered to the Securities Administrator,  who
may be counsel for the Depositor or the Master Servicer, except that any opinion
of counsel  relating to the  qualification  of any REMIC created  hereunder as a
REMIC or compliance with the REMIC  Provisions must be an opinion of Independent
counsel.

     Original Fractional Interest: With respect to each of the following Classes
of Class 1-B Certificates,  the corresponding  percentage described below, as of
the Closing Date:

               Class 1-B-1                  1.36%
               Class 1-B-2                  0.80%
               Class 1-B-3                  0.50%
               Class 1-B-4                  0.30%
               Class 1-B-5                  0.15%
               Class 1-B-6                  0.00%

     Original Class 1-B Certificate Balance: $12,540,662.00.

     OTS: The Office of Thrift Supervision.

     Outstanding  Mortgage  Loan:  As to any Due Date, a Mortgage Loan which was
not the subject of a Principal  Prepayment in Full prior to such Due Date, which
did not become a Liquidated  Mortgage  Loan prior to such Due Date and which was
not purchased from the Trust prior to such Due Date pursuant to Sections 2.02 or
2.04.

     Overcollateralization  Amount: As of any Distribution  Date, the excess, if
any,  of (x) the  aggregate  Stated  Principal  Balance of the Group T2 Mortgage

                                      -38
<PAGE>
Loans as of the last day of the related Collection Period over (y) the aggregate
Class  Certificate  Balance of all  Classes of  Overcollateralized  Certificates
(after taking into account all  distributions of principal on such  Distribution
Date  and  the  increase  of  any  Class  Certificate  Balance  of  a  Class  of
Overcollateralized  Certificates as a result of Recoveries  related to the Group
T2 Mortgage Loans).

     Overcollateralization  Deficiency: As of any Distribution Date, the excess,
if any, of (x) the Targeted  Overcollateralization  Amount for such Distribution
Date  over (y) the  Overcollateralization  Amount  for such  Distribution  Date,
calculated  for this purpose  after  taking into  account the  reduction on such
Distribution  Date  of  the  Class  Certificate   Balances  of  all  Classes  of
Overcollateralized Certificates resulting from the distribution of the Principal
Distribution  Amount (but not the Extra Principal  Distribution  Amount) on such
Distribution  Date,  but prior to taking into account any Applied  Realized Loss
Amounts on such Distribution Date.

     Overcollateralization Release Amount: With respect to any Distribution Date
on or after the  Stepdown  Date on which a Trigger  Event is not in effect,  the
lesser of (x) the Principal Remittance Amount for such Distribution Date and (y)
the  excess,  if  any,  of  (i)  the   Overcollateralization   Amount  for  such
Distribution  Date,  assuming  that 100% of the Principal  Remittance  Amount is
applied as a principal  payment on the  Overcollateralized  Certificates on such
Distribution Date over (ii) the Targeted  Overcollateralization  Amount for such
Distribution  Date.  With  respect to any  Distribution  Date on which a Trigger
Event is in effect, the Overcollateralization Release Amount will be zero.

     Overcollateralized  Accrued Certificate Interest: For any Distribution Date
and each Class of Overcollateralized  Certificates, one month's interest accrued
during  the  related  Interest  Accrual  Period  at the  applicable  Certificate
Interest  Rate on the  applicable  Class  Certificate  Balance minus such Class'
Interest  Percentage of Relief Act  Reductions  related to any Group T2 Mortgage
Loan for such Distribution Date.

     Overcollateralized  Certificates:  The Class T2-A-1,  Class  T2-A-2,  Class
T2-A-3,  Class T2-A-4,  Class T2-A-5,  Class T2-A-6, Class T2-A-7, Class T2-A-8,
Class T2-A-A,  Class T2-A-B,  Class T2-M-1,  Class T2-M-2,  Class T2-M-3,  Class
T2-M-4,  Class T2-M-5,  Class T2-M-6,  Class T2-M-7, Class T2-M-8, Class T2-B-1,
Class T2-B-2, Class CE and Class P Certificates.

     Overcollateralized   Reserve  Fund:  The  Eligible   Account   created  and
maintained by the Securities  Administrator  pursuant to Section  3.09(j) in the
name of the Securities Administrator,  on behalf of the Trustee, for the benefit
of  the  Holders  of  the   Overcollateralized   Certificates   and   designated
"Overcollateralized   Reserve  Fund,  Wells  Fargo  Bank,  N.A.,  as  Securities
Administrator  for U.S.  Bank  National  Association,  as Trustee,  in trust for
registered holders of Banc of America Funding Corporation Mortgage  Pass-Through
Certificates,  Series  2006-7."  Amounts on  deposit  in the  Overcollateralized
Reserve Fund shall not be invested.  The  Overcollateralized  Reserve Fund shall
not be an asset of any REMIC formed under this Agreement.

                                      -39-
<PAGE>
     Overcollateralized   Senior  Principal   Distribution  Amount:  As  of  any
Distribution Date (i) before the Stepdown Date or as to which a Trigger Event is
in effect, the Principal  Distribution  Amount and (ii) on or after the Stepdown
Date and as long as a  Trigger  Event is not in  effect,  the  excess of (a) the
aggregate   Class   Certificate   Balance  of  the   Senior   Overcollateralized
Certificates  immediately prior to such Distribution Date over (b) the lesser of
(x) the product of (1) 86.80% and (2) the aggregate Stated Principal  Balance of
the Group T2 Mortgage Loans as of the last day of the related  Collection Period
and (y) the amount by which the aggregate Stated Principal  Balance of the Group
T2 Mortgage  Loans as of the last day of the related  Collection  Period exceeds
the product of (1) 0.35% and (2) the Cut-off Date Pool Principal Balance of Loan
Group T2.

     Overcollateralized  Yield  Maintenance  Agreement:  The  yield  maintenance
agreement between the Securities Administrator,  on behalf of the Trust, and the
Counterparty,   which  will  be  for  the  benefit  of  the   Overcollateralized
Certificates,  substantially  in the form  attached  hereto  as  Exhibit  U. The
Overcollateralized  Yield  Maintenance  Agreement  shall  not be an asset of any
REMIC formed under this Agreement.

     Overcollateralized   Yield   Maintenance   Agreement   Payment:   For   any
Distribution Date prior to and including the Distribution Date in December 2008,
the amount,  if any,  required to be paid by the  Counterparty to the Securities
Administrator under the Overcollateralized Yield Maintenance Agreement.

     Ownership  Interest:  As to any  Certificate,  any  ownership  or  security
interest in such Certificate,  including any interest in such Certificate as the
Holder thereof and any other interest therein, whether direct or indirect, legal
or beneficial, as owner or as pledgee.

     PAC Certificates:  The Class 1-A-7, Class 1-A-8, Class 1-A-9, Class 1-A-10,
Class 1-A-11 and Class 1-A-12 Certificates.

     PAC Principal Amount: As to any Distribution Date and the PAC Certificates,
the amount, if any, that would reduce the aggregate Class Certificate Balance of
the PAC Certificates to the applicable balance shown in the applicable table set
forth in Exhibit V with respect to such Distribution Date.

     Pass-Through  Rate: With respect to each Distribution Date and any Class of
interest-bearing  Certificates  (other than the Class CE Certificates),  the per
annum rate set forth or described in the Preliminary Statement.  With respect to
each  Distribution  Date and the  Uncertificated  Shifting  Interest  Lower-Tier
Regular  Interests,   the  Uncertificated  Shifting  Interest  Lower-Tier  REMIC
Pass-Through Rate. With respect to each Distribution Date and the Uncertificated
Shifting Interest  Middle-Tier  Regular Interests,  the Uncertificated  Shifting
Interest  Middle-Tier REMIC Pass-Through Rate. With respect to each Distribution
Date and the Uncertificated  Lower-Tier II Regular Interests, the Uncertificated
Lower-Tier II REMIC  Pass-Through  Rate. With respect to each  Distribution Date
and the Upper-Tier II Regular  Interests  (other than the Class CE Upper-Tier II
Regular Interest), the Uncertificated Upper-Tier II REMIC Pass-Through Rate.

                                      -40-
<PAGE>
     With  respect  to the  Class CE  Upper-Tier  II  Regular  Interest  and any
Distribution  Date,  a per annum rate equal to the  percentage  equivalent  of a
fraction,  the numerator of which is the sum of the amounts calculated  pursuant
to clauses (A) through (D) below,  and the denominator of which is the aggregate
of the Uncertificated Balances of Uncertificated  Lower-Tier II Regular Interest
LRII-AA,  the Lower-Tier II Corresponding  Marker Interests,  and Uncertificated
Lower-Tier  II  Regular  Interest  LRII-ZZ.  For  purposes  of  calculating  the
Pass-Through Rate for the Class CE Upper-Tier II Regular Interest, the numerator
is equal to the sum of the following components:

               (A) the Uncertificated  Lower-Tier II REMIC Pass-Through Rate for
          the Class LRII-AA Interest minus the Marker Rate, applied to an amount
          equal to the Uncertificated Balance of the Class LRII-AA Interest;

               (B) the Uncertificated  Lower-Tier II REMIC Pass-Through Rate for
          each Lower-Tier II Corresponding  Marker Interest,  in each case minus
          the  Marker  Rate,  applied  in each  case to an  amount  equal to the
          respective   Uncertificated   Balance  of  each  such   Lower-Tier  II
          Corresponding Marker Interest;

               (C) the Uncertificated  Lower-Tier II REMIC Pass-Through Rate for
          the Class LRII-ZZ Interest minus the Marker Rate, applied to an amount
          equal to the Uncertificated Balance of the Class LRII-ZZ Interest; and

               (D) 100% of the  Uncertificated  Accrued  Interest  on the  Class
          LRII-P Interest.

     With respect to the Class CE Certificates  and any  Distribution  Date, the
Class CE Certificates shall be entitled to 100% of the amounts  distributable to
the Class CE Upper-Tier II Regular Interest.

     Paying Agent: As defined in Section 9.13.

     Percentage  Interest:  As  to  any  Certificate  (other  than  a  Class  CE
Certificate),  the  percentage  obtained  by dividing  the  initial  Certificate
Balance or initial  notional  amount of such  Certificate  by the Initial  Class
Certificate  Balance or Initial Notional Amount, as applicable,  of the Class of
which such  Certificate is a part. With respect to a Class CE  Certificate,  the
portion of the Class evidenced thereby,  expressed as a percentage, as stated on
the  face of such  Certificate;  provided,  however,  that  the sum of all  such
percentages for each such Certificate totals 100%.

     Periodic  Advance:  With respect to each  Servicer,  shall have the meaning
given to term "Monthly Advance" in the applicable Servicing Agreement.

     Permitted Investments: One or more of the following:

          (i)  obligations  of or guaranteed as to principal and interest by the
     United States,  Freddie Mac, Fannie Mae or any agency or instrumentality of
     the United  States when such  obligations  are backed by the full faith and
     credit of the United States;  provided that such obligations of Freddie Mac

                                      -41-
<PAGE>
     or Fannie Mae shall be  limited to senior  debt  obligations  and  mortgage
     participation  certificates  other than investments in  mortgage-backed  or
     mortgage   participation   securities   with  yields   evidencing   extreme
     sensitivity to the rate of principal payments on the underlying  mortgages,
     which shall not constitute Permitted Investments hereunder;

          (ii)  repurchase  agreements  on  obligations  specified in clause (i)
     maturing not more than one month from the date of acquisition  thereof with
     a corporation incorporated under the laws of the United States or any state
     thereof rated not lower than "P-1" by Moody's,  "F1" by Fitch and "A-1+" by
     S&P;

          (iii) federal funds,  certificates of deposit,  demand deposits,  time
     deposits  and  bankers'  acceptances  (which  shall  each have an  original
     maturity of not more than 90 days and, in the case of bankers' acceptances,
     shall in no event  have an  original  maturity  of more  than 365 days or a
     remaining  maturity  of more than 30 days)  denominated  in  United  States
     dollars of any U.S.  depository  institution or trust company  incorporated
     under the laws of the United States or any state  thereof,  rated not lower
     than "P-1" by Moody's, "F1" by Fitch and "A-1+" by S&P;

          (iv) commercial paper (having original maturities of not more than 365
     days) of any corporation  incorporated  under the laws of the United States
     or any state thereof  which is rated not lower than "P-1" by Moody's,  "F1"
     by Fitch and "A-1+" by S&P;

          (v)  investments  in  money  market  funds  (including  funds  of  the
     Securities Administrator or its affiliates, or funds for which an affiliate
     of the Securities Administrator acts as advisor, as well as funds for which
     the Securities  Administrator and its affiliates may receive  compensation)
     rated "Aaa" by Moody's,  "AAA" by Fitch (if rated by Fitch) and "AAAm G" by
     S&P or otherwise approved in writing by each Rating Agency; and

          (vi) other  obligations  or  securities  that are  acceptable  to each
     Rating  Agency and, as evidenced  by an Opinion of Counsel  obtained by the
     Master Servicer or Securities  Administrator,  as the case may be, will not
     affect the  qualification  of any REMIC created  under this  Agreement as a
     REMIC;

provided, however, that no instrument shall be a Permitted Investment if it
represents either (a) the right to receive only interest payments with respect
to the underlying debt instrument or (b) the right to receive both principal and
interest payments derived from obligations underlying such instrument and the
principal and interest with respect to such instrument provide a yield to
maturity greater than 120% of the yield to maturity at par of such underlying
obligations.

     Permitted  Transferee:  Any Person other than (i) the United States, or any
State or any 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
which 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) (except
certain  farmers'  cooperatives  described  in Code  Section  521),  (iv)  rural
electric and telephone cooperatives described in Code Section 1381(a)(2)(C), (v)
a Person with respect to whom the income on a Residual  Certificate is allocable
to a foreign  permanent  establishment  or fixed base,  within the meaning of an
applicable income tax treaty, of such Person or any other U.S. Person,  and (vi)

                                      -42-
<PAGE>
any other Person so designated  by the Depositor  based on an Opinion of Counsel
to the effect that any  transfer to such Person may cause the Trust or any other
Holder of a  Residual  Certificate  to incur  tax  liability  that  would not be
imposed  other than on  account of such  transfer.  The terms  "United  States,"
"State" and  "international  organization"  shall have the meanings set forth in
Code Section 7701 or successor provisions.

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

     Physical  Certificates:  The Class 1-A-R,  Class 1-B-4,  Class 1-B-5, Class
1-B-6, Class CE and Class P Certificates.

     Plan: As defined in Section 6.02(e).

     PO  Deferred  Amount:  As to any  Distribution  Date  and the  Class  30-PO
Certificates,  the sum of the amounts by which the Class Certificate  Balance of
the Class 30-PO  Certificates  will be reduced on such  Distribution Date or has
been reduced on prior Distribution Dates as a result of Section 5.03(b) less the
sum of (a) the PO Recoveries  for prior  Distribution  Dates and (b) the amounts
distributed to the Class 30-PO Certificates  pursuant to Section 5.02(a)(iii) on
prior Distribution Dates.

     PO  Percentage:  As to any Discount  Mortgage  Loan,  100% minus the Non-PO
Percentage for such Mortgage Loan. As to any Group 1 Mortgage Loan that is not a
Discount Mortgage Loan, 0%.

     PO Principal  Amount:  As to any  Distribution  Date, the sum of (i) the PO
Percentage  of (a)  the  principal  portion  of  each  Monthly  Payment  (net of
unreimbursed  Advances  and other  amounts as to which the  related  Servicer is
entitled to be reimbursed pursuant to the applicable Servicing Agreement) due on
each Group 1 Mortgage  Loan on the  related Due Date;  (b) the Stated  Principal
Balance,  as of the date of  repurchase,  of (i) each Group 1 Mortgage Loan that
was repurchased by a Servicer pursuant to the applicable  Servicing Agreement as
of such  Distribution  Date, (ii) each Group 1 Mortgage Loan  repurchased by the
Sponsor  pursuant  to  the  Mortgage  Loan  Purchase  Agreement  or  a  Purchase
Obligation  as of such  Distribution  Date,  (iii) each  Group 1  Mortgage  Loan
repurchased  by the  Depositor  pursuant to Section  2.04,  or (iv) each Group 1
Mortgage Loan purchased by the Master  Servicer  pursuant to Section 10.01;  (c)
any  Substitution  Adjustment  Amount (net of  unreimbursed  Advances  and other
amounts as to which the related  Servicer is entitled to be reimbursed  pursuant
to the applicable Servicing Agreement) in connection with any Defective Mortgage
Loan in Loan Group 1 received with respect to such  Distribution  Date;  (d) any
Liquidation  Proceeds  allocable to  recoveries of principal of Group 1 Mortgage
Loans that are not yet Liquidated  Mortgage Loans received by a Servicer  during
the related  Prepayment  Period;  (e) with respect to each Group 1 Mortgage Loan
that became a Liquidated Mortgage Loan during the related Prepayment Period, the
amount  of  Liquidation   Proceeds  (excluding  Excess  Proceeds)  allocable  to
principal  received  by a Servicer  with  respect to such Group 1 Mortgage  Loan

                                      -43-
<PAGE>
during  such  period;  and (f) all  Principal  Prepayments  other than  Payahead
Amounts on the Group 1 Mortgage Loans received by a Servicer  during the related
Prepayment Period; and (ii) the PO Recovery for such Distribution Date.

     PO Recovery: As to any Distribution Date, the lesser of (a) the PO Deferred
Amount for the Class 30-PO  Certificates for such  Distribution  Date and (b) an
amount equal to the sum, as to each Group 1 Mortgage  Loan as to which there has
been a Recovery  received  during the calendar month preceding the month of such
Distribution  Date, of the product of (x) the PO Percentage with respect to such
Group 1 Mortgage  Loan and (y) the amount of the  Recovery  with respect to such
Group 1 Mortgage Loan received during the related Prepayment Period.

     Pool   Cap:   For  any   Distribution   Date  and  the   Overcollateralized
Certificates,  a per annum rate (subject to adjustment, in the case of the Class
T2-A-2  Certificates,  based on the actual number of days elapsed in the related
Interest  Accrual  Period)  equal to the  weighted  average of the Net  Mortgage
Interest  Rates for the Group T2  Mortgage  Loans,  weighted on the basis of the
Stated Principal  Balances of the Group T2 Mortgage Loans as of the first day of
the related Collection Period.

     Pool Distribution  Amount:  As to any Distribution  Date, the excess of (a)
the sum of (i) the aggregate of (A) the interest  portion of any Monthly Payment
on a Group 1 Mortgage Loan (net of the related Servicing Fees) and the principal
portion of any Monthly Payment on a Group 1 Mortgage Loan due on the Due Date in
the month in which such  Distribution Date occurs and which is received prior to
the related  Determination Date and (B) all Periodic Advances made by a Servicer
(or the Master Servicer or the Trustee,  as applicable) in respect of Loan Group
1 and payments of  Compensating  Interest  allocable to Loan Group 1 made by the
applicable  Servicer  in  respect  of Loan  Group 1 and such  Distribution  Date
deposited  to  the  Master  Servicer   Custodial  Account  pursuant  to  Section
3.09(d)(vi); (ii) all Liquidation Proceeds (other than Excess Proceeds) received
on the Group 1 Mortgage Loans during the related Prepayment Period and deposited
to the Master Servicer Custodial Account pursuant to Section 3.09(d)(iii); (iii)
all  Principal  Prepayments  received on the Group 1 Mortgage  Loans  during the
related  Prepayment Period and including any Prepayment  Charges (other than any
Prepayment  Charges  collected  by Wells  Fargo)  received  with respect to such
Principal  Prepayments  and deposited to the Master Servicer  Custodial  Account
pursuant to Section  3.09(d)(i) during such period;  (iv) in connection with any
Group 1 Mortgage Loans that are Defective  Mortgage Loans,  the aggregate of the
Purchase  Prices and  Substitution  Adjustment  Amounts  remitted on the related
Remittance Date pursuant to Section  3.09(d)(vii);  (v) any other amounts in the
Master  Servicer   Custodial  Account  deposited  therein  pursuant  to  Section
3.09(d)(iv), (v), (viii), (x), and (xi) in respect of such Distribution Date and
such Loan Group; (vi) any Reimbursement  Amount required to be included pursuant
to Section 5.02; and (vii) any Non-PO Recovery with respect to such Distribution
Date over (b) any amounts  permitted  to be withdrawn  from the Master  Servicer
Custodial Account pursuant to clauses (i) through (viii),  inclusive, of Section
3.11 in respect of Loan Group 1.

     Pool Principal Balance: As to any Distribution Date and any Loan Group, the
aggregate Stated Principal Balance of all Mortgage Loans in such Loan Group that
were Outstanding Mortgage Loans immediately  following the Due Date in the month
preceding the month in which such Distribution Date occurs.

                                      -44-
<PAGE>

     Pool Principal Balance (Non-PO Portion):  As to any Distribution  Date, the
sum of the product,  for each Group 1 Mortgage,  of (a) the Non-PO Percentage of
such Group 1 Mortgage  Loan  multiplied by (b) the Stated  Principal  Balance of
such Group 1 Mortgage Loan that was an  Outstanding  Mortgage  Loan  immediately
following  the  Due  Date  in the  month  preceding  the  month  in  which  such
Distribution Date occurs.

     Premium  Mortgage  Loan:  Any Group 1  Mortgage  Loan  with a Net  Mortgage
Interest Rate as of the Cut-off Date that is greater than or equal to 6.250%.

     Prepayment  Charges:  With respect to any Prepayment Period, any prepayment
premium,  penalty  or  charge  collected  by a  Servicer  from  a  Mortgagor  in
connection with any voluntary Principal Prepayment in Full pursuant to the terms
of the  related  Mortgage  Note as from time to time held as a part of the Trust
Estate,  the Prepayment Charges so held being identified in the related Mortgage
Loan Schedule.

     Prepayment  Interest  Shortfall:  As to  any  Distribution  Date  and  each
Mortgage  Loan  subject to a Principal  Prepayment  received  during the related
Prepayment  Period,  the amount,  if any,  by which one month's  interest at the
related Net Mortgage  Interest  Rate on such  Principal  Prepayment  exceeds the
amount of interest paid in connection with such Principal Prepayment.

     Prepayment  Period:  With respect to any  Distribution  Date,  the calendar
month preceding the calendar month in which such Distribution Date occurs.

     Primary Mortgage Insurance Policy: Each policy of primary mortgage guaranty
insurance or any replacement  policy therefor with respect to any Mortgage Loan,
in each case issued by an insurer acceptable to Fannie Mae or Freddie Mac.

     Principal  Distribution Amount: As to any Distribution Date, the sum of (i)
the Principal Remittance Amount minus the Overcollateralization  Release Amount,
if any, and (ii) the Extra Principal Distribution Amount, if any.

     Principal  Only  Certificates:   Any  Class  of  Certificates  entitled  to
distributions of principal, but to no distributions of interest. The Class 30-PO
Certificates are the only Principal Only Certificates.

     Principal  Prepayment:  With respect to each Mortgage  Loan, any payment or
other recovery of principal on a Mortgage Loan (other than Liquidation Proceeds)
which is received in advance of its scheduled Due Date and is not accompanied by
an amount of interest  representing  scheduled interest due on any date or dates
in any month or months subsequent to the month of prepayment.

     Principal  Prepayment  in Full:  Any  Principal  Prepayment  of the  entire
principal balance of a Mortgage Loan.

     Principal  Remittance Amount: With respect to any Distribution Date and the
Group T2 Mortgage Loans, to the extent of funds available  therefor,  the amount
equal to the sum (less amounts  available for reimbursement to the Servicers for
Advances and expenses pursuant to the applicable Servicing Agreement and amounts

                                      -45-
<PAGE>
reimbursable or payable to the Master  Servicer,  Securities  Administrator  and
Trustee pursuant to this Agreement) of: (i) each payment of principal on a Group
T2 Mortgage  Loan due during the related  Collection  Period and received by the
Servicers on or prior to the related  Determination  Date, and any Advances with
respect  thereto,  (ii) all  Principal  Prepayments  received by the  applicable
Servicer  during  the  related  Prepayment  Period,  (iii)  Insurance  Proceeds,
Liquidation Proceeds and Recoveries allocable to principal actually collected by
the applicable  Servicer during the related Prepayment Period, (iv) with respect
to Defective  Mortgage Loans repurchased  during the related  Prepayment Period,
the portion of the Repurchase Price allocable to principal, (v) any Substitution
Adjustment  Amounts  paid during the related  Prepayment  Period and (vi) on the
Distribution  Date on which the Group T2 Mortgage Loans and related REO Property
are  purchased in  accordance  with Section  10.01  hereof,  that portion of the
purchase price therefor in respect of principal.

     Priority Amount:  For any Distribution Date the lesser of (i) the aggregate
Class Certificate  Balance of the Class T2-A-7,  Class T2-A-8,  Class T2-A-A and
Class T2-A-B Certificates for such Distribution Date and (ii) the product of (a)
the Shift Percentage, (b) the Priority Percentage and (c) the Overcollateralized
Senior Principal Distribution Amount.

     Priority  Percentage:  For any  Distribution  Date (i) the aggregate  Class
Certificate  Balance of the Class T2-A-7,  Class T2-A-8,  Class T2-A-A and Class
T2-A-B  Certificates  for such  Distribution  Date divided by (ii) the aggregate
Class Certificate Balance of the Senior Overcollateralized Certificates.

     Private  Certificates:  The Class 1-B-4,  Class 1-B-5,  Class 1-B-6,  Class
T2-B-1, Class T2-B-2, Class CE and Class P Certificates.

     Pro Rata  Share:  As to any  Distribution  Date and any  Class of Class 1-B
Certificates,  the  portion of the  Subordinate  Principal  Distribution  Amount
allocable  to such  Class,  equal to the sum of (i) the  product of the  amounts
determined  in  accordance  with  clause  (i)  of  the   Subordinate   Principal
Distribution Amount and a fraction,  the numerator of which is the related Class
Certificate  Balance thereof and the denominator of which is the aggregate Class
Certificate  Balance of the Class 1-B Certificates and (ii) if such class is not
a Restricted  Class,  the product of the amounts  determined in accordance  with
clause  (ii)  of  the  Subordinate   Principal   Distribution  Amount  for  such
Distribution  Date and a fraction,  the  numerator of which is the related Class
Certificate  Balance thereof and the denominator of which is the aggregate Class
Certificate  Balance  of the  Class  1-B  Certificates  that are not  Restricted
Classes.  The Pro Rata Share of a  Restricted  Class shall be 0% with respect to
clause (ii) hereof.

     Purchase  Obligation:  An  obligation  of the Sponsor or the  Depositor  to
purchase  Mortgage Loans under the  circumstances  and in the manner provided in
Section 2.02 or 2.04.

     Purchase  Price:  With respect to each  Mortgage  Loan that was a Defective
Mortgage  Loan  repurchased  on any date  pursuant to Sections  2.02 or 2.04, an
amount  equal to the sum of (i) the Stated  Principal  Balance  of the  Mortgage
Loan, (ii) interest on such Stated  Principal  Balance at the Mortgage  Interest
Rate from the date on which interest has last been paid and distributed  through
the last day of the month in which  such  repurchase  takes  place and (iii) any
costs and damages incurred by the Trust in connection with any violation by such

                                      -46-
<PAGE>
repurchased  Mortgage  Loan of any  predatory or abusive  lending law,  less (x)
amounts received or advanced in respect of such repurchased  Mortgage Loan which
are being held in the applicable  Servicer Custodial Account for distribution in
the month of repurchase and (y) if the Person repurchasing such Mortgage Loan is
servicing  such  Mortgage  Loan  under  the  related  Servicing  Agreement,  the
Servicing Fee for such Mortgage Loan.

     Rating Agency:  Each of S&P, Moody's and Fitch. If any such organization or
a successor is no longer in existence,  "Rating Agency" shall be such nationally
recognized  statistical rating  organization,  or other comparable Person, as is
designated by the Depositor,  notice of which  designation shall be given to the
Trustee, the Master Servicer and the Securities Administrator. References herein
to a given rating or 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 as
of the date of such  liquidation,  equal to (i) the unpaid principal  balance of
the  Liquidated  Mortgage  Loan as of the date of such  liquidation,  plus  (ii)
interest  at the Net  Mortgage  Interest  Rate  from  the Due  Date as to  which
interest was last paid or advanced (and not reimbursed) to Certificateholders 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
from time to time, minus (iii) the Liquidation Proceeds, if any, received during
the  month  in  which  such  liquidation  occurred,  to the  extent  applied  as
recoveries of interest at the Net Mortgage Interest Rate and to principal of the
Liquidated Mortgage Loan. With respect to each Mortgage Loan that has become the
subject of a Deficient Valuation,  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 principal portion of the related Monthly Payment has been reduced.

     Realized   Loss   Amortization   Amount:   As  to  each   Class  of  Senior
Overcollateralized   Certificates,   Mezzanine   Certificates   and  Class  T2-B
Certificates  and any  Distribution  Date, the lesser of (x) the Unpaid Realized
Loss Amount for such Class and (y) the remaining  Monthly Excess Cashflow Amount
available after distribution in respect of any Interest  Carryforward Amount for
such Class pursuant to Section 5.03(c).

     Recognition Agreement:  With respect to a Cooperative Loan, the recognition
agreement between the Cooperative and the originator of such Cooperative Loan.

     Record Date: With respect to the Shifting Interest Certificates,  the Class
CE Certificates and the Class P Certificates, the last Business Day of the month
immediately  preceding the month in which the related  Distribution Date occurs.
With  respect  to the  Offered  Overcollateralized  Certificates  and Class T2-B
Certificates,  the Business Day immediately  preceding each  Distribution  Date;
provided,  however,  if  Definitive  Certificates  are  issued  for  any of such
Certificates,  the Record Date for such  Certificates  will be the last Business
Day of the month preceding such Distribution Date.

                                      -47-
<PAGE>
     Recovery:  Any  amount  received  on a  Mortgage  Loan  subsequent  to such
Mortgage Loan being determined to be a Liquidated Mortgage Loan.

     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.

     Reimbursement Amount: As defined in Section 2.02.

     Relevant  Servicing  Criteria:  The  Servicing  Criteria  applicable to the
various parties,  as set forth on Exhibit N attached hereto.  For  clarification
purposes,  multiple  parties  can  have  responsibility  for the  same  Relevant
Servicing Criteria.  With respect to a Servicing Function Participant engaged by
the  Master  Servicer,  the  Securities  Administrator,  the  Custodian  or  any
Servicer,  the term "Relevant  Servicing Criteria" may refer to a portion of the
Relevant Servicing Criteria applicable to such parties.

     Relief Act: The Servicemembers  Civil Relief Act, as it may be amended from
time to time.

     Relief Act  Reduction:  With  respect  to any  Distribution  Date,  for any
Mortgage  Loan as to which there has been a reduction  in the amount of interest
collectible  thereon  for the  related  Collection  Period  as a  result  of the
application of the Relief Act or comparable state  legislation,  the amount,  if
any, by which (i) interest collectible on such Mortgage Loan for such Collection
Period is less than (ii) interest  accrued pursuant to the terms of the Mortgage
Note on the same  principal  amount  and for the  same  period  as the  interest
collectible on such Mortgage Loan for the related Collection Period.

     REMIC: A "real estate  mortgage  investment  conduit" within the meaning of
Section 860D of the Code.

     REMIC   Certificate   Maturity   Date:   As  set  forth  in  Section  2.07.

     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 promulgated thereunder,  as the foregoing may be in effect from time
to time, as well as provisions of applicable state laws.

     Remittance Date: The 18th day of each month beginning in November 2006 (or,
if such day is not a Business Day, the preceding Business Day).

     REO Disposition Period: As defined in Section 3.15.

     REO Proceeds:  Proceeds, net of any related expenses of a Servicer received
in respect of any REO Property (including, without limitation, proceeds from the

                                      -48-
<PAGE>
rental of the related Mortgaged Property), which are received prior to the final
liquidation of such Mortgaged Property.

     REO Property:  A Mortgaged  Property  acquired by a Servicer  servicing the
related Mortgage Loan on behalf of the Trust through foreclosure or deed-in-lieu
of foreclosure in connection with a defaulted Mortgage Loan.

     Reportable Event: As defined in Section 3.22(d).

     Reporting Servicer: As defined in Section 3.22(c)(i).

     Request for Release: The Request for Release submitted by a Servicer to the
Custodian on behalf of the Trustee, substantially in the form attached hereto as
Exhibit E.

     Required Insurance Policy: With respect to any Mortgage Loan, any insurance
policy which is required to be maintained from time to time under this Agreement
in respect of such Mortgage Loan.

     Reserve   Funds:   Any  of   the   Class   1-A-4   Reserve   Fund   or  the
Overcollateralized Reserve Fund.

     Reserve  Interest  Rate: As defined in Section 5.10.

     Residual Certificate: The Class 1-A-R Certificate.

     Responsible  Officer:  When  used  with  respect  to  the  Trustee  or  the
Securities  Administrator,  any officer of the Corporate Trust Department of the
Trustee or the Securities  Administrator,  as  applicable,  including any Senior
Vice President,  any Vice President, any Assistant Vice President, any Assistant
Secretary, any Trust Officer or Assistant Trust Officer, or any other officer of
the Trustee or Securities Administrator,  as applicable,  customarily performing
functions similar to those performed by any of the above designated officers and
having direct responsibility for the administration of this Agreement.

     Restricted Classes: As defined in Section 5.02(d).

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

     Sarbanes-Oxley Certification: As defined in Section 3.22(e).

     Securities    Administrator:    Wells   Fargo   Bank,    N.A.,    and   its
successors-in-interest and, if a successor securities administrator is appointed
hereunder, such successor, as securities administrator.

     Security  Agreement:  With respect to a Cooperative  Loan, the agreement or
mortgage  creating  a  security  interest  in  favor  of the  originator  of the
Cooperative Loan in the related Cooperative Stock.

                                      -49-
<PAGE>
     Senior Applied Realized Loss Amount: With respect to each Distribution Date
after the aggregate Class Certificate Balance of the Mezzanine  Certificates and
the Class  T2-B  Certificates  has been  reduced to zero and any Class of Senior
Overcollateralized  Certificates,  the product of (i) the excess, if any, of the
aggregate of (a) the Class Certificate Balances of the Senior Overcollateralized
Certificates  (after  taking into  account  the  distribution  of the  Principal
Distribution  Amount on such  Distribution  Date and any  increase  in any Class
Certificate  Balance as a result of  Recoveries)  over (b) the aggregate  Stated
Principal  Balance of the Group T2 Mortgage  Loans as of last day of the related
Collection  Period  and (ii) a  fraction,  the  numerator  of which is the Class
Certificate Balance of such Class of Senior Overcollateralized  Certificates and
the  denominator  of which is the  aggregate  Class  Certificate  Balance of the
Senior Overcollateralized Certificates.

     Senior  Certificates:  The Class  1-A-R,  Class 1-A-1,  Class 1-A-2,  Class
1-A-3,  Class 1-A-4,  Class 1-A-5,  Class 1-A-6, Class 1-A-7, Class 1-A-8, Class
1-A-9, Class 1-A-10, Class 1-A-11, Class 1-A-12, Class 30-IO, Class 30-PO, Class
T2-A-1,  Class T2-A-2,  Class T2-A-3,  Class T2-A-4, Class T2-A-5, Class T2-A-6,
Class T2-A-7, Class T2-A-8, Class T2-A-A and Class T2-A-B Certificates.

     Senior Credit Support Depletion Date: The date on which the aggregate Class
Certificate Balance of the Class 1-B Certificates has been reduced to zero.

     Senior  Enhancement  Percentage:  For any Distribution Date, the percentage
obtained by dividing (x) the sum of (i) the aggregate Class Certificate  Balance
of the Mezzanine  Certificates  and Class T2-B  Certificates  before taking into
account    distributions    on   such    Distribution    Date   and   (ii)   the
Overcollateralization  Amount  as of the  prior  Distribution  Date  by (y)  the
aggregate Stated Principal Balance of the Group T2 Mortgage Loans as of the last
day of the related Collection Period.

     Senior Non-PO Shifting Interest Certificates:  The Senior Shifting Interest
Certificates other than the Class 30-PO Certificates.

     Senior  Overcollateralized  Certificates:  The Class T2-A-1,  Class T2-A-2,
Class T2-A-3,  Class T2-A-4,  Class T2-A-5,  Class T2-A-6,  Class T2-A-7,  Class
T2-A-8, Class T2-A-A and Class T2-A-B Certificates.

     Senior  Percentage:  With respect to any Distribution Date, the percentage,
carried to six places rounded up,  obtained by dividing (i) the aggregate  Class
Certificate  Balance  of  the  Senior  Non-PO  Shifting  Interest   Certificates
immediately  prior to such  Distribution Date by (ii) the Pool Principal Balance
(Non-PO Portion) for such Distribution Date.

     Senior Prepayment Percentage: For any Distribution Date during the five (5)
years  beginning on the first  Distribution  Date,  100%. The Senior  Prepayment
Percentage for any Distribution Date occurring on or after the fifth anniversary
of the first  Distribution  Date will, except as provided herein, be as follows:
for any  Distribution  Date in the  first  (1st)  year  thereafter,  the  Senior
Percentage plus 70% of the Subordinate  Percentage for such  Distribution  Date;

                                      -50-
<PAGE>
for any  Distribution  Date in the  second  (2nd)  year  thereafter,  the Senior
Percentage plus 60% of the Subordinate  Percentage for such  Distribution  Date;
for any  Distribution  Date in the  third  (3rd)  year  thereafter,  the  Senior
Percentage plus 40% of the Subordinate  Percentage for such  Distribution  Date;
for any  Distribution  Date in the  fourth  (4th)  year  thereafter,  the Senior
Percentage plus 20% of the Subordinate  Percentage for such  Distribution  Date;
and for any Distribution Date in the fifth (5th) or later years thereafter,  the
Senior  Percentage  for such  Distribution  Date (unless on any of the foregoing
Distribution   Dates,  the  Senior  Percentage  exceeds  the  Senior  Percentage
calculated  as of  the  Closing  Date,  in  which  case  the  Senior  Prepayment
Percentage   for  such   Distribution   Date  will  once  again   equal   100%).
Notwithstanding the foregoing,  no decrease in the Senior Prepayment  Percentage
will occur unless both of the Senior Step Down Conditions are satisfied.

     Senior Shifting Interest Certificates:  The Class 1-A-R, Class 1-A-1, Class
1-A-2,  Class 1-A-3,  Class 1-A-4,  Class 1-A-5, Class 1-A-6, Class 1-A-7, Class
1-A-8, Class 1-A-9, Class 1-A-10,  Class 1-A-11,  Class 1-A-12,  Class 30-IO and
Class 30-PO Certificates.

     Senior   Specified   Enhancement   Percentage:   For  any   date,   13.20%.

     Senior Step Down Conditions:  As of any  Distribution  Date and as to which
any decrease in the Senior Prepayment  Percentage  applies,  (i) the outstanding
principal  balance of all Group 1 Mortgage Loans  (including,  for this purpose,
any Group 1 Mortgage Loans in foreclosure, any REO Property and any such Group 1
Mortgage Loan for which the Mortgagor has filed for bankruptcy after the Closing
Date) delinquent 60 days or more (averaged over the preceding six month period),
as a percentage  of the  aggregate  Class  Certificate  Balance of the Class 1-B
Certificates,  is not equal to or greater than 50% or (ii)  cumulative  Realized
Losses  with  respect  to the  Group  1  Mortgage  Loans  as of  the  applicable
Distribution  Date do not exceed the  percentages of the related  Original Class
1-B Certificate Balance set forth below:

                                                         Percentage of
                                                        Original Class 1-B
Distribution Date Occurring                            Certificate Balance
-----------------------------------------         ----------------------------
-----------------------------------------         ----------------------------
November 2011 through October 2012                            30%
November 2009 through October 2013                            35%
November 2014 through October 2014                            40%
November 2015 through October 2015                            45%
November 2015 and thereafter                                  50%

     Servicer:  Any of BANA, SunTrust and Wells Fargo, each in their capacity as
a servicer of the Mortgage Loans, or any successor  servicer appointed as herein
provided.

     Servicer Custodial  Accounts:  The separate accounts created and maintained
by each of the Servicers pursuant to the applicable Servicing Agreement.

     Servicing  Advance:  With respect to each Servicer,  shall have the meaning
given to the term "Servicing Advances" in the applicable Servicing Agreement.

     Servicing  Agreements:  Any of the BANA Servicing  Agreement,  the SunTrust
Servicing   Agreement  and  the  Wells  Fargo  Servicing Agreement.

                                      -51-
<PAGE>
     Servicing Criteria: The criteria set forth in paragraph (d) of Item 1122 of
Regulation AB, as such may be amended from time ------------------- to time

     Servicing Fee: With respect to each Servicer,  as defined in the applicable
Servicing Agreement.

     Servicing Fee Rate: With respect to each Mortgage Loan, as set forth on the
applicable Mortgage Loan Schedule.

     Servicing  File:  With  respect to each  Mortgage  Loan,  as defined in the
applicable Servicing Agreement.

     Servicing Function  Participant:  Any Subcontractor  utilized by the Master
Servicer,  the Securities  Administrator or the Custodian that is "participating
in the servicing function" within the meaning of Item 1122 of Regulation AB.

     Servicing Officer: With respect to each Servicer, as defined in the related
Servicing Agreement.

     Servicing  Transfer Costs:  All reasonable costs and expenses of the Master
Servicer  or  the  Trustee,  as  applicable,  related  to any  termination  of a
Servicer,  appointment of a successor Servicer or the transfer and assumption of
servicing by the Master Servicer or the Trustee, as applicable,  with respect to
any Servicing Agreement (including,  without limitation, (i) all legal costs and
expenses and all due diligence costs and expenses  associated with an evaluation
of the potential  termination of the Servicer as a result of an event of default
by such  Servicer  and (ii) any costs or expenses  associated  with the complete
transfer of all servicing data and the completion, correction or manipulation of
such servicing data as may be required by the Master Servicer or the Trustee, as
applicable,  to correct any errors or  insufficiencies  in the servicing data or
otherwise  to enable the Master  Servicer  or the  Trustee,  as  applicable,  to
service the Mortgage Loans properly and effectively).

     Shift  Percentage:  For  any  Distribution  Date  will  be  the  percentage
indicated below:

     Distribution Date Occurring In                                  Percentage
     ------------------------------                                  ----------
     November 2006 through October 2009                                0%
     November 2009 through October 2011                                45%
     November 2011 through October 2012                                80%
     November 2012 through October 2013                                100%
     November 2013 and thereafter                                      300%

     Shifting Interest Accrued Certificate  Interest:  For any Distribution Date
and each Class of interest-bearing  Shifting Interest Certificates,  one month's
interest  accrued during the related  Interest  Accrual Period at the applicable
Pass-Through  Rate on the  applicable  Class  Certificate  Balance  or  Notional
Amount.

     Shifting Interest Certificates:  The Class 1-A-R, Class 1-A-1, Class 1-A-2,
Class 1-A-3,  Class 1-A-4,  Class 1-A-5,  Class 1-A-6, Class 1-A-7, Class 1-A-8,

                                      -52-
<PAGE>

Class 1-A-9, Class 1-A-10, Class 1-A-11, Class 1-A-12, Class 30-IO, Class 30-PO,
Class 1-B-1,  Class 1-B-2, Class 1-B-3, Class 1-B-4, Class 1-B-5 and Class 1-B-6
Certificates.

     Shifting Interest Lower-Tier  Certificate  Sub-Account:  The sub-account of
the Certificate Account designated by the Securities  Administrator  pursuant to
Section 3.09(h).

     Shifting  Interest  Lower-Tier  Distribution  Amount: As defined in Section
5.02(a) hereof.

     Shifting   Interest   Lower-Tier  REMIC:  As  defined  in  the  Preliminary
Statement,  the  assets of which  consist of the Group 1  Mortgage  Loans,  such
amounts as shall be deemed held in the Shifting Interest Lower-Tier  Certificate
Sub-Account, the insurance policies, if any, relating to a Group 1 Mortgage Loan
and property  which  secured a Group 1 Mortgage Loan and which has been acquired
by foreclosure or deed in lieu of foreclosure.

     Shifting Interest Middle-Tier Certificate  Sub-Account:  The sub-account of
the Certificate Account designated by the Securities  Administrator  pursuant to
Section 3.09(h).

     Shifting Interest  Middle-Tier  Distribution  Amount: As defined in Section
5.02(a) hereof.

     Shifting  Interest   Middle-Tier  REMIC:  As  defined  in  the  Preliminary
Statement,  the assets of which consist of the Uncertificated  Shifting Interest
Lower-Tier  Regular  Interests  and such  amounts as shall be deemed held in the
Shifting Interest Middle-Tier Certificate Sub-Account.

     Shifting  Interest  Senior  Principal   Distribution   Amount:  As  to  any
Distribution Date, the sum of (a) the Senior Percentage of the Non-PO Percentage
of the amounts  described in clauses  (i)(a)  through (d) of the  definition  of
"Non-PO  Principal  Amount"  for  such  Distribution  Date  and (b)  the  Senior
Prepayment  Percentage of (1) the Non-PO  Percentage of the amounts described in
clauses  (i)(e)  and (f) and (2) the  amount  described  in  clause  (ii) of the
definition of "Non-PO Principal Amount" for such Distribution Date.

     Shifting Interest Upper-Tier  Certificate  Sub-Account:  The sub-account of
the Certificate Account designated by the Securities  Administrator  pursuant to
Section 3.09(h).

     Shifting Interest Upper-Tier Interests:  The REMIC regular interests in the
Shifting  Interest   Upper-Tier  REMIC  as  set  forth  and  designated  in  the
Preliminary Statement.

     Shifting   Interest   Upper-Tier  REMIC:  As  defined  in  the  Preliminary
Statement,  the assets of which consist of the Uncertificated  Shifting Interest
Middle-Tier  Interests  and such amounts as shall be deemed held in the Shifting
Interest Upper-Tier Certificate Sub-Account.

     Similar Law: As defined in Section 6.02(e).

     Sponsor:  Bank  of  America,  National  Association,   a  national  banking
association, or its successor in interest, as seller of the Mortgage Loans under
the Mortgage Loan Purchase Agreement.

     Stated Principal Balance:  As to any Mortgage Loan and Due Date, the unpaid
principal  balance of such  Mortgage  Loan as of such date as  specified  in the

                                      -53-
<PAGE>
amortization  schedule at the time relating  thereto  (before any  adjustment to
such  amortization  schedule by reason of any  moratorium  or similar  waiver or
grace period) after giving effect to any previous partial Principal  Prepayments
and Liquidation  Proceeds allocable to principal (other than with respect to any
Liquidated  Mortgage  Loan) and to the payment of principal due on such Due Date
and  irrespective  of any delinquency in payment by the related  Mortgagor,  and
after giving effect to any Deficient Valuation.

     Stepdown Date: The earlier to occur of (i) the  Distribution  Date on which
the  aggregate  Class  Certificate  Balance  of  the  Senior  Overcollateralized
Certificates  is  reduced  to zero  and  (ii)  the  later  to  occur  of (x) the
Distribution  Date in November 2009 and (y) the  Distribution  Date on which the
Senior  Enhancement  Percentage is greater than or equal to the Senior Specified
Enhancement Percentage.

     Subcontractor:  Any  vendor,  subcontractor  or  other  Person  that is not
responsible for the overall servicing of Mortgage Loans but performs one or more
discrete  functions  identified in Item 1122(d) of Regulation AB with respect to
Mortgage  Loans under the  direction or authority  of the Master  Servicer,  the
Securities Administrator or the Custodian.

     Subordinate Percentage:  As of any Distribution Date, 100% minus the Senior
Percentage for such Distribution Date.

     Subordinate Prepayment Percentage:  As to any Distribution Date, 100% minus
the Senior Prepayment Percentage for such Distribution Date.

     Subordinate Principal Distribution Amount: With respect to any Distribution
Date, an amount equal to the sum of (a) the Subordinate Percentage of the Non-PO
Percentage  of the  amounts  described  in  clauses  (i)(a)  through  (d) of the
definition of "Non-PO  Principal  Amount" for such Distribution Date and (b) the
Subordinate  Prepayment  Percentage  of the  Non-PO  Percentage  of the  amounts
described in clauses (i)(e) and (f) and (2) the amount  described in clause (ii)
of the definition of "Non-PO Principal Amount" for such Distribution Date.

     Subordinated   Applied   Realized   Loss  Amount:   With  respect  to  each
Distribution  Date,  the  excess,  if any,  of (a) the  aggregate  of the  Class
Certificate Balances of the  Overcollateralized  Certificates (after taking into
account  the  distribution  of  the  Principal   Distribution   Amount  on  such
Distribution Date and any increase in the Class  Certificate  Balance of a Class
of  Overcollateralized  Certificates  as a result  of  Recoveries)  over (b) the
aggregate Stated Principal Balance of the Group T2 Mortgage Loans as of the last
day of the related Collection Period.

     Substitute  Mortgage  Loan:  A Mortgage  Loan  substituted  for a Defective
Mortgage  Loan which must,  on the date of such  substitution  (i) have a Stated
Principal  Balance,  after  deduction  of the  principal  portion of the Monthly
Payment due in the month of substitution,  not in excess of the Stated Principal
Balance of the Defective  Mortgage Loan; (ii) have a Net Mortgage  Interest Rate
not less than, and not more than 2% greater than that of the Defective  Mortgage
Loan;  (iii) be of the same type as the  Defective  Mortgage  Loan;  (iv) have a
Loan-to-Value  Ratio not higher than that of the Defective  Mortgage  Loan;  (v)
have a credit score not less than that of the Defective Mortgage Loan; (vi) have
a credit grade not lower in quality than that of the  Defective  Mortgage  Loan;

                                      -54-
<PAGE>

(vii) have a remaining  term to maturity not greater than (and not more than one
(1) year less than) that of the Defective  Mortgage  Loan;  (viii) have the same
lien priority as the Defective Mortgage Loan; and (ix) comply with each Mortgage
Loan  representation  and  warranty  set  forth in the  Mortgage  Loan  Purchase
Agreement, the Servicing Agreements and this Agreement. More than one Substitute
Mortgage  Loan  may  be  substituted  for a  Defective  Mortgage  Loan  if  such
Substitute Mortgage Loans meet the foregoing attributes in the aggregate.

     Substitution Adjustment Amount: As defined in Section 2.02.

     SunTrust:  SunTrust  Mortgage,  Inc., in its capacity as servicer under the
SunTrust Servicing Agreement.

     SunTrust Servicing Agreement: Collectively, (i) the Flow Sale and Servicing
Agreement,  dated as of February 1, 2004,  by and between BANA (as  successor in
interest to BAMCC),  as purchaser,  and SunTrust,  as seller,  (ii) that certain
Amendment  No. 1, dated as of June 1, 2004,  by and between  BANA and  SunTrust,
(iii) that certain  Master  Assignment,  Assumption and  Recognition  Agreement,
dated September 1, 2004, by and among BAMCC,  SunTrust,  BANA and Wachovia Bank,
National Association, (iv) that certain Amendment No. 2, dated as of November 1,
2004,  by and  between  BANA  and  SunTrust,  (v)  that  certain  Regulation  AB
Compliance  Addendum  to the Flow  Sale  and  Servicing  Agreement,  dated as of
January 1, 2006, by and between BANA and SunTrust,  (vi) that certain Memorandum
of Sale,  dated as of August 25,  2006,  by and between BANA and  SunTrust,  and
(vii) the Assignment  Assumption and  Recognition  Agreement,  dated October 30,
2006, by and among BANA, the  Depositor,  the Trustee,  the Master  Servicer and
SunTrust.

     TAC   Certificates:   The  Class  1-A-4  and  Class   1-A-5   Certificates.

     TAC Principal Amount: As to any Distribution Date and the TAC Certificates,
the amou nt, if any, that would reduce the aggregate Class  Certificate  Balance
of the TAC Certificates to the applicable  balance shown in the applicable table
set forth in Exhibit V with respect to such Distribution Date.

     Targeted  Overcollateralization  Amount:  As of any  Distribution  Date (x)
prior to the Stepdown Date, 0.35% of the aggregate  Stated Principal  Balance of
the  Group T2  Mortgage  Loans on the  Cut-off  Date  and (y) on and  after  the
Stepdown Date, (i) if a Trigger Event has not occurred, the greater of (A) 0.70%
of the aggregate Stated  Principal  Balance of the Group T2 Mortgage Loans as of
last day of the related  Collection Period and (B) 0.35% of the aggregate Stated
Principal Balance of the Group T2 Mortgage Loans on the Cut-off Date and (ii) if
a Trigger Event has occurred, the Targeted  Overcollateralization Amount for the
immediately preceding Distribution Date.

     Tax  Matters  Person:  Any person  designated  as "tax  matters  person" in
accordance with Section 5.07 and the manner  provided under Treasury  Regulation
ss. 1.860F-4(d) and Treasury Regulation ss. 301.6231(a)(7)-1.

     Telerate Page 3750: The display page currently so designated on the Reuters
Telerate  Service (or such other page as may replace the Telerate Page 3750 page
on that service for the purpose of displaying  London interbank offered rates of
major banks).

                                      -55-
<PAGE>

     Total Covered Amount:  As defined in the Mortgage Loan Purchase  Agreement.

     Treasury Regulations: The final and temporary regulations promulgated under
the Code by the U.S. Department of the Treasury.

     Trigger  Event:  With  respect  to  any  Distribution   Date,  if  (i)  the
three-month rolling average of 60+ Day Delinquent Loans equals or exceeds 50.00%
of the Senior  Enhancement  Percentage or (ii) the aggregate  amount of Realized
Losses  incurred on the Group T2 Mortgage  Loans since the Cut-off  Date through
the last day of the related  Collection  Period (reduced by the aggregate amount
of Recoveries  related to the Group T2 Mortgage Loans received since the Cut-off
Date  through  the last day of the  related  Collection  Period  on the Group T2
Mortgage Loans) divided by the aggregate Cut-off Date Pool Principal Balance for
Loan Group T2 exceeds the applicable percentages set forth below with respect to
such Distribution Date:
<TABLE>
<CAPTION>
   Distribution Date Occurring In                         Percentage
   ------------------------------                         ----------
<S>      <C>                  <C>          <C>                                           <C>       <C>
November 2008 through October 2009         0.20% for the first month, plus an additional 1/12th of 0.30%
                                           for each month thereafter
November 2009 through October 2010         0.50% for the first month, plus an additional 1/12th of 0.35%
                                           for each month thereafter
November 2010 through October 2011         0.85% for the first month, plus an additional 1/12th of 0.35%
                                           for each month thereafter
November 2011 through October 2012         1.20% for the first month, plus an additional 1/12th of 0.25%
                                           for each month thereafter
November 2012 and thereafter               1.45%
</TABLE>

     Trust: The trust created by this Agreement,  which shall be named the "Banc
of America Funding 2006-7 Trust." -----

     Trust Estate:  The segregated pool of assets subject  hereto,  constituting
the primary trust created hereby and to be administered hereunder,  with respect
to a portion of which five REMIC  elections  are to be made,  such entire  Trust
Estate  consisting  of: (i) such Mortgage Loans as from time to time are subject
to this  Agreement,  together  with the Mortgage  Files  relating  thereto,  and
together  with  all  collections  thereon  and  proceeds  thereof,  (ii) any REO
Property,  together with all collections thereon and proceeds thereof, (iii) the
Trustee's rights with respect to the Mortgage Loans under all insurance policies
required to be maintained  pursuant to this Agreement and any proceeds  thereof,
(iv) the right to receive  amounts,  if any,  payable on behalf of any Mortgagor
from the  Buy-Down  Account  relating to any  Buy-Down  Mortgage  Loan,  (v) the
Depositor's rights under the Servicing Agreements and the Mortgage Loan Purchase
Agreement  (including  any  security  interest  created  thereby)  and  (vi) the
Servicer Custodial  Accounts,  the Master Servicer  Custodial  Account,  the Cap
Carryover  Reserve  Account,  the Certificate  Account and the Reserve Funds and
such assets that are  deposited  therein  from time to time and any  investments
thereof,  together  with any and all income,  proceeds and payments with respect
thereto. The Buy-Down Account shall not be part of the Trust Estate.

     Trustee:  U.S. Bank National  Association,  and its  successors-in-interest
and, if a successor trustee is appointed hereunder, such successor, as trustee.

                                      -56-
<PAGE>
     Uncertificated  Accrued  Interest:  With  respect  to  each  Uncertificated
Lower-Tier II Regular Interest or Uncertificated  Upper-Tier II Regular Interest
(other than the Class CE  Upper-Tier II Regular  Interest) on each  Distribution
Date,  an amount  equal to one month's  interest  at the related  Uncertificated
Lower-Tier  II REMIC  Pass-Through  Rate or  Uncertificated  Upper-Tier II REMIC
Pass-Through  Rate  on  the  Uncertificated   Balance  of  such   Uncertificated
Lower-Tier II Regular Interest or Uncertificated Upper-Tier II Regular Interest.
With respect to the Class CE Upper-Tier II Regular Interest on each Distribution
Date, an amount equal to one month's  interest at its  Pass-Through  Rate on its
Notional  Amount.  In the  case of each  Uncertificated  Lower-Tier  II  Regular
Interest  or  Uncertificated  Upper-Tier  II  Regular  Interest,  Uncertificated
Accrued Interest will be reduced by any Relief Act Reductions (allocated to such
Uncertificated  Lower-Tier II Regular Interest or  Uncertificated  Upper-Tier II
Regular Interest based on their respective entitlements to interest irrespective
of any Relief Act Reductions for such Distribution Date).

     With respect to each  Uncertificated  Shifting Interest  Lower-Tier Regular
Interest or  Uncertificated  Shifting Interest  Middle-Tier  Regular Interest on
each  Distribution  Date, an amount equal to one month's interest at the related
Pass-Through Rate on the Uncertificated Balance of such Uncertificated  Shifting
Interest  Lower-Tier  Regular  Interest  or  Uncertificated   Shifting  Interest
Middle-Tier Regular Interest.  With respect to each Shifting Interest Upper-Tier
Regular  Interest  on each  Distribution  Date,  an amount  equal to one month's
interest at the Pass-Through  Rate on the related Class  Certificate  Balance or
Notional Amount. In the case of each Uncertificated Shifting Interest Lower-Tier
Regular Interest,  Uncertificated Shifting Interest Middle-Tier Regular Interest
or  Shifting  Interest  Upper-Tier  Regular  Interest,   Uncertificated  Accrued
Interest will be reduced by any Non-Supported Interest Shortfalls and any Relief
Act Reductions,  allocated to such  Uncertificated  Shifting Interest Lower-Tier
Regular Interest,  Uncertificated Shifting Interest Middle-Tier Regular Interest
or Shifting  Interest  Upper-Tier  Regular  Interest  based on their  respective
entitlements to interest  irrespective of any Non-Supported  Interest Shortfalls
or Relief Act Reductions for such Distribution Date.

     Uncertificated  Balance:  The amount of any  Uncertificated  Lower-Tier  II
Regular Interest or Uncertificated Upper-Tier II Regular Interest outstanding as
of any date of determination. As of the Closing Date, the Uncertificated Balance
of  each  Uncertificated   Lower-Tier  II  Regular  Interest  or  Uncertificated
Upper-Tier  II  Regular  Interest  shall  equal  the  amount  set  forth  in the
Preliminary  Statement  hereto as its initial  Uncertificated  Balance.  On each
Distribution Date, the Uncertificated Balance of each Uncertificated  Lower-Tier
II Regular  Interest or  Uncertificated  Upper-Tier II Regular Interest shall be
reduced by all distributions of principal made on such Uncertificated Lower-Tier
II Regular  Interest or  Uncertificated  Upper-Tier II Regular  Interest on such
Distribution  Date pursuant to Section 5.03 and, if and to the extent  necessary
and appropriate,  shall be further reduced on such Distribution Date by Realized
Losses as  provided in Section  5.04.  The  Uncertificated  Balance of the Class
LRII-ZZ Interest shall be increased by interest deferrals as provided in Section
5.03. The Uncertificated  Balance of each  Uncertificated  Lower-Tier II Regular
Interest or  Uncertificated  Upper-Tier II Regular  Interest shall never be less
than zero.

     With respect to each  Uncertificated  Shifting Interest  Lower-Tier Regular
Interest or Uncertificated  Shifting Interest Middle-Tier Regular Interest,  the
amount of such  Uncertificated  Shifting Interest Lower-Tier Regular Interest or

                                      -57-
<PAGE>
Uncertificated  Shifting Interest Middle-Tier Regular Interest outstanding as of
any date of determination. As of the Closing Date, the Uncertificated Balance of
each   Uncertificated   Shifting   Interest   Lower-Tier   Regular  Interest  or
Uncertificated  Shifting Interest  Middle-Tier  Regular Interest shall equal the
amount  set  forth  in  the   Preliminary   Statement   hereto  as  its  initial
Uncertificated Balance. On each Distribution Date, the Uncertificated Balance of
each   Uncertificated   Shifting   Interest   Lower-Tier   Regular  Interest  or
Uncertificated  Shifting Interest  Middle-Tier Regular Interest shall be reduced
by all distributions of principal made on such Uncertificated  Shifting Interest
Lower-Tier  Regular Interest or  Uncertificated  Shifting  Interest  Middle-Tier
Regular  Interest  on  such  Distribution  Date  pursuant  to  Section  5.02  or
reductions  of its  Notional  Amount  and,  if and to the extent  necessary  and
appropriate,  shall be further  reduced on such  Distribution  Date by  Realized
Losses  as  provided  in  Section  5.04.  The  Uncertificated  Balance  of  each
Uncertificated  Shifting Interest  Lower-Tier Regular Interest or Uncertificated
Shifting Interest Middle-Tier Regular Interest shall never be less than zero.

     Uncertificated  Lower-Tier II Interests:  The Uncertificated  Lower-Tier II
Regular  Interests and the II-LR  interest,  which  represents the sole class of
residual interest in the Lower-Tier II REMIC.

     Uncertificated  Lower-Tier II Regular  Interest:  A regular interest in the
Lower-Tier II REMIC which is held as an asset of the  Upper-Tier II REMIC and is
entitled to monthly distributions as provided in Section 5.03 hereof.

     Uncertificated  Lower-Tier  II REMIC  Pass-Through  Rate:  A per annum rate
equal to the weighted average of the Net Mortgage Interest Rates of the Group T2
Mortgage Loans.

     Uncertificated Shifting Interest Lower-Tier Interest: A regular interest in
the Shifting Interest Lower-Tier REMIC which is held as an asset of the Shifting
Interest Middle-Tier REMIC and is entitled to monthly  distributions as provided
in Section 5.02 hereof. Any of the Class 1-L Interest,  the Class 1-LIO Interest
and the Class 1-LPO Interest are  Uncertificated  Shifting  Interest  Lower-Tier
Interests.

     Uncertificated Shifting Interest Lower-Tier REMIC Pass-Through Rate: As set
forth in the Preliminary Statement.

     Uncertificated Shifting Interest Middle-Tier Interests:  The Uncertificated
Shifting Interest  Middle-Tier  Regular Interests and the SI-MR interest,  which
represents  the  sole  class  of  residual  interest  in the  Shifting  Interest
Middle-Tier REMIC.

     Uncertificated  Shifting Interest  Middle-Tier Regular Interest:  A regular
interest in the Shifting Interest Middle-Tier REMIC which is held as an asset of
the Shifting Interest Upper-Tier REMIC and is entitled to monthly  distributions
as provided in Section 5.02 hereof. Any of the Class MRI-1-A-1  Interest,  Class
MRI-1-A-R Interest,  Class MRI-1-A-2 Interest,  Class MRI-1-A-3 Interest,  Class
MRI-1-A-4  Interest,   Class  MRI-IO  Interest,  Class  MRI-PO  Interest,  Class
MRI-1-B-1 Interest,  Class MRI-1-B-2 Interest,  Class MRI-1-B-3 Interest,  Class
MRI-1-B-4   Interest,   Class  MRI-1-B-5  and  Class   MRI-1-B-6   Interest  are
Uncertificated Shifting Interest Middle-Tier Regular Interests.

                                      -58-
<PAGE>
     Uncertificated  Shifting Interest  Middle-Tier REMIC  Pass-Through Rate: As
set forth in the Preliminary Statement.

     Uncertificated  Upper-Tier II REMIC  Pass-Through Rate: As set forth in the
Preliminary Statement.

     Underwriter's  Exemption:  An  exemption  listed in  footnote  1 of, and as
amended by, Prohibited  Transaction  Exemption 2002-41, 67 Fed Reg 54487 (August
22, 2002) and any successor exemption.

     Unpaid  Realized  Loss Amount:  For any Class of Senior  Overcollateralized
Certificates,  Mezzanine  Certificates or Class T2-B  Certificates and as to any
Distribution  Date, the excess of (x) the cumulative  amount of Applied Realized
Loss Amounts allocated to such Class for all prior  Distribution  Dates over (y)
the sum of (a) the cumulative amount of any Recoveries  allocated to such Class,
(b) the cumulative amount of Realized Loss Amortization  Amounts with respect to
such Class for all prior  Distribution  Dates and (c) the  cumulative  amount of
Unpaid Realized Loss Amounts reimbursed to such class for all prior Distribution
Dates from the Overcollateralized Reserve Fund.

     Upper-Tier II Interests: The Uncertificated Upper-Tier II Regular Interests
and the II-UR interest,  which represents the sole class of residual interest in
the Upper-Tier II REMIC.

     Upper-Tier II Certificate  Sub-Account:  The sub-account of the Certificate
Account designated by the Securities Administrator pursuant to Section 3.09(h).

     Upper-Tier  II  Regular  Interest:  Any of  the  regular  interests  in the
Upper-Tier II REMIC listed in the Preliminary Statement,  the ownership of which
is represented, in part, by the Overcollateralized Certificates.

     Upper-Tier II REMIC: As defined in the Preliminary Statement, the assets of
which consist of the Uncertificated  Lower-Tier II Interests and such amounts as
shall be deemed held in the Upper-Tier II Certificate Sub-Account.

     U.S.  Person:  A citizen or resident of the United States, a corporation or
partnership  (unless,  in the case of a partnership,  Treasury  Regulations  are
adopted that provide otherwise) created or organized in or under the laws of the
United  States,  any state  thereof or the  District of  Columbia,  including an
entity treated as a corporation or partnership  for federal income tax purposes,
an estate whose income is subject to United States federal income tax regardless
of its  source,  or a trust  if a court  within  the  United  States  is able to
exercise primary  supervision over the  administration of such trust, and one or
more such U.S.  Persons have the authority to control all substantial  decisions
of such trust (or, to the extent  provided in applicable  Treasury  Regulations,
certain trusts in existence on August 20, 1996 which are eligible to elect to be
treated as U.S. Persons).

     Voting Rights:  The portion of the voting rights of all of the Certificates
which is allocated to any Certificate. As of any date of determination,  (a) 95%
of  all  Voting  Rights  shall  be  allocated  to  the  Holders  of  the  Senior

                                      -59-
<PAGE>
Certificates   (other  than  the  Class  1-A-R,  Class  1-A-3  and  Class  30-IO
Certificates),  the Class 1-B Certificates,  the Mezzanine  Certificates and the
Class T2-B  Certificates  in  proportion  to the  Certificate  Balances of their
respective  Certificates,  (b) 1% of all Voting Rights shall be allocated to the
Holders of the Class 1-A-3  Certificates,  (c) 1% of all Voting  Rights shall be
allocated to the Holders of the Class 30-IO  Certificates,  (d) 1% of all Voting
Rights shall be allocated to the Holder of the Class 1-A-R  Certificate,  (e) 1%
of all  Voting  Rights  shall  be  allocated  to the  Holders  of the  Class  CE
Certificates  and (f) 1% of all Voting  Rights shall be allocated to the Holders
of the Class P Certificates.

     Wells Fargo:  Wells Fargo Bank, N.A., in its capacity as Servicer under the
Wells Fargo Servicing Agreement.

     Wells Fargo Servicing Agreement:  Collectively,  (i) that certain Servicing
Agreement,  dated as of July 1, 2006,  by and  between  BANA and Wells Fargo and
(ii) the  Assignment,  Assumption and Recognition  Agreement,  dated October 30,
2006, by and among BANA, the  Depositor,  the Trustee,  the Master  Servicer and
Wells Fargo.

     Yield  Maintenance  Agreement:  Any of the Class  1-A-4  Yield  Maintenance
Agreement or the Overcollateralized Yield Maintenance Agreement.

     Yield Maintenance Agreement Payment: Any of a Class 1-A-4 Yield Maintenance
Agreement Payment or an Overcollateralized Yield Maintenance Agreement Payment.

     Section 1.02 Interest Calculations.

     All  calculations  of  interest  with  respect  to  the  Shifting  Interest
Certificates  and the  Overcollateralized  Certificates  (other  than the  Class
T2-A-2  Certificates)  will be made on a 360-day year  consisting of twelve (12)
30-day  months.  All  calculations  of interest with respect to the Class T2-A-2
Certificates  will be made on a 360-day year  consisting  of twelve (12) months,
each of which has the actual  number of days in such month.  All dollar  amounts
calculated  hereunder shall be rounded to the nearest penny with one-half of one
penny being rounded down.

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS
                        ORIGINAL ISSUANCE OF CERTIFICATES

     Section 2.01 Conveyance of Mortgage Loans.

     (a) The  Depositor,  concurrently  with the execution and delivery  hereof,
hereby sells, transfers, assigns, sets over and otherwise conveys to the Trustee
on  behalf  of the  Trust for the  benefit  of the  Certificateholders,  without
recourse,  all the right,  title and  interest  of the  Depositor  in and to the
Mortgage  Loans and the related  Mortgage  Files,  including  all  interest  and
principal received on or with respect to the Mortgage Loans (other than payments
of principal and interest due and payable on the Mortgage Loans on or before the

                                      -60-
<PAGE>
Cut-off Date) and the Depositor's rights under the BANA Servicing  Agreement and
under  the  Mortgage  Loan  Purchase  Agreement,  including  the  rights  of the
Depositor as assignee of the Sponsor with respect to the Sponsor's  rights under
the  Servicing  Agreements  (other  than  the  BANA  Servicing  Agreement).  The
foregoing sale,  transfer,  assignment and set over does not and is not intended
to result in a creation of an assumption by the Trustee of any obligation of the
Depositor  or any other  Person in  connection  with the  Mortgage  Loans or any
agreement or  instrument  relating  thereto,  except as  specifically  set forth
herein. In addition, the Depositor, concurrently with the execution and delivery
hereof, hereby sells, transfers, assigns, sets over and otherwise conveys to the
Trustee  on  behalf  of the Trust  for the  benefit  of the  Certificateholders,
without  recourse,  the  Depositor's  rights to receive  any BPP  Mortgage  Loan
Payment.  It is agreed  and  understood  by the  parties  hereto  that it is not
intended  that any  mortgage  loan be included in the Trust that is a "High-Cost
Home Loan" as defined in any of (i) the New Jersey Home  Ownership Act effective
November  27,  2003,  (ii) the New Mexico  Home Loan  Protection  Act  effective
January 1, 2004,  (iii) the  Massachusetts  Predatory  Home Loan  Practices  Act
effective  November  7,  2004 or (iv)  the  Indiana  Home  Loan  Practices  Act,
effective January 1, 2005.

     (b) In  connection  with such  transfer and  assignment,  the Depositor has
delivered or caused to be delivered to the Trustee,  or a Custodian on behalf of
the Trustee, for the benefit of the Certificateholders,  the following documents
or instruments with respect to each Mortgage Loan so assigned:

          (i) the  original  Mortgage  Note,  endorsed  by manual  or  facsimile
     signature in the  following  form:  "Pay to the order of U.S. Bank National
     Association,  as trustee for holders of Banc of America Funding Corporation
     Mortgage Pass-Through Certificates,  Series 2006-7, without recourse," with
     all  necessary  intervening   endorsements  showing  a  complete  chain  of
     endorsement from the originator to the Trustee (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)
     and, in the case of any Mortgage  Loan  originated in the State of New York
     documented by a NYCEMA,  the NYCEMA,  the new Mortgage Note, if applicable,
     the consolidated Mortgage Note and the consolidated Mortgage;

          (ii) the  original  recorded  Mortgage  with  evidence  of a recording
     thereon,  or if any such Mortgage has not been returned from the applicable
     recording  office or has been  lost,  or if such  public  recording  office
     retains the original recorded  Mortgage,  a copy of such Mortgage certified
     by the applicable  Servicer (which may be part of a blanket  certification)
     as being a true and correct copy of the Mortgage;

          (iii)  subject to the  provisos at the end of this  paragraph,  a duly
     executed  Assignment  of Mortgage to "U.S.  Bank National  Association,  as
     trustee for the  holders of Banc of America  Funding  Corporation  Mortgage
     Pass-Through  Certificates,  Series  2006-7"  (which may be  included  in a
     blanket assignment or assignments),  together with originals of all interim
     recorded  assignments of such mortgage or a copy of such interim assignment
     certified  by the  applicable  Servicer  (which  may be part  of a  blanket
     certification)  as being a true and complete copy of the original  recorded
     intervening  assignments of Mortgage (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

                                      -61-
<PAGE>
     which the assignment  relates);  provided that, if the related Mortgage has
     not been  returned  from  the  applicable  public  recording  office,  such
     Assignment  of Mortgage may exclude the  information  to be provided by the
     recording office; and provided,  further,  if the related Mortgage has been
     recorded  in the name of Mortgage  Electronic  Registration  Systems,  Inc.
     ("MERS") or its  designee,  no  Assignment of Mortgage in favor of the
     Trustee  will be  required to be prepared or  delivered  and  instead,  the
     Master Servicer shall enforce the obligations of the applicable Servicer to
     take all  actions  as are  necessary  to cause the Trust to be shown as the
     owner of the related  Mortgage  Loan on the records of MERS for purposes of
     the system of  recording  transfers  of  beneficial  ownership of mortgages
     maintained by MERS;

          (iv) the originals of all assumption,  modification,  consolidation or
     extension agreements, if any, with evidence of recording thereon, if any;

          (v) any of (A) the  original or  duplicate  original  mortgagee  title
     insurance policy and all riders thereto, (B) a title search showing no lien
     (other than standard  exceptions) on the Mortgaged  Property  senior to the
     lien of the  Mortgage or (C) an opinion of counsel of the type  customarily
     rendered  in the  applicable  jurisdiction  in lieu  of a  title  insurance
     policy;

          (vi) the original of any  guarantee  executed in  connection  with the
     Mortgage Note;

          (vii)  for  each  Mortgage  Loan,  if  any,  which  is  secured  by  a
     residential long-term lease, a copy of the lease with evidence of recording
     indicated thereon,  or, if the lease is in the process of being recorded, a
     photocopy  of the lease,  certified by an officer of the  respective  prior
     owner of such Mortgage Loan or by the applicable  title insurance  company,
     closing/settlement/escrow agent or company or closing attorney to be a true
     and correct copy of the lease transmitted for recordation;

          (viii) the original of any  security  agreement,  chattel  mortgage or
     equivalent document executed in connection with the Mortgage; and

          (ix)  for  each  Mortgage  Loan  secured  by  Cooperative  Stock,  the
     originals of the following documents or instruments:

               (A) The Cooperative Stock Certificate;

               (B) The stock power executed in blank;

               (C) The executed Cooperative Lease;

               (D) The executed Recognition Agreement;

               (E) The executed assignment of Recognition Agreement, if any;

               (F) The  executed  UCC-1  financing  statement  with  evidence of
          recording thereon; and

                                      -62-
<PAGE>
               (G) Executed UCC-3 financing  statements or other appropriate UCC
          financing  statements required by state law, evidencing a complete and
          unbroken  line from the  mortgagee  to the  Trustee  with  evidence of
          recording thereon (or in a form suitable for recordation).

provided,  however,  that on the Closing  Date,  with  respect to item iii), if
an  Assignment  of Mortgage is required to be recorded as set forth  below,  the
Depositor  has delivered to the Trustee or a Custodian on behalf of the Trustee,
as the case may be, a copy of such  Assignment  of Mortgage in blank rather than
in the name of the Trustee and has caused the applicable  Servicer to retain the
completed  Assignment of Mortgage for recording as described below,  unless such
Mortgage has been recorded in the name of MERS or its designee.  In addition, if
the  Depositor  is  unable to  deliver  or cause the  delivery  of any  original
Mortgage Note due to the loss of such original  Mortgage Note, the Depositor may
deliver a copy of such Mortgage Note,  together with a lost note affidavit,  and
shall thereby be deemed to have satisfied the document delivery  requirements of
this Section 2.01(b).

     If in connection with any Mortgage Loans,  the Depositor cannot deliver (A)
the  Mortgage,  (B)  all  interim  recorded  assignments,  (C)  all  assumption,
modification, consolidation or extension agreements, if any, or (D) the lender's
title  policy,  if any,  (together  with all  riders  thereto),  if  applicable,
satisfying  the  requirements  of  clause  (ii),   (iii),  (iv)  or  (v)  above,
respectively,  concurrently  with the execution and delivery hereof because such
document  or  documents  have  not been  returned  from  the  applicable  public
recording office in the case of clause (ii), (iii) or (iv) above, or because the
title  policy,  if  applicable,  has not been  delivered  to any of the  related
Servicer, the Sponsor or the Depositor,  as applicable,  by the applicable title
insurer,  if any, in the case of clause (v) above,  the Depositor shall promptly
deliver or cause to be  delivered to the Trustee or a Custodian on behalf of the
Trustee,  as the case may be, in the case of clause  (ii),  (iii) or (iv) above,
such  Mortgage,  such  interim  assignment  or  such  assumption,  modification,
consolidation  or  extension  agreement,  as the case may be,  with  evidence of
recording  indicated  thereon  upon receipt  thereof  from the public  recording
office,  but in no event  shall  any such  delivery  of any  such  documents  or
instruments be made later than one (1) year following the Closing Date,  unless,
in the case of clause  (ii),  (iii) or (iv) above,  there has been a  continuing
delay at the  applicable  recording  office or, in the case of clause (v), there
has been a continuing  delay at the  applicable  insurer and the  Depositor  has
delivered an Officer's  Certificate to such effect to the Trustee. The Depositor
shall forward or cause to be forwarded to the Trustee or a Custodian,  on behalf
of the Trustee,  as the case may be, (1) from time to time  additional  original
documents  evidencing an assumption or  modification  of a Mortgage Loan and (2)
any other documents required to be delivered by the Depositor, or the applicable
Servicer to the Trustee or a Custodian on the Trustee's  behalf, as the case may
be. In the event that the original  Mortgage is not  delivered and in connection
with the  payment in full of the  related  Mortgage  Loan the  public  recording
office requires the presentation of a "lost instruments affidavit and indemnity"
or any equivalent document, because only a copy of the Mortgage can be delivered
with the  instrument  of  satisfaction  or  reconveyance,  the  Depositor  shall
prepare, execute and deliver or cause to be prepared, executed and delivered, on
behalf of the Trust, such a document to the public recording office.

     With respect to each Mortgage Loan, as promptly as  practicable  subsequent
to such  transfer and  assignment,  the Master  Servicer  shall  (except for any

                                      -63-
<PAGE>

Mortgage  which has been recorded in the name of MERS or its  designee)  enforce
the  obligations  of the related  Servicer  pursuant  to the  related  Servicing
Agreement  to (I) cause each  Assignment  of  Mortgage  to be in proper form for
recording in the appropriate  public office for real property records within the
time  period  required in the  applicable  Servicing  Agreement  and (II) at the
Depositor's  expense,  cause to be delivered  for  recording in the  appropriate
public office for real property  records the Assignments of the Mortgages to the
Trustee,  except that,  with respect to any Assignment of a Mortgage as to which
the related  Servicer has not received the information  required to prepare such
assignment  in  recordable  form,  such  Servicer's  obligation  to do so and to
deliver  the same  for such  recording  shall  be as soon as  practicable  after
receipt of such  information  and in accordance  with the  applicable  Servicing
Agreement.

     No recording of an  Assignment  of Mortgage  will be required in a state if
either  (i)  the  Depositor   furnishes  to  the  Trustee  and  the   Securities
Administrator  an unqualified  Opinion of Counsel  reasonably  acceptable to the
Trustee and the Securities  Administrator to the effect that recordation of such
assignment is not necessary under applicable state law to preserve the Trustee's
interest  in the  related  Mortgage  Loan  against  the claim of any  subsequent
transferee  of such  Mortgage  Loan or any  successor  to, or  creditor  of, the
Depositor or the originator of such Mortgage Loan or (ii) the  recordation of an
Assignment  of Mortgage in such state is not required by either Rating Agency in
order to obtain the initial  ratings on the  Certificates  on the Closing  Date.
Exhibit J attached hereto sets forth the list of all states where recordation is
required by any Rating Agency to obtain the initial ratings of the Certificates.
The Securities  Administrator and the Trustee may rely and shall be protected in
relying upon the information contained in such Exhibit J.

     In the case of  Mortgage  Loans  that have been  prepaid  in full as of the
Closing Date,  the Depositor,  in lieu of delivering the above  documents to the
Trustee,  or a Custodian  on the  Trustee's  behalf,  will cause the  applicable
Servicer  to remit to the Master  Servicer  for  deposit in the Master  Servicer
Custodial  Account the portion of such  payment that is required to be deposited
in the such account pursuant to Section 3.09.

     Section 2.02 Acceptance by the Trustee or Custodian of the Mortgage Loans.

     Subject to the provisions of the following paragraph,  the Trustee declares
that it, or a Custodian  as its agent,  will hold the  documents  referred to in
Section  2.01 and the other  documents  delivered  to it or a  Custodian  as its
agent, as the case may be,  constituting  the Mortgage  Files,  and that it will
hold such other assets as are  included in the Trust Estate  delivered to it, in
trust  for  the   exclusive   use  and   benefit  of  all   present  and  future
Certificateholders.  Upon execution and delivery of this  document,  the Trustee
shall  deliver or cause a  Custodian  to deliver  to the  Depositor,  the Master
Servicer and the NIMS Insurer a  certification  in the form  attached  hereto as
Exhibit K (the  "Initial  Certification")  to the effect that,  except as may be
specified in a list of exceptions attached thereto, such Person has received the
original  Mortgage  Note  relating to each of the  Mortgage  Loans listed on the
Mortgage Loan Schedule.

     Within 90 days after the  execution  and  delivery of this  Agreement,  the
Trustee shall review, or cause a Custodian, on behalf of the Trustee, to review,
the  Mortgage  Files in such  Person's  possession,  and  shall  deliver  to the

                                      -64-
<PAGE>
Depositor,  the Master Servicer and the NIMS Insurer a certification in the form
attached hereto as Exhibit L (the "Final  Certification") to the effect that, as
to each  Mortgage Loan listed in the Mortgage  Loan  Schedule,  except as may be
specified in a list of  exceptions  attached to such Final  Certification,  such
Mortgage  File  contains all of the items  required to be delivered  pursuant to
Section 2.01(b).  In performing any such review, the Trustee or a Custodian,  as
the case may be, may conclusively rely on the purported  genuineness of any such
document and any signature thereon.

     If,  in  the  course  of  such  review,  a  Custodian  finds  any  document
constituting a part of a Mortgage File which does not meet the  requirements  of
Section  2.01 or is omitted from such  Mortgage  File or if the  Depositor,  the
Master Servicer,  the Trustee,  a Custodian,  the NIMS Insurer or the Securities
Administrator  discovers a breach by a Servicer, the Sponsor or the Depositor of
any  representation,  warranty or covenant under the Servicing  Agreements,  the
Mortgage  Loan  Purchase  Agreement  or this  Agreement,  as the case may be, in
respect of any Mortgage Loan and such breach  materially  adversely  affects the
interest of the  Certificateholders  in the related Mortgage Loan (provided that
any such breach that causes the Mortgage  Loan not to be a "qualified  mortgage"
within  the  meaning  of  Section  860G(a)(3)  of the Code  shall be  deemed  to
materially and adversely affect the interests of the  Certificateholders),  then
such party  shall  promptly so notify the Master  Servicer,  the  Sponsor,  such
Servicer,  the Securities  Administrator,  the Trustee, the NIMS Insurer and the
Depositor  of such failure to meet the  requirements  of Section 2.01 or of such
breach and request that the applicable  Servicer,  the Sponsor or the Depositor,
as applicable,  deliver such missing documentation or cure such defect or breach
within 90 days of its  discovery or its receipt of notice of any such failure to
meet the requirements of Section 2.01 or of such breach. If the Trustee receives
written notice that the Depositor,  the Sponsor or the applicable  Servicer,  as
the case may be, has not delivered such missing document or cured such defect or
breach in all material  respects during such period,  the Trustee,  on behalf of
the Trust,  shall  enforce  the  applicable  Servicer's,  the  Sponsor's  or the
Depositor's  obligation,  as the case may be,  under  the  applicable  Servicing
Agreement,  the Mortgage Loan Purchase Agreement or this Agreement,  as the case
may be, and cause the applicable Servicer, the Sponsor or the Depositor,  as the
case may be, to either (a) substitute for the related Mortgage Loan a Substitute
Mortgage  Loan,  which  substitution  shall be  accomplished  in the  manner and
subject to the  conditions  set forth below or (b) purchase  such  Mortgage Loan
from the Trust at the Purchase Price for such Mortgage Loan; provided,  however,
that in no event  shall such a  substitution  occur more than two years from the
Closing Date; provided, further, that such substitution or repurchase must occur
within 90 days of when such defect was  discovered if such defect will cause the
Mortgage  Loan not to be a  "qualified  mortgage"  within the meaning of Section
860G(a)(3) of the Code.

     Notwithstanding  any contrary provision of this Agreement,  no substitution
pursuant to this  Section 2.02 shall be made more than 90 days after the Closing
Date unless the Depositor delivers to the Securities Administrator an Opinion of
Counsel,  which  Opinion  of Counsel  shall not be at the  expense of either the
Trustee,  the  Securities  Administrator  or the Trust Estate,  addressed to the
Trustee and the Securities  Administrator,  to the effect that such substitution
will not (i) result in the imposition of the tax on "prohibited transactions" on
any REMIC created hereunder or contributions  after the Start-up Day, as defined
in Sections  860F(a)(2) and 860G(d) of the Code,  respectively or (ii) cause any
REMIC  created  hereunder  to fail to  qualify  as a REMIC at any time  that any
Certificates are outstanding.

                                      -65-
<PAGE>
     It is understood  that the scope of the Trustee's  review (or a Custodian's
review on its behalf) of the Mortgage Files is limited solely to confirming that
the documents  listed in Section 2.01 have been received and further  confirming
that any and all  documents  delivered  pursuant to Section 2.01 appear on their
face  to  have  been  executed  and  relate  to the  applicable  Mortgage  Loans
identified in the related Mortgage Loan Schedule based solely upon the review of
items (i) and (xi) in the  definition  of Mortgage  Loan  Schedule.  Neither the
Trustee nor any Custodian shall have any responsibility for determining  whether
any  document  is valid  and  binding,  whether  the text of any  assignment  or
endorsement  is in proper or  recordable  form,  whether any  document  has been
recorded in accordance with the requirements of any applicable jurisdiction,  or
whether a blanket assignment is permitted in any applicable jurisdiction.

     If the  Trustee  receives  written  notice from the  Depositor,  the Master
Servicer or the Securities  Administrator of a breach of any  representation  or
warranty of a related  Servicer or the Sponsor,  the  Trustee,  on behalf of the
Trust, shall enforce the rights of the Trust under the Servicing Agreements, the
Mortgage  Loan  Purchase  Agreement  and this  Agreement  for the benefit of the
Certificateholders.  If the Trustee  receives written notice from the Depositor,
the  Master  Servicer  or  the  Securities  Administrator  of a  breach  of  the
representations  or warranties with respect to the Mortgage Loans set forth in a
Servicing  Agreement,  the Trustee,  on behalf of the Trust,  shall  enforce the
right of the  Trust to be  indemnified  for such  breach  of  representation  or
warranty.  In  addition,  if  the  Trustee  receives  written  notice  from  the
Depositor,  the Master Servicer or the Securities Administrator of a breach of a
representation  with respect to a Mortgage  Loan set forth in clauses (k) or (o)
of  paragraph 3 or clauses  (f) and (oo) of  paragraph  4 of the  Mortgage  Loan
Purchase  Agreement  that  occurs as a result of a  violation  of an  applicable
predatory or abusive  lending law,  the Trustee,  on behalf of the Trust,  shall
enforce the right of the Trust to  reimbursement by the Sponsor for all costs or
damages  incurred  by the Trust as a result of the  violation  of such law (such
amount,  the  "Reimbursement  Amount"),  but  in  the  case  of  a  breach  of a
representation  set forth in clauses (k) or (o) of  paragraph 3 of the  Mortgage
Loan Purchase Agreement,  only to the extent the applicable Servicer does not so
reimburse  the  Trust.  It  is  understood  and  agreed  that,  except  for  any
indemnification  provided  in the  Servicing  Agreements  and the payment of any
Reimbursement Amount, the obligation of a Servicer, the Sponsor or the Depositor
to cure or to repurchase (or to substitute  for) any Mortgage Loan as to which a
document is missing, a material defect in a constituent document exists or as to
which such a breach has occurred and is  continuing  shall  constitute  the sole
remedy  against a  Servicer,  the  Sponsor or the  Depositor  in respect of such
omission,  defect or breach  available to the Trustee on behalf of the Trust and
the Certificateholders.

     With respect to the representations and warranties relating to the Mortgage
Loans set forth in the Mortgage  Loan  Purchase  Agreement  that are made to the
best of the Sponsor's knowledge or as to which the Sponsor had no knowledge,  if
it is discovered by the Depositor,  the Master Servicer, the NIMS Insurer or the
Trustee that the substance of such  representation or warranty is inaccurate and
such   inaccuracy   materially  and  adversely   affects  the  interest  of  the
Certificateholders  in the  related  Mortgage  Loan  then,  notwithstanding  the
Sponsor's lack of knowledge with respect to the substance of such representation
or warranty  being  inaccurate  at the time the  representation  or warranty was
made, such inaccuracy shall be deemed a breach of the applicable  representation
or warranty.

                                      -66-
<PAGE>
     It is  understood  and  agreed  that  the  representations  and  warranties
relating to the Mortgage Loans set forth in the Mortgage Loan Purchase Agreement
shall  survive  delivery of the Mortgage  Files to the Trustee or a Custodian on
the  Trustee's  behalf and shall inure to the benefit of the  Certificateholders
notwithstanding  any restrictive or qualified  endorsement or assignment.  It is
understood  and agreed  that the  obligations  of the  Sponsor set forth in this
Section 2.02 to cure,  substitute  for or repurchase a Mortgage Loan pursuant to
the Mortgage Loan Purchase  Agreement  constitute the sole remedies available to
the Certificateholders and to the Trustee on their behalf respecting a breach of
the  representations  and  warranties  contained in the Mortgage  Loan  Purchase
Agreement.

     The  representations  and  warranties  of each Servicer with respect to the
applicable  Mortgage Loans in the related Servicing  Agreement,  which have been
assigned to the Trustee  hereunder,  were made as of the date  specified in such
Servicing  Agreement.  To the  extent  that any fact,  condition  or event  with
respect to a Mortgage Loan constitutes a breach of both (i) a representation  or
warranty  of a  Servicer  under  the  related  Servicing  Agreement  and  (ii) a
representation  or warranty  of the Sponsor  under the  Mortgage  Loan  Purchase
Agreement,  the only right or remedy of the Trustee or of any  Certificateholder
shall be the Trustee's right, on behalf of the Trust, to enforce the obligations
of the applicable Servicer under any applicable  representation or warranty made
by it. It is hereby  acknowledged  that the Sponsor  shall have no obligation or
liability with respect to any breach of a representation  or warranty made by it
with respect to the Mortgage Loans if the fact,  condition or event constituting
such breach also  constitutes a breach of a  representation  or warranty made by
the applicable Servicer in the applicable Servicing Agreement, without regard to
whether such Servicer  fulfills its  contractual  obligations in respect of such
representation or warranty. It is hereby further acknowledged that the Depositor
shall  have no  obligation  or  liability  with  respect  to any  breach  of any
representation  or warranty  with respect to the Mortgage  Loans  (except as set
forth in Section 2.04) under any circumstances.

     With respect to each Substitute Mortgage Loan the applicable Servicer,  the
Sponsor or the Depositor, as the case may be, shall deliver to the Trustee (or a
Custodian on behalf of the Trustee), for the benefit of the  Certificateholders,
the documents and  agreements  required by Section 2.01,  with the Mortgage Note
endorsed and the Mortgage  assigned as required by Section 2.01. No substitution
is permitted to be made in any calendar month after the  Determination  Date for
such month.  Monthly  Payments due with respect to any such Substitute  Mortgage
Loan in the month of substitution shall not be part of the Trust Estate. For the
month of  substitution,  distributions  to  Certificateholders  will include the
Monthly Payment due for such month on any Defective  Mortgage Loan for which the
Depositor, the Sponsor or a Servicer has substituted a Substitute Mortgage Loan.

     The Master  Servicer shall amend the Mortgage Loan Schedule for the benefit
of the  Certificateholders to reflect the removal of each Mortgage Loan that has
become a Defective Mortgage Loan and the substitution of the Substitute Mortgage
Loan or Loans and the Master  Servicer  shall deliver the amended  Mortgage Loan
Schedule to the Securities Administrator,  the Trustee, the NIMS Insurer and any
Custodian.  Upon such  substitution  of a Mortgage  Loan by the  Depositor,  the

                                      -67-
<PAGE>
Sponsor or a Servicer,  each  Substitute  Mortgage  Loan shall be subject to the
terms of this  Agreement in all respects,  and the Depositor or the Sponsor,  as
the case may be,  shall be deemed to have made to the  Trustee  with  respect to
such   Substitute   Mortgage  Loan,  as  of  the  date  of   substitution,   the
representations and warranties made pursuant to paragraph 4 of the Mortgage Loan
Purchase  Agreement and the applicable  Servicer shall be deemed to have made to
the Trustee with respect to such  Substitute  Mortgage  Loan,  as of the date of
substitution,  the mortgage loan representations and warranties made pursuant to
the applicable Servicing  Agreement.  Upon any such substitution and the deposit
to the Master Servicer Custodial Account of any required Substitution Adjustment
Amount (as  described  in the next  paragraph)  and  receipt by the Trustee of a
Request for Release,  the Trustee shall release,  or shall direct a Custodian to
release,  the  Mortgage  File  relating  to  such  Defective  Mortgage  Loan  to
applicable Person and shall execute and deliver at such Person's  direction such
instruments of transfer or assignment prepared by such Person, without recourse,
as shall be  necessary  to vest  title in such  Person  or its  designee  to the
Trustee's  interest in any Defective  Mortgage Loan  substituted for pursuant to
this Section 2.02.

     For any month in which the Depositor, the Sponsor or a Servicer substitutes
one or more Substitute  Mortgage Loans for one or more Defective Mortgage Loans,
the  amount  (if any) by  which  the  aggregate  principal  balance  of all such
Substitute  Mortgage Loans  substituted by such Person in a Loan Group as of the
date of substitution is less than the aggregate Stated Principal  Balance of all
such Defective  Mortgage Loans in a Loan Group substituted by such Person (after
application of the principal portion of the Monthly Payments due in the month of
substitution) (the "Substitution Adjustment Amount" for such Loan Group) plus an
amount equal to the aggregate of any unreimbursed  Advances with respect to such
Defective Mortgage Loans shall be remitted by such Person to the Master Servicer
for deposit to the Master Servicer  Custodial  Account on or before the 18th day
of the month  succeeding  the calendar  month during which the related  Mortgage
Loan is required to be purchased or replaced hereunder.

     The  Trustee  shall  retain  or  shall  cause a  Custodian  to  retain,  as
applicable,  possession and custody of each Mortgage File in accordance with and
subject to the terms and conditions set forth herein.  The Master Servicer shall
cause to be promptly  delivered  to the Trustee or a Custodian  on behalf of the
Trustee,  as the case may be, upon the  execution  or, in the case of  documents
requiring  recording,  receipt thereof, the originals of such other documents or
instruments  constituting  the Mortgage File as come into the Master  Servicer's
possession from time to time.

     Neither the Trustee nor any Custodian shall be under any duty or obligation
(i) to inspect, review or examine any such documents, instruments,  certificates
or other papers to determine that they are genuine,  enforceable, or appropriate
for the represented  purpose or that they are other than what they purport to be
on their face or (ii) to determine  whether any Mortgage File should include any
of the documents specified in Section 2.01(b)(iv), (vi), (vii), (viii) and (ix).
In connection with making the certifications required hereunder, to the extent a
title  search or opinion of counsel has been  provided in lieu of a title policy
for any Mortgage Loan, the Trustee or a Custodian on its behalf,  as applicable,
shall  only be  responsible  for  confirming  that a title  search or opinion of
counsel has been provided for such Mortgage Loan.

                                      -68-
<PAGE>

     Section  2.03  Representations,  Warranties  and  Covenants  of the  Master
Servicer.

     The  Master  Servicer  hereby  makes  the  following   representations  and
warranties to the Depositor, the Securities Administrator,  the NIMS Insurer and
the Trustee, as of the Closing Date:

          (i)  The  Master  Servicer  is a  national  banking  association  duly
     chartered  and  validly  existing  in good  standing  under the laws of the
     United  States of America and has all  licenses  necessary  to carry on its
     business as now being  conducted  and is  licensed,  qualified  and in good
     standing  in each of the  states  where a  Mortgaged  Property  securing  a
     Mortgage  Loan is located if the laws of such state  require  licensing  or
     qualification  in order to conduct  business of the type  conducted  by the
     Master Servicer. The Master Servicer has power and authority to execute and
     deliver  this  Agreement  and  to  perform  in  accordance  herewith;   the
     execution,  delivery  and  performance  of this  Agreement  (including  all
     instruments of transfer to be delivered  pursuant to this Agreement) by the
     Master  Servicer  and the  consummation  of the  transactions  contemplated
     hereby have been duly and validly authorized. This Agreement,  assuming due
     authorization,   execution  and  delivery  by  the  other  parties  hereto,
     evidences  the valid,  binding  and  enforceable  obligation  of the Master
     Servicer, subject to applicable law except as enforceability may be limited
     by  (A)  bankruptcy,  insolvency,  liquidation,  receivership,  moratorium,
     reorganization  or other  similar laws  affecting  the  enforcement  of the
     rights  of  creditors  and  (B)  general  principles  of  equity,   whether
     enforcement  is sought in a proceeding  in equity or at law. All  requisite
     corporate  action  has  been  taken by the  Master  Servicer  to make  this
     Agreement valid and binding upon the Master Servicer in accordance with its
     terms.

          (ii) No consent, approval,  authorization or order is required for the
     transactions  contemplated  by this Agreement from any court,  governmental
     agency  or  body,  or  federal  or  state   regulatory   authority   having
     jurisdiction  over the Master  Servicer is required or, if  required,  such
     consent,  approval,  authorization  or order has been or will, prior to the
     Closing Date, be obtained.

          (iii)  The  consummation  of the  transactions  contemplated  by  this
     Agreement are in the ordinary course of business of the Master Servicer and
     will not result in the breach of any term or  provision  of the  charter or
     by-laws  of the  Master  Servicer  or result  in the  breach of any term or
     provision  of, or conflict  with or constitute a default under or result in
     the acceleration of any obligation under, any agreement,  indenture or loan
     or credit agreement or other instrument to which the Master Servicer or its
     property  is  subject,  or  result  in  the  violation  of any  law,  rule,
     regulation,  order,  judgment or decree to which the Master Servicer or its
     property is subject.

          (iv) There is no action, suit, proceeding or investigation pending or,
     to the best knowledge of the Master Servicer, threatened against the Master
     Servicer which,  either  individually or in the aggregate,  would result in
     any  material  adverse  change  in  the  business,  operations,   financial
     condition,  properties or assets of the Master Servicer, or in any material

                                      -69-
<PAGE>
     impairment  of the right or ability of the Master  Servicer to carry on its
     business  substantially  as now conducted or which would draw into question
     the validity of this Agreement or the Mortgage Loans or of any action taken
     or to be taken in connection  with the  obligations of the Master  Servicer
     contemplated  herein,  or which would materially  impair the ability of the
     Master Servicer to perform under the terms of this Agreement.

     The representations and warranties made pursuant to this Section 2.03 shall
survive delivery of the respective  Mortgage Files to the Trustee or a Custodian
on  the   Trustee's   behalf   and   shall   inure   to  the   benefit   of  the
Certificateholders.

     Section 2.04  Representations  and  Warranties  of the  Depositor as to the
Mortgage Loans.

     The Depositor  hereby  represents  and warrants to the Trustee and the NIMS
Insurer with respect to the Mortgage  Loans or each  Mortgage  Loan, as the case
may be, as of the date hereof or such other date set forth herein that as of the
Closing Date:

          (i)  Immediately  prior to the  transfer and  assignment  contemplated
     herein,  the Depositor was the sole owner and holder of the Mortgage Loans.
     The Mortgage  Loans were not assigned or pledged by the  Depositor  and the
     Depositor had good and marketable title thereto, and the Depositor had full
     right to transfer and sell the Mortgage Loans to the Trustee free and clear
     of any encumbrance,  participation interest, lien, equity, pledge, claim or
     security  interest and had full right and authority  subject to no interest
     or participation in, or agreement with any other party to sell or otherwise
     transfer the Mortgage Loans.

          (ii) As of the Closing Date, the Depositor has  transferred all right,
     title and  interest in the  Mortgage  Loans to the Trustee on behalf of the
     Trust.

          (iii) As of the Closing Date,  the Depositor has not  transferred  the
     Mortgage  Loans to the  Trustee  on behalf of the Trust  with any intent to
     hinder, delay or defraud any of its creditors.

          (iv) Each Mortgage Loan is a "qualified  mortgage"  within the meaning
     of Section 860G(a)(3) of the Code and Treasury Regulation section 1.860G-2.

     It is understood  and agreed that the  representations  and  warranties set
forth in this Section 2.04 shall  survive  delivery of the  respective  Mortgage
Files to the Trustee or a Custodian on the  Trustee's  behalf and shall inure to
the benefit of the Certificateholders.

     Upon discovery by any of the Depositor, the Master Servicer, the Securities
Administrator or the Trustee that any of the  representations and warranties set
forth in this Section  2.04 is not  accurate  (referred to herein as a "breach")
and that such breach  materially  and  adversely  affects the  interests  of the
Certificateholders  in the related  Mortgage  Loan, the party  discovering  such
breach shall give prompt written  notice to the other  parties;  provided that a
breach of the representation  that each Mortgage Loan is a "qualified  mortgage"
within  the  meaning  of  Section  860G(a)(3)  of the Code  shall be  deemed  to

                                      -70-
<PAGE>
materially and adversely affect the interests of the Certificateholders.  Within
90 days of its  discovery  or its  receipt  of  notice of any such  breach,  the
Depositor  shall cure such breach in all  material  respects or shall either (i)
repurchase  the Mortgage Loan or any property  acquired in respect  thereof from
the Trustee at a price equal to the  Purchase  Price or (ii) if within two years
of the Closing Date,  substitute for such Mortgage Loan in the manner  described
in Section 2.02;  provided that if the breach relates to the representation that
each Mortgage Loan is a "qualified mortgage" as defined in Section 860G(a)(3) of
the Code, any such repurchase or substitution must occur within 90 days from the
date the breach was discovered.  The Purchase Price of any repurchase  described
in this  paragraph and the  Substitution  Adjustment  Amount,  if any,  shall be
remitted to the Master  Servicer  for deposit to the Master  Servicer  Custodial
Account.  It is  understood  and agreed that,  except with respect to the second
preceding sentence,  the obligation of the Depositor to repurchase or substitute
for any  Mortgage  Loan or  Mortgaged  Property  as to which  such a breach  has
occurred and is continuing  shall  constitute  the sole remedy  respecting  such
breach  available  to  Certificateholders,  or to the Trust and the  Trustee  on
behalf  of   Certificateholders,   and  such  obligation   shall  survive  until
termination of the Trust hereunder.

     Section    2.05     Designation     of    Interests    in    the    REMICs.

     The Depositor hereby designates the Shifting Interest Upper-Tier  Interests
as  "regular  interests"  and the Class SI-UR  Interest  as the single  class of
"residual  interest" in the Shifting Interest  Upper-Tier REMIC for the purposes
of Code Sections 860G(a)(1) and 860G(a)(2),  respectively.  The Depositor hereby
further designates (i) the Uncertificated  Shifting Interest Middle-Tier Regular
Interests as classes of "regular  interests" and the Class SI-MR Interest as the
single class of "residual  interest" in the Shifting Interest  Middle-Tier REMIC
for the purposes of Code Sections 860G(a)(1) and 860G(a)(2),  respectively,  and
(ii) the  Uncertificated  Shifting  Interest  Lower-Tier  Regular  Interests  as
classes of "regular  interests" and the Class SI-LR Interest as the single class
of  "residual  interest"  in the  Shifting  Interest  Lower-Tier  REMIC  for the
purposes of Code Sections 860G(a)(1) and 860G(a)(2), respectively.

     The Depositor  hereby  designates  the  Upper-Tier II Regular  Interests as
"regular  interests"  and the  Class  II-UR  Interest  as the  single  class  of
"residual  interest"  in the  Upper-Tier  II REMIC for  purposes of Code Section
860G(a)(1) and 860G(a)(2), respectively. The Depositor hereby further designates
the  Uncertificated  Lower-Tier  II Regular  Interests  as  classes of  "regular
interests"  and the  Class  II-LR  Interest  as the  single  class of  "residual
interest" in the Lower-Tier II REMIC for purposes of Code Section 860G(a)(1) and
860G(a)(2), respectively.

     Section 2.06 Designation of Start-up Day.

     The Closing Date is hereby  designated as the "start-up day" of each of the
Shifting Interest Upper-Tier REMIC, the Shifting Interest Middle-Tier REMIC, the
Shifting  Interest  Lower-Tier REMIC, the Upper-Tier II REMIC and the Lower-Tier
II REMIC within the meaning of Section 860G(a)(9) of the Code.

     Section 2.07 REMIC Certificate Maturity Date.

     Solely  for  purposes  of  satisfying  Section  1.860G-1(a)(4)(iii)  of the
Treasury  Regulations,  the  "latest  possible  maturity  date"  of the  regular
interests in the  Shifting  Interest  Upper-Tier  REMIC,  the Shifting  Interest

                                      -71-
<PAGE>

Middle-Tier REMIC and the Shifting Interest Lower-Tier REMIC is the Distribution
Date immediately  following the maturity date for the Group 1 Mortgage Loan with
the latest maturity date.

     Solely  for  purposes  of  satisfying  Section  1.860G-1(a)(4)(iii)  of the
Treasury  Regulations,  the  "latest  possible  maturity  date"  of the  regular
interests  in the  Upper-Tier  II  REMIC  and the  Lower-Tier  II  REMIC  is the
Distribution  Date  immediately  following  the  maturity  date for the Group T2
Mortgage Loan with the latest maturity date.

     Section 2.08 Execution and Delivery of Certificates.

     The Securities  Administrator  (i)  acknowledges the issuance of and hereby
declares that it holds the Uncertificated  Shifting Interest  Lower-Tier Regular
Interests on behalf of the Shifting Interest  Middle-Tier REMIC and the Shifting
Interest  Certificateholders  and  that it  holds  the  Uncertificated  Shifting
Interest  Middle-Tier  Regular  Interests  on  behalf of the  Shifting  Interest
Upper-Tier REMIC and the Shifting Interest Certificateholders, (ii) acknowledges
the issuance of and hereby declares that it holds the Uncertificated  Lower-Tier
II  Regular   Interests   on  behalf  of  the   Upper-Tier   II  REMIC  and  the
Overcollateralized  Certificateholders,  and (iii) has executed and delivered to
or upon  the  order  of the  Depositor,  in  exchange  for the  Mortgage  Loans,
Uncertificated  Shifting Interest Lower-Tier Interests,  Uncertificated Shifting
Interest  Middle-Tier  Interests  and  Uncertificated  Lower-Tier  II Interests,
together with all other assets  included in the  definition  of "Trust  Estate,"
receipt   of  which  is  hereby   acknowledged,   Certificates   in   authorized
denominations  which,   together  with  the  Uncertificated   Shifting  Interest
Lower-Tier Interests, the Uncertificated Shifting Interest Middle-Tier Interests
and the Uncertificated Lower-Tier II Interests, evidence ownership of the entire
Trust Estate.  The Securities  Administrator  acknowledges the obligation of the
Class CE  Certificates  to pay Cap Carryover  Amounts and declares that it holds
the same on  behalf of the Class  T2-A-1,  Class  T2-A-2,  Class  T2-A-3,  Class
T2-A-4,  Class T2-A-5,  Class T2-A-6,  Class T2-A-7, Class T2-A-8, Class T2-A-A,
Class T2-A-B,  Class T2-M-1,  Class T2-M-2,  Class T2-M-3,  Class T2-M-4,  Class
T2-M-5,  Class T2-M-6, Class T2-M-7, Class T2-M-8, Class T2-B-1 and Class T2-B-2
Certificates,  respectively,  which shall be treated as beneficially  owning the
right to receive the Cap Carryover Amounts.

     Section 2.09 Establishment of the Trust.

     The Depositor does hereby establish,  pursuant to the further provisions of
this  Agreement  and the laws of the State of New York,  an express  trust to be
known,  for  convenience,  as "Banc of America  Funding  2006-7  Trust" and does
hereby appoint U.S. Bank National  Association as Trustee in accordance with the
provisions of this Agreement.

                                      -72-
<PAGE>
     Section 2.10 Purpose and Powers of the Trust.

     The purpose of the common law trust, as created hereunder,  is to engage in
the following activities:

     (a) to  acquire  and hold the  Mortgage  Loans and the other  assets of the
Trust Estate and the proceeds therefrom;

     (b) to issue the  Certificates  sold to the  Depositor  in exchange for the
Mortgage Loans;

     (c) to make payments on the Certificates;

     (d)  to  engage  in  those  activities  that  are  necessary,  suitable  or
convenient to accomplish  the foregoing or are  incidental  thereto or connected
therewith; and

     (e)  subject to  compliance  with this  Agreement,  to engage in such other
activities  as may be  required in  connection  with  conservation  of the Trust
Estate and the making of distributions to the Certificateholders.

     The trust is hereby  authorized  to  engage  in the  foregoing  activities.
Neither the Trustee nor the  Securities  Administrator  shall cause the trust to
engage in any activity other than in connection with the foregoing or other than
as required or  authorized by the terms of this  Agreement  (or those  ancillary
thereto) while any Certificate is outstanding,  and this Section 2.10 may not be
amended, without the consent of the Certificateholders evidencing 51% or more of
the aggregate voting rights of the Certificates.

     Section 2.11 Rights of the NIMS Insurer.

     Each of the rights of the NIMS  Insurer set forth in this  Agreement  shall
exist  so long as (i) the NIMS  Insurer  has  undertaken  to  guarantee  certain
payments of notes issued  pursuant to the Indenture and (ii) any series of notes
issued pursuant to the Indenture remains outstanding or the NIMS Insurer is owed
amounts  in  respect of its  guarantee  of  payments  on such  notes;  provided,
however,  the NIMS Insurer shall not have any rights hereunder  (except pursuant
to Section 11.01 in the case of clause (ii) below) during the period of time, if
any, that (a) the NIMS Insurer has not undertaken to guarantee  certain payments
of notes issued  pursuant to the  Indenture or (ii) any default has occurred and
is continuing under the insurance policy issued by the NIMS Insurer with respect
to such notes.

                                  ARTICLE III

                       ADMINISTRATION AND MASTER SERVICING
                                OF MORTGAGE LOANS

     Section    3.01    Master     Servicing    of    the    Mortgage     Loans.

     For and on behalf of the  Certificateholders,  the  Master  Servicer  shall
supervise,  monitor and oversee the  obligations of the Servicers to service and

                                      -73-
<PAGE>
administer their  respective  Mortgage Loans in accordance with the terms of the
applicable Servicing Agreement and shall have full power and authority to do any
and all things which it may deem necessary or desirable in connection  with such
master servicing and  administration.  In performing its obligations  hereunder,
the  Master  Servicer  shall act in a manner  consistent  with  this  Agreement,
subject  to  the  prior  sentence,  and  with  Customary  Servicing  Procedures.
Furthermore, the Master Servicer shall oversee and consult with each Servicer as
necessary  from  time-to-time  to carry out the  Master  Servicer's  obligations
hereunder, shall receive, review and evaluate all reports, information and other
data  provided  to the Master  Servicer  by each  Servicer  and shall cause each
Servicer to perform and observe the covenants,  obligations and conditions to be
performed or observed by such Servicer under the applicable Servicing Agreement.
The Master Servicer shall  independently and separately  monitor each Servicer's
servicing  activities with respect to each related Mortgage Loan,  reconcile the
results  of such  monitoring  with such  information  provided  in the  previous
sentence  on a  monthly  basis  and  coordinate  corrective  adjustments  to the
Servicers' and the Master Servicer's  records,  and based on such reconciled and
corrected  information,  prepare the Master Servicer's Certificate and any other
information  and  statements  required  hereunder.  The  Master  Servicer  shall
reconcile  the  results  of  its  Mortgage  Loan   monitoring  with  the  actual
remittances of the Servicers to the Master Servicer  Custodial  Account pursuant
to the applicable Servicing Agreements.

     Continuously  from the date hereof until the termination of the Trust,  the
Master  Servicer  shall enforce the  obligations of the Servicers to collect all
payments due under the terms and  provisions of the Mortgage Loans when the same
shall become due and payable to the extent such  procedures  shall be consistent
with the applicable Servicing Agreement.

     The relationship of the Master Servicer (and of any successor to the Master
Servicer  as master  servicer  under  this  Agreement)  to the  Trustee  and the
Securities  Administrator  under this Agreement is intended by the parties to be
that of an independent  contractor and not that of a joint venturer,  partner or
agent.

     Section 3.02 Monitoring of Servicers.

     (a) The Master  Servicer shall be responsible for reporting to the Trustee,
the Securities  Administrator  and the Depositor the compliance by each Servicer
with its duties  under the related  Servicing  Agreement.  In the review of each
Servicer's   activities,   the  Master  Servicer  may  rely  upon  an  officer's
certificate of the Servicer with regard to such  Servicer's  compliance with the
terms of its Servicing Agreement.  In the event that the Master Servicer, in its
judgment, determines that a Servicer should be terminated in accordance with its
Servicing Agreement,  or that a notice should be sent pursuant to such Servicing
Agreement with respect to the occurrence of an event that,  unless cured,  would
constitute  grounds for such  termination,  the Master Servicer shall notify the
Depositor,  the  Securities  Administrator,  the NIMS  Insurer  and the  Trustee
thereof  and the Master  Servicer  shall  issue  such  notice or take such other
action as it deems appropriate.

     (b)  The  Master   Servicer,   for  the   benefit  of  the  Trust  and  the
Certificateholders,  shall enforce the  obligations  of each Servicer  under the
related  Servicing  Agreement,  and shall, in the event that a Servicer fails to
perform its  obligations  in accordance  with the related  Servicing  Agreement,

                                      -74-
<PAGE>
subject to the preceding paragraph, terminate the rights and obligations of such
Servicer  thereunder and act as successor Servicer of the related Mortgage Loans
under the  applicable  Servicing  Agreement or cause the Trustee to enter into a
new  Servicing  Agreement  with a  successor  Servicer  selected  by the  Master
Servicer  (except,  in the case of the  Wells  Fargo  Servicing  Agreement,  the
Trustee  shall  select  the  successor  Servicer);   provided,  however,  it  is
understood and acknowledged by the parties hereto that there will be a period of
transition (not to exceed 90 days) before the actual servicing  functions can be
fully  transferred  to such successor  Servicer.  Such  enforcement,  including,
without  limitation,  the legal prosecution of claims,  termination of Servicing
Agreements and the pursuit of other appropriate remedies,  shall be in such form
and  carried out to such an extent and at such time as the Master  Servicer,  in
its good faith business judgment, would require were it the owner of the related
Mortgage Loans.  The Master Servicer shall pay the costs of such  enforcement at
its own  expense,  and  shall be  reimbursed  therefor  only (i) from a  general
recovery  resulting  from such  enforcement  to the  extent,  if any,  that such
recovery  exceeds all amounts  due in respect of the related  Mortgage  Loans or
(ii) from a specific  recovery of costs,  expenses or attorneys fees against the
party whom such  enforcement is directed,  provided that the Master Servicer and
the  Trustee,  as  applicable,  shall not be required to prosecute or defend any
legal action  except to the extent that the Master  Servicer or the Trustee,  as
applicable,  shall have received reasonable indemnity for its costs and expenses
in pursuing such action.

     (c) To the extent that the costs and expenses of the Master Servicer or the
Trustee, as applicable, related to any termination of a Servicer, appointment of
a successor  Servicer or the transfer and  assumption of servicing by the Master
Servicer or the Trustee, as applicable,  with respect to any Servicing Agreement
(including,  without  limitation,  (i) all legal costs and  expenses and all due
diligence  costs and expenses  associated  with an  evaluation  of the potential
termination  of the Servicer as a result of an event of default by such Servicer
under the related Servicing Agreement and (ii) all costs and expenses associated
with the complete  transfer of servicing,  including all servicing files and all
servicing data and the completion,  correction or manipulation of such servicing
data as may be  required  by the  successor  Servicer  to correct  any errors or
insufficiencies  in the  servicing  data or  otherwise  to enable the  successor
Servicer to service the Mortgage Loans in accordance with the related  Servicing
Agreement) are not fully and timely reimbursed by the terminated  Servicer,  the
Master  Servicer  (except  in the case of the  termination  of Wells  Fargo as a
Servicer) or the Trustee,  as applicable,  shall be entitled to reimbursement of
such costs and expenses from the Master  Servicer  Custodial  Account;  provided
that  if  such  servicing  transfer  costs  are  ultimately  reimbursed  by  the
terminated  Servicer,  then the Master  Servicer or the Trustee,  as applicable,
shall remit such amounts that are reimbursed by the  terminated  Servicer to the
Master Servicer Custodial Account.

     (d) The Master  Servicer  shall  require  each  Servicer to comply with the
remittance requirements and other obligations set forth in the related Servicing
Agreement.

     (e) If the Master Servicer acts as Servicer,  it will not assume  liability
for  the  representations  and  warranties  of the  Servicer,  if  any,  that it
replaces.

     (f) Subject to the conditions set forth in this Section 3.02(f), the Master
Servicer is permitted to utilize one or more  Subcontractors  to perform certain
of its  obligations  hereunder.  The Master Servicer shall promptly upon request

                                      -75-
<PAGE>
provide  to  the  Depositor  a  written   description  (in  form  and  substance
satisfactory  to the  Depositor) of the role and function of each  Subcontractor
utilized  by the  Master  Servicer,  specifying  (i) the  identity  of each such
Subcontractor that is a Servicing  Function  Participant and (ii) which elements
of the  Servicing  Criteria  will be  addressed  in  Assessments  of  Compliance
provided  by  each  Servicing  Function  Participant.  As  a  condition  to  the
utilization by the Master Servicer of any Servicing  Function  Participant,  the
Master  Servicer shall cause any such  Servicing  Function  Participant  for the
benefit of the  Depositor to comply with the  provisions of Section 3.21 of this
Agreement to the same extent as if such Servicing Function  Participant were the
Master  Servicer.  The Master  Servicer shall be responsible  for obtaining from
each such  Servicing  Function  Participant  and  delivering  to the  applicable
Persons any Assessment of Compliance and related  Attestation Report required to
be delivered by such Servicing Function  Participant under Section 3.21, in each
case as and when required to be delivered.

     Notwithstanding   the  foregoing,   if  the  Master   Servicer   engages  a
Subcontractor in connection with the performance of any of its duties under this
Agreement, the Master Servicer shall be responsible for determining whether such
Subcontractor is an Additional Servicer.

     The Master  Servicer  shall  indemnify  the  Depositor,  the  Sponsor,  the
Trustee,  the  Custodian  and the  Securities  Administrator  and  any of  their
directors,  officers, employees or agents and hold them harmless against any and
all claims,  losses,  damages,  penalties,  fines,  forfeitures,  reasonable and
necessary legal fees and related costs, judgments, and any other costs, fees and
expenses  that any of them may  sustain  in any way  related  to a breach of the
Master Servicer's obligation set forth in the preceding paragraph or the failure
of the Master  Servicer to perform  any of its  obligations  under this  Section
3.02(f), Section 3.20, Section 3.21 or Section 3.22.

     Section   3.03   Fidelity   Bond;    Errors   and   Omissions    Insurance.

     The Master Servicer shall maintain,  at its own expense, a blanket fidelity
bond and an errors and omissions  insurance  policy,  with broad coverage on all
officers,  employees  or  other  persons  involved  in  the  performance  of its
obligations as Master Servicer hereunder.  These policies must insure the Master
Servicer against losses resulting from dishonest or fraudulent acts committed by
the Master  Servicer's  personnel,  any  employees of outside firms that provide
data  processing  services  for the  Master  Servicer,  and  temporary  contract
employees or student  interns.  No provision of this Section 3.03 requiring such
fidelity bond and errors and omissions  insurance  shall diminish or relieve the
Master  Servicer from its duties and obligations as set forth in this Agreement.
The minimum  coverage under any such bond and insurance policy shall be at least
equal to the  corresponding  amounts  required  by Fannie  Mae in the Fannie Mae
Servicing  Guide or by Freddie  Mac in the  Freddie  Mac  Sellers' &  Servicers'
Guide,  as  amended  or  restated  from time to time,  or in an amount as may be
permitted to the Master Servicer by express waiver of Fannie Mae or Freddie Mac.
In the event that any such  policy or bond  ceases to be in  effect,  the Master
Servicer shall 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.

     Section 3.04 Access to Certain Documentation.

     The Master Servicer shall provide, and the Master Servicer shall cause each
Servicer to provide in accordance with the related Servicing  Agreement,  to the

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OCC,  the OTS, the FDIC and to  comparable  regulatory  authorities  supervising
Holders of Certificates and the examiners and supervisory agents of the OCC, the
OTS, the FDIC and such other authorities,  access to the documentation  required
by  applicable  regulations  of the  OCC,  the OTS,  the  FDIC  and  such  other
authorities  with respect to the Mortgage  Loans.  Such access shall be afforded
without  charge,  but only upon  reasonable and prior written request and during
normal  business hours at the offices  designated by the Master Servicer and the
related  Servicer.  In fulfilling  such request for access,  the Master Servicer
shall  not be  responsible  to  determine  the  sufficiency  of any  information
provided  by such  Servicer.  Nothing  in this  Section  3.04  shall  limit  the
obligation  of the Master  Servicer  and the  related  Servicer  to observe  any
applicable law and the failure of the Master Servicer or the related Servicer to
provide  access as provided in this Section 3.04 as a result of such  obligation
shall not constitute a breach of this Section 3.04.

     Section 3.05  Maintenance of Primary  Mortgage  Insurance  Policy;  Claims.

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

     (b) The Master  Servicer  agrees to present,  or to cause each Servicer (to
the extent required under the related Servicing Agreement) to present, on behalf
of the Trust,  the  Trustee  and the  Certificateholders,  claims to the insurer
under any Primary Mortgage  Insurance Policies and, in this regard, to take such
reasonable  action as shall be  necessary to permit  recovery  under any Primary
Mortgage Insurance  Policies  respecting  defaulted Mortgage Loans.  Pursuant to
Sections  3.08 and 3.09,  any amounts  collected  by the Master  Servicer or any
Servicer under any Primary Mortgage Insurance Policies shall be deposited in the
Master Servicer  Custodial  Account,  subject to withdrawal  pursuant to Section
3.11.

     Section 3.06 Rights of the Depositor,  the Securities Administrator and the
Trustee       in        Respect       of       the       Master        Servicer.

     The Depositor may, but is not obligated to, enforce the  obligations of the
Master Servicer hereunder and may, but is not obligated to, perform,  or cause a
designee to perform,  any defaulted  obligation of the Master Servicer hereunder
and in  connection  with any such  defaulted  obligation to exercise the related
rights of the Master Servicer hereunder; provided that the Master Servicer shall
not  be  relieved  of any  of  its  obligations  hereunder  by  virtue  of  such
performance   by  the  Depositor  or  its  designee.   None  of  the  Securities
Administrator,  the Trustee or the Depositor  shall have any  responsibility  or

                                      -77-
<PAGE>
liability  for any  action or  failure  to act by the  Master  Servicer  and the
Securities Administrator, the Trustee or the Depositor shall not be obligated to
supervise the performance of the Master Servicer hereunder or otherwise.

     Section 3.07 Trustee to Act as Master Servicer.

     (a) In the event the Master Servicer or any successor master servicer shall
for any reason no longer be the Master Servicer  hereunder  (including by reason
of an Event of Default),  the Trustee as trustee  hereunder shall within 90 days
of such time,  assume,  if it so elects,  or shall  appoint a  successor  Master
Servicer to assume,  all of the rights and  obligations  of the Master  Servicer
hereunder arising  thereafter.  Any such assumption shall be subject to Sections
7.02 and 8.05.

     (b) The predecessor  Master Servicer at its expense shall,  upon request of
the Trustee,  deliver to the assuming party all master  servicing  documents and
records and an accounting of amounts  collected or held by the Master  Servicer,
and shall  transfer  control of the Master  Servicer  Custodial  Account and any
investment accounts to the successor Master Servicer, and otherwise use its best
efforts to effect the orderly and efficient transfer of its rights and duties as
Master Servicer  hereunder to the assuming party.  The Trustee shall be entitled
to be  reimbursed  from the  predecessor  Master  Servicer  (or the Trust if the
predecessor  Master  Servicer  is unable to fulfill  such  obligations)  for all
Master Servicing Transfer Costs.

     Section   3.08   Servicer   Custodial   Accounts   and   Escrow   Accounts.

     (a) The Master  Servicer  shall enforce the  obligation of each Servicer to
establish  and  maintain a Servicer  Custodial  Account in  accordance  with the
applicable Servicing Agreement,  with records to be kept with respect thereto on
a loan by loan basis, into which accounts shall be deposited within 48 hours (or
as of such other time specified in the related  Servicing  Agreement) of receipt
all  collections  of  principal  and  interest  on any  Mortgage  Loan  and  all
collections with respect to any REO Property  received by a Servicer,  including
Principal Prepayments,  Insurance Proceeds, Liquidation Proceeds, Recoveries and
Advances made from the  Servicer's  own funds (less  servicing  compensation  as
permitted by the applicable Servicing Agreement in the case of any Servicer) and
all other amounts to be deposited in the Servicer Custodial Account.  The Master
Servicer  is hereby  authorized  to make  withdrawals  from and  deposits to the
related Servicer  Custodial  Account for purposes  required or permitted by this
Agreement.

     (b) The Master  Servicer shall also enforce the obligation of each Servicer
to establish and maintain a Buy-Down  Account in accordance  with the applicable
Servicing Agreement,  with records to be kept with respect thereto on a Mortgage
Loan by Mortgage  Loan basis,  into which  accounts any Buy-Down  Funds shall be
deposited  within 48 hours (or as of such other time  specified  in the  related
Servicing   Agreement)  of  receipt  thereof.  The  Master  Servicer  is  hereby
authorized to make withdrawals from and deposits to the related Buy-Down Account
for purposes  required or permitted by this Agreement.  In addition,  the Master
Servicer  shall  enforce the  obligation  of each  Servicer to withdraw from the
Buy-Down  Account and deposit in  immediately  available  funds in the  Servicer
Custodial Account an amount which, when added to such Mortgagor's payment,  will
equal the full monthly payment due under the related Mortgage Note.

                                      -78-
<PAGE>
     (c) To the extent  required by the related  Servicing  Agreement and by the
related  Mortgage  Note and not  violative of current  law, the Master  Servicer
shall  enforce the  obligation of each Servicer to establish and maintain one or
more escrow accounts (for each Servicer, collectively, the "Escrow Account") and
deposit and retain therein all  collections  from the Mortgagors (or Advances by
such 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 Servicer to establish an Escrow Account
in violation of applicable law.

     Section  3.09  Collection  of  Mortgage  Loan  Payments;   Master  Servicer
Custodial Account,  Certificate Account, Cap Carryover Reserve Account,  Reserve
Funds and Yield Maintenance Agreements.

     (a)  Continuously  from the date hereof until the principal and interest on
all  Mortgage  Loans are paid in full,  the Master  Servicer  shall  enforce the
obligations  of the  Servicers  to collect all  payments due under the terms and
provisions  of the Mortgage  Loans when the same shall become due and payable to
the extent such  procedures  shall be consistent  with the applicable  Servicing
Agreement.

     (b)  The  Securities   Administrator   shall  establish  and  maintain  the
Certificate Account,  which shall be deemed to consist of seven sub-accounts and
into which the Master  Servicer  will deposit on or prior to 11:00 a.m. New York
time,  on each  Distribution  Date (or, if the  Securities  Administrator  is no
longer the same Person as, or an Affiliate of, the Master Servicer, the Business
Day  preceding  each  Distribution  Date) all  amounts  on deposit in the Master
Servicer Custodial Account for distribution to Certificateholders.

     (c) The Master  Servicer shall  establish and maintain the Master  Servicer
Custodial Account, which shall be an Eligible Account and which may be deemed to
be a sub-account of the  Certificate  Account for so long as the Master Servicer
and the Securities Administrator are the same person. The Master Servicer shall,
promptly  upon receipt,  deposit in the Master  Servicer  Custodial  Account and
retain  therein any amounts  which are  required to be  deposited  in the Master
Servicer Custodial Account by the Master Servicer.

     (d) On a daily  basis  within one (1)  Business  Day of receipt  (except as
otherwise  specifically  provided herein),  the Master Servicer shall deposit or
cause to be deposited in the Master  Servicer  Custodial  Account the  following
payments and  collections  remitted to the Master Servicer by each Servicer from
its respective  Servicer  Custodial  Account  pursuant to the related  Servicing
Agreement  or  otherwise  or received  by the Master  Servicer in respect of the
related  Mortgage Loans subsequent to the Cut-off Date (other than in respect of
principal  and  interest  due on the  related  Mortgage  Loans on or before  the
Cut-off Date) and the following amounts required to be deposited hereunder:

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

          (ii) all  payments  on account of  interest  on the  related  Mortgage
     Loans, net of the related Servicing Fee;

                                      -79-
<PAGE>
          (iii) (A) all related  Insurance  Proceeds and  Liquidation  Proceeds,
     other than  Insurance  Proceeds  to be (1)  applied to the  restoration  or
     repair  of  the  Mortgaged  Property,  (2)  released  to the  Mortgagor  in
     accordance  with  Customary  Servicing  Procedures  or (3)  required  to be
     deposited  to an  Escrow  Account  pursuant  to  Section  3.08  and (B) any
     Insurance Proceeds released from an Escrow Account;

          (iv) in the case of the Master Servicer Custodial Account,  any amount
     required to be deposited by the Master Servicer pursuant to Section 3.09(e)
     in connection with any losses on Permitted  Investments with respect to the
     Master Servicer Custodial Account;

          (v) any amounts  relating to REO  Property  required to be remitted by
     the applicable Servicer;

          (vi) Periodic Advances made by the applicable Servicer pursuant to the
     related Servicing  Agreement (or, if applicable,  by the Master Servicer or
     the  Trustee  pursuant to Section  3.19 or the Trustee  pursuant to Section
     8.01)  and  any  Compensating  Interest  paid  by the  applicable  Servicer
     pursuant to the related Servicing Agreement;

          (vii) all related Purchase Prices, all related Substitution Adjustment
     Amounts and all related Reimbursement Amounts to the extent received by the
     Master Servicer;

          (viii) any related Recoveries;

          (ix) all  Prepayment  Charges  collected by Wells Fargo in  connection
     with the voluntary  Principal  Prepayment  in full of any related  Mortgage
     Loan;

          (x) any related  Buy-Down Funds  required to be deposited  pursuant to
     Section 3.08; and

          (xi) any other amounts required to be deposited hereunder.

If the Master Servicer shall deposit any amount not required to be deposited, it
may at any time withdraw such amount from the Master Servicer Custodial Account,
any provision herein to the contrary notwithstanding. All funds required  to  be
deposited in the Master Servicer Custodial Account shall be held by  the Master
Servicer in trust for the Certificateholders until disbursed in accordance with
this Agreement or withdrawn in accordance with Section 3.11.

     (e) Each  institution  at which the Master  Servicer  Custodial  Account is
maintained  shall invest the funds  therein as directed in writing by the Master
Servicer  in  Permitted  Investments,  which  shall  mature  not later  than the
Business Day next preceding the Distribution Date (except that if such Permitted
Investment is an obligation of the institution that maintains such account, then
such Permitted  Investment shall mature not later than such  Distribution  Date)
and, 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.  All  Master  Servicer  Custodial  Account
Reinvestment  Income shall be for the benefit of the Master  Servicer as part of
its master  servicing  compensation and shall be remitted to the Master Servicer
monthly as  provided  herein.  The amount of any losses  realized  in the Master

                                      -80-
<PAGE>
Servicer  Custodial  Account incurred in any such account in respect of any such
investments  shall  promptly be  deposited by the Master  Servicer  from its own
funds in the Master Servicer Custodial Account.

     (f) Each  institution at which the Certificate  Account is maintained shall
invest the funds therein if directed in writing by the Securities  Administrator
in Permitted  Investments that are obligations of the institution that maintains
the Certificate  Account,  which shall mature on the Distribution Date and 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.  All income and gains net of any losses  realized  since the
preceding   Distribution  Date  from  Permitted  Investments  of  funds  in  the
Certificate Account shall be for the benefit of the Securities  Administrator as
its  compensation  and the  amount of any  losses  realized  in the  Certificate
Account in respect of any such Permitted Investments shall promptly be deposited
by the Securities Administrator from its own funds to the Certificate Account.

     (g) The Master  Servicer shall give notice to the  Depositor,  the Trustee,
the Securities  Administrator  and the Rating Agencies of any proposed change of
location of the Master Servicer  Custodial  Account not later than 30 days after
and  not  more  that  45  days  prior  to any  change  thereof.  The  Securities
Administrator  shall  give  notice to the  Depositor,  the  Trustee,  the Master
Servicer and the Rating  Agencies of any proposed  change of the location of the
Certificate Account maintained by the Securities Administrator not later than 30
days after and not more than 45 days prior to any change  thereof.  The creation
of the Master Servicer  Custodial  Account and the Certificate  Account shall be
evidenced  by a  certification  substantially  in the form  attached  hereto  as
Exhibit F.

     (h) The Securities  Administrator shall designate each of the Lower-Tier II
Certificate Sub-Account, the Upper-Tier II Certificate Sub-Account, the Shifting
Interest Lower-Tier Certificate  Sub-Account,  the Shifting Interest Middle-Tier
Certificate   Sub-Account  and  the  Shifting  Interest  Upper-Tier  Certificate
Sub-Account as a sub-account of the Certificate Account.

          (i) On each Distribution Date (other than the Final Distribution Date,
     if such Final  Distribution  Date is in  connection  with a purchase of the
     assets of the Trust Estate by the Depositor),  the Securities Administrator
     shall (A) from funds  available on deposit in the Certificate  Account,  be
     deemed  to  deposit  into  the  Shifting  Interest  Lower-Tier  Certificate
     Sub-Account,  all funds deemed on deposit in the Loan Group 1  Sub-Account;
     (B) immediately thereafter, be deemed to deposit into the Shifting Interest
     Middle-Tier  Certificate  Sub-Account,  the  Shifting  Interest  Lower-Tier
     Distribution Amount; and (C) immediately  thereafter,  be deemed to deposit
     into the Shifting Interest Upper-Tier Certificate Sub-Account, the Shifting
     Interest Middle-Tier Distribution Amount.

          (ii) On each  Distribution  Date  (other  than the Final  Distribution
     Date, if such Final  Distribution  Date is in connection with a purchase of
     the  assets  of  the  Trust  Estate  by  the  Depositor),   the  Securities
     Administrator  shall (A) from funds available on deposit in the Certificate
     Account,   be  deemed  to  deposit  into  the   Lower-Tier  II  Certificate
     Sub-Account,  all funds deemed on deposit in Loan Group T2 Sub-Account  and
     (B)  immediately  thereafter,  be deemed to deposit into the  Upper-Tier II
     Certificate Sub-Account, the Lower-Tier II Distribution Amount.

                                      -81-
<PAGE>

          (i) No later than the Closing Date, the Securities Administrator shall
     establish  and  maintain  the  Cap  Carryover  Reserve  Account.   On  each
     Distribution  Date as to which there is a Cap Carryover  Amount  payable to
     the Offered Overcollateralized Certificates or the Class T2-B Certificates,
     the Securities  Administrator has been directed by the Holders of the Class
     CE  Certificates  to, and  therefore  will,  deposit into the Cap Carryover
     Reserve  Account the amounts  described in Section  5.03(c)(i)(HH),  rather
     than distributing such amounts to the Holders of the Class CE Certificates.

     For  federal  and state  income tax  purposes,  the Holders of the Class CE
Certificates  will be  deemed  to be the  owners  of the Cap  Carryover  Reserve
Account and all amounts  deposited into the Cap Carryover  Reserve Account shall
be treated as amounts distributed by the Upper-Tier II REMIC with respect to the
Class CE Upper-Tier  II Regular  Interest.  Upon a  termination  relating to the
Overcollateralized Certificates pursuant to Section 10.01 or the payment in full
of the Offered Overcollateralized  Certificates and the Class T2-B Certificates,
all amounts  remaining on deposit in the Cap Carryover  Reserve  Account will be
released  by the Trust  Estate and  distributed  to the  Holders of the Class CE
Certificates or their designees.  The Cap Carryover Reserve Account will be part
of the Trust Estate but not part of any REMIC created hereunder and any payments
to the Holders of the Offered Overcollateralized  Certificates or the Class T2-B
Certificates  of Cap  Carryover  Amounts will not be payments  with respect to a
"regular interest" in a REMIC within the meaning of Code Section 860G(a)(1). The
Cap Carryover Reserve Account is an "outside reserve fund" within the meaning of
Treasury Regulation Section 1.860G-2(h).

     By accepting a Class CE Certificate,  each Holder of a Class CE Certificate
hereby  agrees  to  direct  the  Securities  Administrator,  and the  Securities
Administrator  hereby is  directed,  to deposit into the Cap  Carryover  Reserve
Account the amounts  described above on each Distribution Date as to which there
is any Cap Carryover Amount rather than distributing such amounts to the Holders
of the Class CE Certificates.  By accepting a Class CE Certificate,  each Holder
of a Class CE  Certificate  further agrees that such direction is given for good
and valuable consideration, the receipt and sufficiency of which is acknowledged
by such acceptance.  Amounts held in the Cap Carryover  Reserve Account shall be
held uninvested.

     For federal tax return and information reporting, the value of the right of
the Holders of the Offered  Overcollateralized  Certificates  and the Class T2-B
Certificates  to receive  payments  from the Cap  Carryover  Reserve  Account in
respect of any Cap Carryover  Amount shall be assumed to have a value of zero as
of the Closing Date unless and until required  otherwise by an applicable taxing
authority.

     (j) (i) The Securities Administrator shall establish and maintain the Class
1-A-4 Reserve Fund and the  Overcollateralized  Reserve Fund,  held in trust for
the  benefit  of  the  Holders  of  the  Class   1-A-4   Certificates   and  the
Overcollateralized  Certificates,  respectively.  The  Securities  Administrator
shall  deposit in the  applicable  Reserve  Fund on the date  received by it the
related  Yield  Maintenance   Agreement  Payment,  if  any,  received  from  the
Counterparty for the related  Distribution Date. Funds on deposit in the Reserve
Funds  shall  remain  uninvested.  On each  Distribution  Date,  the  Securities
Administrator  shall  withdraw from the Class 1-A-4 Reserve Fund the Class 1-A-4
Yield  Maintenance  Agreement  Payment,  if any,  received  in  respect  of such
Distribution   Date  and  shall  distribute  such  amount  to  the  Class  1-A-4
Certificates.  On each  Distribution  Date, the Securities  Administrator  shall

                                      -82-
<PAGE>

withdraw from the Overcollateralized  Reserve Fund the Overcollateralized  Yield
Maintenance  Agreement Payment, if any, received in respect of such Distribution
Date and shall  distribute  such amount to the  Overcollateralized  Certificates
pursuant to the priorities set forth in Section 5.03(d).

        (ii) The Securities  Administrator and the Trustee shall account for the
     Reserve  Funds and the Yield  Maintenance  Agreements  and the rights  with
     respect  thereto as, for federal income tax purposes,  a "grantor trust" as
     described  in Subpart E of Part I of  Subchapter J of the Code and Treasury
     Regulation  ss.301.7701-4(c)(2)  and not as  assets  of any  REMIC  created
     pursuant to this Agreement.  The Securities Administrator shall apply for a
     taxpayer  identification number on IRS Form SS-4 and any similarly required
     state or local forms. The Securities  Administrator shall furnish or caused
     to be  furnished  to  the  Holders  of the  Class  1-A-4  Certificates  and
     Overcollateralized  Certificates  and  shall  file or cause to be filed IRS
     Form  1041  and  such  other  forms  as may be  required  by the  Code  and
     regulations promulgated thereunder and any similar state or local laws with
     respect to the allocable  shares of income and expenses with respect to the
     assets of the grantor  trust at the time and in the manner  required by the
     Code and regulations  promulgated thereunder and any similar state or local
     laws. The beneficial owners of the Class 1-A-4 Yield Maintenance  Agreement
     and the  Class  1-A-4  Reserve  Fund are the  Holders  of the  Class  1-A-4
     Certificates  and the  beneficial  owners of the  Overcollateralized  Yield
     Maintenance  Agreement  and the  Overcollateralized  Reserve  Fund  are the
     Holders of the Class CE Certificates.  Each of the Class 1-A-4 Reserve Fund
     and the Overcollateralized Reserve Fund is an "outside reserve fund" within
     the meaning of Treasury  Regulations  Section  1.860G-2(h) that is owned by
     the  holders of the Class  1-A-4  Certificates  and Class CE  Certificates,
     respectively.

          (iii)  Any  amounts  in the  Class  1-A-4  Reserve  Fund  paid  by the
     Securities  Administrator  pursuant  to this  Section  3.09(j) to the Class
     1-A-4  Certificates  and any amounts in the  Overcollateralization  Reserve
     Fund paid by the Securities  Administrator  pursuant to Section 5.03(d)(vi)
     and (vii) in respect  of Cap  Carryover  Amounts to the  Overcollateralized
     Certificates  shall be accounted  for by the  Securities  Administrator  as
     amounts  paid to the Class 1-A-4  Certificates  and the  Overcollateralized
     Certificates,  respectively,  from,  for  federal  income tax  purposes,  a
     grantor  trust as described  in Subpart E of Part I of  Subchapter J of the
     Code and Treasury Regulation  ss.301.7701-4(c)(2) unless required otherwise
     by  applicable  law  or an  applicable  taxing  authority.  The  Securities
     Administrator shall prepare or cause to be prepared, shall execute or cause
     to be  executed  by  such  Person  as is  required  by the  Code,  Treasury
     Regulations or state or local tax laws, regulations or rules and shall file
     or cause to be filed with the Internal Revenue Service and applicable state
     or local tax authorities, all of the tax returns in respect of such grantor
     trusts.  In addition,  the Securities  Administrator  shall account for the
     right of the Class 1-A-4  Certificates  to receive  amounts  from the Class
     1-A-4  Reserve  Fund as a right in a  limited  recourse  interest  rate cap
     contract   written  by  the  Counterparty  in  favor  of  the  Class  1-A-4
     Certificates.  The Securities  Administrator shall account for the right of
     the   Overcollateralized   Certificates   to  receive   amounts   from  the
     Overcollateralized  Reserve Fund in respect of Cap  Carryover  Amounts as a
     right in a limited  recourse  interest  rate cap  contract  written  by the
     Counterparty in favor of the Overcollateralized Certificates. Thus, for tax
     purposes,  each Class  1-A-4  Certificate  and  Offered  Overcollateralized
     Certificate and Class T2-B Certificate shall be treated as representing not

                                      -83-
<PAGE>
     only  ownership  of a "regular  interest"  in the related  REMIC within the
     meaning of Code Section 860G(a)(1),  but also ownership of an interest in a
     notional principal contract.

          (iv) For federal tax return and information  reporting  purposes,  the
     right of the Holders of the Class 1-A-4  Certificates  to receive  payments
     under  the  Class  1-A-4  Yield  Maintenance  Agreement  and the  right  of
     Overcollateralized  Certificates  (other  than  the  Class  CE and  Class P
     Certificates) to receive payments in respect of Cap Carryover  Amounts from
     amounts received under the  Overcollateralized  Yield Maintenance Agreement
     shall be assumed to have a value of zero as of the Closing  Date unless and
     until required otherwise by an applicable taxing authority.

     Section 3.10 Access to Certain  Documentation and Information Regarding the
Mortgage Loans.

     The Master  Servicer  shall afford and shall enforce the  obligation of the
Servicers  to afford the  Securities  Administrator  and the Trustee  reasonable
access to all records and  documentation  regarding  the Mortgage  Loans and all
accounts,  insurance  information 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 office  designated by the Master Servicer or
the applicable Servicer.

     Section 3.11 Permitted  Withdrawals  from the  Certificate  Account and the
Master Servicer Custodial Account.

     (a) The Securities  Administrator shall withdraw funds from the Certificate
Account for distributions to  Certificateholders in the manner specified in this
Agreement.  In  addition,  the  Master  Servicer  may  from  time to  time  make
withdrawals  from  the  Master  Servicer  Custodial  Account  for the  following
purposes:

          (i) to pay to the Servicers (to the extent not previously  retained by
     them),  the  Servicing  Fee to which  they  are  entitled  pursuant  to the
     Servicing  Agreements  and to pay  itself  any  Master  Servicer  Custodial
     Account Reinvestment Income;

          (ii)  to pay to the  Securities  Administrator  and  the  Trustee  any
     amounts due to the  Securities  Administrator  and the  Trustee  under this
     Agreement  (including,  but not limited to, all amounts  provided for under
     Section 3.02,  Section 3.07,  Section 8.05 and Section 9.11, other than the
     amounts provided for in the first sentence of Section 9.11);

          (iii) to reimburse the  Servicers  (or, if  applicable,  itself or the
     Trustee) for unreimbursed  Advances made pursuant to the related  Servicing
     Agreement  (or in the case of itself or the  Trustee,  pursuant  to Section
     3.19 or Section 8.01, as applicable),  such right of reimbursement pursuant
     to this  clause  (iii)  being  limited  first to  amounts  received  on the
     Mortgage  Loans  serviced by such  Servicer  in the  related  Loan Group in
     respect  of which any such  Advance  was made and then  limited  to amounts
     received  on all the  Mortgage  Loans  serviced  by such  Servicer  (or, if
     applicable,  the Master  Servicer  or the  Trustee) in respect of which any
     such Advance was made;

                                      -84-
<PAGE>
          (iv) to reimburse  the  Servicers  (or, if  applicable,  itself or the
     Trustee) for any  Nonrecoverable  Advance  previously  made,  such right of
     reimbursement  pursuant to this clause (iv) being  limited first to amounts
     received  on the  Mortgage  Loans in the same  Loan  Group as the  Mortgage
     Loan(s) in respect of which such  Nonrecoverable  Advance was made and then
     limited to amounts  received  on all the  Mortgage  Loans  serviced by such
     Servicer (of, if applicable, the Master Servicer or the Trustee);

          (v) to reimburse the  Servicers for Insured  Expenses from the related
     Insurance Proceeds;

          (vi) to pay to the  purchaser,  with respect to each  Mortgage Loan or
     REO Property that has been purchased  pursuant to Section 2.02 or 2.04, all
     amounts received thereon after the date of such purchase;

          (vii) to reimburse  itself or the Depositor  for expenses  incurred by
     either of them and reimbursable  pursuant to this Agreement,  including but
     not limited to, Section 3.02 and Section 7.03;

          (viii)  to  withdraw  any  amount  deposited  in the  Master  Servicer
     Custodial Account and not required to be deposited therein; and

          (ix) to clear and terminate the Master Servicer Custodial Account upon
     termination of this Agreement pursuant to Section 10.01.

If   the  Master  Servicer  shall  remit to  the  Securities  Administrator  any
amount  required  to be  remitted,  it may at any  time  direct  the  Securities
Administrator  to  withdraw  such  amount  from  the  Certificate  Account,  any
provision  herein  to  the  contrary  notwithstanding.  Such  direction  may  be
accomplished   by  delivering  an  Officer's   Certificate   to  the  Securities
Administrator  which  describes the amounts  remitted in error to the Securities
Administrator for deposit to the Certificate  Account.

     (b) On each Distribution Date, funds on deposit in the Certificate  Account
and deemed to be on  deposit in the  Shifting  Interest  Upper-Tier  Certificate
Sub-Account shall be used to make payments on the Shifting  Interest  Upper-Tier
Interests  as provided in  Sections  5.01 and 5.02,  and funds on deposit in the
Certificate Account and deemed to be on deposit in the Upper-Tier II Certificate
Sub-Account  shall be used to make  payments on the  Upper-Tier  II Interests as
provided in Sections 5.01 and 5.03. The Certificate Account shall be cleared and
terminated upon termination of this Agreement pursuant to Section 10.01.

     Section 3.12 Maintenance of Hazard Insurance and Other Insurance.

     (a)  For  each  Mortgage  Loan,  the  Master  Servicer  shall  enforce  any
obligation of the Servicers under the related  Servicing  Agreements to maintain
or cause to be  maintained  fire,  flood  and  hazard  insurance  with  extended
coverage  customary  in the area  where the  Mortgaged  Property  is  located in
accordance with the related  Servicing  Agreements.  It is understood and agreed
that such  insurance  provided for in this  Section 3.12 shall be with  insurers
meeting  the  eligibility  requirements  set forth in the  applicable  Servicing
Agreement and that no earthquake or other additional insurance is to be required

                                      -85-
<PAGE>
of any  Mortgagor  or to be  maintained  on  property  acquired  in respect of a
defaulted  loan,  other than pursuant to such applicable laws and regulations as
shall at any time be in force and as shall require such additional insurance.

     (b) Pursuant to Sections 3.08 and 3.09, any amounts collected by the Master
Servicer,  or by any Servicer,  under any insurance policies (other than amounts
to be  applied  to the  restoration  or repair of the  property  subject  to the
related  Mortgage or released to the Mortgagor in accordance with the applicable
Servicing  Agreement)  shall be  deposited  into the Master  Servicer  Custodial
Account,  subject to  withdrawal  pursuant to Sections  3.09 and 3.11.  Any cost
incurred  by the  Master  Servicer  or any  Servicer  in  maintaining  any  such
insurance if the Mortgagor defaults in its obligation to do so shall be added to
the amount owing under the Mortgage Loan where the terms of the Mortgage Loan so
permit; provided, however, that the addition of any such cost shall not be taken
into  account  for  purposes  of  calculating  the  distributions  to be made to
Certificateholders  and shall be  recoverable  by the  Master  Servicer  or such
Servicer pursuant to Sections 3.08 and 3.09.

     Section   3.13   Presentment   of  Claims  and   Collection   of  Proceeds.

     The  Master  Servicer  shall  (to the  extent  provided  in the  applicable
Servicing  Agreement)  cause the  related  Servicer  to,  prepare and present on
behalf of the Trust and the  Certificateholders  all claims under the  Insurance
Policies  and  take  such  actions   (including  the  negotiation,   settlement,
compromise  or  enforcement  of the  insured's  claim) as shall be  necessary to
realize  recovery  under such  policies.  Any  proceeds  disbursed to the Master
Servicer (or  disbursed  to a Servicer  and remitted to the Master  Servicer) in
respect of such policies,  bonds or contracts shall be promptly deposited in the
Master Servicer Custodial Account upon receipt, except that any amounts realized
that are to be applied to the repair or  restoration  of the  related  Mortgaged
Property as a condition  precedent to the  presentation of claims on the related
Mortgage Loan to the insurer under any applicable  Insurance  Policy need not be
so deposited (or remitted).

     Section 3.14  Enforcement of Due-On-Sale  Clauses;  Assumption  Agreements.

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

     Section 3.15  Realization  Upon  Defaulted  Mortgage  Loans;  REO Property.

     (a) The Master  Servicer shall cause each Servicer (to the extent  required
under the related Servicing Agreement) to foreclose upon or otherwise comparably
convert the  ownership of  Mortgaged  Properties  securing  such of the Mortgage
Loans as come  into and  continue  in  default  and as to which no  satisfactory
arrangements  can  be  made  for  collection  of  delinquent  payments,  all  in
accordance with the applicable Servicing Agreement.

                                      -86-
<PAGE>
     (b) With respect to any REO Property, the deed or certificate of sale shall
be taken in the name of the Trust for the benefit of the Certificateholders,  or
its nominee,  on behalf of the  Certificateholders.  The Master  Servicer  shall
enforce  the  obligation  of  the  Servicers,  to  the  extent  provided  in the
applicable Servicing Agreement,  to (i) cause the name of the Trust to be placed
on the title to such REO  Property  and (ii)  ensure  that the title to such REO
Property  references  this  Agreement.  The Master Servicer shall, to the extent
provided in the applicable Servicing Agreement, cause the applicable Servicer to
sell any REO Property as  expeditiously  as possible and in accordance  with the
provisions of this Agreement and the related Servicing Agreement, as applicable.
Pursuant to its efforts to sell such REO  Property,  the Master  Servicer  shall
cause the  applicable  Servicer to protect and conserve such REO Property in the
manner and to the extent required by the applicable Servicing Agreement, subject
to the  REMIC  Provisions.  In the  event  that the Trust  Estate  acquires  any
Mortgaged  Property as aforesaid or  otherwise in  connection  with a default or
imminent  default on a Mortgage  Loan,  the Master  Servicer  shall  enforce the
obligation of the related Servicer to dispose of such Mortgaged  Property within
the time period  specified in the  applicable  Servicing  Agreement,  but in any
event  within  three years after the  acquisition  by the Servicer for the Trust
(such period, the "REO Disposition  Period") unless (i) the Servicer provides to
the Trustee, the Master Servicer and the Securities  Administrator an Opinion of
Counsel to the effect that the holding by the Trust of such  Mortgaged  Property
subsequent  to  three  years  after  its  acquisition  will  not  result  in the
imposition  of taxes on  "prohibited  transactions"  of the Trust as  defined in
Section  860F of the Code or under the law of any state in which  real  property
securing  a  Mortgage  Loan  owned by the  Trust is  located  or cause any REMIC
created  hereunder to fail to qualify as a REMIC for federal income tax purposes
or for state tax  purposes  under the laws of any state in which  real  property
securing  a  Mortgage  Loan  owned by the Trust is  located at any time that any
Certificates  are  outstanding  or (ii) the Servicer  shall have applied for and
received an extension of such period from the Internal Revenue Service, in which
case the Trust  Estate may  continue  to hold such  Mortgaged  Property  for the
period of such extension.

     (c) The Master  Servicer  shall,  to the  extent  required  by the  related
Servicing  Agreement,  cause  the  applicable  Servicer  to  deposit  all  funds
collected and received in  connection  with the operation of any REO Property in
the Servicer Custodial Account.

     (d)  The  applicable  Servicer,  upon  the  final  disposition  of any  REO
Property,  shall be  entitled  to  reimbursement  for any  related  unreimbursed
Advances and other  unreimbursed  advances as well as any unpaid  Servicing Fees
from Liquidation  Proceeds  received in connection with the final disposition of
such REO Property;  provided that any such unreimbursed  Advances as well as any
unpaid  Servicing  Fees may be  reimbursed or paid, as the case may be, prior to
final  disposition,  out of any net rental  income or other net amounts  derived
from such REO Property.

     (e)  The  Liquidation  Proceeds  from  the  final  disposition  of the  REO
Property,  net of any payment to the applicable Servicer as provided above shall
be  deposited  in the  related  Servicer  Custodial  Account  on or prior to the
Determination  Date in the month  following  receipt  thereof and be remitted by
wire transfer in immediately  available funds to the Master Servicer for deposit
into the Master Servicer Custodial Account.

                                      -87-
<PAGE>

     Notwithstanding any other provision of this Agreement,  the Master Servicer
shall not permit any Mortgaged  Property  acquired by the Trust to be rented (or
allowed to continue to be rented) or otherwise used for the production of income
by or on  behalf of the Trust 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, (ii) result in
the receipt by any REMIC  created  hereunder of any "income  from  non-permitted
assets"  within the  meaning of  Section  860F(a)(2)(B)  of the Code or any "net
income from  foreclosure  property" which is subject to taxation under the REMIC
Provisions or (iii) subject any REMIC created hereunder 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 or related  Servicer,  as applicable,  has agreed to indemnify and hold
harmless the Trust with respect to the imposition of any such taxes.

     Notwithstanding any other provision of this Agreement,  the Master Servicer
and the Securities Administrator,  as applicable,  shall comply with all federal
withholding  requirements  with  respect to  payments to  Certificateholders  of
interest or original issue  discount that the Master  Servicer or the Securities
Administrator  reasonably believes are applicable under the Code. The consent of
Certificateholders  shall  not be  required  for any such  withholding.  Without
limiting the  foregoing,  the Securities  Administrator  agrees that it will not
withhold with respect to payments of interest or original  issue discount in the
case of a  Certificateholder  that has  furnished  or caused to be  furnished an
effective Form W-8 or an acceptable  substitute form or a successor form and who
is  not  a  "10  percent   shareholder"  within  the  meaning  of  Code  Section
871(h)(3)(B)  or a "controlled  foreign  corporation"  described in Code Section
881(c)(3)(C)  with  respect  to the  Trust or the  Depositor.  In the  event the
Securities  Administrator  withholds any amount from interest or original  issue
discount  payments  or  advances  thereof to any  Certificateholder  pursuant to
federal withholding  requirements,  the Securities  Administrator shall indicate
the amount withheld to such Certificateholder.

     Section   3.16   Trustee  to   Cooperate;   Release  of   Mortgage   Files.

     Upon the payment in full of any Mortgage Loan, or the receipt by the Master
Servicer or the related Servicer of a notification  that payment in full will be
escrowed in a manner  customary for such  purposes,  the Master  Servicer or the
related  Servicer will  immediately  notify the Trustee (or, at the direction of
the Trustee, a Custodian) by delivering,  or causing to be delivered, two copies
(one of which will be returned to the related  Servicer with the Mortgage  File)
of a Request  for  Release  (which  may be  delivered  in an  electronic  format
acceptable to the Trustee and the Master Servicer or the related Servicer). Upon
receipt of such request, the Trustee or a Custodian, as applicable, shall within
seven (7) Business Days release the related Mortgage File to the Master Servicer
or the related  Servicer.  The  Trustee  shall at the Master  Servicer's  or the
related  Servicer's  direction execute and deliver to the Master Servicer or the
related Servicer the request for  reconveyance,  deed of reconveyance or release
or  satisfaction  of  mortgage  or such  instrument  releasing  the  lien of the
Mortgage  relating to the  Mortgage  Loan,  in each case  provided by the Master
Servicer or the related  Servicer,  together with the Mortgage Note with written
evidence of cancellation  thereon. If the Mortgage has been recorded in the name
of MERS or its  designee,  the Master  Servicer  shall  enforce  the  applicable
Servicer's  obligation under the related Servicing  Agreement take all necessary

                                      -88-
<PAGE>
action to reflect the release of the  Mortgage on the records of MERS.  Expenses
incurred  in  connection   with  any  instrument  of  satisfaction  or  deed  of
reconveyance shall be chargeable to the related Mortgagor of the Mortgage Loan.

     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  Primary  Mortgage  Insurance  Policy,  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 Trustee or a Custodian,  as
applicable,  shall,  upon  delivery to the Trustee (or, at the  direction of the
Trustee,  a  Custodian)  of a Request for Release  signed by a Master  Servicing
Officer or a Servicing  Officer,  release  the  Mortgage  File within  seven (7)
Business  Days to the Master  Servicer or the related  Servicer.  Subject to the
further  limitations  set forth  below,  the Master  Servicer or the  applicable
Servicer  shall  cause the  Mortgage  Files so  released  to be  returned to the
Trustee or a Custodian, as applicable,  when the need therefor no longer exists,
unless the Mortgage Loan is liquidated and the proceeds thereof are deposited in
the  related  Servicer  Custodial  Account,  in which case such  Servicer  shall
deliver to the Trustee or a  Custodian,  as  applicable,  a Request for Release,
signed by a Servicing Officer.

     If the  Master  Servicer  or any  related  Servicer  at any  time  seeks to
initiate  a  foreclosure  proceeding  in respect of any  Mortgaged  Property  as
authorized by this Agreement or the Servicing Agreement,  the Master Servicer or
any related 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.

     Section  3.17  Documents,  Records  and Funds in  Possession  of the Master
Servicer to be Held for the Trustee.

     Notwithstanding any other provisions of this Agreement, the Master Servicer
shall cause each  Servicer to transmit to the Trustee (or a Custodian  on behalf
of the Trustee) as required by this  Agreement and the Servicing  Agreements all
documents  and  instruments  in  respect  of a  Mortgage  Loan  coming  into the
possession  of the  Servicer  from time to time and shall  account  fully to the
Trustee for any funds received by the Master Servicer or the related Servicer or
which otherwise are collected by the Master Servicer or the related  Servicer as
Liquidation  Proceeds,  Recoveries  or  Insurance  Proceeds  in  respect  of any
Mortgage Loan.  All Mortgage Files and funds  collected or held by, or under the
control  of, the  Master  Servicer  or the  related  Servicer  in respect of any
Mortgage Loans,  whether from the collection of principal and interest  payments
or from Liquidation Proceeds, including but not limited to, any funds on deposit
in the Master  Servicer  Custodial  Account or any Servicer  Custodial  Account,
shall be held by the Master  Servicer or the related  Servicer for and on behalf
of the  Trustee and shall be and remain the sole and  exclusive  property of the
Trustee on behalf of the Trust,  subject to the  applicable  provisions  of this
Agreement and the related Servicing  Agreement.  The Master Servicer also agrees
that it shall not, and shall enforce any requirement under the related Servicing
Agreement  that the  related  Servicer  shall not,  knowingly  create,  incur or
subject any Mortgage File or any funds that are deposited in any Master Servicer
Custodial Account,  any Servicer Custodial Account,  the Certificate  Account or
any Escrow Account, or any funds that otherwise are or may become due or payable

                                      -89-
<PAGE>
to the Trustee for the benefit of the  Certificateholders,  to any claim,  lien,
security  interest,  judgment,  levy,  writ of attachment  or other  encumbrance
created  by the  Master  Servicer  or  Servicer,  or assert  by legal  action or
otherwise  any claim or right of setoff  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 3.18 Master Servicer Compensation.

     As compensation  for its services  hereunder,  the Master Servicer shall be
entitled to additional compensation in the form of the Master Servicer Custodial
Account  Reinvestment  Income.  The Master Servicer shall be required to pay all
expenses  incurred  by it in  connection  with its master  servicing  activities
hereunder  and  shall  not be  entitled  to  reimbursement  therefor  except  as
specifically provided in this Agreement.

     Section 3.19 Advances.

     The Master  Servicer shall enforce the obligations of each Servicer to make
a Periodic  Advance in accordance  with the applicable  Servicing  Agreement.  A
Servicer  shall  be  entitled  to be  reimbursed  from the  applicable  Servicer
Custodial Account for all Advances of its own funds made pursuant to the related
Servicing  Agreement.  Based upon information set forth in the servicer reports,
the Master Servicer shall inform the Securities  Administrator  of the amount of
the  Periodic  Advance  to be made by a  Servicer  no  later  than  the  related
Remittance  Date.  If a Servicer  fails to make any  required  Periodic  Advance
pursuant to the  related  Servicing  Agreement,  the Master  Servicer  shall (i)
unless the Master Servicer  determines  that such Periodic  Advance would not be
recoverable in its good faith business judgment,  make such Periodic Advance not
later than the Business Day preceding the related  Distribution Date and (ii) to
the extent such failure leads to the  termination of the Servicer and until such
time as a successor  Servicer is appointed,  continue to make Periodic  Advances
required pursuant to the related Servicing  Agreement for any Distribution Date,
within the same time frame set forth in (i)  above,  unless the Master  Servicer
determines (to the extent provided in the related Servicing Agreement) that such
Periodic  Advance would not be recoverable.  If the Master Servicer is unable to
make a  Periodic  Advance  required  to be made by it in  accordance  with  this
Section 3.19, the Master Servicer shall immediately,  and in no event later than
5:00  P.M.  New  York  time on the  last  Business  Day  preceding  the  related
Distribution  Date,  give written notice thereof to the Trustee,  the Securities
Administrator and the Depositor.

     Section 3.20 Annual Statement as to Compliance.

     (a) Each of the Master  Servicer  and the  Securities  Administrator  shall
deliver,  and shall cause any Additional  Servicer engaged by it to deliver,  or
otherwise make available to the Depositor and the Securities  Administrator (and
the Securities  Administrator will make available to the Trustee and each Rating
Agency),  no later than March 15th of each calendar  year  beginning in 2007, an

                                      -90-
<PAGE>
Officer's Certificate (each, together with such similar certificate delivered by
each Servicer as described in Section 3.20(b), a "Compliance Statement"), signed
by an officer of such  party,  stating,  as to the  signer  thereof,  that (a) a
review of the  activities  of such party during the  preceding  calendar year or
portion  thereof and of  performance  of such party under this Agreement or such
applicable  agreement in case of an Additional Servicer has been made under such
officers' supervision and (b) to the best of such officer's knowledge,  based on
such  review,  such  party  has  fulfilled  all of its  obligations  under  this
Agreement or such applicable  agreement in case of an Additional Servicer 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. Such Compliance
Statements  shall  contain no  restrictions  or  limitations  on their use.  The
obligations of the Master Servicer and the Securities  Administrator  under this
Section  apply to each  entity  that  acted as  Master  Servicer  or  Securities
Administrator,  as applicable, during the applicable period, whether or not such
entity is acting as Master Servicer or Securities Administrator at the time such
Compliance Statement is required to be delivered.

     (b) In the event the Master  Servicer or the  Securities  Administrator  is
terminated or resigns pursuant to the terms of this Agreement,  such party shall
provide,  and shall use its reasonable efforts to cause any Additional  Servicer
that  resigns or is  terminated  under any  applicable  servicing  agreement  to
provide,  a Compliance  Statement  pursuant to this Section 3.20 with respect to
the period of time that the Master Servicer or the Securities  Administrator was
subject  to  this  Agreement  or such  applicable  agreement  in the  case of an
Additional  Servicer  or the  period of time that the  Additional  Servicer  was
subject to such other servicing agreement. The Master Servicer shall enforce any
obligation of each  Servicer,  to the extent set forth in the related  Servicing
Agreement,  to deliver to the Master Servicer a Compliance  Statement within the
time  frame set forth in,  and in such  form and  substance  as may be  required
pursuant to, the related Servicing Agreement.  The Master Servicer shall include
such Compliance Statements of the Servicers with its own Compliance Statement to
be submitted pursuant to this Section 3.20.

     Section  3.21   Assessments   of  Compliance   and   Attestation   Reports.

     (a) Each of the  Master  Servicer,  the  Securities  Administrator  and the
Custodian,  each at its  own  expense,  shall  deliver,  and  shall  cause  each
Servicing  Function  Participant  engaged by it to deliver,  or  otherwise  make
available to the Depositor and the Securities  Administrator  on or before March
15th of each calendar year  beginning in 2007, a report  regarding  such party's
assessment of compliance with the Relevant  Servicing  Criteria (each,  together
with such  similar  report  delivered  by each  Servicer as described in Section
3.21(c),  an "Assessment of  Compliance")  that contains (i) a statement by such
party of its responsibility for assessing compliance with the Relevant Servicing
Criteria,  (ii) a statement that such party used the Relevant Servicing Criteria
to assess compliance with the Relevant  Servicing  Criteria,  (iii) such party's
assessment of compliance with the Relevant  Servicing Criteria as of and for the
fiscal year  covered by the Form 10-K  required to be filed  pursuant to Section
3.22(c),  including,  if there has been any material  instance of  noncompliance
with the Relevant Servicing Criteria,  a discussion of each such failure and the
nature  and  status  thereof  and  (iv) a  statement  that a  registered  public
accounting firm has issued an attestation  report on such party's  assessment of
compliance with the Relevant Servicing Criteria as of and for such period.

     No later than February 1 of each fiscal year for the Trust for which a 10-K
is required to be filed, the Master Servicer,  the Securities  Administrator and

                                      -91-
<PAGE>
the  Custodian   shall  each  forward  to  the  Depositor  and  the   Securities
Administrator the name of each Servicing Function  Participant engaged by it and
what Relevant  Servicing  Criteria will be addressed in the report on assessment
of compliance prepared by such Servicing Function  Participant.  When the Master
Servicer,  the  Securities  Administrator  and the  Custodian  (or any Servicing
Function  Participant engaged by them) submit their assessments to the Depositor
and the  Securities  Administrator,  such parties will also at such time include
the assessment (and  attestation  pursuant to Section 3.21(b)) of each Servicing
Function Participant engaged by it.

     Promptly after receipt of such  Assessments  of Compliance,  the Securities
Administrator   shall  confirm  that  the   Assessments  of  Compliance,   taken
individually address the Relevant Servicing Criteria for each party as set forth
on Exhibit N and on any similar exhibit set forth in each Servicing Agreement in
respect of each  Servicer and notify the  Depositor of any  exceptions.  None of
such parties  shall be required to deliver any such  Assessments  of  Compliance
until April 15 in any given year so long as it has received written confirmation
from the  Depositor  that a Form 10-K is not  required to be filed in respect of
the Trust for the  preceding  calendar  year.  The  Custodian  and any Servicing
Function Participant engaged by it shall not be required to deliver or cause the
delivery of such  Assessments  of Compliance in any given year so long as it has
received  written  confirmation  from  the  Depositor  that a Form  10-K  is not
required to be filed in respect of the Trust for the preceding fiscal year.

     (b) Each of the  Master  Servicer,  the  Securities  Administrator  and the
Custodian,  each at its own expense, shall cause, and shall cause each Servicing
Function  Participant  engaged by it to cause,  on or before  March 15th of each
calendar year beginning in 2007, a registered  public accounting firm (which may
also render other services to the Master Servicer, the Securities Administrator,
the Custodian or such other Servicing Function Participants, as the case may be)
and that is a member of the American  Institute of Certified Public  Accountants
to furnish a report (each,  together with such similar report  delivered by each
Servicer  as  described  in Section  3.21(c),  an  "Attestation  Report") to the
Securities  Administrator  and the  Depositor,  to the  effect  that  (i) it has
obtained a representation  regarding certain matters from the management of such
party,  which  includes  an  assertion  that such  party has  complied  with the
Relevant Servicing Criteria,  and (ii) on the basis of an examination  conducted
by such firm in accordance with standards for attestation  engagements issued or
adopted by the Public Company  Accounting  Oversight  Board, it is expressing an
opinion  as to whether  such  party's  compliance  with the  Relevant  Servicing
Criteria was fairly  stated in all material  respects,  or it cannot  express an
overall  opinion  regarding  such  party's  assessment  of  compliance  with the
Relevant  Servicing  Criteria.  In the event that an overall  opinion  cannot be
expressed,   such  registered   public  accounting  firm  shall  state  in  such
Attestation  Report  why it was  unable to express  such an  opinion.  Each such
related Attestation Report shall be made in accordance with Rules 1-02(a)(3) and
2-02(g) of the  Commission's  Regulation S-X. Such  Attestation  Reports must be
available for general use and not contain restricted use language.  If requested
by the  Depositor,  such report shall contain or be  accompanied by a consent of
such  accounting  firm to  inclusion  or  incorporation  of such  report  in the
Depositor's   registration  statement  on  Form  S-3  relating  to  the  Offered
Certificates and the Form 10-K for the Trust.

     Promptly  after  receipt  of  such  Attestation   Reports,  the  Securities
Administrator shall confirm that each Assessment of Compliance is coupled with a
related  Attestation  Report and shall notify the  Depositor of any  exceptions.

                                      -92-
<PAGE>
None of the Master  Servicer,  the  Securities  Administrator  or any  Servicing
Function  Participant  engaged by such  parties  shall be required to deliver or
cause the delivery of such Attestation  Reports until April 15 in any given year
so long as it has received written  confirmation  from the Depositor that a Form
10-K is not  required  to be filed in  respect  of the Trust  for the  preceding
fiscal year. The Custodian and any Servicing Function  Participant engaged by it
shall not be  required  to deliver  or cause the  delivery  of such  Attestation
Report in any given year so long as it has received  written  confirmation  from
the  Depositor  that a Form 10-K is not  required  to be filed in respect of the
Trust for the preceding fiscal year.

     (c) The Master  Servicer shall enforce any obligation of each Servicer,  to
the  extent  set forth in the  related  Servicing  Agreement,  to deliver to the
Master  Servicer an  Assessment  of Compliance  and related  Attestation  Report
within  the time frame set forth in,  and in such form and  substance  as may be
required pursuant to, the related Servicing Agreement. The Master Servicer shall
include such Assessments of Compliance and Attestation  Reports of the Servicers
with its own  Assessment  of  Compliance  and related  Attestation  Report to be
submitted pursuant to this Section 3.21.

     (d) In the event the  Master  Servicer,  the  Custodian  or the  Securities
Administrator  is terminated or resigns pursuant to the terms of this Agreement,
such party shall provide, and each such party shall cause any Servicing Function
Participant  engaged by it to provide,  an Assessment of Compliance  pursuant to
this  Section  3.21,  coupled  with an  Attestation  Report as  required in this
Section 3.21 with respect to the period of time that the Master  Servicer or the
Securities Administrator was subject to this Agreement.

     Section 3.22 Reports to the Commission.

     (a) The Securities  Administrator  and the Master Servicer shall reasonably
cooperate  with the  Depositor in  connection  with the Trust's  satisfying  its
reporting  requirements  under the Exchange Act. Without limiting the generality
of the foregoing,  the Securities Administrator shall prepare and file on behalf
of the Trust any Form 8-K,  Form 10-D and Form 10-K required by the Exchange Act
and the rules and  regulations  of the  Commission  thereunder,  and the  Master
Servicer  shall  sign such  Forms on behalf of the  Trust.  Notwithstanding  the
previous sentence,  the Depositor shall file the Form 8-K in connection with the
filing of this Agreement.

     (b) Within 15 days after  each  Distribution  Date  (subject  to  permitted
extensions under the Exchange Act), the Securities  Administrator  shall prepare
and file on behalf of the Trust any Form 10-D  required by the Exchange  Act, in
form and substance as required by the Exchange Act. The Securities Administrator
shall  file  each  Form  10-D  with a copy of the  Monthly  Statement  for  such
Distribution  Date attached  thereto.  Any disclosure in addition to the Monthly
Statement  for such  Distribution  Date that is  required to be included on Form
10-D ("Additional  Form 10-D  Disclosure")  shall be reported by the parties set
forth on Exhibit O hereto to the Depositor and the Securities  Administrator and
directed and approved by the Depositor pursuant to the following paragraph,  and
the  Securities  Administrator  will have no duty or  liability  for any failure
hereunder to determine or prepare any Additional Form 10-D Disclosure, except as
set forth in this Section 3.22(b).

                                      -93-
<PAGE>
     As set forth on Exhibit O hereto,  within 5 calendar days after the related
Distribution  Date, (i) the parties  described on Exhibit O shall be required to
provide to the Securities Administrator (at cts.sec.notifications@wellsfargo.com
with a copy by facsimile to 410-715-2380) and the Depositor, to the extent known
by a responsible officer thereof,  in EDGAR-compatible  format, or in such other
format as otherwise agreed upon by the Securities  Administrator and such party,
any Additional Form 10-D Disclosure, if applicable,  together with an Additional
Disclosure  Notification  in the form of Exhibit S and (ii) the Depositor  shall
approve,  as to form and  substance,  or  disapprove,  as the  case may be,  the
inclusion of the  Additional  Form 10-D  Disclosure on Form 10-D. The Securities
Administrator  shall compile all such information  provided to it in a Form 10-D
prepared by it. The Securities Administrator has no duty under this Agreement to
monitor or enforce the  performance  by the parties listed on Exhibit O of their
duties under this paragraph or proactively  solicit or procure from such parties
any  Additional  Form  10-D  Disclosure  information.   The  Depositor  will  be
responsible  for any  reasonable  fees and expenses  assessed or incurred by the
Securities  Administrator  in connection with including any Additional Form 10-D
Disclosure on Form 10-D pursuant to this paragraph.

     After  preparing the Form 10-D, the Securities  Administrator  shall,  upon
request,  forward  electronically a copy of the Form 10-D to the Master Servicer
for review and, only if Additional  Form 10-D  Disclosure is contained  therein,
the Securities  Administrator  shall forward such Form 10-D to the Depositor for
review.  Within 2 Business Days after receipt of such copy, the Depositor  shall
notify  the  Securities   Administrator  in  writing  (which  may  be  furnished
electronically)  of any changes to or approval of such Form 10-D. In the absence
of any  written  changes or  approval,  the  Securities  Administrator  shall be
entitled  to assume  that such  Form  10-D is in final  form and the  Securities
Administrator may proceed with the execution and filing of the Form 10-D. A duly
authorized  officer of the Master  Servicer shall sign each Form 10-D. If a Form
10-D  cannot be filed on time or if a  previously  filed  Form 10-D  needs to be
amended,  the Securities  Administrator  will follow the procedures set forth in
Section 3.22(h)(ii).  Form 10-D requires the registrant to indicate (by checking
"yes" or "no")  that it "(1)  has  filed  all  reports  required  to be filed by
Section 13 or 15(d) of the Exchange  Act during the  preceding 12 months (or for
such shorter period that the registrant was required to file such reports),  and
(2) has been  subject  to such  filing  requirements  for the past 90 days." The
Depositor hereby represents to the Securities  Administrator  that the Depositor
has filed all such required  reports  during the preceding 12 months and that is
has been subject to such filing  requirement for the past 90 days. The Depositor
shall notify the Securities  Administrator  in writing,  no later than the fifth
calendar day after the related Distribution Date with respect to the filing of a
report  on Form  10-D,  if the  answer to  either  question  should be "no." The
Securities  Administrator  shall be entitled to rely on such  representations in
preparing,  executing and/or filing any such report. Promptly (but no later than
1 Business Day) after filing with the Commission,  the Securities  Administrator
will make  available on its internet  website a final executed copy of each Form
10-D prepared and filed by the  Securities  Administrator.  The signing party at
the Master Servicer can be contacted at the address  specified in Section 11.05.
Each party to this  Agreement  acknowledges  that the  performance by the Master
Servicer and Securities  Administrator  of its duties under this Section 3.22(b)
related to the timely preparation,  arrangement for execution and filing of Form
10-D is contingent upon such parties strictly observing all applicable deadlines
in the  performance  of  their  duties  under  this  Section  3.22(b)  and  also
contingent  upon  the  Servicers,  the  Custodian  and  any  Servicing  Function
Participant  strictly observing  deadlines no later than those set forth in this
paragraph  that are  applicable to the parties to this Agreement in the delivery

                                      -94-
<PAGE>
to the Securities Administrator of any necessary Additional Form 10-D Disclosure
pursuant to the related  Servicing  Agreements,  any custodial  agreement or any
other  applicable  agreement.  Neither the Master  Servicer  nor the  Securities
Administrator  shall have any liability  for any loss,  expense,  damage,  claim
arising out of or with respect to any failure to properly  prepare,  arrange for
execution and/or timely file such Form 10-D, where such failure results from the
Master  Servicer's  or the  Securities  Administrator's  inability or failure to
receive,  on a timely basis,  any information from any other party hereto or any
Servicer, Custodian or Servicing Function Participant needed to prepare, arrange
for execution or file such Form 10-D, not resulting from its own negligence, bad
faith or willful misconduct.

     (c) On or prior to the 90th day  after the end of each  fiscal  year of the
Trust or such  earlier  date as may be required by the  Exchange  Act (the "10-K
Filing  Deadline") (it being  understood that the fiscal year for the Trust ends
on  December  31st of each  year),  commencing  in March  2007,  the  Securities
Administrator shall prepare and file on behalf of the Trust a Form 10-K, in form
and substance as required by the Exchange Act. Each such Form 10-K shall include
the following  items, in each case to the extent they have been delivered to the
Securities  Administrator  within the  applicable  time frames set forth in this
Agreement and the related Servicing Agreements:

          (i) a Compliance Statement for each Servicer,  the Master Servicer and
     the Securities  Administrator  (each, a "Reporting  Servicer") as described
     under Section 3.20;

          (ii) (A) the Assessment of Compliance for each Reporting Servicer,  as
     described  under  Section  3.21(a)  and  (c),  and  (B) if  each  Reporting
     Servicer's  Assessment of Compliance  identifies  any material  instance of
     noncompliance, disclosure identifying such instance of noncompliance, or if
     each  Reporting  Servicer's  Assessment of Compliance is not included as an
     exhibit to such Form 10-K,  disclosure that such report is not included and
     an explanation why such report is not included; provided, however, that the
     Securities  Administrator,  at its discretion,  may omit from the Form 10-K
     any  Assessment of Compliance  described in this clause (ii) or Attestation
     Report  described  in clause  (iii) below that is not  required to be filed
     with such Form 10-K pursuant to Regulation AB;

          (iii) (A) the  Attestation  Report  for each  Reporting  Servicer,  as
     described  under  Section  3.21(b)  and  (c),  and  (B)  if  any  Reporting
     Servicer's   Attestation   Report   identifies  any  material  instance  of
     noncompliance, disclosure identifying such instance of noncompliance, or if
     any Reporting  Servicer's  Attestation Report is not included as an exhibit
     to such Form 10-K,  disclosure that such Attestation Report is not included
     and an explanation why such Attestation Report is not included; and

          (iv) a Sarbanes-Oxley Certification, as described in Section 3.22(e).

     Any disclosure or information in addition to (i) through (iv) above that is
required to be included on Form 10-K ("Additional  Form 10-K Disclosure")  shall
be  reported  by the  parties  set forth on Exhibit P to the  Depositor  and the
Securities  Administrator and directed and approved by the Depositor pursuant to

                                      -95-
<PAGE>
the following paragraph,  and the Securities  Administrator will have no duty or
liability for any failure  hereunder to determine or prepare any Additional Form
10-K Disclosure, except as set forth in this Section 3.22(d).

     As set forth on  Exhibit P hereto,  no later than March 1 of each year that
the Trust is subject to the Exchange Act reporting  requirements,  commencing in
2007, (i) the parties described in Exhibit P shall be required to provide to the
Securities Administrator (at cts.sec.notifications@wellsfargo.com with a copy by
facsimile  to  410-715-2380)  and  the  Depositor,  to  the  extent  known  by a
responsible officer thereof, in EDGAR-compatible format, or in such other format
as otherwise  agreed upon by the Securities  Administrator  and such party,  any
Additional  Form  10-K  Disclosure,   together  with  an  Additional  Disclosure
Notification  in the form  attached  hereto as Exhibit S and (ii) the  Depositor
shall approve, as to form and substance, or disapprove,  as the case may be, the
inclusion of the  Additional  Form 10-K  Disclosure on Form 10-K. The Securities
Administrator  shall compile all such information  provided to it in a Form 10-K
prepared by it. The Securities Administrator has no duty under this Agreement to
monitor or enforce the  performance  by the parties listed on Exhibit P of their
duties under this paragraph or proactively  solicit or procure from such parties
any  Additional  Form  10-K  Disclosure  information.   The  Depositor  will  be
responsible  for any  reasonable  fees and expenses  assessed or incurred by the
Securities  Administrator  in connection with including any Additional Form 10-K
Disclosure on Form 10-K pursuant to this paragraph.

     After preparing the Form 10-K, the Securities  Administrator  shall forward
electronically  a copy of the Form 10-K to the Master Servicer and Depositor for
review.  Within three  Business Days after  receipt of such copy,  the Depositor
shall notify the  Securities  Administrator  in writing  (which may be furnished
electronically)  of any  changes  to or  approval  of such Form  10-K.  A senior
officer of the Master Servicer in charge of the master servicing  function shall
sign the Form 10-K.  If a Form 10-K  cannot be filed on time or if a  previously
filed Form 10-K needs to be amended,  the Securities  Administrator  will follow
the  procedures  set  forth in  Section  3.22(h)(ii).  Form  10-K  requires  the
registrant  to indicate (by  checking  "yes" or "no") that it "(1) has filed all
reports  required to be filed by Section 13 or 15(d) of the  Exchange Act during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements  for the past 90 days."  The  Depositor  hereby  represents  to the
Securities  Administrator that the Depositor has filed all such required reports
during  the  preceding  12 months and that is has been  subject  to such  filing
requirement  for the past 90 days.  The  Depositor  shall notify the  Securities
Administrator in writing, no later than March 15th with respect to the filing of
a report on Form  10-K,  if the  answer to either  question  should be "no." The
Securities  Administrator  shall be entitled to rely on such  representations in
preparing,  executing and/or filing any such report. Promptly (but no later than
1 Business Day) after filing with the Commission,  the Securities  Administrator
will make  available on its internet  website a final executed copy of each Form
10-K prepared and filed by the  Securities  Administrator.  The signing party at
the Master Servicer can be contacted at the address  specified in Section 11.05.
The parties to this  Agreement  acknowledge  that the  performance by the Master
Servicer  and the  Securities  Administrator  of its duties  under this  Section
3.22(c) related to the timely preparation,  arrangement for execution and filing
of Form 10-K is contingent upon such parties  strictly  observing all applicable
deadlines in the performance of their duties under this Section 3.22(c), Section
3.22(e),  Section  3.20  and  Section  3.21  and is  also  contingent  upon  the
Servicers,  the  Custodian  and  any  Servicing  Function  Participant  strictly
observing  deadlines  no later than those set forth in this  paragraph  that are

                                      -96-
<PAGE>
applicable  to the parties to this  Agreement in the delivery to the  Securities
Administrator of any necessary  Additional Form 10-K Disclosure,  any Compliance
Statement and any Assessment of Compliance and  Attestation  Report  pursuant to
the  related  Servicing  Agreements,   any  custodial  agreement  or  any  other
applicable   agreement.   Neither  the  Master   Servicer  nor  the   Securities
Administrator  shall have any liability  for any loss,  expense,  damage,  claim
arising out of or with respect to any failure to properly  prepare,  arrange for
execution and/or timely file such Form 10-K, where such failure results from the
Securities  Administrator's  inability or failure to receive, on a timely basis,
any  information  from any other  party  hereto  or any  Servicer  or  Servicing
Function Participant needed to prepare,  arrange for execution or file such Form
10-K, not resulting from its own negligence, bad faith or willful misconduct.

     (d)  Within  four  (4)  Business  Days  after  the  occurrence  of an event
requiring disclosure on Form 8-K (each such event, a "Reportable Event"), and if
requested by the Depositor,  the Securities Administrator shall prepare and file
on behalf of the Trust any Form 8-K, as required by the Exchange  Act,  provided
that the  Depositor  shall file the  initial  Form 8-Ks in  connection  with the
issuance  of the  Certificates.  Any  disclosure  or  information  related  to a
Reportable Event or that is otherwise  required to be included on Form 8-K other
than the  initial  Form  8-Ks  filed in  connection  with  the  issuance  of the
Certificates  ("Form  8-K  Disclosure  Information")  shall be  reported  by the
parties  set  forth on  Exhibit  Q hereto to the  Depositor  and the  Securities
Administrator  and  directed  and  approved  by the  Depositor  pursuant  to the
following  paragraph,  and the  Securities  Administrator  will  have no duty or
liability for any failure  hereunder to determine or prepare any Additional Form
8-K Disclosure Information, or any Form 8-K, except as set forth in this Section
3.22(d).

     As set forth on Exhibit Q hereto,  no later than the end of business on the
2nd Business  Day after the  occurrence  of a  Reportable  Event (i) the parties
described  in  Exhibit  Q  shall  be  required  to  provide  to  the  Securities
Administrator (at cts.sec.notifications@wellsfargo.com  with a copy by facsimile
to  410-715-2380)  and to the  Depositor,  to the extent known by a  responsible
officer  thereof,  in  EDGAR-compatible  format,  or in  such  other  format  as
otherwise agreed upon by the Securities  Administrator  and such party, any Form
8-K  Disclosure  Information,   if  applicable,   together  with  an  Additional
Disclosure  Notification  in the form attached  hereto as Exhibit S and (ii) the
Depositor shall approve,  as to form and substance,  or disapprove,  as the case
may be, the inclusion of the Form 8-K  Disclosure  Information.  The  Securities
Administrator  shall compile all such  information  provided to it in a Form 8-K
prepared by it. The Securities Administrator has no duty under this Agreement to
monitor or enforce the  performance  by the parties listed on Exhibit Q of their
duties under this paragraph or proactively  solicit or procure from such parties
any Form 8-K Disclosure  Information.  The Depositor will be responsible for any
reasonable   fees  and   expenses   assessed  or  incurred  by  the   Securities
Administrator  in connection with including any Form 8-K Disclosure  Information
on Form 8-K pursuant to this paragraph.

     After  preparing the Form 8-K, the Securities  Administrator  shall forward
electronically  a copy of the Form 8-K to the Master  Servicer and Depositor for
review.  No later  than the  close of  business  New York  City  time on the 3rd
Business  Day after  the  Reportable  Event,  the  Depositor  shall  notify  the
Securities  Administrator in writing (which may be furnished  electronically) of
any  changes to or  approval  of such Form 8-K. In the absence of receipt of any

                                      -97-
<PAGE>

written changes or approval,  the Securities  Administrator shall be entitled to
assume that such Form 8-K is in final form and the Securities  Administrator may
proceed with the execution and filing of the Form 8-K. A duly authorized officer
of the Master Servicer shall sign the Form 8-K. If a Form 8-K cannot be filed on
time or if a  previously  filed  Form 8-K needs to be  amended,  the  Securities
Administrator  will  follow the  procedures  set forth in  Section  3.22(h)(ii).
Promptly  (but no later than 1 Business  Day) after filing with the  Commission,
the Securities  Administrator  will,  make  available on its internet  website a
final  executed  copy of each  Form 8-K  prepared  and  filed by the  Securities
Administrator.  The signing party at the Master Servicer can be contacted at the
address  specified in Section 11.05.  The parties to this Agreement  acknowledge
that the  performance by the Securities  Administrator  of its duties under this
Section 3.22(d) related to the timely preparation, arrangement for execution and
filing  of Form 8-K is  contingent  upon such  parties  strictly  observing  all
applicable  deadlines  in the  performance  of their  duties  under this Section
3.22(d) and also contingent upon the Servicers,  the Custodian and any Servicing
Function  Participant strictly observing deadlines no later than those set forth
in this  paragraph  that are  applicable to the parties to this Agreement in the
delivery to the  Securities  Administrator  of any necessary Form 8-K Disclosure
Information  pursuant  to  the  related  Servicing  Agreements,   any  custodial
agreement or any other applicable agreement. Neither the Master Servicer nor the
Securities Administrator shall have any liability for any loss, expense, damage,
claim arising out of or with respect to any failure to properly prepare, arrange
for execution  and/or timely file such Form 8-K, where such failure results from
the  Securities  Administrator's  inability  or failure to receive,  on a timely
basis, any information from any other party hereto or any Servicer, Custodian or
Servicing Function Participant needed to prepare,  arrange for execution or file
such Form 8-K,  not  resulting  from its own  negligence,  bad faith or  willful
misconduct.

     (e) Each  Form 10-K  shall  include a  certification  (the  "Sarbanes-Oxley
Certification"),  exactly as set forth in Exhibit M attached hereto, required to
be  included  therewith  pursuant  to the  Sarbanes-Oxley  Act.  The  Securities
Administrator  (if the  Securities  Administrator  is not the same entity as the
Master  Servicer)  shall  provide,   and  shall  cause  any  Servicing  Function
Participant engaged by it to provide, to the Person who signs the Sarbanes-Oxley
Certification (the "Certifying Person"), by March 15th of each year in which the
Trust is subject to the reporting requirements of the Exchange Act and otherwise
within a reasonable period of time upon request, a certification (each, together
with such  similar  certification  delivered  by each  Servicer as  described in
Section  3.22(f),  a "Back-up  Certification"),  in the form attached  hereto as
Exhibit R, upon 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 of the Master  Servicer  in charge of the
master servicing  function shall serve as the Certifying Person on behalf of the
Trust.  Such  officer  of the  Certifying  Person can be  contacted  by email at
cts.sec.notifications@wellsfargo.com.  In the event  the  Master  Servicer,  the
Securities  Administrator or any Servicing Function  Participant engaged by such
parties is terminated or resigns pursuant to the terms of this Agreement, or any
applicable sub-servicing agreement, as the case may be, such party shall provide
a Back-up  Certification  to the  Certifying  Person  pursuant  to this  Section
3.22(e) with  respect to the period of time it was subject to this  Agreement or
any applicable  sub-servicing agreement, as the case may be. Notwithstanding the
foregoing, (i) the Master Servicer and the Securities Administrator shall not be

                                      -98-
<PAGE>

required to deliver a Back-Up  Certification  to each other if both are the same
Person  and the Master  Servicer  is the  Certifying  Person and (ii) the Master
Servicer shall not be obligated to sign the Sarbanes-Oxley  Certification in the
event  that it  does  not  receive  any  Back-Up  Certification  required  to be
furnished to it pursuant to this section or any Servicing Agreement or Custodial
Agreement.

     (f) Pursuant to the related Servicing Agreements, the Master Servicer shall
enforce the  obligation  of each  Servicer to provide the Back-up  Certification
required pursuant to each of the Servicing Agreements.

     (g)  Upon  any  filing  with  the  Commission  prepared  and  filed  by the
Securities Administrator, the Securities Administrator shall promptly deliver or
make available to the Depositor a copy of any such executed report, statement or
information.

     (h) (i) The  obligations  set forth in  paragraphs  (a) through (h) of this
Section  shall only apply with respect to periods for which reports are required
to be filed with  respect to the Trust  under the  Exchange  Act. On or prior to
January 30 of the first year in which the Securities Administrator is able to do
so under  applicable  law,  unless  otherwise  requested by the  Depositor,  the
Securities  Administrator  shall prepare and file with the  Commission a Form 15
Suspension  Notification  executed by the Master  Servicer  with  respect to the
Trust, with a copy to the Depositor. At the beginning of the calendar year after
the  filing  of a Form  15  Suspension  Notification,  if the  Depositor  or the
Certificate  Registrar determines that the number of  Certificateholders  of the
Offered  Certificates of record exceeds the number set forth in Section 15(d) of
the Exchange Act or the  regulations  promulgated  pursuant  thereto which would
cause the Trust to again become  subject to the  reporting  requirements  of the
Exchange Act, it shall  promptly  notify the  Securities  Administrator  and the
Securities  Administrator shall recommence  preparing and filing reports on Form
8-K,  Form 10-D and Form  10-K as  required  pursuant  to this  Section  and the
then-current  reporting  requirements of the Exchange Act and the parties hereto
will again have the  obligations set forth in paragraphs (a) through (h) of this
Section.

          (ii) In the  event  that the  Securities  Administrator  is  unable to
     timely file with the  Commission  all or any  required  portion of any Form
     8-K, Form 10-D or Form 10-K required to be filed by this Agreement  because
     required disclosure information was either not delivered to it or delivered
     to it after the delivery  deadlines set forth in this  Agreement or for any
     other reason, the Securities Administrator will immediately  electronically
     notify the  Depositor and the Master  Servicer of such  inability to make a
     timely filing with the Commission.  In the case of Form 10-D and Form 10-K,
     the  Securities  Administrator,  the Master  Servicer,  the Trustee and the
     Depositor  will  cooperate  to  prepare  and file a Form  12b-25 and a Form
     10-D/A  and Form  10-K/A  as  applicable,  pursuant  to Rule  12b-25 of the
     Exchange Act. In the case of Form 8-K, the Securities  Administrator  will,
     upon receipt of all required Form 8-K Disclosure  Information  and upon the
     approval  and  direction  of  the   Depositor,   include  such   disclosure
     information on the next Form 10-D. In the event that any  previously  filed
     Form 8-K, Form 10-D or Form 10-K needs to be amended in connection with any
     Additional Form 10-D Disclosure  (other than, in the case of Form 10-D, for

                                      -99-
<PAGE>
     the purpose of  restating  any  Monthly  Statement),  Additional  Form 10-K
     Disclosure or Form 8-K Disclosure Information, the Securities Administrator
     will notify the Depositor and such other parties to the  transaction as are
     affected by such amendment,  and such parties will cooperate to prepare any
     necessary Form 8-K/A, Form 10-D/A or Form 10-K/A.  Any Form 15, Form 12b-25
     or any  amendment  to Form  8-K or Form  10-D  shall  be  signed  by a duly
     authorized  officer (and a senior officer with respect to the Form 10-K) of
     the Master  Servicer.  The parties to this Agreement  acknowledge  that the
     performance by the Master Servicer and the Securities  Administrator of its
     duties  under this  Section  3.22(h)  related  to the  timely  preparation,
     arrangement  for  execution  and  filing  of Form 15, a Form  12b-25 or any
     amendment to Form 8-K, Form 10-D or Form 10-K is contingent  upon each such
     party performing its duties under this Section 3.22(h).  Neither the Master
     Servicer nor the Securities  Administrator shall have any liability for any
     loss, expense,  damage, claim arising out of or with respect to any failure
     to properly prepare, arrange for execution and/or timely file any such Form
     15, Form  12b-25 or any  amendments  to Forms 8-K,  Form 10-D or Form 10-K,
     where such failure results from the Securities Administrator's inability or
     failure to receive, on a timely basis, any information from any other party
     hereto or any Servicer, the Custodian or any Servicing Function Participant
     needed to prepare,  arrange for execution or file such Form 15, Form 12b-25
     or any  amendments to Forms 8-K, Form 10-D or Form 10-K, not resulting from
     its own negligence, bad faith or willful misconduct.

     (i)  Notwithstanding  the provision of Section 11.01, this Section 3.22 may
be amended without the consent of the Certificateholders.

                                   ARTICLE IV

                          MASTER SERVICER'S CERTIFICATE

          Section 4.01 Master Servicer's Certificate.

     Each month, not later than 12:00 noon Eastern time on the 18th calendar day
of such  month (or if such day is not a Business  Day,  the  following  Business
Day),  the Master  Servicer  shall deliver to the  Securities  Administrator,  a
Master Servicer's  Certificate  based solely on the information  provided by the
Servicers (in substance and format  mutually  acceptable to the Master  Servicer
and the  Securities  Administrator)  certified  by a  Master  Servicing  Officer
setting   forth  the   information   necessary  in  order  for  the   Securities
Administrator  to perform its obligations  under this Agreement.  The Securities
Administrator may conclusively  rely upon the information  contained in a Master
Servicer's  Certificate  delivered  by the  Master  Servicer  for  all  purposes
hereunder and shall have no duty to verify or re-compute any of the  information
contained therein.

                                   ARTICLE V

       PAYMENTS AND STATEMENTS TO CERTIFICATEHOLDERS;REMIC ADMINISTRATION

     Section 5.01 Distributions.

     On each  Distribution  Date,  based solely on the information in the Master
Servicer's  Certificate,  the Securities  Administrator  shall  distribute or be

                                     -100-
<PAGE>
deemed  to  distribute  out  of  the  Certificate  Account,  the  Lower-Tier  II
Certificate Sub-Account, the Upper-Tier II Certificate Sub-Account, the Shifting
Interest Lower-Tier Certificate  Sub-Account,  the Shifting Interest Middle-Tier
Certificate   Sub-Account  or  the  Shifting  Interest  Upper-Tier   Certificate
Sub-Account,  as applicable (to the extent funds are available therein), to each
Certificateholder  of record on the related  Record Date (other than as provided
in Section 10.01 respecting the final  distribution) (a) by check mailed to such
Certificateholder  entitled to receive a distribution on such  Distribution Date
at the  address  appearing  in the  Certificate  Register,  or (b) upon  written
request by the Holder of a Certificate (other than a Residual  Certificate),  by
wire  transfer or by such other means of payment as such  Certificateholder  and
the  Securities   Administrator  shall  agree  upon,  such   Certificateholder's
Percentage  Interest in the amount to which the related Class of Certificates is
entitled in accordance  with the  priorities  set forth below in Section 5.02 or
5.03, as applicable.

     None of the Holders of any Class of Certificates, the Depositor, the Master
Servicer,  the  Securities  Administrator  or the  Trustee  shall  in any way be
responsible  or liable to  Holders  of any Class of  Certificates  in respect of
amounts properly previously distributed on any such Class.

     Amounts  distributed  with  respect to any Class of  Certificates  shall be
applied  first to the  distribution  of interest  thereon and then to  principal
thereon.

     Section  5.02  Priorities  of  Distributions   on  the  Shifting   Interest
Certificates.

     (a) On each Distribution Date, the Securities  Administrator shall withdraw
from the Certificate  Account (to the extent funds are available therein) (1) to
the extent not previously paid, the amounts payable to the Master Servicer,  the
Securities Administrator and the Trustee pursuant to Section 3.09(e) and (f) and
Section  3.11 and shall pay such funds to itself,  the Master  Servicer  and the
Trustee, as applicable, and (2) based solely on the information contained in the
Master Servicer's  Certificate,  the Pool Distribution Amount (after the payment
of the  Servicing  Fees for such  Mortgage  Loans and expenses  and  indemnities
reimbursable  pursuant  to this  Agreement,  in  each  case  to the  extent  not
previously   retained  by  or   distributed   to  a  Servicer,   the  Securities
Administrator,  the Master Servicer or the Trustee), and shall apply such funds,
first,  to  distributions  in respect of the  Uncertificated  Shifting  Interest
Lower-Tier  Interests,   and  then  to  the  Uncertificated  Shifting  Interests
Middle-Tier  Interests  as  specified  in  this  Section  5.02(a)  and  then  to
distributions  on the Shifting  Interest  Certificates in the following order of
priority and to the extent of such funds:

          (i)   concurrently,   to  each  Class  of  Senior  Shifting   Interest
     Certificates,  an  amount  allocable  to  interest  equal  to the  Interest
     Distribution  Amount for such Class and any shortfall being allocated among
     such  Classes  in  proportion  to the amount of the  Interest  Distribution
     Amount that would have been  distributed  in the absence of such  shortfall
     but, until the applicable  Accretion  Termination Date,  amounts that would
     have  been  distributed   pursuant  to  this  clause  to  the  Class  1-A-5
     Certificates  may be  distributed  instead as  principal to the Class 1-A-4
     Certificates  and  amounts  that would have  distributed  pursuant  to this
     clause to the Class 1-A-6  Certificates  may be distributed as principal to
     the Class 1-A-4 and Class 1-A-5  Certificates  in  accordance  with Section
     5.02(b)(i);

                                     -101-
<PAGE>
          (ii) pro rata to (a) the  Class  30-PO  Certificates,  based on the PO
     Principal Amount, and (b) the Senior Non-PO Shifting Interest Certificates,
     based on the Shifting Interest Senior Principal  Distribution  Amount, such
     distribution  to be allocated among such Classes in accordance with Section
     5.02(b);

          (iii) to the Class 30-PO Certificates, to pay any PO Deferred Amounts,
     up to the Subordinate Principal Distribution Amount;

          (iv) to each Class of Class 1-B Certificates, subject to paragraph (d)
     below, in the following order of priority:

               (A) to the  Class  1-B-1  Certificates,  an amount  allocable  to
          interest equal to the Interest  Distribution Amount for such Class for
          such Distribution Date;

               (B) to the  Class  1-B-1  Certificates,  an amount  allocable  to
          principal equal to its Pro Rata Share for such  Distribution Date less
          any amount  used to pay the PO  Deferred  Amounts  pursuant  to clause
          (iii)  above  until the Class  Certificate  Balance  thereof  has been
          reduced to zero;

               (C) to the  Class  1-B-2  Certificates,  an amount  allocable  to
          interest equal to the Interest  Distribution Amount for such Class for
          such Distribution Date;

               (D) to the  Class  1-B-2  Certificates,  an amount  allocable  to
          principal equal to its Pro Rata Share for such  Distribution Date less
          any amount  used to pay the PO  Deferred  Amounts  pursuant  to clause
          (iii)  above  until the Class  Certificate  Balance  thereof  has been
          reduced to zero;

               (E) to the  Class  1-B-3  Certificates,  an amount  allocable  to
          interest equal to the Interest  Distribution Amount for such Class for
          such Distribution Date;

               (F) to the  Class  1-B-3  Certificates,  an amount  allocable  to
          principal equal to its Pro Rata Share for such  Distribution Date less
          any amount  used to pay the PO  Deferred  Amounts  pursuant  to clause
          (iii)  above  until the Class  Certificate  Balance  thereof  has been
          reduced to zero;

               (G) to the  Class  1-B-4  Certificates,  an amount  allocable  to
          interest equal to the Interest  Distribution Amount for such Class for
          such Distribution Date;

               (H) to the  Class  1-B-4  Certificates,  an amount  allocable  to
          principal equal to its Pro Rata Share for such  Distribution Date less
          any amount  used to pay the PO  Deferred  Amounts  pursuant  to clause
          (iii)  above  until the Class  Certificate  Balance  thereof  has been
          reduced to zero;

                                     -102-
<PAGE>

               (I) to the  Class  1-B-5  Certificates,  an amount  allocable  to
          interest equal to the Interest  Distribution Amount for such Class for
          such Distribution Date;

               (J) to the  Class  1-B-5  Certificates,  an amount  allocable  to
          principal equal to its Pro Rata Share for such  Distribution Date less
          any amount  used to pay the PO  Deferred  Amounts  pursuant  to clause
          (iii)  above  until the Class  Certificate  Balance  thereof  has been
          reduced to zero;

               (K) to the  Class  1-B-6  Certificates,  an amount  allocable  to
          interest equal to the Interest  Distribution Amount for such Class for
          such Distribution Date;

               (L) to the  Class  1-B-6  Certificates,  an amount  allocable  to
          principal equal to its Pro Rata Share for such  Distribution Date less
          any amount  used to pay the PO  Deferred  Amounts  pursuant  to clause
          (iii)  above  until the Class  Certificate  Balance  thereof  has been
          reduced to zero;

               (v) to the Holder of the Class 1-A-R  Certificate  (in respect of
          the Class SI-UR Interest,  the Class SI-MR Interest or the Class SI-LR
          Interest,  as  applicable),  any  amounts  remaining  in the  Shifting
          Interest  Upper-Tier  Certificate  Sub-Account,  the Shifting Interest
          Middle-Tier   Certificate   Sub-Account  and  the  Shifting   Interest
          Lower-Tier Certificate Sub-Account and any remaining Pool Distribution
          Amount.

     No Class of Certificates will be entitled to any distributions with respect
to the amount  payable  pursuant to clause (ii) of the  definition  of "Interest
Distribution  Amount" after its Class Certificate Balance or Notional Amount, as
the case may be, has been reduced to zero.

     All  distributions  in respect of the  Interest  Distribution  Amount for a
Class will be applied  first with  respect  to the amount  payable  pursuant  to
clause (i) of the definition of "Interest  Distribution  Amount" and second with
respect to the amount payable pursuant to clause (ii) of such definition.

     On each Distribution  Date, the Securities  Administrator  shall distribute
any  Reimbursement  Amount received with respect to Loan Group 1 sequentially to
each Class of Shifting  Interest  Certificates  then outstanding  which bore the
loss to which such Reimbursement Amount relates,  beginning with the most senior
of such Classes of  Certificates,  up to, with respect to each Class, the amount
of loss  borne by such  Class.  Any  Reimbursement  Amount  remaining  after the
application  described in the preceding  sentence  shall be included in the Pool
Distribution Amount.

     Distributions on the Uncertificated Shifting Interest Lower-Tier Interests.
On each Distribution Date,  Uncertificated Accrued Interest shall be distributed
in respect of the Uncertificated  Shifting Interest Lower-Tier  Interests (other
than  the  Class  1-LPO  Interest)  at  the  Uncertificated   Shifting  Interest

                                     -103-
<PAGE>
Lower-Tier REMIC Pass-Through Rate thereon,  plus any amounts in respect thereof
remaining unpaid from previous  Distribution  Dates. For purposes of calculating
Uncertificated  Accrued  Interest  in  respect of each  Uncertificated  Shifting
Interest Lower-Tier Interest and any Distribution Date,  Non-Supported  Interest
Shortfalls and Relief Act Reductions  shall be allocated to each  Uncertificated
Shifting  Interest  Lower-Tier  Interest  in the same  relative  proportions  as
interest  is  allocated  to such  Uncertificated  Shifting  Interest  Lower-Tier
Interest.

     All  distributions  of  principal  shall be made  first to the Class  1-LPO
Interest so as to keep the principal  balance  thereof at all times equal to the
Class  Certificate  Balance of the Class 30-PO  Certificates,  and  second,  any
remaining principal to the Class 1-L Interest.

     Realized  Losses  with  respect to Loan Group 1 shall be applied  after all
distributions have been made on each Distribution Date first, to the Class 1-LPO
Interest so as to keep the principal  balance  thereof at all times equal to the
Class  Certificate  Balance of the Class 30-PO  Certificates;  and  second,  the
remaining Realized Losses shall be allocated to the Class 1-L Interest.

     Recoveries and Reimbursement  Amounts received with respect to Loan Group 1
shall be applied to the Uncertificated Shifting Interest Lower-Tier Interests in
a manner  analogous to the application of Realized Losses to the  Uncertificated
Shifting Interest Lower-Tier Interests.

     As of any date, the aggregate  principal  balance of the Class 1-L Interest
shall equal the aggregate Pool Principal  Balance (Non-PO Portion) of Loan Group
1. As of any date,  the  principal  balance of the Class 1-LPO  Interest will be
equal to the Class Certificate  Balance of the Class 30-PO  Certificates and the
notional  amount of the Class  1-LIO  Interest  will be equal to the Class 30-IO
Notional Amount.

     Amounts  distributed to the  Uncertificated  Shifting  Interest  Lower-Tier
Interests in respect of principal and interest with respect to any  Distribution
Date are referred to herein  collectively as the "Shifting  Interest  Lower-Tier
Distribution Amount."

     Distributions  on  the   Uncertificated   Shifting   Interest   Middle-Tier
Interests.  On each  Distribution  Date, each  Uncertificated  Shifting Interest
Middle-Tier  Interest shall receive  distributions in respect of principal in an
amount  equal  to  the  amount  of  principal   distributed  to  its  respective
Corresponding  Class or Classes of Shifting  Interest  Certificates  as provided
herein  and  shall  have  its  principal  balance  increased  in  the  event  of
Recoveries,  Class 1-A-5  Accrual  Distribution  Amounts or Class 1-A-6  Accrual
Distribution  Amounts  in an  amount  equal to any such  increase  in the  Class
Certificate Balance of the respective Corresponding Class or Classes of Shifting
Interest Certificates.  On each Distribution Date, each Uncertificated  Shifting
Interest Middle-Tier Interest shall receive distributions in respect of interest
based on its  Uncertificated  Shifting Interest  Middle-Tier REMIC  Pass-Through
Rate  based  on  its   Uncertificated   Balance  in  an  amount   equal  to  the
Uncertificated  Accrued  Interest of such class,  and any amounts  undistributed
from  prior   Distribution   Dates,   which  amount  shall  equal  the  Interest
Distribution Amount in respect of its Corresponding Class or Classes of Shifting
Interest Certificates,  in each case to the extent actually distributed thereon.
Such amounts  distributed to the  Uncertificated  Shifting Interest  Middle-Tier
Interests in respect of principal and interest with respect to any  Distribution
Date are referred to herein  collectively as the "Shifting Interest  Middle-Tier
Distribution Amount."

                                     -104-
<PAGE>
     As  of  any  date,  the  principal  balance  or  notional  amount  of  each
Uncertificated  Shifting Interest  Middle-Tier  Interest equals the aggregate of
the  Class   Certificate   Balances  or  Notional   Amounts  of  the  respective
Corresponding Class or Classes of Shifting Interest  Certificates or in the case
of the Class MRI-1-A-1 Interest, the aggregate of the Class Certificate Balances
of the Class 1-A-1 and Class 1-A-2  Certificates.  The initial principal balance
or notional amount of each Uncertificated Shifting Interest Middle-Tier Interest
equals the  aggregate  of the  Initial  Class  Certificate  Balances  or Initial
Notional  Amounts of the  respective  Corresponding  Class or Class of  Shifting
Interest  Certificates  or in the  case of the  Class  MRI-1-A-1  Interest,  the
aggregate of the Initial Class Certificate Balances of the Class 1-A-1 and Class
1-A-2 Certificates.

     (b) (i) With respect to the Senior Shifting Interest Certificates:

          I.  On  each  Distribution  Date  occurring  prior  to  the  Accretion
     Termination Date for the Class 1-A-5 Certificates,  the Class 1-A-5 Accrual
     Distribution Amount will be allocated, sequentially, to the Class 1-A-4 and
     Class  1-A-5  Certificates,  in that order,  until their Class  Certificate
     Balances have been reduced to zero.

          II. On each  Distribution  Date  prior to the  Senior  Credit  Support
     Depletion  Date,  the amount  distributable  to the Senior Non-PO  Shifting
     Interest Certificates pursuant to Section 5.02(a)(ii) for such Distribution
     Date, will be distributed, sequentially, as follows:

               first,   to  the  Class  1-A-R   Certificate,   until  its  Class
          Certificate Balance has been reduced to zero;

               second, concurrently, as follows:

                         (a) 25.00%, concurrently,  to the Class 1-A-1 and Class
                    1-A-2 Certificates,  pro rata, until their Class Certificate
                    Balances have been reduced to zero; and

                         (b) 75.00%, sequentially, as follows:

                            (i) up to the PAC Principal  Amount,  sequentially,
                    as follows:

                              (1)  concurrently,  to the Class 1-A-7 and  Class
                    1-A-8 Certificates, pro rata, until their Class Certificate
                    Balances have been reduced to zero;

                              (2) to the Class 1-A-12 Certificates, until their
                    Class Certificate Balance has been reduced to zero;

                              (3) concurrently, to the Class 1-A-9 and Class 1-
                    A-10 Certificates, pro  rata, until their Class Certificate
                    Balances have been reduced to zero; and

                                     -105-
<PAGE>

                               (4) to the Class 1-A-11 Certificates, until their
                    Class Certificate Balance has been reduced to zero;

                           (ii)   up to the TAC Principal  Amount, sequentially,
                    to  the  Class 1-A-4  and Class  1-A-5 Certificates, in that
                    order until  their Class  Certificate  Balances  have  been
                    reduced to zero;

                            (iii) to the  Class 1-A-6 Certificates, until their
                    Class Certificate Balance has been reduced to zero;

                           (iv) sequentially, to the Class 1-A-4 and Class 1-A-5
                    Certificates,  in that order,  until their Class Certificate
                    Balances have been reduced to zero; and

                            (v)  sequentially, as follows: (1)  concurrently, to
                    the  Class 1-A-7  and Class  1-A-8 Certificates, pro  rata,
                    until their Class Certificate Balances have been reduced to
                    zero;

                              (2)  to the Class 1-A-12 Certificates, until their
                    Class Certificate Balance has been reduced to zero;

                              (3)  concurrently, to the Class 1-A-9 and Class 1-
                    A-10 Certificates,   pro rata, until their Class Certificate
                    Balances have been reduced to zero; and

                              (4)  to the Class 1-A-11 Certificates, until their
                    Class Certificate Balance has been reduced to zero.

     III. On each Distribution Date occurring prior to the Accretion Termination
Date for the Class  1-A-6  Certificates,  the Class 1-A-6  Accrual  Distribution
Amount will be allocated, sequentially, as follows:

          first,  up to the TAC  Principal  Amount  for such  Distribution  Date
     (after taking into account any  distributions  to the Class 1-A-4 and Class
     1-A-5 Certificates pursuant to clause II above), sequentially, to the Class
     1-A-4 and Class  1-A-5  Certificates,  in that  order,  until  their  Class
     Certificate Balances have been reduced to zero; and

          second, to the Class 1-A-6 Certificates, until their Class Certificate
     Balance has been reduced to zero.

          (ii) On each  Distribution  Date on or after the Senior Credit Support
     Depletion  Date,  notwithstanding  the  allocation  and  priority set forth
     above,  the  portion  of  the  Pool  Distribution  Amount  available  to be
     distributed   as  principal  of  the  Senior   Non-PO   Shifting   Interest
     Certificates  shall be  distributed,  concurrently,  as  principal  of such
     Classes of Senior Non-PO Shifting Interest

                                     -106-
<PAGE>
Certificates,  pro rata,  on the  basis of their  respective  Class  Certificate
Balances   immediately  prior  to  that  Distribution   Date,  until  the  Class
Certificate Balances thereof are reduced to zero.

          (iii) The Class 1-A-3 and Class 30-IO  Certificates  are Interest Only
     Certificates and are not entitled to distributions in respect of principal.

     (c) On  each  Distribution  Date,  Shifting  Interest  Accrued  Certificate
Interest for each Class of Shifting Interest  Certificates for such Distribution
Date shall be  reduced  by such  Class'  pro rata  share,  based on such  Class'
Interest  Distribution  Amount for such Distribution  Date,  without taking into
account the allocation made by this Section  5.02(c),  of an amount equal to the
sum of (A) Non-Supported  Interest Shortfalls on the Group 1 Mortgage Loans, (B)
on and after  the  related  Senior  Credit  Support  Depletion  Date,  any other
Realized  Losses on the Group 1 Mortgage  Loans  allocable  to interest  and (C)
Relief Act  Reductions  incurred on the Group 1 Mortgage  Loans with  respect to
such Distribution Date.

     (d)  Notwithstanding  the  priority  and  allocation  contained  in Section
5.02(a)(iv),  if with  respect  to any  Class of Class 1-B  Certificates  on any
Distribution  Date,  (i)  the  aggregate  of  the  Class  Certificate   Balances
immediately  prior  to  such  Distribution  Date of all  Classes  of  Class  1-B
Certificates  which have a higher  numerical Class  designation than such Class,
divided by (ii) the Pool Principal Balance (Non-PO Portion) immediately prior to
such Distribution Date (for each Class, the "Fractional  Interest") is less than
the Original  Fractional  Interest for such Class,  no distribution of principal
will be made to any  Classes  of  Class  1-B  Certificates  which  have a higher
numerical Class  designation than such Class (the "Restricted  Classes") and the
Class Certificate  Balances of the Restricted  Classes of Class 1-B Certificates
will  not be  used  in  determining  the  Pro  Rata  Share  for  the  Class  1-B
Certificates that are not Restricted Classes. If the aggregate Class Certificate
Balance of the Class 1-B Certificates that are not Restricted Classes is reduced
to zero,  notwithstanding  the previous  sentence,  any funds  remaining will be
distributed  sequentially  to the Class  1-B  Certificates  that are  Restricted
Classes in order of their  respective  numerical Class  designations  (beginning
with  the  Class of Class  1-B  Certificates  that is a  Restricted  Class  then
outstanding with the lowest numerical Class designation).

     (e) Any amounts  distributed to the Class 1-A-4 Certificates from the Class
1-A-4  Reserve  Fund  shall be deemed to be a  distribution  to the Class  1-A-4
Certificates from, for federal income tax purposes, a grantor trust as described
in  Subpart  E of Part I of  Subchapter  J of the Code and  Treasury  Regulation
ss.301.7701-4(c)(2).

     Section  5.03  Priorities  of  Distributions   on  the   Overcollateralized
Certificates.

     (a)  Distributions  of  Interest  with  Respect  to the  Overcollateralized
Certificates

     On each Distribution Date, the Securities Administrator shall withdraw from
the Certificate Account (to the extent funds are available therein) the Interest
Remittance  Amount and apply such amounts in the following order of priority and
to the extent of such funds:

     first,  concurrently,  to the Senior Overcollateralized  Certificates,  pro
rata,  the  Overcollateralized  Accrued  Certificate  Interest  thereon for such
Distribution Date;

                                     -107-
<PAGE>

     second, concurrently,  to the Senior Overcollateralized  Certificates,  pro
rata, the Interest Carry Forward Amount thereon for such Distribution Date;

     third, to the Class T2-M-1  Certificates,  the  Overcollateralized  Accrued
Certificate Interest thereon for such Distribution Date;

     fourth, to the Class T2-M-2 Certificates,  the  Overcollateralized  Accrued
Certificate Interest thereon for such Distribution Date;

     fifth, to the Class T2-M-3  Certificates,  the  Overcollateralized  Accrued
Certificate Interest thereon for such Distribution Date;

     sixth to the Class  T2-M-4  Certificates,  the  Overcollateralized  Accrued
Certificate Interest thereon for such Distribution Date;

     seventh, to the Class T2-M-5 Certificates,  the Overcollateralized  Accrued
Certificate Interest thereon for such Distribution Date;

     eighth, to the Class T2-M-6 Certificates,  the  Overcollateralized  Accrued
Certificate Interest thereon for such Distribution Date;

     ninth, to the Class T2-M-7  Certificates,  the  Overcollateralized  Accrued
Certificate Interest thereon for such Distribution Date;

     tenth, to the Class T2-M-8  Certificates,  the  Overcollateralized  Accrued
Certificate Interest thereon for such Distribution Date;

     eleventh, to the Class T2-B-1 Certificates,  the Overcollateralized Accrued
Certificate Interest thereon for such Distribution Date;

     twelfth, to the Class T2-B-2 Certificates,  the Overcollateralized  Accrued
Certificate Interest thereon for such Distribution Date; and

     thirteenth, the amount, if any, of the Interest Remittance Amount remaining
after application with respect to the priorities set forth above will be applied
as described below under Section 5.03(c) hereof.

     (b)  Distributions  of  Principal  with  Respect to the  Overcollateralized
Certificates

     The Securities  Administrator  shall withdraw from the Certificate  Account
(to the extent funds are available  therein) the Principal  Distribution  Amount
and apply it in the following order of priority and to the extent of such funds:

     With respect to each  Distribution Date (a) before the Stepdown Date or (b)
as to which a Trigger Event is in effect, the Principal Distribution Amount will
be  allocated  among and  distributed  in  reduction  of the  Class  Certificate
Balances  of the  Overcollateralized  Certificates  in the  following  order  of
priority:

                                     -108-
<PAGE>

     first, concurrently,  up to the Priority Amount, to the Class T2-A-7, Class
T2-A-8, Class T2-A-A and Class T2-A-B Certificates,  pro rata, until their Class
Certificate Balances have been reduced to zero;

     second,  concurrently,  to the Class T2-A-1 and Class T2-A-2  Certificates,
pro rata, until their Class Certificate Balances have been reduced to zero;

     third,  sequentially,  to the Class T2-A-3,  Class T2-A-4, Class T2-A-5 and
Class T2-A-6 Certificates, in that order, until their Class Certificate Balances
have been reduced to zero; and

     fourth,  concurrently,  to the Class T2-A-7, Class T2-A-8, Class T2-A-A and
Class T2-A-B Certificates, pro rata, until their Class Certificate Balances have
been reduced to zero;

     fifth,  to the Class  T2-M-1  Certificates,  until  the  Class  Certificate
Balance thereof has been reduced to zero;

     sixth,  to the Class  T2-M-2  Certificates,  until  the  Class  Certificate
Balance thereof has been reduced to zero;

     seventh,  to the Class  T2-M-3  Certificates,  until the Class  Certificate
Balance thereof has been reduced to zero;

     eighth,  to the Class  T2-M-4  Certificates,  until  the Class  Certificate
Balance thereof has been reduced to zero;

     ninth,  to the Class  T2-M-5  Certificates,  until  the  Class  Certificate
Balance thereof has been reduced to zero;

     tenth,  to the Class  T2-M-6  Certificates,  until  the  Class  Certificate
Balance thereof has been reduced to zero;

     eleventh,  to the Class T2-M-7  Certificates,  until the Class  Certificate
Balance thereof has been reduced to zero;

     twelfth,  to the Class  T2-M-8  Certificates,  until the Class  Certificate
Balance thereof has been reduced to zero;

     thirteenth,  to the Class T2-B-1 Certificates,  until the Class Certificate
Balance thereof has been reduced to zero;

     fourteenth,  to the Class T2-B-2 Certificates,  until the Class Certificate
Balance thereof has been reduced to zero; and

     fifteenth,  any remaining Principal Distribution Amount will be distributed
as described below in Section 5.03(c) hereof.

     With respect to each  Distribution  Date (a) on or after the Stepdown  Date
and (b) as long as a Trigger Event is not in effect, the Principal  Distribution

                                     -109-
<PAGE>
Amount  will be  allocated  among  and  distributed  in  reduction  of the Class
Certificate  Balances of the  Overcollateralized  Certificates  in the following
order of priority:

     first, concurrently,  up to the Priority Amount, to the Class T2-A-7, Class
T2-A-8,   Class   T2-A-A  and  Class   T2-A-B   Certificates,   pro  rata,   the
Overcollateralized  Senior  Principal  Distribution  Amount  until  their  Class
Certificate Balances have been reduced to zero;

     second,  concurrently,  to the Class T2-A-1 and Class T2-A-2  Certificates,
pro rata, the  Overcollateralized  Senior  Principal  Distribution  Amount until
their Class Certificate Balances have been reduced to zero;

     third,  sequentially,  to the Class T2-A-3,  Class T2-A-4, Class T2-A-5 and
Class  T2-A-6  Certificates,   in  that  order,  the  Overcollateralized  Senior
Principal  Distribution Amount until their Class Certificate  Balances have been
reduced to zero; and

     fourth,  concurrently,  to the Class T2-A-7, Class T2-A-8, Class T2-A-A and
Class T2-A-B  Certificates,  pro rata, the  Overcollateralized  Senior Principal
Distribution Amount until their Class Certificate  Balances have been reduced to
zero;

     fifth, to the Class T2-M-1  Certificates,  up to the Class T2-M-1 Principal
Distribution  Amount,  until  the Class  Certificate  Balance  thereof  has been
reduced to zero;

     sixth, to the Class T2-M-2  Certificates,  up to the Class T2-M-2 Principal
Distribution  Amount,  until  the Class  Certificate  Balance  thereof  has been
reduced to zero;

     seventh, to the Class T2-M-3 Certificates, up to the Class T2-M-3 Principal
Distribution  Amount,  until  the Class  Certificate  Balance  thereof  has been
reduced to zero;

     eighth, to the Class T2-M-4 Certificates,  up to the Class T2-M-4 Principal
Distribution  Amount,  until  the Class  Certificate  Balance  thereof  has been
reduced to zero;

     ninth, to the Class T2-M-5  Certificates,  up to the Class T2-M-5 Principal
Distribution  Amount,  until  the Class  Certificate  Balance  thereof  has been
reduced to zero;

     tenth, to the Class T2-M-6  Certificates,  up to the Class T2-M-6 Principal
Distribution  Amount,  until  the Class  Certificate  Balance  thereof  has been
reduced to zero;

     eleventh,  to  the  Class  T2-M-7  Certificates,  up to  the  Class  T2-M-7
Principal  Distribution  Amount, until the Class Certificate Balance thereof has
been reduced to zero;

     twelfth, to the Class T2-M-8 Certificates, up to the Class T2-M-8 Principal
Distribution  Amount,  until  the Class  Certificate  Balance  thereof  has been
reduced to zero;

     thirteenth,  to the  Class  T2-B-1  Certificates,  up to the  Class  T2-B-1
Principal  Distribution  Amount, until the Class Certificate Balance thereof has
been reduced to zero;

     fourteenth,  to the  Class  T2-B-2  Certificates,  up to the  Class  T2-B-2
Principal  Distribution  Amount, until the Class Certificate Balance thereof has
been reduced to zero; and

                                     -110
<PAGE>

     fifteenth,  any remaining Principal Distribution Amount will be distributed
as described in Section 5.03(c) hereof.

     Notwithstanding  the foregoing,  on or after the Distribution Date on which
the aggregate Class  Certificate  Balance of the Mezzanine  Certificates and the
Class   T2-B   Certificates   has  been   reduced   to  zero  and  there  is  no
Overcollateralization   Amount,  all  principal   distributions  to  the  Senior
Overcollateralized  Certificates will be distributed  concurrently on a pro rata
basis,  based on the Class  Certificate  Balance of each such  Class,  until the
Class Certificate Balance of each such Class has been reduced to zero.

     (c) Distribution of Monthly Excess Cashflow Amounts

          (i) On each  Distribution  Date,  any Monthly Excess  Cashflow  Amount
     shall be distributed,  to the extent  available,  in the following order of
     priority on such Distribution Date:

               (A)  concurrently,  to the  Classes of Senior  Overcollateralized
          Certificates,  pro  rata,  any  remaining  Overcollateralized  Accrued
          Certificate Interest for each such Class for such Distribution Date;

               (B)  concurrently,  to the  Classes of Senior  Overcollateralized
          Certificates,  pro rata,  any Interest  Carry Forward  Amount for each
          such Class for such Distribution Date;

               (C)  concurrently,  to the  Classes of Senior  Overcollateralized
          Certificates,  any Realized Loss Amortization Amounts for such Classes
          for such Distribution  Date, pro rata, based upon Unpaid Realized Loss
          Amounts for each such Class of Certificates;

               (D)   to   the   Class   T2-M-1   Certificates,   any   remaining
          Overcollateralized  Accrued  Certificate  Interest  for such Class for
          such Distribution Date;

               (E) to the Class T2-M-1 Certificates,  any Interest Carry Forward
          Amount for such Class for such Distribution Date;

               (F)  to  the  Class  T2-M-1   Certificates,   any  Realized  Loss
          Amortization Amount for such Class for such Distribution Date;

               (G)   to   the   Class   T2-M-2   Certificates,   any   remaining
          Overcollateralized  Accrued  Certificate  Interest  for such Class for
          such Distribution Date;

               (H) to the Class T2-M-2 Certificates,  any Interest Carry Forward
          Amount for such Class for such Distribution Date;

               (I)  to  the  Class  T2-M-2   Certificates,   any  Realized  Loss
          Amortization Amount for such Class for such Distribution Date;

                                     -111-
<PAGE>
               (J)   to   the   Class   T2-M-3   Certificates,   any   remaining
          Overcollateralized  Accrued  Certificate  Interest  for such Class for
          such Distribution Date;

               (K) to the Class T2-M-3 Certificates,  any Interest Carry Forward
          Amount for such Class for such Distribution Date;

               (L)  to  the  Class  T2-M-3   Certificates,   any  Realized  Loss
          Amortization Amount for such Class for such Distribution Date;

               (M)   to   the   Class   T2-M-4   Certificates,   any   remaining
          Overcollateralized  Accrued  Certificate  Interest  for such Class for
          such Distribution Date;

               (N) to the Class T2-M-4 Certificates,  any Interest Carry Forward
          Amount for such Class for such Distribution Date;

               (O)  to  the  Class  T2-M-4   Certificates,   any  Realized  Loss
          Amortization Amount for such Class for such Distribution Date;

               (P)   to   the   Class   T2-M-5   Certificates,   any   remaining
          Overcollateralized  Accrued  Certificate  Interest  for such Class for
          such Distribution Date;

               (Q) to the Class T2-M-5 Certificates,  any Interest Carry Forward
          Amount for such Class for such Distribution Date;

               (R)  to  the  Class  T2-M-5   Certificates,   any  Realized  Loss
          Amortization Amount for such Class for such Distribution Date;

               (S)   to   the   Class   T2-M-6   Certificates,   any   remaining
          Overcollateralized  Accrued  Certificate  Interest  for such Class for
          such Distribution Date;

               (T) to the Class T2-M-6 Certificates,  any Interest Carry Forward
          Amount for such Class for such Distribution Date;

               (U)  to  the  Class  T2-M-6   Certificates,   any  Realized  Loss
          Amortization Amount for such Class for such Distribution Date;

               (V)   to   the   Class   T2-M-7   Certificates,   any   remaining
          Overcollateralized  Accrued  Certificate  Interest  for such Class for
          such Distribution Date;

               (W) to the Class T2-M-7 Certificates,  any Interest Carry Forward
          Amount for such Class for such Distribution Date;

               (X)  to  the  Class  T2-M-7   Certificates,   any  Realized  Loss
          Amortization Amount for such Class for such Distribution Date;

               (Y)   to   the   Class   T2-M-8   Certificates,   any   remaining
          Overcollateralized  Accrued  Certificate  Interest  for such Class for
          such Distribution Date;

                                     -112-
<PAGE>
               (Z) to the Class T2-M-8 Certificates,  any Interest Carry Forward
          Amount for such Class for such Distribution Date;

               (AA)  to  the  Class  T2-M-8  Certificates,   any  Realized  Loss
          Amortization Amount for such Class for such Distribution Date;

               (BB)   to  the   Class   T2-B-1   Certificates,   any   remaining
          Overcollateralized  Accrued  Certificate  Interest  for such Class for
          such Distribution Date;

               (CC) to the Class T2-B-1 Certificates, any Interest Carry Forward
          Amount for such Class for such Distribution Date;

               (DD)  to  the  Class  T2-B-1  Certificates,   any  Realized  Loss
          Amortization Amount for such Class for such Distribution Date;

               (EE)   to  the   Class   T2-B-2   Certificates,   any   remaining
          Overcollateralized  Accrued  Certificate  Interest  for such Class for
          such Distribution Date;

               (FF) to the Class T2-B-2 Certificates, any Interest Carry Forward
          Amount for such Class for such Distribution Date;

               (GG)  to  the  Class  T2-B-2  Certificates,   any  Realized  Loss
          Amortization Amount for such Class for such Distribution Date;

               (HH)  from  amounts  otherwise  distributable  to  the  Class  CE
          Certificates,  to pay Cap Carryover Amounts, first,  concurrently,  to
          the Classes of Senior Overcollateralized Certificates, pro rata, based
          on Cap Carryover  Amounts for each such Class, and then  sequentially,
          to the Class T2-M-1,  Class T2-M-2,  Class T2-M-3, Class T2-M-4, Class
          T2-M-5,  Class T2-M-6,  Class T2-M-7,  Class T2-M-8,  Class T2-B-1 and
          Class T2-B-2  Certificates,  in that order, any Cap Carryover  Amounts
          for such Classes;

               (II)  to  the  Class  CE   Certificates,   up  to  the  Class  CE
          Distributable Amount; and

               (JJ)  on the  Distribution  Date in  August  2009  (or the  final
          Distribution  Date,  if  earlier),  to  the  holders  of the  Class  P
          Certificates  $100.00 in reduction of the Class Certificate Balance of
          such Class.

          (ii) On each  Distribution  Date,  there shall be  distributed  to the
     Holder  of the Class  1-A-R  Certificate  (in  respect  of the Class  II-UR
     Interest),  any amounts remaining in the Certificate  Account in respect of
     Loan Group T2 such date after the application pursuant to Sections 5.03(a),
     5.03(b) and 5.03(c)(i).

     (d) On each Distribution Date, after the Securities Administrator makes the
distributions of the Interest Remittance Amount,  Principal Distribution Amount,
Monthly  Excess  Cashflow  Amount and  amounts  on deposit in the Cap  Carryover

                                     -113-
<PAGE>

Reserve  Account  as  set  forth  above,  the  Securities   Administrator  shall
distribute  the  amount  on  deposit  in the  Overcollateralized  Reserve  Fund,
sequentially, as follows:

          (i)  concurrently,   to  the  Classes  of  Senior   Overcollateralized
     Certificates,   pro  rata,   any   remaining   Overcollateralized   Accrued
     Certificate Interest for each such Class for such Distribution Date;

          (ii)  concurrently,   to  the  Classes  of  Senior  Overcollateralized
     Certificates,  pro rata,  any remaining  Interest  Carry Forward Amount for
     each such Class for such Distribution Date;

          (iii) to the  holders of the Class or  Classes  of  Overcollateralized
     Certificates   then  entitled  to  receive   distributions  in  respect  of
     principal,  in an amount  necessary  to maintain  the  applicable  Targeted
     Overcollateralization  Amount after taking into account  distributions made
     from the Monthly Excess Interest Amount;

          (iv)  concurrently,  in proportion of their respective Unpaid Realized
     Loss Amounts, to the Senior Overcollateralized  Certificates, any remaining
     Unpaid Realized Loss Amounts;

          (v)  sequentially,  to the Class T2-M-1,  Class T2-M-2,  Class T2-M-3,
     Class T2-M-4, Class T2-M-5, Class T2-M-6, Class T2-M-7, Class T2-M-8, Class
     T2-B-1 and Class  T2-B-2  Certificates,  in that  order,  first the related
     Overcollateralized  Accrued Certificate  Interest,  then the Interest Carry
     Forward Amount and finally any Unpaid  Realized Loss Amount,  to the extent
     remaining  undistributed after the distributions of the Interest Remittance
     Amount and the Monthly Excess Cashflow Amount;

          (vi) concurrently, to the Senior Overcollateralized  Certificates, any
     related Cap Carryover Amounts, to the extent remaining  undistributed after
     distributions  are made from the Cap Carryover  Reserve Account pursuant to
     Section  5.03(c)(i)(HH),  on a pro rata basis based on such  respective Cap
     Carryover Amounts remaining;

          (vii) sequentially,  to the Class T2-M-1,  Class T2-M-2, Class T2-M-3,
     Class T2-M-4, Class T2-M-5, Class T2-M-6, Class T2-M-7, Class T2-M-8, Class
     T2-B-1 and Class  T2-B-2  Certificates,  in that  order,  any  related  Cap
     Carryover   Amounts,   to  the   extent   remaining   undistributed   after
     distributions  are made from the Cap Carryover  Reserve Account pursuant to
     Section 5.03(c)(i)(HH); and

          (viii) to the Class CE Certificates, any remaining amounts.

     (e) On each Distribution Date, the Securities  Administrator shall withdraw
any amounts then on deposit in the Certificate Account that represent Prepayment
Charges  with  respect to Group T2  Mortgage  Loans  serviced  by Wells Fargo in
connection with a Principal Prepayment in Full of any Group T2 Mortgage Loan and
shall  distribute such amounts to the Holders of the Class P Certificates.  Such
distributions  shall not be applied to reduce the Class  Certificate  Balance of
the Class P Certificates.

                                     -114-
<PAGE>
     (f) On each Distribution  Date, Unpaid Realized Loss Amounts on the Offered
Overcollateralized  Certificates and Class T2-B  Certificates will be reduced by
the amount of any  Recoveries  relating to the Group T2 Mortgage  Loans received
during  the  related  Prepayment  Period  in the  same  order as  Realized  Loss
Amortization Amounts are paid to the Offered Overcollateralized Certificates and
Class T2-B Certificates pursuant to Section 5.03(c) above.

     (g) Any amounts distributed to the Senior  Overcollateralized  Certificates
and Mezzanine  Certificates  and Class T2-B  Certificates in respect of interest
pursuant to Section  5.03(c)(i)(HH) which constitute Cap Carryover Amounts shall
first be deemed  distributed by the  Upper-Tier II REMIC as a distribution  with
respect to the Class CE Upper-Tier II Regular Interest,  and then distributed to
the Senior  Overcollateralized  Certificates,  Mezzanine  Certificates and Class
T2-B Certificates as payments on notional  principal  contracts in the nature of
cap contracts.  Any remaining  amount with respect to the Class CE  Certificates
shall be  treated  as having  been  distributed  to the  Holders of the Class CE
Certificates.   Any  amounts   distributed  to  the  Senior   Overcollateralized
Certificates,  Mezzanine  Certificates and Class T2-B  Certificates  pursuant to
Section  5.03(d)(vi) and (vii) which  constitute Cap Carryover  Amounts shall be
deemed to be  payments  on  notional  principal  contracts  in the nature of cap
contracts.

     (h) Distributions on the  Uncertificated  Lower-Tier II Interests.  On each
Distribution Date, the Securities  Administrator shall be deemed to cause in the
following  order of priority,  the following  amounts to be  distributed  to the
Upper-Tier  II REMIC on  account  of the  Uncertificated  Lower-Tier  II Regular
Interests (such amount,  the  "Lower-Tier II Distribution  Amount") or withdrawn
from the  Certificate  Account and  distributed to the Holder of the Class 1-A-R
Certificate (in respect of the Class II-LR Interest), as the case may be:

          (i) to  Holders  of the Class  LRII-AA  Interest,  the  Lower-Tier  II
     Corresponding  Marker  Interests,  the Class LRII-P  Interest and the Class
     LRII-ZZ  Interest,  pro rata, in an amount equal to (A) the  Uncertificated
     Accrued  Interest  for such  Distribution  Date,  plus (B) any  amounts  in
     respect thereof remaining unpaid from previous  Distribution Dates. Amounts
     payable as Uncertificated  Accrued Interest in respect of the Class LRII-ZZ
     Interest  shall  be  reduced  and  deferred  when the  Lower-Tier  II REMIC
     Overcollateralized   Amount   is  less   than  the   Lower-Tier   II  REMIC
     Overcollateralization  Target  Amount,  by the  lesser of (x) the amount of
     such difference and (y) the Maximum LRII-ZZ Uncertificated Accrued Interest
     Deferral  Amount and such  amount  will be  payable  to the  Holders of the
     Corresponding Lower-Tier II Marker Interests, in the same proportion as the
     Overcollateralization  Deficiency is allocated to the Corresponding Classes
     and the  Uncertificated  Balance  of the Class  LRII-ZZ  Interest  shall be
     increased by such amount;

          (ii) to the Holders of the Uncertificated  Lower-Tier II Interests, in
     an amount equal to the  remainder of the  Interest  Remittance  Amounts and
     Principal   Remittance   Amount  for  such   Distribution  Date  after  the
     distributions made pursuant to clause (i) above, allocated as follows:

               (1) to the Class LRII-AA  Interest and the Class LRII-P Interest,
          98.00% of such  remainder,  until the  Uncertificated  Balance of such

                                     -115-
<PAGE>
          Uncertificated  Lower-Tier  II Interest is reduced to zero;  provided,
          however, that the Class LRII-P Interest shall not be reduced until the
          Distribution  Date immediately  following the expiration of the latest
          Prepayment Charge or any Distribution Date thereafter,  at which point
          such amount shall be distributed to the Class LRII-P  Interest,  until
          $100 has been distributed pursuant to this clause;

               (2) to the Lower-Tier II Corresponding Marker Interests, 1.00% of
          such  remainder,  in the same  proportion  as  principal  payments are
          allocated  to the  Corresponding  Classes,  until  the  Uncertificated
          Balances of such Uncertificated Lower-Tier II Interests are reduced to
          zero; then

          to  the  Class  LRII-ZZ Interest, 1.00%  of  such remainder, until the
          Uncertificated  Balance of such Uncertificated  Lower-Tier II Interest
          is reduced to zero;

               (3)  any  remaining  amount  to the  Holder  of the  Class  1-A-R
          Certificate (in respect of the Class II-LR Interest);

provided, however, that (i) 98.00% and (ii) 2.00% of any principal payments that
are attributable to an Overcollateralization Release Amount shall be allocated
to (i) the Class LRII-AA Interest and the Class LRII-P Interest and (ii) the
Class LRII-ZZ Interest, respectively; provided that the Class LRII-P Interest
shall not be reduced until the Distribution Date immediately following the
expiration of the latest Prepayment Charge or any Distribution Date thereafter,
at which point such amount shall be distributed to the Class LRII-P Interest,
until $100 has been distributed pursuant to this clause.

          (iii) On each Distribution Date, all amounts  representing  Prepayment
     Charges in respect of the Group T2 Mortgage  Loans  received by Wells Fargo
     during the related  Prepayment Period will be distributed to Holders of the
     Class  LRII-P  Interest.  Such amount  shall not reduce the  Uncertificated
     Balance of the Class LRII-P Interest.

     (i)  Distributions  on the  Upper-Tier II Interests.  On each  Distribution
Date, all amounts  representing  Prepayment  Charges  deemed  distributed on the
Class LRII-P Interest shall be deemed  distributed by the Upper-Tier II REMIC in
respect of the Class P Upper-Tier II Interest.  Such amount shall not reduce the
Uncertificated  Balance of the Class P  Upper-Tier  II Interest.  Other  amounts
deemed  distributed  by the Lower-Tier II REMIC to the Upper-Tier II REMIC shall
be deemed  distributed  with respect to Upper-Tier II Interests so as to (i) pay
the  Uncertificated  Accrued  Interest on such  Upper-Tier  II Interest plus any
amounts in respect thereof remaining unpaid from previous Distribution Dates and
(ii)  reduce  the  Uncertificated  Balance  or  Notional  Amount  of  each  such
Upper-Tier  II  Interest  to the  extent  necessary  so that it equals the Class
Certificate   Balance  or  Notional  Amount  of  the   Corresponding   Class  of
Certificates.  Any remaining amounts will be deemed  distributed with respect to
the II-UR Interest.

     (j) Allocation of Losses on the Uncertificated  Lower-Tier II Interests and
the  Upper-Tier II Interests.  The Securities  Administrator  shall be deemed to
cause the following allocation of losses:

                                     -116-
<PAGE>
                    (a) For purposes of calculating the amount of Uncertificated
               Accrued Interest for the Uncertificated  Lower-Tier II Interests,
               the  aggregate  amount of any Relief Act  Reductions  incurred in
               respect of the Group T2 Mortgage Loans for any Distribution  Date
               shall be allocated  first,  to  Uncertificated  Accrued  Interest
               payable to (i) the Class  LRII-AA  Interest  and the Class LRII-P
               Interest and (ii) the Class  LRII-ZZ  Interest up to an aggregate
               amount equal to the Lower-Tier II REMIC Interest Loss  Allocation
               Amount,  98% and  2%,  respectively,  and  thereafter  among  the
               Lower-Tier  II  Corresponding  Marker  Interests  and  the  Class
               LRII-ZZ  Interest,  pro rata  based on, and to the extent of, one
               month's interest at the then applicable respective Uncertificated
               Lower-Tier  II  REMIC   Pass-Through   Rate  on  the   respective
               Uncertificated Balance of each such Uncertificated  Lower-Tier II
               Interest;

                    (b)  The  aggregate  amount  of any  Relief  Act  Reductions
               incurred  in  respect  of the  Group T2  Mortgage  Loans  for any
               Distribution  Date  shall  be  allocated  to  the  Upper-Tier  II
               Interests   pro  rata  based  on,  and  to  the  extent  of,  the
               Uncertificated  Accrued  Interest for such Upper-Tier II Interest
               for such Distribution Date.

               (i) (a) All Realized  Losses on the Group T2 Mortgage Loans shall
          be allocated by the Securities Administrator on each Distribution Date
          to  the  following  Uncertificated  Lower-Tier  II  Interests  in  the
          specified  percentages,  as follows:  first, to Uncertificated Accrued
          Interest  payable  to (i) the  Class  LRII-AA  Interest  and the Class
          LRII-P Interest and (ii) the Class LRII-ZZ Interest up to an aggregate
          amount  equal to the  Lower-Tier  II REMIC  Interest  Loss  Allocation
          Amount,  98%  and  2%,  respectively;  second,  to the  Uncertificated
          Balances of the Class MRII-AA  Interest and the Class LRII-ZZ Interest
          up to an aggregate  amount equal to the Lower-Tier II REMIC  Principal
          Loss  Allocation  Amount,  98% and  2%,  respectively;  third,  to the
          Uncertificated  Balances  of the  Class  LRII-AA  Interest,  the Class
          LRII-T2B2  Interest and the Class  LRII-ZZ  Interest,  98%, 1% and 1%,
          respectively,  until the Uncertificated Balance of the Class LRII-T2B2
          has been reduced to zero;  fourth, to the  Uncertificated  Balances of
          the Class LRII-AA Interest, the Class LRII-T2B1 Interest and the Class
          LRII-ZZ   Interest,   98%,   1%  and  1%,   respectively,   until  the
          Uncertificated  Balance  of the Class  LRII-T2B1  has been  reduced to
          zero;  fifth,  to the  Uncertificated  Balances  of the Class  LRII-AA
          Interest, the Class LRII-T2M8 Interest and the Class LRII-ZZ Interest,
          98%, 1% and 1%, respectively,  until the Uncertificated Balance of the
          Class LRII-T2M8 has been reduced to zero; sixth, to the Uncertificated
          Balances of the Class LRII-AA Interest,  the Class LRII-T2M7  Interest
          and the Class LRII-ZZ Interest,  98%, 1% and 1%,  respectively,  until
          the Uncertificated  Balance of the Class LRII-T2M7 has been reduced to
          zero;  seventh,  to the  Uncertificated  Balances of the Class LRII-AA
          Interest, the Class LRII-T2M6 Interest and the Class LRII-ZZ Interest,
          98%, 1% and 1%, respectively,  until the Uncertificated Balance of the

                                     -117-
<PAGE>
          Class   LRII-T2M6   has  been   reduced  to  zero;   eighth,   to  the
          Uncertificated  Balances  of the  Class  LRII-AA  Interest,  the Class
          LRII-T2M5  Interest and the Class  LRII-ZZ  Interest,  98%, 1% and 1%,
          respectively,  until the Uncertificated Balance of the Class LRII-T2M5
          has been reduced to zero; ninth, to the Uncertificated Balances of the
          Class LRII-AA  Interest,  the Class  LRII-T2M4  Interest and the Class
          LRII-ZZ   Interest,   98%,   1%  and  1%,   respectively,   until  the
          Uncertificated  Balance  of the Class  LRII-T2M4  has been  reduced to
          zero;  tenth,  to the  Uncertificated  Balances  of the Class  LRII-AA
          Interest, the Class LRII-T2M3 Interest and the Class LRII-ZZ Interest,
          98%, 1% and 1%, respectively,  until the Uncertificated Balance of the
          Class   LRII-T2M3  has  been  reduced  to  zero;   eleventh,   to  the
          Uncertificated  Balances  of the  Class  LRII-AA  Interest,  the Class
          LRII-T2M2  Interest and the Class  LRII-ZZ  Interest,  98%, 1% and 1%,
          respectively,  until the Uncertificated Balance of the Class LRII-T2M2
          has been reduced to zero; twelfth,  to the Uncertificated  Balances of
          the Class LRII-AA Interest, the Class LRII-T2M1 Interest and the Class
          LRII-ZZ   Interest,   98%,   1%  and  1%,   respectively,   until  the
          Uncertificated  Balance  of the Class  LRII-T2M1  has been  reduced to
          zero;  thirteenth,  up to the amount of any Class T-2-AA Realized Loss
          Amount, to the Uncertificated  Balances of the Class LRII-AA Interest,
          the Class LRII-T2AA  Interest and the Class LRII-ZZ Interest,  98%, 1%
          and 1%,  respectively,  until the Uncertificated  Balance of the Class
          LRII-T2AA  has been  reduced to zero and up to the amount of any Class
          T-2-AB  Realized Loss Amount,  to the  Uncertificated  Balances of the
          Class LRII-AA  Interest,  the Class  LRII-T2AB  Interest and the Class
          LRII-ZZ   Interest,   98%,   1%  and  1%,   respectively,   until  the
          Uncertificated  Balance  of the Class  LRII-T2AB  has been  reduced to
          zero.

                    (c) All Realized Losses on the Group T2 Mortgage Loans shall
               be allocated by the Securities Administrator on each Distribution
               Date to the Upper-Tier II Interests such that the  Uncertificated
               Balance or Notional  Amount of each such  Upper-Tier  II Interest
               equals the Class  Certificate  Balance or Notional  Amount of the
               corresponding Class of Certificates.

          (k)  Notwithstanding  anything to the contrary  contained herein,  the
     above  distributions  in  Sections  5.03(h)  through (l) (other than on the
     Certificates) are deemed distributions, and distributions of funds from the
     Certificate  Account shall be made only in accordance with Sections 5.03(a)
     through (f) hereof.

     Section 5.04 Allocation of Losses.

     (a) No later than five (5) Business Days prior to the related  Distribution
Date, the Master Servicer shall inform the Securities  Administrator  in writing
with respect to each Mortgage Loan: (1) whether any Realized Loss is a Deficient
Valuation  or a Debt  Service  Reduction,  (2) of the  amount  of  such  loss or
Deficient  Valuation,  or of the terms of such Debt Service Reduction and (3) of
the total amount of Realized  Losses on the  Mortgage  Loans in each Loan Group.
Based on such  information,  the Securities  Administrator  shall  determine the
total amount of Realized  Losses on the  Mortgage  Loans in each Loan Group with
respect to the related  Distribution Date. Realized Losses shall be allocated to
the  Certificates  by a  reduction  in the  Class  Certificate  Balances  of the
designated  Classes  (i) in the  case  of the  Shifting  Interest  Certificates,
pursuant  to the  operation  of Section  5.04(b)(i)  and (ii) in the case of the
Overcollateralized Certificates, pursuant to the operation of Section 5.04(c).

     (b) Allocation of Losses on the Shifting Interest Certificates.

                                     -118-
<PAGE>
               (i) On each Distribution  Date, the Class Certificate  Balance of
          the Class  30-PO  Certificates  shall be reduced on each  Distribution
          Date by the amount, if any, by which the Class Certificate  Balance of
          the Class 30-PO Certificates (after giving effect to the amounts to be
          distributed  as a  distribution  of principal  and the  allocation  of
          Realized  Losses  with  respect to the Group 1 Mortgage  Loans on such
          Distribution  Date)  exceeds the Adjusted Pool Amount (PO Portion) for
          such Distribution Date.

               The  Class  Certificate   Balance  of  the  Class  of  Class  1-B
          Certificates   then  outstanding  with  the  highest  numerical  Class
          designation shall be reduced or increased on each Distribution Date by
          the amount,  if any,  necessary  such that the  aggregate of the Class
          Certificate  Balances  of all  outstanding  Classes  of Senior  Non-PO
          Shifting  Interest  Certificates  and  Class 1-B  Certificates  (after
          giving  effect to the amount to be  distributed  as  distributions  of
          principal  and  the   allocation  of  PO  Deferred   Amounts  on  such
          Distribution  Date) equals the Adjusted Pool Amount  (Non-PO  Portion)
          for such Distribution Date.

               After  the  Senior  Credit  Support  Depletion  Date,  the  Class
          Certificate   Balances  of  the  Senior   Non-PO   Shifting   Interest
          Certificates  in the  aggregate  shall be reduced or increased on each
          Distribution  Date by the  amount,  if any,  necessary  such  that the
          aggregate of the Class Certificate Balances of all outstanding Classes
          of Senior Non-PO Shifting Interest  Certificates  (after giving effect
          to the amount to be distributed as  distributions of principal on such
          Distribution  Date) equals the Adjusted Pool Amount  (Non-PO  Portion)
          for such Distribution Date.

               Any such  reduction  or  increase  shall be  allocated  among the
          Senior Non-PO  Certificates based on their Class Certificate  Balances
          immediately  prior to such  Distribution  Date,  or in the case of the
          Class 1-A-5 and Class 1-A-6  Certificates,  their  respective  Initial
          Class  Certificate  Balances,  if lower,  until the Class  Certificate
          Balances thereof have been reduced to zero.  Realized Losses allocated
          to the Class 1-A-1 and Class 1-A-2  Certificates will reduce the Class
          1-A-3 Notional Amount.

               (ii) Any reduction or increase in the Class  Certificate  Balance
          of a Class of Certificates  pursuant to Section 5.04(b)(i) above shall
          be allocated  among the  Certificates  of such Class in  proportion to
          their respective Percentage Interests.

               (iii)  The  calculation  of  the  amount  to  be  distributed  as
          principal  to any Class of Class 1-B  Certificates  with  respect to a
          Distribution Date (the "Calculated  Principal  Distribution") shall be
          made prior to the  allocation  of any Realized  Losses with respect to
          the Group 1  Mortgage  Loans  for such  Distribution  Date;  provided,
          however,  the actual  payment of principal to the Classes of Class 1-B
          Certificates  shall be made  subsequent to the  allocation of Realized
          Losses  with   respect  to  the  Group  1  Mortgage   Loans  for  such
          Distribution  Date. In the event that after the allocation of Realized
          Losses with respect to the Group 1 Mortgage  Loans for a  Distribution
          Date, the Calculated  Principal  Distribution for a Class of Class 1-B
          Certificates  is greater  than the Class  Certificate  Balance of such
          Class, the excess shall be distributed (i) first, sequentially, to the
          Classes of Class 1-B Certificates then outstanding (beginning with the

                                     -119-
<PAGE>
          Class of Class  1-B  Certificates  then  outstanding  with the  lowest
          numerical  designation) until the respective Class Certificate Balance
          of each such  Class is  reduced  to zero and (ii)  then to the  Senior
          Non-PO Shfiting Interset Certificates, pro rata, on the basis of their
          respective Class Certificate Balances.

               (iv) After the Senior Credit Support Depletion Date:

                    (A) On any  Distribution  Date on which the Class 1-A-8 Loss
               Allocation  Amount is greater  than zero,  the Class  Certificate
               Balance of the Class  1-A-8  Certificates  will be reduced by the
               Class 1-A-8 Loss Allocation Amount and,  notwithstanding  Section
               5.04(b)(i),  the Class  Certificate  Balance  of the Class  1-A-7
               Certificates  will  not  be  reduced  by  the  Class  1-A-8  Loss
               Allocation  Amount.   Notwithstanding   the  foregoing,   on  any
               Distribution  Date in which the Class 1-A-7 Loss  Amount  exceeds
               the Class  Certificate  Balance of the Class  1-A-8  Certificates
               prior  to any  reduction  for the  Class  1-A-8  Loss  Allocation
               Amount, such excess will be distributed in reduction of the Class
               Certificate Balance of the Class 1-A-7 Certificates. Any increase
               in the Class  Certificate  Balance  allocated  to the Class 1-A-7
               Certificates pursuant to Section 5.04(b)(i) will instead increase
               the Class  Certificate  Balance of the Class 1-A-8  Certificates.

                    (B) On any Distribution  Date on which the Class 1-A-10 Loss
               Allocation  Amount is greater  than zero,  the Class  Certificate
               Balance of the Class 1-A-10  Certificates  will be reduced by the
               Class 1-A-10 Loss Allocation Amount and,  notwithstanding Section
               5.04(b)(i), the Class Certificate Balances of the Class 1-A-1 and
               Class 1-A-4  Certificates will not be reduced by the Class 1-A-10
               Loss Allocation  Amount.  Notwithstanding  the foregoing,  on any
               Distribution Date in which the sum of the Class 1-A-1 Loss Amount
               and Class 1-A-4 Loss Amount exceeds the Class Certificate Balance
               of the Class 1-A-10  Certificates  prior to any reduction for the
               Class  1-A-10  Loss  Allocation  Amount,   such  excess  will  be
               distributed, pro rata, based on the Class Certificate Balances of
               the Class 1-A-1 and Class 1-A-4 Certificates, in reduction of the
               Class  Certificate  Balances  of the Class  1-A-1 and Class 1-A-4
               Certificates.  Any  increase  in the  Class  Certificate  Balance
               allocated to the Class 1-A-1 or Class 1-A-4 Certificates pursuant
               to Section 5.04(b)(i) will instead increase the Class Certificate
               Balance of the Class 1-A-10 Certificates.

               (v)  With  respect  to any  Distribution  Date,  Realized  Losses
          allocated  pursuant  to this  Section  5.04(b) to each  Uncertificated
          Shifting Interest Lower-Tier Interest as described in Section 5.02 and
          to each Uncertificated  Shifting Interest  Middle-Tier  Interest in an
          amount equal to the Realized Losses  allocated to such  Uncertificated
          Middle-Tier  Interest's  Corresponding  Shifting  Interest  Upper-Tier
          Class or Classes.

               (vi) Notwithstanding any other provision of this Section 5.04(b),
          no  Class  Certificate   Balance  of  a  Class  of  Shifting  Interest
          Certificates  will be increased on any Distribution Date such that the
          Class  Certificate  Balance of such Class  exceeds its  Initial  Class
          Certificate  Balance  (plus,  in the case of the Class 1-A-5 and Class
          1-A-6 Certificates,  any Class 1-A-5 Accrual  Distribution Amounts and
          Class 1-A-6 Accrual  Distribution  Amounts,  respectively,  previously

                                     -120-
<PAGE>
          added  thereto)  less  all   distributions  of  principal   previously
          distributed  in  respect  of such  Class on prior  Distribution  Dates
          (excluding  in the case of any  Class of Class  1-B  Certificates  any
          principal  otherwise  payable to such Class of Class 1-B  Certificates
          but used to pay any PO Deferred Amount).

     (c)  Allocation  of  Losses  on the  Overcollateralized  Certificates.  Any
Subordinated  Applied  Realized  Loss  Amount  for a  Distribution  Date will be
allocated in reduction of the Class  Certificate  Balances of the Class  T2-B-2,
Class T2-B-1,  Class T2-M-8,  Class T2-M-7,  Class T2-M-6,  Class T2-M-5,  Class
T2-M-4, Class T2-M-3, Class T2-M-2 and Class T2-M-1 Certificates, in that order,
and until the respective Class Certificate Balances thereof are reduced to zero.

     After the Distribution Date on which the Class  Certificate  Balance of the
Class T2-M-1 Certificates has been reduced to zero, each Senior Applied Realized
Loss Amount for a Distribution  Date will be allocated in reduction of the Class
Certificate   Balance  of  the  related   Class  of  Senior   Overcollateralized
Certificates;  provided,  however,  that  (i) for so long  as the  Class  T2-A-A
Certificates  are  outstanding,  the Senior Applied Realized Loss Amount for the
Class T2-A-5  Certificates will be allocated to the Class T2-A-A Certificates in
addition  to the  Senior  Applied  Realized  Loss  Amount  for the Class  T2-A-A
Certificates  and  (ii)  for  so  long  as the  Class  T2-A-B  Certificates  are
outstanding,  the Senior  Applied  Realized  Loss  Amount  for the Class  T2-A-7
Certificates  will be allocated to the Class T2-A-B  Certificates in addition to
the Senior Applied Realized Loss Amount for the Class T2-A-B Certificates.

     Notwithstanding  any other  provision  of this  Section  5.04(c),  no Class
Certificate  Balance  of a  Class  of  Overcollateralized  Certificates  will be
increased on any Distribution  Date such that the Class  Certificate  Balance of
such Class exceeds its Initial Class Certificate  Balance less all distributions
of  principal  previously   distributed  in  respect  of  such  Class  on  prior
Distribution Dates.

     Section 5.05 Statements to Certificateholders.

     (a) (i)  Prior  to the  Distribution  Date in each  month,  based  upon the
information  provided to the Securities  Administrator on the Master  Servicer's
Certificate delivered to the Securities  Administrator  pursuant to Section 4.01
and with respect to subsections (V) and (W) below,  after  consultation with the
Depositor,   the  Securities   Administrator   shall   determine  the  following
information  with  respect  to  the  Shifting  Interest  Certificates  and  such
Distribution Date:

               (A) the actual  Distribution  Date,  the related Record Date, the
          LIBOR  Determination  Date for the Class 1-A-1,  Class 1-A-2 and Class
          1-A-3  Certificates  and the Interest Accrual Period for each Class of
          Shifting Interest Certificates for such Distribution Date;

               (B) the Pool Distribution Amount;

                                     -121-
<PAGE>
               (C) the  amount  of the Pool  Distribution  Amount  allocable  to
          principal,   separately   identifying  the  aggregate  amount  of  any
          Principal  Prepayments,  Liquidation  Proceeds  and  other  components
          included therein;

               (D) the  amount  of the Pool  Distribution  Amount  allocable  to
          interest, the Class 1-A-5 Accrual Distribution Amount, the Class 1-A-6
          Accrual  Distribution  Amount,  any Class  Unpaid  Interest  Shortfall
          included in such  distribution and any remaining Class Unpaid Interest
          Shortfall after giving effect to such distribution;

               (E) if the  distribution to the Holders of such Class of Shifting
          Interest  Certificates  is less  than the full  amount  that  would be
          distributable to such Holders if there were sufficient funds available
          therefor,  the amount of the shortfall and the  allocation  thereof as
          between principal and interest;

               (F) the  Class  Certificate  Balance  of each  Class of  Shifting
          Interest   Certificates   before  and  after  giving   effect  to  the
          distribution of principal on such Distribution Date;

               (G)  the  aggregate  Stated  Principal  Balance  of the  Group  1
          Mortgage  Loans for the  preceding  Distribution  Date and the related
          Distribution Date;

               (H) the Senior Percentage,  the Senior Prepayment Percentage, the
          Subordinate  Percentage and the Subordinate  Prepayment Percentage for
          such Distribution Date;

               (I) the amount of the  Servicing  Fees paid to or retained by the
          Servicers with respect to Loan Group 1 and such Distribution Date;

               (J) the  Pass-Through  Rate  for  each  such  Class  of  Shifting
          Interest Certificates with respect to such Distribution Date;

               (K) with respect to the Shifting  Interest  Certificates and Loan
          Group 1, the amount of Periodic  Advances included in the distribution
          on  such  Distribution  Date  and the  aggregate  amount  of  Periodic
          Advances  outstanding as of the close of business on the Determination
          Date immediately preceding such Distribution Date;

               (L)  the  number  and  aggregate  principal  amounts  of  Group 1
          Mortgage  Loans  (A)  delinquent   (exclusive  of  Mortgage  Loans  in
          foreclosure or bankruptcy) 31 to 60 days, 61 to 90 days and 91 or more
          days, (B) in foreclosure,  as of the close of business on the last day
          of the calendar  month  preceding  such  Distribution  Date and (C) in
          bankruptcy,  as of  the  close  of  business  on the  last  day of the
          calendar month preceding such Distribution Date;

               (M) with  respect to any Group 1 Mortgage  Loans that  became REO
          Properties  during the preceding  calendar month, the aggregate number

                                     -122-
<PAGE>
          of such Mortgage Loans and the aggregated  Stated Principal Balance of
          such Mortgage  Loans as of the close of business on the  Determination
          Date preceding such  Distribution  Date and the date of acquisition of
          the REO Properties;

               (N) for Loan Group 1, the total number and  principal  balance of
          any REO Properties (and market value, if available) as of the close of
          business on the Determination Date preceding such Distribution Date;

               (O) the aggregate  amount of Realized  Losses with respect to the
          Group 1 Mortgage Loans incurred during the preceding calendar month or
          any PO Deferred Amounts for such Distribution Date;

               (P)  the  Notional   Amount  for  each  Class  of  Interest  Only
          Certificates ;

               (Q) for Loan Group 1, the Reimbursement Amount;

               (R) for Loan Group 1, the amount of  Recoveries,  the PO Recovery
          and the Non-PO Recovery;

               (S) any  expenses or  indemnification  amounts paid by the Trust,
          the  specific  purpose of each  payment  and the  parties to whom such
          payments were made;

               (T) any material modifications,  extensions or waivers to Group 1
          Mortgage Loan terms,  fees,  penalties or payments  since the previous
          Distribution Date;

               (U) for the Group 1 Mortgage  Loans,  the  number  and  aggregate
          Stated Principal Balance, the weighted average Mortgage Interest Rate,
          the weighted average  remaining term, each as of the close of business
          on the last day of the  calendar  month  preceding  such  Distribution
          Date;

               (V) unless such  information  is otherwise  set forth in the Form
          10-D  relating  to  such  Distribution  Date  and  provided  that  the
          Securities   Administrator   is   reasonably   able  to  include  such
          information  in the statement,  material  breaches of Group 1 Mortgage
          Loan   representations   and   warranties  of  which  the   Securities
          Administrator has knowledge or has received written notice;

               (W) unless such  information  is otherwise  set forth in the Form
          10-D  relating  to  such  Distribution  Date  and  provided  that  the
          Securities   Administrator   is   reasonably   able  to  include  such
          information in the statement, material breaches of any covenants under
          this Agreement of which the Securities  Administrator has knowledge or
          has received written notice; and

               (X) the Class 1-A-4 Yield  Maintenance  Agreement Payment paid to
          the Class 1-A-4 Certificates.

          (ii)  Prior to the  Distribution  Date in each  month,  based upon the
     information  provided  to  the  Securities   Administrator  on  the  Master

                                     -123-
<PAGE>
     Servicer's  Certificate delivered to the Securities  Administrator pursuant
     to Section 4.01 and with respect to  subsections  (P) and (Q) below,  after
     consultation  with  the  Depositor,   the  Securities  Administrator  shall
     determine the following information with respect to the  Overcollateralized
     Certificates and such Distribution Date:

               (A) the actual  Distribution  Date,  the related Record Date, the
          LIBOR  Determination  Date for the Class T2-A-2  Certificates  and the
          Interest   Accrual   Period  for  each  Class  of   Overcollateralized
          Certificates for such Distribution Date;

               (B)  if  the  distribution  to  the  Holders  of  such  Class  of
          Overcollateralized  Certificates  is less  than the full  amount  that
          would be  distributable to such Holders if there were sufficient funds
          available  therefor,  the amount of the shortfall  and the  allocation
          thereof as between principal and interest;

               (C)   the   Class   Certificate   Balance   of  each   Class   of
          Overcollateralized  Certificates before and after giving effect to the
          distribution of principal on such Distribution Date;

               (D) the amount of the  Servicing  Fees paid to or retained by the
          Servicers  with  respect  to the  Group  T2  Mortgage  Loans  and such
          Distribution Date;

               (E) the Pass-Through Rate and Certificate  Interest Rate for each
          such Class of  Overcollateralized  Certificates  with  respect to such
          Distribution Date;

               (F) with respect to the  Overcollateralized  Certificates and the
          Group T2 Mortgage Loans, the amount of Periodic  Advances  included in
          the distribution on such Distribution Date and the aggregate amount of
          Periodic  Advances  outstanding  as of the  close of  business  on the
          Determination Date immediately preceding such Distribution Date;

               (G) the  number  and  aggregate  principal  amounts  of  Group T2
          Mortgage Loans (A) delinquent (exclusive of Group T2 Mortgage Loans in
          foreclosure  or bankruptcy) 1 to 30 days, 31 to 60 days, 61 to 90 days
          and 91 or more days, (B) in  foreclosure,  as of the close of business
          on the last day of the calendar month preceding such Distribution Date
          and (C) in bankruptcy,  as of the close of business on the last day of
          the calendar month preceding such Distribution Date;

               (H) with  respect to any Group T2 Mortgage  Loans that became REO
          Properties  during the preceding  calendar month, the aggregate number
          of such Group T2 Mortgage  Loans and the aggregated  Stated  Principal
          Balance of such Group T2 Mortgage Loans as of the close of business on
          the  Determination  Date preceding such Distribution Date and the date
          of acquisition of the REO Properties;

                                     -124-
<PAGE>
               (I) the total number and principal  balance (and market value, if
          available)  of any REO  Properties  with  respect to Group T2 Mortgage
          Loans as of the close of business on the Determination  Date preceding
          such Distribution Date;

               (J) the aggregate  amount of Realized  Losses with respect to the
          Group T2 Mortgage  Loans and Applied  Realized  Loss Amounts  incurred
          during  the  related  Collection  Period  separately  identifying  any
          reduction  thereof due to the  allocations  of Applied  Realized  Loss
          Amounts;

               (K) for Loan Group T2, the Reimbursement Amount;

               (L) for Loan Group T2, the amount of Recoveries;

               (M) any  expenses or  indemnification  amounts paid by the Trust,
          the  specific  purpose of each  payment  and the  parties to whom such
          payments were made;

               (N) any material modifications, extensions or waivers to Group T2
          Mortgage Loan terms,  fees,  penalties or payments  since the previous
          Distribution Date;

               (O) the number of Group T2 Mortgage  Loans at the  beginning  and
          end of the related  Collection  Period,  the weighted average Mortgage
          Interest Rate of the Mortgage  Loans as of the last day of the related
          Collection  Period  and the  weighted  average  remaining  term of the
          Mortgage Loans;

               (P) unless such  information  is otherwise  set forth in the Form
          10-D  relating  to  such  Distribution  Date  and  provided  that  the
          Securities   Administrator   is   reasonably   able  to  include  such
          information in the statement,  material  breaches of Group T2 Mortgage
          Loan   representations   and   warranties  of  which  the   Securities
          Administrator has knowledge or has received written notice;

               (Q) unless such  information  is otherwise  set forth in the Form
          10-D  relating  to  such  Distribution  Date  and  provided  that  the
          Securities   Administrator   is   reasonably   able  to  include  such
          information in the statement, material breaches of any covenants under
          this Agreement of which the Securities  Administrator has knowledge or
          has received written notice;

               (R)  the  Overcollateralized   Accrued  Certificate  Interest  in
          respect  of each  Class of  Overcollateralized  Certificates  for such
          Distribution  Date and any  related  Cap  Carryover  Amounts,  and the
          respective  portions thereof,  if any,  remaining unpaid following the
          distributions   made  in   respect  of  such   Certificates   on  such
          Distribution Date;

               (S) the Cap Carryover  Amounts  distributed on such  Distribution
          Date,  the amounts  remaining  after  giving  effect to  distributions
          thereof on such  Distribution  Date,  the amount of all Cap  Carryover

                                     -125-
<PAGE>
          Amounts covered by withdrawals from the Cap Carryover  Reserve Account
          and the Overcollateralized Reserve Fund on such Distribution Date;

               (T) whether a Trigger Event has occurred and is  continuing,  and
          the  cumulative  Realized  Losses as a percentage  of the Cut-off Date
          Pool Principal Balance;

               (U) the  Overcollateralization  Amount, the Overcollateralization
          Release Amount, the Overcollateralization  Deficiency and the Targeted
          Overcollateralization  Amount  as of such  Distribution  Date  and the
          Monthly Excess  Interest Amount and Monthly Excess Cashflow Amount for
          such Distribution Date;

               (V) the Principal  Remittance Amount and the Interest  Remittance
          Amount;

               (W) the  Overcollateralized  Yield Maintenance  Agreement Payment
          paid to the Overcollateralized Certificates; and

               (X) the aggregate amount of Prepayment  Charges collected or paid
          by Wells Fargo  during the related  Prepayment  Period and the amounts
          thereof allocable to the Class P Certificates.

     For all purposes of this  Agreement,  with  respect to any  Mortgage  Loan,
delinquencies  shall be determined  and reported  based on the  so-called  "MBA"
methodology  for  determining  delinquencies  on mortgage  loans  similar to the
Mortgage  Loans.  By way of example,  a Mortgage Loan would be  delinquent  with
respect to a Monthly  Payment due on a Due Date if such  Monthly  Payment is not
made by the close of business on the Mortgage  Loan's next  succeeding Due Date,
and a Mortgage Loan would be more than 30-days  delinquent  with respect to such
Monthly  Payment if such Monthly  Payment were not made by the close of business
on the Mortgage Loan's second succeeding Due Date.

     (b) No later than each  Distribution  Date, the  Securities  Administrator,
based upon  information  supplied  to it on the Master  Servicer's  Certificate,
shall make available to each Holder of a Certificate, each Rating Agency and the
Master Servicer,  a single statement  setting forth the information set forth in
Sections 5.05(a)(i) and (ii) (a "Monthly Statement").

     On each Distribution Date, the Securities  Administrator  shall prepare and
furnish to each Financial Market Service, in electronic or such other format and
media mutually agreed upon by the Securities Administrator, the Financial Market
Service and the Depositor,  the information  contained in the Master  Servicer's
Certificate described in Section 4.01 for such Distribution Date.

     The   Securities   Administrator   will  make  the  Monthly   Statement  to
Certificateholders (and, at its option, any additional files containing the same
or additional  information  in an  alternative  format)  available each month to
Certificateholders, the NIMS Insurer and other parties to this Agreement via the

                                     -126-
<PAGE>
Securities  Administrator's  Internet  website.  The Securities  Administrator's
Internet website shall initially be located at "www.ctslink.com."  Assistance in
using the website can be  obtained  by calling  the  Securities  Administrator's
customer  service  desk at (301)  815-6600.  Parties  that are unable to use the
website are entitled to have a paper copy mailed to them via first class mail by
calling  the  customer   service  desk  and  indicating   such.  The  Securities
Administrator  shall have the right to change the way the Monthly  Statements to
Certificateholders  are  distributed  in order to make  such  distribution  more
convenient  and/or  more  accessible  to the above  parties  and the  Securities
Administrator  shall  provide  timely  and  adequate  notification  to all above
parties regarding any such changes.

     Within a reasonable period of time after the end of each calendar year, the
Securities  Administrator  shall furnish to the NIMS Insurer and each Person who
at any time  during  the  calendar  year was the  Holder  of a  Certificate,  if
requested in writing by such Person, a statement  containing the information set
forth in clauses  (C) and (D) of Section  5.05(a)(i)  and clauses (C) and (R) of
Section  5.05(a)(ii),  in  each  case  aggregated  for  such  calendar  year  or
applicable  portion  thereof  during which such Person was a  Certificateholder.
Such  obligation of the  Securities  Administrator  shall be deemed to have been
satisfied  to the extent  that  substantially  comparable  information  shall be
provided by the Securities  Administrator  pursuant to any  requirements  of the
Code as from time to time in force.

     The Securities  Administrator  shall deliver to the Holders of Certificates
any reports or  information  the  Securities  Administrator  is required by this
Agreement or the Code,  Treasury  Regulations or REMIC  Provisions to deliver to
the Holders of Certificates,  and the Securities Administrator shall prepare and
provide to the Certificateholders (by mail, telephone,  or publication as may be
permitted by applicable Treasury Regulations) such other reasonable  information
as the Securities Administrator deems necessary or appropriate or is required by
the Code,  Treasury  Regulations,  and the REMIC Provisions  including,  but not
limited  to,  (i)  information  to be  reported  to the  Holder of the  Residual
Certificate for quarterly  notices on Schedule Q (Form 1066) (which  information
shall be forwarded to the Holder of the Residual  Certificate  by the Securities
Administrator),  (ii)  information to be provided to the Holders of Certificates
with respect to amounts which should be included as interest and original  issue
discount in such Holders'  gross income and (iii)  information to be provided to
all Holders of Certificates setting forth the percentage of each REMIC's assets,
determined  in  accordance  with Treasury  Regulations  using a convention,  not
inconsistent with Treasury Regulations, selected by the Securities Administrator
in its absolute discretion, that constitute real estate assets under Section 856
of the  Code,  and  assets  described  in  Section  7701(a)(19)(C)  of the Code;
provided,  however,  that in setting forth the percentage of such assets of each
REMIC created hereunder, nothing contained in this Agreement,  including without
limitation  Section 7.03 hereof,  shall be interpreted to require the Securities
Administrator  periodically  to appraise the fair market values of the assets of
the Trust Estate or to indemnify the Trust Estate or any Certificateholders from
any adverse federal,  state or local tax  consequences  associated with a change
subsequently  required  to  be  made  in  the  Depositor's  initial  good  faith
determinations  of such fair market  values (if  subsequent  determinations  are
required pursuant to the REMIC Provisions) made from time to time.

                                     -127-
<PAGE>
     Section    5.06   Tax   Returns   and   Reports   to    Certificateholders.

     (a) For federal  income tax purposes,  each REMIC created  hereunder  shall
have a taxable year ending on December 31st and shall  maintain its books on the
accrual method of accounting.

     (b) The  Securities  Administrator  shall  prepare or cause to be prepared,
shall execute or cause to be executed by such Person as is required by the Code,
Treasury Regulations or state or local tax laws,  regulations or rules and shall
file or cause to be filed with the Internal Revenue Service and applicable state
or local tax  authorities  income tax and  information  returns for each taxable
year with respect to each REMIC created hereunder containing such information at
the  times and in the  manner  as may be  required  by the  Code,  the  Treasury
Regulations or state or local tax laws, regulations, or rules, and shall furnish
or  cause  to  be   furnished   to  each  REMIC   created   hereunder   and  the
Certificateholders the schedules, statements or information at such times and in
such manner as may be required  thereby.  The Master Servicer shall provide on a
timely basis to the Securities  Administrator  or its designee such  information
with  respect  to the  assets of the Trust  Estate as is in its  possession  and
reasonably required by the Securities  Administrator to enable it to perform its
obligations  under  this  Article V.  Within 30 days of the  Closing  Date,  the
Securities  Administrator  shall  obtain  for each  REMIC  created  hereunder  a
taxpayer  identification number on Form SS-4 and any similarly required state or
local forms or as otherwise permitted by the Internal Revenue Service, and shall
furnish or cause to be furnished to the Internal Revenue  Service,  on Form 8811
and any similarly  required state or local forms or as otherwise required by the
Code or the Treasury Regulations,  the name, title, address and telephone number
of the person that Holders of the  Certificates  may contact for tax information
relating thereto, together with such additional information at the time or times
and in the  manner  required  by the  Code  or the  Treasury  Regulations.  Such
federal,  state, or local income tax and information  returns shall be signed by
the Trustee, or such other Person as may be required to sign such returns by the
Code,  the  Treasury  Regulations  or state or local tax laws,  regulations,  or
rules.

     (c) In the first federal income tax return (and any similar  required state
or local  income tax  returns)  of each REMIC  created  hereunder  for its short
taxable year ending  December  31, 2006,  REMIC status shall be elected for such
taxable year and all succeeding taxable years.

     (d) The  Securities  Administrator  will maintain or cause to be maintained
such records relating to each REMIC created hereunder, including but not limited
to records relating to the income, expenses, assets and liabilities of the Trust
Estate, and the initial fair market value and adjusted basis of the Trust Estate
property and assets  determined at such intervals as may be required by the Code
or the  Treasury  Regulations,  as may be  necessary  to prepare  the  foregoing
returns, schedules, statements or information.

     Section 5.07 Tax Matters Person.

     The Tax  Matters  Person  shall have the same  duties  with  respect to the
applicable  REMIC as those of a "tax  matters  partner"  under  Subchapter  C of
Chapter 63 of Subtitle F of the Code. The Holder of the Class 1-A-R  Certificate

                                     -128-
<PAGE>
is  hereby  designated  as the Tax  Matters  Person  for the  Shifting  Interest
Upper-Tier REMIC, the Shifting Interest Middle-Tier REMIC, the Shifting Interest
Lower-Tier  REMIC,  the Upper-Tier II REMIC and the Lower-Tier II REMIC.  By its
acceptance of the Class 1-A-R Certificate,  such Holder irrevocably appoints the
Securities  Administrator  as its agent to perform  all of the duties of the Tax
Matters Person for the Shifting Interest Upper-Tier REMIC, the Shifting Interest
Middle-Tier  REMIC, the Shifting  Interest  Lower-Tier  REMIC, the Upper-Tier II
REMIC and the Lower-Tier II REMIC.

     Section 5.08 Rights of the Tax Matters  Person in Respect of the Securities
Administrator.

     The  Securities  Administrator  shall afford the Tax Matters  Person,  upon
reasonable notice during normal business hours, access to all records maintained
by the Securities Administrator in respect of its duties hereunder and access to
officers of the Securities Administrator responsible for performing such duties.
Upon request, the Securities  Administrator shall furnish the Tax Matters Person
with its most recent  report of  condition  published  pursuant to law or to the
requirements of its supervisory or examining authority publicly  available.  The
Securities  Administrator  shall make  available to the Tax Matters  Person such
books, documents or records relating to the Securities  Administrator's services
hereunder as the Tax Matters Person shall  reasonably  request.  The Tax Matters
Person shall not have any  responsibility or liability for any action or failure
to act by the  Securities  Administrator  and is not  obligated to supervise the
performance of the Securities Administrator under this Agreement or otherwise.

     Section 5.09 REMIC Related Covenants.

     For as long as any REMIC created  hereunder shall exist,  the Trustee,  the
Securities  Administrator,  the Depositor and the Master  Servicer  shall act in
accordance  herewith  to  assure  continuing  treatment  of each  REMIC  created
hereunder  as a REMIC  and  avoid the  imposition  of tax on any  REMIC  created
hereunder. In particular:

     (a) Neither the Securities  Administrator  nor the Trustee shall create, or
permit the creation of, any  "interests" in any REMIC created  hereunder  within
the meaning of Code Section  860D(a)(2) other than the interests  represented by
the  Certificates,  the  Upper-Tier  II Regular  Interests,  the  Uncertificated
Lower-Tier  II  Interests,  the  Uncertificated  Shifting  Interest  Middle-Tier
Interests and the Uncertificated Shifting Interest Lower-Tier Interests.

     (b) Except as otherwise  provided in the Code,  (i) the  Depositor  and the
Master  Servicer  shall not contribute to the Trust Estate and the Trustee shall
not accept property unless  substantially all of the property held in each REMIC
constitutes either "qualified  mortgages" or "permitted  investments" as defined
in Code Sections 860G(a)(3) and (5), respectively, and (ii) no property shall be
contributed,  or deemed  contributed,  to any REMIC created  hereunder after the
start-up day unless such contribution  would not subject the Trust Estate to the
100% tax on contributions to a REMIC created hereunder after the start-up day of
such REMIC imposed by Code Section 860G(d).

     (c) Neither the Securities Administrator,  on behalf of the Trust Estate or
the  Trustee,  nor the  Trustee  shall  accept on  behalf  of any REMIC  created
hereunder any fee or other  compensation for services and none of the Securities

                                      -129
<PAGE>
Administrator,  the Trustee or the Master  Servicer shall knowingly  accept,  on
behalf of the Trust Estate any income from assets other than those  permitted to
be held by a REMIC.

     (d) Neither the Securities Administrator,  on behalf of the Trust Estate or
the Trustee, nor the Trustee shall sell or permit the sale of all or any portion
of the Mortgage  Loans (other than in  accordance  with  Sections 2.02 or 2.04),
unless such sale is  pursuant to a  "qualified  liquidation"  of the  applicable
REMIC as defined in Code Section 860F(a)(4)(A) and in accordance with Article X.

     (e) The Securities  Administrator  shall maintain books with respect to the
Trust and each REMIC created hereunder on a calendar year taxable year basis and
on an accrual basis.

None of the Master Servicer, the Securities  Administrator or  the Trustee shall
engage  in  a  "prohibited  transaction" (as  defined  in  Code  Section 860F(a)
(2)), except that, with the prior written consent of the Master Servicer and the
Depositor, the Securities  Administrator  may engage in the activities otherwise
prohibited by the foregoing  paragraphs (b), (c) and  (d);  provided  that  the
Master  Servicer  shall  have  delivered  to the  Securities  Administrator  an
Opinion of Counsel to the effect  that such  transaction  will not result in the
imposition of a tax on any REMIC created  hereunder and will not  disqualify any
such REMIC from treatment as a REMIC;  and,  provided  further,  that the Master
Servicer  shall  have   demonstrated  to  the  satisfaction  of  the  Securities
Administrator  that such  action  will not  adversely  affect  the rights of the
Holders  of the  Certificates  and the  Securities  Administrator  and that such
action will not  adversely  impact the rating of the  Certificates.  None of the
Master  Servicer,  the  Securities  Administrator,  the Trustee or any  Servicer
shall,  unless the  Mortgagor is in default with respect to the Mortgage Loan or
such default is, in the judgment of the Servicer, reasonably foreseeable, permit
any  modification  with respect to any  Mortgage  Loan that would (i) change the
Mortgage Rate, defer or forgive the payment thereof of any principal or interest
payments,  reduce the Stated  Principal  Balance  (except for actual payments of
principal) or extend the final maturity date with respect to such Mortgage Loan,
(ii)  affect  adversely  the  status of any REMIC as a REMIC or (iii)  cause any
REMIC to be subject to a tax on  "prohibited  transactions"  or  "contributions"
pursuant to the REMIC  Provisions.  Further,  none of the Master  Servicer,  the
Securities  Administrator,   the  Trustee  or  any  Servicer  shall  permit  any
modification  with  respect to any  Mortgage  Loan that would both (x) effect an
exchange or reissuance  of such  Mortgage Loan under Section  1.860G 2(b) of the
Treasury  regulations  and (y) cause any  REMIC  constituting  part of the Trust
Estate to fail to qualify as a REMIC under the Code or the imposition of any tax
on "prohibited transactions" or "contributions" after the Start-up Day under the
REMIC Provisions.

     Section 5.10 Determination of One-Month LIBOR.

     On each LIBOR  Determination  Date for a Class of LIBOR  Certificates,  the
Securities  Administrator  shall  determine  One-Month  LIBOR for the applicable
Distribution  Date on the  basis of the  British  Bankers'  Association  ("BBA")
"Interest  Settlement  Rate" for one-month  deposits in U.S. Dollars as found on
Telerate  page 3750 as of 11:00 A.M.  London  time on such  LIBOR  Determination
Date. As used herein,  "Telerate page 3750" means the display designated as page
3750 on the Reuters Telerate Service.

                                      -130-
<PAGE>
     If on any LIBOR Determination Date for a Class of LIBOR  Certificates,  the
Securities  Administrator is unable to determine One-Month LIBOR on the basis of
the  method  set  forth in the  preceding  paragraph,  One-Month  LIBOR  for the
applicable  Distribution Date will be whichever is higher of (x) One-Month LIBOR
as determined on the previous LIBOR  Determination  Date for such Class of LIBOR
Certificates or (y) the Reserve Interest Rate. The "Reserve  Interest Rate" will
be the rate per annum which the Securities Administrator determines to be either
(A) the arithmetic  mean (rounding such  arithmetic mean upwards if necessary to
the nearest whole multiple of 1/16%) of the one-month U.S.  Dollar lending rates
that New York City banks selected by the Securities  Administrator  are quoting,
on the relevant LIBOR  Determination Date, to the principal London offices of at
least two leading banks in the London  interbank market or (B) in the event that
the Securities  Administrator  can determine no such arithmetic mean, the lowest
one-month U.S.  Dollar lending rate that the New York City banks selected by the
Securities Administrator are quoting on such LIBOR Determination Date to leading
European banks.

     If on any LIBOR Determination Date for a Class of LIBOR  Certificates,  the
Securities  Administrator  is required  but is unable to  determine  the Reserve
Interest Rate in the manner provided in the preceding paragraph, One-Month LIBOR
for the applicable  Distribution  Date will be One-Month  LIBOR as determined on
the previous LIBOR Determination Date for such Class of LIBOR Certificates,  or,
in the case of the first  LIBOR  Determination  Date for  which  the  Securities
Administrator is required to determine One-Month LIBOR, 5.3200%.

     The  establishment of One-Month LIBOR by the Securities  Administrator  and
the Securities  Administrator's  subsequent calculation of the rates of interest
applicable to each of the LIBOR  Certificates  in the absence of manifest error,
will be final and binding.  After a LIBOR  Determination  Date,  the  Securities
Administrator  shall  provide the  Pass-Through  Rates (in the case of the Class
1-A-1,  Class 1-A-2 and Class 1-A-3  Certificates)  or the Certificate  Interest
Rate (in the case of the Class T2-A-2  Certificates)  of the LIBOR  Certificates
for the  related  Distribution  Date to  Beneficial  Owners or  Holders of LIBOR
Certificates who place a telephone call to the Securities Administrator at (301)
815-6600 and make a request therefor.

     Section  5.11  Master  Servicer,   Securities   Administrator  and  Trustee
Indemnification.

     (a) In the event  that any REMIC  created  hereunder  fails to qualify as a
REMIC, loses its status as a REMIC, or incurs federal, state or local taxes as a
result of a prohibited  transaction or prohibited  contribution  under the REMIC
Provisions  due solely to (i) the  negligent  performance  by the Trustee of its
duties and  obligations  set forth herein or (ii) any state,  local or franchise
taxes  imposed  upon the Trust Estate as a result of the location of the Trustee
or any co-trustee,  the Trustee shall indemnify the Trust Estate against any and
all losses, claims,  damages,  liabilities or expenses ("Losses") resulting from
such negligence,  including,  without limitation, any reasonable attorneys' fees
imposed  on or  incurred  as a  result  of a  breach  of  the  Trustee's  or any
co-trustee's covenants.

     (b) In the event  that any REMIC  created  hereunder  fails to qualify as a
REMIC, loses its status as a REMIC, or incurs federal, state or local taxes as a
result of a prohibited  transaction or prohibited  contribution  under the REMIC
Provisions due solely to (i) the negligent performance by the Master Servicer of

                                     -131-
<PAGE>
its  duties  and  obligations  set  forth  herein  or (ii) any  state,  local or
franchise taxes imposed upon the Trust Estate as a result of the location of the
Master  Servicer,  the Master  Servicer shall indemnify the Trust Estate against
any  and  all  Losses  resulting  from  such  negligence,   including,   without
limitation, any reasonable attorneys' fees imposed on or incurred as a result of
a breach of the Master Servicer's covenants.

     (c) In the event  that any REMIC  created  hereunder  fails to qualify as a
REMIC, loses its status as a REMIC, or incurs federal, state or local taxes as a
result of a prohibited  transaction or prohibited  contribution  under the REMIC
Provisions  due  solely  to (i)  the  negligent  performance  by the  Securities
Administrator  of its duties and obligations set forth herein or (ii) any state,
local or  franchise  taxes  imposed  upon the  Trust  Estate  as a result of the
location of the Securities  Administrator,  the Securities  Administrator  shall
indemnify  the Trust  Estate  against  any and all  Losses  resulting  from such
negligence,  including,  without  limitation,  any  reasonable  attorneys'  fees
imposed on or incurred as a result of a breach of the Securities Administrator's
covenants.

                                   ARTICLE VI

                                THE CERTIFICATES

     Section 6.01 The Certificates.

     The Classes of Certificates  shall be  substantially  in the forms attached
hereto as Exhibits A-1AR,  A-1A1,  A-1A2,  A-1A3,  A-1A4,  A-1A5,  A-1A6, A-1A7,
A-1A8, A-1A9, A-1A10,  A-1A11,  A-1A12,  A-30IO, A-30PO, A-T2A1, A-T2A2, A-T2A3,
A-T2A4,  A-T2A5,  A-T2A6,  A-T2A7,  A-T2A8, A-T2AA, A-T2AB, B-1B1, B-1B2, B-1B3,
B-1B4, B-1B5, B-1B6, B-T2M1,  B-T2M2,  B-T2M3,  B-T2M4,  B-T2M5, B-T2M6, B-T2M7,
B-T2M8, B-T2B1, B-T2B2, B-CE, B-P and C (reverse of all Certificates) and shall,
on original  issue,  be executed by the  Securities  Administrator  and shall be
authenticated and delivered by the Securities Administrator to or upon the order
of the  Depositor  upon  receipt by the Trustee of the  documents  specified  in
Section  2.01.  The Classes of  Certificates  shall be available to investors in
minimum  denominations  of initial  Certificate  Balance  (or  initial  notional
amount) and integral  multiples in excess  thereof set forth in the  Preliminary
Statement. The minimum denomination for the Class CE Certificates shall be a 10%
Percentage  Interest in such Class.  The  Offered  Certificates  (other than the
Class 1-A-R  Certificate)  shall  initially be issued in book-entry form through
the Depository and delivered to the Depository or, pursuant to the  Depository's
instructions on behalf of the Depository to, and deposited with, the Certificate
Custodian,  and all other Classes of  Certificates  shall initially be issued in
definitive, fully-registered form.

     The  Certificates  shall be executed by manual or  facsimile  signature  on
behalf of the Securities  Administrator  by an authorized  officer or signatory.
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  Securities   Administrator   shall  bind  the   Securities   Administrator,
notwithstanding  that  such  individuals  or any of them  have  ceased  to be so
authorized  prior to the execution and delivery of such  Certificates or did not
hold such offices or positions at the date of such  Certificate.  No Certificate
shall be  entitled  to any  benefit  under this  Agreement,  or be valid for any
purpose,  unless such Certificate shall have been manually  authenticated by the
Securities Administrator substantially in the form provided for herein, and such

                                     -132-
<PAGE>
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.

     Section 6.02 Registration of Transfer and Exchange of Certificates.

     (a) The  Securities  Administrator  shall  cause to be kept at an office or
agency  in the  city in which  the  Corporate  Trust  Office  of the  Securities
Administrator  is  located a  Certificate  Register  in which,  subject  to such
reasonable regulations as it may prescribe,  the Securities  Administrator shall
provide for the  registration of Certificates  and of transfers and exchanges of
Certificates as herein provided.  The Securities  Administrator  shall initially
serve as Certificate  Registrar for the purpose of registering  Certificates and
transfers and exchanges of Certificates as herein provided.

     (b) At the option of the Certificateholders,  Certificates may be exchanged
for other  Certificates of authorized  denominations of a like Class,  tenor and
aggregate  Percentage  Interest,  upon  surrender  of  the  Certificates  to  be
exchanged  at any such  office  or  agency.  Whenever  any  Certificates  are so
surrendered  for exchange,  the Securities  Administrator  shall execute and the
Securities  Administrator  shall  authenticate and deliver the Certificates that
the  Certificateholder  making  the  exchange  is  entitled  to  receive.  Every
Certificate  presented  or  surrendered  for  transfer or exchange  shall (if so
required by the Securities  Administrator or the Certificate  Registrar) be duly
endorsed  by, or be  accompanied  by a written  instrument  of  transfer in form
satisfactory to the Securities  Administrator and the Certificate Registrar duly
executed by, the Holder thereof or its attorney duly authorized in writing.

     (c) (i) Except as provided in  paragraph  (c)(iii)  below,  the  Book-Entry
Certificates  shall at all times remain registered in the name of the Depository
or its nominee and at all times: (A) registration of the Book-Entry Certificates
may  not be  transferred  by the  Securities  Administrator  except  to  another
Depository; (B) the Depository shall maintain book-entry records with respect to
the  Certificate  Owners and with  respect to  ownership  and  transfers of such
Book-Entry  Certificates;  (C) ownership and  transfers of  registration  of the
Book-Entry  Certificates  on the books of the  Depository  shall be  governed by
applicable rules  established by the Depository;  (D) the Depository may collect
its  usual  and  customary  fees,  charges  and  expenses  from  its  Depository
Participants; (E) the Securities Administrator shall deal with the Depository as
the representative of the Certificate Owners of the Book-Entry  Certificates for
purposes of exercising the rights of Holders under this Agreement,  and requests
and  directions  for and  votes of the  Depository  shall  not be  deemed  to be
inconsistent if they are made with respect to different  Certificate Owners; and
(F) the  Securities  Administrator  may rely and  shall  be fully  protected  in
relying  upon  information  furnished  by the  Depository  with  respect  to its
Depository  Participants  and  furnished  by the  Depository  Participants  with
respect to indirect  participating  firms and persons shown on the books of such
indirect participating firms as direct or indirect Certificate Owners.

          (ii) All transfers by  Certificate  Owners of Book-Entry  Certificates
     shall  be  made  in  accordance  with  the  procedures  established  by the
     Depository  Participant or brokerage  firm  representing  such  Certificate

                                      -133-
<PAGE>
     Owner.  Each  Depository   Participant   shall  only  transfer   Book-Entry
     Certificates of Certificate  Owners it represents or of brokerage firms for
     which  it  acts  as  agent  in  accordance  with  the  Depository's  normal
     procedures.

          (iii)  If the  Depository  advises  the  Securities  Administrator  in
     writing  that the  Depository  is no  longer  willing  or able to  properly
     discharge   its   responsibilities   as  Depository   and  the   Securities
     Administrator  or the Depositor is unable to locate a qualified  successor,
     the Securities  Administrator  shall notify all Certificate  Owners through
     the Depository of the occurrence of such event and of the  availability  of
     definitive,  fully-registered  Certificates (the "Definitive Certificates")
     to such  Certificate  Owners  requesting  the same.  Upon  surrender to the
     Securities  Administrator  of the  related  Class  of  Certificates  by the
     Depository  (or by the  Certificate  Custodian,  if it holds  such Class on
     behalf  of the  Depository),  accompanied  by  the  instructions  from  the
     Depository for registration,  the Securities  Administrator shall issue the
     Definitive  Certificates.  None of the Master Servicer, the Depositor,  the
     Securities  Administrator  or the Trustee  shall be liable for any delay in
     delivery of such  instruction  and may  conclusively  rely on, and shall be
     protected in relying on, such instructions. The Depositor shall provide the
     Securities  Administrator  with an adequate  inventory of  certificates  to
     facilitate the issuance and transfer of Definitive  Certificates.  Upon the
     issuance of Definitive  Certificates,  the Securities  Administrator  shall
     recognize the Holders of the Definitive  Certificates as Certificateholders
     hereunder.

     (d) No transfer of a Private Certificate shall be made unless such transfer
is exempt from the registration  requirements of the 1933 Act and any applicable
state  securities laws or is made in accordance with the 1933 Act and such laws.
In the event of any such transfer (other than in connection with (i) the initial
transfer  of any  such  Certificate  by the  Depositor  to an  Affiliate  of the
Depositor or, in the case of the Class 1-A-R Certificate,  the first transfer by
an Affiliate of the Depositor, (ii) the transfer of any such Class CE or Class P
Certificate  to the issuer under an Indenture or the indenture  trustee under an
Indenture or (iii) a transfer of any such Class CE or Class P  Certificate  from
the issuer under an Indenture or the indenture trustee under an Indenture to the
Depositor or an Affiliate of the Depositor), (i) unless such transfer is made in
reliance on Rule 144A under the 1933 Act, the  Securities  Administrator  or the
Depositor  may  require a written  Opinion  of Counsel  (which  may be  in-house
counsel) acceptable to and in form and substance reasonably  satisfactory to the
Securities  Administrator  and the  Depositor  that  such  transfer  may be made
pursuant to an  exemption,  describing  the  applicable  exemption and the basis
therefor,  from the 1933 Act and such laws or is being made pursuant to the 1933
Act and such  laws,  which  Opinion  of  Counsel  shall not be an expense of the
Securities  Administrator or the Depositor and (ii) the Securities Administrator
shall require a certificate from the  Certificateholder  desiring to effect such
transfer  substantially  in the  form  attached  hereto  as  Exhibit  G-1  and a
certificate from such  Certificateholder's  prospective transferee substantially
in the form attached  hereto  either as Exhibit G-2A or as Exhibit  G-2B,  which
certificates  shall not be an expense  of the  Securities  Administrator  or the
Depositor;  provided that the foregoing  requirements under clauses (i) and (ii)
shall not apply to a  transfer  of a Private  Certificate  between  or among the
Depositor, the Sponsor, their affiliates or both. The Depositor shall provide to
any Holder of a Private Certificate and any prospective  transferees  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

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<PAGE>
certificate  without  registration  thereof  under the 1933 Act  pursuant to the
registration   exemption  provided  by  Rule  144A.  The  Holder  of  a  Private
Certificate  desiring to effect such transfer  shall,  and does hereby agree to,
indemnify the Securities  Administrator  and the Depositor against any liability
that may result if the  transfer  is not so exempt or is not made in  accordance
with such federal and state laws.

     (e) No  transfer  of an  ERISA  Restricted  Certificate  (other  than (i) a
transfer to the indenture  trustee under an Indenture  with respect to a related
NIM trust or (ii) a transfer from the indenture  trustee under an Indenture with
respect  to a  related  NIM  trust  to  the  Depositor  or an  Affiliate  of the
Depositor)  shall be made  unless  the  transferee  delivers  to the  Securities
Administrator  either  (i) a  representation  letter  substantially  in the form
attached  hereto as Exhibit H from the  transferee  of such  Certificate,  which
representation letter shall not be an expense of the Depositor, the Trustee, the
Securities  Administrator  or the  Master  Servicer,  or (ii) in the case of any
ERISA Restricted  Certificate (other than the Class 1-A-R Certificate) presented
for  registration  in the  name of an  employee  benefit  plan  or  arrangement,
including an individual  retirement account,  subject to ERISA,  Section 4975 of
the Code, or any federal, state or local law ("Similar Law") which is similar to
the  prohibited  transaction  provisions  of ERISA or the Code or the  fiduciary
provisions of ERISA (collectively, a "Plan"), or a person acting on behalf of or
using assets of a Plan, an Opinion of Counsel in form and substance satisfactory
to the  Securities  Administrator  to the effect that the purchase or holding of
such ERISA Restricted  Certificate will not constitute or result in a non-exempt
prohibited  transaction within the meaning of ERISA, Section 4975 of the Code or
a violation of Similar Law and will not subject the Trustee, the Depositor,  the
Securities Administrator or the Master Servicer to any obligation in addition to
those  undertaken  in this  Agreement,  which Opinion of Counsel shall not be an
expense of the Securities Administrator, the Trustee or the Master Servicer. Any
transferee of an ERISA  Restricted  Certificate that does not comply with either
clause (i) or (ii) of the preceding  sentence will be deemed to have made one of
the  representations  set forth in Exhibit H. For  purposes of clause (i) of the
second preceding sentence, such representation shall be deemed to have been made
to the  Certificate  Registrar by the  acceptance  by a  Certificate  Owner of a
Book-Entry  Certificate  of  the  beneficial  interest  in  any  such  Class  of
ERISA-Restricted  Certificates,  unless  the  Certificate  Registrar  shall have
received from the transferee an alternative representation or Opinion of Counsel
acceptable in form and substance to the Depositor. Notwithstanding anything else
to  the  contrary  herein,   any  purported  transfer  of  an  ERISA  Restricted
Certificate  to or on behalf of a Plan  without the  delivery to the  Securities
Administrator   of  an  Opinion  of  Counsel   satisfactory  to  the  Securities
Administrator as described above shall be void and of no effect.

     Neither the Securities  Administrator  nor the Certificate  Registrar shall
have any liability for  transfers of  Book-Entry  Certificates  made through the
book-entry  facilities  of the  Depository  or between  or among any  Depository
Participants   or   Certificate   Owners,   made  in  violation  of   applicable
restrictions. The Securities Administrator may rely and shall be fully protected
in relying  upon  information  furnished by the  Depository  with respect to its
Depository  Participants  and  furnished  by the  Depository  Participants  with
respect to indirect  participating  firms and Persons shown on the books of such
indirect participating firms as direct or indirect Certificate Owners.

     To the extent  permitted under  applicable law (including,  but not limited
to,  ERISA),  the  Securities  Administrator  shall be under no liability to any
Person for any registration of transfer of any ERISA Restricted Certificate that

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<PAGE>
is in fact not  permitted by this Section 6.02 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 by the Securities  Administrator in accordance with the foregoing
requirements.

     (f)  Each  Person  who has or who  acquires  any  Ownership  Interest  in a
Residual  Certificate  shall be deemed by the  acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following  provisions,  and
the  rights of each  Person  acquiring  any  Ownership  Interest  in a  Residual
Certificate are expressly subject to the following provisions:

          (i) Each  Person  holding or  acquiring  any  Ownership  Interest in a
     Residual  Certificate  shall be a Permitted  Transferee  and shall promptly
     notify the Securities  Administrator  of any change or impending  change in
     its status as a Permitted Transferee.

          (ii) No Person  shall  acquire  an  Ownership  Interest  in a Residual
     Certificate  unless  such  Ownership  Interest  is  a  pro  rata  undivided
     interest.

          (iii)  In  connection  with any  proposed  transfer  of any  Ownership
     Interest in a Residual  Certificate,  the  Securities  Administrator  shall
     require  delivery to it, in form and  substance  satisfactory  to it, of an
     affidavit  substantially  in the form attached hereto as Exhibit I from the
     proposed transferee. (iv) Notwithstanding the delivery of an affidavit by a
     proposed  transferee under clause (iii) above, if a Responsible  Officer of
     the  Securities  Administrator  has  actual  knowledge  that  the  proposed
     transferee  is not a Permitted  Transferee,  no  transfer of any  Ownership
     Interest in a Residual  Certificate  to such proposed  transferee  shall be
     effected.

          (v) No Ownership  Interest in a Residual  Certificate may be purchased
     by or transferred to any Person that is not a U.S. Person,  unless (A) such
     Person holds such Residual  Certificate in connection with the conduct of a
     trade or business within the United States and furnishes the transferor and
     the Securities  Administrator  with an effective  Internal  Revenue Service
     Form W-8ECI (or successor  thereto) or (B) the transferee  delivers to both
     the transferor and the Securities  Administrator an Opinion of Counsel from
     a nationally-recognized  tax counsel to the effect that such transfer is in
     accordance   with  the   requirements  of  the  Code  and  the  regulations
     promulgated  thereunder  and that such  transfer of a Residual  Certificate
     will not be disregarded for federal income tax purposes.

          (vi) Any attempted or purported  transfer of any Ownership Interest in
     a Residual  Certificate in violation of the provisions of this Section 6.02
     shall be absolutely null and void and shall vest no rights in the purported
     transferee.  If  any  purported  transferee  shall,  in  violation  of  the
     provisions of this Section 6.02, become a Holder of a Residual Certificate,
     then the prior  Holder of such  Residual  Certificate  that is a  Permitted
     Transferee  shall, upon discovery that the registration of transfer of such
     Residual  Certificate  was not in fact  permitted by this Section  6.02, be
     restored  to all  rights  as  Holder  thereof  retroactive  to the  date of
     registration  of  transfer of such  Residual  Certificate.  The  Securities
     Administrator   shall  be  under  no   liability  to  any  Person  for  any
     registration  of  transfer  of a Residual  Certificate  that is in fact not
     permitted by this Section 6.02 or for making any  distributions due on such
     Residual  Certificate to the Holder thereof or taking any other action with
     respect to such Holder under the provisions of the Agreement so long as the
     transfer  was  registered  in  accordance   with  this  Section  6.02.  The

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<PAGE>
     Securities  Administrator shall be entitled to recover from any Holder of a
     Residual  Certificate  that was in fact not a Permitted  Transferee at the
     time such  distributions  were made all distributions made on such Residual
     Certificate.   Any  such  distributions  so  recovered  by  the  Securities
     Administrator   shall  be  distributed  and  delivered  by  the  Securities
     Administrator  to the prior Holder of such Residual  Certificate  that is a
     Permitted Transferee.

          (vii) If any Person  other than a Permitted  Transferee  acquires  any
     Ownership   Interest  in  a  Residual   Certificate  in  violation  of  the
     restrictions in this Section 6.02, then the Securities Administrator, based
     on  information  provided  to the  Securities  Administrator  by the Master
     Servicer,  will provide to the Internal Revenue Service, and to the Persons
     specified in Section 860E(e)(3) and (6) of the Code,  information needed to
     compute the tax imposed under  Section  860E(e) of the Code on transfers of
     residual  interests  to  disqualified  organizations.  The  expenses of the
     Securities  Administrator  under this clause (vii) shall be reimbursable by
     the Trust.

          (viii)  No  Ownership  Interest  in a  Residual  Certificate  shall be
     acquired by a Plan or any Person acting on behalf of a Plan.

     (g) No service  charge  shall be imposed  for any  transfer  or exchange of
Certificates of any Class, but the Securities  Administrator may require payment
of a sum sufficient to cover any tax or governmental  charge that may be imposed
in connection with any transfer or exchange of Certificates.

     (h) All  Certificates  surrendered  for  transfer  and  exchange  shall  be
destroyed by the Certificate Registrar.

     Section 6.03 Mutilated, Destroyed, Lost or Stolen Certificates.

     If  (a)  any  mutilated  Certificate  is  surrendered  to  the  Certificate
Registrar or the Certificate  Registrar receives evidence to its satisfaction of
the destruction, loss or theft of any Certificate, and (b) there is delivered to
the Securities  Administrator,  the Trustee,  the Depositor and the  Certificate
Registrar such security or indemnity  reasonably  satisfactory  to each, to save
each of them  harmless,  then, in the absence of actual notice to the Securities
Administrator  or the  Certificate  Registrar  that  such  Certificate  has been
acquired  by  a  bona  fide  purchaser,   the  Securities   Administrator  shall
authenticate  and  deliver,  in exchange  for or in lieu of any such  mutilated,
destroyed,  lost or stolen  Certificate,  a new Certificate of like tenor, Class
and Percentage Interest but bearing a number not contemporaneously  outstanding.
Upon the issuance of any new  Certificate  under this  Section,  the  Securities
Administrator  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 Securities  Administrator  and
the Certificate Registrar) connected therewith. Any duplicate Certificate issued
pursuant to this Section shall constitute complete and indefeasible  evidence of

                                     -137-
<PAGE>
ownership in the Trust, as if originally issued, whether or not the lost, stolen
or destroyed Certificate shall be found at any time.

     Section 6.04 Persons Deemed Owners.

     Prior to due  presentation of a Certificate  for  registration of transfer,
the Depositor,  the Master Servicer, the Trustee, the Securities  Administrator,
the Certificate  Registrar and any agent of the Depositor,  the Master Servicer,
the Trustee, the Securities Administrator or the Certificate Registrar may treat
the  Person in whose name any  Certificate  is  registered  as the owner of such
Certificate for the purpose of receiving  distributions pursuant to Section 5.01
and for all other purposes  whatsoever,  and none of the  Depositor,  the Master
Servicer, the Trustee, the Securities Administrator,  the Certificate Registrar,
the NIMS  Insurer  or any  agent of the  Depositor,  the  Master  Servicer,  the
Trustee,  the  Securities  Administrator,  the NIMS  Insurer or the  Certificate
Registrar shall be affected by notice to the contrary.

                                   ARTICLE VII

                      THE DEPOSITOR AND THE MASTER SERVICER

     Section  7.01  Respective  Liabilities  of the  Depositor  and  the  Master
Servicer.

     The  Depositor and the Master  Servicer  shall each be liable in accordance
herewith only to the extent of the  obligations  specifically  and  respectively
imposed upon and undertaken by the Depositor and the Master Servicer herein.  By
way of  illustration  and not  limitation,  the  Depositor is not liable for the
master servicing and  administration  of the Mortgage Loans, nor is it obligated
by Section 8.01 to assume any obligations of the Master Servicer or to appoint a
designee to assume such  obligations,  nor is it liable for any other obligation
hereunder  that it may,  but is not  obligated  to,  assume  unless it elects to
assume such obligation in accordance herewith.

     Section  7.02  Merger  or  Consolidation  of the  Depositor  or the  Master
Servicer.

     The  Depositor  and the Master  Servicer  will each keep in full effect its
existence,  rights and franchises as a separate  entity under the laws governing
its  organization,  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,  the Certificates or any of the Mortgage Loans
and to perform its respective duties under this Agreement.

     Any Person into which the Depositor or the Master Servicer may be merged or
consolidated,  or any corporation  resulting from any merger or consolidation to
which the  Depositor  or the  Master  Servicer  shall be a party,  or any Person
succeeding to the business of the Depositor or the Master Servicer, shall be the
successor  of the  Depositor  or  the  Master  Servicer,  as the  case  may  be,
hereunder,  without the  execution  or filing of any paper or any further act on
the  part  of  any  of the  parties  hereto,  anything  herein  to the  contrary
notwithstanding;  provided,  however,  that the successor or surviving Person to
the Master  Servicer  shall be qualified to service  mortgage loans on behalf of
Fannie Mae or Freddie Mac.

                                     -138-
<PAGE>
     In  connection  with the  succession  to the  Master  Servicer  under  this
Agreement  by any Person (i) into  which the  Master  Servicer  may be merged or
consolidated,  or (ii)  which may be  appointed  as a  successor  to the  Master
Servicer,  the Master  Servicer shall notify the Depositor of such succession or
appointment and shall furnish to the Depositor and the Securities  Administrator
in writing and in form and substance  reasonably  satisfactory  to the Depositor
and the Securities  Administrator,  all information reasonably necessary for the
Securities  Administrator  to accurately and timely report,  pursuant to Section
3.22(d),  the event under Item 6.02 of Form 8-K pursuant to the Exchange Act (if
such reports  under the Exchange Act are required to be filed under the Exchange
Act).

     Section 7.03 Limitation on Liability of the Depositor,  the Master Servicer
and Others.

     None  of the  Depositor,  the  Master  Servicer  or  any of the  directors,
officers,  employees or agents of the Depositor or of the Master  Servicer shall
be under any  liability  to the Trust Estate or the  Certificateholders  for any
action  taken or for  refraining  from the  taking of any  action in good  faith
pursuant to this Agreement, or for errors in judgment;  provided,  however, that
this provision shall not protect the Depositor,  the Master Servicer or any such
Person  against any breach of warranties or  representations  made herein or any
liability which would otherwise be imposed by reason 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 Master
Servicer and any  director,  officer,  employee or agent of the Depositor 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  Master  Servicer  and any  director,  officer,
employee or agent of the Depositor or the Master  Servicer  shall be indemnified
by the Trust  Estate and held  harmless  against any loss,  liability or expense
incurred in connection  with any legal action  relating to this Agreement or the
Certificates,  other than any loss, liability or expense 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.  Neither of the Depositor nor the
Master Servicer shall be under any obligation to appear in,  prosecute or defend
any legal action which is not  incidental  to its  respective  duties under this
Agreement  and which in its opinion may involve it in any expense or  liability;
provided,  however,  that  the  Depositor  or  the  Master  Servicer  may in its
discretion undertake any such action which it may deem necessary or desirable in
respect to this  Agreement  and the rights and duties of the parties  hereto and
the  interests of the  Certificateholders  hereunder.  In such event,  the legal
expenses and costs of such action and any liability resulting therefrom shall be
expenses,  costs and liabilities of the Trust Estate (except any expenses, costs
or  liabilities  incurred  as a  result  of any  breach  of  representations  or
warranties of the related party or by reason of willful  misfeasance,  bad faith
or gross  negligence in the  performance of duties of such party hereunder or by
reason of reckless disregard of obligations and duties of such party hereunder),
and  the  Depositor  and the  Master  Servicer  shall  each  be  entitled  to be
reimbursed therefor out of amounts attributable to the applicable Mortgage Loans
on deposit in the Master  Servicer  Custodial  Account,  as  provided by Section
3.11.

     Section 7.04 Depositor and Master Servicer Not to Resign.

                                     -139-
<PAGE>
     Subject to the  provisions of Section  7.02,  neither the Depositor nor the
Master  Servicer shall resign from its respective  obligations and duties hereby
imposed on it except upon  determination that its duties hereunder are no longer
permissible  under  applicable  law.  Any  such  determination   permitting  the
resignation  of the  Depositor or the Master  Servicer  shall be evidenced by an
Opinion of Counsel to such effect delivered to the Securities Administrator.  No
such  resignation  by the  Master  Servicer  shall  become  effective  until the
Securities  Administrator or a successor Master Servicer shall have assumed such
Master  Servicer's  responsibilities  and obligations in accordance with Section
8.05 hereof.

                                   ARTICLE VIII

                                     DEFAULT

     Section 8.01 Events of Default.

     If any one of the following events ("Events of Default") shall occur and be
continuing:

     (a) any failure by the Master  Servicer to remit amounts to the  Securities
Administrator for deposit into the Certificate  Account in the amount and manner
provided  herein so as to enable the Securities  Administrator  to distribute to
Holders of Certificates  any payment required to be made under the terms of such
Certificates  and this Agreement  which  continues  unremedied by 12:00 P.M. New
York time on the related Distribution Date; or

     (b) failure on the part of the Master  Servicer  duly to observe or perform
in any material respect any other covenants or agreements of the Master Servicer
set  forth  in the  Certificates  or in  this  Agreement,  which  covenants  and
agreements  continue  unremedied for a period of 30 days after the date on which
written  notice of such failure,  requiring the same to be remedied,  shall have
been given to the Master Servicer by the Securities Administrator,  the Trustee,
the NIMS Insurer or the Depositor, or to the Master Servicer, the Depositor, the
Securities  Administrator,  the NIMS  Insurer  and the Trustee by the Holders of
Certificates  evidencing  Voting  Rights  aggregating  not less  than 25% of all
Certificates affected thereby; or

     (c) the  entry of a decree  or order by a court or  agency  or  supervisory
authority  having  jurisdiction  in  the  premises  for  the  appointment  of  a
conservator,  receiver or liquidator in any  insolvency,  readjustment  of debt,
marshalling of assets and liabilities or similar  proceedings against the Master
Servicer, or for the winding up or liquidation of the Master Servicer's affairs,
and the  continuance  of any such decree or order  unstayed  and in effect for a
period of 60 consecutive days; or

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

                                     -140-
<PAGE>
     (e) failure by the Master  Servicer to duly  perform,  within the  required
time period,  its obligations under Section 3.20,  Section 3.21 or Section 3.22;
or

     (f) failure by the Master Servicer to make a Periodic  Advance  required to
be made by it  pursuant  to  Section  3.19 by 5:00  P.M.  New  York  time on the
Business Day preceding the related Distribution Date.

then,  (i) in the case of Event of Default  described in clauses (a) through (e)
hereof,  so long as such  Event of Default is  actually  known by a  Responsible
Officer of the Trustee or the  Depositor and shall not have been remedied by the
Master  Servicer,  either the Trustee or the Depositor may, and at the direction
of the Holders of  Certificates  evidencing  Voting Rights  aggregating not less
than 51% of all  Certificates  affected  thereby shall,  by notice then given in
writing to the Master  Servicer (and to the Trustee,  if given by the Depositor,
and to the Depositor, if given by the Trustee),  terminate all of the rights and
obligations of the Master  Servicer under this Agreement and (ii) in the case of
an Event of Default  described  in clause (f)  hereof,  so long as such event is
known by a Responsible Officer of the Trustee, the Trustee shall be obligated to
make such Periodic  Advance and then, so long as such Event of Default shall not
have been remedied by 5:00 P.M. New York time on the related  Distribution  Date
(including  the  reimbursement  to the  Trustee  by the  Master  Servicer,  with
interest  thereon at the Prime Rate (as set forth in The Wall  Street  Journal),
for any Periodic  Advance made),  the Trustee may, by notice given in writing to
the  Master  Servicer  and  the  Depositor,  terminate  all  of the  rights  and
obligations of the Master Servicer under this Agreement. On or after the receipt
by the Master  Servicer of such written  notice and subject to Section 8.05, all
authority and power of the Master  Servicer under this  Agreement,  whether with
respect to the  Certificates  or the Mortgage Loans or otherwise,  shall pass to
and be vested in the Trustee pursuant to and under this Section 8.01 and Section
8.05, unless and until such time as the Trustee shall appoint a successor Master
Servicer  pursuant to Section  8.05,  and,  without  limitation,  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  of the  applicable  Mortgage  Loans and
related documents, or otherwise,  including, without limitation, the recordation
of the  assignments of the applicable  Mortgage Loans to it. The Master Servicer
agrees to  cooperate  with the  Trustee  in  effecting  the  termination  of the
responsibilities and rights of the Master Servicer hereunder, including, without
limitation, the transfer to the Trustee for the administration by it of all cash
amounts that have been deposited by the Master  Servicer in the Master  Servicer
Custodial Account or thereafter  received by the Master Servicer with respect to
the Mortgage Loans.  Upon obtaining notice or knowledge of the occurrence of any
Event of  Default,  the Person  obtaining  such notice or  knowledge  shall give
prompt  written  notice  thereof  to   Certificateholders  at  their  respective
addresses  appearing in the Certificate  Register and to each Rating Agency. All
costs and expenses  (including  attorneys'  fees)  incurred in  connection  with
transferring  the master  servicing data and information to the successor Master
Servicer  and amending  this  Agreement  to reflect  such  succession  as Master
Servicer  pursuant to this Section 8.01 shall be paid by the predecessor  Master
Servicer (unless the predecessor Master Servicer is the Trustee,  in which event
the previous  Master Servicer shall be responsible for payment of such costs and
expenses so long as the  transfer of  servicing is not the result of an Event of
Default on the part of the  Trustee in its  capacity as the  predecessor  Master

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Servicer).  Notwithstanding  the  termination  of the Master  Servicer  pursuant
hereto, the Master Servicer shall remain liable for any causes of action arising
out of any Event of Default occurring prior to such termination,  subject to the
terms and conditions of this Agreement.

     Section 8.02 Remedies of Trustee.

     During the  continuance  of any Event of Default,  so long as such Event of
Default  shall not have been  remedied,  the Trustee,  in addition to the rights
specified in Section 8.01,  shall have the right,  in its own name as trustee of
an express  trust,  to take all  actions  now or  hereafter  existing at law, in
equity or by statute to enforce  its  rights  and  remedies  and to protect  the
interests,  and  enforce  the rights  and  remedies,  of the  Certificateholders
(including the institution and prosecution of all judicial,  administrative  and
other  proceedings  and the  filing of  proofs  of claim and debt in  connection
therewith).  Except as otherwise expressly provided in this Agreement, no remedy
provided for by this Agreement shall be exclusive of any other remedy,  and each
and every remedy shall be cumulative  and in addition to any other remedy and no
delay or omission to exercise any right or remedy shall impair any such right or
remedy or shall be deemed to be a waiver of any Event of Default.

     Section 8.03 Directions by Certificateholders  and Duties of Trustee During
Event of Default.

     During the  continuance  of any Event of Default,  Holders of  Certificates
evidencing Voting Rights aggregating not less than 25% (or such other percentage
as may be required  herein) of each Class of Certificates  affected  thereby may
direct the time,  method and place of conducting  any  proceeding for any remedy
available to the Trustee,  or exercising  any trust or power  conferred upon the
Trustee under this Agreement; provided, however, that the Trustee shall be under
no  obligation  to pursue any such  remedy,  or to exercise any of the trusts or
powers vested in it by this Agreement  (including,  without limitation,  (a) the
conducting or defending of any administrative  action or litigation hereunder or
in  relation  hereto,  and (b) the  terminating  of the Master  Servicer  or any
successor  Master  Servicer  from its  rights  and  duties  as  master  servicer
hereunder) at the request, order or direction of any of the  Certificateholders,
unless such  Certificateholders  shall have  offered to the  Trustee  reasonable
security  or  indemnity  satisfactory  to it  against  the costs,  expenses  and
liabilities  which may be incurred  therein or thereby  and,  provided  further,
that,  subject to the  provisions  of Section  9.01,  the Trustee shall have the
right to decline  to follow any such  direction  if the  Trustee,  based upon an
Opinion of Counsel, determines that the action or proceeding so directed may not
lawfully be taken or if the Trustee in good faith  determines that the action or
proceeding so directed would subject the Trustee to a risk of personal liability
or be unjustly prejudicial to the non-assenting Certificateholders.

     Section 8.04 Action upon Certain  Failures of the Master  Servicer and upon
Event of Default.

     In the event that a  Responsible  Officer of the Trustee  shall have actual
knowledge of any failure of the Master Servicer  specified in Section 8.01(a) or
(b) which would become an Event of Default upon such Master  Servicer's  failure
to remedy the same after notice,  the Trustee  shall give notice  thereof to the
Master Servicer. If a Responsible Officer of the Trustee shall have knowledge of
an Event of Default, the Trustee shall give prompt written notice thereof to the

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Securities  Administrator  and the  Securities  Administrator  shall give prompt
written  notice  thereof to the  Certificateholders  in accordance  with Section
8.01.

     Section 8.05 Trustee to Act; Appointment of Successor.

     (a) (i) Within 90 days of the time the Master  Servicer (and the Trustee if
such notice of termination  is delivered by the Depositor)  receives a notice of
termination  pursuant to Section  8.01,  the Trustee (or other named  successor)
shall,  subject to Section  3.07, be the successor in all respects to the Master
Servicer  in its  capacity  as master  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 thereof, as applicable, or shall
appoint a successor pursuant to Section 3.07. Notwithstanding the foregoing, (i)
the parties hereto agree that the Trustee,  in its capacity as successor  Master
Servicer,  immediately will assume all of the obligations of the Master Servicer
to make advances  (including,  without limitation,  Advances pursuant to Section
3.19) under this  Agreement,  (ii) the  Trustee,  in its  capacity as  successor
Master  Servicer,  shall not be responsible  for the lack of information  and/or
documents  that it cannot obtain through  reasonable  efforts and (iii) under no
circumstances  shall any provision of this Agreement be construed to require the
Trustee (a) acting in its capacity as  successor  to the Master  Servicer in its
obligation to make  advances  (including  Advances  pursuant to Section 3.19) to
advance, expend or risk its own funds or otherwise incur any financial liability
in the performance of its duties  hereunder if it shall have reasonable  grounds
for  believing  that such  funds are  non-recoverable,  (b) to be liable for any
losses of the Master Servicer or any acts or omissions of the predecessor Master
Servicer  hereunder,  (c) to be obligated to make  Advances if it is  prohibited
from doing so by applicable  law, (d) to be obligated to effectuate  repurchases
or  substitutions  of the  Mortgage  Loans  hereunder  or (e) to be obligated to
perform any obligation of the Master  Servicer under Section 3.20,  Section 3.21
or Section  3.22 with respect to any period of time during which the Trustee was
not the Master Servicer.  Subject to Section 8.05(b), as compensation  therefor,
the Trustee  shall be entitled to such  compensation  as the  terminated  Master
Servicer  would have been entitled to hereunder if no such notice of termination
had  been  given,  except  for  those  amounts  due to the  Master  Servicer  as
reimbursement for Advances  previously made or amounts  previously  expended and
are otherwise  reimbursable  hereunder.  Notwithstanding  the above, the Trustee
may, if it shall be unwilling so to act, or shall, if it is legally unable so to
act,  appoint,  or petition a court of competent  jurisdiction  to appoint,  any
established  housing and home finance institution having a net worth of not less
than $10,000,000 as the successor to the terminated Master Servicer hereunder in
the assumption of all or any part of the responsibilities, duties or liabilities
of the Master Servicer hereunder;  provided,  however, that any such institution
appointed as a successor  Master  Servicer shall not, as evidenced in writing by
each Rating  Agency,  adversely  affect the then current  rating of any Class of
Certificates  immediately  prior to the  termination  of the  terminated  Master
Servicer.  The  appointment of a successor  Master Servicer shall not affect any
liability of the  predecessor  Master  Servicer which may have arisen under this
Agreement prior to its termination as Master  Servicer,  nor shall any successor
Master  Servicer be liable for any acts or omissions of the  predecessor  Master
Servicer or for any breach by the Master Servicer of any of its  representations
or warranties contained herein or in any related document or agreement.  Pending
appointment of a successor to a terminated Master Servicer hereunder, unless the
Trustee is  prohibited  by law from so  acting,  the  Trustee  shall act in such

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<PAGE>

capacity as provided  above.  The  Trustee  and such  successor  shall take such
action,  consistent with this Agreement, as shall be necessary to effectuate any
such  succession.  All  Master  Servicing  Transfer  Costs  shall be paid by the
predecessor  Master  Servicer  (unless the  predecessor  Master  Servicer is the
Trustee,  in which event the previous  Master  Servicer shall be responsible for
payment of such costs and  expenses so long as the  transfer of servicing is not
the result of an Event of Default on the part of the Trustee in its  capacity as
the predecessor  Master Servicer) upon presentation of reasonable  documentation
of  such  costs,  and  if  such  predecessor  Master  Servicer  defaults  in its
obligation to pay such costs,  such costs shall be paid by the successor  Master
Servicer  or the  Trustee (in which case the  successor  Master  Servicer or the
Trustee  shall be  entitled  to  reimbursement  therefor  from the assets of the
Trust).

     (b) In connection  with the  appointment of a successor  Master Servicer or
the  assumption  of the duties of the Master  Servicer,  as specified in Section
8.05(a),  the Trustee may make such  arrangements  for the  compensation of such
successor as it and such successor  shall agree;  provided,  however,  that such
compensation  shall not exceed the  compensation  of the Master  Servicer  being
replaced.

     (c) Any successor,  including the Trustee, to the Master Servicer as master
servicer  shall  during the term of its service as master  servicer  maintain in
force (i) a policy or policies of insurance covering errors and omissions in the
performance of its obligations as master servicer  hereunder and (ii) a fidelity
bond in respect of its officers,  employees and agents to the same extent as the
Master Servicer is so required pursuant to Section 3.03.

     Section 8.06 Notification to Certificateholders.

     Upon any  termination or appointment of a successor to the Master  Servicer
pursuant to this Article VIII,  the Securities  Administrator  shall give prompt
written  notice  thereof to  Certificateholders  at their  respective  addresses
appearing in the Certificate Register and to each Rating Agency.

                                   ARTICLE IX

                  THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

     Section 9.01 Duties of Trustee and Securities Administrator.

     (a)  (i)  The  Trustee  and  the  Securities  Administrator,  prior  to the
occurrence  of an Event of Default  and after the curing or waiver of all Events
of Default which may have  occurred,  each  undertake to perform such duties and
only such duties as are  specifically  set forth in this  Agreement as duties of
the Trustee and the Securities Administrator,  respectively. In case an Event of
Default has occurred of which a  Responsible  Officer of the Trustee  shall have
actual  knowledge  (which  has not been  cured or  waived),  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  reasonably  prudent
investor  would exercise or use under the  circumstances  in the conduct of such
investor's  own  affairs.  In case an Event of Default  has  occurred of which a
Responsible Officer of the Securities  Administrator shall have actual knowledge
(which  has not been  cured  or  waived),  the  Securities  Administrator  shall

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<PAGE>

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  reasonably  prudent
investor  would exercise or use under the  circumstances  in the conduct of such
investor's own affairs.

     The  Trustee  and  the  Securities  Administrator,   upon  receipt  of  all
resolutions,  certificates,  statements, opinions, reports, documents, orders or
other  instruments  furnished  to the Trustee and the  Securities  Administrator
which are  specifically  required to be furnished  pursuant to any  provision of
this  Agreement,  shall  examine them to  determine  whether they conform to the
requirements of this Agreement;  provided, however, that neither the Trustee nor
the  Securities  Administrator  shall be  responsible  for the  accuracy  of any
resolution,  certificate,  statement,  opinion, report, document, order or other
instrument furnished by the Master Servicer or the Depositor hereunder.

     (b) No  provision  of this  Agreement  shall be  construed  to relieve  the
Trustee or the  Securities  Administrator  from  liability  for its own  grossly
negligent  action,  its own grossly  negligent failure to act or its own willful
misfeasance; provided, however, that:

          (i)  Prior to the  occurrence  of an Event of  Default,  and after the
     curing or waiver of all such Events of Default which may have occurred, the
     duties and  obligations  of the  Trustee and the  Securities  Administrator
     shall be determined solely by the express provisions of this Agreement, the
     Trustee and the Securities Administrator 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 the Securities  Administrator and, in the
     absence  of bad  faith  on the  part  of the  Trustee  and  the  Securities
     Administrator,   the  Trustee   and  the   Securities   Administrator   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 the  Securities  Administrator  by the  Depositor or the
     Master Servicer and which on their face, do not contradict 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
     grossly negligent in ascertaining the pertinent facts;

          (iii)  The  Trustee  and the  Securities  Administrator  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
     Certificateholders as provided in Section 8.03;

          (iv) The Trustee shall not be charged with knowledge of any default or
     an Event of Default under Section 8.01 unless a Responsible  Officer of the
     Trustee obtains actual knowledge of such default or Event of Default or any
     Responsible  Officer of the Trustee receives written notice of such default
     or Event of Default at its Corporate Trust Office from the Master Servicer,
     the Securities Administrator,  the Depositor or any Certificateholder.  The
     Securities Administrator shall not be charged with knowledge of any default
     or an Event of Default under  Section 8.01 unless a Responsible  Officer of
     the Securities  Administrator  obtains actual  knowledge of such failure or
     event or any Responsible Officer of the Securities  Administrator  receives

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<PAGE>

     written  notice of such default or Event of Default at its Corporate  Trust
     Office  from  the  Master  Servicer,  the  Trustee,  the  Depositor  or any
     Certificateholder; and

          (v) No provision in this  Agreement  shall  require the Trustee or the
     Securities Administrator to expend or risk its own funds or otherwise incur
     any personal financial liability in the performance of any of its duties as
     Trustee or Securities Administrator hereunder, or in the exercise of any of
     its rights or powers, if the Trustee or the Securities  Administrator shall
     have  reasonable  grounds for believing that repayment of funds or adequate
     indemnity or security  satisfactory to it 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  Securities  Administrator  to
     perform,  or be responsible  for the manner of  performance  of, any of the
     obligations of the Master Servicer under this Agreement.

     (c)  Subject  to the  conditions  set forth in this  Section  9.01(c),  the
Securities  Administrator is permitted to utilize one or more  Subcontractors to
perform certain of its obligations hereunder. The Securities Administrator shall
promptly upon request  provide to the Depositor a written  description  (in form
and substance  satisfactory  to the  Depositor) of the role and function of each
Subcontractor  utilized  by the  Securities  Administrator,  specifying  (i) the
identity of each such Subcontractor that is a Servicing Function Participant and
(ii) which  elements of the Servicing  Criteria will be addressed in Assessments
of Compliance provided by each Servicing Function Participant. As a condition to
the  utilization  by the  Securities  Administrator  of any  Servicing  Function
Participant,  the  Securities  Administrator  shall  cause  any  such  Servicing
Function  Participant  for the  benefit  of the  Depositor  to  comply  with the
provisions  of  Section  3.20 of this  Agreement  to the same  extent as if such
Servicing Function Participant were the Securities Administrator. The Securities
Administrator  shall be  responsible  for  obtaining  from each  such  Servicing
Function  Participant and delivering to the applicable Persons any Assessment of
Compliance  and related  Attestation  Report  required to be  delivered  by such
Servicing  Function  Participant  under  Section  3.20, in each case as and when
required to be delivered.

     Notwithstanding the foregoing,  if the Securities  Administrator  engages a
Subcontractor in connection with the performance of any of its duties under this
Agreement,  the Securities  Administrator  shall be responsible  for determining
whether such Subcontractor is an Additional Servicer.

     The Securities  Administrator  shall indemnify the Depositor,  the Sponsor,
the Trustee,  the  Custodian,  the Master  Servicer and any of their  respective
directors,  officers, employees or agents and hold them harmless against any and
all claims,  losses,  damages,  penalties,  fines,  forfeitures,  reasonable and
necessary legal fees and related costs, judgments, and any other costs, fees and
expenses  that any of them may  sustain  in any way  related  to a breach of the
Securities  Administrator's  obligation set forth in the preceding  paragraph or
the failure of the Securities  Administrator  to perform any of its  obligations
under Section 3.20, Section 3.21, Section 3.22 or this Section 9.01(c).

     (d) The Securities Administrator is hereby directed to execute and deliver,
on behalf of the Trust, the Yield Maintenance Agreements on the Closing Date and

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<PAGE>

to enforce  the  obligations  of the  Counterparty  under the Yield  Maintenance
Agreements  thereafter,  including by exercising  any right that the  Securities
Administrator may have to designate an "early  termination date" under the Yield
Maintenance  Agreements  upon the  occurrence  of an  "event  of  default"  or a
"termination  event"  thereunder.  Upon the occurrence of an "early  termination
date"  under  a  Yield  Maintenance  Agreement,  and  at  the  direction  of the
Depositor,  the Securities Administrator shall use reasonable efforts to replace
such Yield Maintenance Agreement with one that is furnished by a replacement for
the  Counterparty   acceptable  to  each  Rating  Agency,   and  the  Securities
Administrator  shall  hold  in  trust  any  amount  that  is  paid  to it by the
Counterparty  in respect  of any such  "early  termination  date" and apply such
amount to the purchase of the related replacement. If any portion of such amount
cannot be so used  (either  because a  replacement  for such  Yield  Maintenance
Agreement  is not  available  or such  amount  exceeds the amount  necessary  to
purchase such  replacement),  the  Securities  Administrator  shall deposit such
portion in the  applicable  Reserve  Fund.  If such  amount is  insufficient  to
purchase a replacement  for such Yield  Maintenance  Agreement,  the  Securities
Administrator  shall  apply  such  amount  to  replace  as much  of  such  Yield
Maintenance  Agreement  as it is possible to replace  with such  amount.  If the
Counterparty  transfers  its rights and  obligations  under a Yield  Maintenance
Agreement  to  another   party  in  accordance   therewith  or  the   Securities
Administrator  replaces a Yield Maintenance Agreement with one that is furnished
by a  replacement  for the  Counterparty  acceptable  to each  Rating  Agency in
accordance with this Agreement,  then the Securities Administrator shall execute
and deliver the related  replacement for, or novation of, such Yield Maintenance
Agreement.

     For so long as the Securities  Administrator is required to file any report
with the Commission pursuant to Section 3.22 of this Agreement, upon its receipt
from BANA of each "significance  estimate" for each Yield Maintenance  Agreement
pursuant to the Mortgage Loan Purchase Agreement,  the Securities  Administrator
shall,  on the  basis of such  "significance  estimate,"  calculate  such  Yield
Maintenance  Agreement's  "significance  percentage"  of the  Class  Certificate
Balance or aggregate Class  Certificate  Balance of the related Class or Classes
of  Certificates  as of the date of such  "significance  estimate" in accordance
with Item 1115 of Regulation AB. For the avoidance of doubt, such  "significance
percentage"  shall be a fraction,  expressed as a  percentage,  the numerator of
which is such "significance estimate" and the denominator of which is (i) in the
case of the Class  1-A-4  Yield  Maintenance  Agreement,  the Class  Certificate
Balance of the Class  1-A-4  Certificates  after  distributions  on the  related
Distribution  Date  and  (ii)  in  the  case  of  the  Overcollateralized  Yield
Maintenance  Agreement,  the aggregate Class Certificate  Balance of the Offered
Overcollateralized  Certificates and Class T2-B Certificates after distributions
on the  related  Distribution  Date.  The  Securities  Administrator  also shall
determine as of such date whether such  "significance  percentage" would require
disclosure  of financial  information  with respect to the  Counterparty  in any
report required to be filed with the Commission pursuant to Section 3.22, and if
it does,  the  Securities  Administrator  shall  make a written  request  of the
Counterparty  for such  information  in  accordance  with the Yield  Maintenance
Agreements  not later than the third  Business Day after it receives the related
"significance  estimate." Upon its receipt of such  information,  the Securities
Administrator  shall  furnish such  information  to the  Depositor  and, if such
information is approved by the Depositor,  shall include such information in the
related report as provided in Section 3.22.

     Section  9.02  Certain  Matters  Affecting  the Trustee and the  Securities
Administrator.

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<PAGE>

     Except as otherwise provided in Section 9.01:

          (i) The Trustee and the Securities  Administrator 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  and  the  manner  of  obtaining  consents  and of  evidencing  the
     authorization  of the  execution  thereof  by  Certificateholders  shall be
     subject to the  reasonable  regulations  as the Trustee and the  Securities
     Administrator, as applicable, may prescribe;

          (ii) The Trustee and the  Securities  Administrator  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;

          (iii) Neither the Trustee nor the  Securities  Administrator  shall be
     under any  obligation  to exercise any of the trusts or powers vested in it
     by this  Agreement  or to  institute,  conduct  or  defend  any  litigation
     hereunder or in relation  hereto at the request,  order or direction of any
     of the  Certificateholders,  pursuant to the provisions of this  Agreement,
     unless  such  Certificateholders  shall have  offered to the Trustee or the
     Securities  Administrator,  as the  case  may be,  reasonable  security  or
     indemnity  satisfactory  to it against the costs,  expenses and liabilities
     which may be  incurred  therein  or  thereby;  however,  subject to Section
     9.01(b)(v),  nothing  contained  herein  shall  relieve  the Trustee or the
     Securities  ------------------  Administrator  of the obligation,  upon the
     occurrence of an 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
     investor  would exercise or use under the  circumstances  in the conduct of
     such investor's own affairs;

          (iv)  Neither the Trustee nor the  Securities  Administrator  shall 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 Event of Default hereunder and after
     the curing or waiving  of all  Events of Default  which may have  occurred,
     neither the Trustee nor the Securities Administrator shall be bound to make
     any  investigation  into the facts or  matters  stated  in any  resolution,
     certificate,  statement,  instrument,  opinion,  report,  notice,  request,
     consent, order, approval, bond or other paper or document, unless requested
     in writing so to do by Holders of Certificates of any Class evidencing,  as
     to such  Class,  Percentage  Interests,  aggregating  not  less  than  50%;
     provided,  however,  that if the payment  within a  reasonable  time to the
     Trustee  or  the  Securities   Administrator  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 or the Securities  Administrator,  as the
     case may be,  not  reasonably  assured  to the  Trustee  or the  Securities
     Administrator,  as applicable,  by the security afforded to it by the terms

                                     -148-
<PAGE>

     of this Agreement, the Trustee or the Securities Administrator, as the case
     may be, may require  reasonable  indemnity or security  satisfactory  to it
     against such expense or liability or payment of such estimated  expenses as
     a condition to so proceeding;

          (vi) The Trustee and the Securities Administrator may each execute any
     of the trusts or powers  hereunder or perform any duties  hereunder  either
     directly or by or through  agents,  attorneys,  accountants,  custodian  or
     independent contractor; and

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

     Section  9.03  Neither  Trustee  nor  Securities  Administrator  Liable for
Certificates or Mortgage Loans.

     The  recitals  contained  herein and in the  Certificates  (other  than the
execution of, and the authentication on the Certificates)  shall be taken as the
statements of the Depositor or the Master Servicer,  as applicable,  and neither
the Trustee nor the Securities  Administrator  assumes  responsibility for their
correctness.  Neither  the Trustee nor the  Securities  Administrator  makes any
representations  as to the validity or  sufficiency  of this Agreement or of the
Certificates  or any  Mortgage  Loans save that the Trustee  and the  Securities
Administrator  represent that,  assuming due execution and delivery by the other
parties hereto, this Agreement has been duly authorized,  executed and delivered
by it and  constitutes  its legal,  valid and  binding  obligation,  enforceable
against it in accordance with its terms, subject, as to enforcement of remedies,
to applicable insolvency, receivership,  moratorium and other laws affecting the
rights of  creditors  generally,  and to  general  principles  of equity and the
discretion of the court  (regardless of whether  enforcement of such remedies is
considered in a proceeding in equity or at law).

     Neither the Trustee nor the Securities Administrator shall at any time have
any  responsibility  or liability for or with respect to the legality,  validity
and  enforceability  of any Mortgage or any Mortgage Loan, or the perfection and
priority of any Mortgage or the  maintenance of any such perfection and priority
or for or with  respect  to the  sufficiency  of the  Trust  or its  ability  to
generate  the  payments  to be  distributed  to  Certificateholders  under  this
Agreement, including, without limitation: the existence, condition and ownership
of any  Mortgaged  Property;  the  existence  and  enforceability  of any hazard
insurance  thereon  (other  than if the Trustee  shall  assume the duties of the
Master  Servicer  pursuant to Section  8.05 and  thereupon  only for the acts or
omissions of the Trustee as the successor to the Master Servicer);  the validity
of the  assignment  of any  Mortgage  Loan to the Trustee or of any  intervening
assignment;   the   completeness  of  any  Mortgage  Loan;  the  performance  or
enforcement  of any  Mortgage  Loan (other than if the Trustee  shall assume the
duties of the Master  Servicer  pursuant to Section 8.05 and thereupon  only for
the acts or omissions of the Trustee as successor to the Master  Servicer);  the
compliance  by the  Depositor  or the  Master  Servicer  with  any  warranty  or
representation  made under this  Agreement  or in any  related  document  or the
accuracy of any such warranty or representation;  any investment of monies by or
at the  direction of the Master  Servicer or any loss  resulting  therefrom,  it
being understood that the Trustee and the Securities  Administrator shall remain
responsible for any Trust property that it may hold in its individual  capacity;

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the acts or omissions of any of the Depositor,  the Master  Servicer (other than
if the  Trustee  shall  assume  the duties of the Master  Servicer  pursuant  to
Section  8.05 and  thereupon  only for the acts or  omissions  of the Trustee as
successor to the Master  Servicer),  or any Mortgagor;  any action of the Master
Servicer  (other  than if the  Trustee  shall  assume  the  duties of the Master
Servicer  pursuant to Section 8.05 and thereupon  only for the acts or omissions
of the Trustee as  successor  to the Master  Servicer)  taken in the name of the
Trust or the Securities Administrator; the failure of the Master Servicer to act
or perform  any duties  required  of it as agent of the Trust or the  Securities
Administrator  hereunder;  or any  action  by  the  Trustee  or  the  Securities
Administrator taken at the instruction of the Master Servicer (other than if the
Trustee shall assume the duties of the Master Servicer  pursuant to Section 8.05
and thereupon  only for the acts or omissions of the Trustee as successor to the
Master Servicer);  provided,  however,  that the foregoing shall not relieve the
Trustee or the Securities  Administrator of its obligation to perform its duties
under this Agreement, including, without limitation, the Trustee's review of the
Mortgage Files pursuant to Section 2.02. The Trustee shall file any continuation
statement  with respect to any financing  statement for which the Trustee is the
secured  party  in any  public  office  at any time  required  to  maintain  the
perfection of any security interest or lien granted to it hereunder.

     Section 9.04 Trustee and  Securities  Administrator  May Own  Certificates.

     Each of the Trustee and the Securities Administrator in their individual or
any other  capacities may become the owner or pledgee of  Certificates  with the
same rights it would have if it were not Trustee or the Securities Administrator
and may otherwise deal with the Master  Servicer or any of its  affiliates  with
the same  right  it would  have if it were  not the  Trustee  or the  Securities
Administrator.

     Section  9.05  Eligibility  Requirements  for  Trustee  and the  Securities
Administrator.

     The Trustee and the Securities  Administrator  hereunder shall at all times
be (a) an  institution  the deposits of which are fully  insured by the FDIC and
(b) a corporation or banking association  organized and doing business under the
laws of the United States of America or of any State, authorized under such laws
to exercise corporate trust powers, having a combined capital and surplus of not
less than $50,000,000.00 and subject to supervision or examination by Federal or
State  authority and (c) with respect to every  successor  trustee or securities
administrator  hereunder either an institution (i) the long-term  unsecured debt
obligations of which are rated at least "A2" by Moody's and "A" by Fitch and S&P
or (ii) whose serving as Trustee or Securities Administrator hereunder would not
result  in the  lowering  of the  ratings  originally  assigned  to any Class of
Certificates. The Trustee shall not be an affiliate of the Depositor, the Master
Servicer or any Servicer.  If such corporation or banking association  publishes
reports of condition at least annually,  pursuant to law or to the  requirements
of the aforesaid  supervising or examining  authority,  then for the purposes of
this Section  9.05,  the  combined  capital and surplus of such  corporation  or
banking  association  shall be deemed to be its combined  capital and surplus as
set forth in its most recent  report of condition so  published.  The  principal
office of the Trustee and the Securities  Administrator  (other than the initial
Trustee or Securities  Administrator)  shall be in a state with respect to which
an  Opinion  of  Counsel  has been  delivered  to such  Trustee at the time such
Trustee  or  Securities   Administrator  is  appointed   Trustee  or  Securities
Administrator  to the effect that the Trust will not be a taxable  entity  under

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<PAGE>

the  laws of such  state.  In case at any  time the  Trustee  or the  Securities
Administrator  shall cease to be eligible in  accordance  with the  provision of
this Section 9.05, the Trustee or the Securities Administrator,  as the case may
be,  shall  resign  immediately  in the manner and with the effect  specified in
Section 9.06.

     The  Securities  Administrator  (i) may not be an  originator,  the  Master
Servicer,  Servicer,  the Depositor or an affiliate of the Depositor  unless the
Securities  Administrator is in an institutional trust department,  (ii) must be
authorized to exercise corporate trust powers under the laws of its jurisdiction
of  organization,  and (iii)  must be either an  institution  (a) the  long-term
unsecured debt obligations of which are rated at least "A2" by Moody's, at least
"A" by S&P and at least  "A" by Fitch  and or (b) whose  serving  as  Securities
Administrator  hereunder  would  not  result  in the  lowering  of  the  ratings
originally  assigned to any Class of  Certificates.  If no successor  Securities
Administrator  shall have been  appointed  and shall have  accepted  appointment
within 60 days after the  Securities  Administrator  ceases to be the Securities
Administrator  pursuant to this Section 9.05, then the Trustee shall perform the
duties   of  the   Securities   Administrator   pursuant   to  this   Agreement.
Notwithstanding  the above, the Trustee may, if it shall be unwilling so to act,
or shall,  if it is legally  unable so to act,  appoint,  or petition a court of
competent  jurisdiction to appoint, an institution  qualified under Section 9.05
hereof  as  the  successor  to the  Securities  Administrator  hereunder  in the
assumption of all or any part of the responsibilities,  duties or liabilities of
a  Securities  Administrator  hereunder;   provided,   however,  that  any  such
institution  appointed  as  successor  Securities  Administrator  shall not,  as
evidenced in writing by each Rating  Agency,  adversely  affect the then current
rating of any Class of Certificates  immediately prior to the termination of the
Securities  Administrator.  The Trustee shall notify the Rating  Agencies of any
change of the Securities Administrator.

     Section  9.06  Resignation  and  Removal  of  Trustee  and  the  Securities
Administrator.

     The Trustee or the Securities  Administrator  may at any time resign and be
discharged from the trust hereby created by giving written notice thereof to the
Master  Servicer,  the NIMS Insurer and the Depositor and mailing a copy of such
notice to all Holders of record. The Trustee or the Securities Administrator, as
applicable,  shall also mail a copy of such notice of resignation to each Rating
Agency.  Upon receiving such notice of resignation,  the Depositor shall use its
best  efforts to promptly  appoint a mutually  acceptable  successor  Trustee or
Securities  Administrator,  as applicable,  by written instrument, in duplicate,
one copy of which  instrument  shall be  delivered to the  resigning  Trustee or
Securities Administrator,  as applicable,  and one copy to the successor Trustee
or  Securities  Administrator,   as  applicable.  If  no  successor  Trustee  or
Securities  Administrator,  as the case may be, shall have been so appointed and
shall have accepted  appointment  within 30 days after the giving of such notice
of resignation,  the resigning Trustee or Securities  Administrator may petition
any court of competent  jurisdiction for the appointment of a successor  Trustee
or Securities Administrator.

     If at any time the Trustee or  Securities  Administrator  shall cease to be
eligible in  accordance  with the  provisions  of Section 9.05 and shall fail to
resign after written request therefor by the Master Servicer,  or if at any time
the Trustee or the Securities Administrator shall become incapable of acting, or
shall be adjudged a bankrupt or  insolvent,  or a receiver of the Trustee or the
Securities  Administrator or of their respective property shall be appointed, or
any public officer shall take charge or control of the Trustee or the Securities

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<PAGE>

Administrator  or of their  respective  property  or affairs  for the purpose of
rehabilitation,  conservation or  liquidation,  or if at any time the Securities
Administrator has failed to duly perform,  within the required time period,  its
obligations  under Section 3.20,  Section 3.21 or Section 3.22,  then the Master
Servicer may remove the Trustee or the Securities Administrator, as the case may
be, and  appoint a  successor  trustee or  securities  administrator  by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
Trustee or the Securities Administrator,  as applicable, so removed and one copy
to the successor.

     The  Holders  of  Certificates  evidencing  not less than 50% of the Voting
Rights may at any time remove the  Trustee or the  Securities  Administrator  by
written  instrument  or  instruments  delivered  to the Master  Servicer and the
Trustee or the  Securities  Administrator,  as applicable;  the Master  Servicer
shall  thereupon  use  their  best  efforts  to  appoint a  mutually  acceptable
successor Trustee or Securities Administrator, as the case may be, in accordance
with this Section 9.06.

     Any  resignation or removal of the Trustee or the Securities  Administrator
and appointment of a successor Trustee pursuant to any of the provisions of this
Section  9.06 shall become  effective  upon  acceptance  of  appointment  by the
successor Trustee or Securities  Administrator,  as the case may be, as provided
in Section 9.07.

     Notwithstanding  anything  to the  contrary  contained  herein,  the Master
Servicer and the Securities Administrator shall at all times be the same Person.

     Section 9.07 Successor Trustee or Securities Administrator.

     Any successor Trustee or successor  Securities  Administrator  appointed as
provided in Section 9.06 shall  execute,  acknowledge  and deliver to the Master
Servicer  and  to  its  predecessor  Trustee  or  Securities  Administrator,  as
applicable,  an instrument accepting such appointment  hereunder,  and thereupon
the   resignation   or  removal  of  the   predecessor   Trustee  or  Securities
Administrator  shall become  effective and such successor  Trustee or Securities
Administrator,  as the case may be, without any further act, deed or conveyance,
shall become fully vested with all the rights, powers, duties and obligations of
its predecessor hereunder, with like effect as if originally named as Trustee or
Securities  Administrator,  as applicable,  herein.  The predecessor  Trustee or
Securities  Administrator shall duly assign,  transfer,  deliver and pay over to
the successor Trustee or Securities Administrator, as the case may be, the whole
of the Mortgage Files and related documents and statements held by it hereunder,
together with all  instruments  of transfer and  assignment  or other  documents
properly executed as may be reasonably required to effect such transfer and such
of the  records  or copies  thereof  maintained  by the  predecessor  Trustee or
Securities  Administrator  in the  administration  hereof  as may be  reasonably
requested by the successor Trustee or Securities Administrator,  as the case may
be, and shall thereupon be discharged from all duties and responsibilities under
this Agreement; provided, however, that if the predecessor Trustee or Securities
Administrator  has been removed pursuant to the third paragraph of Section 9.06,
all reasonable expenses of the predecessor  Trustee or Securities  Administrator
incurred in complying with this Section 9.07 shall be reimbursed by the Trust.

                                     -152-
<PAGE>

     No successor Trustee or Securities  Administrator  shall accept appointment
as provided in this  Section  9.07 unless at the time of such  appointment  such
successor  Trustee or  Securities  Administrator,  as the case may be,  shall be
eligible under the provisions of Section 9.05. Upon acceptance of appointment by
a successor Trustee or Securities  Administrator,  as applicable, as provided in
this Section 9.07,  the Master  Servicer  shall  cooperate to mail notice of the
succession  of such  Trustee or  Securities  Administrator,  as the case may be,
hereunder to the NIMS Insurer, all Holders of Certificates at their addresses as
shown in the  Certificate  Register  and to each  Rating  Agency.  If the Master
Servicer  fails  to mail  such  notice  within  ten  days  after  acceptance  of
appointment by the successor Trustee or Securities Administrator,  the successor
Trustee or Securities Administrator, as the case may be, shall cause such notice
to be mailed at the expense of the Master Servicer.

     Section   9.08   Merger  or   Consolidation   of  Trustee   or   Securities
Administrator.

     Any corporation or banking association into which either the Trustee or the
Securities  Administrator  may be merged or  converted  or with  which it may be
consolidated,  or any  corporation  or banking  association  resulting  from any
merger,  conversion  or  consolidation  to which the  Trustee or the  Securities
Administrator  shall be a  party,  or any  corporation  or  banking  association
succeeding to all or  substantially  all of the corporate  trust business of the
Trustee or the Securities  Administrator,  shall be the successor of the Trustee
or the Securities Administrator,  as applicable,  hereunder, if such corporation
or banking association is eligible under the provisions of Section 9.05, 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.  In
connection  with the succession to the Trustee or the  Securities  Administrator
under this  Agreement by any Person (i) into which the Trustee or the Securities
Administrator may be merged or consolidated, or (ii) which may be appointed as a
successor  to the Trustee or the  Securities  Administrator,  the Trustee or the
Securities Administrator, as the case may be, shall notify the Depositor of such
succession or  appointment  and shall furnish to the Depositor in writing and in
form and substance  reasonably  satisfactory  to the Depositor,  all information
reasonably  necessary for the Securities  Administrator to accurately and timely
report,  pursuant  to  Section  3.22(d),  the event  under Item 6.02 of Form 8-K
pursuant  to the  Exchange  Act (if such  reports  under  the  Exchange  Act are
required to be filed under the Exchange Act).

     Section   9.09    Appointment   of   Co-Trustee   or   Separate    Trustee.

     Notwithstanding  any of the provisions hereof, at any time, for the purpose
of meeting any legal  requirements  of any  jurisdiction  in which any Mortgaged
Property may at the time be located or for any other reason, 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
as co-trustee or separate trustee of all or any part of the Trust Estate, and to
vest in such  Person  or  Persons,  in such  capacity,  such  title to the Trust
Estate, or any part thereof, and, subject to the other provision of this Section
9.09, such powers, duties, obligations, rights and trusts as the Master Servicer
and the Trustee  may  consider  necessary  or  desirable.  If one or both of the
Master Servicer shall not have joined in such appointment  within ten days after
the receipt by it of a request to do so, the Trustee  alone shall have the power
to make such  appointment.  No co-trustee or separate trustee hereunder shall be

                                     -153-
<PAGE>

required to meet the terms of eligibility  as a successor  Trustee under Section
9.05  and  no  notice  to  Holders  of   Certificates   of  the  appointment  of
co-trustee(s)  or separate  trustee(s) shall be required under Section 9.07. The
Securities  Administrator shall be responsible for the fees of any co-trustee or
separate trustee appointed hereunder.

     In the case of any appointment of a co-trustee or separate trustee pursuant
to this Section 9.09, 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 (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 Estate 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.  No trustee
hereunder  shall be held  personally  liable by reason of any act or omission of
any  other  trustee  hereunder;  provided,  however,  that no  appointment  of a
co-trustee  or  separate  trustee  hereunder  shall  relieve  the Trustee of its
obligations hereunder.

     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 IX. 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.

     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 become incapable of acting,  resign or be removed,  or shall be adjudged a
bankrupt or insolvent,  or a receiver of its property shall be appointed, or any
public  officer shall take charge or control of such trustee or co-trustee or of
its  property  or affairs  for the purpose of  rehabilitation,  conservation  or
liquidation, 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 9.10 Authenticating Agents.

     The Securities  Administrator may appoint one or more authenticating agents
("Authenticating  Agents")  that  shall be  authorized  to act on  behalf of the
Securities  Administrator  in  authenticating  or  countersigning  Certificates.
Initially,  the  Authenticating  Agent shall be Wells Fargo Bank, N.A.  Wherever
reference is made in this Agreement to the  authentication  or countersigning of
Certificates by the Securities  Administrator or the Securities  Administrator's
certificate of authentication or countersigning,  such reference shall be deemed
to  include  authentication  or  countersigning  on  behalf  of  the  Securities

                                     -154-
<PAGE>

Administrator by an Authenticating  Agent and a certificate of authentication or
countersignature  executed  on  behalf  of the  Securities  Administrator  by an
Authenticating Agent. Each Authenticating Agent must be acceptable to the Master
Servicer and must be a corporation  or banking  association  organized and doing
business under the laws of the United States of America or of any State,  having
a place of business in New York, New York, having a combined capital and surplus
of at least  $15,000,000,  authorized under such laws to do a trust business and
subject to supervision or examination by Federal or State authorities.

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

     Any Authenticating Agent may at any time resign by giving written notice of
resignation  to the Securities  Administrator  and to the Master  Servicer.  The
Securities   Administrator   may  at  any  time  terminate  the  agency  of  any
Authenticating   Agent  by  giving   written   notice  of  termination  to  such
Authenticating  Agent and to the Master  Servicer.  Upon  receiving  a notice of
resignation  or  upon  such  a  termination,   or  in  case,  at  any  time  any
Authenticating  Agent  shall  cease  to  be  eligible  in  accordance  with  the
provisions  of this Section 9.10,  the  Securities  Administrator  may appoint a
successor Authenticating Agent, shall give written notice of such appointment to
the  Master  Servicer  and  shall  mail  notice  of  such   appointment  to  all
Certificateholders.  Any successor  Authenticating  Agent upon acceptance of its
appointment  hereunder shall become vested with all the rights,  powers,  duties
and  responsibilities  of its  predecessor  hereunder,  with  like  effect as if
originally named as Authenticating Agent.

     Section 9.11  Securities  Administrator's  Fees and Expenses and  Trustee's
Fees and Expenses.

     The Trustee, as compensation for its services hereunder,  shall be entitled
to a fee in an  amount  agreed  upon  between  the  Trustee  and the  Securities
Administrator,  payable by the Securities Administrator out of its own funds and
not out of any funds of the Trust Estate. The Securities  Administrator shall be
entitled to investment income from amounts on deposit in the Certificate Account
as  compensation  for its  services  hereunder.  The Trustee and the  Securities
Administrator,  as the case may be, and any director, officer, employee or agent
of the Trustee or the  Securities  Administrator,  as the case may be,  shall be
indemnified  and held  harmless by the Trust against any claims,  damage,  loss,
liability  or expense  (including  reasonable  attorney's  fees) (a) incurred in
connection  with or arising  from or  relating to (i) this  Agreement,  (ii) the
Certificates,  or (iii) the  performance  of any of the  Trustee's or Securities
Administrator's,  as the case may be, duties  hereunder,  other than any claims,
damage,  loss,  liability or expense incurred by reason of willful  misfeasance,
bad faith or gross  negligence  in the  performance  of any of the  Trustee's or
Securities Administrator's,  as the case may be, duties hereunder, (b) resulting
from any tax or  information  return  which was prepared by, or should have been
prepared  by, the Master  Servicer  and (c) arising  out of the  transfer of any
ERISA-Restricted  Certificate or the Residual Certificate not in compliance with

                                     -155-
<PAGE>

ERISA.  Without  limiting  the  foregoing,  except as  otherwise  agreed upon in
writing by the Depositor and the Trustee or the  Securities  Administrator,  and
except  for any such  expense,  disbursement  or  advance  as may arise from the
Trustee's  or the  Securities  Administrator's  gross  negligence,  bad faith or
willful  misconduct,  the Trust shall  reimburse the Trustee and the  Securities
Administrator for all reasonable  expenses,  disbursements and advances incurred
or made by the Trustee or the Securities Administrator in accordance with any of
the provisions of this Agreement to the extent permitted by Treasury Regulations
Section  1.860G-1(b)(3)(ii)  and (iii).  Except as  otherwise  provided  herein,
neither  the  Trustee  nor the  Securities  Administrator  shall be  entitled to
payment or  reimbursement  for any  routine  ongoing  expenses  incurred  by the
Trustee or the Securities  Administrator,  as applicable, in the ordinary course
of its duties as Trustee or Securities  Administrator,  Certificate Registrar or
Paying Agent hereunder or for any other expenses. The provisions of this Section
9.11 shall  survive the  termination  of this  Agreement or the  resignation  or
removal  of  the  Trustee  or  the  Securities  Administrator,   as  applicable,
hereunder.

     Section 9.12 Appointment of Custodian.

     The Trustee may at any time on or after the Closing Date,  with the consent
of the Depositor and the Master Servicer, appoint one or more Custodians to hold
all or a portion of the  Mortgage  Files as agent for the  Trustee,  by entering
into a custodial  agreement in a form acceptable to the Depositor and the Master
Servicer.  Subject to this  Article IX, the Trustee  agrees to enforce the terms
and   provisions   thereof   against  the  Custodian  for  the  benefit  of  the
Certificateholders.  Each Custodian shall be a depository institution subject to
supervision  by federal or state  authority,  shall have a combined  capital and
surplus of at least  $10,000,000  and shall be  qualified  to do business in the
jurisdiction in which it holds any Mortgage File.

     Each Custodian shall indemnify the Depositor, the Sponsor, the Trustee, the
Master  Servicer,  the  Securities  Administrator  and any of  their  respective
directors,  officers, employees or agents and hold them harmless against any and
all claims,  losses,  damages,  penalties,  fines,  forfeitures,  reasonable and
necessary  legal fees and related  costs,  judgments,  and any other  reasonable
costs,  fees and expenses that any of them may sustain in any way related to the
failure of a Custodian to perform any of its  obligations  under  Section  3.21.
Notwithstanding  the foregoing,  in no event shall a Custodian be liable for any
consequential, indirect or punitive damages pursuant to this Section 9.12.

     Section 9.13 Paying Agents.

     The Securities Administrator may appoint one or more Paying Agents (each, a
"Paying  Agent") which shall be  authorized  to act on behalf of the  Securities
Administrator   in  making   withdrawals   from  the  Certificate   Account  and
distributions  to  Certificateholders  as provided  in Section  3.09 and Section
5.02.  Wherever  reference is made in this Agreement to the withdrawal  from the
Certificate  Account by the Securities  Administrator,  such reference  shall be
deemed to include such a withdrawal on behalf of the Securities Administrator by
a Paying  Agent.  Initially,  the Paying  Agent shall be Wells Fargo Bank,  N.A.
Whenever reference is made in this Agreement to a distribution by the Securities
Administrator or the furnishing of a statement by the Securities  Administrator,
such reference  shall be deemed to include such a distribution  or furnishing on
behalf of the  Securities  Administrator  by a Paying  Agent.  Each Paying Agent

                                     -156-
<PAGE>

shall provide to the Securities  Administrator  such information  concerning the
Certificate  Account as the Securities  Administrator shall request from time to
time. Each Paying Agent must be reasonably acceptable to the Master Servicer and
must be a corporation or banking association  organized and doing business under
the laws of the United States of America or of any state,  having (except in the
case of the Trustee or the  Securities  Administrator)  a  principal  office and
place of business in New York, New York,  having a combined  capital and surplus
of at least  $15,000,000,  authorized under such laws to do a trust business and
subject to supervision or examination by federal or state authorities.  Any fees
and  expenses  (but not  including  any  indemnity  payments)  of a Paying Agent
appointed  pursuant  to  this  Agreement  shall  be  payable  by the  Securities
Administrator out of its own funds and not out of any funds in the Trust Estate.

     Any  corporation  into which any Paying Agent may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or  consolidation  to which any Paying Agent shall be a party, or any
corporation  succeeding  to the corporate  agency  business of any Paying Agent,
shall continue to be the Paying Agent provided that such  corporation  after the
consummation of such merger,  conversion,  consolidation or succession meets the
eligibility requirements of this Section 9.13.

     Any  Paying  Agent  may at any time  resign  by  giving  written  notice of
resignation  to the  Trustee,  the  Securities  Administrator  and to the Master
Servicer; provided that the Paying Agent has returned to the Certificate Account
or  otherwise  accounted,  to the  reasonable  satisfaction  of  the  Securities
Administrator,  for all amounts it has withdrawn from the  Certificate  Account.
The  Securities  Administrator  may, upon prior  written  approval of the Master
Servicer, at any time terminate the agency of any Paying Agent by giving written
notice of  termination  to such Paying  Agent and to the Master  Servicer.  Upon
receiving a notice of resignation or upon such a termination,  or in case at any
time  any  Paying  Agent  shall  cease to be  eligible  in  accordance  with the
provisions  of  the  first  paragraph  of  this  Section  9.13,  the  Securities
Administrator may appoint, upon prior written approval of the Master Servicer, a
successor  Paying Agent,  shall give written  notice of such  appointment to the
Master   Servicer   and  shall   mail   notice  of  such   appointment   to  all
Certificateholders.   Any  successor   Paying  Agent  upon   acceptance  of  its
appointment  hereunder shall become vested with all rights,  powers,  duties and
responsibilities of its predecessor hereunder, with like effect as if originally
named as Paying Agent. The Securities  Administrator shall remain liable for any
duties and obligations assumed by its appointed Paying Agent.

     Section 9.14 Limitation of Liability.

     The Certificates are executed by the Securities  Administrator,  not in its
individual capacity but solely as Securities  Administrator of the Trust, in the
exercise  of the  powers  and  authority  conferred  and  vested  in it by  this
Agreement.  Each of the  undertakings  and  agreements  made on the  part of the
Securities  Administrator  in the  Certificates  is made and  intended  not as a
personal  undertaking or agreement by the Securities  Administrator  but is made
and intended for the purpose of binding only the Trust.

     Section 5.15 Trustee or Securities Administrator May Enforce Claims Without
Possession of Certificates.

                                     -157-
<PAGE>

     All rights of action and claims under this  Agreement  or the  Certificates
may be prosecuted  and enforced by the Trustee or the  Securities  Administrator
without the possession of any of the  Certificates or the production  thereof in
any proceeding relating thereto, and such preceding instituted by the Trustee or
the Securities Administrator shall be brought in its own name or in its capacity
as Trustee or Securities  Administrator.  Any recovery of judgment shall,  after
provision for the payment of the reasonable compensation, expenses, disbursement
and advances of the Trustee,  its agents and counsel, be for the ratable benefit
of the Certificateholders in respect of which such judgment has been recovered.

     Section 9.16 Suits for Enforcement.

     In case an Event of Default or other default by the Master  Servicer or the
Depositor  hereunder  shall  occur  and  be  continuing,  the  Trustee,  in  its
discretion,  may proceed to protect and enforce its rights and the rights of the
Holders of Certificates  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, shall deem
most  effectual  to protect and enforce any of the rights of the Trustee and the
Certificateholders.

     Section 9.17 Waiver of Bond Requirement.

     The Trustee shall be relieved of, and each Certificateholder hereby waives,
any requirement of any jurisdiction in which the Trust, or any part thereof, may
be located that the Trustee  post a bond or other surety with any court,  agency
or body whatsoever.

     Section 9.18 Waiver of Inventory,  Accounting  and  Appraisal  Requirement.

     The Trustee shall be relieved of, and each Certificateholder hereby waives,
any requirement of any jurisdiction in which the Trust, or any part thereof, may
be located that the Trustee file any  inventory,  accounting or appraisal of the
Trust with any court, agency or body at any time or in any manner whatsoever.

                                   ARTICLE X

                                   TERMINATION

     Section  10.01  Termination  upon Purchase or  Liquidation  of All Mortgage
Loans.

     Subject to Section 10.02, the respective  obligations and  responsibilities
of the Depositor,  the Master  Servicer,  the Securities  Administrator  and the
Trustee   created   hereby  (other  than  the   obligation  of  the   Securities
Administrator  to make certain  payments to  Certificateholders  after the Final
Distribution  Date and to send certain  notices as hereinafter set forth and the
obligations of the  Securities  Administrator  pursuant to Sections  5.05(b) and
5.06(b))  shall  terminate  upon the  last  action  required  to be taken by the
Securities Administrator on the Final Distribution Date pursuant to this Article
X  following  the  earlier  of (a) the later of (I) the  purchase  by the Master
Servicer  of all of the Group 1  Mortgage  Loans and all  related  REO  Property

                                     -158-
<PAGE>

remaining  in the Trust  Estate  at a price  equal to the sum of (x) 100% of the
unpaid  principal  balance of each Group 1 Mortgage Loan (other than any Group 1
Mortgage  Loan as to which REO Property has been  acquired and whose fair market
value is included  pursuant to clause (y) below),  (y) the fair market  value of
such REO Property  plus one month's  interest at the related  Mortgage  Interest
Rate on the unpaid  principal  balance of each Group 1 Mortgage Loan  (including
any Group 1 Mortgage  Loan as to which REO Property has been  acquired)  and (z)
any Reimbursement Amount owed to the Trust pursuant to Section 2.02 related to a
Group 1 Mortgage Loan and (II) the purchase by the NIMS  Insurer,  if there is a
NIMS Insurer,  or if there is no NIMS Insurer,  the majority Holder of the Class
CE  Certificates  (or if (i) such  Holder  fails  to  purchase  on the  Group T2
Optional Termination Date or (ii) such Holder is the Sponsor, or an affiliate of
the Sponsor,  the Master  Servicer of the Mortgage Loans) of all of the Group T2
Mortgage  Loans and all related REO Property  remaining in the Trust Estate at a
price equal to the sum of (x) 100% of the unpaid principal balance of each Group
T2 Mortgage Loan (other than any Group T2 Mortgage Loan as to which REO Property
has been acquired and whose fair market value is included pursuant to clause (y)
below), (y) the fair market value of such REO Property plus one month's interest
at the related Mortgage  Interest Rate on the unpaid  principal  balance of each
Group T2 Mortgage  Loan  (including  any Group T2 Mortgage  Loan as to which REO
Property has been acquired) and (z) any  Reimbursement  Amount owed to the Trust
pursuant to Section  2.02  related to a Group T2 Mortgage  Loan or (b) the final
payment or other  liquidation (or any advance with respect  thereto) of the last
Mortgage  Loan  remaining  in the Trust  Estate and the  disposition  of all REO
Property.

     No party may exercise its purchase option for the Group 1 Mortgage Loans or
the Group T2 Mortgage Loans, as the case may be, until all Reimbursement Amounts
for such  Mortgage  Loans have been paid.  The  Securities  Administrator  shall
notify the  Sponsor,  upon notice of a party's  intent to exercise  its purchase
option of any related Reimbursement Amount outstanding.

     Regardless of the  foregoing,  in no event shall the Trust  created  hereby
continue  beyond the  expiration of 21 years from the death of the last survivor
of the  descendants  of Joseph P.  Kennedy,  the late  ambassador  of the United
States to the Court of St. James, living on the date hereof.

     The right of the Master  Servicer  to  exercise  its  purchase  option with
respect  to the Group 1 Mortgage  Loans is  conditioned  upon (A) the  aggregate
Stated Principal Balance of all the Group 1 Mortgage Loans being less than 1% of
the aggregate unpaid  principal  balance of all the Group 1 Mortgage Loans as of
the Cut-off Date and (B) the purchase price calculated pursuant to clause (a)(I)
of the first  paragraph  of this  Section  10.01 being less than or equal to the
aggregate  fair market value of the Group 1 Mortgage Loans (other than any Group
1 Mortgage Loan as to which REO Property has been  acquired) and the related REO
Properties;  provided,  however,  that  this  clause  (B) shall not apply to any
purchase  by the Master  Servicer  if, at the time of the  purchase,  the Master
Servicer is no longer subject to regulation by the Office of the  Comptroller of
the Currency,  the FDIC,  the Federal  Reserve or the OTS. Fair market value for
purposes of this paragraph and the first paragraph of this Section 10.01 will be
determined  by the  Master  Servicer  as of the close of  business  on the third
Business Day next  preceding the date upon which notice of any such  termination
is furnished to Certificateholders  pursuant to this Article X. If such right is
exercised,  the Trustee (or Custodian on the Trustee's  behalf) shall,  promptly
following  payment of the purchase price,  release to the Master Servicer or its

                                     -159-
<PAGE>

designee  the  Mortgage  Files  pertaining  to the Group 1 Mortgage  Loans being
purchased.  The  Master  Servicer's  right,  title and  interest  in and to such
purchased Group 1 Mortgage Loans and the related Mortgage Files shall be subject
to the  servicing  rights of the  Servicers  pursuant to the  related  Servicing
Agreements.

     The right of a party to exercise  its  purchase  option with respect to the
Group T2 Mortgage Loans is conditioned  upon (A) the aggregate  Stated Principal
Balance  of all of the  Group  T2  Mortgage  Loans  being  less  than 10% of the
aggregate  unpaid  principal  balance of the Group T2  Mortgage  Loans as of the
Cut-off Date and (B) the purchase price calculated pursuant to clause (a)(II) of
the  first  paragraph  of this  Section  10.01  being  less than or equal to the
aggregate fair market value of the Group T2 Mortgage Loans (other than any Group
T2  Mortgage  Loan as to  which  REO  Property  has been  acquired)  and the REO
Properties;  provided,  however,  that  this  clause  (B) shall not apply to any
purchase  by the Master  Servicer  if, at the time of the  purchase,  the Master
Servicer is no longer subject to regulation by the Office of the  Comptroller of
the Currency,  the FDIC,  the Federal  Reserve or the OTS. Fair market value for
purposes of this paragraph and the first paragraph of this Section 10.01 will be
determined  by the  Master  Servicer  as of the close of  business  on the third
Business Day next  preceding the date upon which notice of any such  termination
is furnished to Certificateholders  pursuant to this Article X. If such right is
exercised,  the Trustee (or Custodian on the Trustee's  behalf) shall,  promptly
following  payment of the purchase  price,  release to the party  exercising its
purchase  option or its designee the Mortgage  Files  pertaining to the Mortgage
Loans being purchased. The right, title and interest of the party exercising its
purchase  option  with  respect  to the Group T2  Mortgage  Loans in and to such
purchased  Group T2  Mortgage  Loans and the  related  Mortgage  Files  shall be
subject  to the  servicing  rights  of the  Servicers  pursuant  to the  related
Servicing Agreements.

     Notice of the  exercise of any  purchase  option  pursuant to this  Section
10.01 and notice of any  termination  of the Trust or any  portion of the Trust,
specifying the Final Distribution Date or the applicable Distribution Date, upon
which the applicable  Certificateholders may surrender their Certificates to the
Securities   Administrator  for  payment  of  the  final  distribution  and  for
cancellation,  shall be given promptly by the Securities Administrator by letter
to the  Certificateholders  mailed not  earlier  than the 10th day and not later
than  the  15th  day of the  month  next  preceding  the  month  of  such  final
distribution  specifying  (1) the  Final  Distribution  Date  or the  applicable
Distribution Date, upon which final payment of the applicable  Certificates will
be made upon  presentation  and surrender of such  Certificates at the office or
agency of the Securities Administrator therein designated, (2) the amount of any
such final  payment and (3) that the Record Date  otherwise  applicable  to such
Distribution Date is not applicable,  payments being made only upon presentation
and  surrender  of the  applicable  Certificates  at the office or agency of the
Securities Administrator therein specified.

     Upon the exercise of its purchase option,  the applicable party shall remit
to the Securities  Administrator  for deposit to the  Certificate  Account on or
before the Final  Distribution  Date or the  applicable  Distribution  Date,  in
immediately  available funds an amount equal to the amount necessary to make the
amount, if any, on deposit in the Certificate Account on such Final Distribution
Date or  Distribution  Date, as applicable,  equal to the purchase price for the
related  assets of the Trust Estate or any portion of the Trust Estate  computed

                                     -160-
<PAGE>

as above  provided  together with a statement as to the amount to be distributed
on each  applicable  Class  of  Certificates  pursuant  to the  next  succeeding
paragraph.

     Upon  presentation  and  surrender  of  the  applicable  Certificates,  the
Securities  Administrator shall cause to be distributed to Certificateholders of
each  Class,  in the  order  set  forth  in  Section  5.02  or 5.03  hereof,  as
applicable,  on the Final Distribution Date or the applicable Distribution Date,
and in  proportion to their  respective  Percentage  Interests,  with respect to
Certificateholders  of the same  Class,  all cash on hand  with  respect  to the
related REMICs (other than the amounts retained to meet claims). An amount shall
be  distributed  in respect of  interest  and  principal  to the  Uncertificated
Lower-Tier  II  Interests,   the  Uncertificated  Shifting  Interest  Lower-Tier
Interests and the Uncertificated  Shifting Interest  Middle-Tier  Interests,  as
applicable, in the same manner as principal and interest are distributed to such
Uncertificated   Lower-Tier  II  Interests,   Uncertificated  Shifting  Interest
Lower-Tier Interests and Uncertificated Shifting Interest Middle-Tier Interests,
respectively, as provided in Section 5.02 or 5.03, as applicable.

     If the applicable  Certificateholders  do not surrender their  Certificates
for final payment and cancellation on or before the Final Distribution Date, the
Securities  Administrator  shall on such  date  cause all  related  funds in the
Certificate   Account   not   distributed   in   final   distribution   to  such
Certificateholders  of such  Group  to  continue  to be  held by the  Securities
Administrator in an Eligible Account for the benefit of such  Certificateholders
and the  Securities  Administrator  shall  give a second  written  notice to the
remaining  applicable  Certificateholders  to surrender their  Certificates  for
cancellation and receive a final  distribution  with respect thereto.  If within
one (1) year after the second notice all the applicable  Certificates  shall not
have been surrendered for  cancellation,  the Securities  Administrator may take
appropriate steps, or may appoint an agent to take appropriate steps, to contact
the  remaining  applicable  Certificateholders  concerning  surrender  of  their
Certificates,  and the cost thereof shall be paid out of the funds on deposit in
such Eligible Account.

     Section 10.02 Additional Termination Requirements.

     (a) (i) If a party  exercises  its  purchase  option as provided in Section
10.01,  the related REMIC or REMICs shall be  terminated in accordance  with the
following additional  requirements,  unless the Securities Administrator and the
Trustee  have  received  an Opinion of Counsel to the effect that the failure of
the Trust to comply with the  requirements  of this  Section  10.02 will not (i)
result in the  imposition of taxes on "prohibited  transactions"  or "prohibited
contributions" in respect of any REMIC created hereunder as defined in the REMIC
Provisions,  or (ii) cause any REMIC  created  hereunder to fail to qualify as a
REMIC at any time that any related Certificates are outstanding:

          (ii) within 90 days prior to the applicable  Final  Distribution  Date
     set forth in the notice given by the Securities Administrator under Section
     10.01, the Securities  Administrator  shall sell the related Mortgage Loans
     and the REO Properties to the Master  Servicer or the NIMS Insurer,  as the
     case may be, for cash;

          (iii) the notice  given by the  Securities  Administrator  pursuant to
     Section 10.01 shall provide that such notice constitutes adoption of a plan

                                     -161-
<PAGE>

     of complete liquidation of the applicable REMIC or REMICs as of the date of
     such notice  (or,  if earlier,  the date on which such notice was mailed to
     Certificateholders).  The Securities  Administrator  shall also ensure that
     such date is specified in the final tax return of the  applicable  REMIC or
     REMICs; and

          (iv) the  Upper-Tier II REMIC will be terminated on the same date that
     the  Lower-Tier  II  REMIC  is  terminated,   and  the  Shifting   Interest
     Middle-Tier  REMIC  and the  Shifting  Interest  Upper-Tier  REMIC  will be
     terminated on the same date that the Shifting Interest  Lower-Tier REMIC is
     terminated.

     (b) By its  acceptance  of the  Residual  Certificate,  the Holder  thereof
hereby agree to take such other action in connection  with such plan of complete
liquidation as may be reasonably  requested by the Depositor,  the Trustee,  the
NIMS  Insurer  or  the  Securities  Administrator  and  if  such  action  is not
requested,  is  deemed to adopt  such a plan of  complete  liquidation  when the
related Mortgage Loans are purchased pursuant to Section 10.01.

                                  ARTICLE XI

                            MISCELLANEOUS PROVISIONS

     Section 11.01 Amendment.

     This  Agreement  may be  amended  from time to time by the  Depositor,  the
Master Servicer,  the Securities  Administrator and the Trustee with the consent
of  the  NIMS  Insurer  (only  to  the  extent  such  amendment  relates  to the
Overcollateralized   Certificates),   without   the   consent   of  any  of  the
Certificateholders,  (i) to cure any  ambiguity  or mistake,  (ii) to correct or
supplement any provisions  herein or therein which may be inconsistent  with any
other  provisions  of this  Agreement,  any  amendment to this  Agreement or the
related Prospectus Supplement,  (iii) to modify,  eliminate or add to any of its
provisions to such extent as shall be necessary to maintain the qualification of
any  REMIC  created  hereunder  as  a  REMIC  at  all  times  that  any  related
Certificates  are outstanding or to avoid or minimize the risk of the imposition
of any tax on any REMIC created  hereunder  pursuant to the Code that would be a
claim against the Trust Estate, provided that (a) the Trustee and the Securities
Administrator have received an Opinion of Counsel to the effect that such action
is necessary or desirable to maintain such qualification or to avoid or minimize
the risk of the  imposition  of any such tax and (b) such  action  shall not, as
evidenced by such Opinion of Counsel,  adversely  affect in any material respect
the interests of any Certificateholder,  (iv) to change the timing and/or nature
of deposits  into the  Certificate  Account  provided that (a) such change shall
not, as  evidenced  by an Opinion of Counsel,  adversely  affect in any material
respect the  interests  of any  Certificateholder  and (b) such change shall not
adversely affect the  then-current  rating of the Certificates as evidenced by a
letter from each Rating Agency rating such  Certificates to such effect,  (v) to
provide for the rights of the NIMS Insurer and (vi) to make any other provisions
with respect to matters or questions  arising under this  Agreement  which shall
not be materially  inconsistent with the provisions of this Agreement,  provided
that such action  shall not, as  evidenced  by an Opinion of Counsel,  adversely
affect in any material respect the interests of any Certificateholder,  provided
that the  amendment  shall  not be deemed to  adversely  affect in any  material
respect the  interests  of the  Certificateholders  and no Opinion of Counsel to
that effect shall be required if the Person  requesting the amendment  obtains a

                                     -162-
<PAGE>

letter from each Rating Agency  stating that the  amendment  would not result in
the  downgrading  or withdrawal of the  respective  ratings then assigned to the
Certificates.  Notwithstanding  any contrary  provision of this  Agreement,  the
Trustee shall not consent to any amendment to this Agreement  pursuant to clause
(i) through (vi) above unless it shall have first received an Opinion of Counsel
to the effect that such  amendment  shall not cause the imposition of any United
States   federal   income   tax  on  any   REMIC   created   hereunder   or  the
Certificateholders  or cause any REMIC created hereunder to fail to qualify as a
REMIC at any time that any Certificates are outstanding.

     This Agreement may also be amended from time to time by the Depositor,  the
Master Servicer, the Securities  Administrator and the Trustee, with the consent
of the NIMS Insurer (if the NIMS Insurer is affected by such  amendment) and the
Holders of Certificates of each Class of Certificates  which is affected by such
amendment,  evidencing,  as to  each  such  Class  of  Certificates,  Percentage
Interests  aggregating  not less than  66-2/3%,  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 such
Certificates;  provided, however, that no such amendment shall (A) reduce in any
manner  the  amount  of, or delay the timing  of,  collections  of  payments  on
Mortgage Loans or distributions which are required to be made on any Certificate
without  the  consent  of the  Holder  of such  Certificate  or (B)  reduce  the
aforesaid  percentage  required  to consent to any such  amendment,  without the
consent of the Holders of all Certificates then Outstanding.

     Prior to the  solicitation of consent of  Certificateholders  in connection
with any such  amendment,  the party  seeking such  amendment  shall furnish the
Trustee,  the NIMS Insurer and the Securities  Administrator  with an Opinion of
Counsel stating that such amendment would not adversely affect the qualification
of any REMIC  created  hereunder as a REMIC or result in the  imposition  of any
United States  federal  income tax on any REMIC created  hereunder and notice of
the  conclusion  expressed in such Opinion of Counsel shall be included with any
such solicitation.

     Promptly  after  the  execution  of  any  such  amendment  or  consent  the
Securities  Administrator shall furnish written notification of the substance of
or a copy of such amendment to each  Certificateholder,  the NIMS Insurer and to
each Rating Agency.

     It shall not be necessary for the consent of Certificateholders  under this
Section 11.01 to approve the particular form of any proposed  amendment,  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
requirements as the Securities Administrator may prescribe.

     Prior to the  execution  of any  amendment to this  Agreement,  each of the
Trustee  and the  Securities  Administrator  shall  receive  and be  entitled to
conclusively  rely on any  Opinion  of  Counsel  (at the  expense  of the Person
seeking such amendment)  stating that such amendment is authorized and permitted
by this Agreement.  The Trustee and the Securities  Administrator may, but shall
not be obligated to, enter into any such  amendment  which affects the Trustee's
or the Securities  Administrator's  own rights,  duties or immunities under this
Agreement.

                                     -163-
<PAGE>

     Section 11.02 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 Securities  Administrator  at its expense at the direction
of Holders of  Certificates  evidencing  not less than 50% of all Voting Rights,
but only upon  delivery to the  Securities  Administrator  at the expense of the
requesting  Certificateholders  of an Opinion of Counsel to the effect that such
recordation    materially   and   beneficially    affects   the   interests   of
Certificateholders.

     For the purpose of facilitating the recordation of this Agreement as herein
provided and for other purposes,  this Agreement may be executed  simultaneously
in any number of counterparts,  each of which counterparts shall be deemed to be
an  original,  and  such  counterparts  shall  constitute  but one and the  same
instrument.

     Section 11.03 Limitation on Rights of Certificateholders.

     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
commence any proceeding in any court for a partition or winding up of the Trust,
nor 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, or the  obligations of the parties hereto,  nor shall anything herein set
forth,  or  contained  in the terms of the  Certificates,  be construed so as to
constitute the Certificateholders from time to time as partners or members of an
association; nor shall any Certificateholder be under any liability to any third
person by reason of any action taken by the parties to this  Agreement  pursuant
to any provision hereof.

     No  Certificateholder  shall have any right by virtue 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 Securities  Administrator  a written
notice of default and of the continuance thereof, as provided herein, and unless
also the Holders of Certificates evidencing Percentage Interests aggregating not
less than 25% of each Class of  Certificates  affected  thereby  shall have made
written request upon the Securities Administrator to institute such action, suit
or proceeding in its own name as  Securities  Administrator  hereunder and shall
have offered to the Securities Administrator such reasonable indemnity as it may
require against the costs,  expenses and  liabilities to be incurred  therein or
thereby, and the Securities Administrator, 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 Securities Administrator,  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,

                                     -164-
<PAGE>

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  equal,   ratable  and  common  benefit  of  all
Certificateholders. For the protection and enforcement of the provisions of this
Section 11.03, each and every Certificateholder and the Securities Administrator
shall be entitled to such relief as can be given either at law or in equity.

     Section 11.04 Governing Law.

     THIS  AGREEMENT  SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE  WITH THE
LAWS OF THE STATE OF NEW YORK AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES OF THE
PARTIES  HEREUNDER  SHALL BE  DETERMINED  IN  ACCORDANCE  WITH SUCH LAWS WITHOUT
REGARD TO THE CONFLICTS OF LAWS PROVISIONS THEREOF (OTHER THAN SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW).

     With  respect  to any  claim  arising  out of this  Agreement,  each  party
irrevocably submits to the exclusive  jurisdiction of the courts of the State of
New  York and the  United  States  District  Court  located  in the  Borough  of
Manhattan  in The  City of New  York,  and each  party  irrevocably  waives  any
objection  which  it may have at any time to the  laying  of venue of any  suit,
action or  proceeding  arising  out of or  relating  hereto  brought in any such
courts,  irrevocably  waives any claim that any such suit,  action or proceeding
brought in any such court has been brought in any inconvenient forum and further
irrevocably waives the right to object, with respect to such claim, suit, action
or  proceeding  brought  in any  such  court,  that  such  court  does  not have
jurisdiction over such party,  provided that service of process has been made by
any lawful means.

     Section 11.05 Notices.

     All demands, notices, instructions, directions, requests and communications
required or permitted to be delivered hereunder shall be in writing and shall be
deemed to have been duly given if personally delivered at or mailed by certified
mail,  return  receipt  requested,  (provided,  however,  that  notices  to  the
Securities  Administrator  may be  delivered  by  facsimile  and shall be deemed
effective  upon  receipt) to (a) in the case of the  Depositor,  Banc of America
Funding Corporation,  214 North Tryon Street,  Charlotte,  North Carolina 28255,
Attention:  General Counsel and Chief Financial Officer,  (b) in the case of the
Master  Servicer,  Wells Fargo Bank,  N.A., 9062 Old Annapolis  Road,  Columbia,
Maryland  21045,  Attention:  BAFC  2006-7,  (c) in the  case of the  Securities
Administrator,  Wells Fargo Bank, N.A., P.O. Box 98,  Columbia,  Maryland 21046,
Attention: BAFC, Series 2006-7, and for overnight delivery purposes, Wells Fargo
Bank, N.A., 9062 Old Annapolis Road, Columbia,  Maryland 21045-1951,  Attention:
BAFC, Series 2006-7,  with a copy to Wells Fargo Bank, N.A., Sixth and Marquette
Avenue,  Minneapolis,  Minnesota,  55479, Attention: BAFC, Series 2006-7, (d) in
the case of the Trustee,  U.S.  Bank  National  Association,  209 South  LaSalle
Street, Suite 300, Chicago, Illinois 60604, Attention: Corporate Trust Services,
BAFC, Series 2006-7, Attention: Structured Finance Services, BAFC 2006-7, (e) in
the case of Fitch,  Fitch  Ratings,  One State Street Plaza,  New York, New York
10004,  Attention:  Residential Mortgage  Surveillance Group; (f) in the case of
S&P, Standard & Poor's, a division of The McGraw-Hill Companies,  Inc., 55 Water
Street, New York, New York 10041, Attn: Residential Mortgage Surveillance Group;
and (g) in the case of  Moody's,  Moody's  Investors  Service,  Inc.,  99 Church

                                     -165-
<PAGE>

Street, New York, New York 10004, Attn:  Residential Mortgage Surveillance Group
or, as to each party, at such other address as shall be designated by such party
in a written notice to each other party.  Any notice required or permitted to be
mailed  to a  Certificateholder  shall be given by  first  class  mail,  postage
prepaid, at the address of such Holder as shown in the Certificate Register. Any
notice to a  Certificateholder  so mailed  within  the time  prescribed  in this
Agreement shall be conclusively presumed to have been duly given, whether or not
the Certificateholder receives such notice.

     Section 11.06 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, provisions or terms of this Agreement and shall
in no way affect the validity or  enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

     Section 11.07 Certificates Nonassessable and Fully Paid.

     It is the intention of the Securities Administrator that Certificateholders
shall not be personally  liable for  obligations  of the Trust Estate,  that the
beneficial  ownership  interests   represented  by  the  Certificates  shall  be
nonassessable  for any losses or expenses of the Trust  Estate or for any reason
whatsoever,  and that Certificates upon execution,  authentication  and delivery
thereof by the Securities  Administrator  pursuant to Section 6.01 are and shall
be deemed fully paid.

     Section 11.08 Access to List of Certificateholders.

     The  Certificate  Registrar  will  furnish or cause to be  furnished to the
Trustee and the  Securities  Administrator,  within  fifteen (15) days after the
receipt  of a request by the  Trustee  and/or the  Securities  Administrator  in
writing, a list, in such form as the Trustee and/or the Securities Administrator
may reasonably require, of the names and addresses of the  Certificateholders as
of  the   most   recent   Record   Date  for   payment   of   distributions   to
Certificateholders.

     If three or more  Certificateholders  apply in  writing  to the  Securities
Administrator,  and such  application  states  that  the  applicants  desire  to
communicate  with other  Certificateholders  with  respect to their rights under
this  Agreement or under the  Certificates  and is  accompanied by a copy of the
communication  which such  applicants  propose to transmit,  then the Securities
Administrator  shall,  within five (5)  Business  Days after the receipt of such
application,  afford such applicants  access during normal business hours to the
most recent list of Certificateholders held by the Securities Administrator.  If
such a list is as of a date more than 90 days  prior to the date of  receipt  of
such applicants'  request,  the Securities  Administrator shall promptly request
from the  Certificate  Registrar  a current  list as provided  above,  and shall
afford such applicants access to such list promptly upon receipt.

     Every  Certificateholder,  by receiving and holding such list,  agrees with
the  Certificate  Registrar and the  Securities  Administrator  that neither the
Certificate Registrar nor the Securities Administrator shall be held accountable

                                     -166-
<PAGE>

by  reason  of the  disclosure  of any  such  information  as to the  names  and
addresses of the  Certificateholders  hereunder,  regardless  of the source from
which such information was derived.

     Section 11.09 Recharacterization.

     The parties to this Agreement intend the conveyance by the Depositor to the
Trustee of all of its right, title and interest in and to the Mortgage Loans and
the related Mortgage Files,  including all interest and principal received on or
with  respect to the  Mortgage  Loans  (other  than  payments of  principal  and
interest  due and payable on the Mortgage  Loans on or before the Cut-off  Date)
and the Depositor's rights under the Mortgage Loan Purchase Agreement, including
the rights of the  Depositor  as  assignee of the  Sponsor  with  respect to the
Sponsor's  rights under the Servicing  Agreements  pursuant to this Agreement to
constitute a purchase and sale and not a loan. Notwithstanding the foregoing, to
the  extent  that  such  conveyance  is  held  not to  constitute  a sale  under
applicable law, it is intended that this Agreement  shall  constitute a security
agreement  under  applicable law and that the Depositor  shall be deemed to have
granted  to  the  Trustee  a  first  priority  security  interest  in all of the
Depositor's right, title and interest in and to the Mortgage Loans.

     Section  11.10   Regulation   AB   Compliance;   Intent  of  the   Parties;
Reasonableness.

     The parties hereto acknowledge that  interpretations of the requirements of
Regulation  AB may  change  over  time,  whether  due to  interpretive  guidance
provided by the Commission or its staff,  consensus  among  participants  in the
asset-backed securities markets,  advice of counsel, or otherwise,  and agree to
use its  commercially  reasonable  efforts to comply with  requests  made by the
Depositor in good faith for delivery of  information  under these  provisions on
the basis of evolving  interpretations  of Regulation AB. In connection with the
Trust, the Master Servicer,  the Securities  Administrator,  the Trustee and the
Custodian  shall  cooperate fully with the Depositor to deliver to the Depositor
(including  its  assignees  or  designees),  any  and all  statements,  reports,
certifications,  records and any other  information  available to such party and
reasonably  necessary in the good faith determination of the Depositor to permit
the Depositor to comply with the provisions of Regulation AB, together with such
disclosures relating to the Master Servicer, the Securities  Administrator,  the
Trustee and the Custodian,  as applicable,  reasonably believed by the Depositor
to be necessary in order to effect such compliance.

     Section 11.11 Third Party Beneficiary.

     Nothing in this  Agreement  or in the  Certificates,  expressed or implied,
shall give to any Person, other than the Certificateholders,  the parties hereto
and their successors hereunder and the NIMS Insurer, any benefit or any legal or
equitable right, remedy or claim under this Agreement.

     The  NIMS  Insurer  shall  be  deemed  a  third-party  beneficiary  of this
Agreement  to the same extent as if it were a party  hereto,  and shall have the
right to enforce the provisions of this Agreement  directly  against the parties
to this Agreement.

                                     -167-
<PAGE>

     IN WITNESS  WHEREOF,  the Depositor,  the Master  Servicer,  the Securities
Administrator  and the Trustee have caused this Agreement to be duly executed by
their respective officers thereunto duly authorized to be hereunto affixed,  all
as of the day and year first above written.

                                    BANC OF AMERICA FUNDING
                                    CORPORATION, as Depositor

                                    By:      /s/ Scott Evans
                                        ----------------------------------
                                    Name:  Scott Evans
                                    Title: Senior Vice President

                                    WELLS FARGO BANK, N.A., as Master Servicer

                                    By:      /s/ Peter A. Gobell
                                        ----------------------------------
                                    Name:  Peter A. Gobell
                                    Title: Vice President

                                    WELLS FARGO BANK, N.A., as Securities
                                    Administrator

                                    By:      /s/ Peter A. Gobell
                                        ----------------------------------
                                    Name:  Peter A. Gobell
                                    Title: Vice President

                                    U.S. BANK NATIONAL ASSOCIATION, as
                                    Trustee

                                    By:      /s/ Melissa A. Rosal
                                        ----------------------------------
                                    Name:  Melissa A. Rosal
                                    Title: Vice President

             [Signature Page to the Pooling and Servicing Agreement]

                                     -168-
<PAGE>

STATE OF NORTH CAROLINA )
                        )     ss.:
COUNTY OF MECKLENBURG   )
                        )

     On the 26th day of October, 2006, before me, a notary public in and for the
State of North Carolina, personally appeared Scott Evans, known to me who, being
by me duly sworn,  did depose and say that he is a Senior Vice President of Banc
of America Funding Corporation, a Delaware corporation,  one of the parties that
executed the foregoing instrument;  and that he signed his name thereto by order
of the Board of Directors of such corporation.

                                             /s/ E. Blair Autrey
                                        ----------------------------------
                                              Notary Public

My commission expires October 4, 2010.
                      ---------------

              [Notary Page to the Pooling and Servicing Agreement]

                                     -169-
<PAGE>

STATE OF MARYLAND     )
                      )       ss.:
COUNTY OF BALTIMORE   )
                      )

     On the 26th day of October, 2006, before me, a notary public in and for the
State of Maryland,  personally appeared Peter A. Gobell,  known to me who, being
by me duly sworn,  did depose and say that he is a Vice President of Wells Fargo
Bank, N.A., a national banking association, one of the parties that executed the
foregoing instrument;  and that he signed his name thereto by order of the Board
of Directors of such association.

                                             /s/ Graham M. Oglesby
                                        ----------------------------------
                                               Notary Public

My commission expires January 7, 2009.
                      ---------------

              [Notary Page to the Pooling and Servicing Agreement]

                                     -170-
<PAGE>

STATE OF MARYLAND     )
                      )       ss.:
COUNTY OF BALTIMORE   )
                      )

     On the 26th day of October, 2006, before me, a notary public in and for the
State of Maryland,  personally appeared Peter A. Gobell,  known to me who, being
by me duly sworn,  did depose and say that he is a Vice President of Wells Fargo
Bank, N.A., a national banking association, one of the parties that executed the
foregoing instrument;  and that he signed his name thereto by order of the Board
of Directors of such association.

                                             /s/ Graham M. Oglesby
                                        ----------------------------------
                                               Notary Public

My commission expires January 7, 2009.
                      ---------------

              [Notary Page to the Pooling and Servicing Agreement]

                                     -171-
<PAGE>

STATE OF ILLINOIS       )
                        )      ss.:
COUNTY OF COOK          )
                        )

     On the 26th day of October, 2006, before me, a notary public in and for the
State of Illinois,  personally appeared Melissa A. Rosal, known to me who, being
by me duly sworn,  did depose and say that she is a Vice  President of U.S. Bank
National  Association,  a national banking association,  one of the parties that
executed the foregoing instrument; and that she signed her name thereto by order
of the Board of Directors of such association.

                                             /s/ Nancie J Arvin
                                        ----------------------------------
                                               Notary Public

My commission expires October 3, 2007.
                      ---------------

              [Notary Page to the Pooling and Servicing Agreement]

                                     -172-
<PAGE>

                                  EXHIBIT A-1AR

                    [FORM OF FACE OF CLASS 1-A-R CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-R

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE IS A "RESIDUAL
INTEREST" IN MULTIPLE "REAL ESTATE MORTGAGE INVESTMENT CONDUITS," AS THOSE TERMS
ARE DEFINED,  RESPECTIVELY,  IN SECTIONS  860G AND 860D OF THE INTERNAL  REVENUE
CODE OF 1986, AS AMENDED (THE "CODE").

THIS CLASS 1-A-R  CERTIFICATE  MAY NOT BE  PURCHASED  BY OR  TRANSFERRED  TO ANY
EMPLOYEE  BENEFIT  PLAN  OR  ARRANGEMENT,  INCLUDING  AN  INDIVIDUAL  RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL, STATE OR LOCAL LAW WHICH IS SIMILAR
TO THE PROHIBITED  TRANSACTION  PROVISIONS OF ERISA OR THE CODE OR THE FIDUCIARY
PROVISIONS OF ERISA (COLLECTIVELY, A "PLAN"), OR A PERSON ACTING ON BEHALF OF OR
INVESTING ASSETS OF A PLAN.

TRANSFER  OF THIS  CERTIFICATE  IS  SUBJECT  TO  CERTAIN  TAX  RELATED  TRANSFER
RESTRICTIONS  DESCRIBED HEREIN AND IN THE POOLING AND SERVICING  AGREEMENT.  ANY
ATTEMPTED OR PURPORTED  TRANSFER OF THIS CLASS 1-A-R CERTIFICATE IN VIOLATION OF
SUCH RESTRICTIONS  SHALL BE ABSOLUTELY NULL AND VOID AND SHALL VEST NO RIGHTS IN
THE PURPORTED TRANSFEREE.

                                    A-1AR-1
<PAGE>
                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-R

evidencing  a 100%  Percentage  Interest in the  distributions  allocable to the
Certificate  of the  above-referenced  Class with respect to a Trust  consisting
primarily  of two loan  groups  of  fixed  interest  rate  mortgage  loans  (the
"Mortgage  Loans")  secured by first  liens on one- to  four-family  residential
properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $100.00

Initial Class Certificate
Balance of this Class:                      $100.00

Pass-Through Rate:                          6.2500%

CUSIP No.:                                  05951K AA 1

ISIN No.:                                   US05951KAA16

     THIS CERTIFIES THAT  __________ is the registered  owner of 100% Percentage
Interest  evidenced by this  Certificate in certain monthly  distributions  with
respect to a Trust consisting of the Mortgage Loans deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the

                                    A-1AR-2
<PAGE>
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Any  distribution of the proceeds of any remaining assets of the applicable
subaccounts of the  Certificate  Account will be made only upon  presentment and
surrender of this Class 1-A-R Certificate at the Corporate Trust Office.

     Each Person who has or who acquires this Class 1-A-R  Certificate  shall be
deemed by the  acceptance or  acquisition  thereof to have agreed to be bound by
the  following  provisions  and the rights of each Person  acquiring  this Class
1-A-R  Certificate are expressly subject to the following  provisions:  (i) each
Person  holding or acquiring this Class 1-A-R  Certificate  shall be a Permitted
Transferee and shall promptly notify the Securities  Administrator of any change
or  impending  change in its status as a  Permitted  Transferee;  (ii) no Person
shall acquire an ownership  interest in this Class 1-A-R Certificate unless such
ownership  interest is a pro rata undivided  interest;  (iii) in connection with
any  proposed  transfer  of  this  Class  1-A-R   Certificate,   the  Securities
Administrator  shall require delivery to it, in form and substance  satisfactory
to it, of an  affidavit  in the form of Exhibit I to the Pooling  and  Servicing
Agreement;  (iv)  notwithstanding  the  delivery of an  affidavit  by a proposed
transferee under clause (iii) above, if a Responsible  Officer of the Securities
Administrator  has  actual  knowledge  that  the  proposed  transferee  is not a
Permitted Transferee,  no transfer of any Ownership Interest in this Class 1-A-R
Certificate to such proposed transferee shall be effected;  (v) this Class 1-A-R
Certificate  may not be purchased by or  transferred to any Person that is not a
U.S.  Person,  unless (A) such  Person  holds this Class  1-A-R  Certificate  in
connection  with the conduct of a trade or business within the United States and
furnishes the  transferor  and the  Securities  Administrator  with an effective
Internal  Revenue  Service  Form  W-8ECI (or any  successor  thereto) or (B) the
transferee  delivers to both the transferor and the Securities  Administrator an
Opinion of Counsel from a  nationally-recognized  tax counsel to the effect that
such  transfer  is in  accordance  with  the  requirements  of the  Code and the
regulations  promulgated  thereunder  and that such transfer of this Class 1-A-R
Certificate  will not be disregarded  for federal income tax purposes;  (vi) any
attempted or purported  transfer of this Class 1-A-R Certificate in violation of
the provisions of such restrictions  shall be absolutely null and void and shall
vest no rights in the purported transferee; and (vii) if any Person other than a
Permitted  Transferee  acquires the Class 1-A-R Certificate in violation of such
restrictions,  then the Securities Administrator,  based on information provided
to the  Securities  Administrator  by the Master  Servicer,  will provide to the
Internal Revenue Service, and to the Persons specified in Section 860E(e)(3) and
(6) of the Code,  information  needed to compute the tax imposed  under  Section
860E(e)  of  the  Code  on  transfers  of  residual  interests  to  disqualified
organizations.

     This Class 1-A-R  Certificate may not be purchased by or transferred to any
employee  benefit  plan  or  arrangement,  including  an  individual  retirement
account,  subject to ERISA, the Code or any federal, state or local law which is
similar to the  prohibited  transactions  provisions of ERISA or the Code or the
fiduciary  provisions  of ERISA  (collectively,  a "Plan") or a Person acting on
behalf of or investing assets of a Plan.

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

                                    A-1AR-3
<PAGE>

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-1AR-4

<PAGE>

                                  EXHIBIT A-1A1

                    [FORM OF FACE OF CLASS 1-A-1 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-1

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    A-1A1-1

<PAGE>
                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-1

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $70,000,000.00

Pass-Through Rate:                          Floating

CUSIP No.:                                  05951K AB 9

ISIN No.:                                   US05951KAB98

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate

                                    A-1A1-2
<PAGE>
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-1A1-3

<PAGE>

                                  EXHIBIT A-1A2

                    [FORM OF FACE OF CLASS 1-A-2 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-2

UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN  AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    A-1A2-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-2

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $10,043,000.00

Pass-Through Rate:                          Floating

CUSIP No.:                                  05951K AC 7

ISIN No.:                                   US05951KAC71

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate

                                    A-1A2-2
<PAGE>
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator

                                      * * *

                                    A-1A2-3

<PAGE>

                                  EXHIBIT A-1A3

                    [FORM OF FACE OF CLASS 1-A-3 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-3

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS  OF THE NOTIONAL  AMOUNT OF THIS  CERTIFICATE  MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE OUTSTANDING  NOTIONAL AMOUNT OF THIS CERTIFICATE MAY BE LESS THAN THE AMOUNT
SET FORTH BELOW.

                                    A-1A3-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-3

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Notional
Amount of this
Certificate
("Denomination"):                           $

Initial Notional
Amount of this Class:                       $80,043,000.00

Pass-Through Rate:                          Inverse Floating

CUSIP No.:                                  05951K AD 5

ISIN No.:                                   US05951KAD54

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this  Certificate  by the  Initial  Notional  Amount of the Class to which  this
Certificate  belongs) in certain monthly  distributions  with respect to a Trust
consisting  primarily of the Mortgage Loans deposited by Banc of America Funding
Corporation (the  "Depositor").  The Trust was created pursuant to a Pooling and
Servicing  Agreement,  dated  October  30,  2006  (the  "Pooling  and  Servicing
Agreement"),  among the Depositor,  Wells Fargo Bank,  N.A., as master  servicer
(the  "Master   Servicer")  and  securities   administrator   (the   "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     This Class 1-A-3  Certificate  is not  entitled to any  distributions  with
respect to principal.

                                    A-1A3-2

<PAGE>

     This Certificate does not evidence an obligation of, or an interest in, and
is  not  guaranteed  by  the  Depositor,  the  Master  Servicer  and  Securities
Administrator or the Trustee or any of their respective affiliates. Neither this
Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-1A3-3

<PAGE>

                                  EXHIBIT A-1A4

                    [FORM OF FACE OF CLASS 1-A-4 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-4

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    A-1A4-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-4

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $87,663,000.00

Pass-Through Rate:                          Floating

CUSIP No.:                                  05951K AE 3

ISIN No.:                                   US05951KAE38

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate

                                    A-1A4-2
<PAGE>

Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not  guaranteed by the  Depositor,  the Master  Servicer and
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                     * * *

                                    A-1A4-3

<PAGE>

                                  EXHIBIT A-1A5

                    [FORM OF FACE OF CLASS 1-A-5 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-5

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

UNTIL THE APPLICABLE  ACCRETION  TERMINATION  DATE, THE INTEREST THAT ACCRUES ON
THE  CERTIFICATE  BALANCE OF THIS  CERTIFICATE  WILL NOT BE PAYABLE BECAUSE SUCH
UNPAID  INTEREST IS ADDED TO THE  CERTIFICATE  BALANCE OF THIS  CERTIFICATE  AND
BECAUSE  REDUCTIONS OF THE CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE MADE
MONTHLY AS DESCRIBED IN THE POOLING AND SERVICING  AGREEMENT  REFERENCED HEREIN,
THE OUTSTANDING CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MORE OR LESS THAN
THE AMOUNT SET FORTH BELOW.

                                    A-1A5-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-5

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $1,000.00

Pass-Through Rate:                          6.000%

CUSIP No.:                                  05951K AF 0

ISIN No.:                                   US05951KAF03

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    A-1A5-2
<PAGE>

interest in, and is not  guaranteed by the  Depositor,  the Master  Servicer and
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-1A5-3

<PAGE>

                                  EXHIBIT A-1A6

                    [FORM OF FACE OF CLASS 1-A-6 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-6

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

UNTIL THE APPLICABLE  ACCRETION  TERMINATION  DATE, THE INTEREST THAT ACCRUES ON
THE  CERTIFICATE  BALANCE OF THIS  CERTIFICATE  WILL NOT BE PAYABLE BECAUSE SUCH
UNPAID  INTEREST IS ADDED TO THE  CERTIFICATE  BALANCE OF THIS  CERTIFICATE  AND
BECAUSE  REDUCTIONS OF THE CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE MADE
MONTHLY AS DESCRIBED IN THE POOLING AND SERVICING  AGREEMENT  REFERENCED HEREIN,
THE OUTSTANDING CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MORE OR LESS THAN
THE AMOUNT SET FORTH BELOW.

                                    A-1A6-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-6

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $1,000.00

Pass-Through Rate:                          6.000%

CUSIP No.:                                  05951K AG 8

ISIN No.:                                   US05951KAG85

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance

                                    A-1A6-2
<PAGE>
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not  guaranteed by the  Depositor,  the Master  Servicer and
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-1A6-3

<PAGE>

                                  EXHIBIT A-1A7

                    [FORM OF FACE OF CLASS 1-A-7 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-7

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    A-1A7-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-7

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $51,597,000.00

Pass-Through Rate:                          6.000%

CUSIP No.:                                  05951K AH 6

ISIN No.:                                   US05951KAH68

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master Servicer"),  and securities administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance

                                    A-1A7-2
<PAGE>
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not  guaranteed by the  Depositor,  the Master  Servicer and
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-1A7-3

<PAGE>

                                  EXHIBIT A-1A8

                    [FORM OF FACE OF CLASS 1-A-8 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-8

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

AFTER THE  SENIOR  CREDIT  SUPPORT  DEPLETION  DATE,  THE  PRINCIPAL  PORTION OF
REALIZED LOSSES ALLOCATED TO THE CLASS 1-A-7  CERTIFICATES  WILL BE BORNE BY THE
CLASS 1-A-8  CERTIFICATES  AS DESCRIBED IN THE POOLING AND  SERVICING  AGREEMENT
REFERRED TO HEREIN.

                                    A-1A8-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-8

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $2,010,000.00

Pass-Through Rate:                          6.000%

CUSIP No.:                                  05951K AJ 2

ISIN No.:                                   US05951KAJ25

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    A-1A8-2
<PAGE>

interest in, and is not guaranteed by the Depositor, the Master Servicer and the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-1A8-3

<PAGE>

                                  EXHIBIT A-1A9

                    [FORM OF FACE OF CLASS 1-A-9 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-9

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    A-1A9-1

<PAGE>
                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-A-9

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $30,597,000.00

Pass-Through Rate:                          6.000%

CUSIP No.:                                  05951K AK 9

ISIN No.:                                   US05951KAK97

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master Servicer"),  and securities administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance

                                    A-1A9-2
<PAGE>
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not  guaranteed by the  Depositor,  the Master  Servicer and
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-1A9-3

<PAGE>

                                 EXHIBIT A-1A10

                   [FORM OF FACE OF CLASS 1-A-10 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class 1-A-10

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

AFTER THE  SENIOR  CREDIT  SUPPORT  DEPLETION  DATE,  THE  PRINCIPAL  PORTION OF
REALIZED LOSSES  ALLOCATED TO THE CLASS 1-A-1  CERTIFICATES  AND THE CLASS 1-A-4
CERTIFICATES WILL BE BORNE BY THE CLASS 1-A-10  CERTIFICATES AS DESCRIBED IN THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

                                    A-1A10-1

<PAGE>
                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class 1-A-10

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $6,314,000.00

Pass-Through Rate:                          6.000%

CUSIP No.:                                  05951K AL 7

ISIN No.:                                   US05951KAL70

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance

                                    A-1A10-2
<PAGE>
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Master Servicer and the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-1A10-3

<PAGE>

                                 EXHIBIT A-1A11

                   [FORM OF FACE OF CLASS 1-A-11 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class 1-A-11

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    A-1A11-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class 1-A-11

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $5,679,000.00

Pass-Through Rate:                          6.000%

CUSIP No.:                                  05951K AM 5

ISIN No.:                                   US05951KAM53

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master Servicer"),  and securities administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance

                                    A-1A11-2

<PAGE>

as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not  guaranteed by the  Depositor,  the Master  Servicer and
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-1A11-3

<PAGE>

                                 EXHIBIT A-1A12

                   [FORM OF FACE OF CLASS 1-A-12 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class 1-A-12

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    A-1A12-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class 1-A-12

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $56,267,000.00

Pass-Through Rate:                          6.000%

CUSIP No.:                                  05951K AN 3

ISIN No.:                                   US05951KAN37

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master Servicer"),  and securities administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance

                                    A-1A12-2

<PAGE>

as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not  guaranteed by the  Depositor,  the Master  Servicer and
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-1A12-3

<PAGE>

                                 EXHIBIT A-30-IO

                    [FORM OF FACE OF CLASS 30-IO CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 30-IO

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES,  EACH COMPONENT OF THIS CERTIFICATE
IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

REDUCTIONS  OF THE NOTIONAL  AMOUNT OF THIS  CERTIFICATE  MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE OUTSTANDING  NOTIONAL AMOUNT OF THIS CERTIFICATE MAY BE LESS THAN THE AMOUNT
SET FORTH BELOW.

                                    A-30IO-1

<PAGE>
                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 30-IO

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Notional
Amount of this
Certificate
("Denomination"):                           $

Initial Notional
Amount of this Class:                       $13,805,701.00

Pass-Through Rate:                          6.000%

CUSIP No.:                                  05951K AP 8

ISIN No.:                                   US05951KAP84

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this  Certificate  by the  Initial  Notional  Amount of the Class to which  this
Certificate  belongs) in certain monthly  distributions  with respect to a Trust
consisting  primarily of the Mortgage Loans deposited by Banc of America Funding
Corporation (the  "Depositor").  The Trust was created pursuant to a Pooling and
Servicing  Agreement,  dated  October  30,  2006  (the  "Pooling  and  Servicing
Agreement"),  among the Depositor,  Wells Fargo Bank,  N.A., as master  servicer
(the  "Master   Servicer")  and  securities   administrator   (the   "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     This Class 30-IO  Certificate  is not  entitled to any  distributions  with
respect to principal.

     This Certificate does not evidence an obligation of, or an interest in, and
is  not  guaranteed  by the  Depositor,  the  Master  Servicer,  the  Securities

                                    A-30IO-2

<PAGE>

Administrator or the Trustee or any of their respective affiliates. Neither this
Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
agency or instrumentality.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                     * * *

                                    A-30IO-3

<PAGE>

                                 EXHIBIT A-30PO

                    [FORM OF FACE OF CLASS 30-PO CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 30-PO

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    A-30PO-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 30-PO

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-Off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $1,687,199.00

CUSIP No.:                                  05951K AQ 6

ISIN No.:                                   US05951KAQ67

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     This Class 30-PO Certificate represents the right to receive principal only
and holders of these  Certificates  are not entitled to distributions in respect
of interest.

                                    A-30PO-3

<PAGE>

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.

     This Certificate does not evidence an obligation of, or an interest in, and
is  not  guaranteed  by the  Depositor,  the  Master  Servicer,  the  Securities
Administrator or the Trustee or any of their respective affiliates. Neither this
Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
agency or instrumentality.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-30PO-3

<PAGE>

                                 EXHIBIT A-T2A1

                   [FORM OF FACE OF CLASS T2-A-1 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-1

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    A-T2A1-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-1

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $153,271,000.00

CUSIP No.:                                  05951K AX 1

ISIN No.:                                   US05951KAX19

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the

                                    A-T2A1-2

<PAGE>

Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-T2A1-3

<PAGE>

                                 EXHIBIT A-T2A2

                   [FORM OF FACE OF CLASS T2-A-2 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-2

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    A-T2A2-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-2

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $50,000,000.00

Pass-Through Rate:                          Floating

CUSIP No.:                                  05951K AY 9

ISIN No.:                                   US05951KAY91

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    A-T2A2-2

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    A-T2A2-3

<PAGE>

                                 EXHIBIT A-T2A3

                   [FORM OF FACE OF CLASS T2-A-3 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-3

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    B-T2A3-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-3

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $40,840,000.00

CUSIP No.:                                  05951K AZ 6

ISIN No.:                                   US05951KAZ66

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2A3-2

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2A3-3

<PAGE>

                                  EXHIBIT A-T2A4

                   [FORM OF FACE OF CLASS T2-A-4 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-4

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    B-T2A4-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-4

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $39,611,000.00

CUSIP No.:                                  05951K BA 0

ISIN No.:                                   US05951KBA07

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2A4-2

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2A4-3

<PAGE>

                                 EXHIBIT A-T2A5

                   [FORM OF FACE OF CLASS T2-A-5 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-5

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    B-T2A5-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-5

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $21,150,000.00

CUSIP No.:                                  05951K BB 8

ISIN No.:                                   US05951KBB89

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2A5-2

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2A5-3

<PAGE>

                                 EXHIBIT A-T2A6

                   [FORM OF FACE OF CLASS T2-A-6 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-6

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    B-T2A6-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-6

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $8,160,000.00

CUSIP No.:                                  05951K BC 6

ISIN No.:                                   US05951KBC62

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2A6-2

<PAGE>
interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2A6-3

<PAGE>

                                 EXHIBIT A-T2A7

                   [FORM OF FACE OF CLASS T2-A-7 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-7

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    B-T2A7-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-7

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $24,000,000.00

CUSIP No.:                                  05951K BD 4

ISIN No.:                                   US05951KBD46

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2A7-2

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2A7-3

<PAGE>

                                 EXHIBIT A-T2A8

                   [FORM OF FACE OF CLASS T2-A-8 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-8

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

                                    B-T2A8-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-8

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $34,937,000.00

CUSIP No.:                                  05951K BE 2

ISIN No.:                                   US05951KBE29

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2A8-2
<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2A8-3

<PAGE>

                                 EXHIBIT A-T2AA

                   [FORM OF FACE OF CLASS T2-A-A CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-A

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

AFTER THE AGGREGATE CLASS CERTIFICATE BALANCE OF THE MEZZANINE  CERTIFICATES HAS
BEEN REDUCED ZERO,  THE PRINCIPAL  PORTION OF REALIZED  LOSSES  ALLOCATED TO THE
CLASS  T2-A-5  CERTIFICATES  WILL BE BORNE BY THE CLASS T2-A-A  CERTIFICATES  AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

                                    B-T2AA-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-A

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $2,000,000.00

CUSIP No.:                                  05951K BF 9

ISIN No.:                                   US05951KBF93

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2AA-2

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2AA-3

<PAGE>

                                 EXHIBIT A-T2AB

                   [FORM OF FACE OF CLASS T2-A-B CERTIFICATE]

                      BANC OF AMERICA FUNDING CORPORATION
               Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-B

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

AFTER THE AGGREGATE CLASS CERTIFICATE BALANCE OF THE MEZZANINE  CERTIFICATES HAS
BEEN REDUCED ZERO,  THE PRINCIPAL  PORTION OF REALIZED  LOSSES  ALLOCATED TO THE
CLASS  T2-A-7  CERTIFICATES  WILL BE BORNE BY THE CLASS T2-A-B  CERTIFICATES  AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

                                    B-T2AB-1

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-A-B

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $3,500,000.00

CUSIP No.:                                  05951K BG 7

ISIN No.:                                   US05951KBG76

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2AB-2

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2AB-3

<PAGE>

                                  EXHIBIT B-1B1

                    [FORM OF FACE OF CLASS 1-B-1 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-B-1

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF PAYMENT TO THE SENIOR  SHIFTING
INTEREST  CERTIFICATES  AS  DESCRIBED  IN THE  POOLING AND  SERVICING  AGREEMENT
REFERRED TO HEREIN.

IN THE EVENT  THAT THIS  CERTIFICATE  IS NO  LONGER  RATED AT LEAST  BBB- OR ITS
EQUIVALENT,  THE PURCHASE AND HOLDING OF THIS CERTIFICATE BY OR ON BEHALF OF ANY
EMPLOYEE  BENEFIT  PLAN  OR  ARRANGEMENT,  INCLUDING  AN  INDIVIDUAL  RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO ERISA OR THE CODE  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS" WITHIN THE MEANING OF ERISA, THE CODE OR SIMILAR LAW.
IF THE RATING OF THIS CERTIFICATE  FALLS BELOW BBB- OR ITS EQUIVALENT,  TRANSFER
OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS THE  TRANSFEREE  DELIVERS  TO THE
SECURITIES  ADMINISTRATOR  EITHER  (I) A  REPRESENTATION  LETTER,  IN  FORM  AND
SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  STATING THAT (A) IT IS

                                    B-1B1-1

<PAGE>

NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR USING THE ASSETS OF ANY
SUCH PLAN TO EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE
SOURCE OF FUNDS USED TO  PURCHASE  THIS  CERTIFICATE  IS AN  "INSURANCE  COMPANY
GENERAL  ACCOUNT"  (AS  SUCH  TERM IS  DEFINED  IN  SECTION  V(E) OF  PROHIBITED
TRANSACTION  CLASS EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG. 35925 (JULY 12,
1995)),  THERE IS NO PLAN  WITH  RESPECT  TO WHICH THE  AMOUNT  OF SUCH  GENERAL
ACCOUNT'S  RESERVES AND LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF
SUCH PLAN AND ALL OTHER PLANS  MAINTAINED  BY THE SAME  EMPLOYER  (OR  AFFILIATE
THEREOF  AS DEFINED  IN  SECTION  V(A)(1) OF PTE 95-60) OR BY THE SAME  EMPLOYEE
ORGANIZATION  EXCEEDS 10% OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH
GENERAL ACCOUNT (AS SUCH AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTE 95-60)
AT THE DATE OF  ACQUISITION  AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL
ACCOUNT ARE PLANS TO WHICH PTE 95-60 APPLIES,  OR (II) AN OPINION OF COUNSEL, IN
FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT
THAT THE  PURCHASE OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED  TRANSACTION WITHIN THE
MEANING OF ERISA,  SECTION  4975 OF THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT
THE DEPOSITOR,  THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE
TO ANY  OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN IN THE POOLING AND SERVICING
AGREEMENT.  EACH PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN AT
ANY TIME THAT THIS  CERTIFICATE  HAS A RATING LOWER THAN BBB- OR ITS  EQUIVALENT
SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS  REQUIRED BY THE REPRESENTATION
LETTER  REFERRED TO IN THE  PRECEDING  SENTENCE,  UNLESS SUCH PERSON  SHALL HAVE
PROVIDED SUCH REPRESENTATION LETTER OR THE OPINION OF COUNSEL REFERRED TO IN THE
PRECEDING  SENTENCE TO THE SECURITIES  ADMINISTRATOR.  THE POOLING AND SERVICING
AGREEMENT  PROVIDES  THAT ANY  ATTEMPTED OR  PURPORTED  TRANSFER IN VIOLATION OF
THESE TRANSFER RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY
PURPORTED TRANSFEREE.

                                    B-1B1-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-B-1

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $8,026,000.00

Pass-Through Rate:                          6.250%

CUSIP No.:                                  05951K AR 4

ISIN No.:                                   US05951KAR41

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate

                                    B-1B1-3

<PAGE>

Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not  guaranteed by the  Depositor,  the Master  Servicer and
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-1B1-4

<PAGE>

                                  EXHIBIT B-1B2

                    [FORM OF FACE OF CLASS 1-B-2 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-B-2

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF PAYMENT TO THE SENIOR  SHIFTING
INTEREST  CERTIFICATES  AND THE CLASS 1-B-1  CERTIFICATES  AS  DESCRIBED  IN THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

IN THE EVENT  THAT THIS  CERTIFICATE  IS NO  LONGER  RATED AT LEAST  BBB- OR ITS
EQUIVALENT,  THE PURCHASE AND HOLDING OF THIS CERTIFICATE BY OR ON BEHALF OF ANY
EMPLOYEE  BENEFIT  PLAN  OR  ARRANGEMENT,  INCLUDING  AN  INDIVIDUAL  RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO ERISA OR THE CODE  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS" WITHIN THE MEANING OF ERISA, THE CODE OR SIMILAR LAW.
IF THE RATING OF THIS CERTIFICATE  FALLS BELOW BBB- OR ITS EQUIVALENT,  TRANSFER
OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS THE  TRANSFEREE  DELIVERS  TO THE
SECURITIES  ADMINISTRATOR  EITHER  (I) A  REPRESENTATION  LETTER,  IN  FORM  AND

                                    B-1B2-1

<PAGE>

SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  STATING THAT (A) IT IS
NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR USING THE ASSETS OF ANY
SUCH PLAN TO EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE
SOURCE OF FUNDS USED TO  PURCHASE  THIS  CERTIFICATE  IS AN  "INSURANCE  COMPANY
GENERAL  ACCOUNT"  (AS  SUCH  TERM IS  DEFINED  IN  SECTION  V(E) OF  PROHIBITED
TRANSACTION  CLASS EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG. 35925 (JULY 12,
1995)),  THERE IS NO PLAN  WITH  RESPECT  TO WHICH THE  AMOUNT  OF SUCH  GENERAL
ACCOUNT'S  RESERVES AND LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF
SUCH PLAN AND ALL OTHER PLANS  MAINTAINED  BY THE SAME  EMPLOYER  (OR  AFFILIATE
THEREOF  AS DEFINED  IN  SECTION  V(A)(1) OF PTE 95-60) OR BY THE SAME  EMPLOYEE
ORGANIZATION  EXCEEDS 10% OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH
GENERAL ACCOUNT (AS SUCH AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTE 95-60)
AT THE DATE OF  ACQUISITION  AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL
ACCOUNT ARE PLANS TO WHICH PTE 95-60 APPLIES,  OR (II) AN OPINION OF COUNSEL, IN
FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT
THAT THE  PURCHASE OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED  TRANSACTION WITHIN THE
MEANING OF ERISA,  SECTION  4975 OF THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT
THE DEPOSITOR,  THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE
TO ANY  OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN IN THE POOLING AND SERVICING
AGREEMENT.  EACH PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN AT
ANY TIME THAT THIS  CERTIFICATE  HAS A RATING LOWER THAN BBB- OR ITS  EQUIVALENT
SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS  REQUIRED BY THE REPRESENTATION
LETTER  REFERRED TO IN THE  PRECEDING  SENTENCE,  UNLESS SUCH PERSON  SHALL HAVE
PROVIDED SUCH REPRESENTATION LETTER OR THE OPINION OF COUNSEL REFERRED TO IN THE
PRECEDING  SENTENCE TO THE SECURITIES  ADMINISTRATOR.  THE POOLING AND SERVICING
AGREEMENT  PROVIDES  THAT ANY  ATTEMPTED OR  PURPORTED  TRANSFER IN VIOLATION OF
THESE TRANSFER RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY
PURPORTED TRANSFEREE.

                                    B-1B2-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-B-2

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $1,839,000.00

Pass-Through Rate:                          6.250%

CUSIP No.:                                  05951K AS 2

ISIN No.:                                   US05951KAS24

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate

                                     B-1B2-3

<PAGE>

Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not  guaranteed by the  Depositor,  the Master  Servicer and
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-1B2-4

<PAGE>

                                  EXHIBIT B-1B3

                    [FORM OF FACE OF CLASS 1-B-3 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-B-3

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF PAYMENT TO THE SENIOR  SHIFTING
INTEREST  CERTIFICATES,  THE  CLASS  1-B-1  CERTIFICATES  AND  THE  CLASS  1-B-2
CERTIFICATES  AS DESCRIBED IN THE POOLING AND  SERVICING  AGREEMENT  REFERRED TO
HEREIN.

IN THE EVENT  THAT THIS  CERTIFICATE  IS NO  LONGER  RATED AT LEAST  BBB- OR ITS
EQUIVALENT,  THE PURCHASE AND HOLDING OF THIS CERTIFICATE BY OR ON BEHALF OF ANY
EMPLOYEE  BENEFIT  PLAN  OR  ARRANGEMENT,  INCLUDING  AN  INDIVIDUAL  RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO ERISA OR THE CODE  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS" WITHIN THE MEANING OF ERISA, THE CODE OR SIMILAR LAW.
IF THE RATING OF THIS CERTIFICATE  FALLS BELOW BBB- OR ITS EQUIVALENT,  TRANSFER
OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS THE  TRANSFEREE  DELIVERS  TO THE
SECURITIES  ADMINISTRATOR  EITHER  (I) A  REPRESENTATION  LETTER,  IN  FORM  AND

                                     B-1B3-1

<PAGE>

SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  STATING THAT (A) IT IS
NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR USING THE ASSETS OF ANY
SUCH PLAN TO EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE
SOURCE OF FUNDS USED TO  PURCHASE  THIS  CERTIFICATE  IS AN  "INSURANCE  COMPANY
GENERAL  ACCOUNT"  (AS  SUCH  TERM IS  DEFINED  IN  SECTION  V(E) OF  PROHIBITED
TRANSACTION  CLASS EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG. 35925 (JULY 12,
1995)),  THERE IS NO PLAN  WITH  RESPECT  TO WHICH THE  AMOUNT  OF SUCH  GENERAL
ACCOUNT'S  RESERVES AND LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF
SUCH PLAN AND ALL OTHER PLANS  MAINTAINED  BY THE SAME  EMPLOYER  (OR  AFFILIATE
THEREOF  AS DEFINED  IN  SECTION  V(A)(1) OF PTE 95-60) OR BY THE SAME  EMPLOYEE
ORGANIZATION  EXCEEDS 10% OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH
GENERAL ACCOUNT (AS SUCH AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTE 95-60)
AT THE DATE OF  ACQUISITION  AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL
ACCOUNT ARE PLANS TO WHICH PTE 95-60 APPLIES,  OR (II) AN OPINION OF COUNSEL, IN
FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT
THAT THE  PURCHASE OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED  TRANSACTION WITHIN THE
MEANING OF ERISA,  SECTION  4975 OF THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT
THE DEPOSITOR,  THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE
TO ANY  OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN IN THE POOLING AND SERVICING
AGREEMENT.  EACH PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN AT
ANY TIME THAT THIS  CERTIFICATE  HAS A RATING LOWER THAN BBB- OR ITS  EQUIVALENT
SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS  REQUIRED BY THE REPRESENTATION
LETTER  REFERRED TO IN THE  PRECEDING  SENTENCE,  UNLESS SUCH PERSON  SHALL HAVE
PROVIDED SUCH REPRESENTATION LETTER OR THE OPINION OF COUNSEL REFERRED TO IN THE
PRECEDING  SENTENCE TO THE SECURITIES  ADMINISTRATOR.  THE POOLING AND SERVICING
AGREEMENT  PROVIDES  THAT ANY  ATTEMPTED OR  PURPORTED  TRANSFER IN VIOLATION OF
THESE TRANSFER RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY
PURPORTED TRANSFEREE.

                                    B-1B3-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-B-3

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $1,003,000.00

Pass-Through Rate:                          6.250%

CUSIP No.:                                  05951K AT 0

ISIN No.:                                   US05951KAT07

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate

                                    B-1B3-3

<PAGE>

Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not  guaranteed by the  Depositor,  the Master  Servicer and
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-1B3-4

<PAGE>

                                  EXHIBIT B-1B4

                    [FORM OF FACE OF CLASS 1-B-4 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-B-4

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF PAYMENT TO THE SENIOR  SHIFTING
INTEREST   CERTIFICATES,   THE  CLASS  1-B-1   CERTIFICATES,   THE  CLASS  1-B-2
CERTIFICATES  AND THE CLASS 1-B-3  CERTIFICATES  AS DESCRIBED IN THE POOLING AND
SERVICING AGREEMENT.

THIS  CERTIFICATE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "1933  ACT").  ANY RESALE OR TRANSFER OF THIS  CERTIFICATE  WITHOUT
REGISTRATION  THEREOF  UNDER  THE  1933  ACT MAY  ONLY BE MADE IN A  TRANSACTION
EXEMPTED FROM THE  REGISTRATION  REQUIREMENTS  OF THE 1933 ACT AND IN ACCORDANCE
WITH THE PROVISIONS OF THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN.

UNDER CURRENT LAW THE PURCHASE AND HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF
OF ANY EMPLOYEE BENEFIT PLAN OR ARRANGEMENT,  INCLUDING AN INDIVIDUAL RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO THE PROHIBITED  TRANSACTION  PROVISIONS OF ERISA OR THE CODE
OR THE FIDUCIARY  PROVISIONS OF ERISA  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS"  WITHIN THE MEANING OF ERISA, THE CODE OR A VIOLATION
OF  SIMILAR  LAW.  TRANSFER  OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS  THE
TRANSFEREE DELIVERS TO THE SECURITIES  ADMINISTRATOR EITHER (I) A REPRESENTATION
LETTER,  IN FORM AND SUBSTANCE  SATISFACTORY  TO THE  SECURITIES  ADMINISTRATOR,
STATING  THAT (A) IT IS NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR
USING THE  ASSETS OF ANY SUCH PLAN TO EFFECT  SUCH  PURCHASE  OR (B) IF IT IS AN
INSURANCE COMPANY, THAT THE SOURCE OF FUNDS USED TO PURCHASE THIS CERTIFICATE IS
AN "INSURANCE  COMPANY GENERAL ACCOUNT" (AS SUCH TERM IS DEFINED IN SECTION V(E)
OF PROHIBITED  TRANSACTION  CLASS  EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG.

                                    B-1B4-1

<PAGE>

35925 (JULY 12, 1995)), THERE IS NO PLAN SUBJECT TO ERISA OR SECTION 4975 OF THE
CODE WITH  RESPECT TO WHICH THE AMOUNT OF SUCH  GENERAL  ACCOUNT'S  RESERVES AND
LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF SUCH PLAN AND ALL OTHER
SUCH PLANS  MAINTAINED BY THE SAME EMPLOYER (OR AFFILIATE  THEREOF AS DEFINED IN
SECTION V(A)(1) OF PTE 95-60) OR BY THE SAME EMPLOYEE  ORGANIZATION  EXCEEDS 10%
OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH GENERAL  ACCOUNT (AS SUCH
AMOUNTS  ARE  DETERMINED  UNDER  SECTION  I(A)  OF PTE  95-60)  AT THE  DATE  OF
ACQUISITION AND ALL SUCH PLANS THAT HAVE AN INTEREST IN SUCH GENERAL ACCOUNT ARE
PLANS TO WHICH PTE 95-60  APPLIES,  OR (II) AN OPINION OF  COUNSEL,  IN FORM AND
SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT THAT THE
PURCHASE  OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT  PROHIBITED  TRANSACTION WITHIN THE MEANING
OF SECTION 406 OF ERISA,  SECTION 4975 OF THE CODE OR A VIOLATION OF SIMILAR LAW
AND  WILL NOT  SUBJECT  THE  DEPOSITOR,  THE  MASTER  SERVICER,  THE  SECURITIES
ADMINISTRATOR  OR THE TRUSTEE TO ANY OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN
IN  THE  POOLING  AND  SERVICING  AGREEMENT.   EACH  PERSON  WHO  ACQUIRES  THIS
CERTIFICATE  OR  ANY  INTEREST   THEREIN  SHALL  BE  DEEMED  TO  HAVE  MADE  THE
REPRESENTATIONS  REQUIRED  BY  THE  REPRESENTATION  LETTER  REFERRED  TO IN  THE
PRECEDING  SENTENCE,  UNLESS SUCH PERSON SHALL HAVE PROVIDED SUCH REPRESENTATION
LETTER OR THE OPINION OF COUNSEL  REFERRED TO IN THE  PRECEDING  SENTENCE TO THE
SECURITIES ADMINISTRATOR.  THE POOLING AND SERVICING AGREEMENT PROVIDES THAT ANY
ATTEMPTED OR PURPORTED TRANSFER IN VIOLATION OF THESE TRANSFER RESTRICTIONS WILL
BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY PURPORTED TRANSFEREE.

                                    B-1B4-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-B-4

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $669,000.00

Pass-Through Rate:                          6.2500%

CUSIP No.:                                  05951K AU 7

ISIN No.:                                   US05951KAU79

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate

                                    B-1B4-3

<PAGE>

Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     No  transfer  of a  Certificate  of this Class  shall be made  unless  such
transfer is exempt from the  registration  requirements of the Securities Act of
1933, as amended (the "1933 Act"),  and any applicable  state securities laws or
is made in accordance  with the 1933 Act and such laws. In the event of any such
transfer,  (i) unless the  transfer  is made in  reliance on Rule 144A under the
1933 Act, the  Securities  Administrator  or the Depositor may require a written
Opinion of Counsel (which may be in-house counsel) acceptable to and in form and
substance  reasonably  satisfactory  to the  Securities  Administrator  and  the
Depositor  that such transfer may be made  pursuant to an exemption,  describing
the applicable exemption and the basis therefor, from the 1933 Act and such laws
or is being  made  pursuant  to the 1933 Act and such  laws,  which  Opinion  of
Counsel shall not be an expense of the Securities Administrator or the Depositor
and (ii) the  Securities  Administrator  shall  require a  certificate  from the
Certificateholder  desiring to effect such  transfer  substantially  in the form
attached to the Pooling and Servicing Agreement as Exhibit G-1 and a certificate
from such  Certificateholder's  prospective transferee substantially in the form
attached to the Pooling and  Servicing  Agreement  either as Exhibit  G-2A or as
Exhibit  G-2B,  which  certificates  shall not be an expense  of the  Securities
Administrator or the Depositor;  provided that the foregoing  requirements under
clauses  (i) and (ii)  shall not apply to a  transfer  of a Private  Certificate
between or among the  Depositor,  the Sponsor,  their  affiliates  or both.  The
Holder of a Private Certificate desiring to effect such transfer shall, and does
hereby  agree to,  indemnify  the  Securities  Administrator  and the  Depositor
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such federal and state laws.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-1B4-4

<PAGE>

                                  EXHIBIT B-1B5

                    [FORM OF FACE OF CLASS 1-B-5 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-B-5

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF PAYMENT TO THE SENIOR  SHIFTING
INTEREST   CERTIFICATES,   THE  CLASS  1-B-1   CERTIFICATES,   THE  CLASS  1-B-2
CERTIFICATES,  THE CLASS 1-B-3  CERTIFICATES AND THE CLASS 1-B-4 CERTIFICATES AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT.

THIS  CERTIFICATE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "1933  ACT").  ANY RESALE OR TRANSFER OF THIS  CERTIFICATE  WITHOUT
REGISTRATION  THEREOF  UNDER  THE  1933  ACT MAY  ONLY BE MADE IN A  TRANSACTION
EXEMPTED FROM THE  REGISTRATION  REQUIREMENTS  OF THE 1933 ACT AND IN ACCORDANCE
WITH THE PROVISIONS OF THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN.

UNDER CURRENT LAW THE PURCHASE AND HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF
OF ANY EMPLOYEE BENEFIT PLAN OR ARRANGEMENT,  INCLUDING AN INDIVIDUAL RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO THE PROHIBITED  TRANSACTION  PROVISIONS OF ERISA OR THE CODE
OR THE FIDUCIARY  PROVISIONS OF ERISA  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS"  WITHIN THE MEANING OF ERISA, THE CODE OR A VIOLATION
OF  SIMILAR  LAW.  TRANSFER  OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS  THE
TRANSFEREE DELIVERS TO THE SECURITIES  ADMINISTRATOR EITHER (I) A REPRESENTATION
LETTER,  IN FORM AND SUBSTANCE  SATISFACTORY  TO THE  SECURITIES  ADMINISTRATOR,
STATING  THAT (A) IT IS NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR
USING THE  ASSETS OF ANY SUCH PLAN TO EFFECT  SUCH  PURCHASE  OR (B) IF IT IS AN
INSURANCE COMPANY, THAT THE SOURCE OF FUNDS USED TO PURCHASE THIS CERTIFICATE IS
AN "INSURANCE  COMPANY GENERAL ACCOUNT" (AS SUCH TERM IS DEFINED IN SECTION V(E)
OF PROHIBITED  TRANSACTION  CLASS  EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG.

                                    B-1B5-1

<PAGE>

35925 (JULY 12, 1995)), THERE IS NO PLAN SUBJECT TO ERISA OR SECTION 4975 OF THE
CODE WITH  RESPECT TO WHICH THE AMOUNT OF SUCH  GENERAL  ACCOUNT'S  RESERVES AND
LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF SUCH PLAN AND ALL OTHER
SUCH PLANS  MAINTAINED BY THE SAME EMPLOYER (OR AFFILIATE  THEREOF AS DEFINED IN
SECTION V(A)(1) OF PTE 95-60) OR BY THE SAME EMPLOYEE  ORGANIZATION  EXCEEDS 10%
OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH GENERAL  ACCOUNT (AS SUCH
AMOUNTS  ARE  DETERMINED  UNDER  SECTION  I(A)  OF PTE  95-60)  AT THE  DATE  OF
ACQUISITION AND ALL SUCH PLANS THAT HAVE AN INTEREST IN SUCH GENERAL ACCOUNT ARE
PLANS TO WHICH PTE 95-60  APPLIES,  OR (II) AN OPINION OF  COUNSEL,  IN FORM AND
SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT THAT THE
PURCHASE  OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT  PROHIBITED  TRANSACTION WITHIN THE MEANING
OF SECTION 406 OF ERISA,  SECTION 4975 OF THE CODE OR A VIOLATION OF SIMILAR LAW
AND  WILL NOT  SUBJECT  THE  DEPOSITOR,  THE  MASTER  SERVICER,  THE  SECURITIES
ADMINISTRATOR  OR THE TRUSTEE TO ANY OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN
IN  THE  POOLING  AND  SERVICING  AGREEMENT.   EACH  PERSON  WHO  ACQUIRES  THIS
CERTIFICATE  OR  ANY  INTEREST   THEREIN  SHALL  BE  DEEMED  TO  HAVE  MADE  THE
REPRESENTATIONS  REQUIRED  BY  THE  REPRESENTATION  LETTER  REFERRED  TO IN  THE
PRECEDING  SENTENCE,  UNLESS SUCH PERSON SHALL HAVE PROVIDED SUCH REPRESENTATION
LETTER OR THE OPINION OF COUNSEL  REFERRED TO IN THE  PRECEDING  SENTENCE TO THE
SECURITIES ADMINISTRATOR.  THE POOLING AND SERVICING AGREEMENT PROVIDES THAT ANY
ATTEMPTED OR PURPORTED TRANSFER IN VIOLATION OF THESE TRANSFER RESTRICTIONS WILL
BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY PURPORTED TRANSFEREE.

                                    B-1B5-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-B-5

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $502,000.00

Pass-Through Rate:                          6.2500%

CUSIP No.:                                  05951K AV 5

ISIN No.:                                   US05951KAV52

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate

                                    B-1B5-3

<PAGE>

Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     No  transfer  of a  Certificate  of this Class  shall be made  unless  such
transfer is exempt from the  registration  requirements of the Securities Act of
1933, as amended (the "1933 Act"),  and any applicable  state securities laws or
is made in accordance  with the 1933 Act and such laws. In the event of any such
transfer,  (i) unless the  transfer  is made in  reliance on Rule 144A under the
1933 Act, the  Securities  Administrator  or the Depositor may require a written
Opinion of Counsel (which may be in-house counsel) acceptable to and in form and
substance  reasonably  satisfactory  to the  Securities  Administrator  and  the
Depositor  that such transfer may be made  pursuant to an exemption,  describing
the applicable exemption and the basis therefor, from the 1933 Act and such laws
or is being  made  pursuant  to the 1933 Act and such  laws,  which  Opinion  of
Counsel shall not be an expense of the Securities Administrator or the Depositor
and (ii) the  Securities  Administrator  shall  require a  certificate  from the
Certificateholder  desiring to effect such  transfer  substantially  in the form
attached to the Pooling and Servicing Agreement as Exhibit G-1 and a certificate
from such  Certificateholder's  prospective transferee substantially in the form
attached to the Pooling and  Servicing  Agreement  either as Exhibit  G-2A or as
Exhibit  G-2B,  which  certificates  shall not be an expense  of the  Securities
Administrator or the Depositor;  provided that the foregoing  requirements under
clauses  (i) and (ii)  shall not apply to a  transfer  of a Private  Certificate
between or among the  Depositor,  the Sponsor,  their  affiliates  or both.  The
Holder of a Private Certificate desiring to effect such transfer shall, and does
hereby  agree to,  indemnify  the  Securities  Administrator  and the  Depositor
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such federal and state laws.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-1B5-4

<PAGE>

                                  EXHIBIT B-1B6

                    [FORM OF FACE OF CLASS 1-B-6 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-B-6

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF PAYMENT TO THE SENIOR  SHIFTING
INTEREST   CERTIFICATES,   THE  CLASS  1-B-1   CERTIFICATES,   THE  CLASS  1-B-2
CERTIFICATES, THE CLASS 1-B-3 CERTIFICATES, THE CLASS 1-B-4 CERTIFICATES AND THE
CLASS 1-B-5 CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT.

UNDER CURRENT LAW THE PURCHASE AND HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF
OF ANY EMPLOYEE BENEFIT PLAN OR ARRANGEMENT,  INCLUDING AN INDIVIDUAL RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO THE PROHIBITED  TRANSACTION  PROVISIONS OF ERISA OR THE CODE
OR THE FIDUCIARY  PROVISIONS OF ERISA  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS"  WITHIN THE MEANING OF ERISA, THE CODE OR A VIOLATION
OF  SIMILAR  LAW.  TRANSFER  OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS  THE
TRANSFEREE DELIVERS TO THE SECURITIES  ADMINISTRATOR EITHER (I) A REPRESENTATION
LETTER,  IN FORM AND SUBSTANCE  SATISFACTORY  TO THE  SECURITIES  ADMINISTRATOR,
STATING  THAT (A) IT IS NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR
USING THE  ASSETS OF ANY SUCH PLAN TO EFFECT  SUCH  PURCHASE  OR (B) IF IT IS AN
INSURANCE COMPANY, THAT THE SOURCE OF FUNDS USED TO PURCHASE THIS CERTIFICATE IS
AN "INSURANCE  COMPANY GENERAL ACCOUNT" (AS SUCH TERM IS DEFINED IN SECTION V(E)
OF PROHIBITED  TRANSACTION  CLASS  EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG.
35925 (JULY 12, 1995)), THERE IS NO PLAN SUBJECT TO ERISA OR SECTION 4975 OF THE
CODE WITH  RESPECT TO WHICH THE AMOUNT OF SUCH  GENERAL  ACCOUNT'S  RESERVES AND
LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF SUCH PLAN AND ALL OTHER
SUCH PLANS  MAINTAINED BY THE SAME EMPLOYER (OR AFFILIATE  THEREOF AS DEFINED IN
SECTION V(A)(1) OF PTE 95-60) OR BY THE SAME EMPLOYEE  ORGANIZATION  EXCEEDS 10%
OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH GENERAL  ACCOUNT (AS SUCH

                                    B-1B6-1

<PAGE>

AMOUNTS  ARE  DETERMINED  UNDER  SECTION  I(A)  OF PTE  95-60)  AT THE  DATE  OF
ACQUISITION AND ALL SUCH PLANS THAT HAVE AN INTEREST IN SUCH GENERAL ACCOUNT ARE
PLANS TO WHICH PTE 95-60  APPLIES,  OR (II) AN OPINION OF  COUNSEL,  IN FORM AND
SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT THAT THE
PURCHASE  OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT  PROHIBITED  TRANSACTION WITHIN THE MEANING
OF SECTION 406 OF ERISA,  SECTION 4975 OF THE CODE OR A VIOLATION OF SIMILAR LAW
AND  WILL NOT  SUBJECT  THE  DEPOSITOR,  THE  MASTER  SERVICER,  THE  SECURITIES
ADMINISTRATOR  OR THE TRUSTEE TO ANY OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN
IN  THE  POOLING  AND  SERVICING  AGREEMENT.   EACH  PERSON  WHO  ACQUIRES  THIS
CERTIFICATE  OR  ANY  INTEREST   THEREIN  SHALL  BE  DEEMED  TO  HAVE  MADE  THE
REPRESENTATIONS  REQUIRED  BY  THE  REPRESENTATION  LETTER  REFERRED  TO IN  THE
PRECEDING  SENTENCE,  UNLESS SUCH PERSON SHALL HAVE PROVIDED SUCH REPRESENTATION
LETTER OR THE OPINION OF COUNSEL  REFERRED TO IN THE  PRECEDING  SENTENCE TO THE
SECURITIES ADMINISTRATOR.  THE POOLING AND SERVICING AGREEMENT PROVIDES THAT ANY
ATTEMPTED OR PURPORTED TRANSFER IN VIOLATION OF THESE TRANSFER RESTRICTIONS WILL
BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY PURPORTED TRANSFEREE.

                                    B-1B6-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                   Class 1-B-6

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $501,662.00

Pass-Through Rate:                          6.2500%

CUSIP No.:                                  05951K AW 3

ISIN No.:                                   US05951KAW36

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate

                                    B-1B6-3

<PAGE>

Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     No  transfer  of a  Certificate  of this Class  shall be made  unless  such
transfer is exempt from the  registration  requirements of the Securities Act of
1933, as amended (the "1933 Act"),  and any applicable  state securities laws or
is made in accordance  with the 1933 Act and such laws. In the event of any such
transfer,  (i) unless the  transfer  is made in  reliance on Rule 144A under the
1933 Act, the  Securities  Administrator  or the Depositor may require a written
Opinion of Counsel (which may be in-house counsel) acceptable to and in form and
substance  reasonably  satisfactory  to the  Securities  Administrator  and  the
Depositor  that such transfer may be made  pursuant to an exemption,  describing
the applicable exemption and the basis therefor, from the 1933 Act and such laws
or is being  made  pursuant  to the 1933 Act and such  laws,  which  Opinion  of
Counsel shall not be an expense of the Securities Administrator or the Depositor
and (ii) the  Securities  Administrator  shall  require a  certificate  from the
Certificateholder  desiring to effect such  transfer  substantially  in the form
attached to the Pooling and Servicing Agreement as Exhibit G-1 and a certificate
from such  Certificateholder's  prospective transferee substantially in the form
attached to the Pooling and  Servicing  Agreement  either as Exhibit  G-2A or as
Exhibit  G-2B,  which  certificates  shall not be an expense  of the  Securities
Administrator or the Depositor;  provided that the foregoing  requirements under
clauses  (i) and (ii)  shall not apply to a  transfer  of a Private  Certificate
between or among the  Depositor,  the Sponsor,  their  affiliates  or both.  The
Holder of a Private Certificate desiring to effect such transfer shall, and does
hereby  agree to,  indemnify  the  Securities  Administrator  and the  Depositor
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such federal and state laws.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-1B6-4

<PAGE>

                                 EXHIBIT B-T2M1

                   [FORM OF FACE OF CLASS T2-M-1 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-1

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS   CERTIFICATE   IS   SUBORDINATED   IN  RIGHT  OF  PAYMENT  TO  THE  SENIOR
OVERCOLLATERALIZED  CERTIFICATES  AS  DESCRIBED  IN THE  POOLING  AND  SERVICING
AGREEMENT REFERRED TO HEREIN.

IN THE EVENT  THAT THIS  CERTIFICATE  IS NO  LONGER  RATED AT LEAST  BBB- OR ITS
EQUIVALENT,  THE PURCHASE AND HOLDING OF THIS CERTIFICATE BY OR ON BEHALF OF ANY
EMPLOYEE  BENEFIT  PLAN  OR  ARRANGEMENT,  INCLUDING  AN  INDIVIDUAL  RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO ERISA OR THE CODE  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS" WITHIN THE MEANING OF ERISA, THE CODE OR SIMILAR LAW.
IF THE RATING OF THIS CERTIFICATE  FALLS BELOW BBB- OR ITS EQUIVALENT,  TRANSFER
OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS THE  TRANSFEREE  DELIVERS  TO THE
SECURITIES  ADMINISTRATOR  EITHER  (I) A  REPRESENTATION  LETTER,  IN  FORM  AND

                                    B-T2M1-1

<PAGE>

SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  STATING THAT (A) IT IS
NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR USING THE ASSETS OF ANY
SUCH PLAN TO EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE
SOURCE OF FUNDS USED TO  PURCHASE  THIS  CERTIFICATE  IS AN  "INSURANCE  COMPANY
GENERAL  ACCOUNT"  (AS  SUCH  TERM IS  DEFINED  IN  SECTION  V(E) OF  PROHIBITED
TRANSACTION  CLASS EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG. 35925 (JULY 12,
1995)),  THERE IS NO PLAN  WITH  RESPECT  TO WHICH THE  AMOUNT  OF SUCH  GENERAL
ACCOUNT'S  RESERVES AND LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF
SUCH PLAN AND ALL OTHER PLANS  MAINTAINED  BY THE SAME  EMPLOYER  (OR  AFFILIATE
THEREOF  AS DEFINED  IN  SECTION  V(A)(1) OF PTE 95-60) OR BY THE SAME  EMPLOYEE
ORGANIZATION  EXCEEDS 10% OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH
GENERAL ACCOUNT (AS SUCH AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTE 95-60)
AT THE DATE OF  ACQUISITION  AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL
ACCOUNT ARE PLANS TO WHICH PTE 95-60 APPLIES,  OR (II) AN OPINION OF COUNSEL, IN
FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT
THAT THE  PURCHASE OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED  TRANSACTION WITHIN THE
MEANING OF ERISA,  SECTION  4975 OF THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT
THE DEPOSITOR,  THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE
TO ANY  OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN IN THE POOLING AND SERVICING
AGREEMENT.  EACH PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN AT
ANY TIME THAT THIS  CERTIFICATE  HAS A RATING LOWER THAN BBB- OR ITS  EQUIVALENT
SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS  REQUIRED BY THE REPRESENTATION
LETTER  REFERRED TO IN THE  PRECEDING  SENTENCE,  UNLESS SUCH PERSON  SHALL HAVE
PROVIDED SUCH REPRESENTATION LETTER OR THE OPINION OF COUNSEL REFERRED TO IN THE
PRECEDING  SENTENCE TO THE SECURITIES  ADMINISTRATOR.  THE POOLING AND SERVICING
AGREEMENT  PROVIDES  THAT ANY  ATTEMPTED OR  PURPORTED  TRANSFER IN VIOLATION OF
THESE TRANSFER RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY
PURPORTED TRANSFEREE.

                                    B-T2M1-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-1

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $6,668,000.00

CUSIP No.:                                  05951K BH 5

ISIN No.:                                   US05951KBH59

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2M1-3

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2M1-4

<PAGE>

                                 EXHIBIT B-T2M2

                   [FORM OF FACE OF CLASS T2-M-2 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-2

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS   CERTIFICATE   IS   SUBORDINATED   IN  RIGHT  OF  PAYMENT  TO  THE  SENIOR
OVERCOLLATERALIZED  CERTIFICATES AND THE CLASS T2-M-1  CERTIFICATES AS DESCRIBED
IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

IN THE EVENT  THAT THIS  CERTIFICATE  IS NO  LONGER  RATED AT LEAST  BBB- OR ITS
EQUIVALENT,  THE PURCHASE AND HOLDING OF THIS CERTIFICATE BY OR ON BEHALF OF ANY
EMPLOYEE  BENEFIT  PLAN  OR  ARRANGEMENT,  INCLUDING  AN  INDIVIDUAL  RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO ERISA OR THE CODE  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS" WITHIN THE MEANING OF ERISA, THE CODE OR SIMILAR LAW.
IF THE RATING OF THIS CERTIFICATE  FALLS BELOW BBB- OR ITS EQUIVALENT,  TRANSFER
OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS THE  TRANSFEREE  DELIVERS  TO THE

                                    B-T2M2-1

<PAGE>

SECURITIES  ADMINISTRATOR  EITHER  (I) A  REPRESENTATION  LETTER,  IN  FORM  AND
SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  STATING THAT (A) IT IS
NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR USING THE ASSETS OF ANY
SUCH PLAN TO EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE
SOURCE OF FUNDS USED TO  PURCHASE  THIS  CERTIFICATE  IS AN  "INSURANCE  COMPANY
GENERAL  ACCOUNT"  (AS  SUCH  TERM IS  DEFINED  IN  SECTION  V(E) OF  PROHIBITED
TRANSACTION  CLASS EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG. 35925 (JULY 12,
1995)),  THERE IS NO PLAN  WITH  RESPECT  TO WHICH THE  AMOUNT  OF SUCH  GENERAL
ACCOUNT'S  RESERVES AND LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF
SUCH PLAN AND ALL OTHER PLANS  MAINTAINED  BY THE SAME  EMPLOYER  (OR  AFFILIATE
THEREOF  AS DEFINED  IN  SECTION  V(A)(1) OF PTE 95-60) OR BY THE SAME  EMPLOYEE
ORGANIZATION  EXCEEDS 10% OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH
GENERAL ACCOUNT (AS SUCH AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTE 95-60)
AT THE DATE OF  ACQUISITION  AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL
ACCOUNT ARE PLANS TO WHICH PTE 95-60 APPLIES,  OR (II) AN OPINION OF COUNSEL, IN
FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT
THAT THE  PURCHASE OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED  TRANSACTION WITHIN THE
MEANING OF ERISA,  SECTION  4975 OF THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT
THE DEPOSITOR,  THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE
TO ANY  OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN IN THE POOLING AND SERVICING
AGREEMENT.  EACH PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN AT
ANY TIME THAT THIS  CERTIFICATE  HAS A RATING LOWER THAN BBB- OR ITS  EQUIVALENT
SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS  REQUIRED BY THE REPRESENTATION
LETTER  REFERRED TO IN THE  PRECEDING  SENTENCE,  UNLESS SUCH PERSON  SHALL HAVE
PROVIDED SUCH REPRESENTATION LETTER OR THE OPINION OF COUNSEL REFERRED TO IN THE
PRECEDING  SENTENCE TO THE SECURITIES  ADMINISTRATOR.  THE POOLING AND SERVICING
AGREEMENT  PROVIDES  THAT ANY  ATTEMPTED OR  PURPORTED  TRANSFER IN VIOLATION OF
THESE TRANSFER RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY
PURPORTED TRANSFEREE.

                                    B-T2M2-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-2

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $2,425,000.00

CUSIP No.:                                  05951K BJ 1

ISIN No.:                                   US05951KBJ16

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2M2-3

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2M2-4

<PAGE>

                                 EXHIBIT B-T2M3

                   [FORM OF FACE OF CLASS T2-M-3 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-3

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS   CERTIFICATE   IS   SUBORDINATED   IN  RIGHT  OF  PAYMENT  TO  THE  SENIOR
OVERCOLLATERALIZED  CERTIFICATES,  THE CLASS T2-M-1  CERTIFICATES  AND THE CLASS
T2-M-2 CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED
TO HEREIN.

IN THE EVENT  THAT THIS  CERTIFICATE  IS NO  LONGER  RATED AT LEAST  BBB- OR ITS
EQUIVALENT,  THE PURCHASE AND HOLDING OF THIS CERTIFICATE BY OR ON BEHALF OF ANY
EMPLOYEE  BENEFIT  PLAN  OR  ARRANGEMENT,  INCLUDING  AN  INDIVIDUAL  RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO ERISA OR THE CODE  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS" WITHIN THE MEANING OF ERISA, THE CODE OR SIMILAR LAW.
IF THE RATING OF THIS CERTIFICATE  FALLS BELOW BBB- OR ITS EQUIVALENT,  TRANSFER
OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS THE  TRANSFEREE  DELIVERS  TO THE

                                    B-T2M3-1

<PAGE>

SECURITIES  ADMINISTRATOR  EITHER  (I) A  REPRESENTATION  LETTER,  IN  FORM  AND
SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  STATING THAT (A) IT IS
NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR USING THE ASSETS OF ANY
SUCH PLAN TO EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE
SOURCE OF FUNDS USED TO  PURCHASE  THIS  CERTIFICATE  IS AN  "INSURANCE  COMPANY
GENERAL  ACCOUNT"  (AS  SUCH  TERM IS  DEFINED  IN  SECTION  V(E) OF  PROHIBITED
TRANSACTION  CLASS EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG. 35925 (JULY 12,
1995)),  THERE IS NO PLAN  WITH  RESPECT  TO WHICH THE  AMOUNT  OF SUCH  GENERAL
ACCOUNT'S  RESERVES AND LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF
SUCH PLAN AND ALL OTHER PLANS  MAINTAINED  BY THE SAME  EMPLOYER  (OR  AFFILIATE
THEREOF  AS DEFINED  IN  SECTION  V(A)(1) OF PTE 95-60) OR BY THE SAME  EMPLOYEE
ORGANIZATION  EXCEEDS 10% OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH
GENERAL ACCOUNT (AS SUCH AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTE 95-60)
AT THE DATE OF  ACQUISITION  AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL
ACCOUNT ARE PLANS TO WHICH PTE 95-60 APPLIES,  OR (II) AN OPINION OF COUNSEL, IN
FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT
THAT THE  PURCHASE OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED  TRANSACTION WITHIN THE
MEANING OF ERISA,  SECTION  4975 OF THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT
THE DEPOSITOR,  THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE
TO ANY  OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN IN THE POOLING AND SERVICING
AGREEMENT.  EACH PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN AT
ANY TIME THAT THIS  CERTIFICATE  HAS A RATING LOWER THAN BBB- OR ITS  EQUIVALENT
SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS  REQUIRED BY THE REPRESENTATION
LETTER  REFERRED TO IN THE  PRECEDING  SENTENCE,  UNLESS SUCH PERSON  SHALL HAVE
PROVIDED SUCH REPRESENTATION LETTER OR THE OPINION OF COUNSEL REFERRED TO IN THE
PRECEDING  SENTENCE TO THE SECURITIES  ADMINISTRATOR.  THE POOLING AND SERVICING
AGREEMENT  PROVIDES  THAT ANY  ATTEMPTED OR  PURPORTED  TRANSFER IN VIOLATION OF
THESE TRANSFER RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY
PURPORTED TRANSFEREE.

                                    B-T2M3-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-3

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $2,021,000.00

CUSIP No.:                                  05951K BK 8

ISIN No.:                                   US05951KBK88

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2M3-3

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2M3-4

<PAGE>

                                 EXHIBIT B-T2M4

                   [FORM OF FACE OF CLASS T2-M-4 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-4

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS   CERTIFICATE   IS   SUBORDINATED   IN  RIGHT  OF  PAYMENT  TO  THE  SENIOR
OVERCOLLATERALIZED CERTIFICATES, THE CLASS T2-M-1 CERTIFICATES, THE CLASS T2-M-2
CERTIFICATES  AND THE CLASS T2-M-3  CERTIFICATES AS DESCRIBED IN THE POOLING AND
SERVICING AGREEMENT REFERRED TO HEREIN.

IN THE EVENT  THAT THIS  CERTIFICATE  IS NO  LONGER  RATED AT LEAST  BBB- OR ITS
EQUIVALENT,  THE PURCHASE AND HOLDING OF THIS CERTIFICATE BY OR ON BEHALF OF ANY
EMPLOYEE  BENEFIT  PLAN  OR  ARRANGEMENT,  INCLUDING  AN  INDIVIDUAL  RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO ERISA OR THE CODE  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS" WITHIN THE MEANING OF ERISA, THE CODE OR SIMILAR LAW.
IF THE RATING OF THIS CERTIFICATE  FALLS BELOW BBB- OR ITS EQUIVALENT,  TRANSFER

                                    B-T2M4-1

<PAGE>

OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS THE  TRANSFEREE  DELIVERS  TO THE
SECURITIES  ADMINISTRATOR  EITHER  (I) A  REPRESENTATION  LETTER,  IN  FORM  AND
SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  STATING THAT (A) IT IS
NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR USING THE ASSETS OF ANY
SUCH PLAN TO EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE
SOURCE OF FUNDS USED TO  PURCHASE  THIS  CERTIFICATE  IS AN  "INSURANCE  COMPANY
GENERAL  ACCOUNT"  (AS  SUCH  TERM IS  DEFINED  IN  SECTION  V(E) OF  PROHIBITED
TRANSACTION  CLASS EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG. 35925 (JULY 12,
1995)),  THERE IS NO PLAN  WITH  RESPECT  TO WHICH THE  AMOUNT  OF SUCH  GENERAL
ACCOUNT'S  RESERVES AND LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF
SUCH PLAN AND ALL OTHER PLANS  MAINTAINED  BY THE SAME  EMPLOYER  (OR  AFFILIATE
THEREOF  AS DEFINED  IN  SECTION  V(A)(1) OF PTE 95-60) OR BY THE SAME  EMPLOYEE
ORGANIZATION  EXCEEDS 10% OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH
GENERAL ACCOUNT (AS SUCH AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTE 95-60)
AT THE DATE OF  ACQUISITION  AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL
ACCOUNT ARE PLANS TO WHICH PTE 95-60 APPLIES,  OR (II) AN OPINION OF COUNSEL, IN
FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT
THAT THE  PURCHASE OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED  TRANSACTION WITHIN THE
MEANING OF ERISA,  SECTION  4975 OF THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT
THE DEPOSITOR,  THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE
TO ANY  OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN IN THE POOLING AND SERVICING
AGREEMENT.  EACH PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN AT
ANY TIME THAT THIS  CERTIFICATE  HAS A RATING LOWER THAN BBB- OR ITS  EQUIVALENT
SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS  REQUIRED BY THE REPRESENTATION
LETTER  REFERRED TO IN THE  PRECEDING  SENTENCE,  UNLESS SUCH PERSON  SHALL HAVE
PROVIDED SUCH REPRESENTATION LETTER OR THE OPINION OF COUNSEL REFERRED TO IN THE
PRECEDING  SENTENCE TO THE SECURITIES  ADMINISTRATOR.  THE POOLING AND SERVICING
AGREEMENT  PROVIDES  THAT ANY  ATTEMPTED OR  PURPORTED  TRANSFER IN VIOLATION OF
THESE TRANSFER RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY
PURPORTED TRANSFEREE.

                                    B-T2M4-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-4

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $2,021,000.00

CUSIP No.:                                  05951K BL 6

ISIN No.:                                   US05951KBL61

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2M4-3

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2M4-4

<PAGE>

                                 EXHIBIT B-T2M5

                   [FORM OF FACE OF CLASS T2-M-5 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-5

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS   CERTIFICATE   IS   SUBORDINATED   IN  RIGHT  OF  PAYMENT  TO  THE  SENIOR
OVERCOLLATERALIZED CERTIFICATES, THE CLASS T2-M-1 CERTIFICATES, THE CLASS T2-M-2
CERTIFICATES, THE CLASS T2-M-3 CERTIFICATES AND THE CLASS T2-M-4 CERTIFICATES AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

IN THE EVENT  THAT THIS  CERTIFICATE  IS NO  LONGER  RATED AT LEAST  BBB- OR ITS
EQUIVALENT,  THE PURCHASE AND HOLDING OF THIS CERTIFICATE BY OR ON BEHALF OF ANY
EMPLOYEE  BENEFIT  PLAN  OR  ARRANGEMENT,  INCLUDING  AN  INDIVIDUAL  RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO ERISA OR THE CODE  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS" WITHIN THE MEANING OF ERISA, THE CODE OR SIMILAR LAW.
IF THE RATING OF THIS CERTIFICATE  FALLS BELOW BBB- OR ITS EQUIVALENT,  TRANSFER

                                    B-T2M5-1

<PAGE>

OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS THE  TRANSFEREE  DELIVERS  TO THE
SECURITIES  ADMINISTRATOR  EITHER  (I) A  REPRESENTATION  LETTER,  IN  FORM  AND
SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  STATING THAT (A) IT IS
NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR USING THE ASSETS OF ANY
SUCH PLAN TO EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE
SOURCE OF FUNDS USED TO  PURCHASE  THIS  CERTIFICATE  IS AN  "INSURANCE  COMPANY
GENERAL  ACCOUNT"  (AS  SUCH  TERM IS  DEFINED  IN  SECTION  V(E) OF  PROHIBITED
TRANSACTION  CLASS EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG. 35925 (JULY 12,
1995)),  THERE IS NO PLAN  WITH  RESPECT  TO WHICH THE  AMOUNT  OF SUCH  GENERAL
ACCOUNT'S  RESERVES AND LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF
SUCH PLAN AND ALL OTHER PLANS  MAINTAINED  BY THE SAME  EMPLOYER  (OR  AFFILIATE
THEREOF  AS DEFINED  IN  SECTION  V(A)(1) OF PTE 95-60) OR BY THE SAME  EMPLOYEE
ORGANIZATION  EXCEEDS 10% OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH
GENERAL ACCOUNT (AS SUCH AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTE 95-60)
AT THE DATE OF  ACQUISITION  AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL
ACCOUNT ARE PLANS TO WHICH PTE 95-60 APPLIES,  OR (II) AN OPINION OF COUNSEL, IN
FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT
THAT THE  PURCHASE OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED  TRANSACTION WITHIN THE
MEANING OF ERISA,  SECTION  4975 OF THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT
THE DEPOSITOR,  THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE
TO ANY  OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN IN THE POOLING AND SERVICING
AGREEMENT.  EACH PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN AT
ANY TIME THAT THIS  CERTIFICATE  HAS A RATING LOWER THAN BBB- OR ITS  EQUIVALENT
SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS  REQUIRED BY THE REPRESENTATION
LETTER  REFERRED TO IN THE  PRECEDING  SENTENCE,  UNLESS SUCH PERSON  SHALL HAVE
PROVIDED SUCH REPRESENTATION LETTER OR THE OPINION OF COUNSEL REFERRED TO IN THE
PRECEDING  SENTENCE TO THE SECURITIES  ADMINISTRATOR.  THE POOLING AND SERVICING
AGREEMENT  PROVIDES  THAT ANY  ATTEMPTED OR  PURPORTED  TRANSFER IN VIOLATION OF
THESE TRANSFER RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY
PURPORTED TRANSFEREE.

                                    B-T2M5-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-5

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $2,021,000.00

CUSIP No.:                                  05951K BM 4

ISIN No.:                                   US05951KBM45

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2M5-3

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2M5-4

<PAGE>

                                 EXHIBIT B-T2M6

                   [FORM OF FACE OF CLASS T2-M-6 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-6

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS   CERTIFICATE   IS   SUBORDINATED   IN  RIGHT  OF  PAYMENT  TO  THE  SENIOR
OVERCOLLATERALIZED CERTIFICATES, THE CLASS T2-M-1 CERTIFICATES, THE CLASS T2-M-2
CERTIFICATES,  THE CLASS T2-M-3 CERTIFICATES,  THE CLASS T2-M-4 CERTIFICATES AND
THE  CLASS  T2-M-5  CERTIFICATES  AS  DESCRIBED  IN THE  POOLING  AND  SERVICING
AGREEMENT REFERRED TO HEREIN.

IN THE EVENT  THAT THIS  CERTIFICATE  IS NO  LONGER  RATED AT LEAST  BBB- OR ITS
EQUIVALENT,  THE PURCHASE AND HOLDING OF THIS CERTIFICATE BY OR ON BEHALF OF ANY
EMPLOYEE  BENEFIT  PLAN  OR  ARRANGEMENT,  INCLUDING  AN  INDIVIDUAL  RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO ERISA OR THE CODE  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS" WITHIN THE MEANING OF ERISA, THE CODE OR SIMILAR LAW.
IF THE RATING OF THIS CERTIFICATE  FALLS BELOW BBB- OR ITS EQUIVALENT,  TRANSFER

                                    B-T2M6-1

<PAGE>

OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS THE  TRANSFEREE  DELIVERS  TO THE
SECURITIES  ADMINISTRATOR  EITHER  (I) A  REPRESENTATION  LETTER,  IN  FORM  AND
SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  STATING THAT (A) IT IS
NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR USING THE ASSETS OF ANY
SUCH PLAN TO EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE
SOURCE OF FUNDS USED TO  PURCHASE  THIS  CERTIFICATE  IS AN  "INSURANCE  COMPANY
GENERAL  ACCOUNT"  (AS  SUCH  TERM IS  DEFINED  IN  SECTION  V(E) OF  PROHIBITED
TRANSACTION  CLASS EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG. 35925 (JULY 12,
1995)),  THERE IS NO PLAN  WITH  RESPECT  TO WHICH THE  AMOUNT  OF SUCH  GENERAL
ACCOUNT'S  RESERVES AND LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF
SUCH PLAN AND ALL OTHER PLANS  MAINTAINED  BY THE SAME  EMPLOYER  (OR  AFFILIATE
THEREOF  AS DEFINED  IN  SECTION  V(A)(1) OF PTE 95-60) OR BY THE SAME  EMPLOYEE
ORGANIZATION  EXCEEDS 10% OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH
GENERAL ACCOUNT (AS SUCH AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTE 95-60)
AT THE DATE OF  ACQUISITION  AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL
ACCOUNT ARE PLANS TO WHICH PTE 95-60 APPLIES,  OR (II) AN OPINION OF COUNSEL, IN
FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT
THAT THE  PURCHASE OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED  TRANSACTION WITHIN THE
MEANING OF ERISA,  SECTION  4975 OF THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT
THE DEPOSITOR,  THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE
TO ANY  OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN IN THE POOLING AND SERVICING
AGREEMENT.  EACH PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN AT
ANY TIME THAT THIS  CERTIFICATE  HAS A RATING LOWER THAN BBB- OR ITS  EQUIVALENT
SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS  REQUIRED BY THE REPRESENTATION
LETTER  REFERRED TO IN THE  PRECEDING  SENTENCE,  UNLESS SUCH PERSON  SHALL HAVE
PROVIDED SUCH REPRESENTATION LETTER OR THE OPINION OF COUNSEL REFERRED TO IN THE
PRECEDING  SENTENCE TO THE SECURITIES  ADMINISTRATOR.  THE POOLING AND SERVICING
AGREEMENT  PROVIDES  THAT ANY  ATTEMPTED OR  PURPORTED  TRANSFER IN VIOLATION OF
THESE TRANSFER RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY
PURPORTED TRANSFEREE.

                                    B-T2M6-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-6

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $2,021,000.00

CUSIP No.:                                  05951K BN 2

ISIN No.:                                   US05951KBN28

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2M6-3

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2M6-4

<PAGE>

                                 EXHIBIT B-T2M7

                   [FORM OF FACE OF CLASS T2-M-7 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-7

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS   CERTIFICATE   IS   SUBORDINATED   IN  RIGHT  OF  PAYMENT  TO  THE  SENIOR
OVERCOLLATERALIZED CERTIFICATES, THE CLASS T2-M-1 CERTIFICATES, THE CLASS T2-M-2
CERTIFICATES,  THE CLASS T2-M-3 CERTIFICATES, THE CLASS T2-M-4 CERTIFICATES, THE
CLASS T2-M-5  CERTIFICATES AND THE CLASS T2-M-6 CERTIFICATES AS DESCRIBED IN THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

IN THE EVENT  THAT THIS  CERTIFICATE  IS NO  LONGER  RATED AT LEAST  BBB- OR ITS
EQUIVALENT,  THE PURCHASE AND HOLDING OF THIS CERTIFICATE BY OR ON BEHALF OF ANY
EMPLOYEE  BENEFIT  PLAN  OR  ARRANGEMENT,  INCLUDING  AN  INDIVIDUAL  RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO ERISA OR THE CODE  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS" WITHIN THE MEANING OF ERISA, THE CODE OR SIMILAR LAW.

                                    B-T2M7-1

<PAGE>

IF THE RATING OF THIS CERTIFICATE  FALLS BELOW BBB- OR ITS EQUIVALENT,  TRANSFER
OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS THE  TRANSFEREE  DELIVERS  TO THE
SECURITIES  ADMINISTRATOR  EITHER  (I) A  REPRESENTATION  LETTER,  IN  FORM  AND
SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  STATING THAT (A) IT IS
NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR USING THE ASSETS OF ANY
SUCH PLAN TO EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE
SOURCE OF FUNDS USED TO  PURCHASE  THIS  CERTIFICATE  IS AN  "INSURANCE  COMPANY
GENERAL  ACCOUNT"  (AS  SUCH  TERM IS  DEFINED  IN  SECTION  V(E) OF  PROHIBITED
TRANSACTION  CLASS EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG. 35925 (JULY 12,
1995)),  THERE IS NO PLAN  WITH  RESPECT  TO WHICH THE  AMOUNT  OF SUCH  GENERAL
ACCOUNT'S  RESERVES AND LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF
SUCH PLAN AND ALL OTHER PLANS  MAINTAINED  BY THE SAME  EMPLOYER  (OR  AFFILIATE
THEREOF  AS DEFINED  IN  SECTION  V(A)(1) OF PTE 95-60) OR BY THE SAME  EMPLOYEE
ORGANIZATION  EXCEEDS 10% OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH
GENERAL ACCOUNT (AS SUCH AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTE 95-60)
AT THE DATE OF  ACQUISITION  AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL
ACCOUNT ARE PLANS TO WHICH PTE 95-60 APPLIES,  OR (II) AN OPINION OF COUNSEL, IN
FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT
THAT THE  PURCHASE OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED  TRANSACTION WITHIN THE
MEANING OF ERISA,  SECTION  4975 OF THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT
THE DEPOSITOR,  THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE
TO ANY  OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN IN THE POOLING AND SERVICING
AGREEMENT.  EACH PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN AT
ANY TIME THAT THIS  CERTIFICATE  HAS A RATING LOWER THAN BBB- OR ITS  EQUIVALENT
SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS  REQUIRED BY THE REPRESENTATION
LETTER  REFERRED TO IN THE  PRECEDING  SENTENCE,  UNLESS SUCH PERSON  SHALL HAVE
PROVIDED SUCH REPRESENTATION LETTER OR THE OPINION OF COUNSEL REFERRED TO IN THE
PRECEDING  SENTENCE TO THE SECURITIES  ADMINISTRATOR.  THE POOLING AND SERVICING
AGREEMENT  PROVIDES  THAT ANY  ATTEMPTED OR  PURPORTED  TRANSFER IN VIOLATION OF
THESE TRANSFER RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY
PURPORTED TRANSFEREE.

                                    B-T2M7-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-7

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $2,021,000.00

CUSIP No.:                                  05951K BP 7

ISIN No.:                                   US05951KBP75

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2M7-3

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2M7-4

<PAGE>

                                 EXHIBIT B-T2M8

                   [FORM OF FACE OF CLASS T2-M-8 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-8

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS   CERTIFICATE   IS   SUBORDINATED   IN  RIGHT  OF  PAYMENT  TO  THE  SENIOR
OVERCOLLATERALIZED CERTIFICATES, THE CLASS T2-M-1 CERTIFICATES, THE CLASS T2-M-2
CERTIFICATES,  THE CLASS T2-M-3 CERTIFICATES, THE CLASS T2-M-4 CERTIFICATES, THE
CLASS T2-M-5  CERTIFICATES,  THE CLASS T2-M-6  CERTIFICATES AND THE CLASS T2-M-7
CERTIFICATES  AS DESCRIBED IN THE POOLING AND  SERVICING  AGREEMENT  REFERRED TO
HEREIN.

IN THE EVENT  THAT THIS  CERTIFICATE  IS NO  LONGER  RATED AT LEAST  BBB- OR ITS
EQUIVALENT,  THE PURCHASE AND HOLDING OF THIS CERTIFICATE BY OR ON BEHALF OF ANY
EMPLOYEE  BENEFIT  PLAN  OR  ARRANGEMENT,  INCLUDING  AN  INDIVIDUAL  RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO ERISA OR THE CODE  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS" WITHIN THE MEANING OF ERISA, THE CODE OR SIMILAR LAW.

                                    B-T2M8-1

<PAGE>

IF THE RATING OF THIS CERTIFICATE  FALLS BELOW BBB- OR ITS EQUIVALENT,  TRANSFER
OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS THE  TRANSFEREE  DELIVERS  TO THE
SECURITIES  ADMINISTRATOR  EITHER  (I) A  REPRESENTATION  LETTER,  IN  FORM  AND
SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  STATING THAT (A) IT IS
NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR USING THE ASSETS OF ANY
SUCH PLAN TO EFFECT SUCH PURCHASE OR (B) IF IT IS AN INSURANCE COMPANY, THAT THE
SOURCE OF FUNDS USED TO  PURCHASE  THIS  CERTIFICATE  IS AN  "INSURANCE  COMPANY
GENERAL  ACCOUNT"  (AS  SUCH  TERM IS  DEFINED  IN  SECTION  V(E) OF  PROHIBITED
TRANSACTION  CLASS EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG. 35925 (JULY 12,
1995)),  THERE IS NO PLAN  WITH  RESPECT  TO WHICH THE  AMOUNT  OF SUCH  GENERAL
ACCOUNT'S  RESERVES AND LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF
SUCH PLAN AND ALL OTHER PLANS  MAINTAINED  BY THE SAME  EMPLOYER  (OR  AFFILIATE
THEREOF  AS DEFINED  IN  SECTION  V(A)(1) OF PTE 95-60) OR BY THE SAME  EMPLOYEE
ORGANIZATION  EXCEEDS 10% OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH
GENERAL ACCOUNT (AS SUCH AMOUNTS ARE DETERMINED UNDER SECTION I(A) OF PTE 95-60)
AT THE DATE OF  ACQUISITION  AND ALL PLANS THAT HAVE AN INTEREST IN SUCH GENERAL
ACCOUNT ARE PLANS TO WHICH PTE 95-60 APPLIES,  OR (II) AN OPINION OF COUNSEL, IN
FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT
THAT THE  PURCHASE OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED  TRANSACTION WITHIN THE
MEANING OF ERISA,  SECTION  4975 OF THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT
THE DEPOSITOR,  THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE
TO ANY  OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN IN THE POOLING AND SERVICING
AGREEMENT.  EACH PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN AT
ANY TIME THAT THIS  CERTIFICATE  HAS A RATING LOWER THAN BBB- OR ITS  EQUIVALENT
SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS  REQUIRED BY THE REPRESENTATION
LETTER  REFERRED TO IN THE  PRECEDING  SENTENCE,  UNLESS SUCH PERSON  SHALL HAVE
PROVIDED SUCH REPRESENTATION LETTER OR THE OPINION OF COUNSEL REFERRED TO IN THE
PRECEDING  SENTENCE TO THE SECURITIES  ADMINISTRATOR.  THE POOLING AND SERVICING
AGREEMENT  PROVIDES  THAT ANY  ATTEMPTED OR  PURPORTED  TRANSFER IN VIOLATION OF
THESE TRANSFER RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY
PURPORTED TRANSFEREE.

                                    B-T2M8-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-M-8

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $2,021,000.00

CUSIP No.:                                  05951K BQ 5

ISIN No.:                                   US05951KBQ58

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2M8-3

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2M8-4

<PAGE>

                                 EXHIBIT B-T2B1

                   [FORM OF FACE OF CLASS T2-B-1 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-B-1

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS   CERTIFICATE   IS   SUBORDINATED   IN  RIGHT  OF  PAYMENT  TO  THE  SENIOR
OVERCOLLATERALIZED  CERTIFICATES AND THE MEZZANINE  CERTIFICATES AS DESCRIBED IN
THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

THIS  CERTIFICATE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "1933  ACT").  ANY RESALE OR TRANSFER OF THIS  CERTIFICATE  WITHOUT
REGISTRATION  THEREOF  UNDER  THE  1933  ACT MAY  ONLY BE MADE IN A  TRANSACTION
EXEMPTED FROM THE  REGISTRATION  REQUIREMENTS  OF THE 1933 ACT AND IN ACCORDANCE
WITH THE PROVISIONS OF THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN.

UNDER CURRENT LAW THE PURCHASE AND HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF
OF ANY EMPLOYEE BENEFIT PLAN OR ARRANGEMENT,  INCLUDING AN INDIVIDUAL RETIREMENT

                                    B-T2B1-1

<PAGE>

ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO THE PROHIBITED  TRANSACTION  PROVISIONS OF ERISA OR THE CODE
OR THE FIDUCIARY  PROVISIONS OF ERISA  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS"  WITHIN THE MEANING OF ERISA, THE CODE OR A VIOLATION
OF  SIMILAR  LAW.  TRANSFER  OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS  THE
TRANSFEREE DELIVERS TO THE SECURITIES  ADMINISTRATOR EITHER (I) A REPRESENTATION
LETTER,  IN FORM AND SUBSTANCE  SATISFACTORY  TO THE  SECURITIES  ADMINISTRATOR,
STATING  THAT (A) IT IS NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR
USING THE  ASSETS OF ANY SUCH PLAN TO EFFECT  SUCH  PURCHASE  OR (B) IF IT IS AN
INSURANCE COMPANY, THAT THE SOURCE OF FUNDS USED TO PURCHASE THIS CERTIFICATE IS
AN "INSURANCE  COMPANY GENERAL ACCOUNT" (AS SUCH TERM IS DEFINED IN SECTION V(E)
OF PROHIBITED  TRANSACTION  CLASS  EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG.
35925 (JULY 12, 1995)), THERE IS NO PLAN SUBJECT TO ERISA OR SECTION 4975 OF THE
CODE WITH  RESPECT TO WHICH THE AMOUNT OF SUCH  GENERAL  ACCOUNT'S  RESERVES AND
LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF SUCH PLAN AND ALL OTHER
SUCH PLANS  MAINTAINED BY THE SAME EMPLOYER (OR AFFILIATE  THEREOF AS DEFINED IN
SECTION V(A)(1) OF PTE 95-60) OR BY THE SAME EMPLOYEE  ORGANIZATION  EXCEEDS 10%
OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH GENERAL  ACCOUNT (AS SUCH
AMOUNTS  ARE  DETERMINED  UNDER  SECTION  I(A)  OF PTE  95-60)  AT THE  DATE  OF
ACQUISITION AND ALL SUCH PLANS THAT HAVE AN INTEREST IN SUCH GENERAL ACCOUNT ARE
PLANS TO WHICH PTE 95-60  APPLIES,  OR (II) AN OPINION OF  COUNSEL,  IN FORM AND
SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT THAT THE
PURCHASE  OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT  PROHIBITED  TRANSACTION WITHIN THE MEANING
OF SECTION 406 OF ERISA,  SECTION 4975 OF THE CODE OR A VIOLATION OF SIMILAR LAW
AND  WILL NOT  SUBJECT  THE  DEPOSITOR,  THE  MASTER  SERVICER,  THE  SECURITIES
ADMINISTRATOR  OR THE TRUSTEE TO ANY OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN
IN  THE  POOLING  AND  SERVICING  AGREEMENT.   EACH  PERSON  WHO  ACQUIRES  THIS
CERTIFICATE  OR  ANY  INTEREST   THEREIN  SHALL  BE  DEEMED  TO  HAVE  MADE  THE
REPRESENTATIONS  REQUIRED  BY  THE  REPRESENTATION  LETTER  REFERRED  TO IN  THE
PRECEDING  SENTENCE,  UNLESS SUCH PERSON SHALL HAVE PROVIDED SUCH REPRESENTATION
LETTER OR THE OPINION OF COUNSEL  REFERRED TO IN THE  PRECEDING  SENTENCE TO THE
SECURITIES ADMINISTRATOR.  THE POOLING AND SERVICING AGREEMENT PROVIDES THAT ANY
ATTEMPTED OR PURPORTED TRANSFER IN VIOLATION OF THESE TRANSFER RESTRICTIONS WILL
BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY PURPORTED TRANSFEREE.

                                    B-T2B1-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-B-1

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $2,021,000.00

CUSIP No.:                                  05951K BR 3

ISIN No.:                                   US05951KBR32

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2B1-3

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2B1-4

<PAGE>

                                 EXHIBIT B-T2B2

                   [FORM OF FACE OF CLASS T2-B-2 CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-B-2

[UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY,  A NEW YORK CORPORATION  ("DTC"),  TO THE DEPOSITOR OR
ITS  AGENT  FOR  REGISTRATION  OF  TRANSFER,   EXCHANGE,  OR  PAYMENT,  AND  ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  REPRESENTS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER PROPERTY.

REDUCTIONS OF THE CERTIFICATE BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN. ACCORDINGLY,
THE  OUTSTANDING  CERTIFICATE  BALANCE OF THIS  CERTIFICATE MAY BE LESS THAN THE
AMOUNT SET FORTH BELOW.

THIS   CERTIFICATE   IS   SUBORDINATED   IN  RIGHT  OF  PAYMENT  TO  THE  SENIOR
OVERCOLLATERALIZED CERTIFICATES, THE MEZZANINE CERTIFICATES AND THE CLASS T2-B-1
CERTIFICATES  AS DESCRIBED IN THE POOLING AND  SERVICING  AGREEMENT  REFERRED TO
HEREIN.

THIS  CERTIFICATE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "1933  ACT").  ANY RESALE OR TRANSFER OF THIS  CERTIFICATE  WITHOUT
REGISTRATION  THEREOF  UNDER  THE  1933  ACT MAY  ONLY BE MADE IN A  TRANSACTION
EXEMPTED FROM THE  REGISTRATION  REQUIREMENTS  OF THE 1933 ACT AND IN ACCORDANCE
WITH THE PROVISIONS OF THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN.

UNDER CURRENT LAW THE PURCHASE AND HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF
OF ANY EMPLOYEE BENEFIT PLAN OR ARRANGEMENT,  INCLUDING AN INDIVIDUAL RETIREMENT

                                    B-T2B2-1

<PAGE>

ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO THE PROHIBITED  TRANSACTION  PROVISIONS OF ERISA OR THE CODE
OR THE FIDUCIARY  PROVISIONS OF ERISA  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS"  WITHIN THE MEANING OF ERISA, THE CODE OR A VIOLATION
OF  SIMILAR  LAW.  TRANSFER  OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS  THE
TRANSFEREE DELIVERS TO THE SECURITIES  ADMINISTRATOR EITHER (I) A REPRESENTATION
LETTER,  IN FORM AND SUBSTANCE  SATISFACTORY  TO THE  SECURITIES  ADMINISTRATOR,
STATING  THAT (A) IT IS NOT,  AND IS NOT  ACTING ON BEHALF  OF, ANY SUCH PLAN OR
USING THE  ASSETS OF ANY SUCH PLAN TO EFFECT  SUCH  PURCHASE  OR (B) IF IT IS AN
INSURANCE COMPANY, THAT THE SOURCE OF FUNDS USED TO PURCHASE THIS CERTIFICATE IS
AN "INSURANCE  COMPANY GENERAL ACCOUNT" (AS SUCH TERM IS DEFINED IN SECTION V(E)
OF PROHIBITED  TRANSACTION  CLASS  EXEMPTION  95-60 ("PTE 95-60"),  60 FED. REG.
35925 (JULY 12, 1995)), THERE IS NO PLAN SUBJECT TO ERISA OR SECTION 4975 OF THE
CODE WITH  RESPECT TO WHICH THE AMOUNT OF SUCH  GENERAL  ACCOUNT'S  RESERVES AND
LIABILITIES FOR THE CONTRACT(S)  HELD BY OR ON BEHALF OF SUCH PLAN AND ALL OTHER
SUCH PLANS  MAINTAINED BY THE SAME EMPLOYER (OR AFFILIATE  THEREOF AS DEFINED IN
SECTION V(A)(1) OF PTE 95-60) OR BY THE SAME EMPLOYEE  ORGANIZATION  EXCEEDS 10%
OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF SUCH GENERAL  ACCOUNT (AS SUCH
AMOUNTS  ARE  DETERMINED  UNDER  SECTION  I(A)  OF PTE  95-60)  AT THE  DATE  OF
ACQUISITION AND ALL SUCH PLANS THAT HAVE AN INTEREST IN SUCH GENERAL ACCOUNT ARE
PLANS TO WHICH PTE 95-60  APPLIES,  OR (II) AN OPINION OF  COUNSEL,  IN FORM AND
SUBSTANCE SATISFACTORY TO THE SECURITIES  ADMINISTRATOR,  TO THE EFFECT THAT THE
PURCHASE  OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF SUCH PLAN WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT  PROHIBITED  TRANSACTION WITHIN THE MEANING
OF SECTION 406 OF ERISA,  SECTION 4975 OF THE CODE OR A VIOLATION OF SIMILAR LAW
AND  WILL NOT  SUBJECT  THE  DEPOSITOR,  THE  MASTER  SERVICER,  THE  SECURITIES
ADMINISTRATOR  OR THE TRUSTEE TO ANY OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN
IN  THE  POOLING  AND  SERVICING  AGREEMENT.   EACH  PERSON  WHO  ACQUIRES  THIS
CERTIFICATE  OR  ANY  INTEREST   THEREIN  SHALL  BE  DEEMED  TO  HAVE  MADE  THE
REPRESENTATIONS  REQUIRED  BY  THE  REPRESENTATION  LETTER  REFERRED  TO IN  THE
PRECEDING  SENTENCE,  UNLESS SUCH PERSON SHALL HAVE PROVIDED SUCH REPRESENTATION
LETTER OR THE OPINION OF COUNSEL  REFERRED TO IN THE  PRECEDING  SENTENCE TO THE
SECURITIES ADMINISTRATOR.  THE POOLING AND SERVICING AGREEMENT PROVIDES THAT ANY
ATTEMPTED OR PURPORTED TRANSFER IN VIOLATION OF THESE TRANSFER RESTRICTIONS WILL
BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY PURPORTED TRANSFEREE.

                                    B-T2B2-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                  Class T2-B-2

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                               October 1, 2006

First Distribution Date:                    November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                           $

Initial Class Certificate
Balance of this Class:                      $2,021,000.00

CUSIP No.:                                  05951K BS 1

ISIN No.:                                   US05951KBS15

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     Principal in respect of this  Certificate is  distributable  monthly as set
forth in the Pooling  and  Servicing  Agreement.  Accordingly,  the  Certificate
Balance of this Certificate at any time may be less than the Certificate Balance
as set forth herein.  This Certificate does not evidence an obligation of, or an

                                    B-T2B2-3

<PAGE>

interest in, and is not guaranteed by the Depositor,  the Master  Servicer,  the
Securities  Administrator or the Trustee or any of their respective  affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

     Interest will accrue on this Certificate at a per annum rate as provided in
the Pooling and Servicing Agreement.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                    B-T2B2-4

<PAGE>

                                  EXHIBIT B-CE

                     [FORM OF FACE OF CLASS CE CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                    Class CE

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THE CLASS CE  CERTIFICATE  WILL NOT BE ENTITLED  TO PAYMENTS  UNTIL SUCH TIME AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

THIS   CERTIFICATE   IS   SUBORDINATED   IN  RIGHT  OF  PAYMENT  TO  THE  SENIOR
OVERCOLLATERALIZED  CERTIFICATES,  THE MEZZANINE CERTIFICATES AND THE CLASS T2-B
CERTIFICATES  AS DESCRIBED IN THE POOLING AND  SERVICING  AGREEMENT  REFERRED TO
HEREIN.

THIS  CERTIFICATE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "1933  ACT").  ANY RESALE OR TRANSFER OF THIS  CERTIFICATE  WITHOUT
REGISTRATION  THEREOF  UNDER  THE  1933  ACT MAY  ONLY BE MADE IN A  TRANSACTION
EXEMPTED FROM THE  REGISTRATION  REQUIREMENTS  OF THE 1933 ACT AND IN ACCORDANCE
WITH THE PROVISIONS OF THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN.

UNDER CURRENT LAW THE PURCHASE AND HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF
OF ANY EMPLOYEE BENEFIT PLAN OR ARRANGEMENT,  INCLUDING AN INDIVIDUAL RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO THE PROHIBITED  TRANSACTION  PROVISIONS OF ERISA OR THE CODE
OR THE FIDUCIARY  PROVISIONS OF ERISA  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS"  WITHIN THE MEANING OF ERISA, THE CODE OR A VIOLATION
OF  SIMILAR  LAW.  TRANSFER  OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS  THE
TRANSFEREE DELIVERS TO THE SECURITIES  ADMINISTRATOR EITHER (I) A REPRESENTATION
LETTER,  IN FORM AND SUBSTANCE  SATISFACTORY  TO THE  SECURITIES  ADMINISTRATOR,
STATING  THAT IT IS NOT,  AND IS NOT ACTING ON BEHALF OF, ANY SUCH PLAN OR USING
THE  ASSETS OF ANY SUCH PLAN TO  EFFECT  SUCH  PURCHASE  OR (II) AN  OPINION  OF
COUNSEL, IN FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES ADMINISTRATOR,  TO
THE EFFECT THAT THE PURCHASE OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF
SUCH PLAN WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT  PROHIBITED  TRANSACTION
WITHIN  THE  MEANING  OF  SECTION  406 OF ERISA,  SECTION  4975 OF THE CODE OR A
VIOLATION  OF  SIMILAR  LAW AND WILL  NOT  SUBJECT  THE  DEPOSITOR,  THE  MASTER
SERVICER,  THE  SECURITIES  ADMINISTRATOR  OR THE TRUSTEE TO ANY  OBLIGATION  IN

                                     B-CE-1

<PAGE>

ADDITION TO THOSE UNDERTAKEN IN THE POOLING AND SERVICING AGREEMENT. THE POOLING
AND SERVICING  AGREEMENT  PROVIDES  THAT ANY ATTEMPTED OR PURPORTED  TRANSFER IN
VIOLATION OF THESE TRANSFER  RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO
RIGHTS IN ANY PURPORTED TRANSFEREE.

                                     B-CE-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                    Class CE

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:                    1

Cut-off Date:                       October 1, 2006

First Distribution Date:            November 27, 2006

Percentage Interest:                100%

CUSIP No.:                          05951K BT 9

ISIN No.:                           US05951KBT97

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest  evidenced by this  Certificate in certain monthly  distributions  with
respect to a Trust consisting  primarily of the Mortgage Loans deposited by Banc
of America Funding Corporation (the "Depositor"). The Trust was created pursuant
to a Pooling and Servicing  Agreement,  dated October 30, 2006 (the "Pooling and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     The Class CE  Certificates  are  limited  in right of  payment  to  certain
collections and recoveries  respecting the Group T2 Mortgage Loans,  all as more
specifically set forth herein and in the Pooling and Servicing Agreement.

     Further, no transfer of a Class CE Certificate shall be made to a Plan or a
person  acting on behalf of or using the asset of a Plan,  except as provided in
the Pooling and Servicing Agreement.

     This Certificate does not evidence an obligation of, or an interest in, and
is  not  guaranteed  by the  Depositor,  the  Master  Servicer,  the  Securities
Administrator or the Trustee or any of their respective affiliates. Neither this
Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
agency or instrumentality.

                                     B-CE-3

<PAGE>

     No  transfer  of a  Certificate  of this Class  shall be made  unless  such
transfer is exempt from the  registration  requirements of the Securities Act of
1933, as amended (the "1933 Act"),  and any applicable  state securities laws or
is made in accordance  with the 1933 Act and such laws. In the event of any such
transfer,  (i) unless the  transfer  is made in  reliance on Rule 144A under the
1933 Act, the  Securities  Administrator  or the Depositor may require a written
Opinion of Counsel (which may be in-house counsel) acceptable to and in form and
substance  reasonably  satisfactory  to the  Securities  Administrator  and  the
Depositor  that such transfer may be made  pursuant to an exemption,  describing
the applicable exemption and the basis therefor, from the 1933 Act and such laws
or is being  made  pursuant  to the 1933 Act and such  laws,  which  Opinion  of
Counsel shall not be an expense of the Securities Administrator or the Depositor
and (ii) the  Securities  Administrator  shall  require a  certificate  from the
Certificateholder  desiring to effect such  transfer  substantially  in the form
attached to the Pooling and Servicing Agreement as Exhibit G-1 and a certificate
from such  Certificateholder's  prospective transferee substantially in the form
attached to the Pooling and  Servicing  Agreement  either as Exhibit  G-2A or as
Exhibit  G-2B,  which  certificates  shall not be an expense  of the  Securities
Administrator or the Depositor;  provided that the foregoing  requirements under
clauses  (i) and (ii)  shall not apply to a  transfer  of a Private  Certificate
between or among the  Depositor,  the Sponsor,  their  affiliates  or both.  The
Holder of a Private Certificate desiring to effect such transfer shall, and does
hereby  agree to,  indemnify  the  Securities  Administrator  and the  Depositor
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such federal and state laws.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                     B-CE-4

<PAGE>

                                   EXHIBIT B-P

                      [FORM OF FACE OF CLASS P CERTIFICATE]

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                     Class P

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS  CERTIFICATE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "1933  ACT").  ANY RESALE OR TRANSFER OF THIS  CERTIFICATE  WITHOUT
REGISTRATION  THEREOF  UNDER  THE  1933  ACT MAY  ONLY BE MADE IN A  TRANSACTION
EXEMPTED FROM THE  REGISTRATION  REQUIREMENTS  OF THE 1933 ACT AND IN ACCORDANCE
WITH THE PROVISIONS OF THE POOLING AND SERVICING AGREEMENT REFERENCED HEREIN.

UNDER CURRENT LAW THE PURCHASE AND HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF
OF ANY EMPLOYEE BENEFIT PLAN OR ARRANGEMENT,  INCLUDING AN INDIVIDUAL RETIREMENT
ACCOUNT,  SUBJECT TO THE EMPLOYEE  RETIREMENT  INCOME  SECURITY ACT OF 1974,  AS
AMENDED ("ERISA"),  THE CODE OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR LAW")
WHICH IS SIMILAR TO THE PROHIBITED  TRANSACTION  PROVISIONS OF ERISA OR THE CODE
OR THE FIDUCIARY  PROVISIONS OF ERISA  (COLLECTIVELY,  A "PLAN"),  MAY RESULT IN
"PROHIBITED  TRANSACTIONS"  WITHIN THE MEANING OF ERISA, THE CODE OR A VIOLATION
OF  SIMILAR  LAW.  TRANSFER  OF THIS  CERTIFICATE  WILL NOT BE MADE  UNLESS  THE
TRANSFEREE DELIVERS TO THE SECURITIES  ADMINISTRATOR EITHER (I) A REPRESENTATION
LETTER,  IN FORM AND SUBSTANCE  SATISFACTORY  TO THE  SECURITIES  ADMINISTRATOR,
STATING  THAT IT IS NOT,  AND IS NOT ACTING ON BEHALF OF, ANY SUCH PLAN OR USING
THE  ASSETS OF ANY SUCH PLAN TO  EFFECT  SUCH  PURCHASE  OR (II) AN  OPINION  OF
COUNSEL, IN FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES ADMINISTRATOR,  TO
THE EFFECT THAT THE PURCHASE OR HOLDING OF THIS  CERTIFICATE  BY OR ON BEHALF OF
SUCH PLAN WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT  PROHIBITED  TRANSACTION
WITHIN  THE  MEANING  OF  SECTION  406 OF ERISA,  SECTION  4975 OF THE CODE OR A
VIOLATION  OF  SIMILAR  LAW AND WILL  NOT  SUBJECT  THE  DEPOSITOR,  THE  MASTER
SERVICER,  THE  SECURITIES  ADMINISTRATOR  OR THE TRUSTEE TO ANY  OBLIGATION  IN
ADDITION TO THOSE UNDERTAKEN IN THE POOLING AND SERVICING AGREEMENT. THE POOLING
AND SERVICING  AGREEMENT  PROVIDES  THAT ANY ATTEMPTED OR PURPORTED  TRANSFER IN

                                     B-P-1

<PAGE>

VIOLATION OF THESE TRANSFER  RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO
RIGHTS IN ANY PURPORTED TRANSFEREE..

                                     B-P-2

<PAGE>

                       BANC OF AMERICA FUNDING CORPORATION
                Mortgage Pass-Through Certificates, Series 2006-7
                                     Class P

evidencing  an interest in a Trust  consisting  primarily  of two loan groups of
fixed interest rate mortgage loans (the "Mortgage Loans") secured by first liens
on one- to four-family residential properties deposited by

                Banc of America Funding Corporation, as Depositor

Certificate No.:

Cut-off Date:                       October 1, 2006

First Distribution Date:            November 27, 2006

Initial Certificate
Balance of this
Certificate
("Denomination"):                   $

Initial Class Certificate
Balance of this Class:              $100.00

CUSIP No.:                          05951K BU 6

ISIN No.:                           US05951KBU60

     THIS  CERTIFIES THAT  __________ is the registered  owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the Initial Class Certificate  Balance of the Class to which
this  Certificate  belongs) in certain monthly  distributions  with respect to a
Trust  consisting  primarily of the Mortgage Loans  deposited by Banc of America
Funding  Corporation  (the  "Depositor").  The Trust was  created  pursuant to a
Pooling and  Servicing  Agreement,  dated  October 30,  2006 (the  "Pooling  and
Servicing  Agreement"),  among the Depositor,  Wells Fargo Bank, N.A., as master
servicer (the "Master  Servicer") and securities  administrator (the "Securities
Administrator"), and U.S. Bank National Association, as trustee (the "Trustee").
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the Pooling and Servicing  Agreement.  This Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Pooling and Servicing  Agreement,  to which Pooling and Servicing  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

     The Class P  Certificates  are  limited in right of  payment to  Prepayment
Charges  received on the Mortgage  Loans serviced by Wells Fargo and their Class
Certificate Balance, as more specifically set forth in the Pooling and Servicing
Agreement.

                                     B-P-3

<PAGE>

     Further,  no transfer of a Class P Certificate shall be made to a Plan or a
person  acting on behalf of or using the asset of a Plan,  except as provided in
the Pooling and Servicing Agreement.

     This Certificate does not evidence an obligation of, or an interest in, and
is  not  guaranteed  by the  Depositor,  the  Master  Servicer,  the  Securities
Administrator or the Trustee or any of their respective affiliates. Neither this
Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
agency or instrumentality.

     No  transfer  of a  Certificate  of this Class  shall be made  unless  such
transfer is exempt from the  registration  requirements of the Securities Act of
1933, as amended (the "1933 Act"),  and any applicable  state securities laws or
is made in accordance  with the 1933 Act and such laws. In the event of any such
transfer,  (i) unless the  transfer  is made in  reliance on Rule 144A under the
1933 Act, the  Securities  Administrator  or the Depositor may require a written
Opinion of Counsel (which may be in-house counsel) acceptable to and in form and
substance  reasonably  satisfactory  to the  Securities  Administrator  and  the
Depositor  that such transfer may be made  pursuant to an exemption,  describing
the applicable exemption and the basis therefor, from the 1933 Act and such laws
or is being  made  pursuant  to the 1933 Act and such  laws,  which  Opinion  of
Counsel shall not be an expense of the Securities Administrator or the Depositor
and (ii) the  Securities  Administrator  shall  require a  certificate  from the
Certificateholder  desiring to effect such  transfer  substantially  in the form
attached to the Pooling and Servicing Agreement as Exhibit G-1 and a certificate
from such  Certificateholder's  prospective transferee substantially in the form
attached to the Pooling and  Servicing  Agreement  either as Exhibit  G-2A or as
Exhibit  G-2B,  which  certificates  shall not be an expense  of the  Securities
Administrator or the Depositor;  provided that the foregoing  requirements under
clauses  (i) and (ii)  shall not apply to a  transfer  of a Private  Certificate
between or among the  Depositor,  the Sponsor,  their  affiliates  or both.  The
Holder of a Private Certificate desiring to effect such transfer shall, and does
hereby  agree to,  indemnify  the  Securities  Administrator  and the  Depositor
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such federal and state laws.

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

     This Certificate shall not be entitled to any benefit under the Pooling and
Servicing Agreement or be valid for any purpose unless manually authenticated by
an authorized signatory of the Securities Administrator.

                                      * * *

                                     B-P-4

<PAGE>
                                    EXHIBIT C

                      [FORM OF REVERSE OF ALL CERTIFICATES]

                       BANC OF AMERICA FUNDING CORPORATION
                       Mortgage Pass-Through Certificates

     This  Certificate  is  one  of a  duly  authorized  issue  of  Certificates
designated  as  Banc  of  America  Funding  Corporation  Mortgage   Pass-Through
Certificates,  of the Series  specified  on the face hereof  (collectively,  the
"Certificates"),  and representing a beneficial  ownership interest in the Trust
created by the Pooling and Servicing Agreement.

     The Certificateholder,  by its acceptance of this Certificate,  agrees that
it will look  solely to the funds on  deposit  in the  Certificate  Account  for
payment  hereunder and that the  Securities  Administrator  is not liable to the
Certificateholders  for any amount payable under this Certificate or the Pooling
and  Servicing  Agreement  or,  except as expressly  provided in the Pooling and
Servicing  Agreement,  subject to any liability  under the Pooling and Servicing
Agreement.

     This  Certificate  does not purport to summarize  the Pooling and Servicing
Agreement and  reference is made to the Pooling and Servicing  Agreement for the
interests,  rights and limitations of rights,  benefits,  obligations and duties
evidenced  thereby,  and the rights,  duties and  immunities  of the  Securities
Administrator.

     Pursuant  to  the  terms  of  the  Pooling  and  Servicing   Agreement,   a
distribution  will be made on the 25th day of each  calendar  month (or, if such
day is not a Business Day, the next Business Day) (each, a "Distribution Date"),
commencing on the first  Distribution  Date specified on the face hereof, to the
Person in whose name this  Certificate is registered at the close of business on
the  applicable  Record Date in an amount  required  pursuant to the Pooling and
Servicing Agreement.

     On each Distribution  Date, the Securities  Administrator  shall distribute
out of the  Certificate  Account  to each  Certificateholder  of  record  on the
related Record Date (other than respecting the final  distribution) (a) by check
mailed to such  Certificateholder  entitled  to receive a  distribution  on such
Distribution Date at the address appearing in the Certificate  Register,  or (b)
upon  written  request by the  Holder of a  Certificate  (other  than a Residual
Certificate),  by wire  transfer  or by such  other  means  of  payment  as such
Certificateholder  and the  Securities  Administrator  shall  agree  upon,  such
Certificateholder's Percentage Interest in the amount to which the related Class
of  Certificates  is entitled in  accordance  with the  priorities  set forth in
Section  5.2  and  5.03  of the  Pooling  and  Servicing  Agreement.  The  final
distribution  on each  Certificate  will be made in like  manner,  but only upon
presentation and surrender of such  Certificate to the Securities  Administrator
as contemplated by Section 10.01 of the Pooling and Servicing Agreement.

     The  Pooling and  Servicing  Agreement  permits,  with  certain  exceptions
therein  provided,  the amendment thereof and the modification of the rights and
obligations   of  the   Securities   Administrator   and  the   rights   of  the

                                      C-1
<PAGE>
Certificateholders  under the Pooling and Servicing Agreement at any time by the
Depositor,  the Master Servicer,  the Securities  Administrator  and the Trustee
with the  consent of the  Holders of  Certificates  affected  by such  amendment
evidencing  the requisite  Percentage  Interest,  as provided in the Pooling and
Servicing Agreement. Any such consent by the Holder of this Certificate shall be
conclusive  and  binding  on such  Holder  and upon all  future  Holders of this
Certificate  and of any  Certificate  issued  upon  the  transfer  hereof  or in
exchange  therefor or in lieu hereof  whether or not notation of such consent is
made upon this Certificate. The Pooling and Servicing Agreement also permits the
amendment thereof, in certain limited circumstances,  without the consent of the
Holders of any of the Certificates.

     As provided in the Pooling and  Servicing  Agreement and subject to certain
limitations  therein set forth,  the transfer of this Certificate is registrable
in the Certificate  Register of the Securities  Administrator  upon surrender of
this  Certificate for  registration of transfer at the Corporate Trust Office of
the Securities Administrator  accompanied by a written instrument of transfer in
form satisfactory to the Securities  Administrator and the Certificate Registrar
duly executed by the Holder hereof or such Holder's  attorney duly authorized in
writing,  and  thereupon  one or more  new  Certificates  of the  same  Class in
authorized  denominations and evidencing the same aggregate  Percentage Interest
in the Trust will be issued to the designated transferee or transferees.

     The  Certificates  are issuable  only as  registered  Certificates  without
coupons in denominations  specified in the Pooling and Servicing  Agreement.  As
provided  in  the  Pooling  and  Servicing  Agreement  and  subject  to  certain
limitations   therein  set  forth,   Certificates   are   exchangeable  for  new
Certificates  of the same Class in authorized  denominations  and evidencing the
same aggregate Percentage Interest,  as requested by the Holder surrendering the
same.

     No service  charge  will be made for any such  registration  of transfer or
exchange,  but  the  Securities  Administrator  may  require  payment  of a  sum
sufficient to cover any tax or other  governmental  charge payable in connection
therewith.

     The  Depositor,   the  Master  Servicer,  the  Certificate  Registrar,  the
Securities  Administrator  and the Trustee and any agent of the  Depositor,  the
Master Servicer, the Certificate Registrar,  the Securities Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as the
owner hereof for all purposes,  and none of the Depositor,  the Master Servicer,
the Certificate Registrar, the Trustee, the Securities Administrator or any such
agent shall be affected by any notice to the contrary.

     On any Distribution Date on which the aggregate Stated Principal Balance of
the Group 1 Loans is less than 1% of the aggregate unpaid  principal  balance of
the Group 1 Mortgage Loans as of the Cut-off Date,  the Master  Servicer has the
option to purchase the Group 1 Mortgage Loans and related REO  Properties  under
the  conditions  set  forth  in  Section  10.01  of the  Pooling  and  Servicing
Agreement.  On any  Distribution  Date on which the aggregate  Stated  Principal
Balance of the Group T2 Mortgage Loans is less than 10% of the aggregate  unpaid
principal balance of the Group T2 Mortgage Loans as of the Cut-off Date, certain
parties  specified  in the Pooling and  Servicing  Agreement  have the option to

                                      C-2
<PAGE>
purchase  the Group T2  Mortgage  Loans and  related  REO  Properties  under the
conditions set forth in Section 10.01 of the Pooling and Servicing Agreement. In
the event that no such terminations occur, the obligations and  responsibilities
created by the Pooling and Servicing  Agreement will terminate upon the later of
the maturity or other  liquidation (or any advance with respect  thereto) of the
last Mortgage Loan remaining in the Trust or the  disposition of all property in
respect  thereof  and the  distribution  to  Certificateholders  of all  amounts
required to be distributed pursuant to the Pooling and Servicing  Agreement.  In
no event shall the Trust created by the Pooling and Servicing Agreement 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 thereof.

     Any term used herein that is defined in the Pooling and Servicing Agreement
shall have the meaning  assigned in the Pooling  and  Servicing  Agreement,  and
nothing herein shall be deemed inconsistent with that meaning.

                                      C-3

<PAGE>

     IN  WITNESS  WHEREOF,   the  Securities   Administrator   has  caused  this
Certificate to be duly executed.

Dated:

                                                     WELLS FARGO BANK, N.A.,
                                                     as Securities Administrator

                                                     By
                                                       -------------------------
                                                         Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

This  is one of the  Certificates  referred  to in  the  Pooling  and  Servicing
Agreement referenced herein.

                                                     WELLS FARGO BANK, N.A.,
                                                     as Securities Administrator

                                                     By
                                                       -------------------------
                                                         Authorized Signatory

                                      C-4

<PAGE>

                                   ASSIGNMENT

     FOR  VALUE  RECEIVED,   the  undersigned  hereby  sell(s),   assign(s)  and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
          (Please print or typewrite name and address including postal
                             zip code of assignee)

the  Percentage   Interest  evidenced  by  the  within  Certificate  and  hereby
authorizes the transfer of registration of such Percentage  Interest to assignee
on the Certificate Register of the Trust.

     I  (We)  further  direct  the  Securities  Administrator  to  issue  a  new
Certificate of a like  denomination  and Class,  to the above named assignee and
deliver such Certificate to the following address:

Dated:
                                     -------------------------------------------
                                     Signature by or on behalf of assignor

                            DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

     Distributions shall be made, by wire transfer or otherwise,  in immediately
available funds to ____________________________________________________  for the
account of ___________________, account number _________________________, or, if
mailed by check, to Applicable statements should be mailed to

     This  information  is provided by , the assignee  named  above,  or, as its
agent.

                                      C-5

<PAGE>

                                   EXHIBIT D-1

                       LOAN GROUP 1 MORTGAGE LOAN SCHEDULE

    (See the Free Writing Prospectus filed and accepted by the Securities and
         Exchange Commission on October 27, 2006, with a filing date of
           October 30, 2006 and accession number 0000950136-06-008947)

                                     D-1-1

<PAGE>

                                  EXHIBIT D-T2

                      LOAN GROUP T2 MORTGAGE LOAN SCHEDULE

    (See the Free Writing Prospectus filed and accepted by the Securities and
         Exchange Commission on October 27, 2006, with a filing date of
          October 30, 2006 and accession number 0000950136-06-008947)

                                     D-T2-1
<PAGE>
                                    EXHIBIT E

                        REQUEST FOR RELEASE OF DOCUMENTS

                                     [Date]

To:  U.S. Bank National Association
     4527 Metropolitan Ct., Suite C
     Frederick, MD  21704
     Attention:  Tina Radtke

Re:  The Pooling and Servicing Agreement  dated  October 30, 2006, among Banc of
     America  Funding  Corporation,  as  Depositor, Wells  Fargo Bank,  N.A., as
     Securities  Administrator  and  Master  Servicer,  and  U.S.  Bank National
     Association, as Trustee.

     In connection with the administration of the Mortgage Loans held by you, as
Custodian,  pursuant to the above-captioned  Pooling and Servicing Agreement, we
request the release,  and hereby acknowledge  receipt,  of the Mortgage File for
the Mortgage Loan described below, for the reason indicated.

Mortgage Loan Number:
---------------------

Mortgagor Name, Address & Zip Code:
-----------------------------------

Reason for Requesting Documents (check one)
-------------------------------

____     1.       Mortgage Paid in Full

____     2.       Foreclosure

____     3.       Substitution

____     4.       Other Liquidation

____     5.       Nonliquidation                    Reason:
                                                            --------------------

                                           By:
                                              ----------------------------------
                                                 (authorized signer of Servicer)

                                           Issuer:
                                                  ------------------------------
                                           Address:
                                                   -----------------------------

                                           Date:
                                                --------------------------------

                                      E-1
<PAGE>

Custodian
---------

U.S. Bank National Association
Please acknowledge the execution of the above request by your signature and date
below:

----------------------------------  ---------------
Signature                               Date

Documents returned to Custodian:

----------------------------------- ----------------
Custodian                               Date

                                      E-2

<PAGE>
                                   EXHIBIT F

               FORM OF CERTIFICATION OF ESTABLISHMENT OF ACCOUNT

                                October 30, 2006

     [_______________]  hereby  certifies that it has established a [__________]
Account pursuant to Section  [________] of the Pooling and Servicing  Agreement,
dated October 30, 2006, among Banc of America Funding Corporation, as Depositor,
Wells Fargo Bank, N.A., as Securities  Administrator  and Master  Servicer,  and
U.S. Bank National Association, as Trustee.

                                    [---------------],

                                    By:
                                        ----------------------------------------
                                    Name:
                                          --------------------------------------
                                    Title:
                                           -------------------------------------

                                      F-1

<PAGE>

                                   EXHIBIT G-1

                        FORM OF TRANSFEROR'S CERTIFICATE
                      FOR TRANSFERS OF PRIVATE CERTIFICATES

                                     [Date]
Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479-0113
Attention: Corporate Trust Services - BAFC 2006-7

Re:     Banc of America Funding Corporation, Mortgage Pass-Through Certificates,
        Series  2006-7,  Class ___,  having  an  initial  aggregate  Certificate
        Balance as of October 30, 2006 of $___________

Ladies and Gentlemen:

     This  letter  is  delivered  to you in  connection  with  the  transfer  by
[______________]  (the "Transferor") to  [______________]  (the "Transferee") of
the captioned Certificates (the "Transferred Certificates"), pursuant to Section
6.02  of the  Pooling  and  Servicing  Agreement  (the  "Pooling  and  Servicing
Agreement"),  dated October 30, 2006, among Banc of America Funding Corporation,
as Depositor,  Wells Fargo Bank,  N.A., as Securities  Administrator  and Master
Servicer, and U.S. Bank National Association,  as Trustee. All capitalized terms
used herein and not  otherwise  defined shall have the  respective  meanings set
forth in the Pooling and Servicing  Agreement.  The Transferor hereby certifies,
represents and warrants to you, as Securities Administrator, that:

          1.  The Transferor is the lawful owner of the Transferred Certificates
     with the full right to  transfer  such  Certificates  free from any and all
     claims and encumbrances whatsoever.

          2.  Neither  the  Transferor  nor anyone  acting on its behalf has (a)
     offered,   transferred,   pledged,   sold  or  otherwise  disposed  of  any
     Transferred  Certificate,  any interest in a Transferred Certificate or any
     other similar security to any person in any manner, (b) solicited any offer
     to buy or accept a transfer, pledge or other disposition of any Transferred
     Certificate, any interest in a Transferred Certificate or any other similar
     security  from any  person  in any  manner,  (c)  otherwise  approached  or
     negotiated with respect to any Transferred  Certificate,  any interest in a
     Transferred  Certificate  or any other similar  security with any person in
     any  manner,  (d)  made  any  general  solicitation  with  respect  to  any
     Transferred  Certificate,  any interest in a Transferred Certificate or any
     other  similar  security  by means of general  advertising  or in any other
     manner,  or (e) taken any other  action  with  respect  to any  Transferred
     Certificate, any interest in a Transferred Certificate or any other similar
     security,  which (in the case of any of the acts  described  in clauses (a)

                                     G-1-1

<PAGE>

     through (e) hereof)  would  constitute a  distribution  of the  Transferred
     Certificates under the Securities Act of 1933, as amended (the "1933 Act"),
     would render the disposition of the Transferred Certificates a violation of
     Section 5 of the 1933 Act or any state  securities  laws,  or would require
     registration or qualification of the Transferred  Certificates  pursuant to
     the 1933 Act or any state securities laws.

                                           Very truly yours,

                                           -------------------------------------
                                           (Transferor)

                                           By:
                                               ---------------------------------
                                           Name:
                                                 -------------------------------
                                           Title:
                                                 -------------------------------

                                     G-1-2
<PAGE>
                                  EXHIBIT G-2A

                       FORM 1 OF TRANSFEREE'S CERTIFICATE
                      FOR TRANSFERS OF PRIVATE CERTIFICATES

                                     [Date]

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479-0113
Attention: Corporate Trust Services - BAFC 2006-7

         Re:      Banc  of  America  Funding  Corporation, Mortgage Pass-Through
                  Certificates,  Series  2006-7,  Class ___, having  an  initial
                  aggregate  Certificate  Balance  as  of  October  30, 2006  of
                  $_________]

Ladies and Gentlemen:

     This  letter  is  delivered  to you in  connection  with  the  transfer  by
[_______________] (the "Transferor") to [_________________________________] (the
"Transferee") of the captioned  Certificates (the  "Transferred  Certificates"),
pursuant to Section 6.02 of the Pooling and  Servicing  Agreement  (the "Pooling
and Servicing Agreement"), dated October 30, 2006, among Banc of America Funding
Corporation,  as Depositor,  Wells Fargo Bank, N.A., as Securities Administrator
and Master  Servicer,  and U.S.  Bank  National  Association,  as  Trustee.  All
capitalized  terms  used  herein  and  not  otherwise  defined  shall  have  the
respective  meanings  set forth in the  Pooling  and  Servicing  Agreement.  The
Transferor  hereby  certifies,  represents  and  warrants to you, as  Securities
Administrator, that:

          1. The Transferee is a "qualified  institutional  buyer" (a "Qualified
     Institutional  Buyer") as that term is defined in Rule 144A  ("Rule  144A")
     under the  Securities  Act of 1933,  as amended (the "1933  Act"),  and has
     completed one of the forms of  certification to that effect attached hereto
     as  Annex 1 and  Annex 2. The  Transferee  is aware  that the sale to it is
     being made in  reliance  on Rule 144A.  The  Transferee  is  acquiring  the
     Transferred  Certificates for its own account or for the account of another
     Qualified  Institutional  Buyer,  and  understands  that  such  Transferred
     Certificates  may be resold,  pledged or  transferred  only (a) to a person
     reasonably  believed to be a Qualified  Institutional  Buyer that purchases
     for its own account or for the account of another  Qualified  Institutional
     Buyer to whom notice is given that the resale,  pledge or transfer is being
     made in reliance on Rule 144A,  or (b) pursuant to another  exemption  from
     registration under the 1933 Act.

          2. The Transferee has been  furnished with all  information  regarding
     (a) the  Depositor,  (b) the  Transferred  Certificates  and  distributions
     thereon,  (c) the nature,  performance and servicing of the Mortgage Loans,
     (d) the Pooling and  Servicing  Agreement  and the Trust  created  pursuant

                                     G-2A-1

<PAGE>
     thereto,   (e)  any  credit  enhancement   mechanism  associated  with  the
     Transferred  Certificate,   and  (f)  all  related  matters,  that  it  has
     requested.
          3. If the Transferee  proposes that the  Transferred  Certificates  be
     registered in the name of a nominee, such nominee has completed the Nominee
     Acknowledgment below.

                                           Very truly yours,

                                           -------------------------------------
                                           (Transferor)

                                           By:
                                               ---------------------------------
                                           Name:
                                                 -------------------------------
                                           Title:
                                                  ------------------------------

                                     G-2A-2

<PAGE>
                             Nominee Acknowledgment
                             ----------------------

     The undersigned  hereby  acknowledges and agrees that as to the Transferred
Certificates  being registered in its name, the sole beneficial owner thereof is
and shall be the Transferee identified above, for whom the undersigned is acting
as nominee.

                                            ------------------------------------
                                            (Nominee)

                                            By:
                                                --------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------

                                     G-2A-3

<PAGE>
                                                         ANNEX 1 TO EXHIBIT G-2A

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

     The undersigned  hereby certifies as follows to  [__________________]  (the
"Transferor")  Wells Fargo Bank, N.A., as Securities  Administrator with respect
to the  mortgage  pass-through  certificates  (the  "Transferred  Certificates")
described in the Transferee  certificate to which this certification relates and
to which this certification is an Annex:

     1. As indicated  below, the undersigned is the chief financial  officer,  a
person  fulfilling an equivalent  function,  or other  executive  officer of the
entity purchasing the Transferred Certificates (the "Transferee").

     2. The  Transferee  is a  "qualified  institutional  buyer" as that term is
defined in Rule 144A ("Rule 144A") under the Securities Act of 1933, as amended,
because  (i) the  Transferee  owned  and/or  invested on a  discretionary  basis
$______________________/1/  in  securities  (other than the excluded  securities
referred to below) as of the end of the  Transferee's  most  recent  fiscal year
(such  amount  being  calculated  in  accordance  with  Rule  144A) and (ii) the
Transferee satisfies the criteria in the category marked below.

         ___      Corporation, etc.  The Transferee is a corporation (other than
                  a  bank, savings and loan association or similar institution),
                  Massachusetts or similar business trust,  partnership, or  any
                  organization  described  in  Section 501(c)(3) of the Internal
                  Revenue Code of 1986.

         ___      Bank. The  Transferee  (a)  is  a  national bank or a  banking
                  institution  organized  under  the  laws  of  any  state, U.S.
                  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,  as  of  a  date  not  more  than  16 months
                  preceding  the date of sale of the Transferred Certificates in
                  the case of a U.S. bank, and not more than 18 months preceding
                  such date of sale in the case of  a foreign bank or equivalent
                  institution.

         ___      Savings and Loan.  The  Transferee (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
---------------------------
/1/  Transferee  must  own  and/or  invest  on  a  discretionary  basis at least
$100,000,000 in securities unless Transferee is a dealer,  and,  in  that  case,
Transferee must own and/or invest on a discretionary basis  at least $10,000,000
in securities.

                                     G-2A-4
<PAGE>
                  supervision  over  any  such  institutions,  or  is  a foreign
                  savings  and  loan association or equivalent institute 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, as of a date not more than 16
                  months  preceding   the   date  of  sale  of  the  Transferred
                  Certificates  in  the  case   of   a  U.S.  savings  and  loan
                  association,  and  not more than 18 months preceding such date
                  of sale in the case  of a foreign savings and loan association
                  or equivalent institution.

         ___      Broker-dealer.  The Transferee is a dealer registered pursuant
                  to  Section  15 of  the Securities  Exchange  Act  of 1934, as
                  amended.

         ___      Insurance Company.  The  Transferee is  an  insurance  company
                  whose primary and predominant business activity is the writing
                  of insurance  or  the  reinsuring  of  risks  underwritten  by
                  insurance companies and which is subject to supervision by the
                  insurance commissioner  or a similar  official or agency of  a
                  state, U.S. territory or the District of Columbia.

         ___      State or Local Plan.  The Transferee 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 Transferee is an employee benefit plan within
                  the meaning of Title  I  of  the  Employee  Retirement  Income
                  Security Act of 1974.

         ___      Investment Advisor.  The  Transferee is  an investment advisor
                  registered under the Investment Advisers Act of 1940.

         ___      Other. (Please supply a brief description of  the entity and a
                  cross-reference  to  the  paragraph  and  subparagraph   under
                  subsection (a)(1) of Rule 144A pursuant to which it qualifies.
                  Note that  registered  investment  companies  should  complete
                  Annex 2 rather than this Annex 1.)

     3. The term  "securities" as used herein does not include (i) securities of
issuers that are affiliated with the  Transferee,  (ii) securities that are part
of an unsold  allotment to or subscription by the Transferee,  if the Transferee
is a dealer,  (iii) bank deposit notes and  certificates  of deposit,  (iv) loan
participations,  (v) repurchase agreements, (vi) securities owned but subject to
a repurchase  agreement and (vii) currency,  interest rate and commodity  swaps.
For purposes of  determining  the aggregate  amount of  securities  owned and/or
invested on a  discretionary  basis by the  Transferee,  the  Transferee did not
include any of the securities referred to in this paragraph.

     4. For purposes of  determining  the aggregate  amount of securities  owned
and/or invested on a discretionary basis by the Transferee,  the Transferee used
the cost of such securities to the Transferee, unless the Transferee reports its
securities  holdings in its  financial  statements  on the basis of their market
value,  and no current  information with respect to the cost of those securities

                                     G-2A-5
<PAGE>
has been published, in which case the securities were valued at market. Further,
in  determining  such  aggregate  amount,   the  Transferee  may  have  included
securities   owned  by  subsidiaries  of  the  Transferee,   but  only  if  such
subsidiaries  are consolidated  with the Transferee in its financial  statements
prepared in accordance with generally accepted accounting  principles and if the
investments of such  subsidiaries are managed under the Transferee's  direction.
However,   such   securities   were  not  included  if  the   Transferee   is  a
majority-owned, consolidated subsidiary of another enterprise and the Transferee
is not itself a reporting company under the Securities  Exchange Act of 1934, as
amended.

     5. The  Transferee  is  familiar  with Rule 144A and  understands  that the
Transferor and other parties related to the Transferred Certificates are relying
and will  continue to rely on the  statements  made  herein  because one or more
sales to the Transferee may be in reliance on Rule 144A.

           ____     ____     Will the Transferee be  purchasing the  Transferred
           Yes      No       Certificates only for the Transferee's own account?

     6. If the answer to the foregoing question is "no," then in each case where
the  Transferee  is  purchasing  for an account other than its own, such account
belongs to a third party that is itself a "qualified institutional buyer" within
the meaning of Rule 144A, and the "qualified institutional buyer" status of such
third party has been  established by the  Transferee  through one or more of the
appropriate methods contemplated by Rule 144A.

     7. The  Transferee   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  Transferee's  purchase  of the  Transferred
Certificates  will constitute a reaffirmation  of this  certification  as of the
date of such purchase.  In addition,  if the Transferee is a bank or savings and
loan as provided  above,  the  Transferee  agrees  that it will  furnish to such
parties any updated  annual  financial  statements  that become  available on or
before the date of such purchase, promptly after they become available.

                                     -------------------------------------------
                                     Print Name of Transferee

                                     By:
                                         ---------------------------------------
                                     Name:
                                           -------------------------------------
                                     Title:
                                            ------------------------------------
                                     Date:
                                           -------------------------------------

                                     G-2A-6
<PAGE>
                                                         ANNEX 2 TO EXHIBIT G-2A

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [For Transferees That Are Registered Investment Companies]

     The undersigned  hereby  certifies as follows to  [_________________]  (the
"Transferor") Wells Fargo Bank, N.A., as Securities Administrator,  with respect
to the  mortgage  pass-through  certificates  (the  "Transferred  Certificates")
described in the Transferee  certificate to which this certification relates and
to which this certification is an Annex:

     1. As indicated  below, the undersigned is the chief financial  officer,  a
person  fulfilling an equivalent  function,  or other  executive  officer of the
entity  purchasing the Transferred  Certificates  (the  "Transferee") or, if the
Transferee is a "qualified  institutional buyer" as that term is defined in Rule
144A ("Rule 144A") under the  Securities  Act of 1933,  as amended,  because the
Transferee is part of a Family of Investment Companies (as defined below), is an
executive officer of the investment adviser (the "Adviser").

     2. The Transferee is a "qualified  institutional  buyer" as defined in Rule
144A because (i) the Transferee is an investment  company  registered  under the
Investment  Company Act of 1940, and (ii) as marked below,  the Transferee alone
owned and/or invested on a discretionary  basis, or the  Transferee'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 Transferee's  most
recent fiscal year. For purposes of determining  the amount of securities  owned
by the Transferee or the Transferee's Family of Investment  Companies,  the cost
of such  securities  was  used,  unless  the  Transferee  or any  member  of the
Transferee's  Family of Investment  Companies,  as the case may be,  reports its
securities  holdings in its  financial  statements  on the basis of their market
value,  and no current  information with respect to the cost of those securities
has been  published,  in which case the securities of such entity were valued at
market.

         ____     The Transferee owned and/or invested on a  discretionary basis
                  $__________ in securities (other  than the excluded securities
                  referred to below)  as of  the  end of  the Transferee's  most
                  recent fiscal year (such amount being calculated in accordance
                  with Rule 144A).

         ____     The Transferee 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  Transferee's  most recent fiscal year (such
                  amount being calculated in accordance with Rule 144A).

     3. The term "Family of  Investment  Companies"  as used herein means two or
more  registered  investment  companies  (or series  thereof) that have the same
investment  adviser or  investment  advisers that are  affiliated  (by virtue of
being majority owned  subsidiaries  of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

                                     G-2A-7
<PAGE>
     4. The term  "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Transferee or are part of the  Transferee's
Family of  Investment  Companies,  (ii) bank deposit notes and  certificates  of
deposit, (iii) loan participations,  (iv) repurchase agreements,  (v) securities
owned but subject to a repurchase agreement and (vi) 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 Transferee,  or owned by
the Transferee's Family of Investment  Companies,  the securities referred to in
this paragraph were excluded.

     5. The  Transferee  is  familiar  with Rule 144A and  understands  that the
Transferor and other parties related to the Transferred Certificates are relying
and will  continue to rely on the  statements  made  herein  because one or more
sales to the Transferee will be in reliance on Rule 144A.

           ____     ____     Will the Transferee  be  purchasing the Transferred
           Yes      No       Certificates only for the Transferee's own account?

     6. If the answer to the foregoing question is "no," then in each case where
the  Transferee  is  purchasing  for an account other than its own, such account
belongs to a third party that is itself a "qualified institutional buyer" within
the meaning of Rule 144A, and the "qualified institutional buyer" status of such
third party has been  established by the  Transferee  through one or more of the
appropriate methods contemplated by Rule 144A.

     7. The undersigned  will notify the parties to which this  certification is
made of any  changes  in the  information  and  conclusions  herein.  Until such
notice,  the  Transferee's   purchase  of  the  Transferred   Certificates  will
constitute a reaffirmation  of this  certification  by the undersigned as of the
date of such purchase.

                                     -------------------------------------------
                                     Print Name of Transferee or Adviser

                                     By:
                                         ---------------------------------------
                                     Name:
                                           -------------------------------------
                                     Title:
                                            ------------------------------------

                                     IF AN ADVISER:

                                     Print Name of Transferee

                                     By:
                                         ---------------------------------------
                                     Date:
                                           -------------------------------------

                                     G-2A-8
<PAGE>
                                  EXHIBIT G-2B

                       FORM 2 OF TRANSFEREE'S CERTIFICATE
                      FOR TRANSFERS OF PRIVATE CERTIFICATES

                                     [Date]

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479-0113
Attention: Corporate Trust Services - BAFC 2006-7

         Re:   Banc   of  America  Funding  Corporation,  Mortgage  Pass-Through
               Certificates,   Series  2006-7,   Class ___, having  an   initial
               aggregate Certificate Principal Balance as of October 30, 2006 of
               $_________

Ladies and Gentlemen:

     This  letter  is  delivered  to you in  connection  with  the  transfer  by
[_______________________]            (the            "Transferor")            to
[_________________________________]   (the   "Transferee")   of  the   captioned
Certificates (the "Transferred  Certificates"),  pursuant to Section 6.02 of the
Pooling and Servicing Agreement (the "Pooling and Servicing  Agreement"),  dated
October 30, 2006, among Banc of America Funding Corporation, as Depositor, Wells
Fargo Bank, N.A., as Securities Administrator and Master Servicer, and U.S. Bank
National  Association,  as Trustee.  All  capitalized  terms used herein and not
otherwise  defined shall have the  respective  meanings set forth in the Pooling
and  Servicing  Agreement.  The  Transferor  hereby  certifies,  represents  and
warrants to you, as Securities Administrator, that:

     1. Transferee is acquiring the Transferred Certificates for its own account
for investment and not with a view to or for sale or transfer in connection with
any distribution thereof, in whole or in part, in any manner which would violate
the Securities Act of 1933, as amended (the "1933 Act"), or any applicable state
securities laws.

     2. Transferee  understands that (a) the Transferred  Certificates  have not
been and will not be  registered  under the 1933 Act or  registered or qualified
under any applicable  state  securities  laws, (b) neither the Depositor nor the
Securities  Administrator is obligated so to register or qualify the Transferred
Certificates  and (c)  neither the  Transferred  Certificates  nor any  security
issued in  exchange  therefor or in lieu  thereof  may be resold or  transferred
unless such resale or transfer is exempt from the  registration  requirements of
the 1933 Act and any applicable  state  securities laws or is made in accordance
with the 1933 Act and laws,  in which case (i) unless  the  transfer  is made in
reliance on Rule 144A under the 1933 Act, the  Securities  Administrator  or the
Depositor  may  require a written  Opinion  of Counsel  (which  may be  in-house
counsel) acceptable to and in form and substance reasonably  satisfactory to the
Securities  Administrator  and the  Depositor  that  such  transfer  may be made

                                     G-2B-1

<PAGE>
pursuant to an  exemption,  describing  the  applicable  exemption and the basis
therefor,  from the 1933 Act and such laws or is being made pursuant to the 1933
Act and such  laws,  which  Opinion  of  Counsel  shall not be an expense of the
Securities  Administrator or the Depositor and (ii) the Securities Administrator
shall require a certificate from the  Certificateholder  desiring to effect such
transfer  substantially  in the  form  attached  to the  Pooling  and  Servicing
Agreement  as  Exhibit  G-1  and a  certificate  from  such  Certificateholder's
prospective  transferee  substantially  in the form  attached to the Pooling and
Servicing   Agreement   either  as  Exhibit  G-2A  or  as  Exhibit  G-2B,  which
certificates  shall not be an expense  of the  Securities  Administrator  or the
Depositor;  provided that the foregoing  requirements under clauses (i) and (ii)
shall not apply to a  transfer  of a Private  Certificate  between  or among the
Depositor, the Seller, their affiliates or both.

     3. The Transferee  understands  that it may not sell or otherwise  transfer
the Transferred  Certificates,  any security  issued in exchange  therefor or in
lieu  thereof or any interest in the  foregoing  except in  compliance  with the
provisions  of  Section  6.02 of the  Pooling  and  Servicing  Agreement,  which
provisions it has carefully reviewed, and that the Transferred Certificates will
bear legends substantially to the following effect:

     THIS  CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
     AS AMENDED  (THE "1933  ACT").  ANY RESALE OR TRANSFER OF THIS  CERTIFICATE
     WITHOUT  REGISTRATION  THEREOF  UNDER  THE  1933  ACT MAY ONLY BE MADE IN A
     TRANSACTION EXEMPTED FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND
     IN ACCORDANCE  WITH THE  PROVISIONS OF THE POOLING AND SERVICING  AGREEMENT
     REFERENCED HEREIN.

     UNDER  CURRENT LAW THE  PURCHASE AND HOLDING OF THIS  CERTIFICATE  BY OR ON
     BEHALF OF ANY EMPLOYEE BENEFIT PLAN OR ARRANGEMENT, INCLUDING AN INDIVIDUAL
     RETIREMENT ACCOUNT,  SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
     OF 1974,  AS AMENDED  ("ERISA"),  THE  INTERNAL  REVENUE  CODE OF 1986,  AS
     AMENDED (THE "CODE"),  OR ANY FEDERAL,  STATE OR LOCAL LAW ("SIMILAR  LAW")
     WHICH IS SIMILAR TO THE PROHIBITED  TRANSACTION  PROVISIONS OF ERISA OR THE
     CODE OR THE FIDUCIARY  PROVISIONS OF ERISA  (COLLECTIVELY,  A "PLAN"),  MAY
     RESULT IN "PROHIBITED TRANSACTIONS" WITHIN THE MEANING OF ERISA OR THE CODE
     OR A VIOLATION OF SIMILAR  LAW.  TRANSFER OF THIS  CERTIFICATE  WILL NOT BE
     MADE UNLESS THE TRANSFEREE DELIVERS TO THE SECURITIES  ADMINISTRATOR EITHER
     (I) A  REPRESENTATION  LETTER,  IN FORM AND SUBSTANCE  SATISFACTORY  TO THE
     SECURITIES ADMINISTRATOR,  STATING THAT (A) IT IS NOT, AND IS NOT ACTING ON
     BEHALF  OF,  ANY SUCH PLAN OR USING  THE  ASSETS OF ANY SUCH PLAN TO EFFECT
     SUCH PURCHASE OR (B) IN THE CASE OF ANY PRIVATE  CERTIFICATE  (OTHER THAN A
     CLASS CE OR CLASS P CERTIFICATE),  IF IT IS AN INSURANCE COMPANY,  THAT THE
     SOURCE OF FUNDS USED TO PURCHASE THIS CERTIFICATE IS AN "INSURANCE  COMPANY
     GENERAL  ACCOUNT"  (AS SUCH TERM IS DEFINED IN SECTION  V(E) OF  PROHIBITED
     TRANSACTION  CLASS EXEMPTION 95-60 ("PTE 95-60"),  60 FED. REG. 35925 (JULY
     12,  1995)),  THERE IS NO PLAN SUBJECT TO ERISA OR SECTION 4975 OF THE CODE
     WITH  RESPECT TO WHICH THE AMOUNT OF SUCH  GENERAL  ACCOUNT'S  RESERVES AND
     LIABILITIES FOR THE  CONTRACT(S)  HELD BY OR ON BEHALF OF SUCH PLAN AND ALL
     OTHER  PLANS  MAINTAINED  BY THE SAME  EMPLOYER  (OR  AFFILIATE  THEREOF AS
     DEFINED  IN  SECTION  V(A)(1)  OF  PTE  95-60)  OR  BY  THE  SAME  EMPLOYEE
     ORGANIZATION  EXCEEDS 10% OF THE TOTAL OF ALL RESERVES AND  LIABILITIES  OF
     SUCH GENERAL ACCOUNT (AS SUCH

                                     G-28-2
<PAGE>
     AMOUNTS  ARE  DETERMINED  UNDER  SECTION  I(A) OF PTE 95-60) AT THE DATE OF
     ACQUISITION  AND ALL SUCH  PLANS  THAT  HAVE AN  INTEREST  IN SUCH  GENERAL
     ACCOUNT  ARE  PLANS TO WHICH  PTE  95-60  APPLIES,  OR (II) AN  OPINION  OF
     COUNSEL,   IN  FORM   AND   SUBSTANCE   SATISFACTORY   TO  THE   SECURITIES
     ADMINISTRATOR,  TO  THE  EFFECT  THAT  THE  PURCHASE  OR  HOLDING  OF  THIS
     CERTIFICATE BY OR ON BEHALF OF SUCH PLAN WILL NOT CONSTITUTE OR RESULT IN A
     NON-EXEMPT  PROHIBITED  TRANSACTION  WITHIN THE MEANING OF ERISA OR SECTION
     4975 OF THE CODE OR A  VIOLATION  OF SIMILAR  LAW AND WILL NOT  SUBJECT THE
     DEPOSITOR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE
     TO ANY  OBLIGATION  IN  ADDITION  TO THOSE  UNDERTAKEN  IN THE  POOLING AND
     SERVICING  AGREEMENT.  EACH PERSON WHO  ACQUIRES  THIS  CERTIFICATE  OR ANY
     INTEREST THEREIN SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS  REQUIRED
     BY THE  REPRESENTATION  LETTER REFERRED TO IN THE PRECEDING SENTENCE UNLESS
     SUCH PERSON SHALL HAVE PROVIDED SUCH  REPRESENTATION  LETTER OR THE OPINION
     OF  COUNSEL  REFERRED  TO IN  THE  PRECEDING  SENTENCE  TO  THE  SECURITIES
     ADMINISTRATOR.  THE  POOLING  AND  SERVICING  AGREEMENT  PROVIDES  THAT ANY
     ATTEMPTED OR PURPORTED TRANSFER IN VIOLATION OF THESE TRANSFER RESTRICTIONS
     WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN ANY PURPORTED TRANSFEREE.

     4. Neither the  Transferee nor anyone acting on its behalf has (a) offered,
transferred, pledged, sold or otherwise disposed of any Transferred Certificate,
any interest in a Transferred  Certificate or any other similar  security to any
person in any  manner,  (b)  solicited  any  offer to buy or accept a  transfer,
pledge or other  disposition of any Transferred  Certificate,  any interest in a
Transferred  Certificate  or any other  similar  security from any person in any
manner,  (c) otherwise  approached or negotiated with respect to any Transferred
Certificate,  any interest in a  Transferred  Certificate  or any other  similar
security  with any person in any manner,  (d) made any general  solicitation  by
means of  general  advertising  or in any other  manner,  or (e) taken any other
action,  that (in the case of any of the acts  described  in clauses (a) through
(d) above) would constitute a distribution of the Transferred Certificates under
the 1933 Act,  would render the  disposition of the  Transferred  Certificates a
violation  of  Section  5 of the 1933 Act or any state  securities  law or would
require registration or qualification of the Transferred  Certificates  pursuant
thereto.  The  Transferee  will  not  act,  nor has it  authorized  nor  will it
authorize any person to act, in any manner set forth in the  foregoing  sentence
with respect to the  Transferred  Certificates,  any interest in the Transferred
Certificates or any other similar security.

     5. The Transferee has been furnished with all information regarding (a) the
Depositor,  (b) the Transferred  Certificates  and  distributions  thereon,  (c)

                                     G-2B-3

<PAGE>
nature,  performance  and servicing of the Mortgage  Loans,  (d) the Pooling and
Servicing  Agreement  and the Trust  created  pursuant  thereto,  (e) any credit
enhancement mechanism associated with the Transferred Certificates,  and (f) all
related matters, that it has requested.

     6. The  Transferee  is an  "accredited  investor"  within  the  meaning  of
paragraph  (1),  (2), (3) or (7) of Rule 501 (a) under the 1933 Act or an entity
in  which  all the  equity  owners  come  within  such  paragraphs  and has such
knowledge and  experience in financial and business  matters as to be capable of
evaluating   the  merits  and  risks  of  an  investment   in  the   Transferred
Certificates; the Transferee has sought such accounting, legal and tax advice as
it has considered  necessary to make an informed  investment  decision;  and the
Transferee  is able to bear the  economic  risks of such an  investment  and can
afford a complete loss of such investment.

     7.  If  the  Transferee  proposes  that  the  Transferred  Certificates  be
registered  in the name of a nominee,  such  nominee has  completed  the Nominee
Acknowledgment below.

                                            Very truly yours,

                                            ------------------------------------
                                            Transferee)

                                            By:
                                                --------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------
                                            Date:
                                                  ------------------------------

                                     G-2B-4

<PAGE>
                             Nominee Acknowledgment
                             ----------------------

The  undersigned  hereby  acknowledges  and  agrees  that as to the  Transferred
Certificates  being registered in its name, the sole beneficial owner thereof is
and shall be the Transferee identified above, for whom the undersigned is acting
as nominee.

                                            ------------------------------------
                                            (Nominee)

                                            By:
                                                --------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------

                                     G-2B-5

<PAGE>
                                    EXHIBIT H

                    FORM OF TRANSFEREE REPRESENTATION LETTER
                        FOR ERISA RESTRICTED CERTIFICATES

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479-0113
Attention: Corporate Trust Services - BAFC 2006-7

         Re:      Banc of America Funding  Corporation,   Mortgage  Pass-Through
                  Certificates,  Series  2006-7,  Class ___, having  an  initial
                  aggregate Certificate Principal Balance as of October 30, 2006
                  of $_________

Ladies and Gentlemen:

     This  letter  is  delivered  to you in  connection  with  the  transfer  by
[_______________________]            (the            "Transferor")            to
[________________________________]   (the   "Transferee")   of   the   captioned
Certificates (the "Transferred  Certificates"),  pursuant to Section 6.02 of the
Pooling and Servicing Agreement (the "Pooling and Servicing  Agreement"),  dated
October 30, 2006, among Banc of America Funding Corporation, as Depositor, Wells
Fargo Bank, N.A., as Securities Administrator and Master Servicer, and U.S. Bank
National  Association,  as Trustee.  All  capitalized  terms used herein and not
otherwise  defined shall have the  respective  meanings set forth in the Pooling
and Servicing Agreement.

     The  Transferee  hereby  certifies,  represents  and  warrants  to you,  as
Securities Administrator, either that:

     (a) it is not, and is not acting on behalf of, an employee  benefit plan or
arrangement, including an individual retirement account, subject to the Employee
Retirement  Income  Security  Act of 1974,  as amended  ("ERISA"),  the Internal
Revenue Code of 1986,  as amended (the "Code"),  or any federal,  state or local
law ("Similar Law") which is similar to the prohibited transaction provisions of
ERISA  or the  Code or the  fiduciary  provisions  of  ERISA  (collectively,  a
"Plan"),  and it is not using the assets of any such Plan to effect the purchase
of the Transferred Certificates; or

     (b) with respect to any ERISA Restricted Certificate other than a Class CE,
Class P or Class 1-A-R Certificate, it is an insurance company and the source of
funds used to purchase the  Transferred  Certificates  is an "insurance  company
general  account" (as defined in Section V(e) of  Prohibited  Transaction  Class
Exemption 95-60 ("PTE 95-60"), 60 Fed. Reg. 35925 (July 12, 1995)),  there is no
Plan  subject  to ERISA or  Section  4975 of the Code with  respect to which the
amount of such general  account's  reserves and  liabilities for the contract(s)
held by or on behalf of such Plan and all other  such  Plans  maintained  by the
same employer (or affiliate  thereof as defined in Section V(a)(1) of PTE 95-60)
or by the same employee organization exceeds 10%

                                      H-1

<PAGE>

of the total of all reserves and  liabilities  of such general  account (as such
amounts  are  determined  under  Section  I(a)  of PTE  95-60)  at the  date  of
acquisition  and all Plans that have an  interest  in such  general  account are
Plans to which PTE 95-60 applies.

     Capitalized  terms used in and not otherwise  defined herein shall have the
meaning assigned to them in the Pooling and Servicing Agreement.

                                       Very truly yours,

                                       -----------------------------------------
                                       (Transferee)

                                       By:
                                           -------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------
                                       Date:
                                             -----------------------------------

                                      H-2

<PAGE>

                                    EXHIBIT I

                     FORM OF AFFIDAVIT REGARDING TRANSFER OF
                              RESIDUAL CERTIFICATE

                       Banc of America Funding Corporation
                       Mortgage Pass-Through Certificates,
                                  Series 2006-7

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  (the  "Transferee")  of the Class 1-A-R  Certificate  (the
"Residual  Certificate") issued pursuant to the Pooling and Servicing Agreement,
dated October 30, 2006, among Banc of America Funding Corporation, as Depositor,
Wells Fargo Bank, N.A., as Securities  Administrator  and Master  Servicer,  and
U.S.  Bank  National  Association,  as Trustee.  Capitalized  terms used but not
defined herein shall have the meanings  ascribed to such terms in the Agreement.
The Transferee  has authorized the  undersigned to make this affidavit on behalf
of the Transferee.

     2. The Transferee is, as of the date hereof, and will be, as of the date of
the transfer, a Permitted  Transferee.  The Transferee is acquiring the Residual
Certificate either (i) for its own account or (ii) as nominee,  trustee or agent
for another  Person who is a Permitted  Transferee  and has  attached  hereto an
affidavit from such Person in substantially the same form as this affidavit. The
Transferee has no knowledge that any such affidavit is false.

     3. The Transferee has been advised of, and understands  that (i) a tax will
be imposed on  Transfers  of the  Residual  Certificate  to Persons that are not
Permitted Transferees;  (ii) such tax will be imposed on the transferor,  or, if
such  transfer  is  through  an agent  (which  includes  a  broker,  nominee  or
middleman) for a Person that is not a Permitted  Transferee,  on the agent;  and
(iii) the Person otherwise liable for the tax shall be relieved of liability for
the tax if the subsequent  Transferee furnished to such Person an affidavit that
such  subsequent  Transferee  is a  Permitted  Transferee  and,  at the  time of
transfer,  such Person  does not have actual  knowledge  that the  affidavit  is
false.

     4. The Transferee has been advised of, and  understands  that a tax will be
imposed on a "pass-through entity" holding the Certificate if at any time during
the  taxable  year of the  pass-through  entity a Person that is not a Permitted
Transferee  is the record Holder of an interest in such entity.  The  Transferee
understands  that,  other than in the case of an  "electing  large  partnership"
under Section 775 of the Code,  such tax will not be imposed for any period with
respect to which the  record  Holder  furnishes  to the  pass-through  entity an

                                      I-1

<PAGE>
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.)

     5. The  Transferee  has  reviewed  the  provisions  of Section  6.02 of the
Agreement and  understands  the legal  consequences  of the  acquisition  of the
Residual  Certificate  including,   without  limitation,   the  restrictions  on
subsequent  Transfers  and the  provisions  regarding  voiding the  transfer and
mandatory sales. The Transferee  expressly agrees to be bound by and to abide by
the  provisions of Section 6.02 of the Agreement and the  restrictions  noted on
the face of the  Certificate.  The  Transferee  understands  and agrees that any
breach of any of the  representations  included herein shall render the transfer
to the Transferee contemplated hereby null and void.

     6. The  Transferee  agrees to require a transfer  affidavit  in the form of
this Affidavit  from any Person to whom the Transferee  attempts to transfer the
Residual  Certificate,  and in connection with any transfer by a Person for whom
the Transferee is acting as nominee,  trustee or agent,  and the Transferee will
not transfer the Residual  Certificate  or cause the Residual  Certificate to be
transferred  to  any  Person  that  the  Transferee  knows  is  not a  Permitted
Transferee.

     7. The Transferee  historically has paid its debts as they have become due,
and it intends to do so in the future.

     8. The  Transferee  does not have the intention to impede the assessment or
collection  of any tax legally  required to be paid with respect to the Residual
Certificate.

     9.  The  taxpayer   identification   number  of  the   Transferee  (or  the
Transferee's nominee, if applicable) is ___________.

     10.  The  Transferee  is a (i)  U.S.  Person  as  defined  in Code  Section
7701(a)(30)  or (ii)  (A) the  Transferee  holds  the  Residual  Certificate  in
connection  with the conduct of a trade or business within the United States and
has furnished the transferor and the Securities  Administrator with an effective
Internal  Revenue  Service  Form  W-8ECI  (or  successor  thereto)  or  (B)  the
Transferee has delivered to both the transferor and the Securities Administrator
an Opinion of Counsel  from a  nationally-recognized  tax  counsel to the effect
that such transfer is in accordance  with the  requirements  of the Code and the
regulations  promulgated  thereunder  and that  such  transfer  of the  Residual
Certificate will not be disregarded for federal income tax purposes..

     11.  The  Transferee  is  aware  that  the  Residual  Certificate  may be a
"noneconomic  residual  interest"  within the  meaning of  Treasury  Regulations
promulgated  pursuant  to the  Code and that  the  transferor  of a  noneconomic
residual  interest  will  remain  liable  for any taxes due with  respect to the
income on such residual interest,  unless no significant purpose of the transfer
was to impede the assessment or collection of tax.

                                      I-2
<PAGE>

     12. The Transferee  will not cause income from the Residual  Certificate to
be attributable to a foreign  permanent  establishment or fixed base, within the
meaning of an applicable  income tax treaty, of the Transferee or any other U.S.
Person.

     13. If the Transferee is purchasing the Residual  Certificate in a transfer
intended to meet the safe harbor  provisions  of Treasury  Regulations  Sections
1.860E-1(c), the Transferee has executed and attached Attachment A hereto.

     14.  The  Transferee  is not  an  employee  benefit  plan  or  arrangement,
including an individual  retirement  account,  subject to ERISA, the Code or any
federal,  state or local  law which is  similar  to the  prohibited  transaction
provisions  of ERISA or the Code or the fiduciary  provisions of ERISA,  and the
Transferee  is not  acting on  behalf  of, or using  assets  of,  such a plan or
arrangement.

     15.  The  Transferee  understands  that it may incur tax  liabilities  with
respect to the Residual Certificate in excess of cash flows generated thereby.

     16.  The  Transferee  intends  to pay taxes  associated  with  holding  the
Residual Certificate as such taxes become due.

                                      * * *

                                      I-3

<PAGE>

     IN WITNESS  WHEREOF,  the  Transferee  has  caused  this  instrument  to be
executed on its behalf,  pursuant to authority of its Board of Directors, by its
duly authorized officer this _____ day of ________________, ____.

                                     -------------------------------------------
                                     Print Name of Transferee

                                     By:
                                         ---------------------------------------
                                          Name:
                                          Title:

     Personally       appeared       before       me       the       above-named
______________________________,  known or proved to me to be the same person who
executed the foregoing instrument and to be the  _______________________  of the
Transferee,  and acknowledged that he executed the same as his free act and deed
and the free act and deed of the Transferee.

     Subscribed  and sworn before me this _____ day of  _______________________,
____

                                           -------------------------------------
                                                      NOTARY PUBLIC

                                           My Commission expires the ____ day of
                                           ______________, ____

                                      I-4

<PAGE>
                                  ATTACHMENT A

                                       to

      AFFIDAVIT PURSUANT TO SECTION 860E(e)(4) OF THE INTERNAL REVENUE CODE
                OF 1986, AS AMENDED, AND FOR NON-ERISA INVESTORS

Check the appropriate box:

[  ]      The  consideration  paid to the  Transferee  to acquire  the  Residual
          Certificate  equals or exceeds the excess of (a) the present  value of
          the  anticipated  tax  liabilities  over (b) the present  value of the
          anticipated savings associated with holding such Residual Certificate,
          in each case calculated in accordance with U.S.  Treasury  Regulations
          Sections  1.860E-1(c)(7)  and (8),  computing  present  values using a
          discount  rate equal to the  short-term  Federal  rate  prescribed  by
          Section  1274(d) of the Code and the  compounding  period  used by the
          Transferee.

                                       OR
                                       --

[  ]      The transfer of the Residual  Certificate  complies with U.S. Treasury
          Regulations Sections 1.860E-1(c)(5) and (6) and, accordingly:

         (i)      the Transferee is  an "eligible  corporation," as  defined  in
                  U.S. Treasury  Regulations  Section  1.860E-1(c)(6)(i), as  to
                  which income  from Residual  Certificate will only be taxed in
                  the United States;

         (ii)     at  the  time  of  the  transfer,  and  at  the close  of  the
                  Transferee's two  fiscal  years  preceding  the  year  of  the
                  transfer,  the  Transferee  had  gross  assets  for  financial
                  reporting purposes  (excluding  any  obligation  of  a  person
                  related to the Transferee within the meaning of U.S.  Treasury
                  Regulations  Section 1.860E-1(c)(6)(ii))  in   excess of  $100
                  million and net assets in excess of $10 million;

         (iii)    the Transferee will transfer the Residual Certificate only  to
                  another "eligible  corporation," as  defined in U.S.  Treasury
                  Regulations  Section 1.860E-1(c)(6)(i),  in a transaction that
                  satisfies the requirements of Sections 1.860E-1(c)(4)(i), (ii)
                  and (iii)  and  Section 1.860E-1(c)(5)  of  the U.S.  Treasury
                  Regulations;

         (iv)     the Transferee has determined the consideration paid to  it to
                  acquire the Residual Certificate  based on  reasonable  market
                  assumptions  (including,  but  not  limited  to, borrowing and
                  investment rates, prepayment and loss assumptions, expense and
                  reinvestment assumptions, tax rates and other factors specific
                  to the Transferee) that it has  determined in good faith;  and

                                      I-5
<PAGE>
         (v)      in the event  of any  transfer of the  Residual Certificate by
                  the Transferee, the Transferee will require its  transferee to
                  complete a representation in  the form of this Attachment A as
                  a condition  of  such  transferee's purchase of  the  Residual
                  Certificate.

                                      I-6

<PAGE>

                                    EXHIBIT J
                           LIST OF RECORDATION STATES

                                     Florida
                                    Maryland

                                      J-1

<PAGE>

                                    EXHIBIT K

           FORM OF INITIAL CERTIFICATION OF THE [TRUSTEE] [CUSTODIAN]

                                October 30, 2006

Banc of America Funding Corporation
214 North Tryon Street
Charlotte, North Carolina  28255

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 20145
Attention:  Corporate Trust Services - BAFC 2006-7

        Re:   The Pooling and  Servicing Agreement, dated  October 30, 2006 (the
              "Pooling and Servicing Agreement"),  among  the  Depositor,  Wells
              Fargo Bank, N.A., as securities administrator and master servicer,
              and U.S. Bank National Association, as trustee.

Ladies and Gentlemen:

     In accordance  with the provisions of Section 2.02 of the  above-referenced
Pooling and Servicing  Agreement  (the "Pooling and Servicing  Agreement"),  the
undersigned,  as  [Trustee]  [Custodian],   hereby  certifies  that,  except  as
specified  in any  list of  exceptions  attached  hereto,  it has  received  the
original  Mortgage  Note  relating to each of the  Mortgage  Loans listed on the
Mortgage Loan Schedule.

     The  [Trustee]  [Custodian]  has  made no  independent  examination  of any
documents  contained  in each  Mortgage  File  beyond  the  review  specifically
required in the Pooling and Servicing  Agreement in connection with this Initial
Certification. The [Trustee] [Custodian] makes no representations as to: (i) the
validity, legality, sufficiency, enforceability, recordability or genuineness of
any of the  documents  contained  in each  Mortgage  File or any of the Mortgage
Loans  identified  in the  Mortgage  Loan  Schedule or (ii) the  collectibility,
insurability, effectiveness or suitability of any such Mortgage Loan.

                                      K-1

<PAGE>

     Capitalized  terms used but not  defined  herein  shall  have the  meanings
ascribed to such terms in the Pooling and Servicing Agreement.

                                         [U.S. BANK NATIONAL ASSOCIATION,
                                         as Trustee]

                                         [___________________________________,
                                         as Custodian]

                                         By:
                                             -----------------------------------
                                         Name:
                                               ---------------------------------
                                         Title:
                                                --------------------------------

                                      K-2

<PAGE>

                                    EXHIBIT L

            FORM OF FINAL CERTIFICATION OF THE [TRUSTEE] [CUSTODIAN]

                              [__________ __, ____]

Banc of America Funding Corporation
214 North Tryon Street
Charlotte, North Carolina  28255

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 20145
Attention:  Corporate Trust Services - BAFC 2006-7

         Re:    The Pooling and Servicing Agreement, dated October 30, 2006 (the
                "Pooling and Servicing Agreement"), among the  Depositor,  Wells
                Fargo  Bank,  N.A.,  as   securities  administrator  and  master
                servicer,  and  U.S.  Bank  National  Association,  as  trustee.

Ladies and Gentlemen:

     In accordance  with the provisions of Section 2.02 of the  above-referenced
Pooling and Servicing  Agreement  (the "Pooling and Servicing  Agreement"),  the
undersigned,  as  [Trustee]  [Custodian],  hereby  certifies  that,  as to  each
Mortgage Loan listed in the Mortgage Loan  Schedule,  except as may be specified
in any list of exceptions  attached  hereto,  such Mortgage File contains all of
the items  required to be delivered  pursuant to Section  2.01(b) of the Pooling
and Servicing Agreement.

     The  [Trustee]  [Custodian]  has  made no  independent  examination  of any
documents  contained  in each  Mortgage  File  beyond  the  review  specifically
required in the Pooling and Servicing  Agreement in  connection  with this Final
Certification. The [Trustee] [Custodian] makes no representations as to: (i) the
validity, legality, sufficiency, enforceability, recordability or genuineness of
any of the  documents  contained  in each  Mortgage  File or any of the Mortgage
Loans  identified  in the  Mortgage  Loan  Schedule or (ii) the  collectibility,
insurability, effectiveness or suitability of any such Mortgage Loan.

                                      L-1

<PAGE>

     Capitalized  terms used but not  defined  herein  shall  have the  meanings
ascribed to such terms in the Pooling and Servicing Agreement.

                                            [U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee]

                                            [_________________________________,
                                            as Custodian]

                                            By:
                                                --------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------

                                       L-2

<PAGE>
                                    EXHIBIT M

                      Form of Sarbanes-Oxley Certification

                       Banc of America Funding Corporation
                       Mortgage Pass-Through Certificates,
                                  Series 2006-7

     I,  [________],  a  [_____________]  of Wells Fargo Bank, N.A. (the "Master
Servicer"), certify that:

1.   I have  reviewed  this  report on  Form  10-K and  all reports on Form 10-D
     required  to be filed in respect of the  period  covered by this  report on
     Form 10-K of the Banc of America  Funding  2006-7 Trust (the  "Exchange Act
     Periodic Reports");

2.   Based on  my  knowledge,  the  Exchange Act  Periodic  Reports,  taken as a
     whole,  do not contain any untrue  statement of a material  fact or omit to
     state a material fact  necessary to make the  statements  made, in light of
     the  circumstances  under which such  statements  were made, not misleading
     with respect to the period covered by this report;

3.    Based on my  knowledge,  all  of  the  distribution,  servicing  and other
     information  required to be provided under Form 10-D for the period covered
     by this report is included in the Exchange Act Periodic Reports;

4.   I am responsible for reviewing  the activities  performed by  the servicers
     and based on my knowledge and the compliance reviews conducted in preparing
     the servicer compliance  statements required in this report under Item 1123
     of  Regulation  AB, and except as  disclosed  in the  Exchange Act Periodic
     Reports,  the servicers have fulfilled their  obligations under the pooling
     and  servicing  agreement,  dated  October 30, 2006,  among Banc of America
     Funding  Corporation,  as  depositor,  Wells  Fargo Bank,  N.A.,  as master
     servicer and securities administrator,  and U.S. Bank National Association,
     as trustee; and

5.   All of  the  reports   on  assessment  of  compliance  with  the  servicing
     criteria for asset-backed  securities and their related attestation reports
     on  assessment  of  compliance  with  servicing  criteria for  asset-backed
     securities  required to be included in this report in accordance  with Item
     1122 of  Regulation  AB and Exchange Act Rules 13a-18 and 15d- 18 have been
     included as an exhibit to this  report,  except as  otherwise  disclosed in
     this report.  Any material  instances  of  noncompliance  described in such
     reports have been disclosed in this report on Form 10-K.

In giving the  certifications  above,  I have  reasonably  relied on information
provided to me by the following unaffiliated parties: Bank of America,  National
Association,  Cenlar  FSB,  Countrywide  Home  Loans  Servicing  LP,  GreenPoint
Mortgage Funding, Inc., IndyMac Bank, F.S.B., Opteum Financial Services, LLC and
U.S. Bank National Association.
                              [_________], 20[__]

                                      M-1
<PAGE>
                                    EXHIBIT N

                           Relevant Servicing Criteria

     For  purposes of this  Exhibit N, "ST" shall  refer to  SunTrust  and "WFB"
shall refer to Wells Fargo Bank, each in its capacity as a Servicer.

<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------------------
                                 Servicing Criteria                                        Parties Responsible
-----------------------------------------------------------------------------------------------------------------
       Reference                                  Criteria
-----------------------------------------------------------------------------------------------------------------
                                      General Servicing Considerations
-----------------------------------------------------------------------------------------------------------------
<S>    <C>
1122(d)(1)(i)          Policies and procedures are instituted to monitor any         Master Servicer,
                       performance or other triggers and events of default in        Securities Administrator,
                       accordance with the transaction agreements.                   BANA, ST and WFB
-----------------------------------------------------------------------------------------------------------------
1122(d)(1)(ii)         If any material servicing activities are outsourced to        Master Servicer,
                       third parties, policies and procedures are instituted to      Securities Administrator,
                       monitor the third party's performance and compliance          BANA, ST and WFB
                       with such servicing activities.
-----------------------------------------------------------------------------------------------------------------
1122(d)(1)(iii)        Any requirements in the transaction agreements to             Not applicable
                       maintain a back-up servicer for the mortgage loans are
                       maintained.
-----------------------------------------------------------------------------------------------------------------
1122(d)(1)(iv)         A fidelity bond and errors and omissions policy is in         BANA, ST and WFB
                       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 terms of the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
                                     Cash Collection and Administration
-----------------------------------------------------------------------------------------------------------------
1122(d)(2)(i)          Payments on mortgage loans are deposited into the             Master Servicer,
                       appropriate custodial bank accounts and related bank          Securities Administrator,
                       clearing accounts no more than two business days following    BANA, ST and  WFB
                       receipt, or such other number of days specified in the
                       transaction agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(2)(ii)         Disbursements made via wire transfer on behalf of an          Master Servicer,
                       obligor or to an investor are made only by authorized         Securities Administrator,
                       personnel.                                                    BANA, ST and WFB
-----------------------------------------------------------------------------------------------------------------
1122(d)(2)(iii)        Advances of funds or guarantees regarding collections,        Master Servicer,
                       cash flows or distributions, and any interest or other        Securities Administrator,
                       fees charged for such advances, are made, reviewed and        BANA, ST and WFB
                       approved as specified in the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      N-1
<PAGE>

<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------------------
                                 Servicing Criteria                                        Parties Responsible
-----------------------------------------------------------------------------------------------------------------
       Reference                                  Criteria
-----------------------------------------------------------------------------------------------------------------
                                      General Servicing Considerations
-----------------------------------------------------------------------------------------------------------------
<S>    <C>
1122(d)(2)(iv)         The related accounts for the transaction, such as cash        Master Servicer,
                       reserve accounts or accounts established as a form of         Securities Administrator,
                       overcollateralization, are separately maintained (e.g.,       BANA, ST and WFB
                       with respect to commingling of cash) as set forth in the
                       transaction agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(2)(v)          Each custodial account is maintained at a federally           Master Servicer,
                       insured depository institution as set forth in the            Securities Administrator,
                       transaction agreements. For purposes of this criterion,       BANA, ST and WFB
                       "federally insured depository institution" with respect
                       to a foreign financial institution means a foreign
                       financial institution that meets the requirements of
                       Rule 13k-1(b)(1) of the Securities Exchange Act.
-----------------------------------------------------------------------------------------------------------------
1122(d)(2)(vi)         Unissued checks are safeguarded so as to prevent              Master Servicer,
                       unauthorized access.                                          Securities Administrator,
                                                                                     BANA, ST and WFB
-----------------------------------------------------------------------------------------------------------------
1122(d)(2)(vii)        Reconciliations are prepared on a monthly basis for all       Master Servicer,
                       asset-backed securities related bank accounts, including      Securities Administrator,
                       custodial accounts and related bank clearing accounts.        BANA, ST and WFB
                       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        Master Servicer,
                       the Commission, are maintained in accordance with the         Securities Administrator,
                       transaction agreements and applicable Commission              BANA, ST and WFB
                       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        Master Servicer,
                       accordance with timeframes, distribution priority and         Securities Administrator,
                       other terms set forth in the transaction agreements.          BANA, ST and WFB
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      N-2
<PAGE>

<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------------------
                                 Servicing Criteria                                        Parties Responsible
-----------------------------------------------------------------------------------------------------------------
       Reference                                  Criteria
-----------------------------------------------------------------------------------------------------------------
                                      General Servicing Considerations
-----------------------------------------------------------------------------------------------------------------
<S>    <C>
1122(d)(3)(iii)        Disbursements made to an investor are posted within two       Master Servicer,
                       business days to the Servicer's investor records, or          Securities Administrator,
                       such other number of days specified in the transaction        BANA, ST and WFB
                       agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(3)(iv)         Amounts remitted to investors per the investor reports        Master Servicer,
                       agree with cancelled checks, or other form of payment,        Securities Administrator,
                       or custodial bank statements.                                 BANA, ST and WFB
-----------------------------------------------------------------------------------------------------------------
                                         Pool Asset Administration
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(i)          Collateral or security on mortgage loans is maintained as     Custodian, BANA, ST
                       required by the transaction agreements or related             and WFB
                       mortgage loan documents.
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(ii)         Mortgage loan and related documents are safeguarded as        Custodian, BANA, ST
                       required by the transaction agreements                        and WFB
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(iii)        Any additions, removals or substitutions to the asset         BANA, ST and WFB
                       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       BANA, ST and WFB
                       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     BANA, ST and WFB
                       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             BANA, ST and WFB
                       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        BANA, ST and WFB
                       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>

                                      N-3
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                 Servicing Criteria                                        Parties Responsible
-----------------------------------------------------------------------------------------------------------------
       Reference                                  Criteria
-----------------------------------------------------------------------------------------------------------------
                                      General Servicing Considerations
-----------------------------------------------------------------------------------------------------------------
<S>    <C>
1122(d)(4)(viii)       Records documenting collection efforts are maintained         BANA, ST and WFB
                       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          BANA, ST and WFB
                       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     BANA, ST and WFB
                       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         BANA, ST and WFB
                       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     BANA, ST and WFB
                       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.
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(xiii)       Disbursements made on behalf of an obligor are posted         BANA, ST and WFB
                       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)(xiv)        Delinquencies, charge-offs and uncollectible accounts         Master Servicer,
                       are recognized and recorded in accordance with the            Securities Administrator,
                       transaction agreements.                                       BANA, ST and WFB
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      N-4
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                 Servicing Criteria                                        Parties Responsible
-----------------------------------------------------------------------------------------------------------------
       Reference                                  Criteria
-----------------------------------------------------------------------------------------------------------------
                                      General Servicing Considerations
-----------------------------------------------------------------------------------------------------------------
<S>    <C>
1122(d)(4)(xv)         Any external enhancement or other support, identified in      Master Servicer and
                       Item 1114(a)(1) through (3) or Item 1115 of Regulation        Securities Administrator
                       AB, is maintained as set forth in the transaction
                       agreements.
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      N-5
<PAGE>
                                    EXHIBIT O

                         Additional Form 10-D Disclosure

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------
                                         ADDITIONAL FORM 10-D DISCLOSURE

------------------------------------------------------------------------------------------------------------
                    Item on Form 10-D                                     Party Responsible
------------------------------------------------------------------------------------------------------------
<S>    <C>
  Item 1: Distribution and Pool                                             Master Servicer
        Performance Information                                          Securities Administrator
                                                                             Depositor
Any  information  required by 1121 which is NOT
included on the Monthly Statement
------------------------------------------------------------------------------------------------------------
                Item 2: Legal Proceedings

Any legal proceeding pending against the
following entities or their respective property,
that is material to Certificateholders, including
any proceeding sknown to be contemplated by
governmental authorities:
------------------------------------------------------------------------------------------------------------
o Issuing Entity (Trust Fund)                             Trustee, Master Servicer, Securities Administrator
                                                                            and Depositor
------------------------------------------------------------------------------------------------------------
o Sponsor (Seller)                                         Seller (if a party to the Pooling and Servicing
                                                                     Agreement) or Depositor
------------------------------------------------------------------------------------------------------------
o Depositor                                                                  Depositor
------------------------------------------------------------------------------------------------------------
o Trustee                                                                    Trustee
------------------------------------------------------------------------------------------------------------
o Securities Administrator                                            Securities Administrator
------------------------------------------------------------------------------------------------------------
o Master Servicer                                                          Master Servicer
------------------------------------------------------------------------------------------------------------
o Custodian                                                                   Custodian
------------------------------------------------------------------------------------------------------------
o 1110(b) Originator                                                          Depositor
------------------------------------------------------------------------------------------------------------
o Any 1108(a)(2) Servicer (other than the Master                           Master Servicer
Servicer or Securities Administrator)
------------------------------------------------------------------------------------------------------------
o Any other party contemplated by 1100(d)(1)                                 Depositor
------------------------------------------------------------------------------------------------------------
     Item 3: Sale of Securities and Use of Proceeds                          Depositor

Information from Item 2(a) of Part II of Form 10-Q:

With respect to any sale of securities by the
sponsor, depositor or issuing entity, that are
backed by the same asset pool or are otherwise
issued by the issuing entity, whether or not
registered, provide the sales and use of proceeds
information in Item 701 of Regulation S-K.
Pricing information can be omitted if securities
were not registered.
------------------------------------------------------------------------------------------------------------
</TABLE>

                                      O-1
<PAGE>

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------
                                       ADDITIONAL FORM 10-D DISCLOSURE

------------------------------------------------------------------------------------------------------------
                    Item on Form 10-D                                     Party Responsible
------------------------------------------------------------------------------------------------------------
<S>    <C>
         Item 4: Defaults Upon Senior Securities                      Securities Administrator

Information from Item 3 of Part II of Form 10-Q:

Report the occurrence of any Event of Default
(after expiration of any grace period and
provision of any required notice)
------------------------------------------------------------------------------------------------------------
   Item 5: Submission of Matters to a Vote                            Securities Administrator
             of Security Holders

Information from Item 4 of Part II of Form 10-Q
------------------------------------------------------------------------------------------------------------
       Item 6: Significant Obligors of Pool Assets                            Depositor

Item 1112(b) - Significant Obligor Financial
Information*
------------------------------------------------------------------------------------------------------------
*This information need only be reported on the
Form 10-D for the distribution period in which
updated information is required pursuant to the Item.
------------------------------------------------------------------------------------------------------------
  Item 7: Significant Enhancement
          Provider Information

Item 1114(b)(2) - Credit Enhancement Provider
Financial Information*
------------------------------------------------------------------------------------------------------------
o Determining applicable disclosure threshold                         Securities Administrator
------------------------------------------------------------------------------------------------------------
o Requesting required financial information or                        Securities Administrator
effecting incorporation by reference
------------------------------------------------------------------------------------------------------------
    Item 1115(b) - Derivative Counterparty
                   Financial Information*
------------------------------------------------------------------------------------------------------------
o Determining current maximum probable exposure                               Depositor
------------------------------------------------------------------------------------------------------------
o Determining current significance percentage                         Securities Administrator
------------------------------------------------------------------------------------------------------------
o Requesting required financial  information or effecting             Securities Administrator
incorporation by reference
------------------------------------------------------------------------------------------------------------
*This information need only be reported on the
Form 10-D for the distribution period in which
updated information is required pursuant to the
Items.
------------------------------------------------------------------------------------------------------------
                Item 8: Other Information                        Any party responsible for the applicable
                                                                          Form 8-K Disclosure item
Disclose any information  required to be reported
on Form 8-K during  the  period  covered by the
Form 10-D but not reported
------------------------------------------------------------------------------------------------------------
                    Item 9: Exhibits
------------------------------------------------------------------------------------------------------------
         Monthly Statement to Certificateholders                      Securities Administrator
------------------------------------------------------------------------------------------------------------
Exhibits required by Item 601 of Regulation S-K,                           Depositor
            such as material agreements
------------------------------------------------------------------------------------------------------------
</TABLE>

                                      O-2
<PAGE>
                                    EXHIBIT P

                         Additional Form 10-K Disclosure

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
                                         ADDITIONAL FORM 10-K DISCLOSURE
--------------------------------------------------------------------------------------------------------------
                    Item on Form 10-K                                     Party Responsible
--------------------------------------------------------------------------------------------------------------
<S> <C>
           Item 1B: Unresolved Staff Comments                                Depositor

--------------------------------------------------------------------------------------------------------------
               Item 9B: Other Information                             Any party responsible for disclosure
Disclose any information required to be reported                              items on Form 8-K
on Form 8-K during the fourth quarter covered
by the Form 10-K but not reported
--------------------------------------------------------------------------------------------------------------
    Item 15: Exhibits, Financial Statement                             Securities Administrator
                     Schedules                                               Depositor
--------------------------------------------------------------------------------------------------------------
Reg AB Item 1112(b): Significant
        Obligors of Pool Assets
--------------------------------------------------------------------------------------------------------------
Significant Obligor Financial Information*                                   Depositor
--------------------------------------------------------------------------------------------------------------
*This information need only be reported on the
Form 10-D for the distribution period in which
updated information is required pursuant to the
Item.
--------------------------------------------------------------------------------------------------------------
   Reg AB Item 1114(b)(2): Credit
    Enhancement Provider Financial
              Information
--------------------------------------------------------------------------------------------------------------
o Determining applicable disclosure threshold                          Securities Administrator
--------------------------------------------------------------------------------------------------------------
o Requesting required financial  information or                        Securities Administrator
effecting incorporation by reference
--------------------------------------------------------------------------------------------------------------
*This information need only be reported on the
Form 10-D for the distribution period in which
updated information is required pursuant to the
Items.
--------------------------------------------------------------------------------------------------------------
 Reg AB Item 1115(b): Derivative
 Counterparty Financial Information
--------------------------------------------------------------------------------------------------------------
o Determining current maximum probable                                      Depositor
exposure
--------------------------------------------------------------------------------------------------------------
o Determining current significance percentage                        Securities Administrator
--------------------------------------------------------------------------------------------------------------
o Requesting required financial information or                       Securities Administrator
effecting incorporation by reference
--------------------------------------------------------------------------------------------------------------
*This information need only be reported on the
Form 10-D for the distribution period in which
updated information is required pursuant to the
Items.
--------------------------------------------------------------------------------------------------------------
</TABLE>

                                      P-1
<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
                                         ADDITIONAL FORM 10-K DISCLOSURE
--------------------------------------------------------------------------------------------------------------
                    Item on Form 10-K                                     Party Responsible
--------------------------------------------------------------------------------------------------------------
<S> <C>
          Reg AB Item 1117: Legal Proceedings
Any legal proceeding pending against the
following entities or their respective property,
that is material to Certificateholders, including
any proceedings known to be contemplated by
governmental authorities:
--------------------------------------------------------------------------------------------------------------
o Issuing Entity (Trust Fund)                              Trustee, Master Servicer, Securities Administrator
                                                                          and Depositor
--------------------------------------------------------------------------------------------------------------
o Sponsor (Seller)                                         Seller (if a party to the Pooling and Servicing
                                                              Agreement) or Depositor
--------------------------------------------------------------------------------------------------------------
o Depositor                                                                  Depositor
--------------------------------------------------------------------------------------------------------------
o Trustee                                                                     Trustee
--------------------------------------------------------------------------------------------------------------
o Securities Administrator                                           Securities Administrator
--------------------------------------------------------------------------------------------------------------
o Master Servicer                                                         Master Servicer
--------------------------------------------------------------------------------------------------------------
o Custodian                                                                  Custodian
--------------------------------------------------------------------------------------------------------------
o 1110(b) Originator                                                         Depositor
--------------------------------------------------------------------------------------------------------------
o Any 1108(a)(2) Servicer (other than the Master                          Master Servicer
Servicer or Securities Administrator)
--------------------------------------------------------------------------------------------------------------
o Any other party contemplated by 1100(d)(1)                                 Depositor
--------------------------------------------------------------------------------------------------------------
    Reg AB Item 1119: Affiliations and
               Relationships
--------------------------------------------------------------------------------------------------------------
Whether (a) the Sponsor (Seller), Depositor or                         Depositor as to (a)
Issuing Entity is an affiliate of the following                        Sponsor/Seller as to (a)
parties, and (b) to the extent known and material,
any of the following parties are affiliated with
one another:
--------------------------------------------------------------------------------------------------------------
o Master Servicer                                                         Master Servicer
--------------------------------------------------------------------------------------------------------------
o Securities Administrator                                           Securities Administrator
--------------------------------------------------------------------------------------------------------------
o Trustee                                                                     Trustee
--------------------------------------------------------------------------------------------------------------
o Any other 1108(a)(3) servicer                                           Master Servicer
--------------------------------------------------------------------------------------------------------------
o Any 1110 Originator                                                    Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
o Any 1112(b) Significant Obligor                                        Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
o Any 1114 Credit Enhancement Provider                                   Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
o Any 1115 Derivate Counterparty Provider                                Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
o Any other 1101(d)(1) material party                                    Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
Whether there are any "outside the ordinary course                     Depositor as to (a)
business arrangements" other than would be obtained in              Sponsor/Seller as to (a)
an arm's length transaction between (a) the Sponsor
(Seller), Depositor or Issuing Entity on the one hand,
and (b) any of the following parties (or their
affiliates) on the other hand, that exist currently or
within the past two years and that are material to a
Certificateholder's understanding of the
Certificates:
--------------------------------------------------------------------------------------------------------------
o Master Servicer                                                         Master Servicer
--------------------------------------------------------------------------------------------------------------
o Securities Administrator                                           Securities Administrator
--------------------------------------------------------------------------------------------------------------
o Trustee                                                                     Trustee
--------------------------------------------------------------------------------------------------------------
o Any other 1108(a)(3) servicer                                           Master Servicer
--------------------------------------------------------------------------------------------------------------
o Any 1110 Originator                                                    Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
</TABLE>
                                      P-2
<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
                                         ADDITIONAL FORM 10-K DISCLOSURE
--------------------------------------------------------------------------------------------------------------
                    Item on Form 10-K                                     Party Responsible
--------------------------------------------------------------------------------------------------------------
<S> <C>
o Any 1112(b) Significant Obligor                                        Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
o Any 1114 Credit Enhancement Provider                                   Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
o Any 1115 Derivate Counterparty Provider                                Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
o Any other 1101(d)(1) material party                                    Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
Whether there are any specific relationships                             Depositor as to (a)
involving the transaction or the pool assets                           Sponsor/Seller as to (a)
between (a) the Sponsor (Seller), Depositor or
Issuing Entity on the one hand, and (b) any of the
following parties (or their affiliates) on the other
hand, that exist currently or within the past two
years and that are material:
-------------------------------------------------------------------------------------------------------------
o Master Servicer                                                         Master Servicer
--------------------------------------------------------------------------------------------------------------
o Securities Administrator                                           Securities Administrator
--------------------------------------------------------------------------------------------------------------
o Trustee                                                                     Trustee
--------------------------------------------------------------------------------------------------------------
o Any other 1108(a)(3) servicer                                           Master Servicer
--------------------------------------------------------------------------------------------------------------
o Any 1110 Originator                                                    Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
o Any 1112(b) Significant Obligor                                        Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
o Any 1114 Credit Enhancement Provider                                   Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
o Any 1115 Derivate Counterparty Provider                                Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
o Any other 1101(d)(1) material party                                    Depositor/Sponsor
--------------------------------------------------------------------------------------------------------------
</TABLE>

                                      P-3

<PAGE>

                                    EXHIBIT Q

                               Form 8-K Disclosure

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------
                                         FORM 8-K DISCLOSURE INFORMATION
----------------------------------------------------------------------------------------------------------------
                    Item on Form 8-K                                       Party Responsible
----------------------------------------------------------------------------------------------------------------
<S>    <C>
  Item 1.01- Entry into a Material Definitive             All parties, but only to the extent they are a party
                    Agreement

Disclosure is required regarding entry into or
amendment of any definitive agreement that is
material to the securitization, even if depositor is
not a party.

Examples: servicing agreement, custodial
agreement.

Note:  disclosure not required as to definitive
agreements that are fully disclosed in the
prospectus
----------------------------------------------------------------------------------------------------------------
Item 1.02- Termination of a Material                       All parties, but only to the extent they are a party
         Definitive Agreement

Disclosure is required regarding termination of
any definitive agreement that is material to the
securitization (other than expiration in
accordance with its terms), even if depositor is
not a party.

Examples: servicing agreement, custodial
agreement.
----------------------------------------------------------------------------------------------------------------
          Item 1.03- Bankruptcy or Receivership                                Depositor

Disclosure is required regarding the bankruptcy
or receivership, with respect to any of the
following:

----------------------------------------------------------------------------------------------------------------
o Sponsor (Seller)                                                    Depositor/Sponsor (Seller)
----------------------------------------------------------------------------------------------------------------
o Depositor                                                                    Depositor
----------------------------------------------------------------------------------------------------------------
o Master Servicer                                                           Master Servicer
----------------------------------------------------------------------------------------------------------------
o Affiliated Servicer                                                       Master Servicer
----------------------------------------------------------------------------------------------------------------
o  Other  Servicer  servicing  20% or  more  of the                         Master Servicer
pool assets at the time of the report
----------------------------------------------------------------------------------------------------------------
o Other material servicers                                                  Master Servicer
----------------------------------------------------------------------------------------------------------------
o Trustee                                                                       Trustee
----------------------------------------------------------------------------------------------------------------
o Securities Administrator                                             Securities Administrator
----------------------------------------------------------------------------------------------------------------
o Significant Obligor                                                          Depositor
----------------------------------------------------------------------------------------------------------------
o Credit Enhancer (10% or more)                                                Depositor
----------------------------------------------------------------------------------------------------------------
o Derivative Counterparty                                                      Depositor
----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      Q-1
<PAGE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
                                         FORM 8-K DISCLOSURE INFORMATION
----------------------------------------------------------------------------------------------------------------
                    Item on Form 8-K                                       Party Responsible
----------------------------------------------------------------------------------------------------------------
<S>    <C>

o Custodian                                                                    Custodian
----------------------------------------------------------------------------------------------------------------
Item 2.04- Triggering Events that                                              Depositor
Accelerate or Increase a Direct Financial                                  Master Servicer
Obligation or an Obligation under an Off-                              Securities Administrator
    Balance Sheet Arrangement

Includes an early amortization, performance
trigger or other event, including event of default,
that would materially alter the payment
priority/distribution of cash flows/amortization
schedule.

Disclosure will be made of events other than
waterfall triggers which are disclosed in the
monthly statements to the certificateholders.
----------------------------------------------------------------------------------------------------------------
 Item 3.03- Material Modification to Rights                               Securities Administrator
                 of Security Holders                                            Trustee
                                                                               Depositor
Disclosure is required of any material                     (with respect to each, only to the extent they are a
modification to documents defining the rights of                                party)
Certificateholders, including the Pooling and
Servicing Agreement.
----------------------------------------------------------------------------------------------------------------
  Item 5.03- Amendments of Articles of                                         Depositor
    Incorporation or Bylaws; Change of Fiscal
                  Year
Disclosure is required of any amendment "to the
governing documents of the issuing entity".
----------------------------------------------------------------------------------------------------------------
 Item 6.01- ABS Informational and                                              Depositor
          Computational Material
----------------------------------------------------------------------------------------------------------------
Item 6.02- Change of Servicer or                                        Master Servicer/Securities
     Securities Administrator                                            Administrator/Depositor

Requires disclosure of any removal, replacement,
substitution or addition of any master servicer,
affiliated servicer, other servicer servicing 10%
or more of pool assets at time of report, other
material servicers or trustee.
----------------------------------------------------------------------------------------------------------------
Reg AB disclosure about any new master                                    Master Servicer
servicer is also required.
----------------------------------------------------------------------------------------------------------------
Reg AB disclosure about any new Trustee is also                              Trustee
required.
----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      Q-2

<PAGE>

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------
                                         FORM 8-K DISCLOSURE INFORMATION
----------------------------------------------------------------------------------------------------------------
                    Item on Form 8-K                                       Party Responsible
----------------------------------------------------------------------------------------------------------------
<S>    <C>
   Item 6.03- Change in Credit Enhancement                         Depositor/Securities Administrator
               or External Support

Covers termination of any enhancement in
manner other than by its terms, the addition of an
enhancement, or a material change in the
enhancement provided. Applies to external
credit enhancements as well as derivatives.
----------------------------------------------------------------------------------------------------------------
Reg AB disclosure about any new enhancement                                    Depositor
provider is also required.
----------------------------------------------------------------------------------------------------------------
   Item 6.04- Failure to Make a Required                              Securities Administrator
                 Distribution
----------------------------------------------------------------------------------------------------------------
      Item 6.05- Securities Act Updating                                       Depositor
                    Disclosure

If any material pool characteristic differs by 5%
or more at the time of issuance of the securities
from the description in the final prospectus,
provide updated Reg AB disclosure about the
actual asset pool.
----------------------------------------------------------------------------------------------------------------
If there are any new servicers or originators                                  Depositor
required to be disclosed under Regulation AB as
a result of the foregoing, provide the information
called for in Items 1108 and 1110 respectively.
----------------------------------------------------------------------------------------------------------------
              Item 7.01- Reg FD Disclosure                                     Depositor
----------------------------------------------------------------------------------------------------------------
                 Item 8.01- Other Events                                       Depositor

   Any event, with respect to which information is
    not otherwise called for in Form 8-K, that the
         registrant deems of importance to
                 certificateholders.
----------------------------------------------------------------------------------------------------------------
      Item 9.01- Financial Statements and                       Responsible party for reporting/disclosing the
                     Exhibits                                               financial statement or exhibit
----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      Q-3
<PAGE>
                                    EXHIBIT R

                          Form of Back-up Certification

                       Banc of America Funding Corporation
                       Mortgage Pass-Through Certificates,
                                  Series 2006-7

     The Securities  Administrator hereby certifies to the Master Servicer,  and
its officers,  directors and affiliates,  and with the knowledge and intent that
they will rely upon this certification, that:

     1. I have  reviewed  the  annual  report on Form 10-K for the  fiscal  year
[____] (the "Annual Report"),  and all reports on Form 10-D required to be filed
in respect of period covered by the Annual Report  (collectively with the Annual
Report, the "Reports"), of the Trust;

     2. To my knowledge,  (a) the Reports,  taken as a whole, do not contain any
untrue  statement of a material fact or omit to state a material fact  necessary
to make the  statements  made,  in light of the  circumstances  under which such
statements  were made, not misleading  with respect to the period covered by the
Annual Report, and (b) the Securities  Administrator's  assessment of compliance
and  related  attestation  report  referred to below,  taken as a whole,  do not
contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which
such  statements were made, not misleading with respect to the period covered by
such assessment of compliance and attestation report;

     3. To my knowledge, the distribution information required to be provided by
the  Securities  Administrator  under the Pooling and  Servicing  Agreement  for
inclusion in the Reports is included in the Reports;

     4.  I  am  responsible  for  reviewing  the  activities  performed  by  the
Securities Administrator under the Pooling and Servicing Agreement, and based on
my knowledge and the  compliance  review  conducted in preparing the  compliance
statement of the Securities  Administrator required by the Pooling and Servicing
Agreement,  and except as disclosed in the Reports, the Securities Administrator
has fulfilled its obligations  under the Pooling and Servicing  Agreement in all
material respects; and

     5.  The  report  on  assessment  of  compliance  with  servicing   criteria
applicable to the Securities  Administrator  for asset-backed  securities of the
Securities  Administrator  and each  Subcontractor  utilized  by the  Securities
Administrator  and related  attestation  report on assessment of compliance with
servicing criteria applicable to it required to be included in the Annual Report
in accordance  with Item 1122 of Regulation AB and Exchange Act Rules 13a-18 and
15d-18  has been  included  as an exhibit to the  Annual  Report.  Any  material
instances of non-compliance are described in such report and have been disclosed
in the Annual Report.

     In giving  the  certifications  above,  the  Securities  Administrator  has
reasonably  relied on information  provided to it by the following  unaffiliated
parties:  [names  of  servicer(s),  master  servicer,  subservicer,   depositor,
trustee, custodian(s)]

                                      R-1
<PAGE>

         Date: ______________________________

                                           WELLS FARGO BANK, N.A.
                                            as Securities Administrator

                                           By:
                                              ----------------------------------
                                                Name:
                                                Title:

                                      R-2

<PAGE>

                                    EXHIBIT S

                       Additional Disclosure Notification

**SEND VIA FAX TO 410-715-2380 AND VIA EMAIL TO
cts.sec.notifications@wellsfargo.com AND VIA OVERNIGHT MAIL TO THE
ADDRESSES IMMEDIATELY BELOW**

Wells Fargo Bank, N.A., as Securities Administrator
9062 Old Annapolis Road
Columbia, Maryland 21045
Attn:  Corporate Trust Services-  [DEAL NAME]--SEC REPORT PROCESSING

with a copy to:

Banc of America Funding Corporation
214 North Tryon Street
Charlotte, North Carolina 28255
Attn:  General Counsel and Chief Financial Officer

RE:  **Additional Form [10-D][10-K][8-K] Disclosure** Required

Ladies and Gentlemen:

In accordance with Section [ ] of the Pooling and Servicing  Agreement,  , dated
as of [ ][ ], 2006, among [ ], as [ ], [ ], as [ ], [ ], as [ ] and [ ], as [ ].
the  undersigned,  as [ ], hereby  notifies you that certain events have come to
our attention that [will] [may] need to be disclosed on Form [10-D][10-K][8-K].

Description of Additional Form [10-D][10-K][8-K] Disclosure:
------------------------------------------------------------

                                      S-1

<PAGE>

List  of  any  Attachments   hereto  to  be  included  in  the  Additional  Form
--------------------------------------------------------------------------------
[10-D][10-K][8-K] Disclosure:
-----------------------------

Any  inquiries  related to this  notification  should be  directed to [ ], phone
number: [ ]; email address: [ ].

                                           [NAME OF PARTY],
                                           as [role]

                                           By: _________________________________
                                               Name:
                                               Title:

                                      S-2

<PAGE>
                                    EXHIBIT T

                     Class 1-A-4 Yield Maintenance Agreement

BANK OF AMERICA, N.A.

TO:      Wells Fargo Bank, N.A. as Securities Administrator on behalf of Banc of
         America Funding 2006-7 Trust
         9062 Old Annapolis Road
         Columbia, MD 21045
         Attn:  Chris Regnier
         Tel:    410-884-2000
         Fax:    410-715-2380

CC:      Eric Daouphars
         9 West 57th Street
         New York, NY 10019
         212-583-8199

FROM:    Bank of America, National Association
         233 South Wacker Drive, 28th Floor
         Chicago, Illinois 60606
         Attention: Suzanne Buchta

DATE:    11 October 2006

Our Reference Numbers:     4862606  4862607
Internal Tracking Numbers: 2097881  2097883
Dear Sir/Madam,

     The purpose of this letter agreement is to confirm the terms and conditions
of the transaction entered into between Banc of America Funding 2006-7 Trust and
Bank of America,  N.A., a national banking association  organized under the laws
of the United States of America  (each a "party" and together "the  parties") on
the Trade  Date  specified  below (the  "Transaction").  This  letter  agreement
constitutes  a  "Confirmation"  as  referred  to in the  ISDA  Master  Agreement
specified in paragraph 1 below.  In this  Confirmation,  "Party A" means Bank of
America, N.A., and "Party B" means Banc of America Funding 2006-7 Trust.

     The definitions and provisions  contained in the 2000 ISDA Definitions,  as
published by the  International  Swaps and  Derivatives  Association,  Inc. (the
"Definitions"),  are incorporated  into this  Confirmation.  In the event of any
inconsistency  between the Definitions and this Confirmation,  this Confirmation
will govern.

     Other capitalized terms used herein (but not otherwise  defined) shall have
the meaning  specified in that certain  Pooling and Servicing  Agreement,  to be
dated October 30, 2006 (the "Pooling and  Servicing  Agreement"),  among Banc of
America Funding Corporation, Wells Fargo Bank, N.A., as securities administrator
and as master servicer, and U.S. Bank National Association, as trustee.

     1. This  Confirmation  evidences a complete binding  agreement  between the
parties as to the terms of the Transaction to which this  Confirmation  relates.

                                      T-1
<PAGE>
In addition,  the parties agree that for the purposes of this Transaction,  this
Confirmation will supplement,  form a part of, and be subject to an agreement in
the form of the 1992 ISDA Master  Agreement  (Multicurrency-Cross  Border) as if
the parties had  executed an  agreement  in such form (but  without any Schedule
except for the elections noted below) on the Trade Date of the Transaction (such
agreement,  the "Form  Master  Agreement").  In the  event of any  inconsistency
between the provisions of the Form Master Agreement and this Confirmation,  this
Confirmation will prevail for the purpose of this Transaction.

     Subject to Section 16(f) hereof,  each party  represents to the other party
and will be  deemed  to  represent  to the  other  party on the date on which it
enters  into this  Transaction  that  (absent a written  agreement  between  the
parties that expressly imposes affirmative  obligations to the contrary for that
Transaction):

     (a)  Non-Reliance.  Each party has made its own  independent  decisions  to
enter into this Transaction and as to whether this Transaction is appropriate or
proper for it based upon its own judgment and upon advice from such  advisors as
it has deemed  necessary.  It is not  relying on any  communication  (written or
oral) of the other party as investment  advice or as a  recommendation  to enter
into this  Transaction;  it being  understood that  information and explanations
related to the terms and conditions of this Transaction  shall not be considered
investment advice or a recommendation  to enter into this Transaction.  Further,
such party has not received  from the other party any  assurance or guarantee as
to the expected results of this Transaction.

     (b)  Evaluation  and  Understanding.   It  is  capable  of  evaluating  and
understanding (on its own behalf or through  independent  professional  advice),
and  understands  and  accepts,   the  terms,   conditions  and  risks  of  this
Transaction.  It is also capable of assuming,  and assumes,  the  financial  and
other risks of this Transaction.

     (c) Status of Parties. The other party is not acting as an agent, fiduciary
or advisor for it in respect of this Transaction.

     2. The  terms of the  particular  Transaction  to which  this  Confirmation
relates are as follows:

     Notional Amount:            For each  Calculation Period, the  Notional
                                 Amount shall equal the lesser of:

                                     (i) the Scheduled Notional Amount for  such
                                     Calculation  Period   as  detailed  in  the
                                     Schedule of the  Notional Amounts  attached
                                     hereto; and

                                     (ii) the Class  Certificate  Balance of the
                                     Class   1-A-4    Certificates    prior   to
                                     distributions on  the Distribution Date (as
                                     defined  in   the   Pooling  and  Servicing
                                     Agreement)  related   to   the  Calculation
                                     Period.  The Securities Administrator shall
                                     make available each month via its website a
                                     statement containing the Class  Certificate
                                     Balance of the Class 1-A-4 Certificates for

                                      T-2
<PAGE>
                                     such  Calculation  Period.  The  Securities
                                     Administrator's   internet  website   shall
                                     initially   be  located  at www.ctslink.com
                                     and assistance in using the website  can be
                                     obtained  by   calling   the     Securities
                                     Administrator's investor relations  desk at
                                     (301) 815-6600.

     Trade Date:                     11 October 2006

     Effective Date:                 25 October 2006

     Termination Date:               25 November 2011

     Fixed Amount:

     Fixed Rate Payer:               Party B

     Fixed Rate Payer Payment        30 October  2006, subject  to adjustment in
     Date:                           accordance  with the Following Business Day
                                     Convention.

     Fixed Amount:                   USD [     ]

     Floating Amount:

     Floating Rate Payer:            Party A

     Strike Rate:                    5.40000 per cent

     Ceiling Rate:                   8.90000 per cent

     Floating Rate Payer Payment     Early  Payments  shall  be   applicable - 2
     Dates:                          Business Days prior to each  Floating  Rate
                                     Payer Period End Date

     Floating Rate Payer Period      The  25th  of each  Month, commencing on 25
     End Dates:                      November 2006 and ending on the Termination
                                     Date. No Adjustment.

                                      T-3

<PAGE>
     Floating Amount:                The product  of (a)  the  Notional  Amount,
                                     (b) Floating Rate  Day  Count Fraction  and
                                     (c) the  Settlement  Spread which  shall be
                                     calculated in accordance with the following
                                     formula:

                                     If USD-LIBOR-BBA is greater than the Strike
                                     Rate for the applicable Calculation Period,
                                     then Settlement Spread =  (USD-LIBOR-BBA  -
                                     applicable Strike Rate)  provided, however,
                                     that if USD-LIBOR-BBA for any   Calculation
                                     Period  is  greater  than  the Ceiling Rate
                                     then the USD-LIBOR-BBA for such Calculation
                                     Period shall  be  deemed to  be the Ceiling
                                     Rate.

                                     If 1  Month  USD-LIBOR-BBA  is less than or
                                     equal  to   the   Strike   Rate   for   the
                                     applicable    Calculation    Period,   then
                                     Settlement Spread = Zero.

     Floating Rate for initial       5.32000 per cent
     Calculation Period:

     Floating Rate Option:           USD-LIBOR-BBA

     Designated Maturity:            1 Month

     Spread:                         None

     Floating Rate Day Count         30/360
     Fraction:

     Averaging:                      Inapplicable

     Reset Dates:                    First day of each Calculation Period

     Business Days:                  New York

     Calculation Agent:              Party A

3.   Form Master Agreement.

     For purposes of the Form Master Agreement:

     (a) "Specified  Entity"  means,  in relation to Party A, for the purpose of
Section 5(a)(v),  Section 5(a)(vi),  Section 5(a)(vii) and Section 5(b)(iv): Not
Applicable.

     (b) "Specified  Entity"  means,  in relation to Party B, for the purpose of
Section 5(a)(v),  Section 5(a)(vi),  Section 5(a)(vii) and Section 5(b)(iv): Not
Applicable.

                                      T-4
<PAGE>
     (c) "Specified Transaction" will have the meaning specified in Section 14.
     (d) The "Credit Event Upon Merger"  provisions of Section 5(b)(iv) will not
apply to Party A or to Party B.

     (e) The "Automatic  Early  Termination"  provision of Section 6(a) will not
apply to Party A or to Party B.

     (f) The Form  Master  Agreement  will be  governed  by,  and  construed  in
accordance  with,  the laws of the State of New York  without  reference  to its
conflict of laws  provisions  (except for Sections  5-1401 and 5-1402 of the New
York General Obligations Law).

     (g) The phrase "Termination Currency" means United States Dollars.

     (h) For the purpose of Section 6(e) Market Quotation and Second Method will
apply.

4.   Recording of Conversations.

     Each party to this Transaction  acknowledges and agrees to the tape (and/or
other  electronic)  recording  of  conversations  between  the  parties  to this
Transaction  whether by one or other or both of the parties or their agents, and
that any  such  recordings  may be  submitted  in  evidence  in any  Proceedings
relating to the Form Master Agreement and/or this Transaction.

5.   Credit Support Document.

     In relation to Party A: Not Applicable.
     In relation to Party B: Not Applicable.

6.   Credit Support Provider.

     In relation to Party A: Not Applicable.
     In relation to Party B: Not Applicable.

7.   Account Details.

     Party A:
     Name:             Bank of America, N.A. - New York
     ABA #:            026009593
     Attn:             BOFAUS3N
     Name:             Bank of America, N.A.
     City:             Charlotte
     Acct#:            6550219386
     Attn:             Rate Derivative Settlements
     Attn:             BOFAUS6SGDS

     Party B:
     Wells Fargo Bank, N.A.
     San Francisco, CA
     121-000-248
     Acct. # 3970771416
     Acct. Name: SAS Clearing
     F/F/C: Reserve Fund: 50960002

                                      T-5
<PAGE>
8.   Offices.

     The Office of Party A for this Transaction is:      Charlotte, North
                                                         Carolina Please
                                                         send notices to fax no.
                                                         1-866-255-1444.

    The Office of Party B for this Transaction is:

                                                         Wells Fargo Bank, N.A.
                                                         as Securities
                                                         Administrator on behalf
                                                         of Banc of America
                                                         Funding  2006-7
                                                         Trust
                                                         9062 Old Annapolis Road
                                                         Columbia, MD 21045
                                                         Attn: Client Manager
                                                               BAFC -2006-7

9.   Additional Provisions.

     (a) Fully-Paid Transactions.  Notwithstanding the terms of Sections 5 and 6
of the Form Master  Agreement,  if at any time and so long as one of the parties
to the Form Master  Agreement ("X") shall have satisfied in full all its payment
and delivery  obligations under Section 2(a)(i) of the Form Master Agreement and
shall at the time  have no  future  payment  or  delivery  obligations,  whether
absolute or contingent, under such Section, then unless the other party ("Y") is
required pursuant to appropriate proceedings to return to X or otherwise returns
to X (upon  demand  of X, or  otherwise)  any  portion  of any such  payment  or
delivery:  (i) the  occurrence of an event  described in Section  5(a)(i) of the
Form Master Agreement with respect to X shall not constitute an Event of Default
or a Potential Event of Default with respect to X as the Defaulting  Party;  and
(ii) Y shall be entitled to designate an Early  Termination Date (a) pursuant to
Section 10 below and/or (b)  pursuant to Section 6 of the Form Master  Agreement
only as a result  of the  occurrence  of a  Termination  Event  set forth in (i)
either Section 5(b)(i) or 5(b)(ii) or 5(b)(v) of the Form Master  Agreement with
respect to Y as the Affected Party or (ii) Section  5(b)(iii) of the Form Master
Agreement with respect to Y as the Burdened Party.

     (b) Downgrade of Party A. If a Ratings Event (as defined below) shall occur
and be  continuing  with  respect  to Party A, then  Party A shall (A)  within 5
Business Days of such Ratings Event, give notice to Party B of the occurrence of
such Ratings Event, and (B) use reasonable efforts to transfer (at its own cost)
Party A's  rights  and  obligations  hereunder  to  another  party,  subject  to
satisfaction of the Rating Agency  Condition (as defined  below).  Unless such a
transfer by Party A has occurred within 20 Business Days after the occurrence of
a Ratings Event, Party B shall demand that Party A post Eligible  Collateral (as
designated in the approved Credit Support  Annex),  to secure Party B's exposure
or potential exposure to Party A, and such Eligible Collateral shall be provided
in accordance  with a Credit Support Annex to be attached hereto and made a part
hereof  within 10  Business  Days of Party B's  demand  therefor.  The  Eligible
Collateral  to be  posted  and the  Credit  Support  Annex  to be  executed  and
delivered shall be subject to the Rating Agency Condition. Valuation and posting
of Eligible  Collateral shall be made as of each Payment Date, unless Party A or
Bank of  America  Corporation  are no  longer  reporting  financial  information

                                      T-6

<PAGE>
publicly, then such valuation and posting must occur weekly. Notwithstanding the
addition of the Credit  Support  Annex and the  posting of Eligible  Collateral,
Party A shall  continue to use  reasonable  efforts to  transfer  its rights and
obligations  hereunder to an acceptable  third party;  provided,  however,  that
Party A's obligations to find a transferee and to post Eligible Collateral under
such Credit  Support  Annex shall remain in effect only for so long as a Ratings
Event is continuing with respect to Party A. For the purpose hereof,  a "Ratings
Event"  shall  occur with  respect to Party A if the  long-term  and  short-term
senior  unsecured  deposit ratings of Party A cease to be at least A+ and A-1 by
Standard & Poor's  Ratings  Service  ("S&P")  and at least A1 and P-1 by Moody's
Investors  Service,  Inc.  ("Moody's")  and at least A and F1 by  Fitch  Ratings
("Fitch"),  to the extent such  obligations are rated by S&P, Moody's and Fitch.
"Rating  Agency  Condition"  means,  with  respect to any action  taken or to be
taken, a condition that is satisfied when S&P,  Moody's and Fitch have confirmed
that  such  action  would  not  result  in  the  downgrade,   qualification  (if
applicable)  or  withdrawal of the rating then assigned by such Rating Agency to
the applicable  class of  Certificates.  The failure by Party A to post Eligible
Collateral  in  accordance  herewith or to transfer  its rights and  obligations
hereunder  shall  constitute an Additional  Termination  Event for which Party A
shall be the sole Affected Party.

10.  Additional Termination Event.

     It  shall  be an  Additional  Termination  Event  if any  amendment  and/or
supplement  to any document that  pertains to the Form Master  Agreement  and/or
this  Transaction  is made  without the prior  written  consent of Party A (such
consent not to be unreasonably  withheld),  if such amendment and/or  supplement
would:  (i) adversely  affect any of Party A's rights or  obligations  hereunder
and/or under the Form Master  Agreement;  or (ii) modify the  obligations of, or
impair the ability  of,  Party B to fully  perform any of Party B's  obligations
hereunder  and/or  under the Form  Master  Agreement.  In  connection  with such
Additional Termination Event, Party B shall be the sole Affected Party.

11.  Waiver of Right to Trial by Jury.

     EACH PARTY  HEREBY  IRREVOCABLY  WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY
WITH  RESPECT  TO ANY  LEGAL  PROCEEDING  ARISING  OUT OF OR  RELATING  TO  THIS
TRANSACTION.

12.  Eligible Contract Participant.

     Each party  represents to the other party that it is an "eligible  contract
participant" as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as
amended.

13.  Notice by Facsimile Transmission.

     Section  12(a) of the Form Master  Agreement is hereby  amended by deleting
the parenthetical  "(except that a notice or other communication under Section 5
or 6 may  not  be  given  by  facsimile  transmission  or  electronic  messaging
system)."

14.  Representations.

     Wells  Fargo  Bank,  N.A.,  acting  on  behalf  of Party  B, as  Securities
Administrator, represents that: (a) it is duly organized and validly existing as
a  national  banking  association  under  the  laws of the  jurisdiction  of its
organization/formation;  (b) it has been  directed  pursuant  to the Pooling and
Servicing  Agreement to enter into this  Transaction  (including the Form Master
Agreement) and to perform its obligations  hereunder (and  thereunder);  (c) the
Transaction and the performance of its obligations hereunder (and under the Form

                                      T-7
<PAGE>
Master Agreement) will not, to its knowledge, result in a breach or violation of
any material  term or provision  of, or constitute a default under any agreement
or  instrument  to which  Wells  Fargo  Bank,  N.A. is a party or by which it is
bound; (d) each of the Pooling and Servicing Agreement and the other transaction
documents related thereto (the  "Transaction  Documents") to which it is a party
has been duly  authorized,  executed  and  delivered by it; (e) assuming the due
authorization, execution and delivery thereof by the other parties thereto, each
of the Pooling and Servicing  Agreement and the other  Transaction  Documents to
which it is a party constitutes the legal, valid and binding  obligations of it,
enforceable  against  it in  accordance  with  the  terms  thereof,  subject  to
applicable bankruptcy, insolvency and similar laws or legal principles affecting
creditors'  rights  generally;  (f) the Pooling and Servicing  Agreement and the
other  Transaction  Documents  to which Party B is a party are in full force and
effect on the date  hereof  and there  have been no  amendments  or  waivers  or
modifications  of any of the terms  thereof  since the  original  execution  and
delivery  of the  Pooling  and  Servicing  Agreement  and the other  Transaction
Documents to which Party B is a party, except such as may have been delivered to
Party A and to Party B; (g) to its  knowledge,  no event of  default  (or  event
which  would,  with  the  passage  of time or the  giving  of  notice,  or both,
constitute  an event of  default)  has  occurred  under  any of the  Transaction
Documents  to  which  Party B is a  party;  and (h) the  person  executing  this
Confirmation is duly authorized to execute and deliver it on behalf of Party B.

15.  Multibranch Party.

     For purpose of Section 10(c) of the Form Master Agreement: (a) Party A is a
Multibranch Party, and may act through its Charlotte,  North Carolina,  Chicago,
Illinois, San Francisco,  California, New York, New York, Boston,  Massachusetts
or  London,  England  Office  or such  other  Office  as may be agreed to by the
parties in connection  with a Transaction;  and (b) Party B is not a Multibranch
Party.

16.  Other Provisions.

     (a) Addresses for notices.  As set forth on page 1 hereof and, with respect
to  Party  A,  the  fax no.  set  forth  on the  signature  page to this  letter
agreement.

     (b) For the  purpose of Section  13(c) of the Form  Master  Agreement:  (i)
Party A appoints as its Process Agent, not applicable; and (ii) Party B appoints
as its Process Agent, not applicable.

     (c)  Section  12(a)(ii)  of the Form  Master  Agreement  is  deleted in its
entirety.

     (d) Party A may assign its rights and  obligations  hereunder to any entity
so long as the Rating Agency Confirmation is satisfied.

     (e) USA PATRIOT Act Notice.  Party A hereby  notifies Party B that pursuant
to the  requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed
into law October 26,  2001)) (the "Act"),  it is required to obtain,  verify and
record information that identifies Party B, which information  includes the name
and address of Party B and other information that will allow Party A to identify
Party B in accordance with the Act.

     (f) It is  expressly  understood  and  agreed by the  parties  hereto  that
insofar as this  Confirmation  is executed by the Securities  Administrator  (i)
this  Confirmation  is executed and delivered by Wells Fargo Bank,  N.A., not in
its individual capacity but solely as Securities Administrator under the Pooling
and Servicing  Agreement in the exercise of the powers and  authority  conferred

                                      T-8
<PAGE>
upon and vested in it thereunder and pursuant to instructions set forth therein,
(ii) each of the  representations,  undertakings  and agreements  herein made on
behalf of the trust formed under the Pooling and Servicing Agreement is made and
intended  not as a personal  representation,  undertaking  or  agreement  of the
Securities  Administator  but is made and  intended  solely  for the  purpose of
binding  only  Banc  of  America  Funding  2006-7  Trust,  and  (iii)  under  no
circumstances  shall Wells  Fargo  Bank,  N.A.,  in its  individual  capacity be
personally  liable  for  the  payment  of any  indebtedness  or  expenses  or be
personally  liable for the breach or failure of any obligation,  representation,
warranty  or  covenant  made or  undertaken  by it on behalf of Banc of  America
Funding 2006-7 Trust under this Confirmation.  Notwithstanding the foregoing (or
anything to the contrary herein), Wells Fargo Bank, N.A. shall be liable for its
own fraud, negligence, willful misconduct and/or bad faith

     (g) The Events of Default  specified under Sections  5(a)(ii) - 5(a)(vi) of
the Form Master Agreement will not apply to either Party A or Party B.

     (h) With  respect to Party B only,  the  provisions  of  Section  5(a)(vii)
clause 2 of the Form  Master  Agreement  will not be  applicable  as an Event of
Default.

     (i) Without affecting the provisions of the Form Master Agreement requiring
the  calculation  of certain  net  payment  amounts,  as a result of an Event of
Default or Additional  Termination  Event or otherwise,  all payments  under the
Form Master Agreement will be made without setoff.

     (j) Party A agrees that it will not, prior to the date that is one year and
one day from the Trade Date, acquiesce in, petition or otherwise invoke or cause
Party B to invoke the  process of any court or  governmental  authority  for the
purpose of  commencing or sustaining a case against Party B under any federal or
state  bankruptcy,  insolvency or similar law or for the purpose of appointing a
receiver,  liquidator,  assignee,  trustee,  custodian,  sequestrator  or  other
similar official for Party B or any substantial part of the property of Party B,
or for the purpose of ordering the winding up or  liquidation  of the affairs of
Party B. Nothing herein (nor in the Form Master Agreement) shall prevent Party A
from participating in any such proceeding once commenced.

     (k) Section 9(b) of the Form Master  Agreement is hereby  amended by adding
the  following  at the end of such  Section:  ", and unless  the  Rating  Agency
Condition is satisfied,  unless such amendment  clarifies any term or provision,
corrects any inconsistency,  cures any ambiguity,  or corrects any typographical
error."

     (l) Before any  amendment  and/or  supplement  is made to any document that
pertains to the Form Master Agreement and/or any Transaction thereunder, Party B
must first obtain the prior  written  consent of Party A (such consent not to be
unreasonably  withheld) if such amendment and/or supplement would: (a) adversely
affect any of Party A's rights or obligations  under the Form Master  Agreement;
or (b) modify the  obligations  of, or impact the ability  of,  Party B to fully
perform  any of Party B's  obligations  under  the Form  Master  Agreement.

17.  Compliance with Regulation AB. In connection with the Pooling and Servicing
Agreement,  Party B represents that this Confirmation is a derivative instrument
as described in Item 1115 of Regulation AB under the  Securities Act of 1933 and
the  Securities  Exchange Act of 1934, as amended  ("Regulation  AB"), and not a
credit support contract described in Item 1114 of Regulation AB.

                                      T-9
<PAGE>
     (a) In accordance with Regulation AB, Party A represents that: (i) the name
of the derivative counterparty is Bank of America, N.A.; (ii) the organizational
form of the derivative  counterparty is a national banking association organized
under the laws of the United  States;  and (iii) the  general  character  of the
business of the derivative  counterparty is to be engaged in a general  consumer
banking,  commercial  banking  and  trust  business,  offering  a wide  range of
commercial,  corporate,  international,  financial market,  retail and fiduciary
banking services.

     (b) Party A has been advised  that Party B (and/or  certain  affiliates  of
Party  B)  is  required  under  Regulation  AB  to  disclose  certain  financial
information  regarding  Party  A  depending  on  the  applicable   "significance
percentage" of this Confirmation,  as calculated from time to time in accordance
with Item 1115 of  Regulation  AB (as  discussed  in the Pooling  and  Servicing
Agreement).  Party A has been  advised by the Sponsor (as defined in the Pooling
and Servicing Agreement) that the applicable  "significance  percentage" of this
Confirmation  is less  than  10%,  and  accordingly,  no  financial  information
regarding  Party A need be disclosed in accordance  with Item 1115 of Regulation
AB.

     (c) If required,  Party A shall provide to Party B the applicable financial
information  described  under Item  1115(b)(1)  or  (b)(2),  as  applicable,  of
Regulation AB (the "Reg AB Information")  within five (5) Local Business Days of
receipt  of a  written  request  for  such  Reg AB  Information  by Party B (the
"Response Period"), so long as Party B has reasonably determined, in good faith,
that such information is required under Regulation AB; provided,  however,  that
if Party A, in good  faith,  determines  that it is unable to provide the Reg AB
Information  within the  Response  Period,  then,  subject to the Rating  Agency
Condition,  Party A shall  use  reasonable  efforts  to cause a Reg AB  Approved
Entity (as defined  below) to replace Party A as party to this  Confirmation  on
terms substantially  similar to this Confirmation prior to the expiration of the
Response Period.

     (d) "Reg AB Approved  Entity"  means any entity that (i) has the ability to
provide the Reg AB  Information  and (ii) meets or exceeds the  Approved  Rating
Thresholds  (as defined  below).  If Party B requests  (in  writing)  the Reg AB
Information  from Party A, then Party B shall  promptly (and in any event within
two  (2)  Local  Business  Days  of the  date  of the  request  for  the  Reg AB
Information)  provide Party A with a written explanation of how the significance
percentage was calculated.

     (e) "Approved Rating  Thresholds"  means an entity that has a long-term and
short-term  senior unsecured deposit rating of at least A and A-1 by S&P, A1 and
P-1 by Moody's or A and F1 by Fitch, to the extent such obligations are rated by
S&P, Moody's and Fitch.

Please confirm that the foregoing  correctly sets forth the terms and conditions
of our agreement by returning  within three (3) Business Days via  telecopier an
executed  copy  of this  Confirmation  to the  attention  of  Global  Derivative
Operations  (fax no.  1-866-255-1444)).  Failure to respond  within  such period
shall not affect the validity or enforceability  of this Transaction,  and shall
be deemed to be an  affirmation of the terms and  conditions  contained  herein,
absent manifest error.

                                      T-10
<PAGE>

Yours sincerely,

Bank of America, N.A.

By:      ________________________________________
         Name:
         Title:

Confirmed as of the date above:

Banc of America Funding  2006-7 Trust

By:  Wells  Fargo  Bank,  N.A.,  not in its  individual  capacity  but solely as
Securities Administrator on behalf of Banc of America Funding 2006-7 Trust

By:      __________________________________________
         Name:
         Title

                                      T-11

<PAGE>
                                   SCHEDULE A

                     Our Reference Numbers: 4862606 4862607

                Notional Amount (USD)   Start Date      End Date
                ---------------------   ----------      --------
                    87,663,000.00       10/25/2006     11/25/2006
                    86,945,531.00       11/25/2006     12/25/2006
                    86,079,960.00       12/25/2006      1/25/2007
                    85,066,849.00        1/25/2007      2/25/2007
                    83,906,949.00        2/25/2007      3/25/2007
                    82,601,276.00        3/25/2007      4/25/2007
                    81,151,114.00        4/25/2007      5/25/2007
                    79,558,010.00        5/25/2007      6/25/2007
                    77,823,772.00        6/25/2007      7/25/2007
                    75,950,472.00        7/25/2007      8/25/2007
                    73,940,441.00        8/25/2007      9/25/2007
                    71,796,260.00        9/25/2007     10/25/2007
                    70,451,595.00       10/25/2007     11/25/2007
                    69,028,330.00       11/25/2007     12/25/2007
                    67,529,285.00       12/25/2007      1/25/2008
                    65,957,480.00        1/25/2008      2/25/2008
                    64,316,127.00        2/25/2008      3/25/2008
                    62,608,623.00        3/25/2008      4/25/2008
                    60,838,540.00        4/25/2008      5/25/2008
                    59,009,617.00        5/25/2008      6/25/2008
                    57,125,750.00        6/25/2008      7/25/2008
                    55,190,981.00        7/25/2008      8/25/2008
                    53,209,485.00        8/25/2008      9/25/2008
                    51,185,562.00        9/25/2008     10/25/2008
                    49,123,624.00       10/25/2008     11/25/2008
                    47,033,541.00       11/25/2008     12/25/2008
                    44,932,173.00       12/25/2008      1/25/2009
                    42,823,030.00        1/25/2009      2/25/2009
                    40,713,030.00        2/25/2009      3/25/2009
                    38,667,020.00        3/25/2009      4/25/2009
                    36,683,588.00        4/25/2009      5/25/2009
                    34,761,351.00        5/25/2009      6/25/2009
                    32,898,954.00        6/25/2009      7/25/2009
                    31,095,068.00        7/25/2009      8/25/2009
                    29,348,395.00        8/25/2009      9/25/2009
                    27,657,659.00        9/25/2009     10/25/2009
                    26,021,613.00       10/25/2009     11/25/2009
                    24,439,035.00       11/25/2009     12/25/2009
                    22,908,727.00       12/25/2009      1/25/2010
                    21,429,516.00        1/25/2010      2/25/2010
                    20,000,254.00        2/25/2010      3/25/2010
                    18,619,816.00        3/25/2010      4/25/2010
                    17,287,099.00        4/25/2010      5/25/2010
                    16,001,024.00        5/25/2010      6/25/2010

                                      T-12
<PAGE>
                    14,760,533.00        6/25/2010      7/25/2010
                    13,564,590.00        7/25/2010      8/25/2010
                    12,412,182.00        8/25/2010      9/25/2010
                    11,302,315.00        9/25/2010     10/25/2010
                    10,234,015.00       10/25/2010     11/25/2010
                    9,206,330.00        11/25/2010     12/25/2010
                    8,218,327.00        12/25/2010      1/25/2011
                    7,269,091.00         1/25/2011      2/25/2011
                    6,357,726.00         2/25/2011      3/25/2011
                    5,483,357.00         3/25/2011      4/25/2011
                    4,645,124.00         4/25/2011      5/25/2011
                    3,842,188.00         5/25/2011      6/25/2011
                    3,073,723.00         6/25/2011      7/25/2011
                    2,338,924.00         7/25/2011      8/25/2011
                    1,637,002.00         8/25/2011      9/25/2011
                     967,182.00          9/25/2011     10/25/2011
                     328,708.00         10/25/2011     11/25/2011

                                      T-13

<PAGE>
                                    EXHIBIT U

                 Overcollateralized Yield Maintenance Agreement

BANK OF AMERICA, N.A.

         TO:      Wells Fargo Bank, N.A. as Securities Administrator on behalf
                  of Banc of America Funding 2006-7 Trust
                  9062 Old Annapolis Road
                  Columbia, MD 21045
                  Attn:  Chris Regnier
                  Tel:    410-884-2000
                  Fax:    410-715-2380

CC:               Eric Daouphars
                  9 West 57th Street
                  New York, NY 10019
                  212-583-8199

FROM:             Bank of America, National Association
                  233 South Wacker Drive, 28th Floor
                  Chicago, Illinois 60606
                  Attention: Suzanne Buchta

DATE:             11 October 2006

Our Reference Numbers:     4862605  4862604
Internal Tracking Numbers: 2096245  2096250

Dear Sir/Madam,

     The purpose of this letter agreement is to confirm the terms and conditions
of the transaction entered into between Banc of America Funding 2006-7 Trust and
Bank of America,  N.A., a national banking association  organized under the laws
of the United States of America  (each a "party" and together "the  parties") on
the Trade  Date  specified  below (the  "Transaction").  This  letter  agreement
constitutes  a  "Confirmation"  as  referred  to in the  ISDA  Master  Agreement
specified in paragraph 1 below.  In this  Confirmation,  "Party A" means Bank of
America, N.A., and "Party B" means Banc of America Funding 2006-7 Trust.

     The definitions and provisions  contained in the 2000 ISDA Definitions,  as
published by the  International  Swaps and  Derivatives  Association,  Inc. (the
"Definitions"),  are incorporated  into this  Confirmation.  In the event of any
inconsistency  between the Definitions and this Confirmation,  this Confirmation
will govern.

     Other capitalized terms used herein (but not otherwise  defined) shall have
the meaning  specified in that certain  Pooling and Servicing  Agreement,  to be
dated October 30, 2006 (the "Pooling and  Servicing  Agreement"),  among Banc of
America Funding Corporation, Wells Fargo Bank, N.A., as securities administrator
and as master servicer, and U.S. Bank National Association, as trustee.

                                      U-1
<PAGE>
1. This Confirmation  evidences a complete binding agreement between the parties
as to the  terms of the  Transaction  to which  this  Confirmation  relates.  In
addition,  the parties  agree that for the  purposes of this  Transaction,  this
Confirmation will supplement,  form a part of, and be subject to an agreement in
the form of the 1992 ISDA Master  Agreement  (Multicurrency-Cross  Border) as if
the parties had  executed an  agreement  in such form (but  without any Schedule
except for the elections noted below) on the Trade Date of the Transaction (such
agreement,  the "Form  Master  Agreement").  In the  event of any  inconsistency
between the provisions of the Form Master Agreement and this Confirmation,  this
Confirmation will prevail for the purpose of this Transaction.

     Subject to Section 16(f) hereof,  each party  represents to the other party
and will be  deemed  to  represent  to the  other  party on the date on which it
enters  into this  Transaction  that  (absent a written  agreement  between  the
parties that expressly imposes affirmative  obligations to the contrary for that
Transaction):

     (a)  Non-Reliance.  Each party has made its own  independent  decisions  to
enter into this Transaction and as to whether this Transaction is appropriate or
proper for it based upon its own judgment and upon advice from such  advisors as
it has deemed  necessary.  It is not  relying on any  communication  (written or
oral) of the other party as investment  advice or as a  recommendation  to enter
into this  Transaction;  it being  understood that  information and explanations
related to the terms and conditions of this Transaction  shall not be considered
investment advice or a recommendation  to enter into this Transaction.  Further,
such party has not received  from the other party any  assurance or guarantee as
to the expected results of this Transaction.

     (b)  Evaluation  and  Understanding.   It  is  capable  of  evaluating  and
understanding (on its own behalf or through  independent  professional  advice),
and  understands  and  accepts,   the  terms,   conditions  and  risks  of  this
Transaction.  It is also capable of assuming,  and assumes,  the  financial  and
other risks of this Transaction.

     (c) Status of Parties. The other party is not acting as an agent, fiduciary
or advisor for it in respect of this Transaction.

2. The terms of the particular  Transaction to which this  Confirmation  relates
are as follows:

     Notional Amount:                        For  each  Calculation  Period, the
                                             Notional  Amount  shall  equal  the
                                             lesser of:

                                               (i) the Scheduled Notional Amount
                                               for such  Calculation  Period  as
                                               detailed  in  the Schedule of the
                                               Notional Amounts attached hereto;
                                               and

                                               (ii)   the   Class    Certificate
                                               Balance  of   the   Class  T2-A-2
                                               Certificates      prior        to
                                               distributions on the Distribution
                                               Date (as  defined  in the Pooling
                                               and Servicing  Agreement) related
                                               to  the  Calculation  Period. The

                                      U-2
<PAGE>
                                               Securities  Administrator   shall
                                               make available each month via its
                                               website  a  statement  containing
                                               the  Class Certificate Balance of
                                               the Class T2-A-2 Certificates for
                                               such   Calculation   Period.  The
                                               Securities        Administrator's
                                               interne t website shall initially
                                               be located at www.ctslink.com and
                                               assistance  in  using the website
                                               can be obtained  by  calling  the
                                               Securities        Administrator's
                                               investor   relations    desk   at
                                               (301) 815-6600.

     Trade Date:                           11 October 2006

     Effective Date:                       25 November 2006

     Termination Date:                     25 December 2008

     Fixed Amount:

     Fixed Rate Payer:                     Party B

     Fixed Rate Payer Payment              30    October    2006,   subject   to
     Date:                                 adjustment  in  accordance  with  the
                                           Following Business Day Convention.

     Fixed Amount:                          USD [     ]

     Floating Amount:

     Floating Rate Payer:                  Party A

     Strike Rate:                          As per Schedule A attached hereto

     Ceiling Rate:                         10.00000 per cent

     Floating Rate Payer Payment           Early  Payments shall be applicable -
     Dates:                                2  Business  Days   prior   to   each
                                           Floating Rate Payer Period End Date

     Floating Rate Payer Period End        The 25th of each Month, commencing on
     Dates:                                25 December 2006 and  ending  on  the
                                           Termination Date. No Adjustment.

                                      U-3

<PAGE>
     Floating Amount:                      The   product  of  (a)  the  Notional
                                           Amount,  (b)  Floating Rate Day Count
                                           Fraction  and  (c)   the   Settlement
                                           Spread  which  shall be calculated in
                                           accordance   with    the    following
                                           formula:

                                           If   USD-LIBOR-BBA  is  greater  than
                                           the     Strike     Rate    for    the
                                           applicable     Calculation    Period,
                                           then      Settlement     Spread     =
                                           (USD-LIBOR-BBA     -       applicable
                                           Strike   Rate)   provided,   however,
                                           that   if   USD-LIBOR-BBA   for   any
                                           Calculation    Period    is   greater
                                           than   the   Ceiling   Rate  then the
                                           USD-LIBOR-BBA       for          such
                                           Calculation     Period    shall    be
                                           deemed  to  be  the  Ceiling  Rate.

                                           If   1   Month  USD-LIBOR-BBA is less
                                           than  or  equal  to  the  Strike Rate
                                           for    the   applicable   Calculation
                                           Period,   then   Settlement  Spread =
                                           Zero.

     Floating Rate for initial             To be set
     Calculation Period:

     Floating Rate Option:                 USD-LIBOR-BBA

     Designated Maturity:                  1 Month

     Spread:                               None

     Floating Rate Day Count Fraction:     Act/360

     Averaging:                            Inapplicable

     Reset Dates:                          First day of each Calculation Period

     Business Days:                        New York

     Calculation Agent:                    Party A

3.   Form Master Agreement.

     For purposes of the Form Master Agreement:

     (a) "Specified  Entity"  means,  in relation to Party A, for the purpose of
Section 5(a)(v),  Section 5(a)(vi),  Section 5(a)(vii) and Section 5(b)(iv): Not
Applicable.

     (b) "Specified  Entity"  means,  in relation to Party B, for the purpose of
Section 5(a)(v),  Section 5(a)(vi),  Section 5(a)(vii) and Section 5(b)(iv): Not
Applicable.

                                      U-4
<PAGE>
     (c) "Specified  Transaction" will have the meaning specified in Section 14.
     (d) The "Credit Event Upon Merger"  provisions of Section 5(b)(iv) will not
apply to Party A or to Party B.

     (e) The "Automatic  Early  Termination"  provision of Section 6(a) will not
apply to Party A or to Party B.

     (f) The Form  Master  Agreement  will be  governed  by,  and  construed  in
accordance  with,  the laws of the State of New York  without  reference  to its
conflict of laws  provisions  (except for Sections  5-1401 and 5-1402 of the New
York General Obligations Law).

     (g) The phrase "Termination Currency" means United States Dollars.

     (h) For the purpose of Section 6(e) Market Quotation and Second Method will
apply.

4.   Recording of Conversations.

     Each party to this Transaction  acknowledges and agrees to the tape (and/or
other  electronic)  recording  of  conversations  between  the  parties  to this
Transaction  whether by one or other or both of the parties or their agents, and
that any  such  recordings  may be  submitted  in  evidence  in any  Proceedings
relating to the Form Master Agreement and/or this Transaction.

5.   Credit Support Document.

     In relation to Party A: Not Applicable.
     In relation to Party B: Not Applicable.

6.   Credit Support Provider.

     In relation to Party A: Not Applicable.
     In relation to Party B: Not Applicable.

7.   Account Details.

     Party A:
     Name:             Bank of America, N.A. - New York
     ABA #:            026009593
     Attn:             BOFAUS3N
     Name:             Bank of America, N.A.
     City:             Charlotte
     Acct#:            6550219386
     Attn:             Rate Derivative Settlements
     Attn:             BOFAUS6SGDS

     Party B:
     Wells Fargo Bank, N.A.
     San Francisco, CA
     121-000-248
     Acct. # 3970771416
     Acct. Name: SAS Clearing
     F/F/C: Reserve Fund: 50960003

                                      U-5
<PAGE>
8.   Offices.

     The Office of Party A for this  Transaction is: Charlotte,  North Carolina
                                                     Please send notices to
                                                     fax no. 1-866-255-1444.

     The Office of Party B for this Transaction is:

                                                     Wells Fargo Bank, N.A. as
                                                     Securities Administrator
                                                     on behalf of Banc of
                                                     America Funding  2006-7
                                                     Trust
                                                     9062 Old Annapolis Road
                                                     Columbia, MD 21045
                                                     Attn: Client Manager BAFC
                                                           -2006-7

9.   Additional Provisions.

     (a) Fully-Paid Transactions.  Notwithstanding the terms of Sections 5 and 6
of the Form Master  Agreement,  if at any time and so long as one of the parties
to the Form Master  Agreement ("X") shall have satisfied in full all its payment
and delivery  obligations under Section 2(a)(i) of the Form Master Agreement and
shall at the time  have no  future  payment  or  delivery  obligations,  whether
absolute or contingent, under such Section, then unless the other party ("Y") is
required pursuant to appropriate proceedings to return to X or otherwise returns
to X (upon  demand  of X, or  otherwise)  any  portion  of any such  payment  or
delivery:  (i) the  occurrence of an event  described in Section  5(a)(i) of the
Form Master Agreement with respect to X shall not constitute an Event of Default
or a Potential Event of Default with respect to X as the Defaulting  Party;  and
(ii) Y shall be entitled to designate an Early  Termination Date (a) pursuant to
Section 10 below and/or (b)  pursuant to Section 6 of the Form Master  Agreement
only as a result  of the  occurrence  of a  Termination  Event  set forth in (i)
either Section 5(b)(i) or 5(b)(ii) or 5(b)(v) of the Form Master  Agreement with
respect to Y as the Affected Party or (ii) Section  5(b)(iii) of the Form Master
Agreement with respect to Y as the Burdened Party.

     (b) Downgrade of Party A. If a Ratings Event (as defined below) shall occur
and be  continuing  with  respect  to Party A, then  Party A shall (A)  within 5
Business Days of such Ratings Event, give notice to Party B of the occurrence of
such Ratings Event, and (B) use reasonable efforts to transfer (at its own cost)
Party A's  rights  and  obligations  hereunder  to  another  party,  subject  to
satisfaction of the Rating Agency  Condition (as defined  below).  Unless such a
transfer by Party A has occurred within 20 Business Days after the occurrence of
a Ratings Event, Party B shall demand that Party A post Eligible  Collateral (as
designated in the approved Credit Support  Annex),  to secure Party B's exposure
or potential exposure to Party A, and such Eligible Collateral shall be provided
in accordance  with a Credit Support Annex to be attached hereto and made a part
hereof  within 10  Business  Days of Party B's  demand  therefor.  The  Eligible
Collateral  to be  posted  and the  Credit  Support  Annex  to be  executed  and
delivered shall be subject to the Rating Agency Condition. Valuation and posting
of Eligible  Collateral shall be made as of each Payment Date, unless Party A or
Bank of  America  Corporation  are no  longer  reporting  financial  information

                                       U-6
<PAGE>
publicly, then such valuation and posting must occur weekly. Notwithstanding the
addition of the Credit  Support  Annex and the  posting of Eligible  Collateral,
Party A shall  continue to use  reasonable  efforts to  transfer  its rights and
obligations  hereunder to an acceptable  third party;  provided,  however,  that
Party A's obligations to find a transferee and to post Eligible Collateral under
such Credit  Support  Annex shall remain in effect only for so long as a Ratings
Event is continuing with respect to Party A. For the purpose hereof,  a "Ratings
Event"  shall  occur with  respect to Party A if the  long-term  and  short-term
senior  unsecured  deposit ratings of Party A cease to be at least A+ and A-1 by
Standard & Poor's  Ratings  Service  ("S&P")  and at least A1 and P-1 by Moody's
Investors  Service,  Inc.  ("Moody's")  and at least A and F1 by  Fitch  Ratings
("Fitch"),  to the extent such  obligations are rated by S&P, Moody's and Fitch.
"Rating  Agency  Condition"  means,  with  respect to any action  taken or to be
taken, a condition that is satisfied when S&P,  Moody's and Fitch have confirmed
that  such  action  would  not  result  in  the  downgrade,   qualification  (if
applicable)  or  withdrawal of the rating then assigned by such Rating Agency to
the applicable  class of  Certificates.  The failure by Party A to post Eligible
Collateral  in  accordance  herewith or to transfer  its rights and  obligations
hereunder  shall  constitute an Additional  Termination  Event for which Party A
shall be the sole Affected Party.

10.  Additional Termination Event.

     It  shall  be an  Additional  Termination  Event  if any  amendment  and/or
supplement  to any document that  pertains to the Form Master  Agreement  and/or
this  Transaction  is made  without the prior  written  consent of Party A (such
consent not to be unreasonably  withheld),  if such amendment and/or  supplement
would:  (i) adversely  affect any of Party A's rights or  obligations  hereunder
and/or under the Form Master  Agreement;  or (ii) modify the  obligations of, or
impair the ability  of,  Party B to fully  perform any of Party B's  obligations
hereunder  and/or  under the Form  Master  Agreement.  In  connection  with such
Additional Termination Event, Party B shall be the sole Affected Party.

11.   Waiver of Right to Trial by Jury.

     EACH PARTY  HEREBY  IRREVOCABLY  WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY
WITH  RESPECT  TO ANY  LEGAL  PROCEEDING  ARISING  OUT OF OR  RELATING  TO  THIS
TRANSACTION.

12.   Eligible Contract Participant.

     Each party  represents to the other party that it is an "eligible  contract
participant" as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as
amended.

13.   Notice by Facsimile Transmission.

     Section  12(a) of the Form Master  Agreement is hereby  amended by deleting
the parenthetical  "(except that a notice or other communication under Section 5
or 6 may  not  be  given  by  facsimile  transmission  or  electronic  messaging
system)."

14.   Representations.

     Wells  Fargo  Bank,  N.A.,  acting  on  behalf  of Party  B, as  Securities
Administrator, represents that: (a) it is duly organized and validly existing as
a  national  banking  association  under  the  laws of the  jurisdiction  of its
organization/formation;  (b) it has been  directed  pursuant  to the Pooling and
Servicing  Agreement to enter into this  Transaction  (including the Form Master
Agreement) and to perform its obligations  hereunder (and  thereunder);  (c) the
Transaction and the performance of its obligations hereunder (and under the Form

                                       U-7
<PAGE>
Master Agreement) will not, to its knowledge, result in a breach or violation of
any material  term or provision  of, or constitute a default under any agreement
or  instrument  to which  Wells  Fargo  Bank,  N.A. is a party or by which it is
bound; (d) each of the Pooling and Servicing Agreement and the other transaction
documents related thereto (the  "Transaction  Documents") to which it is a party
has been duly  authorized,  executed  and  delivered by it; (e) assuming the due
authorization, execution and delivery thereof by the other parties thereto, each
of the Pooling and Servicing  Agreement and the other  Transaction  Documents to
which it is a party constitutes the legal, valid and binding  obligations of it,
enforceable  against  it in  accordance  with  the  terms  thereof,  subject  to
applicable bankruptcy, insolvency and similar laws or legal principles affecting
creditors'  rights  generally;  (f) the Pooling and Servicing  Agreement and the
other  Transaction  Documents  to which Party B is a party are in full force and
effect on the date  hereof  and there  have been no  amendments  or  waivers  or
modifications  of any of the terms  thereof  since the  original  execution  and
delivery  of the  Pooling  and  Servicing  Agreement  and the other  Transaction
Documents to which Party B is a party, except such as may have been delivered to
Party A and to Party B; (g) to its  knowledge,  no event of  default  (or  event
which  would,  with  the  passage  of time or the  giving  of  notice,  or both,
constitute  an event of  default)  has  occurred  under  any of the  Transaction
Documents  to  which  Party B is a  party;  and (h) the  person  executing  this
Confirmation is duly authorized to execute and deliver it on behalf of Party B.

15.  Multibranch Party.

     For purpose of Section 10(c) of the Form Master Agreement: (a) Party A is a
Multibranch Party, and may act through its Charlotte,  North Carolina,  Chicago,
Illinois, San Francisco,  California, New York, New York, Boston,  Massachusetts
or  London,  England  Office  or such  other  Office  as may be agreed to by the
parties in connection  with a Transaction;  and (b) Party B is not a Multibranch
Party.

16.  Other Provisions.

     (a) Addresses for notices.  As set forth on page 1 hereof and, with respect
to  Party  A,  the  fax no.  set  forth  on the  signature  page to this  letter
agreement.

     (b) For the  purpose of Section  13(c) of the Form  Master  Agreement:  (i)
Party A appoints as its Process Agent, not applicable; and (ii) Party B appoints
as its Process Agent, not applicable.

     (c)  Section  12(a)(ii)  of the Form  Master  Agreement  is  deleted in its
entirety.

     (d) Party A may assign its rights and  obligations  hereunder to any entity
so long as the Rating Agency Confirmation is satisfied.

     (e) USA PATRIOT Act Notice.  Party A hereby  notifies Party B that pursuant
to the  requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed
into law October 26,  2001)) (the "Act"),  it is required to obtain,  verify and
record information that identifies Party B, which information  includes the name
and address of Party B and other information that will allow Party A to identify
Party B in accordance with the Act.

     (f) It is  expressly  understood  and  agreed by the  parties  hereto  that
insofar as this  Confirmation  is executed by the Securities  Administrator  (i)
this  Confirmation  is executed and delivered by Wells Fargo Bank,  N.A., not in
its individual capacity but solely as Securities Administrator under the Pooling
and Servicing  Agreement in the exercise of the powers and  authority  conferred

                                       U-8
<PAGE>
upon and vested in it thereunder and pursuant to instructions set forth therein,
(ii) each of the  representations,  undertakings  and agreements  herein made on
behalf of the trust formed under the Pooling and Servicing Agreement is made and
intended  not as a personal  representation,  undertaking  or  agreement  of the
Securities  Administator  but is made and  intended  solely  for the  purpose of
binding  only  Banc  of  America  Funding  2006-7  Trust,  and  (iii)  under  no
circumstances  shall Wells  Fargo  Bank,  N.A.,  in its  individual  capacity be
personally  liable  for  the  payment  of any  indebtedness  or  expenses  or be
personally  liable for the breach or failure of any obligation,  representation,
warranty  or  covenant  made or  undertaken  by it on behalf of Banc of  America
Funding 2006-7 Trust under this Confirmation.  Notwithstanding the foregoing (or
anything to the contrary herein), Wells Fargo Bank, N.A. shall be liable for its
own fraud, negligence, willful misconduct and/or bad faith

     (g) The Events of Default  specified under Sections  5(a)(ii) - 5(a)(vi) of
the Form Master Agreement will not apply to either Party A or Party B.

     (h) With  respect to Party B only,  the  provisions  of  Section  5(a)(vii)
clause 2 of the Form  Master  Agreement  will not be  applicable  as an Event of
Default.

     (i) Without affecting the provisions of the Form Master Agreement requiring
the  calculation  of certain  net  payment  amounts,  as a result of an Event of
Default or Additional  Termination  Event or otherwise,  all payments  under the
Form Master Agreement will be made without setoff.

     (j) Party A agrees that it will not, prior to the date that is one year and
one day from the Trade Date, acquiesce in, petition or otherwise invoke or cause
Party B to invoke the  process of any court or  governmental  authority  for the
purpose of  commencing or sustaining a case against Party B under any federal or
state  bankruptcy,  insolvency or similar law or for the purpose of appointing a
receiver,  liquidator,  assignee,  trustee,  custodian,  sequestrator  or  other
similar official for Party B or any substantial part of the property of Party B,
or for the purpose of ordering the winding up or  liquidation  of the affairs of
Party B. Nothing herein (nor in the Form Master Agreement) shall prevent Party A
from participating in any such proceeding once commenced.

     (k) Section 9(b) of the Form Master  Agreement is hereby  amended by adding
the  following  at the end of such  Section:  ", and unless  the  Rating  Agency
Condition is satisfied,  unless such amendment  clarifies any term or provision,
corrects any inconsistency,  cures any ambiguity,  or corrects any typographical
error."

     (l) Before any  amendment  and/or  supplement  is made to any document that
pertains to the Form Master Agreement and/or any Transaction thereunder, Party B
must first obtain the prior  written  consent of Party A (such consent not to be
unreasonably  withheld) if such amendment and/or supplement would: (a) adversely
affect any of Party A's rights or obligations  under the Form Master  Agreement;
or (b) modify the  obligations  of, or impact the ability  of,  Party B to fully
perform any of Party B's obligations under the Form Master Agreement.

17.  Compliance   with  Regulation  AB.  In  connection  with  the  Pooling  and
Servicing  Agreement,  Party B represents that this Confirmation is a derivative
instrument as described in Item 1115 of Regulation AB under the  Securities  Act
of 1933 and the Securities  Exchange Act of 1934, as amended  ("Regulation AB"),
and not a credit support  contract  described in Item 1114 of Regulation AB.

                                       U-9
<PAGE>
     (a) In accordance with Regulation AB, Party A represents that: (i) the name
of the derivative counterparty is Bank of America, N.A.; (ii) the organizational
form of the derivative  counterparty is a national banking association organized
under the laws of the United  States;  and (iii) the  general  character  of the
business of the derivative  counterparty is to be engaged in a general  consumer
banking,  commercial  banking  and  trust  business,  offering  a wide  range of
commercial,  corporate,  international,  financial market,  retail and fiduciary
banking services.

     (b) Party A has been advised  that Party B (and/or  certain  affiliates  of
Party  B)  is  required  under  Regulation  AB  to  disclose  certain  financial
information  regarding  Party  A  depending  on  the  applicable   "significance
percentage" of this Confirmation,  as calculated from time to time in accordance
with Item 1115 of  Regulation  AB (as  discussed  in the Pooling  and  Servicing
Agreement).  Party A has been  advised by the Sponsor (as defined in the Pooling
and Servicing Agreement) that the applicable  "significance  percentage" of this
Confirmation  is less  than  10%,  and  accordingly,  no  financial  information
regarding  Party A need be disclosed in accordance  with Item 1115 of Regulation
AB.

     (c) If required,  Party A shall provide to Party B the applicable financial
information  described  under Item  1115(b)(1)  or  (b)(2),  as  applicable,  of
Regulation AB (the "Reg AB Information")  within five (5) Local Business Days of
receipt  of a  written  request  for  such  Reg AB  Information  by Party B (the
"Response Period"), so long as Party B has reasonably determined, in good faith,
that such information is required under Regulation AB; provided,  however,  that
if Party A, in good  faith,  determines  that it is unable to provide the Reg AB
Information  within the  Response  Period,  then,  subject to the Rating  Agency
Condition,  Party A shall  use  reasonable  efforts  to cause a Reg AB  Approved
Entity (as defined  below) to replace Party A as party to this  Confirmation  on
terms substantially  similar to this Confirmation prior to the expiration of the
Response Period.

     (d) "Reg AB Approved  Entity"  means any entity that (i) has the ability to
provide the Reg AB  Information  and (ii) meets or exceeds the  Approved  Rating
Thresholds  (as defined  below).  If Party B requests  (in  writing)  the Reg AB
Information  from Party A, then Party B shall  promptly (and in any event within
two  (2)  Local  Business  Days  of the  date  of the  request  for  the  Reg AB
Information)  provide Party A with a written explanation of how the significance
percentage was calculated.

     (e) "Approved Rating  Thresholds"  means an entity that has a long-term and
short-term  senior unsecured deposit rating of at least A and A-1 by S&P, A1 and
P-1 by Moody's or A and F1 by Fitch, to the extent such obligations are rated by
S&P, Moody's and Fitch.

Please confirm that the foregoing  correctly sets forth the terms and conditions
of our agreement by returning  within three (3) Business Days via  telecopier an
executed  copy  of this  Confirmation  to the  attention  of  Global  Derivative
Operations  (fax no.  1-866-255-1444)).  Failure to respond  within  such period
shall not affect the validity or enforceability  of this Transaction,  and shall
be deemed to be an  affirmation of the terms and  conditions  contained  herein,
absent manifest error.

                                      U-10
<PAGE>

Yours sincerely,

Bank of America, N.A.

By:      ________________________________________
         Name:
         Title:

Confirmed as of the date above:

Banc of America Funding  2006-7 Trust

By:  Wells  Fargo  Bank,  N.A.,  not in its  individual  capacity  but solely as
Securities Administrator on behalf of Banc of America Funding 2006-7 Trust

By:      __________________________________________
         Name:
         Title

                                      U-11

<PAGE>

                                   SCHEDULE A

                     Our Reference Numbers: 4862605 4862604

  Notional Amount (USD)      Start Date        End Date        Strike Rate
  ---------------------      ----------        --------        -----------
      48,338,190.15          11/25/2006       12/25/2006         8.47780
      46,552,527.99          12/25/2006        1/25/2007         7.05640
      44,647,608.11           1/25/2007        2/25/2007         6.82700
      42,628,942.80           2/25/2007        3/25/2007         6.82690
      40,502,557.15           3/25/2007        4/25/2007         7.56350
      38,275,423.75           4/25/2007        5/25/2007         6.82660
      35,957,146.71           5/25/2007        6/25/2007         7.05570
      33,563,602.21           6/25/2007        7/25/2007         6.82630
      31,196,174.56           7/25/2007        8/25/2007         7.05540
      28,895,719.91           8/25/2007        9/25/2007         6.82620
      26,660,717.04           9/25/2007       10/25/2007         6.82630
      24,489,308.18          10/25/2007       11/25/2007         7.05560
      22,379,688.19          11/25/2007       12/25/2007         6.82640
      20,330,103.05          12/25/2007        1/25/2008         7.05570
      18,338,848.46           1/25/2008        2/25/2008         6.82660
      16,404,268.41           2/25/2008        3/25/2008         6.82660
      14,524,753.80           3/25/2008        4/25/2008         7.30100
      12,698,741.14           4/25/2008        5/25/2008         6.82680
      10,924,711.24           5/25/2008        6/25/2008         7.05610
      9,201,187.98            6/25/2008        7/25/2008         6.82690
      7,526,737.06            7/25/2008        8/25/2008         7.05620
      5,899,964.82            8/25/2008        9/25/2008         6.82710
      4,319,517.14            9/25/2008       10/25/2008         6.82710
      2,784,078.24           10/25/2008       11/25/2008         7.05640
      1,292,369.67           11/25/2008       12/25/2008         6.82730

                                      U-12

<PAGE>
                                    EXHIBIT V

                           Principal Balance Schedules

     Distribution Date            PAC Certificates      TAC Certificates
     -------------------------------------------------------------------
     October 25, 2006             $152,464,000.00       $87,664,000.00
     November 25, 2006             152,464,000.00        86,946,536.45
     December 25, 2006             152,464,000.00        86,080,970.26
     January 25, 2007              152,464,000.00        85,067,863.79
     February 25, 2007             152,464,000.00        83,907,968.66
     March 25, 2007                152,464,000.00        82,602,301.62
     April 25, 2007                152,464,000.00        81,152,144.81
     May 25, 2007                  152,464,000.00        79,559,045.02
     June 25, 2007                 152,464,000.00        77,824,812.40
     July 25, 2007                 152,464,000.00        75,951,518.19
     August 25, 2007               152,464,000.00        73,941,491.77
     September 25, 2007            152,464,000.00        71,797,316.82
     October 25, 2007              151,533,169.66        70,452,657.13
     November 25, 2007             150,552,702.30        69,029,397.19
     December 25, 2007             149,523,093.63        67,530,357.30
     January 25, 2008              148,444,871.00        65,958,557.39
     February 25, 2008             147,318,593.01        64,317,209.72
     March 25, 2008                146,144,849.00        62,609,711.01
     April 25, 2008                144,924,258.63        60,839,633.68
     May 25, 2008                  143,657,471.31        59,010,716.62
     June 25, 2008                 142,345,165.64        57,126,855.29
     July 25, 2008                 140,988,048.86        55,192,091.17
     August 25, 2008               139,586,856.22        53,210,600.66
     September 25, 2008            138,142,350.31        51,186,683.59
     October 25, 2008              136,655,320.38        49,124,751.05
     November 25, 2008             135,129,743.14        47,034,673.52
     December 25, 2008             133,573,892.22        44,933,311.13
     January 25, 2009              131,988,529.15        42,824,173.80
     February 25, 2009             130,376,433.95        40,714,179.38
     March 25, 2009                128,775,038.26        38,668,175.29
     April 25, 2009                127,184,273.15        36,684,749.35
     May 25, 2009                  125,604,070.12        34,762,518.20
     June 25, 2009                 124,034,361.13        32,900,126.68
     July 25, 2009                 122,475,078.57        31,096,247.27
     August 25, 2009               120,926,155.28        29,349,579.53
     September 25, 2009            119,387,524.54        27,658,849.62
     October 25, 2009              117,859,120.06        26,022,809.67
     November 25, 2009             116,340,875.98        24,440,237.38
     December 25, 2009             114,832,726.89        22,909,935.41
     January 25, 2010              113,334,607.77        21,430,730.97
     February 25, 2010             111,846,454.05        20,001,475.26
     March 25, 2010                110,368,201.59        18,621,043.01
     April 25, 2010                108,899,786.64        17,288,332.08
     May 25, 2010                  107,441,145.89        16,002,262.90
     June 25, 2010                 105,992,216.43        14,761,778.07
     July 25, 2010                 104,552,935.76        13,565,841.93
     August 25, 2010               103,123,241.80        12,413,440.11
     September 25, 2010            101,703,072.87        11,303,579.08
     October 25, 2010              100,292,367.68        10,235,285.81
     November 25, 2010              98,891,065.37         9,207,607.27

                                      V-1
<PAGE>
     Distribution Date            PAC Certificates      TAC Certificates
     -------------------------------------------------------------------
     December 25, 2010              97,499,105.44         8,219,610.09
     January 25, 2011               96,116,427.81         7,270,380.17
     February 25, 2011              94,742,972.79         6,359,022.25
     March 25, 2011                 93,378,681.07         5,484,659.58
     April 25, 2011                 92,023,493.74         4,646,433.53
     May 25, 2011                   90,677,352.27         3,843,503.24
     June 25, 2011                  89,340,198.50         3,075,045.24
     July 25, 2011                  88,011,974.67         2,340,253.14
     August 25, 2011                86,692,623.39         1,638,337.25
     September 25, 2011             85,382,087.64           968,524.27
     October 25, 2011               84,080,310.79           330,056.97
     November 25, 2011              82,804,588.83              -
     December 25, 2011              81,537,444.21              -
     January 25, 2012               80,278,821.25              -
     February 25, 2012              79,028,664.65              -
     March 25, 2012                 77,786,919.45              -
     April 25, 2012                 76,553,531.08              -
     May 25, 2012                   75,328,445.28              -
     June 25, 2012                  74,111,608.19              -
     July 25, 2012                  72,902,966.26              -
     August 25, 2012                71,702,466.32              -
     September 25, 2012             70,510,055.52              -
     October 25, 2012               69,325,681.37              -
     November 25, 2012              68,154,870.45              -
     December 25, 2012              66,991,954.53              -
     January 25, 2013               65,836,882.18              -
     February 25, 2013              64,689,602.34              -
     March 25, 2013                 63,550,064.25              -
     April 25, 2013                 62,418,217.51              -
     May 25, 2013                   61,294,012.02              -
     June 25, 2013                  60,177,398.03              -
     July 25, 2013                  59,068,326.10              -
     August 25, 2013                57,966,747.11              -
     September 25, 2013             56,872,612.26              -
     October 25, 2013               55,785,873.08              -
     November 25, 2013              54,717,147.83              -
     December 25, 2013              53,655,627.46              -
     January 25, 2014               52,601,264.82              -
     February 25, 2014              51,554,013.06              -
     March 25, 2014                 50,516,557.76              -
     April 25, 2014                 49,499,142.62              -
     May 25, 2014                   48,501,390.92              -
     June 25, 2014                  47,522,932.92              -
     July 25, 2014                  46,563,405.69              -
     August 25, 2014                45,622,453.03              -
     September 25, 2014             44,699,725.32              -
     October 25, 2014               43,794,879.39              -
     November 25, 2014              42,930,746.43              -
     December 25, 2014              42,083,186.39              -
     January 25, 2015               41,251,887.59              -
     February 25, 2015              40,436,544.13              -
     March 25, 2015                 39,636,855.77              -
     April 25, 2015                 38,852,527.86              -
     May 25, 2015                   38,083,271.21              -
     June 25, 2015                  37,328,802.01              -

                                      V-2
<PAGE>
     Distribution Date            PAC Certificates      TAC Certificates
     -------------------------------------------------------------------
     July 25, 2015                  36,588,841.71              -
     August 25, 2015                35,863,116.93              -
     September 25, 2015             35,151,359.38              -
     October 25, 2015               34,453,305.76              -
     November 25, 2015              33,787,862.39              -
     December 25, 2015              33,134,938.81              -
     January 25, 2016               32,494,303.28              -
     February 25, 2016              31,865,728.34              -
     March 25, 2016                 31,248,990.66              -
     April 25, 2016                 30,643,871.03              -
     May 25, 2016                   30,046,073.91              -
     June 25, 2016                  29,450,233.91              -
     July 25, 2016                  28,865,668.70              -
     August 25, 2016                28,291,613.39              -
     September 25, 2016             27,728,254.91              -
     October 25, 2016               27,175,690.75              -
     November 25, 2016              26,633,718.81              -
     December 25, 2016              26,102,140.71              -
     January 25, 2017               25,580,761.75              -
     February 25, 2017              25,069,390.81              -
     March 25, 2017                 24,567,840.32              -
     April 25, 2017                 24,075,926.14              -
     May 25, 2017                   23,593,467.55              -
     June 25, 2017                  23,120,287.17              -
     July 25, 2017                  22,656,210.90              -
     August 25, 2017                22,201,067.84              -
     September 25, 2017             21,754,690.26              -
     October 25, 2017               21,316,913.53              -
     November 25, 2017              20,887,576.06              -
     December 25, 2017              20,466,519.26              -
     January 25, 2018               20,053,587.46              -
     February 25, 2018              19,648,627.86              -
     March 25, 2018                 19,251,490.53              -
     April 25, 2018                 18,862,028.26              -
     May 25, 2018                   18,480,096.59              -
     June 25, 2018                  18,105,553.76              -
     July 25, 2018                  17,738,260.59              -
     August 25, 2018                17,378,080.49              -
     September 25, 2018             17,024,879.43              -
     October 25, 2018               16,678,525.83              -
     November 25, 2018              16,338,890.57              -
     December 25, 2018              16,005,846.89              -
     January 25, 2019               15,679,270.43              -
     February 25, 2019              15,359,039.09              -
     March 25, 2019                 15,045,033.06              -
     April 25, 2019                 14,737,134.76              -
     May 25, 2019                   14,435,228.76              -
     June 25, 2019                  14,139,201.80              -
     July 25, 2019                  13,848,942.72              -
     August 25, 2019                13,564,342.40              -
     September 25, 2019             13,285,293.78              -
     October 25, 2019               13,011,691.77              -
     November 25, 2019              12,743,433.24              -
     December 25, 2019              12,480,416.96              -
     January 25, 2020               12,222,543.60              -

                                      V-3
<PAGE>
     Distribution Date            PAC Certificates      TAC Certificates
     -------------------------------------------------------------------
     February 25, 2020              11,969,715.68              -
     March 25, 2020                 11,721,837.51              -
     April 25, 2020                 11,478,815.20              -
     May 25, 2020                   11,240,556.60              -
     June 25, 2020                  11,006,971.28              -
     July 25, 2020                  10,777,970.48              -
     August 25, 2020                10,553,467.11              -
     September 25, 2020             10,333,375.69              -
     October 25, 2020               10,117,612.34              -
     November 25, 2020               9,906,094.73              -
     December 25, 2020               9,698,742.08              -
     January 25, 2021                9,495,475.11              -
     February 25, 2021               9,296,216.01              -
     March 25, 2021                  9,100,888.44              -
     April 25, 2021                  8,909,417.46              -
     May 25, 2021                    8,721,729.55              -
     June 25, 2021                   8,537,752.54              -
     July 25, 2021                   8,357,415.64              -
     August 25, 2021                 8,180,649.35              -
     September 25, 2021              8,007,275.18              -
     October 25, 2021                7,837,339.84              -
     November 25, 2021               7,670,777.59              -
     December 25, 2021               7,507,523.91              -
     January 25, 2022                7,347,515.51              -
     February 25, 2022               7,190,690.26              -
     March 25, 2022                  7,036,987.20              -
     April 25, 2022                  6,886,346.52              -
     May 25, 2022                    6,738,709.51              -
     June 25, 2022                   6,594,018.59              -
     July 25, 2022                   6,452,217.22              -
     August 25, 2022                 6,313,249.96              -
     September 25, 2022              6,177,062.37              -
     October 25, 2022                6,043,601.06              -
     November 25, 2022               5,912,813.63              -
     December 25, 2022               5,784,648.66              -
     January 25, 2023                5,659,055.70              -
     February 25, 2023               5,535,985.25              -
     March 25, 2023                  5,415,388.73              -
     April 25, 2023                  5,297,218.48              -
     May 25, 2023                    5,181,427.73              -
     June 25, 2023                   5,067,970.59              -
     July 25, 2023                   4,956,802.03              -
     August 25, 2023                 4,847,877.89              -
     September 25, 2023              4,741,154.80              -
     October 25, 2023                4,636,590.23              -
     November 25, 2023               4,534,142.46              -
     December 25, 2023               4,433,770.53              -
     January 25, 2024                4,335,434.28              -
     February 25, 2024               4,239,094.27              -
     March 25, 2024                  4,144,711.84              -
     April 25, 2024                  4,052,249.04              -
     May 25, 2024                    3,961,668.64              -
     June 25, 2024                   3,872,934.11              -
     July 25, 2024                   3,786,009.60              -
     August 25, 2024                 3,700,859.96              -

                                      V-4
<PAGE>
     Distribution Date            PAC Certificates      TAC Certificates
     -------------------------------------------------------------------
     September 25, 2024              3,617,450.69              -
     October 25, 2024                3,535,747.94              -
     November 25, 2024               3,455,718.49              -
     December 25, 2024               3,377,329.78              -
     January 25, 2025                3,300,549.83              -
     February 25, 2025               3,225,347.29              -
     March 25, 2025                  3,151,691.38              -
     April 25, 2025                  3,079,551.94              -
     May 25, 2025                    3,008,899.33              -
     June 25, 2025                   2,939,704.51              -
     July 25, 2025                   2,871,938.99              -
     August 25, 2025                 2,805,574.79              -
     September 25, 2025              2,740,584.49              -
     October 25, 2025                2,676,941.18              -
     November 25, 2025               2,614,618.45              -
     December 25, 2025               2,553,590.41              -
     January 25, 2026                2,493,831.65              -
     February 25, 2026               2,435,317.24              -
     March 25, 2026                  2,378,022.75              -
     April 25, 2026                  2,321,924.17              -
     May 25, 2026                    2,266,997.98              -
     June 25, 2026                   2,213,221.10              -
     July 25, 2026                   2,160,570.89              -
     August 25, 2026                 2,109,195.42              -
     September 25, 2026              2,059,097.98              -
     October 25, 2026                2,010,050.64              -
     November 25, 2026               1,962,032.72              -
     December 25, 2026               1,915,023.89              -
     January 25, 2027                1,869,004.22              -
     February 25, 2027               1,823,954.18              -
     March 25, 2027                  1,779,854.58              -
     April 25, 2027                  1,736,686.63              -
     May 25, 2027                    1,694,431.87              -
     June 25, 2027                   1,653,072.21              -
     July 25, 2027                   1,612,589.90              -
     August 25, 2027                 1,572,967.52              -
     September 25, 2027              1,534,188.00              -
     October 25, 2027                1,496,234.59              -
     November 25, 2027               1,459,090.86              -
     December 25, 2027               1,422,740.69              -
     January 25, 2028                1,387,168.27              -
     February 25, 2028               1,352,358.10              -
     March 25, 2028                  1,318,294.97              -
     April 25, 2028                  1,284,963.98              -
     May 25, 2028                    1,252,350.48              -
     June 25, 2028                   1,220,440.13              -
     July 25, 2028                   1,189,218.85              -
     August 25, 2028                 1,158,672.86              -
     September 25, 2028              1,128,788.60              -
     October 25, 2028                1,099,552.80              -
     November 25, 2028               1,070,952.44              -
     December 25, 2028               1,042,974.76              -
     January 25, 2029                1,015,607.22              -
     February 25, 2029                 988,837.55              -
     March 25, 2029                    962,653.69              -

                                      V-5
<PAGE>
     Distribution Date            PAC Certificates      TAC Certificates
     -------------------------------------------------------------------
     April 25, 2029                    937,043.83              -
     May 25, 2029                      911,996.40              -
     June 25, 2029                     887,500.02              -
     July 25, 2029                     863,543.55              -
     August 25, 2029                   840,116.08              -
     September 25, 2029                817,206.87              -
     October 25, 2029                  794,805.42              -
     November 25, 2029                 772,901.44              -
     December 25, 2029                 751,484.80              -
     January 25, 2030                  730,545.61              -
     February 25, 2030                 710,074.15              -
     March 25, 2030                    690,060.88              -
     April 25, 2030                    670,496.47              -
     May 25, 2030                      651,371.75              -
     June 25, 2030                     632,677.73              -
     July 25, 2030                     614,405.61              -
     August 25, 2030                   596,546.75              -
     September 25, 2030                579,092.68              -
     October 25, 2030                  562,035.10              -
     November 25, 2030                 545,365.86              -
     December 25, 2030                 529,076.97              -
     January 25, 2031                  513,160.61              -
     February 25, 2031                 497,609.11              -
     March 25, 2031                    482,414.93              -
     April 25, 2031                    467,570.71              -
     May 25, 2031                      453,069.19              -
     June 25, 2031                     438,903.30              -
     July 25, 2031                     425,066.07              -
     August 25, 2031                   411,550.70              -
     September 25, 2031                398,374.66              -
     October 25, 2031                  385,506.49              -
     November 25, 2031                 372,939.80              -
     December 25, 2031                 360,668.30              -
     January 25, 2032                  348,685.84              -
     February 25, 2032                 336,986.37              -
     March 25, 2032                    325,563.98              -
     April 25, 2032                    314,412.87              -
     May 25, 2032                      303,527.35              -
     June 25, 2032                     292,901.84              -
     July 25, 2032                     282,530.88              -
     August 25, 2032                   272,409.12              -
     September 25, 2032                262,531.30              -
     October 25, 2032                  252,892.27              -
     November 25, 2032                 243,487.00              -
     December 25, 2032                 234,310.53              -
     January 25, 2033                  225,358.01              -
     February 25, 2033                 216,624.70              -
     March 25, 2033                    208,105.94              -
     April 25, 2033                    199,797.16              -
     May 25, 2033                      191,693.89              -
     June 25, 2033                     183,791.74              -
     July 25, 2033                     176,086.43              -
     August 25, 2033                   168,573.72              -
     September 25, 2033                161,249.51              -
     October 25, 2033                  154,109.73              -

                                      V-6
<PAGE>
     Distribution Date            PAC Certificates      TAC Certificates
     -------------------------------------------------------------------
     November 25, 2033                 147,150.43              -
     December 25, 2033                 140,367.73              -
     January 25, 2034                  133,757.80              -
     February 25, 2034                 127,316.93              -
     March 25, 2034                    121,041.45              -
     April 25, 2034                    114,927.79              -
     May 25, 2034                      108,972.42              -
     June 25, 2034                     103,171.91              -
     July 25, 2034                      97,522.89              -
     August 25, 2034                    92,022.04              -
     September 25, 2034                 86,666.14              -
     October 25, 2034                   81,452.02              -
     November 25, 2034                  76,376.55              -
     December 25, 2034                  71,436.70              -
     January 25, 2035                   66,629.49              -
     February 25, 2035                  61,951.98              -
     March 25, 2035                     57,401.32              -
     April 25, 2035                     52,974.70              -
     May 25, 2035                       48,669.37              -
     June 25, 2035                      44,482.63              -
     July 25, 2035                      40,418.52              -
     August 25, 2035                    36,467.58              -
     September 25, 2035                 32,627.29              -
     October 25, 2035                   28,895.15              -
     November 25, 2035                  25,268.75              -
     December 25, 2035                  21,745.71              -
     January 25, 2036                   18,323.70              -
     February 25, 2036                  15,000.44              -
     March 25, 2036                     11,773.70              -
     April 25, 2036                      8,641.29              -
     May 25, 2036                        5,795.90              -
     June 25, 2036                       3,504.37              -
     July 25, 2036                       1,280.83              -

                                      V-7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]