Document:

HSI
      ASSET
      SECURITIZATION CORPORATION,

    Depositor,

     

    OPTION
      ONE MORTGAGE CORPORATION,

    Originator
      and Servicer,

     

    CITIMORTGAGE,
      INC.,

    Master
      Servicer,

     

    CITIBANK,
      N.A.,

    Securities
      Administrator

     

    WELLS
      FARGO BANK, N.A.,

    Custodian,

     

    DEUTSCHE
      BANK NATIONAL TRUST COMPANY,

    Trustee

     

    and

     

    OFFICETIGER
      GLOBAL REAL ESTATE SERVICES INC.,

    Credit
      Risk Manager

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of January 1, 2007

     

    HSI
      ASSET
      SECURITIZATION CORPORATION TRUST 2007-OPT1

     

    MORTGAGE
      PASS-THROUGH CERTIFICATES,

    SERIES 2007-OPT1

     

     

    
      

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

    Page

     

    
      	
              ARTICLE
                I

               

              DEFINITIONS

            
	 	 	 
	
              ARTICLE
                II

               

              CONVEYANCE
                OF MORTGAGE LOANS;

              REPRESENTATIONS
                AND WARRANTIES

            
	 	 	 
	
              Section
                2.01

            	
              Conveyance
                of Mortgage Loans

            	
              49

            
	
              Section
                2.02

            	
              Acceptance
                by the Custodian of the Mortgage Loans

            	
              53

            
	
              Section
                2.03

            	
              Representations,
                Warranties and Covenants of the Originator and the Servicer; Remedies
                for
                Breaches of Representations and Warranties with Respect to the Mortgage
                Loans

            	
              54

            
	
              Section
                2.04

            	
              Execution
                and Delivery of Certificates

            	
              57

            
	
              Section
                2.05

            	
              REMIC
                Matters

            	
              58

            
	
              Section
                2.06

            	
              Representations
                and Warranties of the Depositor

            	
              58

            
	 	 	 
	
              ARTICLE
                III

               

              ADMINISTRATION
                AND SERVICING

              OF
                MORTGAGE LOANS

            
	 	 	 
	
              Section
                3.01

            	
              Servicer
                to Service Mortgage Loans

            	
              59

            
	
              Section
                3.02

            	
              Subservicing
                Agreements between Servicer and Subservicers; Use of
                Subcontractors

            	
              61

            
	
              Section
                3.03

            	
              Successor
                Subservicers

            	
              63

            
	
              Section
                3.04

            	
              Liability
                of the Servicer

            	
              63

            
	
              Section
                3.05

            	
              No
                Contractual Relationship between Subservicers and the Master
                Servicer

            	
              63

            
	
              Section
                3.06

            	
              Assumption
                or Termination of Subservicing Agreements by Master
                Servicer

            	
              63

            
	
              Section
                3.07

            	
              Collection
                of Certain Mortgage Loan Payments

            	
              64

            
	
              Section
                3.08

            	
              Subservicing
                Accounts

            	
              67

            
	
              Section
                3.09

            	
              Collection
                of Taxes, Assessments and Similar Items; Escrow Accounts

            	
              67

            
	
              Section
                3.10

            	
              Collection
                Account

            	
              68

            
	
              Section
                3.11

            	
              Withdrawals
                from the Collection Account

            	
              69

            
	
              Section
                3.12

            	
              Investment
                of Funds in the Collection Account and Escrow Account

            	
              71

            
	
              Section
                3.13

            	
              Maintenance
                of Hazard Insurance and Errors and Omissions and Fidelity
                Coverage

            	
              72

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                3.14

            	
              Enforcement
                of Due-On-Sale Clauses; Assumption Agreements

            	
              73

            
	
              Section
                3.15

            	
              Realization
                upon Defaulted Mortgage Loans

            	
              74

            
	
              Section
                3.16

            	
              Release
                of Mortgage Files

            	
              76

            
	
              Section
                3.17

            	
              Title,
                Conservation and Disposition of REO Property

            	
              77

            
	
              Section
                3.18

            	
              Notification
                of Adjustments

            	
              78

            
	
              Section
                3.19

            	
              Access
                to Certain Documentation and Information Regarding the Mortgage
                Loans

            	
              79

            
	
              Section
                3.20

            	
              Documents,
                Records and Funds in Possession of the Servicer to Be Held for the
                Trustee

            	
              79

            
	
              Section
                3.21

            	
              Servicing
                Compensation

            	
              79

            
	
              Section
                3.22

            	
              Report
                on Assessment of Compliance with Relevant Servicing
                Criteria.

            	
              80

            
	
              Section
                3.23

            	
              Report
                on Attestation of Compliance with Relevant Servicing
                Criteria.

            	
              81

            
	
              Section
                3.24

            	
              Annual
                Officer’s Certificates.

            	
              82

            
	
              Section
                3.25

            	
              Master
                Servicer to Act as Servicer

            	
              83

            
	
              Section
                3.26

            	
              Compensating
                Interest

            	
              84

            
	
              Section
                3.27

            	
              Credit
                Reporting; Gramm-Leach-Bliley Act

            	
              84

            
	
              Section
                3.28

            	
              [Reserved]

            	
              84

            
	
              Section
                3.29

            	
              Notifications
                to Parties.

            	
              84

            
	
              Section
                3.30

            	
              Indemnification.

            	
              84

            
	 	 	 
	
              ARTICLE
                IV

               

              DISTRIBUTIONS
                AND

              ADVANCES
                BY THE SERVICER

            
	 	 	 
	
              Section
                4.01

            	
              Advances

            	
              85

            
	
              Section
                4.02

            	
              Priorities
                of Distribution

            	
              87

            
	
              Section
                4.03

            	
              Monthly
                Statements to Certificateholders

            	
              92

            
	
              Section
                4.04

            	
              Certain
                Matters Relating to the Determination of LIBOR

            	
              96

            
	
              Section
                4.05

            	
              Allocation
                of Applied Realized Loss Amounts

            	
              96

            
	
              Section
                4.06

            	
              Supplemental
                Interest Trust.

            	
              96

            
	
              Section
                4.07

            	
              Rights
                of the Swap Counterparty.

            	
              98

            
	
              Section
                4.08

            	
              Termination
                Receipts.

            	
              99

            
	 	 	 
	
              ARTICLE
                V

               

              THE
                CERTIFICATES

            
	 	 	 
	
              Section
                5.01

            	
              The
                Certificates

            	
              100

            
	
              Section
                5.02

            	
              Certificate
                Register; Registration of Transfer and Exchange of
                Certificates

            	
              101

            
	
              Section
                5.03

            	
              Mutilated,
                Destroyed, Lost or Stolen Certificates

            	
              107

            
	
              Section
                5.04

            	
              Persons
                Deemed Owners

            	
              108

            
	
              Section
                5.05

            	
              Access
                to List of Certificateholders’ Names and Addresses

            	
              108

            
	
              Section
                5.06

            	
              Maintenance
                of Office or Agency

            	
              108

            
	 	 	 

    

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

     

    
      	
              ARTICLE
                VI

               

              THE
                DEPOSITOR AND THE SERVICER

            
	 	 	 
	
              Section
                6.01

            	
              Respective
                Liabilities of the Depositor and the Servicer

            	
              108

            
	
              Section
                6.02

            	
              Merger
                or Consolidation of the Depositor or the Servicer

            	
              108

            
	
              Section
                6.03

            	
              Limitation
                on Liability of the Depositor, the Servicer and Others.

            	
              109

            
	
              Section
                6.04

            	
              Limitation
                on Resignation of the Servicer.

            	
              110

            
	
              Section
                6.05

            	
              Additional
                Indemnification by the Servicer; Third Party Claims.

            	
              110

            
	
              Section
                6.06

            	
              Compliance
                with Regulation AB; Cooperation of Parties

            	
              111

            
	 	 	 
	
              ARTICLE
                VII

               

              DEFAULT

            
	 	 	 
	
              Section
                7.01

            	
              Events
                of Default

            	
              111

            
	
              Section
                7.02

            	
              Master
                Servicer to Act; Appointment of Successor

            	
              114

            
	
              Section
                7.03

            	
              Notification
                to Certificateholders

            	
              116

            
	 	 	 
	
              ARTICLE
                VIII

               

              CONCERNING
                THE TRUSTEE

            
	 	 	 
	
              Section
                8.01

            	
              Duties
                of the Trustee

            	
              116

            
	
              Section
                8.02

            	
              Certain
                Matters Affecting the Trustee

            	
              117

            
	
              Section
                8.03

            	
              Trustee
                Not Liable for Certificates or Mortgage Loans

            	
              118

            
	
              Section
                8.04

            	
              Trustee
                May Own Certificates

            	
              119

            
	
              Section
                8.05

            	
              Trustee’s
                Fees Indemnification and Expenses

            	
              119

            
	
              Section
                8.06

            	
              Eligibility
                Requirements for the Trustee

            	
              120

            
	
              Section
                8.07

            	
              Resignation
                and Removal of the Trustee

            	
              120

            
	
              Section
                8.08

            	
              Successor
                Trustee

            	
              121

            
	
              Section
                8.09

            	
              Merger
                or Consolidation of the Trustee

            	
              122

            
	
              Section
                8.10

            	
              Appointment
                of Co-Trustee or Separate Trustee

            	
              122

            
	
              Section
                8.11

            	
              Tax
                Matters

            	
              123

            
	
              Section
                8.12

            	
              Commission
                Reporting

            	
              127

            
	
              Section
                8.13

            	
              Tax
                Classification of the Excess Reserve Fund Account and the Supplemental
                Interest Trust

            	
              134

            
	 	 	 
	
              ARTICLE
                IX

               

              ADMINISTRATION
                OF THE MORTGAGE LOANS

              BY
                THE MASTER SERVICER

            
	 	 	 
	
              Section
                9.01

            	
              Duties
                of the Master Servicer; Enforcement of Servicer’s
                Obligations.

            	
              134

            
	
              Section
                9.02

            	
              Provision
                to the Securities Administrator of Loan-Level Information

            	
              135

            
	
              Section
                9.03

            	
              [Reserved]

            	
              136

            

    

     

    
      
        
        

      

      
        -iii-

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                9.04

            	
              Maintenance
                of Fidelity Bond and Errors and Omissions Insurance.

            	
              136

            
	
              Section
                9.05

            	
              Representations
                and Warranties of the Master Servicer

            	
              136

            
	
              Section
                9.06

            	
              Master
                Servicer Events of Default

            	
              137

            
	
              Section
                9.07

            	
              Waiver
                of Default.

            	
              139

            
	
              Section
                9.08

            	
              Successor
                to the Master Servicer.

            	
              139

            
	
              Section
                9.09

            	
              [Reserved].

            	
              140

            
	
              Section
                9.10

            	
              Merger
                or Consolidation.

            	
              140

            
	
              Section
                9.11

            	
              Resignation
                of the Master Servicer.

            	
              141

            
	
              Section
                9.12

            	
              Assignment
                or Delegation of Duties by the Master Servicer.

            	
              141

            
	
              Section
                9.13

            	
              Limitation
                on Liability of the Master Servicer.

            	
              141

            
	
              Section
                9.14

            	
              Indemnification;
                Third Party Claims.

            	
              142

            
	
              Section
                9.15

            	
              Duties
                of the Credit Risk Manager.

            	
              142

            
	
              Section
                9.16

            	
              Limitation
                Upon Liability of the Credit Risk Manager.

            	
              144

            
	
              Section
                9.17

            	
              Removal
                and Resignation of Credit Risk Manager.

            	
              144

            
	 	 	 
	
              ARTICLE
                X

               

              CONCERNING
                THE SECURITIES ADMINISTRATOR

            
	 	 	 
	
              Section
                10.01

            	
              Duties
                of Securities Administrator.

            	
              144

            
	
              Section
                10.02

            	
              Certain
                Matters Affecting the Securities Administrator.

            	
              145

            
	
              Section
                10.03

            	
              Securities
                Administrator Not Liable for Certificates or Mortgage
                Loans.

            	
              148

            
	
              Section
                10.04

            	
              Securities
                Administrator May Own Certificates.

            	
              148

            
	
              Section
                10.05

            	
              Securities
                Administrator’s Fees and Expenses.

            	
              148

            
	
              Section
                10.06

            	
              Eligibility
                Requirements for Securities Administrator.

            	
              149

            
	
              Section
                10.07

            	
              Resignation
                and Removal of Securities Administrator.

            	
              150

            
	
              Section
                10.08

            	
              Successor
                Securities Administrator.

            	
              150

            
	
              Section
                10.09

            	
              Merger
                or Consolidation of Securities Administrator.

            	
              151

            
	
              Section
                10.10

            	
              Assignment
                or Delegation of Duties by the Securities Administrator.

            	
              151

            
	
              Section
                10.11

            	
              Dissemination
                of Confidential Information.

            	
              152

            
	 	 	 
	
              ARTICLE
                XI

               

              TERMINATION

            
	 	 	 
	
              Section
                11.01

            	
              Termination
                upon Liquidation or Purchase of the Mortgage Loans

            	
              152

            
	
              Section
                11.02

            	
              Final
                Distribution on the Certificates

            	
              153

            
	
              Section
                11.03

            	
              Additional
                Termination Requirements

            	
              154

            
	 	 	 
	
              ARTICLE
                XII

               

              MISCELLANEOUS
                PROVISIONS

            
	 	 	 
	
              Section
                12.01

            	
              Amendment

            	
              155

            
	
              Section
                12.02

            	
              Recordation
                of Agreement; Counterparts

            	
              157

            
	
              Section
                12.03

            	
              Governing
                Law

            	
              157

            

    

     

    
      
        
        

      

      
        -iv-

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                12.04

            	
              Intention
                of Parties

            	
              157

            
	
              Section
                12.05

            	
              Notices

            	
              158

            
	
              Section
                12.06

            	
              Severability
                of Provisions

            	
              160

            
	
              Section
                12.07

            	
              Assignment

            	
              160

            
	
              Section
                12.08

            	
              Limitation
                on Rights of Certificateholders

            	
              160

            
	
              Section
                12.09

            	
              Inspection
                and Audit Rights

            	
              161

            
	
              Section
                12.10

            	
              Certificates
                Nonassessable and Fully Paid

            	
              161

            
	
              Section
                12.11

            	
              Rule of
                Construction

            	
              161

            
	
              Section
                12.12

            	
              Waiver
                of Jury Trial

            	
              161

            

    

     

     

     

     

    
 

    
      
        
        

      

      
        -v-

        
          

        

      

      
        
        

      

    

    SCHEDULES

    

    
      	
              Schedule I

            	
              Mortgage
                Loan Schedule

            

    

    
      	
              Schedule II

            	
              Representations
                and Warranties of Option One Mortgage Corporation, as
                Servicer

            

    

    
      	
              Schedule III

            	
              Representations
                and Warranties of Option One Mortgage Corporation, as
                Originator

            

    

    
      	
              Schedule IV

            	
              Representations
                and Warranties of the Originator as to the Individual Mortgage
                Loans

            

    

     

    EXHIBITS

     

    
      	
              Exhibit A

            	
              Form
                of Class A and Class M
                Certificates

            

    

    
      	
              Exhibit B

            	
              Form
                of Class P Certificate

            

    

    
      	
              Exhibit C

            	
              Form
                of Class R Certificate

            

    

    
      	
              Exhibit D

            	
              Form
                of Class X Certificate

            

    

    
      	
              Exhibit E

            	
              Form
                of Initial Certification of
                Custodian

            

    

    
      	
              Exhibit F

            	
              Form
                of Document Certification and Exception Report of
                Custodian

            

    

    
      	
              Exhibit G

            	
              Form
                of Residual Transfer Affidavit

            

    

    
      	
              Exhibit H

            	
              Form
                of Transferor Certificate

            

    

    
      	
              Exhibit I-A

            	
              Form
                of Rule 144A Investment Letter

            

    

    
      	
              Exhibit
                I-B

            	
              Form
                of Regulation S Investment Letter

            

    

    
      	
              Exhibit J

            	
              Form
                of Request for Release

            

    

    
      	
              Exhibit K

            	
              Contents
                for Each Mortgage File

            

    

    
      	
              Exhibit L

            	
              Form
                of Sarbanes-Oxley Certification to be Provided by Master Servicer
                (or
                other Certification Party) signing
                Form 10-K

            

    

    
      	
              Exhibit
                M

            	
              Form
                of Servicer (or Servicing Function Participant) Back-Up Sarbanes-Oxley
                Certification

            

    

    
      	
              Exhibit
                N

            	
              Form
                of Limited Power of Attorney

            

    

    
      	
              Exhibit
                O

            	
              Form
                of Swap Agreement

            

    

    
      	
              Exhibit
                P 

            	
              Form
                of Cap Agreement

            

    

    
      	
              Exhibit
                Q

            	
              Second
                Amended and Restated Master Mortgage Loan Purchase and Servicing
                Agreement

            

    

    
      	
              Exhibit
                R

            	
              [Reserved]

            

    

    
      	
              Exhibit
                S

            	
              Servicing
                Criteria Matrix

            

    

    
      	
              Exhibit
                T

            	
              Transaction
                Parties

            

    

    
      	
              Exhibit
                U

            	
              Form
                of Annual Compliance Certificate

            

    

    
      	
              Exhibit
                V

            	
              Additional
                Form 10-D Disclosure

            

    

    
      	
              Exhibit
                W

            	
              Additional
                Form 10-K Disclosure

            

    

    
      	
              Exhibit
                X

            	
              Form
                8-K Disclosure Information

            

    

    
      	
              Exhibit
                Y

            	
              Additional
                Disclosure Notification

            

    

    

    

    
      
        
        

      

      
        -vi-

        
          

        

      

      
        
        

      

    

    THIS
      POOLING AND SERVICING AGREEMENT, dated as of January 1, 2007, among HSI ASSET
      SECURITIZATION CORPORATION, as depositor (the “Depositor”),
      OPTION ONE MORTGAGE CORPORATION, a California corporation, as originator (in
      such capacity, the “Originator”)
      and
      servicer (in such capacity, the “Servicer”),
      WELLS
      FARGO BANK, N.A., a national banking association, as custodian (“the
Custodian”),
      CITIMORTGAGE, INC., as master servicer (the “Master
      Servicer”),
      CITIBANK, N.A., as securities administrator (the “Securities
      Administrator”),
      OFFICETIGER GLOBAL REAL ESTATE SERVICES INC., as credit risk manager (the
“Credit
      Risk Manager”),
      and
      DEUTSCHE BANK NATIONAL TRUST COMPANY, a national banking association, as trustee
      (the “Trustee”).

    

    WITNESSETH:

    

    In
      consideration of the mutual agreements herein contained, the parties hereto
      agree as follows:

    

    PRELIMINARY
      STATEMENT

    

    The
      Securities Administrator on behalf of the Trust Fund (exclusive of (i) the
      Swap
      Agreement, (ii) the Cap Agreement, (iii) the right to receive and the obligation
      to pay Basis Risk Carryover Amounts, (iv) the Excess Reserve Fund Account,
      (v)
      the Supplemental Interest Trust and the Supplemental Interest Trust Account,
      (vi) the Collateral Account, and (vi) the obligations to pay Class I Shortfalls
      (collectively, the “Excluded
      Trust Assets”)
      shall
      elect that two segregated asset pools within the Trust Fund be treated for
      federal income tax purposes as comprising three real estate mortgage investment
      conduits under Section 860D of the Code (each a “REMIC”
or,
      in
      the alternative, “REMIC 1,” REMIC 2” and “REMIC 3,” REMIC 3 also being referred
      to herein as the “Upper
      Tier REMIC.”)
      Any
      inconsistencies or ambiguities in this Agreement or in the administration of
      this Agreement shall be resolved in a manner that preserves the validity of
      such
      REMIC election. 

    

    Each
      Certificate, other than the Class R Certificates, represents ownership of a
      regular interest in the Upper Tier REMIC for purposes of the REMIC Provisions.
      In addition, each Certificate, other than the Class R, Class X and Class P
      Certificates, represents (i) the right to receive payments with respect to
      any
      Basis Risk Carryover Amounts and (ii) the obligation to pay Class I Shortfalls.
      The Class R Certificate represents ownership of the sole Class of residual
      interest in each of REMIC 1, REMIC 2 and the Upper Tier REMIC for purposes
      of
      the REMIC Provisions.

    

    The
      Upper Tier REMIC shall hold as its assets the uncertificated Lower Tier
      Interests in REMIC 2, other than the Class LT2-R interest, and each such Lower
      Tier Interest is hereby designated as a regular interest in REMIC 2 for purposes
      of the REMIC Provisions. REMIC 2 shall hold as its assets the uncertificated
      Lower Tier Interests in REMIC 1, other than the Class LT1-R interest, and each
      such Lower Tier Interest is hereby designated as a regular interest in REMIC
      1.
      REMIC 1 shall hold as its assets the property of the Trust Fund other than
      the
      Lower Tier Interests in REMIC 1 and REMIC 2 and the Excluded Trust
      Assets.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    REMIC
      1:

    

    The
      following table sets forth the designations, principal balances and interest
      rates for each interest in REMIC 1, each of which (other than the Class LT1-R
      Lower Tier Interest) is hereby designated as a regular interest in REMIC 1
      (the
“REMIC 1 Regular Interests”):

    

    
      	
              Class
                Designation

            	
              Initial Principal

              Balance

            	
              Interest
                Rate

            
	
              LT1-A

            	
              $      35,609,131.03

            	
              (1)

            
	
              LT1-F1

            	
              $        7,381,728.00

            	
              (2)

            
	
              LT1-V1

            	
              $        7,381,728.00

            	
              (3)

            
	
              LT1-F2

            	
              $        8,621,109.00

            	
              (2)

            
	
              LT1-V2

            	
              $        8,621,109.00

            	
              (3)

            
	
              LT1-F3

            	
              $        9,838,730.50

            	
              (2)

            
	
              LT1-V3

            	
              $        9,838,730.50

            	
              (3)

            
	
              LT1-F4

            	
              $      11,021,286.50

            	
              (2)

            
	
              LT1-V4

            	
              $      11,021,286.50

            	
              (3)

            
	
              LT1-F5

            	
              $      12,154,211.50

            	
              (2)

            
	
              LT1-V5

            	
              $      12,154,211.50

            	
              (3)

            
	
              LT1-F6

            	
              $      13,224,869.50

            	
              (2)

            
	
              LT1-V6

            	
              $      13,224,869.50

            	
              (3)

            
	
              LT1-F7

            	
              $      14,215,460.50

            	
              (2)

            
	
              LT1-V7

            	
              $      14,215,460.50

            	
              (3)

            
	
              LT1-F8

            	
              $      14,444,993.00

            	
              (2)

            
	
              LT1-V8

            	
              $      14,444,993.00

            	
              (3)

            
	
              LT1-F9

            	
              $      13,738,017.00

            	
              (2)

            
	
              LT1-V9

            	
              $      13,738,017.00

            	
              (3)

            
	
              LT1-F10

            	
              $      13,065,606.00

            	
              (2)

            
	
              LT1-V10

            	
              $      13,065,606.00

            	
              (3)

            
	
              LT1-F11

            	
              $      12,426,072.00

            	
              (2)

            
	
              LT1-V11

            	
              $      12,426,072.00

            	
              (3)

            
	
              LT1-F12

            	
              $      11,817,808.00

            	
              (2)

            
	
              LT1-V12

            	
              $      11,817,808.00

            	
              (3)

            
	
              LT1-F13

            	
              $      11,239,287.00

            	
              (2)

            
	
              LT1-V13

            	
              $      11,239,287.00

            	
              (3)

            
	
              LT1-F14

            	
              $      10,689,057.00

            	
              (2)

            
	
              LT1-V14

            	
              $      10,689,057.00

            	
              (3)

            
	
              LT1-F15

            	
              $      10,165,733.50

            	
              (2)

            
	
              LT1-V15

            	
              $      10,165,733.50

            	
              (3)

            
	
              LT1-F16

            	
              $        9,668,004.00

            	
              (2)

            
	
              LT1-V16

            	
              $        9,668,004.00

            	
              (3)

            
	
              LT1-F17

            	
              $        9,206,689.50

            	
              (2)

            
	
              LT1-V17

            	
              $        9,206,689.50

            	
              (3)

            
	
              LT1-F18

            	
              $      12,810,272.50

            	
              (2)

            

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    
      	
              Class
                Designation

            	
              Initial Principal

              Balance

            	
              Interest
                Rate

            
	
              LT1-V18

            	
              $      12,810,272.50

            	
              (3)

            
	
              LT1-F19

            	
              $      16,788,202.00

            	
              (2)

            
	
              LT1-V19

            	
              $      16,788,202.00

            	
              (3)

            
	
              LT1-F20

            	
              $      15,005,887.00

            	
              (2)

            
	
              LT1-V20

            	
              $      15,005,887.00

            	
              (3)

            
	
              LT1-F21

            	
              $      13,413,992.00

            	
              (2)

            
	
              LT1-V21

            	
              $      13,413,992.00

            	
              (3)

            
	
              LT1-F22

            	
              $      12,001,268.50

            	
              (2)

            
	
              LT1-V22

            	
              $      12,001,268.50

            	
              (3)

            
	
              LT1-F23

            	
              $        8,911,385.50

            	
              (2)

            
	
              LT1-V23

            	
              $        8,911,385.50

            	
              (3)

            
	
              LT1-F24

            	
              $        5,811,909.00

            	
              (2)

            
	
              LT1-V24

            	
              $        5,811,909.00

            	
              (3)

            
	
              LT1-F25

            	
              $        5,480,491.00

            	
              (2)

            
	
              LT1-V25

            	
              $        5,480,491.00

            	
              (3)

            
	
              LT1-F26

            	
              $        5,338,749.00

            	
              (2)

            
	
              LT1-V26

            	
              $        5,338,749.00

            	
              (3)

            
	
              LT1-F27

            	
              $        5,487,256.50

            	
              (2)

            
	
              LT1-V27

            	
              $        5,487,256.50

            	
              (3)

            
	
              LT1-F28

            	
              $        5,099,916.50

            	
              (2)

            
	
              LT1-V28

            	
              $        5,099,916.50

            	
              (3)

            
	
              LT1-F29

            	
              $        4,742,217.00

            	
              (2)

            
	
              LT1-V29

            	
              $        4,742,217.00

            	
              (3)

            
	
              LT1-F30

            	
              $        4,410,159.50

            	
              (2)

            
	
              LT1-V30

            	
              $        4,410,159.50

            	
              (3)

            
	
              LT1-F31

            	
              $        4,104,774.50

            	
              (2)

            
	
              LT1-V31

            	
              $        4,104,774.50

            	
              (3)

            
	
              LT1-F32

            	
              $        3,818,451.00

            	
              (2)

            
	
              LT1-V32

            	
              $        3,818,451.00

            	
              (3)

            
	
              LT1-F33

            	
              $        3,492,068.00

            	
              (2)

            
	
              LT1-V33

            	
              $        3,492,068.00

            	
              (3)

            
	
              LT1-F34

            	
              $        3,088,571.50

            	
              (2)

            
	
              LT1-V34

            	
              $        3,088,571.50

            	
              (3)

            
	
              LT1-F35

            	
              $        2,903,507.00

            	
              (2)

            
	
              LT1-V35

            	
              $        2,903,507.00

            	
              (3)

            
	
              LT1-F36

            	
              $        2,729,541.00

            	
              (2)

            
	
              LT1-V36

            	
              $        2,729,541.00

            	
              (3)

            
	
              LT1-F37

            	
              $        2,566,006.50

            	
              (2)

            
	
              LT1-V37

            	
              $        2,566,006.50

            	
              (3)

            
	
              LT1-F38

            	
              $        2,412,277.00

            	
              (2)

            
	
              LT1-V38

            	
              $        2,412,277.00

            	
              (3)

            
	
              LT1-F39

            	
              $      37,897,790.00

            	
              (2)

            
	
              LT1-V39

            	
              $      37,897,790.00

            	
              (3)

            
	
              LT1-R

            	
              (4)

            	
              (4)

            

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (1)

            	
              For
                any Distribution Date (and the related Interest Accrual Period) the
                interest rate for the Class LT1-A Interest shall be the Net WAC Rate.
                

            

    

    

    
      	 	
              (2)

            	
              For
                any Distribution Date (and the related Interest Accrual Period) the
                interest rate for each of these Lower Tier Interests shall be the
                lesser
                of (i) 10.20% and (ii) the product of (a) the Net WAC Rate and (b)
                2.

            

    

    

    
      	 	
              (3)

            	
              For
                any Distribution Date (and the related Interest Accrual Period) the
                interest rate for each of these Lower Tier Interests shall be the
                excess,
                if any, of (i) the product of (a) the Net WAC Rate and (b) 2, over
                (ii)
                10.20%.

            

    

    

    
      	 	
              (4)

            	
              The
                Class LT1-R interest shall not have a principal amount and shall
                not bear
                interest. The Class LT1-R interest is hereby designated as the sole
                class
                of residual interest in REMIC 1.

            

    

    

    On
      each
      Distribution Date, the Securities Administrator shall first pay or charge as
      an
      expense of REMIC 1 all expenses of the Trust Fund for such Distribution Date,
      other than any Net Swap Payment or Swap Termination Payment required to be
      made
      from the Trust Fund.

    

    On
      each
      Distribution Date the Securities Administrator shall distribute the Interest
      Remittance Amount (net of expenses described in the preceding paragraph) with
      respect to each of the Lower Tier Interests in REMIC 1 based on the
      above-described interest rates.

    

    On
      each
      Distribution Date, the Securities Administrator shall distribute the Principal
      Remittance Amount with respect to the Lower Tier Interests in REMIC 1, first
      to
      the Class LT1-A Interest until its principal balance is reduced to zero, and
      then sequentially, to the other Lower Tier Interests in REMIC 1 in ascending
      order of their numerical class designation, and, with respect to each pair
      of
      classes having the same numerical designation, in equal amounts to each such
      class, until the principal balance of each such class is reduced to zero. All
      losses on the Mortgage Loans shall be allocated among the Lower Tier Interests
      in REMIC 1 in the same manner that principal distributions are
      allocated.

    

    On
      each
      Distribution Date, the Securities Administrator shall distribute the Prepayment
      Charges collected during the preceding Prepayment Period to the Class LT1-F39
      Lower Tier Interest.

    

    REMIC
      2:

    

    The
      following table sets forth the designations, principal balances and interest
      rates for each interest in REMIC 2, each of which (other than the Class LT2-R
      interest) is hereby designated as a regular interest in REMIC 2 (the “REMIC 2
      Regular Interests”):

    

    
      	
              REMIC
                2

              Lower
                Tier 

              Class
                Designation

            	 	
              REMIC
                2

              Lower
                Tier

              Interest
                Rate

            	 	
              Initial
                Class 

              Principal
                Amount

            	 	
              Corresponding
                Class of 

              Certificate(s)

            
	
              Class
                LT2-I-A

            	 	
              (1)

            	 	
              (4)

            	 	
              I-A

            
	
              Class
                LT2-II-A1

            	 	
              (1)

            	 	
              (4)

            	 	
              II-A-1

            
	
              Class
                LT2-II-A2

            	 	
              (1)

            	 	
              (4)

            	 	
              II-A-2

            
	
              Class
                LT2-II-A3

            	 	
              (1)

            	 	
              (4)

            	 	
              II-A-3

            
	
              Class
                LT2-II-A4

            	 	
              (1)

            	 	
              (4)

            	 	
              II-A-4

            

    

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    
      	
              REMIC
                2

              Lower
                Tier 

              Class
                Designation

            	 	
              REMIC
                2

              Lower
                Tier

              Interest
                Rate

            	 	
              Initial
                Class 

              Principal
                Amount

            	 	
              Corresponding
                Class of 

              Certificate(s)

            
	
              Class
                LT2-M1

            	 	
              (1)

            	 	
              (4)

            	 	
              M-1

            
	
              Class
                LT2-M2

            	 	
              (1)

            	 	
              (4)

            	 	
              M-2

            
	
              Class
                LT2-M3

            	 	
              (1)

            	 	
              (4)

            	 	
              M-3

            
	
              Class
                LT2-M4

            	 	
              (1)

            	 	
              (4)

            	 	
              M-4

            
	
              Class
                LT2-M5

            	 	
              (1)

            	 	
              (4)

            	 	
              M-5

            
	
              Class
                LT2-M6

            	 	
              (1)

            	 	
              (4)

            	 	
              M-6

            
	
              Class
                LT2-M7

            	 	
              (1)

            	 	
              (4)

            	 	
              M-7

            
	
              Class
                LT2-M8

            	 	
              (1)

            	 	
              (4)

            	 	
              M-8

            
	
              Class
                LT2-M9

            	 	
              (1)

            	 	
              (4)

            	 	
              M-9

            
	
              Class
                LT2-M10

            	 	
              (1)

            	 	
              (4)

            	 	
              M-10

            
	
              Class
                LT2-Q

            	 	
              (1)

            	 	
              (5)

            	 	
              N/A

            
	
              Class
                LT2-IO

            	 	
              (2)

            	 	
              (2)

            	 	
              N/A

            
	
              Class
                LT2-R

            	 	
              (3)

            	 	
              (3)

            	 	
              R

            

    

    ___________________________

    
      	 	
              (1)

            	
              For
                any Distribution Date (and the related Interest Accrual Period) the
                interest rate for each of these Lower Tier Interests in REMIC 2 is
                a per
                annum rate equal to the weighted average of the interest rates on
                the
                Lower Tier Interests in REMIC 1 for such Distribution Date; provided,
                however,
                that for any Distribution Date on which the Class LT2-IO Interest
                is
                entitled to a portion of the interest accruals on a Lower Tier Interest
                in
                REMIC 1 having an “F” in its class designation, as described in footnote
                two below, such weighted average shall be computed by first subjecting
                the
                rate on such Lower Tier Interest in REMIC 1 to a cap equal to Swap
                LIBOR
                for such Distribution Date.

            

    

    

    
      	 	
              (2)

            	
              The
                Class LT2-IO is an interest only class that does not have a principal
                balance. For only those Distribution Dates listed in the first column
                in
                the table below, the Class LT2-IO shall be entitled to interest accrued
                on
                the Lower Tier Interest in REMIC 1 listed in the second column in
                the
                table below at a per annum rate equal to the excess, if any, of (i)
                the
                interest rate for such Lower Tier Interest in REMIC 1 for such
                Distribution Date over (ii) Swap LIBOR for such Distribution
                Date.

            

    

    

    
      	
              Distribution
                Dates

            	
              REMIC
                1
                Class Designation

            
	
              2

            	
              Class
                LT1-F1

            
	
              2-3

            	
              Class
                LT1-F2

            
	
              2-4

            	
              Class
                LT1-F3

            
	
              2-5

            	
              Class
                LT1-F4

            
	
              2-6

            	
              Class
                LT1-F5

            
	
              2-7

            	
              Class
                LT1-F6

            
	
              2-8

            	
              Class
                LT1-F7

            
	
              2-9

            	
              Class
                LT1-F8

            
	
              2-10

            	
              Class
                LT1-F9

            
	
              2-11

            	
              Class
                LT1-F10

            
	
              2-12

            	
              Class
                LT1-F11

            
	
              2-13

            	
              Class
                LT1-F12

            
	
              2-14

            	
              Class
                LT1-F13

            
	
              2-15

            	
              Class
                LT1-F14

            
	
              2-16

            	
              Class
                LT1-F15

            
	
              2-17

            	
              Class
                LT1-F16

            
	
              2-18

            	
              Class
                LT1-F17

            
	
              2-19

            	
              Class
                LT1-F18

            
	
              2-20

            	
              Class
                LT1-F19

            
	
              2-21

            	
              Class
                LT1-F20

            
	
              2-22

            	
              Class
                LT1-F21

            
	
              2-23

            	
              Class
                LT1-F22

            
	
              2-24

            	
              Class
                LT1-F23

            
	
              2-25

            	
              Class
                LT1-F24

            

    

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Dates

            	
              REMIC
                1
                Class Designation

            
	
              2-26

            	
              Class
                LT1-F25

            
	
              2-27

            	
              Class
                LT1-F26

            
	
              2-28

            	
              Class
                LT1-F27

            
	
              2-29

            	
              Class
                LT1-F28

            
	
              2-30

            	
              Class
                LT1-F29

            
	
              2-31

            	
              Class
                LT1-F30

            
	
              2-32

            	
              Class
                LT1-F31

            
	
              2-33

            	
              Class
                LT1-F32

            
	
              2-34

            	
              Class
                LT1-F33

            
	
              2-35

            	
              Class
                LT1-F34

            
	
              2-36

            	
              Class
                LT1-F35

            
	
              2-37

            	
              Class
                LT1-F36

            
	
              2-38

            	
              Class
                LT1-F37

            
	
              2-39

            	
              Class
                LT1-F38

            
	
              2-40

            	
              Class
                LT1-F39

            
	 	 

    

    
      	 	
              (3)

            	
              The
                Class LT2-R interest is the sole class of residual interests in REMIC
                2.
                It does not have an interest rate or a principal balance.
                

            

    

    

    
      	 	
              (4)

            	
              This
                Lower Tier Interest shall have an initial class principal amount
                equal to
                one-half of the initial Class Certificate Balance of its Corresponding
                Class of Certificates.

            

    

    

    
      	 	
              (5)

            	
              This
                Lower Tier Interest shall have an initial class principal amount
                equal to
                the excess of (i) the Pool Stated Principal Balance as of the Cut-off
                Date, over (ii) the aggregate initial Class Principal Amount of each
                other
                regular interest in REMIC 2 (other than any interest-only Lower Tier
                Interest).

            

    

    

    On
      each
      Distribution Date, interest shall be distributed on the Lower Tier Interests
      in
      REMIC 2 based on the above-described interest rates; provided,
      however,
      that
      interest that accrues on the Class LT2-Q Interest shall be deferred in an amount
      equal to one-half of the increase, if any, in the Overcollateralization Amount
      for such Distribution Date. Any interest so deferred shall itself bear interest
      at the interest rate for the Class LT2-Q Interest. An amount equal to the
      interest so deferred shall be distributed as additional principal on the other
      Lower Tier Interests in REMIC 2 having a principal balance in the manner
      described under priority (a) below.

    

    On
      each
      Distribution Date principal shall be distributed, and Realized Losses shall
      be
      allocated, among the Lower Tier Interests in REMIC 2 in the following order
      of
      priority:

    

    (a) First,
      to
      the Class LT2-I-A, Class LT2-II-A1, Class LT2-II-A2, Class LT2-II-A3, Class
      LT2-II-A4, Class LT2-M1, Class LT2-M2, Class LT2-M3, Class LT2-M4, Class
      LT2-M5, Class LT2-M6, Class LT2-M7, Class LT2-M8, Class LT2-M9, and Class
      LT2-M10 Interests until the principal balance of each such Lower Tier Interest
      equals one-half of the Class Certificate Balance of the Corresponding Class
      of
      Certificates immediately after such Distribution Date; and

    

    (b) Second,
      to the Class LT2-Q Interests, any remaining amounts.

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    

    On
      each
      Distribution Date, the Securities Administrator shall be deemed to have
      distributed the Prepayment Charges passed through with respect to the Class
      LT1-F39 Lower Tier Interest  in REMIC 1 on such Distribution Date to the
      Class LT2-Q Interest.

    

    Upper
      Tier REMIC

    

    The
      Upper
      Tier REMIC shall issue the following Classes of Upper Tier REMIC Regular
      Interests and each such interest, other than the Class R Interest, is hereby
      designated as a regular interest in the Upper Tier REMIC.

    

    Upper
      Tier REMIC

    
      

        
          	
                  Upper
                    Tier REMIC 

                  Class Designation

                	 	
                  Upper
                    Tier REMIC 

                  Interest
                    Rate and 

                  Corresponding
                    

                  Class Interest
                    Rate

                	 	
                  Initial Upper Tier 

                  REMIC Principal 

                  Amount and 

                  Corresponding 

                  Class Certificate 

                  Balance

                	 	
                  Corresponding

                  Class of
                    Certificates

                
	
                  Class I-A

                	 	
                  (1)

                	 	
                  $438,787,000.00

                	 	
                  Class I-A

                
	
                  Class II-A-1

                	 	
                  (2)

                	 	
                  $105,043,000.00

                	 	
                  Class II-A-1

                
	
                  Class II-A-2

                	 	
                  (3)

                	 	
                  $  24,118,000.00

                	 	
                  Class II-A-2

                
	
                  Class II-A-3

                	 	
                  (4)

                	 	
                  $  40,466,000.00

                	 	
                  Class II-A-3

                
	
                  Class II-A-4

                	 	
                  (5)

                	 	
                  $    6,266,000.00

                	 	
                  Class II-A-4

                
	
                  Class M-1

                	 	
                  (6)

                	 	
                  $  35,013,000.00

                	 	
                  Class M-1

                
	
                  Class M-2

                	 	
                  (6)

                	 	
                  $  24,898,000.00

                	 	
                  Class M-2

                
	
                  Class M-3

                	 	
                  (6)

                	 	
                  $  15,173,000.00

                	 	
                  Class M-3

                
	
                  Class M-4

                	 	
                  (6)

                	 	
                  $  14,005,000.00

                	 	
                  Class M-4

                
	
                  Class M-5

                	 	
                  (6)

                	 	
                  $  13,227,000.00

                	 	
                  Class M-5

                
	
                  Class M-6

                	 	
                  (6)

                	 	
                  $  10,504,000.00

                	 	
                  Class M-6

                
	
                  Class M-7

                	 	
                  (6)

                	 	
                  $  10,504,000.00

                	 	
                  Class M-7

                
	
                  Class M-8

                	 	
                  (6)

                	 	
                  $    5,447,000.00

                	 	
                  Class M-8

                
	
                  Class M-9

                	 	
                  (6)

                	 	
                  $  10,504,000.00

                	 	
                  Class M-9

                
	
                  Class M-10

                	 	
                  (6)

                	 	
                  $    9,337,000.00

                	 	
                  Class M-10

                
	
                  Class X

                	 	
                  (7)

                	 	
                  (7)

                	 	
                  Class X

                
	
                  Class R

                	 	
                  (8)

                	 	
                  (8)

                	 	
                  Class R

                
	
                  Class P

                	 	
                  (9)

                	 	
                  (9)

                	 	
                  Class
                    P

                

        

      

    

     

    
      	
              (1)

            	
              The
                Class I-A Interest will bear interest during each Interest Accrual
                Period at a per annum rate equal to (a) on or prior to the Optional
                Termination Date, the lesser of (i) LIBOR plus the applicable
                Interest Margin and (ii) the Group I Available Funds Cap or
                (b) after the Optional Termination Date, the lesser of (i) LIBOR
                plus the applicable Interest Margin and (ii) the Group I
                Available Funds Cap. For purposes of the REMIC Provisions, the reference
                to “Group I Available Funds Cap” in clause (ii) of the preceding sentence
                shall be deemed a reference to the REMIC 2 Net Funds Cap; therefore,
                on
                any Distribution Date on which the Interest Rate for the Class I-A
                Certificates exceeds the REMIC 2 Net Funds Cap, interest accruals
                based on
                such excess shall be treated as having been paid from the Excess
                Reserve
                Fund Account or the Supplemental Interest Trust, as applicable; on
                any
                Distribution Date on which the Interest Rate on the Class I-A Certificates
                is based on the Group I Available Funds Cap, the amount of interest
                that
                would have accrued on the Class I-A Certificates if the REMIC 2 Net
                Funds
                Cap were substituted for the Group I Available Funds Cap shall be
                treated
                as having been paid by the Class I-A Certificateholders to the
                Supplemental Interest Trust, all pursuant to and as further provided
                in
                Section 8.11 hereof.

            

    

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    
      	
              (2)

            	
              The
                Class II-A-1 Interest will bear interest during each Interest Accrual
                Period at a per annum rate equal to (a) on or prior to the Optional
                Termination Date, the lesser of (i) LIBOR plus the applicable
                Interest Margin and (ii) the Group II Available Funds Cap or
                (b) after the Optional Termination Date, the lesser of (i) LIBOR
                plus the applicable Interest Margin and (ii) the Group II Available
                Funds Cap. For purposes of the REMIC Provisions, the reference to
“Group
                II Available Funds Cap” in clause (ii) of the preceding sentence shall be
                deemed a reference to the REMIC 2 Net Funds Cap; therefore, on any
                Distribution Date on which the Interest Rate for the Class II-A-1
                Certificates exceeds the REMIC 2 Net Funds Cap, interest accruals
                based on
                such excess shall be treated as having been paid from the Excess
                Reserve
                Fund Account or the Supplemental Interest Trust, as applicable; on
                any
                Distribution Date on which the Interest Rate on the Class II-A-1
                Certificates is based on the Group II Available Funds Cap, the amount
                of
                interest that would have accrued on the Class II-A-1 Certificates
                if the
                REMIC 2 Net Funds Cap were substituted for the Group II Available
                Funds
                Cap shall be treated as having been paid by the Class II-A-1
                Certificateholders to the Supplemental Interest Trust, all pursuant
                to and
                as further provided in Section 8.11
                hereof.

            

    

    

    
      	
              (3)

            	
              The
                Class II-A-2 Interest will bear interest during each Interest Accrual
                Period at a per annum rate equal to (a) on or prior to the Optional
                Termination Date, the lesser of (i) LIBOR plus the applicable
                Interest Margin and (ii) the Group II Available Funds Cap or
                (b) after the Optional Termination Date, the lesser of (i) LIBOR
                plus the applicable Interest Margin and (ii) the Group II Available
                Funds Cap. For purposes of the REMIC Provisions, the reference to
“Group
                II Available Funds Cap” in clause (ii) of the preceding sentence shall be
                deemed a reference to the REMIC 2 Net Funds Cap; therefore, on any
                Distribution Date on which the Interest Rate for the Class II-A-2
                Certificates exceeds the REMIC 2 Net Funds Cap, interest accruals
                based on
                such excess shall be treated as having been paid from the Excess
                Reserve
                Fund Account or the Supplemental Interest Trust, as applicable; on
                any
                Distribution Date on which the Interest Rate on the Class II-A-2
                Certificates is based on the Group II Available Funds Cap, the amount
                of
                interest that would have accrued on the Class II-A-2 Certificates
                if the
                REMIC 2 Net Funds Cap were substituted for the Group II Available
                Funds
                Cap shall be treated as having been paid by the Class II-A-2
                Certificateholders to the Supplemental Interest Trust, all pursuant
                to and
                as further provided in Section 8.11
                hereof.

            

    

    

    
      	
              (4)

            	
              The
                Class II-A-3 Interest will bear interest during each Interest Accrual
                Period at a per annum rate equal to (a) on or prior to the Optional
                Termination Date, the lesser of (i) LIBOR plus the applicable
                Interest Margin and (ii) the Group II Available Funds Cap or
                (b) after the Optional Termination Date, the lesser of (i) LIBOR
                plus the applicable Interest Margin and (ii) the Group II Available
                Funds Cap. For purposes of the REMIC Provisions, the reference to
“Group
                II Available Funds Cap” in clause (ii) of the preceding sentence shall be
                deemed a reference to the REMIC 2 Net Funds Cap; therefore, on any
                Distribution Date on which the Interest Rate for the Class II-A-3
                Certificates exceeds the REMIC 2 Net Funds Cap, interest accruals
                based on
                such excess shall be treated as having been paid from the Excess
                Reserve
                Fund Account or the Supplemental Interest Trust, as applicable; on
                any
                Distribution Date on which the Interest Rate on the Class II-A-3
                Certificates is based on the Group II Available Funds Cap, the amount
                of
                interest that would have accrued on the Class II-A-3 Certificates
                if the
                REMIC 2 Net Funds Cap were substituted for the Group II Available
                Funds
                Cap shall be treated as having been paid by the Class II-A-3
                Certificateholders to the Supplemental Interest Trust, all pursuant
                to and
                as further provided in Section 8.11
                hereof.

            

    

    

    
      	
              (5)

            	
              The
                Class II-A-4 Interest will bear interest during each Interest Accrual
                Period at a per annum rate equal to (a) on or prior to the Optional
                Termination Date, the lesser of (i) LIBOR plus the applicable
                Interest Margin and (ii) the Group II Available Funds Cap or
                (b) after the Optional Termination Date, the lesser of (i) LIBOR
                plus the applicable Interest Margin and (ii) the Group II Available
                Funds Cap. For purposes of the REMIC Provisions, the reference to
“Group
                II Available Funds Cap” in clause (ii) of the preceding sentence shall be
                deemed a reference to the REMIC 2 Net Funds Cap; therefore, on any
                Distribution Date on which the Interest Rate for the Class II-A-4
                Certificates exceeds the REMIC 2 Net Funds Cap, interest accruals
                based on
                such excess shall be treated as having been paid from the Excess
                Reserve
                Fund Account or the Supplemental Interest Trust, as applicable; on
                any
                Distribution Date on which the Interest Rate on the Class II-A-4
                Certificates is based on the Group II Available Funds Cap, the amount
                of
                interest that would have accrued on the Class II-A-4 Certificates
                if the
                REMIC 2 Net Funds Cap were substituted for the Group II Available
                Funds
                Cap shall be treated as having been paid by the Class II-A-4
                Certificateholders to the Supplemental Interest Trust, all pursuant
                to and
                as further provided in Section 8.11
                hereof.

            

    

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    
      	
              (6)

            	
              The
                Class M-1, Class M-2, Class M-3, Class M-4,
                Class M-5, Class M-6, Class M-7, Class M-8,
                Class M-9 and Class M-10 Interests will bear interest during
                each Interest Accrual Period at a per annum rate equal to (a) on or
                prior to the Optional Termination Date, the lesser of (i) LIBOR plus
                the applicable Interest Margin and (ii) the Class M Available Funds
                Cap or (b) after the Optional Termination Date, the lesser of
                (i) LIBOR plus the applicable Interest Margin and (ii) the Class
                M Available Funds Cap. For purposes of the REMIC Provisions, the
                reference
                to Class M Available Funds Cap in clause (ii) of the preceding sentence
                shall be deemed to be a reference to the REMIC 2 Net Funds Cap; therefore,
                on any Distribution Date on which the Interest Rate for the Class
                M-1,
                M-2, M-3, M-4, M-5, M-6, M-7, M-8, M-9 and M-10 Certificates, as
                applicable, exceeds the REMIC 2 Net Funds Cap, interest accruals
                based on
                such excess shall be treated as having been paid from the Excess
                Reserve
                Fund Account or the Supplemental Interest Trust, as applicable; on
                any
                Distribution Date on which the Interest Rate on the Class M-1, M-2,
                M-3,
                M-4, M-5, M-6, M-7, M-8, M-9 and M-10 Certificates, as applicable,
                is
                based on the Class M Available Funds Cap, the amount of interest
                that
                would have accrued on each such Class of Certificates if the REMIC
                2 Net
                Funds Cap were substituted for the Class M Available Funds Cap shall
                be
                treated as having been paid by the Class M-1, M-2, M-3, M-4, M-5,
                M-6,
                M-7, M-8, M-9 and M-10 Certificateholders, as applicable, to the
                Supplemental Interest Trust, all pursuant to and as further provided
                in
                Section 8.11 hereof.

            

      
        	
                (7)

              	
                For
                  purposes of the REMIC Provisions, the Class X Interest shall have
                  an
                  initial principal balance of $14,783,741.03
                  (initial overcollateralization of $14,783,841.03 less $100.00 attributable
                  to the Class P Principal Amount), and the right to receive distributions
                  of such amount represents a regular interest in the Upper Tier
                  REMIC. The
                  Class X Certificate shall also comprise two notional components,
                  each of
                  which represents a regular interest in the Upper Tier REMIC. The
                  first
                  such component has a notional balance that will at all times equal
                  the
                  aggregate of the Class Certificate Balances of the Lower Tier Interests
                  in
                  REMIC 2, and, for each Distribution Date (and the related Interest
                  Accrual
                  Period) this notional component shall bear interest at a per annum
                  rate
                  equal to the excess, if any, of (i) the weighted average of the
                  interest
                  rates on the Lower Tier Interests in REMIC 2 (other than any interest-only
                  regular interest) over (ii) the Adjusted Lower Tier WAC. The second
                  notional component represents the right to receive all distributions
                  in
                  respect of the Class LT2-IO in REMIC 2 (the “LT3-I” interest). In
                  addition, for purposes of the REMIC Provisions, the Class X Certificate
                  shall represent beneficial ownership of (i) the Excess Reserve
                  Fund
                  Account; (ii) the Supplemental Interest Trust, including the Swap
                  Agreement, Swap Account, Cap Agreement, and Cap Account, and (iii)
                  an
                  interest in the notional principal contracts described in Section
                  8.11
                  hereof.

              

      

       

    

    
      	
              (8)

            	
              The
                Class R Interest is the sole Class of residual interest in the Upper
                Tier REMIC. The Class R Interest is issued without a principal amount
                does not bear a stated Interest Rate. The Class R Certificate will
                be
                issued as a single certificate evidencing the initial Percentage
                Interest
                of such Class, and shall represent ownership of each of the Class
                R, Class
                LT1-R and Class LT2-R Interests.

            

    

    

    
      	
              (9)

            	
              The
                Class P Interest shall not bear interest at a stated Interest Rate.
                Prepayment Charges paid with respect to the Mortgage Loans shall
                be paid
                to the Class P Certificateholders as provided in Section 4.02(b).
                For
                purposes of the REMIC Provisions, the Class P Interest shall represent
                a
                regular interest in the Upper Tier REMIC. The Class P Certificate
                will
                have a Class P Principal Amount of
                $100.

            

    

     

    The
      minimum denomination for each Class of Certificates, other than the
      Class P, Class R and the Class X Certificates, will be $25,000 of
      Certificate Balance ($100,000 with respect to initial investors resident in
      a
      Member State of the European Economic Area subject to the EU Prospectus
      Directive 2003/71/EC) with integral multiples of $1 in excess thereof, except
      that one Certificate in each Class may be issued in a different amount. The
      minimum denomination for each of the Class P and Class X Certificates
      will be a 10.00% Percentage Interest in such Class, and the minimum denomination
      for the Class R Certificates shall be 100% Percentage Interest in such
      Class.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    

    Set
      forth
      below are designations of Classes of Certificates to the categories used
      herein:

    

    
      	
              Book-Entry
                Certificates

            	
              All
                Classes of Certificates other than the Physical
                Certificates.

            

    

    

    
      	
              Class A
                Certificates

            	
              Class
                I-A, Class II-A-1, Class  II-A-2, Class II-A-3 and Class II-A-4
                Certificates.

            

    

    

    
      	
              Class M
                Certificates

            	
              Class M-1,
                Class M-2, Class M-3, Class M-4, Class M-5,
                Class M-6, Class M-7, Class M-8, Class M-9 and
                Class M-10 Certificates.

            

    

    

    ERISA-Restricted

    
      	
                
                Certificates

            	
              Any
                Class M-10, Class P, Class X and Class R Certificates and any Certificate
                with a rating which falls below the lowest applicable permitted rating
                under the Underwriters’ Exemption.

            

    

    

    ERISA-Restricted

    
      	
                
                Trust Certificates

            	
              Any
                Offered Certificate prior to the termination of the Cap Agreement
                and the
                Swap Agreement.

            

    

    

    
      	
              Group
                I Certificates

            	
              The
                Class I-A Certificates.

            

    

    

    
      	
              Group
                II Certificates

            	
              Collectively,
                the Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4
                Certificates.

            

    

    

    
      	
              LIBOR
                Certificates

            	
              Collectively,
                the Class I-A, Class II-A-1, Class II-A-2, Class II-A-3,
                Class II-A-4 Certificates and any Class M
                Certificate.

            

    

    

    
      	
              Non-Delay
                Certificates

            	
              The
                Class A Certificates, the Class M Certificates and the Class X
                Certificates.

            

    

    

    
      	
              Offered
                Certificates

            	
              All
                Classes of Certificates other than the Private
                Certificates.

            

    

    

    
      	
              Physical
                Certificates

            	
              Class P,
                Class X and Class R
                Certificates.

            

    

    

    
      	
              Private
                Certificates

            	
              Class
                M-10, Class P, Class X and Class R
                Certificates.

            

    

    

    
      	
              Rating
                Agencies

            	
              Fitch,
                Moody’s and Standard &
Poor’s.

            

    

    

    
      	
              Regular
                Certificates

            	
              All
                Classes of Certificates other than the Class R
                Certificates.

            

    

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    
      	
              Residual
                Certificates

            	
              Class R
                Certificates.

            

    

    

    ARTICLE
      I

    

    DEFINITIONS

    

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

    

    10-K
      Filing Deadline: As defined in Section 8.12(a)(ii).

    

    Accepted
      Servicing Practices:
      With
      respect to any Mortgage Loan and the Servicer, the servicing and administration
      of such Mortgage Loan (i) in the same manner in which, and with the same
      care, skill, prudence and diligence with which the Servicer generally services
      and administers similar mortgage loans with similar mortgagors (A) for
      other third parties, giving due consideration to customary and usual standards
      of practice of prudent institutional residential mortgage lenders servicing
      their own mortgage loans or (B) held in the Servicer’s own portfolio,
      whichever standard is higher, and (ii) in accordance with applicable local,
      state and federal laws, rules and regulations.

    

    Account:
      Any of
      the Collection Account, the Master Servicing Account, the Distribution Account
      and any Escrow Account, and with respect to the Supplemental Interest Trust,
      the
      Excess Reserve Fund Account and the Supplemental Interest Trust Account. Each
      Account shall be an Eligible Account.

    

    Additional
      Disclosure Notification:
      The
      form of notice set forth on Exhibit Y.

    

    Additional
      Form 10-D Disclosure:
      As
      defined in Section 8.12(a)(i). 

    

    Additional
      Form 10-K Disclosure:
      As
      defined in Section 8.12(a)(ii). 

    

    Additional
      Termination Event:
      As
      defined in the Cap Agreement or the Swap Agreement, as applicable.

    

    Adjustable
      Rate Mortgage Loan:
      A
      Mortgage Loan which provides for the adjustment of the Mortgage Rate payable
      in
      respect thereto.

    

    Adjusted
      Lower Tier WAC:
      For
      any
      Distribution Date (and the related Interest Accrual Period), an amount equal
      to
      (i) two, multiplied by (ii) the weighted average of the interest rates for
      such
      Distribution Date for the Class LT2-I-A, LT2-II-A-1, LT2-II-A-2, LT2-II-A-3,
      LT2-II-A-4, LT2-M-1, LT2-M-2, LT2-M-3, LT2-M-4, LT2-M-5, LT2-M-6, LT2-M-7,
      LT2-M-8, LT2-M-9, LT2-M-10 and LT2-Q Interests, weighted in proportion to their
      Class Certificate Balances as of the beginning of the related Interest Accrual
      Period and computed by subjecting the rate on the Class LT2-Q Interest to a
      cap
      of 0.00%, and by subjecting the rate on each of the Class LT2-I-A, LT2-II-A-1,
      LT2-II-A-2, LT2-II-A-3, LT2-II-A-4, LT2-M-1, LT2-M-2, LT2-M-3, LT2-M-4, LT2-M-5,
      LT2-M-6, LT2-M-7, LT2-M-8, LT2-M-9 and LT2-M-10 Interests to a cap that
      corresponds to the Interest Rate (determined by substituting the REMIC 2 Net
      Funds Cap for the applicable Available Funds Cap) for the Corresponding Class
      of
      Certificates; provided,
      however,
      that
      for each Class of LIBOR Certificates, the Certificate Interest Rate shall be
      multiplied by the quotient of (a) the actual number of days in the Interest
      Accrual Period, divided by (b) 30. 

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    

    Advance:
      Any
      P&I Advance or Servicing Advance.

    

    Affected
      Party:
      As
      defined in the Swap Agreement.

    

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

    

    Agreement:
      This
      Pooling and Servicing Agreement and all amendments or supplements
      hereto.

    

    Amounts
      Held for Future Distribution:
      As to
      the Certificates on any Distribution Date, the aggregate amount held in the
      Collection Account at the close of business on the related Determination Date
      on
      account of (i) Principal Prepayments, Insurance Proceeds, Condemnation
      Proceeds, Liquidation Proceeds and Subsequent Recoveries on the Mortgage Loans
      received after the end of the related Prepayment Period and (ii) all
      Scheduled Payments on the Mortgage Loans due after the end of the related Due
      Period.

    

    Applied
      Realized Loss Amount:
      With
      respect to any Distribution Date, the amount, if any, by which the aggregate
      Class Certificate Balance of the LIBOR Certificates after distributions of
      principal on such Certificates on such Distribution Date exceeds the aggregate
      Stated Principal Balance of the Mortgage Loans for such Distribution
      Date.

    

    Appraised
      Value:
      The
      value set forth in an appraisal made in connection with the origination of
      the
      related Mortgage Loan as the value of the Mortgaged Property.

    

    Assignment
      of Mortgage:
      An
      assignment of the Mortgage, notice of transfer or equivalent instrument in
      recordable form (other than the assignee’s name and recording information not
      yet returned from the recording office), reflecting the sale of the Mortgage
      to
      the Trustee.

    

    Available
      Funds:
      With
      respect to any Distribution Date and the Mortgage Loans to the extent received
      by the Master Servicer (x) the sum of (i) all scheduled installments
      of interest (net of the related Expense Fees) and principal due on the Due
      Date
      on such Mortgage Loans in the related Due Period and received by the Servicer
      on
      or prior to the related Determination Date, together with any
      P&I Advances in respect thereof; (ii) all Condemnation Proceeds,
      Insurance Proceeds, Liquidation Proceeds and Subsequent Recoveries received
      by
      the Servicer during the related Prepayment Period (in each case, net of
      unreimbursed expenses incurred in connection with a liquidation or foreclosure
      and unreimbursed Advances, if any); (iii) all partial or full prepayments
      on the Mortgage Loans received by the Servicer during the related Prepayment
      Period together with all Compensating Interest paid by the Servicer in
      connection therewith (excluding any Prepayment Charges); (iv) all
      Substitution Adjustment Amounts with respect to the substitutions of Mortgage
      Loans that occur on or prior to the related Determination Date; (v) all
      amounts received with respect to such Distribution Date as the Repurchase Price
      in respect of a Mortgage Loan repurchased by the Originator or the Sponsor
      on or
      prior to the related Determination Date; and (vi) the proceeds with respect
      to the termination of the Trust Fund pursuant to clause (a) of
      Section 11.01; reduced by (y) amounts in reimbursement for Advances
      previously made with respect to the Mortgage Loans and other amounts as to
      which
      the Servicer, the Depositor, the Master Servicer, the Securities Administrator,
      the Credit Risk Manager or the Trustee are entitled to be paid or reimbursed
      pursuant to this Agreement.

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    

    Back-up
      Certification:
      As
      defined in Section 3.24.

    

    Basic
      Principal Payment Amount:
      With
      respect to any Distribution Date, the excess of (i) the Principal
      Remittance Amount for such Distribution Date over (ii) the Excess
      Overcollateralization Amount, if any, for such Distribution Date.

    

    Basis
      Risk Carryover Amount:
      With
      respect to each Class of LIBOR Certificates, as of any Distribution Date,
      the sum of (A) if on such Distribution Date the Interest Rate for any
      Class of LIBOR Certificates is based upon the Group I Available Funds Cap,
      the Group II Available Funds Cap or the Class M Available Funds Cap, as
      applicable, the excess of (i) the amount of interest such Class of
      Certificates would otherwise be entitled to receive on such Distribution Date
      had such Interest Rate been calculated as the sum of LIBOR and the applicable
      Interest Margin on such Class of Certificates for such Distribution Date,
      over (ii) the amount of interest payable on such Class of
      Certificates, in the case of any Group I Certificates, based on the Group I
      Available Funds Cap, in the case of any Group II Certificates, based on the
      Group II Available Funds Cap and in the case of any Class of Class M
      Certificates, based on the Class M Available Funds Cap and (B) the portion
      of any such excess described in clause (A) for such Class of
      Certificates from all previous Distribution Dates not previously paid, together
      with interest thereon at a rate equal the applicable Interest Rate for each
      such
      Class of Certificates for such Distribution Date.

    

    Basis
      Risk Payment:
      For any
      Distribution Date, an amount equal to the lesser of (i) the aggregate of
      the Basis Risk Carryover Amounts of the LIBOR Certificates for such Distribution
      Date and (ii) the Class X Distributable Amount (prior to any reduction
      for Basis Risk Payments).

    

    Best’s:
      Best’s
      Key Rating Guide, as the same shall be amended from time to time.

    

    Book-Entry
      Certificates:
      As
      specified in the Preliminary Statement.

    

    Business
      Day:
      Any day
      other than (i) Saturday or Sunday, or (ii) a day on which banking and
      savings and loan institutions, in (a) the States of New York, California,
      Maryland or Minnesota, (b) the Commonwealth of Pennsylvania or any other
      State in which the Servicer’s servicing operations are located, or (c) any
      State in which the Corporate Trust Office is located, are authorized or
      obligated by law or executive order to be closed.

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    

    Cap
      Account:
      The
      sub-account of the Supplemental Interest Trust Account created pursuant to
      Section 4.06(a).

    

    Cap
      Agreement:
      The
      interest rate cap agreement entered into by the Supplemental Interest Trust
      and
      the Cap Counterparty, dated January 30, 2007, which agreement provides for
      the
      monthly payment specified to the trustee of the Supplemental Interest Trust
      (for
      the benefit of Certificateholders) commencing with the Distribution Date in
      August 2007 and ending on the Distribution Date in February 2014, by the Cap
      Counterparty, but subject to the conditions set forth therein, together with
      any
      schedule, confirmations or other agreements relating thereto, attached as
      Exhibit P. 

    

    Cap
      Amount:
      With
      respect to each Distribution Date, the amount of any Cap Payment deposited
      into
      the Cap Account.

    

    Cap
      Counterparty:
      The
      counterparty to the Supplemental Interest Trust under the Cap Agreement, and
      any
      successor in interest or its assigns. Initially, the Cap Counterparty shall
      be
      Wachovia Bank, National Association.

    

    Cap
      Payment:
      With
      respect to each Distribution Date, any payment required to be made by the Cap
      Counterparty to the Supplemental Interest Trust pursuant to the terms of the
      Cap
      Agreement.

    

    Cap
      Payment Date:
      For as
      long as the Cap Agreement is in effect or any amounts remain unpaid thereunder,
      the Business Day immediately preceding each Distribution Date.

    

    Cap
      Replacement Receipts:
      As
      defined in Section 4.08(b)(i).

    

    Cap
      Replacement Receipts Account:
      As
      defined in Section 4.08(b)(i).

    

    Cap
      Termination Payment:
      Upon
      the designation of an “Early Termination Date” as defined in the Cap Agreement,
      the payment required to be made by the Cap Counterparty to the Supplemental
      Interest Trust pursuant to the terms of the Cap Agreement and any unpaid amounts
      due on previous Cap Payment Dates and accrued interest thereon as provided
      in
      the Cap Agreement, as calculated by the Cap Counterparty and furnished to the
      Securities Administrator.

    

    Cap
      Termination Receipts:
      As
      defined in Section 4.08(b)(i).

    

    Cap
      Termination Receipts Account:
      As
      defined in Section 4.08(b)(i).

    

    Certificate:
      Any one
      of the Certificates executed and authenticated by the Securities Administrator
      in substantially the forms attached hereto as exhibits.

    

    Certificate
      Balance:
      With
      respect to any Certificate, other than a Class X, Class P or Class R
      Certificate, at any date, the maximum dollar amount of principal to which the
      Holder thereof is then entitled hereunder, such amount being equal to the
      Denomination thereof minus all distributions of principal previously made with
      respect thereto and in the case of any Class M Certificates, reduced by any
      Applied Realized Loss Amounts allocated to such Class of Certificates
      pursuant to Section 4.05; provided,
      however,
      that
      immediately following the Distribution Date on which a Subsequent Recovery
      is
      distributed, the Class Certificate Balances of any Class or Classes of
      Certificates that have been previously reduced by Applied Realized Loss Amounts
      will be increased, in order of seniority, by the amount of any Subsequent
      Recovery distributed on such Distribution Date (up to the amount of Unpaid
      Realized Loss Amount for such Class or Classes for such Distribution Date).
      The Class P Certificates are issued with an initial Class P Principal
      Amount of $100. The Class X and Class R Certificates have no
      Certificate Balance. 

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    

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

    

    Certificate
      Register:
      The
      register maintained pursuant to Section 5.02.

    

    Certificateholder
      or
Holder:
      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 or any
      Affiliate of the Depositor shall be deemed not to be Outstanding and the
      Percentage Interest evidenced thereby shall not be taken into account in
      determining whether the requisite amount of Percentage Interests necessary
      to
      effect such consent has been obtained; provided,
      however,
      that if
      any such Person (including the Depositor) owns 100.00% of the Percentage
      Interests evidenced by a Class of Certificates, such Certificates shall be
      deemed to be Outstanding for purposes of any provision hereof that requires
      the
      consent of the Holders of Certificates of a particular Class as a condition
      to the taking of any action hereunder. The Securities Administrator is entitled
      to rely conclusively on a certification of the Depositor or any Affiliate of
      the
      Depositor in determining which Certificates are registered in the name of an
      Affiliate of the Depositor.

    

    Certificate
      Group:
      The
      Group I Certificates or the Group II Certificates, as
      applicable.

    

    Certification
      Parties:
      As
      defined in Section 3.24.

    

    Certifying
      Person:
      As
      defined in Section 3.24.

    

    Citibank:
      Citibank, N.A., and its successors in interest.

    

    CitiMortgage:
      CitiMortgage, Inc., and its successors in interest. 

    

    Class:
      All
      Certificates bearing the same class designation as set forth in the Preliminary
      Statement.

    

    Class I-A
      Certificates:
      All
      Certificates bearing the Class designation of “Class I-A”.

    

    Class II-A-1
      Certificates:
      All
      Certificates bearing the Class designation of “Class II-A-1”.

    

    Class II-A-2
      Certificates:
      All
      Certificates bearing the Class designation of “Class II-A-2”.

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    

    Class II-A-3
      Certificates:
      All
      Certificates bearing the Class designation of “Class II-A-3”.

    

    Class II-A-4
      Certificates:
      All
      Certificates bearing the Class designation of “Class II-A-4”.

    

    Class A
      Certificates:
      As
      specified in the Preliminary Statement.

    

    Class Certificate
      Balance:
      With
      respect to any Class of LIBOR Certificates and as to any date of determination,
      the aggregate of the Certificate Balances of all Certificates of such
      Class as of such date. With respect to the Class X, Class P and Class R
      Certificates, zero. With respect to any Lower Tier Interest and as to any date
      of determination, the initial Class Principal Balance as shown or described
      in
      the table set forth in the Preliminary Statement to this Agreement for the
      issuing REMIC, as reduced by any principal distributed with respect to such
      Lower Tier Interest and Realized Losses allocated to such Lower Tier
      Interest.

    

    Class
      I Shortfalls:
      As
      defined in Section 8.11 hereof. For
      purposes of clarity, the aggregate Class I Shortfall for any Distribution Date
      shall equal the amount payable to the Derivative Counterparty on such
      Distribution Date in excess of the amount payable with respect to the Class
      LT3-I interest in the Upper Tier REMIC on such Distribution Date, all as further
      provided in Section 8.11 hereof. 

    

    Class
      M Available Funds Cap:
      With
      respect to the Class M Certificates as of any Distribution Date, a per annum
      rate equal to the weighted average of the Group I Available Funds Cap and the
      Group II Available Funds Cap, weighted on the basis of the Group Subordinate
      Amount for the Group I Mortgage Loans and the Group Subordinate Amount for
      the
      Group II Mortgage Loans, respectively.

    

    Class M
      Certificates:
      As
      specified in the Preliminary Statement.

    

    Class M
      Principal Payment Amount:
      With
      respect to any Distribution Date and any Class of Class M
      Certificates, the lesser of (i) the excess of (a) the Principal
      Payment Amount over (b) the aggregate amount distributed on that
      Distribution Date as principal to all Classes of Certificates more senior than
      that Class of Class M Certificates (provided,
      however,
      for
      this purpose, the Class M-1, Class M-2 and Class M-3 Certificates will be
      treated as having the same seniority) and (ii) the excess of (a) the sum of
      the
      aggregate Class Certificate Balances of all Class of Certificates more
      senior than that Class of Class M Certificates (after giving effect to
      all amounts distributed on that Distribution Date to those Classes of more
      senior certificates (provided,
      however,
      for
      this purpose, the Class M-1, Class M-2 and Class M-3 Certificates will be
      treated as having the same seniority)) and the Class Certificate Balance of
      that Class of Class M Certificates immediately prior to that
      Distribution Date over (b) the lesser of:

    

    (x) the
      percentage set forth in the table below for the applicable Class of
      Class M Certificates multiplied by the aggregate Stated Principal Balance
      of the Mortgage Loans for that Distribution Date:

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    

    

    
      	
              Class

            	 	
              Percentage

            
	
              M-1,
                M-2 and M-3

            	 	
              77.30%*

            
	
              M-4

            	 	
              80.90%

            
	
              M-5

            	 	
              84.30%

            
	
              M-6

            	 	
              87.00%

            
	
              M-7

            	 	
              89.70%

            
	
              M-8

            	 	
              91.10%

            
	
              M-9

            	 	
              93.80%

            
	
              M-10

            	 	
              96.20%

            

    

    and

    

    (y) the
      excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans
      for that Distribution Date over 0.50% of the aggregate Stated Principal Balance
      of the Mortgage Loans as of the Cut-off Date, until the Class Certificate
      Balance of that Class of Class M Certificates has been reduced to
      zero.

    

    _______________

    *
      The
      amount calculated according to such percentage will be allocated sequentially
      to
      the Class M-1, Class M-2 and Class M-3 Certificates.

    

    Class M-1
      Certificates:
      All
      Certificates bearing the Class designation of “Class M-1”.

    

    Class M-2
      Certificates:
      All
      Certificates bearing the Class designation of “Class M-2”.

    

    Class M-3
      Certificates:
      All
      Certificates bearing the Class designation of “Class M-3”.

    

    Class M-4
      Certificates:
      All
      Certificates bearing the Class designation of “Class M-4”.

    

    Class M-5
      Certificates:
      All
      Certificates bearing the Class designation of “Class M-5”.

    

    Class M-6
      Certificates:
      All
      Certificates bearing the Class designation of “Class M-6”.

    

    Class M-7
      Certificates:
      All
      Certificates bearing the Class designation of “Class M-7”.

    

    Class M-8
      Certificates:
      All
      Certificates bearing the Class designation of “Class M-8”.

    

    Class M-9
      Certificates:
      All
      Certificates bearing the Class designation of “Class M-9”.

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    

    Class M-10
      Certificates:
      All
      Certificates bearing the Class designation of “Class M-10”.

    

    Class P
      Certificates:
      All
      Certificates bearing the Class designation of “Class P”.

    

    Class P
      Principal Amount:
      As of
      the Closing Date, $100.00.

    

    Class R
      Certificates:
      All
      Certificates bearing the Class designation of “Class R”.

    

    Class X
      Certificates:
      All
      Certificates bearing the Class designation of “Class X”.

    

    Class
      X Distributable Amount:
      With
      respect to any Distribution Date, the amount of interest that has accrued on
      the
      Class X Notional Balance, as described in the Preliminary Statement, but that
      has not been distributed prior to such date. In addition, such amount shall
      include the initial Overcollateralization Amount of $14,783,741.03
      ($14,783,841.03 less $100 of such amount allocated to the Class P Certificates)
      to the extent such amount has not been distributed on an earlier Distribution
      Date as part of the Overcollateralization Reduction Amount. 

    

    Class
      X Notional Balance:
      With respect to
      any Distribution Date (and the related Interest Accrual Period) the aggregate
      principal balance of the regular interests in REMIC 2 as specified in the
      Preliminary Statement hereto.

    

    Closing
      Date:
      January
      30, 2007.

    

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

    

    Collateral
      Account:
      The
      account maintained by the trustee of the Supplemental Interest Trust in
      accordance with the provisions of Section 4.06(b).

    

    Collection
      Account:
      As
      defined in Section 3.10(a).

    

    Commission:
      The
      United States Securities and Exchange Commission.

    

    Compensating
      Interest:
      For any
      Distribution Date, the lesser of (a) the amount, if any, by which the
      Prepayment Interest Shortfall, if any, for such Distribution Date, with respect
      to all voluntary Principal Prepayments (excluding any payments made upon
      liquidation of any Mortgage Loan) exceeds all Prepayment Interest Excesses
      for
      such Distribution Date, and (b) the aggregate amount of the Servicing Fee
      actually retained by or paid to the Servicer for such Distribution
      Date.

    

    Condemnation
      Proceeds:
      All
      awards or settlements in respect of a Mortgaged Property, whether permanent
      or
      temporary, partial or entire, by exercise of the power of eminent domain or
      condemnation.

    

    Corporate
      Trust Office:
      With
      respect to the Securities Administrator, (i) for transfer, presentation or
      surrender of Certificates, the office at 111 Wall Street, 15th
      Floor
      Window, New York, New York 10005, Attention: Corporate Trust Services - HASCO
      2007-OPT1, and (ii) for all other purposes, 388
      Greenwich Street, 14th
      Floor,
      New York, New York 10013, Attention: Structured Finance Agency and Trust -
      HASCO
      2007-OPT1
      or at
      such other address as the Securities Administrator may designate from time
      to
      time by notice to the Certificateholders, the Depositor, the Master Servicer
      and
      the Trustee. With respect to the Trustee, the designated office of the Trustee
      in the State of California at which any particular time its corporate trust
      business with respect to this Agreement is administered, which office at the
      date of the execution of this Agreement is located at 1761 East St. Andrew
      Place, Santa Ana, California 92705-4934, Attention: Trust Administration -
      HB0701, facsimile number (714) 247-6329, and its telephone number is (714)
      247-6000 and which is also the address to which notices to and correspondence
      with the Trustee under this Agreement should be directed. 

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    

    Corresponding
      Class:
      As set
      forth in first table under the heading REMIC 2 and in the first table under
      the
      heading Upper Tier REMIC in the Preliminary Statement.

    

    Credit
      Enhancement Percentage:
      With
      respect to any Distribution Date, the percentage obtained by dividing
      (x) the sum of (i) the aggregate Class Certificate Balance of the
      Class M Certificates and (ii) the Overcollateralization Amount
      (assuming the Overcollateralization Amount is not less than zero and in each
      case after taking into account the distributions of the Principal Payment Amount
      for such Distribution Date assuming no Trigger Event has occurred) by
      (y) the aggregate Stated Principal Balance of the Mortgage Loans for such
      Distribution Date.

    

    Credit
      Risk Manager:
      OfficeTiger Global Real Estate Services Inc., formerly known as MortgageRamp,
      Inc., and its successors and assigns. 

    

    Credit
      Risk Management Agreement:
      The
Loan
      Performance Monitoring
      Agreement dated as of the Closing Date, entered into by the Servicer and the
      Credit Risk Manager.

    

    Credit
      Risk Manager’s Fee:
      With
      respect to any Distribution Date and each Mortgage Loan, an amount equal to
      the
      product of (a) one twelfth, (b) the Credit Risk Manager’s Fee Rate and (c) the
      Stated Principal Balance of such Mortgage Loan as of the first day of the
      related Due Period; provided, however, that such amount shall not be less than
      $1,500.00 on each Distribution Date.

    

    Credit
      Risk Manager’s Fee Rate:
      0.014% per
      annum.

    

    Credit
      Support Annex:
      The
      credit support annex to the Swap Agreement and the Cap Agreement dated as of
      January 30, 2007, between the trustee of the Supplemental Interest Trust, on
      behalf of the Supplemental Interest Trust, the Swap Counterparty and Cap
      Counterparty.

    

    Cumulative
      Loss Percentage:
      With
      respect to any Distribution Date, the percentage equivalent of a fraction,
      the
      numerator of which is the aggregate amount of Realized Losses incurred from
      the
      Cut-off Date to the last day of the calendar month preceding the month in which
      such Distribution Date occurs and the denominator of which is the Cut-off Date
      Pool Principal Balance of the Mortgage Loans.

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    

    Cumulative
      Loss Trigger Event:
      If,
      with respect to any Distribution Date, the quotient (expressed as a
      percentage) of (x) the aggregate amount of Realized Losses incurred since
      the Cut-off Date through the last day of the related Prepayment Period, divided
      by (y) the Cut-off Date Pool Principal Balance, exceeds the applicable loss
      percentages set forth below with respect to such Distribution Date:

    

    
      	
              Distribution
                Date Occurring In:

            	 	
              Loss
                Percentage:

            
	
              February
                2009 through January 2010 

            	 	
              1.75%
                for the first month, plus an additional 1/12th of 

              2.10%
                for each month thereafter 

            
	
              February
                2010 through January 2011 

            	 	
              3.85%
                for the first month, plus an additional 1/12th of 

              2.10%
                for each month thereafter 

            
	
              February
                2011 through January 2012

            	 	
              5.95%
                for the first month, plus an additional 1/12th of 

              1.70%
                for each month thereafter 

            
	
              February
                2012 through January 2013

            	 	
              7.65%
                for the first month, plus an additional 1/12th of 

              0.85%
                for each month thereafter 

            
	
              February
                2013 and thereafter

            	 	
              8.50%

            

    

    

    Custodial
      File:
      The
      meaning assigned to such term in Section 2.01(a).

    

    Custodian:
      Initially, Wells Fargo, or any successor custodian appointed
      hereunder.

    

    Cut-off
      Date:
      January
      1, 2007.

    

    Cut-off
      Date Pool Principal Balance:
      The
      aggregate Stated Principal Balances of all Mortgage Loans as of the Cut-off
      Date.

    

    Cut-off
      Date Principal Balance:
      As to
      any Mortgage Loan, the Stated Principal Balance thereof as of the close of
      business on the Cut-off Date.

    

    Data
      Tape Information:
      With
      respect to each Mortgage Loan, the same information (provided as of the Cut-off
      Date) included in the data fields specified under the definition of “Mortgage
      Loan Schedule” in the Master MLPSA, with such additions and modifications as
      agreed upon by the Originator and the Depositor. A copy of the Master MLPSA
      is
      attached as Exhibit Q hereto.

    

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

    

    Defaulting
      Party:
      As
      defined in the Swap Agreement or Cap Agreement, as applicable.

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    

    Deficient
      Valuation:
      With
      respect to any Mortgage Loan, a valuation of the related Mortgaged Property
      by a
      court of competent jurisdiction in an amount less than then outstanding
      principal balance of the Mortgage Loan, which valuation results from a
      proceeding initiated under the United States Bankruptcy Code.

    

    Definitive
      Certificates:
      Any
      Certificate evidenced by a Physical Certificate and any Certificate issued
      in
      lieu of a Book-Entry Certificate pursuant to Section 5.02(e).

    

    Deleted
      Mortgage Loan:
      As
      defined in Section 2.03.

    

    Delinquency
      Rate:
      For any
      calendar month, a fraction, expressed as a percentage, the numerator of which
      is
      the aggregate Stated Principal Balance of 60+ Day Delinquent Mortgage Loans
      as
      of the close of business on the last day of such month (not including those
      Mortgage Loans that are liquidated as of the end of the related Prepayment
      Period), and the denominator of which is the aggregate Stated Principal Balance
      of the Mortgage Loans as of the close of business on the last day of such month
      (not including those Mortgage Loans that are liquidated as of the end of the
      related Prepayment Period).

    

    Delinquency
      Trigger Event:
      With
      respect to any Distribution Date on or after the Stepdown Date, the
      circumstances in which the Rolling Three Month Delinquency Rate as of the last
      day of the immediately preceding calendar month exceeds the applicable
      percentages of the Credit Enhancement Percentage for the prior Distribution
      Date
      (for the purpose of this definition, the Credit Enhancement Percentage for
      each
      class of the Class M Certificates will be calculated by dividing (x) the sum
      of
      (i) the aggregate Class Certificate Balance of the Class M Certificates with
      a
      lower payment priority than that Class and (ii) the Overcollateralization Amount
      (in each case after taking into account distributions of the related Principal
      Payment Amount for that Distribution Date) by (y) the aggregate Stated Principal
      Balance of the Mortgage Loans for that Distribution Date) as
      set
      forth below for the most senior Class of LIBOR Certificates then
      outstanding:

    

    
      	
              Class

            	
              Percentage

            
	
              A

            	
              38.10%

            
	
              M-1

            	
              48.49%

            
	
              M-2

            	
              60.61%

            
	
              M-3

            	
              70.49%

            
	
              M-4

            	
              83.78%

            
	
              M-5

            	
              101.92%

            
	
              M-6

            	
              123.09%

            
	
              M-7

            	
              155.36%

            
	
              M-8

            	
              179.80%

            
	
              M-9

            	
              258.09%

            
	
              M-10

            	
              421.09%

            

    

    

    Denomination:
      With
      respect to each Certificate, the amount set forth on the face thereof as the
      “Initial Certificate Balance of this Certificate” or the Percentage Interest
      appearing on the face thereof.

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

    

    Depositor:
      HSI
      Asset Securitization Corporation, a Delaware corporation, and its successors
      in
      interest.

    

    Depository:
      The
      initial Depository shall be The Depository Trust Company, the nominee of which
      is CEDE & Co., as the registered Holder of the Book-Entry Certificates.
      The Depository shall at all times be a “clearing corporation” as defined in
      Section 8-102(a)(5) of the Uniform Commercial Code of the State of New
      York.

    

    Depository
      Institution:
      Any
      depository institution or trust company, including the Trustee and the
      Securities Administrator, that (a) is incorporated under the laws of the
      United States of America or any State thereof, (b) is subject to
      supervision and examination by federal or state banking authorities and
      (c) has outstanding unsecured commercial paper or other short-term
      unsecured debt obligations that are rated P-1 by Moody’s, F1+ by Fitch and A-1
      by Standard & Poor’s.

    

    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.

    

    Derivative
      Agreement:
      The
      Swap Agreement and the Cap Agreement.

    

    Derivative
      Counterparty:
      Collectively, the Cap Counterparty and the Swap Counterparty.

    

    Derivative
      Payment Date:
      For so
      long as either the Cap Agreement or the Swap Agreement is in effect, the
      Business Day preceding each Distribution Date.

    

    Determination
      Date:
      With
      respect to each Remittance Date, the 15th day (or if such day is not a Business
      Day, the immediately preceding Business Day) in the calendar month in which
      such
      Remittance Date occurs.

    

    Disqualified
      Non-U.S. Person:
      With
      respect to a Class R Certificate, any Non-U.S. Person or agent thereof
      other than (i) a Non-U.S. Person that holds the Class R 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
      IRS Form W-8ECI or (ii) a Non-U.S. Person that has delivered to both the
      transferor and the Securities Administrator an opinion of a nationally
      recognized tax counsel to the effect that the transfer of the Class R
      Certificate to it is in accordance with the requirements of the Code and the
      regulations promulgated thereunder and that such transfer of the Class R
      Certificate will not be disregarded for federal income tax
      purposes.

    

    Distribution
      Account:
      The
      separate Eligible Account created and maintained by the Securities Administrator
      pursuant to Section 3.07(e) in the name of the Securities Administrator as
      paying agent for the benefit of the Trustee and the Certificateholders and
      designated “Citibank, N.A. as paying agent in trust for registered holders of
      HSI Asset Securitization Corporation Trust 2007-OPT1 Mortgage Pass-Through
      Certificates, Series 2007-OPT1”. Funds in the Distribution Account shall be
      held in trust for the Certificateholders for the uses and purposes set forth
      in
      this Agreement.

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    

    Distribution
      Date:
      The
      25th day of each calendar month, or if such day is not a Business Day, the
      next
      succeeding Business Day, commencing in February 2007.

    

    Document
      Certification and Exception Report:
      The
      form of report attached to Exhibit F hereto.

    

    Due
      Date:
      The day
      of the month on which the Scheduled Payment is due on a Mortgage Loan, exclusive
      of any days of grace.

    

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

    

    Early
      Termination Event:
      As
      defined in the Derivative Agreement.

    

    EDGAR:
      The
      Commission’s Electronic Data Gathering and Retrieval System.

    

    Eligible
      Account:
      Either
      (i) an account maintained with a federal or state-chartered depository
      institution or trust company that complies with the definition of Eligible
      Institution, (ii) an account maintained with the corporate trust department
      of a
      federal depository institution or state-chartered depository institution subject
      to regulations regarding fiduciary funds on deposit similar to Title 12 of
      the
      U.S. Code of Federal Regulation Section 9.10(b), which, in either case, has
      corporate trust powers and is acting in its fiduciary capacity or (iii) any
      other account acceptable to each Rating Agency. Eligible Accounts may bear
      interest, and may include, if otherwise qualified under this definition,
      accounts maintained with the Securities Administrator.

    

    Eligible
      Institution:
      A
      federal or state-chartered depository institution or trust company the
      commercial paper, short-term debt obligations, or other short-term deposits
      of
      which are rated at least “A-1+” by Standard & Poor’s if the amounts on
      deposit are to be held in the account for no more than 365 days (or at least
      “A-2” if the amounts on deposit are to be held in the account for no more than
      30 days), “P-1” by Moody’s and “F1+” by Fitch (or a comparable rating if another
      Rating Agency is specified by the Depositor by written notice to each of the
      Servicer and the Securities Administrator) or long-term unsecured debt
      obligations are rated at least “AA-” by Standard & Poor’s if the amounts on
      deposit are to be held in the account for no more than 365 days.

    

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

    

    ERISA-Qualifying
      Underwriting:
      A best
      efforts or firm commitment underwriting or private placement that meets the
      requirements of Prohibited Transaction Exemption (“PTE”) 96-84,
      61 Fed. Reg. 58234 (1996), as amended by PTE 97-34, 62 Fed. Reg. 39021
      (1997), PTE 2000-58, 65 Fed. Reg. 67765 (2000) and PTE 2002-41, 67 Fed.
      Reg. 54487 (2002) (or any successor thereto), or any substantially
      similar administrative exemption granted by the U.S. Department of
      Labor.

    

    ERISA-Restricted
      Certificate:
      As
      specified in the Preliminary Statement.

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    

    ERISA-Restricted
      Trust Certificate:
      As
      specified in the Preliminary Statement.

    

    Escrow
      Account:
      The
      Eligible Account or Accounts established and maintained by the Servicer pursuant
      to Section 3.09.

    

    Escrow
      Payments:
      As
      defined in Section 3.09.

    

    Event
      of Default:
      As
      defined in Section 7.01.

    

    Excess
      Overcollateralization
      Amount:
      With
      respect to any Distribution Date, the excess, if any, of (a) the
      Overcollateralization Amount (for purposes of this calculation only, assuming
      100% of the Principal Remittance Amount is applied as a principal payment to
      the
      LIBOR Certificates on such Distribution Date, but before giving effect to any
      other distributions on the LIBOR Certificates in reduction of their respective
      Class Certificate Balances on such Distribution Date) on such Distribution
      Date
      over (b) the Overcollateralization Target Amount for such Distribution
      Date.

    

    Excess
      Reserve Fund Account:
      The
      separate Eligible Account created and maintained by the Securities Administrator
      under the Supplemental Interest Trust pursuant to Sections 3.07(b) and
      3.07(c) in the name of the Securities Administrator as paying agent for the
      benefit of the LIBOR Certificateholders and the Class X Certificateholders
      and
      designated “Citibank, N.A. as paying agent in trust for registered holders of
      HSI Asset Securitization Corporation Trust 2007-OPT1, Mortgage Pass-Through
      Certificates, Series 2007-OPT1”. Funds in the Excess Reserve Fund Account shall
      be held in trust for such Certificateholders for the uses and purposes set
      forth
      in this Agreement. Amounts on deposit in the Excess Reserve Fund Account shall
      not be invested. The Excess Reserve Fund Account shall be considered part of
      the
      Supplemental Interest Trust but not part of any REMIC.

    

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

    

    Excluded
      Trust Assets:
      As
      defined in the Preliminary Statement.

    

    Expense
      Adjusted Mortgage Rate:
      With
      respect to any Distribution Date and as to each Mortgage Loan, the per annum
      rate equal to the Mortgage Rate as of the first day of the related Due Period
      less the Expense Fee Rate.

    

    Expense
      Fee Rate:
      As to
      each Mortgage Loan, a per annum rate equal to the Servicing Fee
      Rate.

    

    Expense
      Fees:
      As to
      each Mortgage Loan and any Distribution Date, the Servicing Fee.

    

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

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

    

    Fannie
      Mae:
      The
      Federal National Mortgage Association, or any successor thereto.

    

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

    

    Final
      Recovery Determination:
      With
      respect to any defaulted Mortgage Loan or any REO Property (other than a
      Mortgage Loan or REO Property purchased by the Originator or the Sponsor as
      contemplated by this Agreement or the Purchase Agreement, as applicable), a
      determination made by the Servicer that all Insurance Proceeds, Condemnation
      Proceeds, Liquidation Proceeds and other payments or recoveries which the
      Servicer, in its reasonable good faith judgment, expects to be finally
      recoverable in respect thereof have been so recovered. The Servicer shall
      maintain records, prepared by a Servicing Officer, of each Final Recovery
      Determination made thereby. 

    

    Final
      Scheduled Distribution Date:
      The
      Final Scheduled Distribution Date for each Class of Certificates is the
      Distribution Date occurring in December 2036. 

    

    Fitch:
      Fitch,
      Inc., or any successor thereto. If Fitch is designated as a Rating Agency in
      the
      Preliminary Statement, for purposes of Section 12.05 the address for
      notices to Fitch shall be Fitch, Inc., One State Street Plaza, New York, New
      York 10004, Attention: MBS Monitoring - HASCO (HSI Asset Securitization
      Corporation Trust 2007-OPT1), or such other address as Fitch may hereafter
      furnish to the Depositor and the Securities Administrator.

    

    Fixed
      Rate Mortgage Loan:
      A
      Mortgage Loan with respect to which the Mortgage Rate set forth in the Mortgage
      Note is fixed for the term of such Mortgage Loan.

    

    Form
      8-K Disclosure Information:
      As
      defined in Section 8.12(a)(iii).

    

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

    

    Gross
      Margin:
      With
      respect to each Adjustable Rate Mortgage Loan, the fixed percentage amount
      set
      forth in the related Mortgage Note to be added to the Index to determine the
      Mortgage Rate.

    

    Group I
      Available Funds Cap:
      With
      respect to the Group I Mortgage Loans as of any Distribution Date, the per
      annum
      rate (subject to adjustment based on the actual number of days elapsed in the
      related Interest Accrual Period) equal to (x) the weighted average of the
      Expense Adjusted Mortgage Rate for each Group I Mortgage Loan then in effect
      at
      the beginning of the related Due Period (not including for this purpose any
      Group I Mortgage Loans for which Principal Prepayments in Full have been
      received and distributed in the month prior to that Distribution Date)
minus
      (y) a
      percentage equal to the product of (i) a fraction, the numerator of which is
      equal to the portion of the Net Derivative Payment or Swap Termination Payment
      (other than a Swap Termination Payment resulting
      from a Derivative Counterparty Trigger Event)
      made to
      the Swap Counterparty with respect to such Due Period allocated to the Group
      I
      Mortgage Loans based on the applicable Group Percentage, and the denominator
      of
      which is equal to the aggregate Stated Principal Balance of the Group I Mortgage
      Loans as of the beginning of the related Due Period and (ii) 12.

    
      
        
        

      

      
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    Group I
      Certificates:
      As
      specified in the Preliminary Statement.

    

    Group I
      Mortgage Loans:
      The
      Mortgage Loans identified on the Mortgage Loan Schedule as Group I Mortgage
      Loans.

    

    Group I
      Principal Payment Amount:
      With
      respect to any Distribution Date prior to the Stepdown Date, the Principal
      Payment Amount multiplied by the Group Principal Allocation Percentage for
      the Group I Certificates.

    

    Group I
      Senior Principal Payment Amount:
      With
      respect to any Distribution Date, the lesser of (i) the Group I Principal
      Payment Amount for that Distribution Date and (ii) the excess of (a) the
      aggregate Class Certificate Balance of the Group I Certificates
      immediately prior to that Distribution Date over (b) the lesser of
      (x) 58.00% of the aggregate Stated Principal Balance of the Group I
      Mortgage Loans for that Distribution Date and (y) the excess, if any, of
      the aggregate Stated Principal Balance of the Group I Mortgage Loans for
      that Distribution Date over 0.50% of the aggregate State Principal Balance
      of
      the Group I Mortgage Loans as of the Cut-off Date.

    
       

    

    Group II
      Available Funds Cap:
      With
      respect to the Group II Mortgage Loans as of any Distribution Date, the per
      annum rate (subject to adjustment based on the actual number of days elapsed
      in
      the related Interest Accrual Period) equal to (x) the weighted average of the
      Expense Adjusted Mortgage Rate for each Group II Mortgage Loan then in effect
      at
      the beginning of the related Due Period (not including for this purpose any
      Group II Mortgage Loans for which Principal Prepayments in Full have been
      received and distributed in the month prior to that Distribution Date)
minus
      (y) a
      percentage equal to the product of (i) a fraction, the numerator of which is
      equal to the portion of the Net Derivative Payment or Swap Termination Payment
      (other than a Swap Termination Payment resulting from a Derivative Counterparty
      Trigger Event) made to the Swap Counterparty with respect to such Due Period
      allocated to the Group II Mortgage Loans based on the applicable Group
      Percentage, and the denominator of which is equal to the aggregate Stated
      Principal Balance of the Group II Mortgage Loans as of the beginning of the
      related Due Period and (ii) 12.

    

    Group II
      Certificates:
      As
      specified in the Preliminary Statement.

    

    Group II
      Mortgage Loans:
      The
      Mortgage Loans identified on the Mortgage Loan Schedule as Group II
      Mortgage Loans.

    

    Group II
      Principal Payment Amount:
      With
      respect to any Distribution Date, the Principal Payment Amount multiplied by
      the
      Group Principal Allocation Percentage for the Group II
      Certificates.

    

    Group II
      Senior Principal Payment Amount:
      With
      respect to any Distribution Date, the lesser of (i) the Group II Principal
      Payment Amount for that Distribution Date and (ii) the excess of (a) the
      aggregate Class Certificate Balance of the Group II Certificates
      immediately prior to that Distribution Date over (b) the lesser of (x)
      58.00% of the aggregate Stated Principal Balance of the Group II Mortgage
      Loans for that Distribution Date and (y) the excess, if any, of the
      aggregate Stated Principal Balance of the Group II Mortgage Loans for that
      Distribution Date over 0.50% of the aggregate State Principal Balance of the
      Group II Mortgage Loans as of the Cut-off Date.

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

    

    Group Available
      Funds Cap:
      The
      Group I Available Funds Cap or the Group II Available Funds Cap, as
      applicable.

    

    Group
      Percentage: For
      any
      Distribution Date and for each of the Group I Mortgage Loans and the
      Group II Mortgage Loans, a fraction (expressed as a percentage) the
      numerator of which is the aggregate Stated Principal Balance of the Mortgage
      Loans in such Loan Group as of the beginning of the related Due Period and
      the
      denominator of which is equal to the aggregate Stated Principal Balance of
      all
      the Mortgage Loans as of such date.

    

    Group Principal
      Allocation Percentage:
      With
      respect to any Distribution Date, the percentage equivalent of a fraction,
      determined as follows:

    

    (i) with
      respect to the Group I Certificates, a fraction, the numerator of which is
      the portion of the Principal Remittance Amount for that Distribution Date that
      is attributable to the principal received or advanced on the Group I
      Mortgage Loans and the denominator of which is the Principal Remittance Amount
      for that Distribution Date; and

    

    (ii) with
      respect to the Group II Certificates, a fraction, the numerator of
      which is the portion of the Principal Remittance Amount for that Distribution
      Date that is attributable to the principal received or advanced on the
      Group II Mortgage Loans and the denominator of which is the Principal
      Remittance Amount for that Distribution Date.

    

    Group Subordinate
      Amount:
      For any
      Distribution Date and (i) for the Group I Mortgage Loans, the excess
      of the aggregate Stated Principal Balance of the Group I Mortgage Loans as
      of the beginning of the related Due Period over the Class Certificate
      Balance of the Group I Certificates immediately prior to such Distribution
      Date
      and (ii) for the Group II Mortgage Loans, the excess of the aggregate
      Stated Principal Balance of the Group II Mortgage Loans as of the beginning
      of the related Due Period over the aggregate Class Certificate Balance of
      the Group II Certificates immediately prior to the current Distribution Date.
      

    

    Independent:
      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. Independent means,
      when used with respect to any other Person, a Person who (A) is in fact
      independent of another specified Person and any Affiliate of such other Person,
      (B) does not have any material direct or indirect financial interest in such
      other Person or any Affiliate of such other Person, (C) is not connected with
      such other Person or any Affiliate of such other Person as an officer, employee,
      promoter, underwriter, trustee, partner, director or Person performing similar
      functions and (D) is not a member of the immediate family of a Person defined
      in
      clause (B) or (C) above.

    
      
        
        

      

      
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    Index:
      As to
      each Adjustable Rate Mortgage Loan, the six-month LIBOR index from time to
      time
      in effect for the adjustment of the Mortgage Rate as set forth in the related
      Mortgage Note.

    

    Initial
      Certification:
      As
      defined in Section 2.02.

    

    Initial
      Sale Date:
      The
      date the Mortgage Loan was purchased by the Sponsor from the Originator under
      the Master MLPSA.

    

    Insurance
      Policy:
      With
      respect to any Mortgage Loan included in the Trust Fund, any insurance policy,
      including, but not limited to, any standard hazard insurance policy, flood
      insurance policy, earthquake insurance policy, title insurance policy or Primary
      Mortgage Insurance Policy (if any), including all riders and endorsements
      thereto in effect, including any replacement policy or policies.

    

    Insurance
      Proceeds:
      With
      respect to each Mortgage Loan, proceeds of Insurance Policies insuring the
      Mortgage Loan or the related Mortgaged Property.

    

      Interest
        Accrual Period:
        With
        respect to each Class of LIBOR Certificates and any Distribution Date, the
        period commencing on the Distribution Date occurring in the month preceding
        the
        month in which the current Distribution Date occurs and ending on the day
        immediately preceding the current Distribution Date (or, in the case of the
        first Distribution Date, the period from and including the Closing Date to
        but
        excluding such first Distribution Date). For purposes of computing interest
        accruals on each Class of LIBOR Certificates, each Interest Accrual Period
        has the actual number of days in such month and each year is assumed to have
        360 days. With respect to
        each Class of Lower Tier Interests and any Distribution
        Date, the calendar month immediately preceding the month in which such
        Distribution Date occurs.

       

    

    Interest
      Carry Forward Amount:
      As of
      any Distribution Date and any Class of LIBOR Certificates, the sum of, if
      applicable, (i) the portion of the Interest Payment Amount from Distribution
      Dates prior to the current Distribution Date remaining unpaid immediately prior
      to the current Distribution Date (excluding any Basis Risk Carryover Amount
      with
      respect to such Class), and (ii) interest on the amount in clause (i) above
      at
      the applicable Interest Rate (to the extent permitted by applicable
      law).

    

    Interest
      Margin:
      Except
      as set forth in the following sentence, with respect to each Class of LIBOR
      Certificates, the following percentages: Class I-A Certificates, 0.140%;
      Class II-A-1 Certificates, 0.050%; Class II-A-2 Certificates, 0.110%;
      Class II-A-3 Certificates, 0.150%; Class II-A-4 Certificates, 0.220%;
      Class M-1 Certificates, 0.230%; Class M-2 Certificates, 0.270%;
      Class M-3 Certificates, 0.310%; Class M-4 Certificates, 0.380%;
      Class M-5 Certificates, 0.390%; Class M-6 Certificates, 0.460%,
      Class M-7 Certificates, 0.950%, Class M-8 Certificates, 1.550%,
      Class M-9 Certificates, 2.500% and Class M-10 Certificates, 3.000%. On the
      first Distribution Date after the Optional Termination Date, the Interest
      Margins shall increase to the following percentages: Class I-A
      Certificates, 0.280%; Class II-A-1 Certificates, 0.100%; Class II-A-2
      Certificates, 0.220%; Class II-A-3 Certificates, 0.300%; Class II-A-4
      Certificates, 0.440%; Class M-1 Certificates, 0.345%; Class M-2
      Certificates, 0.405%; Class M-3 Certificates, 0.465%; Class M-4
      Certificates, 0.570%; Class M-5 Certificates, 0.585%; Class M-6
      Certificates, 0.690%, Class M-7 Certificates, 1.425%, Class M-8
      Certificates, 2.325%, Class M-9 Certificates, 3.750% and Class M-10
      Certificates, 4.500%.

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

    

    Interest
      Payment Amount:
      With
      respect to any Distribution Date for each Class of LIBOR Certificates, the
      amount of interest accrued during the related Interest Accrual Period at the
      applicable Interest Rate on the related Class Certificate Balance
      immediately prior to such Distribution Date, as reduced by such Class’s share of
      Net Prepayment Interest Shortfalls and Relief Act Interest Shortfalls for such
      Distribution Date allocated to such Class pursuant to
      Section 4.02.

    

    Interest
      Rate:
      For
      each Class of LIBOR Certificates, each Class of Upper Tier REMIC Regular
      Interest and each class of Lower Tier Interest, the per annum rate set forth
      or
      calculated in the manner described in the Preliminary Statement.

    

    Interest
      Remittance Amount:
      With
      respect to any Distribution Date and the Mortgage Loans in a Loan Group, that
      portion of Available Funds attributable to interest relating to the Mortgage
      Loans in that Loan Group.

    

    Investment
      Account:
      As
      defined in Section 3.12(a).

    

    Investor:
      With
      respect to each MERS Designated Mortgage Loan, the Person named on the MERS
      System as the investor pursuant to the MERS Procedures Manual.

    

    IRS:
      The
      Internal Revenue Service.

    

    Late
      Collections:
      With
      respect to any Mortgage Loan and any Due Period, all amounts received after
      the
      Determination Date immediately following such Due Period, whether as late
      payments of Scheduled Payments or as Insurance Proceeds, Condemnation Proceeds,
      Liquidation Proceeds, Subsequent Recoveries or otherwise, which represent late
      payments or collections of principal and/or interest due (without regard to
      any
      acceleration of payments under the related Mortgage and Mortgage Note) but
      delinquent for such Due Period and not previously recovered.

    

    LIBOR:
      With
      respect to any Interest Accrual Period for the LIBOR Certificates, the per
      annum
      rate determined on the LIBOR Determination Date in the following manner by
      the
      Securities Administrator on the basis of the “Interest Settlement Rate” set by
      the British Bankers’ Association (the “BBA”) for one-month United States dollar
      deposits, as such rates appear on the Telerate Page 3750, as of 11:00 a.m.
      (London time) on such LIBOR Determination Date.

    

    If
      on
      such a LIBOR Determination Date, the BBA’s Interest Settlement Rate does not
      appear on the Telerate Page 3750 as of 11:00 a.m. (London time), or if the
      Telerate Page 3750 is not available on such date, the Securities Administrator
      will obtain such rate from Reuters’ “page LIBOR 01” or, if such rate does not
      appear therein, the Securities Administrator will obtain such rate from
      Bloomberg’s page “BBAM.” If such rate is not published for such LIBOR
      Determination Date, LIBOR for such date will be the most recently published
      Interest Settlement Rate. In the event that the BBA no longer sets an Interest
      Settlement Rate, the Securities Administrator will designate an alternative
      index that has performed, or that the Securities Administrator expects to
      perform, in a manner substantially similar to the BBA’s Interest Settlement
      Rate. The Securities Administrator will select a particular index as the
      alternative index only if it receives an Opinion of Counsel, which opinion
      shall
      be an expense reimbursed from the Distribution Account pursuant to Section
      4.01,
      that the selection of such index will not cause any of the REMICs to lose their
      classification as REMICs for federal income tax purposes.

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

    

    LIBOR
      Certificates:
      As
      specified in the Preliminary Statement.

    

    LIBOR
      Determination Date:
      With
      respect to any Interest Accrual Period for the LIBOR Certificates, the second
      London Business Day preceding the commencement of such Interest Accrual
      Period.

    

    Liquidated
      Mortgage Loan:
      With
      respect to any Distribution Date, a defaulted Mortgage Loan (including any
      REO
      Property) which was liquidated in the calendar month preceding the month of
      such
      Distribution Date and as to which the Servicer has certified to the Securities
      Administrator that it has received all amounts it expects to receive in
      connection with the liquidation of such Mortgage Loan including the final
      disposition of an REO Property.

    

    Liquidation
      Proceeds:
      Cash
      received in connection with the liquidation of a Liquidated Mortgage Loan,
      whether through a trustee’s sale, foreclosure sale or otherwise.

    

    Loan
      Group:
      The
      Group I Mortgage Loans or the Group II Mortgage Loans, as
      applicable.

    

    Loan-to-Value
      Ratio
      or
LTV:
      As of
      any date and as to any Mortgage Loan, the ratio (expressed as a
      percentage) of the outstanding principal balance of the Mortgage Loan to
      (a) in the case of a purchase, the lesser of (i) the sale price of the
      Mortgaged Property and (ii) its appraised value at the time of sale or
      (b) in the case of a refinancing or modification, the appraised value of
      the Mortgaged Property at the time of the refinancing or
      modification.

    

    London
      Business Day:
      Any day
      on which dealings in deposits of United States dollars are transacted in the
      London interbank market.

    

    Lower
      Tier Interest:
      An
      interest in any REMIC formed hereby other than the Upper Tier
      REMIC.

    

    Master
      Agreement:
      The
      ISDA Form Master Agreement, dated January 30, 2007, entered into between the
      Supplemental Interest Trust and the Derivative Counterparty.

    

    Master
      MLPSA:
      The
      Second Amended and Restated Master Mortgage Loan Purchase and Servicing
      Agreement among the Originator, Option One Mortgage Capital Corporation, Owner
      Trusts 2001-1A, 2001-1B, 2001-2, 2002-3, 2003-4, 2003-5, 2005-6, 2005-7, 2005-8
      and 2005-9, as sellers, and the Sponsor, as purchaser of the Mortgage Loans,
      dated November 1, 2006 (for first and second lien, fixed and adjustable rate
      mortgage loans).

    

    Master
      Servicer:
      CitiMortgage, and any successors in interest, and if a successor master servicer
      is appointed hereunder, such successor.

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

    

    Master
      Servicer Event of Default:
      As
      defined in Section 9.06.

    

    Master
      Servicer Float Period:
      With
      respect to each Distribution
      Date
      and the
      related amounts in the Master Servicing Account, the period commencing on the
      Remittance Date immediately preceding the related Master
      Servicer Remittance Date
      and
      ending on such Master
      Servicer Remittance Date.
      

    

    Master
      Servicer Remittance Date:
      As to
      any Distribution Date, 12:00 noon New York City time on the first Business
      Day
      immediately preceding such Distribution Date. 

    

    Master
      Servicing Account:
      The
      separate Eligible Account created and maintained by the Master Servicer pursuant
      to Section 3.07(d) in the name of the Master Servicer for the benefit of
      the Trustee and the Certificateholders and designated “CitiMortgage, Inc., in
      trust for registered holders of HSI Asset Securitization Corporation Trust
      2007-OPT1 Mortgage Pass-Through Certificates, Series 2007-OPT1”. Funds in
      the Master Servicing Account shall be held in trust for the Certificateholders
      for the uses and purposes set forth in this Agreement.

    

    Master
      Servicing Officer:
      Any
      officer of the Master Servicer involved in, or responsible for, the
      administration and master servicing of the Mortgage Loans.

    

    Maximum
      Mortgage Rate:
      With
      respect to each Adjustable Rate Mortgage Loan, a rate that (i) is set forth
      on the Data Tape Information and in the related Mortgage Note and (ii) is
      the maximum interest rate to which the Mortgage Rate on such Mortgage Loan
      may
      be increased during the lifetime of such Mortgage Loan.

    

    MERS:
      Mortgage Electronic Registration Systems, Inc., a Delaware corporation, and
      its
      successors in interest.

    

    MERS
      Designated Mortgage Loan:
      Mortgage Loans for which (a) the Originator has designated or will
      designate MERS as, and has taken or will take such action as is necessary to
      cause MERS to be, the mortgagee of record, as nominee for the Originator, in
      accordance with the MERS Procedure Manual and (b) the Originator has
      designated or will designate the Trustee as the Investor on the MERS
      System.

    

    MERS
      Procedure Manual:
      The
      MERS Procedures Manual, as it may be amended, supplemented or otherwise modified
      from time to time.

    

    MERS®
      System:
      MERS
      mortgage electronic registry system, as more particularly described in the
      MERS
      Procedures Manual.

    

    MIN:
      The
      Mortgage Identification Number of Mortgage Loans registered with MERS on the
      MERS® System.

    

    Minimum
      Mortgage Rate:
      With
      respect to each Adjustable Rate Mortgage Loan, a rate that (i) is set forth
      on the Data Tape Information and in the related Mortgage Note and (ii) is
      the minimum interest rate to which the Mortgage Rate on such Mortgage Loan
      may
      be decreased during the lifetime of such Mortgage Loan.

    
      
        
        

      

      
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    Monthly
      Statement:
      The
      statement made available to the Certificateholders by the Securities
      Administrator through its website pursuant to Section 4.03.

    

    Moody’s:
      Moody’s
      Investors Service, Inc. If Moody’s is designated as a Rating Agency in the
      Preliminary Statement, for purposes of Section 12.05 the address for
      notices to Moody’s shall be Moody’s Investors Service, Inc., 99 Church Street,
      New York, New York 10007, Attention: Residential Mortgage Pass-Through Group,
      HASCO (HSI Asset Securitization Corporation Trust Series 2007-OPT1), or such
      other address as Moody’s may hereafter furnish to the Depositor and the
      Securities Administrator.

    

    Mortgage:
      The
      mortgage, deed of trust or other instrument identified on the Mortgage Loan
      Schedule as securing a Mortgage Note.

    

    Mortgage
      File:
      The
      items pertaining to a particular Mortgage Loan contained in either the Servicing
      File or Custodial File.

    

    Mortgage
      Loan:
      An
      individual Mortgage Loan that is the subject of this Agreement, each Mortgage
      Loan originally sold and subject to this Agreement being identified on the
      Mortgage Loan Schedule, which Mortgage Loan includes, without limitation, the
      Mortgage File, the Scheduled Payments, Principal Prepayments, Liquidation
      Proceeds, Subsequent Recoveries, Condemnation Proceeds, Insurance Proceeds,
      REO
      Disposition proceeds, Prepayment Charges, and all other rights, benefits,
      proceeds and obligations arising from or in connection with such Mortgage Loan,
      excluding replaced or repurchased Mortgage Loans.

    

    Mortgage
      Loan Schedule:
      A
      schedule of Mortgage Loans prepared by the Depositor, delivered to the Trustee
      on the Closing Date and referred to on Schedule I, such schedule setting
      forth the Data Tape Information with respect to each Mortgage Loan.

    

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

    

    Mortgage
      Rate:
      The
      annual rate of interest borne on a Mortgage Note, which shall be adjusted from
      time to time.

    

    Mortgaged
      Property:
      With
      respect to each Mortgage Loan, the real property (or leasehold estate, if
      applicable) identified on the Mortgage Loan Schedule as securing repayment
      of
      the debt evidenced by the related Mortgage Note.

    

    Mortgagor:
      The
      obligor(s) on a Mortgage Note.

    

    Net
      Derivative Payment:
      The net
      payment required to be made on the Derivative Payment Date either by (a) the
      Supplemental Interest Trust to the Derivative Counterparty, to the extent that
      the fixed amount payable by the Supplemental Interest Trust under the terms
      of
      the Swap Agreement exceeds the aggregate amount of the corresponding floating
      amount payable by the Derivative Counterparty under the terms of the Swap
      Agreement and any amounts payable by the Derivative Counterparty under the
      Cap
      Agreement, or (b) the Derivative Counterparty to the Supplemental Interest
      Trust, to the extent that the aggregate amount of the floating amount payable
      by
      the Derivative Counterparty under the terms of the Swap Agreement and any such
      amount payable by the Derivative Counterparty under the Cap Agreement exceeds
      the corresponding fixed amount payable by the Supplemental Interest Trust under
      the terms of the Swap Agreement, plus in the case of a payment made under either
      clause (a) or clause (b) any unpaid amounts due under such clause from previous
      Derivative Payment Dates, and accrued interest thereon as provided in the
      applicable Derivative Agreement, as calculated by the Derivative Counterparty
      and furnished to the trustee of the Supplemental Interest Trust. Any Swap
      Termination Payment or Cap Termination Payment will be made exclusive of the
      Net
      Derivative Payment required to be made by the Derivative Counterparty or
      Supplemental Interest Trust, as applicable, under the Swap Agreement or the
      Cap
      Agreement.

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

    

    Net
      Monthly Excess Cash Flow:
      For any
      Distribution Date, the amount of interest and principal remaining for
      distribution pursuant to subsection 4.02(a)(iii) (before giving effect to
      distributions pursuant to such subsection).

    

    Net
      Prepayment Interest Shortfall:
      For any
      Distribution Date, the amount by which the sum of the Prepayment Interest
      Shortfalls for such Distribution Date exceeds the sum of Compensating Interest
      payments made with respect to such Distribution Date.

    

    Net
      Swap Payment:
      With
      respect to each Swap Payment Date, the net payment (not including any Swap
      Termination Payment) required to be made pursuant to the terms of the Swap
      Agreement plus any unpaid amounts due on previous Swap Payment Dates and accrued
      interest thereon as provided in the Swap Agreement, as calculated by the Swap
      Counterparty and furnished to the Securities Administrator.

    

    Net
      WAC Rate:
      With
      respect to any Distribution Date (and the related Interest Accrual Period),
      a
      per annum rate equal to the weighted average of the Expense Adjusted Mortgage
      Rates of the Mortgage Loans as of the first day of the related Due Period (not
      including for this purpose Mortgage Loans for which Principal Prepayments in
      Full have been received and distributed in the month prior to that Distribution
      Date).

    

    NIM
      Issuer:
      The
      entity established as the issuer of the NIM Securities.

    

    NIM
      Securities:
      Any
      debt securities secured or otherwise backed by some or all of the Class X
      and Class P Certificates that are rated by any Rating Agency.

    

    NIM
      Trustee:
      The
      indenture trustee for the NIM Securities.

    

    Non-Delay
      Certificates:
      As
      specified in the Preliminary Statement.

    

    Non-Permitted
      Transferee:
      A
      Person other than a Permitted Transferee.

    

    Non-U.S.
      Person:
      A
      person that is not a U.S. Person.

    

    Nonrecoverable
      P&I Advance:
      Any
      P&I Advance previously made or proposed to be made in respect of a Mortgage
      Loan or REO Property that, in the good faith business judgment (taking into
      account Accepted Servicing Practices) of the Servicer, the Master Servicer,
      as
      successor servicer, or any successor master servicer including the Trustee,
      as
      applicable, will not or, in the case of a proposed P&I Advance, would not be
      ultimately recoverable from related Late Collections on such Mortgage Loan
      or
      REO Property as provided herein.

    
      
        
        

      

      
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    Nonrecoverable
      Servicing Advance:
      Any
      Servicing Advances previously made or proposed to be made in respect of a
      Mortgage Loan or REO Property, which, in accordance with Accepted Servicing
      Practices, will not or, in the case of a proposed Servicing Advance, would
      not
      be ultimately recoverable from related Late Collections. 

    

    Notice
      of Final Distribution:
      The
      notice to be provided by the Securities Administrator pursuant to
      Section 11.02 to the effect that final distribution on any of the
      Certificates shall be made only upon presentation and surrender
      thereof.

    

    Offered
      Certificates:
      As
      specified in the Preliminary Statement.

    

    Offering
      Documents:
      The
      Prospectus and the Private Placement Memorandum.

    

    Officer’s
      Certificate:
      A
      certificate signed by an officer of the Servicer with responsibility for the
      servicing of the Mortgage Loans.

    

    Opinion
      of Counsel:
      A
      written opinion of counsel, which may be in-house or outside counsel to the
      Servicer, any Subservicer, the Depositor, the Sponsor, the Master Servicer,
      the
      Securities Administrator or the Trustee, acceptable to the Trustee or the
      Securities Administrator, as applicable (and/or such other Persons as may be
      set
      forth herein), except that any opinion of counsel relating to (a) the
      qualification of any REMIC created hereunder as a REMIC or (b) compliance with
      the REMIC Provisions must be an opinion of Independent counsel.

    

    Option
      One:
      Option
      One Mortgage Corporation, a California corporation, and its successors in
      interest.

    

    Option
      to Purchase: On
      the initial or any subsequent Optional Termination Date, the Master Servicer
      at
      its own option may purchase, or upon instruction by the Depositor shall
      purchase, the Mortgage Loans. In the event that the Depositor wishes to instruct
      the Master Servicer to purchase the Mortgage Loans on any Optional Termination
      Date, the Depositor shall provide instructions to the Master Servicer to
      exercise such option no later than 5:00p.m. on the third Business Day
      immediately preceding such Optional Termination Date, in which event the
      exercise by the Master Servicer of its option to purchase the Mortgage Loans
      shall be deemed to have been at the Depositor’s instruction.

    

    Optional
      Termination Date:
      Any
      Distribution Date on which the aggregate Stated Principal Balance of the
      Mortgage Loans, as of the last day of the related Due Period, is less than
      or
      equal to 10.00% of the Cut-off Date Pool Principal Balance.

    

    Originator:
      Option
      One and its successors in interest.

    

    OTS:
      Office
      of Thrift Supervision, and any successor thereto.

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

    

    Outstanding:
      With
      respect to the Certificates as of any date of determination, all Certificates
      theretofore executed and authenticated under this Agreement except:

    

    (i) Certificates
      theretofore canceled by the Securities Administrator or delivered to the
      Securities Administrator for cancellation; and

    

    (ii) Certificates
      in exchange for which or in lieu of which other Certificates have been executed
      and delivered by the Securities Administrator pursuant to this
      Agreement.

    

    Outstanding
      Mortgage Loan:
      As of
      any Due Date, a Mortgage Loan with a Stated Principal Balance greater than
      zero
      which was not the subject of a Principal Prepayment in Full prior to such Due
      Date and which did not become a Liquidated Mortgage Loan prior to such Due
      Date.

    

    Overcollateralization
      Amount:
      As of
      any Distribution Date, the excess, if any, of (a) the aggregate Stated
      Principal Balance of the Mortgage Loans for such Distribution Date over
      (b) the aggregate of the Class Certificate Balances of the LIBOR
      Certificates as of such Distribution Date (after giving effect to the payment
      of
      the Principal Remittance Amount on such Certificates on such Distribution
      Date).

    

    Overcollateralization
      Deficiency:
      With
      respect to any Distribution Date, the excess, if any, of (a) the
      Overcollateralization Target Amount applicable to such Distribution Date over
      (b) the Overcollateralization Amount (for purposes of this calculation
      only, assuming 100% of the Principal Remittance Amount is applied as a principal
      payment to the LIBOR Certificates on such Distribution Date, but before giving
      effect to any other distributions on the LIBOR Certificates in reduction of
      their respective Class Certificate Balances on such Distribution Date)
      applicable to such Distribution Date.

    

    Overcollateralization
      Reduction Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      Excess Overcollateralization Amount and (b) the Net Monthly Excess Cash
      Flow.

    

    Overcollateralization
      Target Amount:
      Prior
      to the Stepdown Date, an amount equal to 1.90% of the aggregate Stated Principal
      Balance of the Mortgage Loans as of the Cut-off Date. On and after the Stepdown
      Date provided a Trigger Event is not in effect, an amount equal to the greater
      of (i) 3.80% of the aggregate Stated Principal Balance of the Mortgage Loans
      as
      of the last day of the related Due Period and (ii) 0.50% of the aggregate Stated
      Principal Balance of the Mortgage Loans as of the Cut-off Date; provided,
      however,
      that
      if, on any Distribution Date a Trigger Event exists, the Overcollateralization
      Target Amount shall not be reduced to the applicable percentage of then current
      aggregate Stated Principal Balance of the Mortgage Loans until the Distribution
      Date on which a Trigger Event no longer exists but rather shall remain the
      Overcollateralization Target Amount as determined for the immediately preceding
      Distribution Date. When the Class Certificate Balance of each Class of
      LIBOR Certificates has been reduced to zero, the Overcollateralization Target
      Amount will thereafter equal zero.

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

    

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

    

    P&I
      Advance:
      As to
      any Mortgage Loan or REO Property, any advance made by the Servicer in respect
      of any Remittance Date representing the aggregate of all payments of principal
      and interest, net of the Servicing Fee, that were due during the related Due
      Period on the Mortgage Loans and that were delinquent on the related
      Determination Date, plus certain amounts representing assumed payments not
      covered by any current net income on the Mortgaged Properties acquired by
      foreclosure or deed in lieu of foreclosure as determined pursuant to Section
      4.01.

    

    Percentage
      Interest:
      As to
      any Certificate, the percentage interest evidenced thereby in distributions
      required to be made on the related Class, such percentage interest being set
      forth on the face thereof or equal to the percentage obtained by dividing the
      Denomination of such Certificate by the aggregate of the Denominations of all
      Certificates of the same Class.

    

    Permitted
      Investments:
      Any one
      or more of the following obligations or securities acquired at a purchase price
      of not greater than par, regardless of whether issued by the Servicer, the
      Securities Administrator, the Trustee or any of their respective
      Affiliates:

    

    (i) direct
      obligations of, or obligations fully guaranteed as to timely payment of
      principal and interest by, the United States or any agency or instrumentality
      thereof, provided such obligations are backed by the full faith and credit
      of
      the United States;

    

    (ii) demand
      and time deposits in, certificates of deposit of, or 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 and issued by, any Depository Institution
      and rated F1+ by Fitch, A-1+ by Standard & Poor’s and P-1 by
      Moody’s;

    

    (iii) repurchase
      obligations with respect to any security described in clause (i) above
      entered into with a Depository Institution (acting as principal);

    

    (iv) securities
      bearing interest or sold at a discount that are issued by any corporation
      incorporated under the laws of the United States of America or any state thereof
      and that are rated by Fitch, Moody’s and Standard & Poor’s (in each case, to
      the extent they are designated as Rating Agencies in the Preliminary Statement),
      and by each other Rating Agency that rates such securities, in its highest
      long-term unsecured rating categories at the time of such investment or
      contractual commitment providing for such investment;

    

    (v) commercial
      paper (including both non-interest-bearing discount obligations and
      interest-bearing obligations payable on demand or on a specified date not more
      than 30 days after the date of acquisition thereof) that is rated by Fitch,
      Moody’s and Standard & Poor’s (in each case, to the extent they are
      designated as Rating Agencies in the Preliminary Statement), and by each other
      Rating Agency that rates such securities, in its highest short-term unsecured
      debt rating available at the time of such investment;

    
      
        
        

      

      
        -36-

        
          

        

      

      
        
        

      

    

    

    (vi) units
      of
      money market funds, including money market funds managed by the Trustee, the
      Securities Administrator or an Affiliate thereof, that have been rated “Aaa” by
      Moody’s, “AAA” by Standard & Poor’s and, if rated by Fitch, “AAA” by
      Fitch; and

    

    (vii) if
      previously confirmed in writing to the Securities Administrator, any other
      demand, money market or time deposit, or any other obligation, security or
      investment, as may be acceptable to each of the Rating Agencies as a permitted
      investment of funds backing “Aaa” or “AAA” rated securities;

    

    provided,
      however,
      that no
      instrument described hereunder shall evidence either the right to receive
      (a) only interest with respect to the obligations underlying such
      instrument or (b) both principal and interest payments derived from
      obligations underlying such instrument and the interest and principal payments
      with respect to such instrument provide a yield to maturity at par greater
      than
      120.00% of the yield to maturity at par of the underlying
      obligations.

    

    Permitted
      Transferee:
      Any
      Person other than (i) the United States, any State or political subdivision
      thereof, or any agency or instrumentality of any of the foregoing, (ii) a
      foreign government, international organization or any agency or instrumentality
      of either of the foregoing, (iii) an organization (except certain farmers’
cooperatives described in Section 521 of the Code) 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) on any excess inclusions
      (as
      defined in Section 860E(c)(1) of the Code) with respect to any Residual
      Certificate, (iv) rural electric and telephone cooperatives described in
      Section 1381(a)(2)(C) of the Code, (v) a Person that is a Disqualified
      Non-U.S. Person or a U.S. Person with respect to whom income from a Residual
      Certificate is attributable to a foreign permanent establishment or fixed base,
      within the meaning of an applicable income tax treaty, of such Person or any
      other U.S. Person, (vi) an “electing large partnership” within the meaning
      of Section 775 of the Code and (vii) any other Person so designated by
      the Depositor based upon an Opinion of Counsel that the Transfer of an Ownership
      Interest in a Residual Certificate to such Person may cause any REMIC formed
      hereby to fail to qualify as a REMIC at any time that the Certificates are
      outstanding. The terms “United States”, “State” and “international organization”
shall have the meanings set forth in Section 7701 of the Code or successor
      provisions. A corporation will not be treated as an instrumentality of the
      United States or of any State or political subdivision thereof for these
      purposes if all of its activities are subject to tax and, with the exception
      of
      Freddie Mac, a majority of its board of directors is not selected by such
      government unit.

    

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

    

    Physical
      Certificates:
      As
      specified in the Preliminary Statement.

    
      
        
        

      

      
        -37-

        
          

        

      

      
        
        

      

    

    

    Pool
      Stated Principal Balance:
      As to
      any Distribution Date, the aggregate of the Stated Principal Balances of the
      Mortgage Loans for such Distribution Date that were Outstanding Mortgage Loans
      on the Due Date in the related Due Period.

    

    Prepayment
      Charge:
      Any
      prepayment premium, penalty or charge collected by the Servicer with respect
      to
      a Mortgage Loan from a Mortgagor in connection with any Principal Prepayment
      pursuant to the terms of the related Mortgage Note.

    

    Prepayment
      Interest Excess:
      With
      respect to any Distribution Date, any interest collected by the Servicer with
      respect to any Mortgage Loan as to which a Principal Prepayment occurs from
      the
      1st day of the month through the 15th day of the month in which such
      Distribution Date occurs and that represents interest that accrues from the
      1st
      day of such month to the date of such Principal Prepayment.

    

    Prepayment
      Interest Shortfall:
      With
      respect to any Distribution Date, the sum of, for each Mortgage Loan that was,
      during the portion of the related Prepayment Period from the first day of such
      Prepayment Period through the last day of the month preceding the month in
      which
      such Distribution Date occurs, the subject of a Principal Prepayment which
      is
      not accompanied by an amount equal to one month of interest that would have
      been
      due on such Mortgage Loan on the Due Date that occurs during such Prepayment
      Period and which was applied by the Servicer to reduce the outstanding principal
      balance of such Mortgage Loan on a date preceding such Due Date, an amount
      equal
      to the product of (a) the Mortgage Rate net of the Servicing Fee Rate for
      such Mortgage Loan, (b) the amount of the Principal Prepayment for such
      Mortgage Loan, (c) 1/360 and (d) the number of days commencing on the
      date on which such Principal Prepayment was applied and ending on the last
      day
      of the calendar month in which the related Prepayment Period
      begins.

    

    Prepayment
      Period:
      With
      respect to any Distribution Date and any Principal Prepayments, the period
      commencing on the 16th day of the month preceding the month in which such
      Distribution Date occurs (or in the case of the first Distribution Date,
      commencing on the Cut-off Date) and ending on the 15th day of the month in
      which
      that Distribution Date occurs.

    

    Primary
      Mortgage Insurance Policy:
      Any
      mortgage guaranty insurance, if any, on an individual Mortgage Loan as evidenced
      by a policy or certificate, whether such policy is obtained by the originator,
      the lender or the borrower.

    

    Principal
      Payment Amount:
      For any
      Distribution Date, the sum of (i) the Basic Principal Payment Amount for
      such Distribution Date and (ii) the Extra Principal Payment Amount for such
      Distribution Date.

    

    Principal
      Prepayment:
      Any
      full or partial payment or other recovery of principal on a Mortgage Loan
      (including upon liquidation of a Mortgage Loan) that is received in advance
      of
      its scheduled Due Date, excluding any Prepayment Charge thereon, and that 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.
      

    
      
        
        

      

      
        -38-

        
          

        

      

      
        
        

      

    

    

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

    

    Principal
      Remittance Amount:
      With
      respect to any Distribution Date, the amount equal to the sum of the following
      amounts (without duplication) with respect to the related Due Period:
      (i) each scheduled payment of principal on a Mortgage Loan due during such
      Due Period and received by the Servicer on or prior to the related Determination
      Date or advanced by the Servicer for the related Remittance Date, (ii) all
      Principal Prepayments received during the related Prepayment Period;
      (iii) all net Liquidation Proceeds, Condemnation Proceeds and Insurance
      Proceeds on the Mortgage Loans allocable to principal, and all Subsequent
      Recoveries, actually collected by the Servicer during the related Prepayment
      Period; (iv) the portion of the Repurchase Price allocable to principal
      with respect to each Mortgage Loan repurchased by the Originator or the Sponsor,
      as the case may be, that was repurchased on or prior to the related
      Determination Date; (v) all Substitution Adjustment Amounts allocable to
      principal with respect to the substitutions of Mortgage Loans that occur on
      or
      prior to the related Determination Date; and (vi) the allocable portion of
      the proceeds received with respect to the termination of the Trust Fund pursuant
      to clause (a) of Section 11.01 (to the extent such proceeds
      relate to principal).

    

    Private
      Certificates:
      As
      specified in the Preliminary Statement.

    

    Private
      Placement Memorandum:
      The
      Private Placement Memorandum, dated January 29, 2007 relating to the offering
      of
      the Class M-10 Certificates.

    

    Prospectus:
      The
      Prospectus, dated December 27, 2006, as supplemented by the Prospectus
      Supplement.

    

    Prospectus
      Supplement:
      The
      Prospectus Supplement, dated January
      29, 2007
      relating
      to the Offered Certificates.

    

    PTCE:
      As
      defined in Section 5.02(b).

    

    Purchase
      Agreement:
      The
      Mortgage Loan Purchase Agreement, dated as of January 1, 2007, between the
      Depositor and the Sponsor.

    

    Rating
      Agency:
      Each of
      the Rating Agencies specified in the Preliminary Statement. If 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 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. For purposes of
      Section 12.05, the addresses for notices to each Rating Agency shall be the
      address specified therefor in the definition corresponding to the name of such
      Rating Agency, or such other address as either such Rating Agency may hereafter
      furnish to the Depositor and the Securities Administrator.

    

    Realized
      Losses:
      With
      respect to any date of determination and any Liquidated Mortgage Loan, the
      amount, if any, by which (a) the unpaid principal balance of such
      Liquidated Mortgage Loan together with accrued and unpaid interest thereon
      exceeds (b) the Liquidation Proceeds with respect thereto net of the
      expenses incurred by the Servicer in connection with the liquidation of such
      Liquidated Mortgage Loan and net of the amount of unreimbursed Servicing
      Advances with respect to such Liquidated Mortgage Loan.

    
      
        
        

      

      
        -39-

        
          

        

      

      
        
        

      

    

    

    Record
      Date:
      With
      respect to any Distribution Date and any Certificate other than Certificate
      issued in definitive form, the close of business on the Business Day immediately
      preceding such Distribution Date; provided,
      however,
      that,
      for any Certificate issued in definitive form, the Record Date shall be the
      close of business on the last Business Day of the month preceding the month
      in
      which such applicable Distribution Date occurs (or, in the case of the first
      Distribution Date, the Closing Date).

    

    Regulation
      AB:
      Subpart
      229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§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.

    

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

    

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

    

    Regular
      Certificates:
      As
      specified in the Preliminary Statement.

    

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

    

    Relief
      Act Interest Shortfall:
      With
      respect to any Distribution Date and any Mortgage Loan, any reduction in the
      amount of interest collectible on such Mortgage Loan for the most recently
      ended
      Due Period as a result of the application of the Servicemembers Civil Relief
      Act
      or any applicable similar state statutes.

    

    REMIC:
      Each
      pool of assets in the Trust Fund designated as a REMIC pursuant to the
      Preliminary Statement.

    

    REMIC
      1:
      As
      described in the Preliminary Statement.

    

    REMIC
      2:
      As
      described in the Preliminary Statement.

    
      
        
        

      

      
        -40-

        
          

        

      

      
        
        

      

    

    

    REMIC
      2 Net Funds Cap:
      For any
      Distribution Date (and the related Interest Accrual Period) and any Class of
      LIBOR Certificates, an amount equal to (i) the weighted average of the interest
      rates on the Lower Tier Interests in REMIC 2 (other than any interest-only
      regular interest), weighted in proportion to their Class Certificate Balances
      as
      of the beginning of the related Interest Accrual Period, multiplied by (ii)
      the
      quotient of (a) 30, divided by (b) the actual number of days in the Interest
      Accrual Period.

    

    REMIC
      3:
      As
      described in the Preliminary Statement.

    

    REMIC
      Provisions:
      Provisions of the federal income tax law relating to real estate mortgage
      investment conduits, which appear at Sections 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:
      With
      respect to any Distribution Date, the 20th
      day of
      the month in which such Distribution Date occurs, or, if the 20th
      is not a
      Business Day, the immediately preceding Business Day.

    

    REO
      Disposition:
      The
      final sale by the Servicer of any REO Property.

    

    REO
      Imputed Interest:
      As to
      any REO Property, for any period, an amount equivalent to interest (at the
      Mortgage Rate net of the applicable Servicing Fee Rate that would have been
      applicable to the related Mortgage Loan had it been outstanding) on the unpaid
      principal balance of the Mortgage Loan as of the date of acquisition thereof
      (as
      such balance is reduced pursuant to Section 3.17 by any income from the REO
      Property treated as a recovery of principal).

    

    REO
      Mortgage Loan:
      A
      Mortgage Loan where title to the related Mortgaged Property has been obtained
      by
      the Servicer in the name of the Trustee on behalf of the
      Certificateholders.

    

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

    

    Reportable
      Event:
      As
      defined in Section 8.12(a)(iii).

    

    Reporting
      Servicer:
      As
      defined in Section 8.12(a)(ii).

    

    Repurchase
      Price:
      With
      respect to any Mortgage Loan, an amount equal to the sum of (i) the unpaid
      principal balance of such Mortgage Loan as of the date of repurchase,
      (ii) interest on such unpaid principal balance of such Mortgage Loan at the
      Mortgage Rate from the last date through which interest has been paid to the
      date of repurchase, (iii) all unreimbursed Servicing Advances, (iv) the
      amount of any costs and damages incurred by the Trust Fund as a result of any
      violation of any applicable federal, state or local predatory- or
      abusive-lending law arising from or in connection with the origination of such
      Mortgage Loan and (v) all expenses incurred by the Master Servicer, the
      Securities Administrator, the Servicer or Trustee arising out of the Master
      Servicer’s, the Servicer’s or Trustee’s enforcement of the Originator’s or
      Sponsor’s repurchase obligation hereunder. 

    
      
        
        

      

      
        -41-

        
          

        

      

      
        
        

      

    

    

    Request
      for Release:
      The
      Request for Release submitted by the Servicer to the Trustee, substantially
      in
      the form of Exhibit J.

    

    Residual
      Certificates:
      As
      specified in the Preliminary Statement.

    

    Responsible
      Officer:
      When
      used with respect to the Trustee, the Securities Administrator or the Master
      Servicer, any vice president, any assistant vice president, any assistant
      secretary, any assistant treasurer, any associate, or any other officer of
      the
      Trustee, the Securities Administrator or the Master Servicer customarily
      performing functions similar to those performed by any of the above designated
      officers who at such time shall be officers to whom, with respect to a
      particular matter, such matter is referred because of such officer’s knowledge
      of and familiarity with the particular subject and who, in each case, shall
      have
      direct responsibility for the administration of this Agreement.

    

    Rolling
      Three Month Delinquency Rate:
      With
      respect to any Distribution Date, the average of the Delinquency Rates for
      each
      of the three (or one or two, in the case of the first and second Distribution
      Dates) immediately preceding calendar months.

    

    Rule 144A
      Investment Letter:
      As
      defined in Section 5.02(b).

    

    Sarbanes-Oxley
      Act:
      The
      Sarbanes-Oxley Act of 2002 and the rules and regulations of the Commission
      promulgated thereunder (including any interpretations thereof by the
      Commission’s staff).

    

    Sarbanes-Oxley
      Certification:
      A
      written certification signed by an officer of the Master Servicer that complies
      with (i) the Sarbanes-Oxley Act, and (ii) Exchange Act Rules 13a-14(d) and
      15d-14(d), as in effect from time to time; provided that if, after the Closing
      Date (a) the Sarbanes-Oxley Act is amended, (b) the Rules referred to in clause
      (ii) are modified or superseded by any subsequent statement, rule or regulation
      of the Commission or any statement of a division thereof, or (c) any future
      releases, rules and regulations are published by the Commission from time to
      time pursuant to the Sarbanes-Oxley Act, which in any such case affects the
      form
      or substance of the required certification and results in the required
      certification being, in the reasonable judgment of the Master Servicer,
      materially more onerous that then form of the required certification as of
      the
      Closing Date, the Sarbanes-Oxley Certification shall be as agreed to by the
      Master Servicer and the Depositor following a negotiation in good faith to
      determine how to comply with any such requirements.

    

    Scheduled
      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 affects the amount of the monthly payment due
      on
      such Mortgage Loan.

    

    Securities
      Act:
      The
      Securities Act of 1933, as amended and the rules and regulations
      thereunder.

    
      
        
        

      

      
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    Securities
      Administrator:
      Citibank, and any successors in interest, and if a successor securities
      administrator is appointed hereunder, such successor. 

    

    Securities
      Administrator Float Period:
      With
      respect to the Distribution Date and the related amounts in the Distribution
      Account, the period commencing on the Remittance Date immediately preceding
      such
      Distribution Date and ending on such Distribution Date. 

    

    Senior
      Interest Payment Amount:
      With
      respect to any Distribution Date and any Class of Class A
      Certificates, the sum of the Interest Payment Amount and the Interest Carry
      Forward Amount, if any, for that Distribution Date for that Class.

    

    Servicer:
      Option
      One, and its successors in interest, and if a successor servicer is appointed
      hereunder, such successor.

     

    Service(s)(ing):
      In
      accordance with Regulation AB, the act of servicing and administering the
      Mortgage Loans or any other assets of the Trust Fund by an entity that meets
      the
      definition of “servicer’ set forth in Item 1101 of Regulation AB and is subject
      to the disclosure requirements set forth in Item 1108 of Regulation AB. For
      clarification purposes, any uncapitalized occurrence of this term in this
      Agreement shall have the meaning commonly understood by participants in the
      residential mortgage-backed securitization market.

    

    Servicing
      Advances:
      The
      reasonable “out-of-pocket” costs and expenses (including legal fees
      and
      expenses)
      incurred by the Servicer in the performance of its servicing obligations in
      connection with a default, delinquency or other unanticipated event, including,
      but not limited to, the cost of (i) the maintenance, preservation,
      restoration, inspection and protection of a Mortgaged Property, (ii) any
      enforcement or judicial proceedings, including foreclosures and litigation,
      in
      respect of a particular Mortgage Loan, (iii) the management (including
      reasonable fees in connection therewith) and liquidation of any REO Property
      and
      (iv) the performance of its obligations under Sections 3.01, 3.09,
      3.13 and 3.15. The Servicing Advances shall also include any reasonable
“out-of-pocket” costs and expenses (including legal fees and expenses) incurred
      by the Servicer in connection with executing and recording instruments of
      satisfaction, deeds of reconveyance or Assignments of Mortgage in connection
      with any satisfaction or foreclosure in respect of any Mortgage Loan to the
      extent not recovered from the Mortgagor or otherwise payable under this
      Agreement and obtaining or correcting any legal documentation required to be
      included in the Mortgage File and necessary for the Servicer to perform its
      obligations under this Agreement. The Servicer shall not be required to make
      any
      Nonrecoverable Servicing Advances.

    

    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 Mortgage Loan and for any calendar month, an amount equal to
      one
      month’s interest (or in the event of any payment of interest which accompanies a
      Principal Prepayment made by the Mortgagor during such calendar month, interest
      for the number of days covered by such payment of interest) at the Servicing
      Fee
      Rate on the applicable Stated Principal Balance of such Mortgage Loan as of
      the
      first day of such calendar month. Such fee shall be payable monthly, and shall
      be prorated for any portion of a month during which the Mortgage Loan is
      serviced by the Servicer under this Agreement. The Servicing Fee is payable
      solely from the interest portion (including recoveries with respect to interest
      from Liquidation Proceeds, Subsequent Recoveries, Insurance Proceeds,
      Condemnation Proceeds and proceeds received with respect to REO Properties)
      of such Scheduled Payment collected by the Servicer, or as otherwise provided
      under Section 3.11.

    
      
        
        

      

      
        -43-

        
          

        

      

      
        
        

      

    

    

    Servicing
      Fee Rate:
      With
      respect to each Mortgage Loan, 0.300% per annum with respect to the first ten
      Distribution Dates; 0.400% per annum with respect to the 11th through the 30th
      Distribution Dates; and 0.650% per annum with respect to the 31st Distribution
      Date and thereafter.

    

    Servicing
      File:
      With
      respect to each Mortgage Loan, the file retained by the Servicer consisting
      of
      originals or copies of all documents in the Mortgage File which are not
      delivered to the Custodian on behalf of the Trustee in the Custodial File and
      copies of the Mortgage Loan Documents set forth in Exhibit K
      hereto.

    

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

    

    Servicing
      Officer:
      Any
      officer of the Servicer involved in, or responsible for, the administration
      and
      servicing of the Mortgage Loans.

    

    Similar
      Law:
      As
      defined in Section 5.02(b).

    

    60+
      Day Delinquent Mortgage Loan:
      Each
      Mortgage Loan with respect to which any portion of a Scheduled Payment is,
      as of
      the last day of the prior Due Period, two months or more past due (including
      any
      such Mortgage Loan in foreclosure, any such Mortgage Loan related to REO
      Property and any such Mortgage Loan where the related Mortgagor has filed for
      bankruptcy), without giving effect to any grace period.

    

    Sponsor:
      HSBC
      Bank USA, National Association, a national banking association, and its
      successors in interest. 

    

    Standard &
      Poor’s:
      Standard & Poor’s Ratings Services, a division of The McGraw-Hill
      Companies, Inc. If Standard & Poor’s is designated as a Rating Agency
      in the Preliminary Statement, for purposes of Section 12.05 the address for
      notices to Standard & Poor’s shall be Standard & Poor’s, 55
      Water Street, New York, New York 10041, Attention: Residential Mortgage
      Surveillance Group - HASCO (HSI Asset Securitization Corporation Trust,
      Series 2007-OPT1), or such other address as Standard & Poor’s may
      hereafter furnish to the Depositor and the Securities
      Administrator.

    

    Standard &
      Poor’s Glossary:
      The
      Standard & Poor’s LEVELS® Glossary, as may be in effect from time to
      time.

    

    Startup
      Day:
      The
      Closing Date.

    
      
        
        

      

      
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    Stated
      Principal Balance:
      As to
      each Mortgage Loan and as of any date of determination, (i) the principal
      balance of the Mortgage Loan at the Cut-off Date after giving effect to payments
      of principal due on or before such date (whether or not received), minus
      (ii) all amounts previously remitted to the Securities Administrator with
      respect to the related Mortgage Loan representing payments or recoveries of
      principal including advances in respect of scheduled payments of principal.
      For
      purposes of any Distribution Date, the Stated Principal Balance of any Mortgage
      Loan will give effect to any scheduled payments of principal received by the
      Servicer on or prior to the related Determination Date or advanced by the
      Servicer for the related Remittance Date and any unscheduled principal payments
      and other unscheduled principal collections received during the related
      Prepayment Period, and the Stated Principal Balance of any Mortgage Loan that
      has prepaid in full or has become a Liquidated Mortgage Loan during the related
      Prepayment Period shall be zero.

    

    Stepdown
      Date:
      The
      earlier to occur of (i) the first Distribution Date following the Distribution
      Date on which the aggregate Class Certificate Balances of the Class A
      Certificates have been reduced to zero and (ii) the later to occur of (a) the
      Distribution Date in February 2010 and (b) the first Distribution Date on which
      the Credit Enhancement Percentage for the Class A Certificates (calculated
      for
      this purpose only after taking into account payments of principal applied to
      reduce the Stated Principal Balance of the Mortgage Loans for that Distribution
      Date but prior to any applications of Principal Payment Amount to the
      Certificates on that Distribution Date) is greater than or equal to
      42.00%.

    

    Subcontractor:
      Any
      vendor, subcontractor or other Person that is not responsible for the overall
      servicing of the 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 Servicer (or a Subservicer of the Servicer),
      the Master Servicer, the Custodian or the Securities Administrator.

    

    Subsequent
      Recovery:
      With
      respect to any Mortgage Loan or related Mortgaged Property that became a
      Liquidated Mortgage Loan or was otherwise disposed of, all amounts received
      in
      respect of such Liquidated Mortgage Loan after an Applied Realized Loss Amount
      related to such Mortgage Loan or Mortgaged Property is allocated to reduce
      the
      Class Certificate Balance of any Class of Class M Certificates.
      Any Subsequent Recovery that is received during a Prepayment Period will be
      included as part of the Principal Remittance Amount for the related Distribution
      Date.

    

    Subservicer:
      Any
      Person that services Mortgage Loans on behalf of the Servicer, and is
      responsible for the performance (whether directly or through subservicers or
      Subcontractors) of a substantial portion of the material servicing functions
      required to be performed under this Agreement or any subservicing agreement
      that
      are identified in Item 1122(d) of Regulation AB.

    

    Subservicing
      Account:
      As
      defined in Section 3.08.

    

    Subservicing
      Agreement:
      As
      defined in Section 3.02(a).

    
      
        
        

      

      
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    Substitute
      Mortgage Loan:
      A
      Mortgage Loan substituted by the Originator or the Sponsor for a Deleted
      Mortgage Loan which must, on the date of such substitution, as confirmed in
      a
      Request for Release, substantially in the form of Exhibit J,
      (i) have a Stated Principal Balance, after deduction of all Scheduled
      Payments due in the month of substitution, not in excess of the Stated Principal
      Balance of the Deleted Mortgage Loan; (ii) be accruing interest at a rate
      not lower than and not more than 1.00% higher than that of the Deleted Mortgage
      Loan; (iii) have a remaining term to maturity not greater than (and not
      more than one year less than) that of the Deleted Mortgage Loan; (iv) be of
      the same type as the Deleted Mortgage Loan; and (v) comply with each
      representation and warranty set forth in Section 2.03.

    

    Substitution
      Adjustment Amount:  As
      defined in Section 2.03.

    

    Supplemental
      Interest Trust:
      The
      corpus of a trust created pursuant to Section 4.06 of this Agreement and
      designated as the “Supplemental Interest Trust,” consisting of the Swap
      Agreement, the Supplemental Interest Trust Account, the Swap Account, the Excess
      Reserve Fund Account, the Cap Agreement, the Cap Account, the Collateral
      Account, the right to receive the Class X Distributable Amount as provided
      in
      Section 4.02(a)(iii)(H), the Class LT3-I Interest in REMIC 3 and the right
      to
      receive Class I Shortfalls. 

    

    Supplemental
      Interest Trust Account:
      The
      Account created pursuant to Section 4.06(a).

    

    Swap
      Account:
      The
      sub-account of the Supplemental Interest Trust Account created pursuant to
      Section 4.06(a).

    

    Swap
      Agreement:
      The
      interest rate swap agreement entered into by the Supplemental Interest Trust
      and
      the Swap Counterparty, dated January 30, 2007, which agreement provides for,
      among other things, a Net Swap Payment to be paid pursuant to the conditions
      provided therein, commencing with the Distribution Date in March 2007 and ending
      on the Distribution Date in May 2010, together with any schedules, confirmations
      or other agreements relating thereto, attached hereto as Exhibit O.

    

    Swap
      Amount:
      With
      respect to each Distribution Date and the related Swap Payment Date, the sum
      of
      any Net Swap Payment and any Swap Termination Payment deposited in the Swap
      Account.

    

    Swap
      Counterparty:
      The
      counterparty to the Supplemental Interest Trust under the Swap Agreement, and
      any successor in interest or assigns. Initially, the Swap Counterparty shall
      be
      Wachovia Bank, National Association.

    

    Swap
      Counterparty Trigger Event:
      A Swap
      Counterparty Trigger Event shall have occurred if any of a Swap Default with
      respect to which the Swap Counterparty is a Defaulting Party, a Termination
      Event (other than a “Tax Event” or “Illegality” as such terms are defined in the
      Master Agreement) with respect to which the Swap Counterparty is the sole
      Affected Party or an Additional Termination Event with respect to which the
      Swap
      Counterparty is the sole Affected Party has occurred.

    
      
        
        

      

      
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    Swap
      Default:
      Any of
      the circumstances constituting an “Event of Default” under the Swap
      Agreement.

    

    Swap
      LIBOR:
      With
      respect to any Distribution Date (and the Accrual Period relating to such
      Distribution Date), the product of (i) the Floating Rate Option (as defined
      in
      the Swap Agreement) for the related Swap Payment Date, (ii) two, and (iii)
      the
      quotient of (a) the actual number of days in the Accrual Period for the LIBOR
      Certificates and (b) 30, as calculated by the Swap Counterparty and furnished
      to
      the Securities Administrator.

    

    Swap
      Payment Date:
      For so
      long as the Swap Agreement is in effect or any amounts remain unpaid thereunder,
      the Business Day immediately preceding each Distribution Date.

    

    Swap
      Replacement Receipts:
      As
      defined in Section 4.08(a)(i).

    

    Swap
      Replacement Receipts Account:
      As
      defined in Section 4.08(a)(i).

    

    Swap
      Termination Payment:
      Upon
      the designation of an “Early Termination Date” as defined in the Swap Agreement,
      the payment required to be made by the Supplemental Interest Trust to the Swap
      Counterparty, or by the Swap Counterparty to the Supplemental Interest Trust,
      as
      applicable, pursuant to the terms of the Swap Agreement, and any unpaid amounts
      due on previous Distribution Dates and accrued interest thereon as provided
      in
      the Swap Agreement, as calculated by the Swap Counterparty and furnished to
      the
      Securities Administrator.

    

    Swap
      Termination Receipts:
      As
      defined in Section 4.08(a)(i).

    

    Swap
      Termination Receipts Account:
      As
      defined in Section 4.08(a)(i).

    

    Tax
      Matters Person:
      The Holder of the Class R Certificates designated as “tax matters person” of
      each REMIC created hereunder in the manner provided under Treasury Regulations
      Section 1.860F-4(d) and Treasury Regulations Section
      301.6231(a)(7)-1.

    

    Telerate
      Page 3750:
      The
      display page currently so designated on the Bridge Telerate Service (or such
      other page as may replace that page on that service for displaying
      comparable rates or prices).

    

    Termination
      Event:
      The
      occurrence of a termination event under the termination provision of the Cap
      Agreement or Swap Agreement, as applicable.

    

    Termination
      Price:
      As
      defined in Section 11.01.

    

    Total
      Monthly Excess Spread:
      As to
      any Distribution Date, an amount equal to the excess, if any, of (i) the
      interest on the Mortgage Loans (other than Prepayment Interest Excesses)
      received by the Servicer on or prior to the related Determination Date or
      advanced by the Servicer for the related Remittance Date (net of Expense Fees)
      over (ii) the sum of the amounts payable to the Certificates pursuant to
      Section 4.02(a)(i)(A) through (C) on such Distribution Date.

    
      
        
        

      

      
        -47-

        
          

        

      

      
        
        

      

    

    

    Transfer:
      Any
      direct or indirect transfer or sale of any Ownership Interest in a Residual
      Certificate.

    

    Transfer
      Affidavit:
      As
      defined in Section 5.02(c).

    

    Transferor
      Certificate:
      As
      defined in Section 5.02(b).

    

    Trigger
      Event:
      Either
      a Cumulative Loss Trigger Event or a Delinquency Trigger Event.

    

    Trust:
      The
      express trust created hereunder in Section 2.01(c).

    

    Trust
      Fund:
      The
      corpus of the trust created hereunder consisting of (i) the Mortgage Loans
      and all interest and principal with respect thereto received on or after the
      related Cut-off Date, other than such amounts which were due on the Mortgage
      Loans on or prior to the related Cut-off Date; (ii) the Collection Account,
      the Master Servicing Account, the Distribution Account, the Cap Termination
      Receipts Account, the Cap Replacement Receipts Account the Swap Termination
      Receipts Account, the Swap Replacement Receipts Account and
      all
      amounts deposited therein pursuant to the applicable provisions of this
      Agreement; (iii) property that secured a Mortgage Loan and has been
      acquired by foreclosure, deed-in-lieu of foreclosure or otherwise; (iv) the
      Depositor’s rights under the Purchase Agreement; (v) the Insurance
      Policies; and (vi) all proceeds of the conversion, voluntary or
      involuntary, of any of the foregoing.

    

    Trustee:
      Deutsche Bank National Trust Company, a national banking association, and its
      successors in interest and, if a successor trustee is appointed hereunder,
      such
      successor.

    

    Underwriters’
      Exemption:
      Any
      exemption listed under footnote 1 of, and amended by, Prohibited Transaction
      Exemption 96-84, 61 Fed. Reg. 58234 (1996), as amended by PTE 97-34,
      62 Fed. Reg. 39021 (1997), PTE 2000-58, 65 Fed. Reg. 67765 (2000) and
      PTE 2002-41, 67 Fed. Reg. 54487 (2002), or any successor
      exemption.

    

    Unpaid
      Realized Loss Amount:
      With
      respect to any Class of Class M Certificates and as to any
      Distribution Date, is the excess of (i) Applied Realized Loss Amounts with
      respect to such Class over (ii) the sum of (a) all distributions
      in reduction of such Applied Realized Loss Amounts on all previous Distribution
      Dates, and (b) the amount by which the Class Certificate Balance of
      such Class has been increased due to the distribution of any Subsequent
      Recoveries on all previous Distribution Dates. Any amounts distributed to a
      Class of Class M Certificates in respect of any Unpaid Realized Loss
      Amount will not be applied to reduce the Class Certificate Balance of such
      Class.

    

    Upper
      Tier REMIC:
      As
      described in the Preliminary Statement.

    

    Upper
      Tier REMIC Regular Interest:
      As
      described in the Preliminary Statement.

    

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

    
      
        
        

      

      
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    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, 1.00% of all Voting Rights
      shall be allocated to each of the Class X, Class P and Class R
      Certificates, if any (such Voting Rights to be allocated among the holders
      of
      Certificates of each such Class in accordance with their respective
      Percentage Interests) and the remaining Voting Rights shall be allocated
      among Holders of the remaining Classes of Certificates in proportion to the
      Certificate Balances of their respective Certificates on such date.

    

    Wells
      Fargo:
      Wells
      Fargo Bank, N.A., a national banking association, and its successors in
      interest.

    

    ARTICLE
      II

    

    CONVEYANCE
      OF MORTGAGE LOANS;

    REPRESENTATIONS
      AND WARRANTIES

    

    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
      for the benefit of the Certificateholders, without recourse, all the right,
      title and interest of the Depositor in and to the Trust Fund including all
      interest and principal received on or with respect to the Mortgage Loans on
      or
      after the Cut-off Date (other than Scheduled Payments due on the Mortgage Loans
      on or before the Cut-off Date). 

    

    Concurrently
      with the execution of this Agreement, the Derivative Agreements shall be
      delivered to the Securities Administrator. In connection therewith, the
      Depositor hereby directs the Securities Administrator (solely in its capacity
      as
      trustee of the Supplemental Interest Trust) and the Securities Administrator
      is
      hereby authorized to execute and deliver each of the Derivative Agreements
      on
      behalf of the Supplemental Interest Trust, for the benefit of
      Certificateholders. The Depositor, the Sponsor, the Master Servicer, the
      Servicer, the Originator, the Credit Risk Manager and the Certificateholders
      (by
      their acceptance of such Certificates) acknowledge and agree that the Securities
      Administrator is executing and delivering the Derivative Agreements solely
      in
      its capacity as trustee of the Supplemental Interest Trust and not in its
      individual capacity. The Securities Administrator shall have no duty or
      responsibility to enter into any other interest rate swap agreement upon the
      expiration or termination of the Swap Agreement or interest rate cap agreement
      upon the termination of the Cap Agreement unless so directed by the
      Depositor.

    
      
        
        

      

      
        -49-

        
          

        

      

      
        
        

      

    

    

    Concurrently
      with the execution and delivery of this Agreement, the Depositor does hereby
      assign to the Trustee all of its rights and interest under the Purchase
      Agreement, including the right to enforce the Sponsor’s obligation to repurchase
      or substitute defective Mortgage Loans under Section 4 of the Purchase
      Agreement. The Trustee hereby accepts such assignment, and as set forth herein
      in Section 2.03(k), shall be entitled to exercise all the rights of the
      Depositor under the Purchase Agreement as if, for such purpose, it were the
      Depositor.

    

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

    

    (i) the
      original Mortgage Note bearing all intervening endorsements necessary to show
      a
      complete chain of endorsements from the original payee, endorsed in blank,
“Pay
      to the order of _____________, without recourse”, and, if previously endorsed,
      signed in the name of the last endorsee by a duly qualified officer of the
      last
      endorsee;

    

    (ii) the
      original Assignment of Mortgage for each Mortgage Loan, in form and substance
      acceptable for recording. The Mortgage shall be assigned, with assignee’s name
      left blank;

    

    (iii) the
      original of each guarantee executed in connection with the Mortgage Note, if
      any;

    

    (iv) the
      original recorded Mortgage, with evidence of recording thereon. If in connection
      with any Mortgage Loan, the original Mortgage cannot be delivered with evidence
      of recording thereon on or prior to the Closing Date because of a delay caused
      by the public recording office where such Mortgage has been delivered for
      recordation or because such Mortgage has been lost or because such public
      recording office retains the original recorded Mortgage, the Originator shall
      deliver or cause to be delivered to the Custodian, (A) in the case of a
      delay caused by the public recording office, a copy of such Mortgage certified
      by the Originator, escrow agent, title insurer or closing attorney to be a
      true
      and complete copy of the original recorded Mortgage and (B) in the case
      where a public recording office retains the original recorded Mortgage or in
      the
      case where a Mortgage is lost after recordation in a public recording office,
      a
      copy of such Mortgage certified by such public recording office to be a true
      and
      complete copy of the original recorded Mortgage;

    

    (v) originals
      or a certified copy of each modification agreement, if any;

    

    (vi) the
      originals of all intervening assignments of Mortgage with evidence of recording
      thereon evidencing a complete chain of ownership from the originator of the
      Mortgage Loan to the last assignee, or if any such intervening assignment of
      Mortgage has not been returned from the applicable public recording office
      or
      has been lost or if such public recording office retains the original recorded
      intervening assignments of Mortgage, a photocopy of such intervening assignment
      of Mortgage, together with (A) in the case of a delay caused by the public
      recording office, an officer’s certificate of the Originator, escrow agent,
      closing attorney or the title insurer insuring the Mortgage stating that such
      intervening assignment of Mortgage has been delivered to the appropriate public
      recording office for recordation and that such original recorded intervening
      assignment of Mortgage or a copy of such intervening assignment of Mortgage
      certified by the appropriate public recording office to be a true and complete
      copy of the original recorded intervening assignment of Mortgage will be
      promptly delivered to the Custodian upon receipt thereof by the party delivering
      the officer’s certificate or by the Originator; or (B) in the case of an
      intervening assignment of mortgage where a public recording office retains
      the
      original recorded intervening assignment of Mortgage or in the case where an
      intervening assignment of Mortgage is lost after recordation in a public
      recording office, a copy of such intervening assignment of Mortgage with
      recording information thereon certified by such public recording office to
      be a
      true and complete copy of the original recorded intervening assignment of
      Mortgage;

    
      
        
        

      

      
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    (vii) if
      the
      Mortgage Note, the Mortgage, any Assignment of Mortgage or any other related
      document has been signed by a Person on behalf of the Mortgagor, the copy of
      the
      power of attorney or other instrument that authorized and empowered such Person
      to sign;

    

    (viii) the
      original lender’s title insurance policy (or a marked title insurance
      commitment, in the event that an original lender’s title insurance policy has
      not yet been issued) in the form of an ALTA mortgage title insurance policy,
      containing all required endorsements and insuring the Trustee and its successors
      and assigns as to the first priority lien of the Mortgage in the original
      principal amount of the Mortgage Loan;

    

    (ix) if
      applicable, the original of any Primary Mortgage Insurance Policy or certificate
      or, an electronic certification, evidencing the existence of the Primary
      Mortgage Insurance Policy or certificate, if private mortgage guaranty insurance
      is required; and

    

    (x) original
      of any security agreement, chattel mortgage or equivalent document executed
      in
      connection with the Mortgage, if any.

    

    To
      the
      extent not previously delivered to the Sponsor pursuant to the Master MLPSA,
      the
      Originator shall promptly upon receipt from the respective recording office
      cause to be delivered to the Custodian the original recorded document described
      in clauses (iv) and (vi) above.

    

    From
      time
      to time, the Originator, the Depositor or the Servicer, as applicable, shall
      forward to the Custodian additional original documents, additional documents
      evidencing an assumption, modification, consolidation or extension of a Mortgage
      Loan, in accordance with the terms of this Agreement upon receipt of such
      documents. All such mortgage documents held by the Custodian as to each Mortgage
      Loan shall constitute the “Custodial
      File”.

    
      
        
        

      

      
        -51-

        
          

        

      

      
        
        

      

    

    

    To
      the
      extent not previously delivered to the Sponsor pursuant to the Master MLPSA,
      on
      or prior to the Closing Date, the Originator shall deliver to the Custodian
      Assignments of Mortgages, in blank, for each Mortgage Loan. No later than thirty
      (30) Business Days following the later of the Closing Date and the date of
      receipt by the Servicer of the complete recording information for a Mortgage,
      the Servicer shall promptly submit or cause to be submitted for recording,
      at
      the expense of the Originator and at no expense to the Trust Fund, the Trustee,
      the Servicer or the Depositor, in the appropriate public office for real
      property records, each Assignment of Mortgage referred to in
      Section 2.01(b)(ii). Notwithstanding the foregoing, however, for
      administrative convenience and facilitation of servicing and to reduce closing
      costs, the Assignments of Mortgage shall not be required to be completed and
      submitted for recording with respect to any Mortgage Loan if the Trustee
      and each Rating Agency have received an Opinion of Counsel from the Depositor,
      satisfactory in form and substance to the Trustee and each Rating Agency to
      the
      effect that the recordation of such Assignments of Mortgage in any specific
      jurisdiction is not necessary to protect the Trust Fund’s interest in the
      related Mortgage Note. If the Assignment of Mortgage is to be recorded, the
      Mortgage shall be assigned by the Originator, at the expense of the Originator,
      to “Deutsche Bank National Trust Company, as trustee under the Pooling and
      Servicing Agreement dated as of January 1, 2007, for HSI Asset Securitization
      Corporation Trust 2007-OPT1”. In the event that any such Assignment of Mortgage
      is lost or returned unrecorded because of a defect therein, the Originator
      shall
      promptly cause to be delivered a substitute Assignment of Mortgage to cure
      such
      defect and thereafter cause each such assignment to be duly recorded at no
      expense to the Trust Fund.

    

    In
      the
      event that such original or copy of any document submitted for recordation
      to
      the appropriate public recording office is not so delivered to the Custodian
      within 180 days (or such other time period as may be required by any Rating
      Agency) following the Closing Date, and in the event that the Originator does
      not cure such failure within 30 days of discovery or receipt of written
      notification of such failure from the Depositor, the related Mortgage Loan
      shall, upon the request of the Depositor, be repurchased by the Originator
      at
      the price and in the manner specified in Section 2.03. The foregoing
      repurchase obligation shall not apply in the event that the Originator cannot
      deliver such original or copy of any document submitted for recordation to
      the
      appropriate public recording office within the specified period due to a delay
      caused by the recording office in the applicable jurisdiction; provided,
      that
      the Originator shall instead deliver a recording receipt of such recording
      office or, if such recording receipt is not available, an officer’s certificate
      of an officer of the Originator, confirming that such document has been accepted
      for recording.

    

    Notwithstanding
      anything to the contrary contained in this Section 2.01, in those instances
      where the public recording office retains or loses the original Mortgage or
      assignment after it has been recorded, the obligations of the Originator shall
      be deemed to have been satisfied upon delivery by the Originator to the
      Custodian, prior to the Closing Date of a copy of such Mortgage or assignment,
      as the case may be, certified (such certification to be an original thereof)
      by
      the public recording office to be a true and complete copy of the recorded
      original thereof.

    

    (c) 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 (the
“Trust”)
      to be
      known, for convenience, as “HSI Asset Securitization Corporation Trust
      2007-OPT1” and Deutsche Bank National Trust Company is hereby appointed as
      Trustee and Citibank is appointed as Securities Administrator in accordance
      with
      the provisions of this Agreement. The parties hereto acknowledge and agree
      that
      it is the policy and intention of the Trust to acquire only Mortgage Loans
      meeting the requirements set forth in this Agreement, including without
      limitation, the representations and warranties set forth in the Schedules
      hereto.

    
      
        
        

      

      
        -52-

        
          

        

      

      
        
        

      

    

    

    (d) The
      Trust
      shall have the capacity, power and authority, and the Trustee on behalf of
      the
      Trust is hereby authorized, to accept the sale, transfer, assignment, set over
      and conveyance by the Depositor to the Trust of all the right, title and
      interest of the Depositor in and to the Trust Fund (including, without
      limitation, the Mortgage Loans) pursuant to Section 2.01(a). 

    

    Section
      2.02 Acceptance
      by the Custodian of the Mortgage Loans.
      The
      Custodian shall acknowledge, on the Closing Date, receipt by the Custodian
      of
      the documents identified in the Initial Certification in the form annexed hereto
      as Exhibit E (“Initial Certification”), and declares that it holds and will
      hold such documents and the other documents delivered to it pursuant to
      Section 2.01, and that it holds or will hold such other assets as are
      included in the Trust Fund, in trust for the exclusive use and benefit of all
      present and future Certificateholders. The Custodian shall maintain possession
      of the related Mortgage Notes in the States of Minnesota, California, and Utah
      unless otherwise permitted by the Rating Agencies.

    

    In
      connection with the Closing Date, the Custodian shall be required to deliver
      via
      facsimile (with original to follow the next Business Day) to the Depositor,
      the
      Securities Administrator and the Trustee, an Initial Certification prior to
      the
      Closing Date, or, as the Depositor agrees on the Closing Date, certifying
      receipt of a Mortgage Note and Assignment of Mortgage for each Mortgage Loan.
      The Custodian shall not be responsible to verify the validity, sufficiency
      or
      genuineness of any document in any Custodian File.

    

    Within
      90 days of the Closing Date, the Custodian shall ascertain that all
      documents identified in the Document Certification and Exception Report in
      the
      form attached hereto as Exhibit F are in its possession, and shall deliver
      to the Depositor, the Securities Administrator, the Trustee and the Servicer,
      a
      Document Certification and Exception Report, in the form annexed hereto as
      Exhibit F, to the effect that, as to each Mortgage Loan listed in the
      Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any
      Mortgage Loan specifically identified in such certification as an exception
      and
      not covered by such certification): (i) all documents identified in the
      Document Certification and Exception Report and required to be reviewed by
      it
      are in its possession; (ii) such documents have been reviewed by it and
      appear regular on their face and relate to such Mortgage Loan; (iii) based
      on its examination and only as to the foregoing documents, the information
      set
      forth in items (1), (2), (3), (15), (18) and (22) of the Data Tape
      Information respecting such Mortgage Loan is correct; and (iv) each
      Mortgage Note has been endorsed as provided in Section 2.01 of this
      Agreement. Neither the Trustee nor the Custodian shall be responsible to verify
      the validity, sufficiency or genuineness of any document in any Custodial
      File.

    

    The
      Custodian shall retain possession and custody of each Custodial File in
      accordance with and subject to the terms and conditions set forth herein. The
      Servicer shall promptly deliver to the Custodian, upon the execution or receipt
      thereof, the originals of such other documents or instruments constituting
      the
      Custodial File as come into the possession of the Servicer from time to
      time.

    
      
        
        

      

      
        -53-

        
          

        

      

      
        
        

      

    

    

    The
      Originator shall deliver to the Servicer copies of all trailing documents
      required to be included in the Custodial File at the same time the original
      or
      certified copies thereof are delivered to the Custodian, including but not
      limited to such documents as the title insurance policy and any other Mortgage
      Loan documents upon return from the public recording office. The documents
      shall
      be delivered by the Originator at the Originator’s expense to the
      Servicer.

    

    Section
      2.03 Representations,
      Warranties and Covenants of the Originator and the Servicer; Remedies for
      Breaches of Representations and Warranties with Respect to the Mortgage
      Loans.
      (a) Option One, in its capacity as Servicer makes the representations and
      warranties set forth in Schedule II hereto, to the Depositor, the Master
      Servicer, the Securities Administrator and the Trustee as of the Closing
      Date.

    

    (b) Option
      One, in its capacity as Originator, makes the representations and warranties
      set
      forth in Schedule III and Schedule IV hereto, to the Depositor, the Master
      Servicer, the Securities Administrator and the Trustee as of the date specified
      therein.

    

    (c) It
      is
      understood and agreed by the Servicer and the Originator that the
      representations and warranties set forth in this Section 2.03 shall survive
      the transfer of the Mortgage Loans by the Depositor to the Trustee on the
      Closing Date, and shall inure to the benefit of the Depositor, the Trustee
      and
      the Trust Fund notwithstanding any restrictive or qualified endorsement on
      any
      Mortgage Note or Assignment of Mortgage or the examination or failure to examine
      any Mortgage File. Upon discovery by the Originator, the Depositor, the
      Securities Administrator, the Trustee, the Master Servicer or the Servicer
      of a
      breach of any of the foregoing representations and warranties, the party
      discovering such breach shall give prompt written notice to the
      others.

    

    (d) Within
      30 days of the earlier of either discovery by or notice to the Originator
      that any Mortgage Loan does not conform to the requirements as determined in
      the
      Custodian’s review of the related Custodial File or within 60 days of the
      earlier of either discovery by or notice to the Originator of any breach of
      a
      representation or warranty referred to in Section 2.03(b) that materially
      and adversely affects the value of any Mortgage Loan or the interest of the
      Trustee or the Certificateholders therein, the Originator shall use its best
      efforts to cause to be remedied a material defect in a document constituting
      part of a Mortgage File or promptly to cure such breach in all material respects
      and, if such defect or breach cannot be remedied, the Originator shall, at
      the
      Depositor’s option as specified in writing and provided to the Originator and
      the Trustee, (i) if such 30- or 60-day period, as applicable, expires prior
      to the second anniversary of the Closing Date, remove such Mortgage Loan (a
      “Deleted
      Mortgage Loan”)
      from
      the Trust Fund and substitute in its place a Substitute Mortgage Loan, in the
      manner and subject to the conditions set forth in this Section 2.03; or
      (ii) repurchase such Mortgage Loan at the Repurchase Price; provided,
      however,
      that
      any such substitution pursuant to clause (i) above shall not be
      effected prior to the delivery to the Custodian of a Request for Release
      substantially in the form of Exhibit J, and the delivery of the Mortgage
      File to the Custodian for any such Substitute Mortgage Loan. Notwithstanding
      the
      foregoing, a breach (i) which causes a Mortgage Loan not to constitute a
“qualified mortgage” within the meaning of Section 860G(a)(3) of the Code
      or (ii) of any of the representations and warranties set forth in items number
       (45), (47), (55), (57), (58), (59), (60), (61), (62), (64), (65), (67),
      (68), (71), (80), (84), (85) and (87) of Schedule IV with respect to any Group
      I
      Mortgage Loan will be deemed automatically to materially and adversely affect
      the value of such Mortgage Loan and the interests of the Trustee and
      Certificateholders in such Mortgage Loan, thus requiring the repurchase or
      substitution of such Mortgage Loan by the Originator. In the event that a
      Responsible Officer of the Trustee receives notice of a breach by the Originator
      of any of the representations and warranties described in the immediately
      preceding sentence, the Trustee shall give notice of such breach to the
      Originator and request the Originator to substitute such Mortgage Loan or to
      repurchase such Mortgage Loan at the Repurchase Price within sixty
      (60) days of the receipt of such notice. The Originator shall repurchase
      each such Mortgage Loan within 60 days of the earlier of discovery or
      receipt of notice with respect to each such Mortgage Loan.

    
      
        
        

      

      
        -54-

        
          

        

      

      
        
        

      

    

    

    (e) With
      respect to any Substitute Mortgage Loan or Loans, the Originator shall deliver
      to the Custodian for the benefit of the Certificateholders the Mortgage Note,
      the Mortgage, the related assignment of the Mortgage, and such other documents
      and agreements as are required by Section 2.01, with the Mortgage Note
      endorsed and the Mortgage assigned as required by Section 2.01. No
      substitution is permitted to be made with respect to any Distribution Date
      after
      the end of the related Prepayment Period. Scheduled Payments due with respect
      to
      Substitute Mortgage Loans in the Due Period of substitution shall not be part
      of
      the Trust Fund and will be retained by the Originator on the next succeeding
      Distribution Date. For the Due Period of substitution, distributions to
      Certificateholders will include the Scheduled Payment due on any Deleted
      Mortgage Loan for such Due Period and thereafter the Originator shall be
      entitled to retain all amounts received in respect of such Deleted Mortgage
      Loan.

    

    (f) Upon
      removal of such Deleted Mortgage Loan and the substitution of the Substitute
      Mortgage Loan or Loans, the Substitute Mortgage Loan or Loans shall be subject
      to the terms of this Agreement in all respects, and the Originator shall be
      deemed to have made with respect to such Substitute Mortgage Loan or Loans,
      as
      of the date of substitution, the representations and warranties made pursuant
      to
      Section 2.03(b) with respect to such Mortgage Loan. Upon any such
      substitution and the deposit to the Collection Account of the amount required
      to
      be deposited therein in connection with such substitution as described in the
      following paragraph, the Custodian shall release the Mortgage File held for
      the
      benefit of the Certificateholders relating to such Deleted Mortgage Loan to
      the
      Originator and the Trustee, upon receipt of a Request for Release certifying
      that all amounts required to be deposited in accordance with this Section
      2.03(f) have been deposited in the Collection Account, shall execute and deliver
      at the Originator’s direction such instruments of transfer or assignment
      prepared by the Originator in each case without recourse, as shall be necessary
      to vest title in the Originator of the Trustee’s interest in any Deleted
      Mortgage Loan substituted for pursuant to this Section 2.03.

    

    (g) For
      any
      month in which the Originator substitutes one or more Substitute Mortgage Loans
      for one or more Deleted Mortgage Loans, the Servicer will determine the amount
      (if any) by which the aggregate unpaid principal balance of all such Substitute
      Mortgage Loans as of the date of substitution is less than the aggregate unpaid
      principal balance of all such Deleted Mortgage Loans. The amount of such
      shortage plus an amount equal to the aggregate of any unreimbursed Advances
      with
      respect to such Deleted Mortgage Loans (collectively, the “Substitution
      Adjustment Amount”)
      shall
      be remitted by the Originator to the Servicer for deposit into the Collection
      Account on or before the Remittance Date for the Distribution Date in the month
      succeeding the calendar month during which the related Mortgage Loan became
      required to be purchased or replaced hereunder.

    
      
        
        

      

      
        -55-

        
          

        

      

      
        
        

      

    

    

    (h) In
      addition to the repurchase or substitution obligations referred to in
      Section 2.03(d) above and Section 2.03(k) below, the Originator or the
      Sponsor, as applicable, shall indemnify the Depositor, any of its Affiliates,
      the Master Servicer, the Servicer, the Securities Administrator, the Trustee
      and
      the Trust and hold such parties harmless against any losses, damages, penalties,
      fines, forfeitures, reasonable and necessary legal fees and related costs,
      judgments and other costs and expenses (including, without limitation, any
      taxes
      payable by the Trust) resulting from any third party claim, demand, defense
      or
      assertion based on or grounded upon, or resulting from, a breach by the
      Originator or the Sponsor, as applicable, of any of its representations and
      warranties or obligations contained in this Agreement.

    

    (i) The
      Servicer shall amend the Mortgage Loan Schedule for the benefit of the
      Certificateholders to reflect the removal of such Deleted Mortgage Loan and
      the
      substitution of the Substitute Mortgage Loan or Loans and the Servicer shall
      deliver the amended Mortgage Loan Schedule to the Trustee, the Custodian, the
      Master Servicer and the Securities Administrator.

    

    (j) In
      the
      event that a Mortgage Loan shall have been repurchased pursuant to this
      Agreement or the Purchase Agreement, the proceeds from such repurchase shall
      be
      deposited by the Servicer in the Collection Account pursuant to
      Section 3.10 on or before the Remittance Date for the Distribution Date in
      the month following the month during which the Originator or Sponsor became
      obligated to repurchase or replace such Mortgage Loan and upon such deposit
      of
      the Repurchase Price, and receipt of a Request for Release in the form of
      Exhibit J hereto, the Custodian shall release the related Custodial File
      held for the benefit of the Certificateholders to the Originator or the Sponsor,
      as applicable, as directed by the Servicer, and the Trustee shall execute and
      deliver at such Person’s direction such instruments of transfer or assignment
      prepared by such Person, in each case without recourse, as shall be necessary
      to
      transfer title from the Trustee. In accordance with Section 12.05(a), if a
      Responsible Officer of the Securities Administrator has actual knowledge of
      a
      purchase of a Mortgage Loan pursuant to this Section 2.03, the Securities
      Administrator shall promptly notify each Rating Agency of a purchase of a
      Mortgage Loan pursuant to this Section 2.03.

    

    It
      is
      understood and agreed that the obligation of the Originator under this Agreement
      to cure, repurchase or substitute any Mortgage Loan as to which a breach of
      a
      representation and warranty has occurred and is continuing, together with any
      related indemnification obligations of the Originator set forth in
      Section 2.03(h), shall constitute the sole remedies against such Person
      respecting such breach available to Certificateholders, the Depositor and any
      of
      its Affiliates, or the Trustee on their behalf.

    
      
        
        

      

      
        -56-

        
          

        

      

      
        
        

      

    

    

    (k) The
      Trustee acknowledges that, except as provided in Section 5 of the Purchase
      Agreement, the Sponsor shall not have any obligation or liability with respect
      to any breach of a representation or warranty made by it with respect to a
      Mortgage Loan sold by it, provided that such representation or warranty was
      also
      made by the Originator with respect to the related Mortgage Loan. It is
      understood and agreed that the representations and warranties of the Sponsor
      set
      forth in Section 4 of the Purchase Agreement and assigned to the Trustee by
      the
      Depositor hereunder shall survive the transfer of the Mortgage Loans by the
      Depositor to the Trustee on the Closing Date, and shall inure to the benefit
      of
      the Trustee and the Certificateholders notwithstanding any restrictive or
      qualified endorsement on any Mortgage Note or Assignment of Mortgage and shall
      continue throughout the term of this Agreement. Upon the discovery by any of
      the
      Sponsor, the Depositor, the Securities Administrator, the Trustee, the Master
      Servicer or the Servicer of a breach of any of the Sponsor’s representations and
      warranties set forth in Section 4 of the Purchase Agreement, the party
      discovering the breach shall give prompt written notice to the others. Within
      30 days of the earlier of either discovery by or notice to the Sponsor of
      any breach of any of the foregoing representations or warranties that materially
      and adversely affects the value of any Mortgage Loan or the interest of the
      Trustee or the Certificateholders therein, the Sponsor shall use its best
      efforts to cure such breach in all material respects and, if such defect or
      breach cannot be remedied, the Sponsor shall, at the Depositor’s instructions as
      specified in writing and provided to the Sponsor and the Trustee, (i) if
      such 30-day period expires prior to the second anniversary of the Closing Date,
      remove such Mortgage Loan from the Trust Fund and substitute in its place a
      Substitute Mortgage Loan, in the same manner and subject to the same conditions
      set forth in this Section 2.03 that apply to repurchases or substitutions
      of Mortgage Loans by the Originator or (ii) repurchase such Mortgage Loan
      at the Repurchase Price; provided,
      however,
      that
      any such substitution pursuant to clause (i) above shall not be
      effected prior to the delivery to the Custodian of a Request for Release
      substantially in the form of Exhibit J, and the delivery of the Mortgage
      File to the Custodian for any such Substitute Mortgage Loan. In the event of
      any
      such repurchase or substitution of a Mortgage Loan by the Sponsor, the
      procedures set forth in Sections 2.03(e), (f), (g), (h), (i) and (j) shall
      apply
      to the Sponsor in the same manner and to the same extent that they are
      applicable to the Originator. It is understood and agreed that the obligations
      of the Sponsor under this Agreement to cure, repurchase or substitute any
      Mortgage Loan as to which a breach of a representation and warranty has occurred
      and is continuing, together with any related indemnification obligations of
      the
      Sponsor set forth in Section 2.03(h), shall constitute the sole remedies against
      the Sponsor available to the Certificateholders, the Depositor and any of its
      affiliates, or the Trustee on their behalf.

    

    The
      provisions of this Section 2.03 shall survive delivery of the respective
      Custodial Files to the Custodian for the benefit of the
      Certificateholders.

    

    Section
      2.04 Execution
      and Delivery of Certificates.
      The
      Trustee acknowledges the transfer and assignment to it of the Trust Fund and,
      concurrently with such transfer and assignment, the Securities Administrator
      has
      executed and delivered to, or upon the order of the Depositor, the Certificates
      in authorized denominations evidencing directly or indirectly the entire
      ownership of the Trust Fund. The Trustee agrees to hold the Trust Fund and
      exercise the rights referred to above for the benefit of all present and future
      Holders of the Certificates.

    
      
        
        

      

      
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    Section
      2.05 REMIC
      Matters.
      The
      Preliminary Statement sets forth the designations for federal income tax
      purposes of all interests created hereby.  The “Startup Day” for purposes
      of the REMIC Provisions shall be the Closing Date.  The “latest possible
      maturity date” is the Distribution Date occurring three years
      after the month in which the latest Mortgage Loan maturity date (of the
      Mortgage Loans held in the Trust on the Closing Date) occurs.

    

    Section
      2.06 Representations
      and Warranties of the Depositor.
      The
      Depositor hereby represents, warrants and covenants to the other parties to
      this
      agreement that as of the date of this Agreement or as of such date specifically
      provided herein:

    

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

    

    (b) The
      Depositor has the power and authority to convey the Mortgage Loans and to
      execute, deliver and perform, and to enter into and consummate transactions
      contemplated by, this Agreement;

    

    (c) This
      Agreement has been duly and validly authorized, executed and delivered by the
      Depositor, all requisite company action having been taken, and, assuming the
      due
      authorization, execution and delivery hereof by the other parties hereto,
      constitutes or will constitute the legal, valid and binding agreement of the
      Depositor, enforceable against the Depositor in accordance with its terms,
      except as such enforcement may be limited by bankruptcy, insolvency,
      reorganization, moratorium or other similar laws relating to or affecting the
      rights of creditors generally, and by general equity principles (regardless
      of
      whether such enforcement is considered in a proceeding in equity or at
      law);

    

    (d) No
      consent, approval, authorization or order of, or registration or filing with,
      or
      notice to, any governmental authority or court is required for the execution,
      delivery and performance of or compliance by the Depositor with this Agreement
      or the consummation by the Depositor of any of the transactions contemplated
      hereby, except as have been received or obtained on or prior to the Closing
      Date;

    

    (e) None
      of
      the execution and delivery of this Agreement, the consummation of the
      transactions contemplated hereby or thereby, or the fulfillment of or compliance
      with the terms and conditions of this Agreement, (i) conflicts or will
      conflict with or results or will result in a breach of, or constitutes or will
      constitute a default or results or will result in an acceleration under
      (A) the charter or bylaws of the Depositor, or (B) of any term,
      condition or provision of any material indenture, deed of trust, contract or
      other agreement or instrument to which the Depositor or any of its subsidiaries
      is a party or by which it or any of its subsidiaries is bound; (ii) results
      or will result in a violation of any law, rule, regulation, order, judgment
      or
      decree applicable to the Depositor of any court or governmental authority having
      jurisdiction over the Depositor or its subsidiaries; or (iii) results in
      the creation or imposition of any lien, charge or encumbrance which would have
      a
      material adverse effect upon the Mortgage Loans or any documents or instruments
      evidencing or securing the Mortgage Loans;

    

    (f) There
      are
      no actions, suits or proceedings before or against or investigations of, the
      Depositor pending, or to the knowledge of the Depositor, threatened, before
      any
      court, administrative agency or other tribunal, and no notice of any such
      action, which, in the Depositor’s reasonable judgment, might materially and
      adversely affect the performance by the Depositor of its obligations under
      this
      Agreement, or the validity or enforceability of this Agreement;

    
      
        
        

      

      
        -58-

        
          

        

      

      
        
        

      

    

    

    (g) The
      Depositor is not in default with respect to any order or decree of any court
      or
      any order, regulation or demand of any federal, state, municipal or governmental
      agency that would materially and adversely affect its performance hereunder;
      and

    

    (h) Immediately
      prior to the transfer and assignment by the Depositor to the Trustee on the
      Closing Date, the Depositor had good title to, and was the sole owner of each
      Mortgage Loan, free of any interest of any other Person, and the Depositor
      has
      transferred all right, title and interest in each Mortgage Loan to the Trustee.
      The transfer of the Mortgage Note and the Mortgage as and in the manner
      contemplated by this Agreement is sufficient either (i) fully to transfer
      to the Trustee, for the benefit of the Certificateholders, all right, title,
      and
      interest of the Depositor thereto as note holder and mortgagee or (ii) to
      grant to the Trustee, for the benefit of the Certificateholders, the security
      interest referred to in Section 12.04.

    

    It
      is
      understood and agreed that the representations, warranties and covenants set
      forth in this Section 2.06 shall survive delivery of the respective
      Mortgage Files to the Custodian and shall inure to the benefit of the
      Trustee.

    

    ARTICLE
      III

    

    ADMINISTRATION
      AND SERVICING

    OF
      MORTGAGE LOANS

    

    Section
      3.01 Servicer
      to Service Mortgage Loans.
      (a)  For and on behalf of the Certificateholders, the Servicer shall
      service and administer the Mortgage Loans in accordance with the terms of this
      Agreement and the respective Mortgage Loans and, to the extent consistent with
      such terms, in accordance with Accepted Servicing Practices, but without regard
      to:

    

    (i) any
      relationship that the Servicer, any Subservicer or any Affiliate of the Servicer
      or any Subservicer may have with the related Mortgagor;

    

    (ii) the
      ownership or non-ownership of any Certificate by the Servicer or any Affiliate
      of the Servicer;

    

    (iii) the
      Servicer’s obligation to make P&I Advances or Servicing Advances;
      or

    

    (iv) the
      Servicer’s or any Subservicer’s right to receive compensation for its services
      hereunder or with respect to any particular transaction.

    
      
        
        

      

      
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    To
      the
      extent consistent with the foregoing, the Servicer shall seek to maximize the
      timely and complete recovery of principal and interest on the Mortgage Notes.
      Subject only to the above-described servicing standards and the terms of this
      Agreement and of the respective Mortgage Loans, the Servicer shall have full
      power and authority, acting alone or through Subservicers as provided in
      Section 3.02, to do or cause to be done any and all things in connection
      with such servicing and administration which it may deem necessary or desirable.
      Without limiting the generality of the foregoing, the Servicer in its own name
      or in the name of a Subservicer is authorized and empowered by the Trustee
      pursuant to a limited power of attorney in the form attached hereto as Exhibit
      N
      when the Servicer believes it appropriate in its best judgment in accordance
      with Accepted Servicing Practices to execute and deliver any and all instruments
      of satisfaction or cancellation, or of partial or full release or discharge,
      and
      all other comparable instruments, with respect to the Mortgage Loans and the
      Mortgaged Properties and to institute foreclosure proceedings or obtain a
      deed-in-lieu of foreclosure so as to convert the ownership of such properties,
      and to hold or cause to be held title to such properties, on behalf of the
      Trustee; provided,
      further,
      that
      the Servicer shall notify the Custodian in writing of the Mortgage Loan of
      any
      such full release or discharge with respect to the Mortgage Loan and related
      Mortgage Properties. The Servicer shall at its own expense be responsible for
      preparing and recording all lien releases and mortgage satisfactions in
      accordance with state and local regulations. The Servicer shall service and
      administer the Mortgage Loans in accordance with applicable state and federal
      law and shall provide to the Mortgagors any reports required to be provided
      to
      them thereby. The Servicer shall also comply in the performance of this
      Agreement with all reasonable rules and requirements of each insurer under
      any
      standard hazard insurance policy or any Primary Mortgage Insurance Policy (if
      applicable). Subject to Section 3.16, the Trustee shall execute, at the
      written request of the Servicer, and furnish to the Servicer and any Subservicer
      such documents provided to the Trustee as are necessary or appropriate to enable
      the Servicer or any Subservicer to carry out their servicing and administrative
      duties hereunder, and the Trustee shall grant to the Servicer a limited power
      of
      attorney in the form attached hereto as Exhibit N to carry out such duties
      and
      to take title to Mortgaged Properties after foreclosure on behalf of the
      Trustee. The Trustee shall have the right to execute any additional separate
      powers of attorney in favor of the Servicer, to the extent necessary or
      desirable to enable the Servicer to perform its duties hereunder. The Trustee
      shall not be liable for the actions of the Servicer or any Subservicers under
      such powers of attorney. Notwithstanding anything contained herein to the
      contrary, no Servicer or Subservicer shall without the Trustee’s consent: (i)
      initiate any action, suit or proceeding solely under the Trustee’s name without
      indicating the Servicer’s or Subservicer’s, as applicable, representative
      capacity, or (ii) knowingly take any action with the intent to, or which
      actually does cause, the Trustee to be registered to do business in any
      state.

    

    (b) Subject
      to Section 3.09, in accordance with the standards of the preceding
      paragraph, the Servicer shall advance or cause to be advanced funds as necessary
      for the purpose of effecting the timely payment of taxes and assessments on
      the
      Mortgaged Properties, which advances shall be Servicing Advances reimbursable
      in
      the first instance from the collection from the Mortgagors pursuant to
      Section 3.09, and further as provided in Section 3.11. Any cost
      incurred by the Servicer or by Subservicers in effecting the timely payment
      of
      taxes and assessments on a Mortgaged Property shall not be added to the unpaid
      principal balance of the related Mortgage Loan, notwithstanding that the terms
      of such Mortgage Loan so permit.

    

    (c) Notwithstanding
      anything in this Agreement to the contrary, the Servicer may not make any future
      advances with respect to a Mortgage Loan (except as provided in
      Section 4.01) and the Servicer shall not, except as provided in 3.07(a),
      (i) permit any modification with respect to any Mortgage Loan that would
      change the Mortgage Rate, reduce or increase the principal balance (except
      for
      reductions resulting from actual payments of principal) or change the final
      maturity date on such Mortgage Loan (except for a reduction of interest payments
      resulting from the application of the Servicemembers Civil Relief Act or any
      similar state statutes) or (ii) permit any modification, waiver or
      amendment of any term of any Mortgage Loan that would both (A) effect an
      exchange or reissuance of such Mortgage Loan under Section 1001 of the Code
      (or final, temporary or proposed Treasury regulations promulgated thereunder)
      and (B) cause any REMIC formed hereby to fail to qualify as a REMIC under
      the Code or the imposition of any tax on “prohibited transactions” or
“contributions after the startup day” under the REMIC Provisions, or (iii) waive
      any Prepayment Charges.

    
      
        
        

      

      
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    (d) The
      Servicer may delegate its responsibilities under this Agreement; provided,
      however,
      that no
      such delegation shall release the Servicer from the responsibilities or
      liabilities arising under this Agreement.

    

    Section
      3.02 Subservicing
      Agreements between Servicer and Subservicers; Use of
      Subcontractors.
      (a) The
      Servicer may enter into a subservicing agreement with a Subservicer, for the
      servicing and administration of the Mortgage Loans (“Subservicing Agreement”)
      without obtaining the prior consent of the Trustee, the Depositor, the Master
      Servicer, the Securities Administrator or other parties hereto to the
      utilization of any such Subservicer, provided the provisions of such
      Subservicing Agreement comply with the requirements set forth in this Section
      3.02. None of the Trustee, the Securities Administrator, the Master Servicer
      or
      the Depositor shall be required to review or consent to such Subservicing
      Agreement and none shall have any liability in connection
      therewith.

    

    (b) Each
      Subservicer shall be (i) authorized to transact business in the state or
      states in which the related Mortgaged Properties it is to service are situated,
      if and to the extent required by applicable law to enable the Subservicer to
      perform its obligations hereunder and under the Subservicing Agreement and
      (ii)
      a Freddie Mac or Fannie Mae approved mortgage servicer. Each Subservicing
      Agreement must impose on the Subservicer requirements conforming to the
      provisions set forth in Sections 3.08, 3.22, 3.23, 3.24, 3.29, 6.05, 6.06,
      7.01(i), 8.12 and Exhibit S of this Agreement to the same extent as if such
      Subservicer were the Servicer and otherwise provide for servicing of the
      Mortgage Loans consistent with the terms of this Agreement. The Servicer shall
      examine each Subservicing Agreement and will be familiar with the terms thereof
      in order to determine that the foregoing requirements have been incorporated
      into the Subservicing Agreement and that the terms thereof are not otherwise
      inconsistent with any of the provisions of this Agreement. The Servicer and
      the
      Subservicers may enter into and make amendments to the Subservicing Agreements
      or enter into different forms of Subservicing Agreements; provided,
      however,
      that
      any such amendments or different forms shall be consistent with and not violate
      the provisions of this Agreement, and that no such amendment or different form
      shall be made or entered into which could be reasonably expected to have a
      materially adverse effect on the interests of the Trustee, the Depositor, the
      Master Servicer or the Securities Administrator without their prior written
      consent. Any variation without the consent of the Trustee, the Depositor, the
      Securities Administrator and the Master Servicer from the requirements set
      forth
      in Sections 3.08, 3.22, 3.23, 3.24, 3.29, 6.05, 6.06, 7.01(i), 8.12 and
      Exhibit S, are conclusively deemed to be inconsistent with this Agreement and
      therefore prohibited. The Servicer shall deliver to the Master Servicer, the
      Securities Administrator, the Trustee and the Depositor copies of all
      Subservicing Agreements, and any amendments or modifications thereof, promptly
      upon the Servicer’s execution and delivery of such instruments.

    
      
        
        

      

      
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    (c) As
      part
      of its servicing activities hereunder, the Servicer (except as otherwise
      provided in the last sentence of this paragraph) shall enforce the obligations
      of each Subservicer under the related Subservicing Agreement, including, without
      limitation, (i) any obligation to make advances in respect of delinquent
      payments as required by a Subservicing Agreement and (ii) the reporting
      obligations set forth under Section 3.22, 3.23, 3.24 and 3.29 hereof to the
      same
      extent as if such Subservicer were the Servicer. The Servicer shall be
      responsible for obtaining from each Subservicer and delivering to the Master
      Servicer, the Securities Administrator and the Depositor (i) any servicer annual
      compliance statement required to be delivered by such Subservicer under Section
      3.24(b); (ii) any report on assessments and attestations of compliance with
      Relevant Servicing Criteria required to be delivered by the Subservicer pursuant
      to Sections 3.22 and 3.23; and (iii) any certifications required to be delivered
      under Section 3.24(a) to the Master Servicer or such other Person that will
      be
      responsible for signing the Sarbanes-Oxley Certification as and where required
      to be delivered hereunder. Such enforcement, including, without limitation,
      the
      legal prosecution of claims, termination of Subservicing 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 Servicer, in its good faith business
      judgment, would require were it the owner of the related Mortgage Loans. The
      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 against whom such
      enforcement is directed.

    

    (d) It
      shall
      not be necessary for the Servicer to seek the consent of the Depositor, the
      Trustee, the Master Servicer, the Securities Administrator or other parties
      hereto to the utilization of a Subcontractor. The Servicer shall give prompt
      written notice to the Master Servicer, the Securities Administrator and the
      Depositor of the appointment of any Servicing Function Participant and provide
      a
      written description (in form and substance satisfactory to the Depositor) of
      the
      role and function of each Servicing Function Participant specifying which
      elements of the Servicing Criteria set forth under Item 1122(d) of Regulation
      AB
      will be addressed in assessments and attestations of compliance with Relevant
      Servicing Criteria provided by such Servicing Function Participant
      .

    

    (e) As
      a
      condition to the utilization of any Subcontractor determined to be a Servicing
      Function Participant, the Servicer shall cause any such Subcontractor used
      by
      the Servicer (or by any Subservicer) to comply with the provisions of Sections
      3.22, 3.23, 3.24, 3.29, 6.05, 6.06, 7.01(i), 8.12 and Exhibit S of this
      Agreement to the same extent as if such Subcontractor were the Servicer. The
      Servicer shall be responsible for obtaining from each Subcontractor and
      delivering to the Securities Administrator, the Master Servicer and the
      Depositor any assessments and attestations of compliance required to be
      delivered by such Subcontractor pursuant to Sections 3.22 and 3.23, in each
      case
      as and when required to be delivered. 

    
      
        
        

      

      
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    Section
      3.03 Successor
      Subservicers.
      The
      Servicer shall be entitled to terminate any Subservicing Agreement and the
      rights and obligations of any Subservicer pursuant to any Subservicing Agreement
      in accordance with the terms and conditions of such Subservicing Agreement.
      In
      the event of termination of any Subservicer, all servicing obligations of such
      Subservicer shall be assumed simultaneously by the Servicer without any act
      or
      deed on the part of such Subservicer or Servicer, and the Servicer either shall
      service directly the related Mortgage Loans or shall enter into a Subservicing
      Agreement with a successor subservicer which qualifies under
      Section 3.02.

    

    Any
      Subservicing Agreement shall include the provision that such agreement may
      be
      immediately terminated by the Master Servicer without fee, in accordance with
      the terms of this Agreement, in the event that the Servicer shall, for any
      reason, no longer be the Servicer (including termination due to an Event of
      Default).

    

    Section
      3.04 Liability
      of the Servicer.
      Notwithstanding any subservicing agreement or the provisions of this Agreement
      relating to agreements or arrangements between the Servicer and a Subservicer,
      Subcontractor or other third party or reference to actions taken through a
      Subservicer, a Subcontractor, another third party or otherwise, the Servicer
      shall remain obligated and primarily liable to the Trustee and the Trust Fund
      for the servicing and administering of the Mortgage Loans in accordance with
      the
      provisions hereof without diminution of such obligation or liability by virtue
      of any subservicing, subcontracting or other agreements or arrangements or
      by
      virtue of indemnification from a Subservicer, Subcontractor or a third party
      and
      to the same extent and under the same terms and conditions as if the Servicer
      alone were servicing the Mortgage Loans, including with respect to compliance
      with Item 1122 of Regulation AB. The Servicer shall be entitled to enter into
      any agreement with a Subservicer, Subcontractor or other third party for
      indemnification of the Servicer by such Subservicer, Subcontractor or third
      party and nothing contained in the Agreement shall be deemed to limit or modify
      such indemnification.

    

    Section
      3.05 No
      Contractual Relationship between Subservicers and the Master
      Servicer.
      Any
      Subservicing Agreement that may be entered into and any transactions or services
      relating to the Mortgage Loans involving a Subservicer in its capacity as such
      shall be deemed to be between the Subservicer and the Servicer alone, and none
      of the Trustee, the Depositor, the Securities Administrator, or the Master
      Servicer (nor any successor master servicer) shall be deemed a party thereto
      and
      shall have no claims, rights, obligations, duties or liabilities with respect
      to
      the Subservicer except as set forth in Section 3.06. The Servicer shall be
      solely liable for all fees owed by it to any Subservicer, irrespective of
      whether the Servicer’s compensation pursuant to this Agreement is sufficient to
      pay such fees.

    

    Section
      3.06 Assumption
      or Termination of Subservicing Agreements by Master Servicer.
      In the
      event the Servicer at any time shall for any reason no longer be the Servicer
      (including by reason of the occurrence of an Event of Default), the Master
      Servicer, or its designee or the successor servicer if the successor is not
      the
      Master Servicer, shall thereupon assume all of the rights and obligations of
      the
      Servicer under each Subservicing Agreement that the Servicer may have entered
      into, with copies thereof provided to the Master Servicer or the successor
      servicer if the successor is not the Master Servicer, prior to the Master
      Servicer or the successor servicer if the successor is not the Master Servicer,
      assuming such rights and obligations, unless the Master Servicer elects to
      terminate any Subservicing Agreement in accordance with its terms as provided
      in
      Section 3.03.

    
      
        
        

      

      
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    Upon
      such
      assumption, the Master Servicer, its designee or the successor servicer shall
      be
      deemed, subject to Section 3.03, to have assumed all of the Servicer’s
      interest therein and to have replaced the Servicer as a party to each
      Subservicing Agreement to the same extent as if each Subservicing Agreement
      had
      been assigned to the assuming party, except that (i) the Servicer shall not
      thereby be relieved of any liability or obligations under any Subservicing
      Agreement that arose before it ceased to be the Servicer and (ii) none of
      the Trustee, the Depositor, the Master Servicer, the Securities Administrator,
      their designees or any successor servicer shall be deemed to have assumed any
      liability or obligation of the Servicer that arose before it ceased to be the
      Servicer.

    

    The
      Servicer at its expense shall, upon request of the Master Servicer, its designee
      or the successor servicer deliver to the assuming party all documents and
      records relating to the Subservicing Agreement and the Mortgage Loans then
      being
      serviced and an accounting of amounts collected and held by or on behalf of
      it,
      and otherwise use its best efforts to effect the orderly and efficient transfer
      of the Subservicing Agreements to the assuming party.

    

    Section
      3.07 Collection
      of Certain Mortgage Loan Payments.
      (a)  The Servicer shall make reasonable efforts to collect all
      payments called for under the terms and provisions of the Mortgage Loans, and
      shall, to the extent such procedures shall be consistent with this Agreement
      and
      the terms and provisions of any applicable Insurance Policies, follow such
      collection procedures as it would follow with respect to mortgage loans
      comparable to the Mortgage Loans and held for its own account. Consistent with
      the foregoing and Accepted Servicing Practices, the Servicer may (i) waive
      any late payment charge or, if applicable, any penalty interest, or
      (ii) extend the due dates for the Scheduled Payments due on a Mortgage Note
      for a period of not greater than 180 days; provided, that any extension
      pursuant to clause (ii) above shall not affect the amortization
      schedule of any Mortgage Loan for purposes of any computation hereunder, except
      as provided below. In the event of any such arrangement pursuant to
      clause (ii) above, the Servicer shall make timely advances on such
      Mortgage Loan during such extension pursuant to Section 4.01 and in
      accordance with the amortization schedule of such Mortgage Loan without
      modification thereof by reason of such arrangements, subject to
      Section 4.01(d) pursuant to which the Servicer shall not be required to
      make any such advances that are Nonrecoverable P&I Advances. Notwithstanding
      the foregoing, in the event that any Mortgage Loan is in default or in the
      judgment of the Servicer, such default is reasonably foreseeable, the Servicer,
      consistent with the standards set forth in Section 3.01, may also waive,
      modify or vary any term of such Mortgage Loan (including modifications that
      would change the Mortgage Rate, forgive the payment of principal or interest,
      extend the final maturity date of such Mortgage Loan or waive, in whole or
      in
      part, a Prepayment Charge), accept payment from the related Mortgagor of an
      amount less than the Stated Principal Balance in final satisfaction of such
      Mortgage Loan, or consent to the postponement of strict compliance with any
      such
      term or otherwise grant indulgence to any Mortgagor (any and all such waivers,
      modifications, variances, forgiveness of principal or interest, postponements,
      or indulgences collectively referred to herein as “Forbearance”); provided,
      however, that the Servicer’s approval of a modification of a Due Date shall not
      be considered a modification for purposes of this sentence; provided, further,
      that the final maturity date of any Mortgage Loan may not be extended beyond
      the
      Final Scheduled Distribution Date for the LIBOR Certificates. The Servicer’s
      analysis supporting any Forbearance and the conclusion that any Forbearance
      meets the standards of Section 3.01 shall be reflected in writing in the
      Servicing File or on the Servicer’s servicing records. In addition,
      notwithstanding the foregoing, the Servicer may also waive (or permit a
      Subservicer to waive), in whole or in part, a Prepayment Charge if such waiver
      would, in the Servicer’s judgment, maximize recoveries on the related Mortgage
      Loan or if such Prepayment Charge is (i) not permitted to be collected by
      applicable law, or the collection of the Prepayment Charge would be considered
      “predatory” pursuant to written guidance published by any applicable federal,
      state or local regulatory authority having jurisdiction over such matters,
      or
      (ii) the enforceability of such Prepayment Charge is limited (1) by
      bankruptcy, insolvency, moratorium, receivership or other similar laws relating
      to creditors’ rights or (2) due to acceleration in connection with a
      foreclosure or other involuntary payment. If a Prepayment Charge is waived
      other
      than as permitted in this Section 3.07(a), then the Servicer is required to
      pay the amount of such waived Prepayment Charge, for the benefit of the Holders
      of the Class P Certificates, by depositing such amount into the Collection
      Account together with and at the time that the amount prepaid on the related
      Mortgage Loan is required to be deposited into the Collection Account; provided,
      however, that the Servicer shall not have an obligation to pay the amount of
      any
      uncollected Prepayment Charge if the failure to collect such amount is the
      direct result of inaccurate or incomplete information on the Mortgage Loan
      Schedule in effect at such time. The Master Servicer shall have no
      responsibility for verifying the accuracy of the amount of Prepayment Charges
      waived or remitted by the Servicer 

    
      
        
        

      

      
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    (b)  
      (i) The Securities Administrator shall establish and maintain the Excess Reserve
      Fund Account as an asset of the Supplemental Interest Trust, on behalf of the
      Class X Certificateholders, to receive any Basis Risk Payment and to secure
      their limited recourse obligation to pay to the LIBOR Certificateholders any
      Basis Risk Carryover Amounts. The Excess Reserve Fund Account shall be funded
      on
      the Closing Date with an initial deposit of $1,000 by the
      Depositor.

    

    (ii) On
      each
      Distribution Date, the Securities Administrator shall deposit the amount of
      any
      Basis Risk Payment for such date into the Excess Reserve Fund Account.

    

    (c) (i) On
      each
      Distribution Date on which there exists a Basis Risk Carryover Amount on any
      Class of LIBOR Certificates, the Securities Administrator shall
      (1) withdraw from the Distribution Account and deposit in the Excess
      Reserve Fund Account, as set forth in Section 4.02(a)(iii)(C), the lesser
      of (x) the Class X Distributable Amount (without regard to the
      reduction in the definition thereof with respect to the Basis Risk Payment
      (to
      the extent remaining after the distributions specified in
      Sections  4.02(a)(iii)(A)
      through (G))) and (y) the aggregate Basis Risk Carryover Amounts for such
      Distribution Date and (2) withdraw from the Excess Reserve Fund Account
      amounts necessary to pay to such Class or Classes of LIBOR Certificates the
      applicable Basis Risk Carryover Amount. Such payments shall be allocated to
      those Classes on a pro rata
      basis
      based upon the amount of Basis Risk Carryover Amount owed to each such
      Class and shall be paid in the priority set forth in
      Sections 4.02(a)(iii)(D).

    
      
        
        

      

      
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    (ii) The
      Securities Administrator shall account for the Excess Reserve Fund Account
      as an
      asset of a grantor trust under subpart E, Part I of subchapter J
      of the Code and not as an asset of any REMIC created pursuant to this Agreement.
      The beneficial owners of the Excess Reserve Fund Account are the Class X
      Certificateholders. For all federal tax purposes, amounts transferred by the
      Upper Tier REMIC to the Excess Reserve Fund Account shall be treated as
      distributions by the Securities Administrator to the Class X
      Certificateholders.

    

    (iii) Any
      Basis
      Risk Carryover Amounts paid by the Securities Administrator to the LIBOR
      Certificateholders shall be accounted for by the Securities Administrator as
      amounts paid first to the Holders of the Class X Certificates and then to
      the respective Class or Classes of LIBOR Certificates. In addition, the
      Securities Administrator shall account for such Certificateholders’ rights to
      receive payments of Basis Risk Carryover Amounts as rights in a limited recourse
      notional principal contract written by the Class X Certificateholders in
      favor of such Certificateholders.

    

    (iv) Notwithstanding
      any provision contained in this Agreement, the Securities Administrator shall
      not be required to make any payments to and from the Excess Reserve Fund Account
      except as expressly set forth in this Section 3.07(c) and
      Sections 4.02(a)(iii)(C), (D) and (H).

    

    (d) The
      Master Servicer shall establish and maintain the Master Servicing Account on
      behalf of the Certificateholders. The Master Servicer shall, promptly upon
      receipt, deposit in the Master Servicing Account and retain therein the
      following:

    

    (i) the
      aggregate amount remitted by the Servicer to the Master Servicer pursuant to
      Section 3.11;

    

    (ii) any
      amount deposited by the Servicer pursuant to Section 3.12 in connection with
      any
      losses on Permitted Investments; and

    

    (iii) any
      other
      amounts deposited hereunder which are required to be deposited in the Master
      Servicing Account.

    

    In
      the
      event that the Servicer shall remit any amount not required to be remitted,
      it
      may at any time direct the Master Servicer in writing to withdraw such amount
      from the Master Servicing Account, any provision herein to the contrary
      notwithstanding. Such direction may be accomplished by delivering notice to
      the
      Master Servicer which describes the amounts deposited in error in the Master
      Servicing Account. All funds deposited in the Master Servicing Account shall
      be
      held by the Master Servicer in trust for the Certificateholders until disbursed
      in accordance with this Agreement. On each Master Servicer Remittance Date,
      the
      entire amount on deposit in the Master Servicing Account (subject to permitted
      withdrawals as set forth above) shall be remitted to the Securities
      Administrator for deposit into the Distribution Account by wire transfer in
      immediately available funds. 

    

    (e) The
      Securities Administrator shall establish and maintain the Distribution Account
      on behalf of the Certificateholders. The Securities Administrator shall,
      promptly upon receipt, deposit in the Distribution Account and retain therein
      the following:

    
      
        
        

      

      
        -66-

        
          

        

      

      
        
        

      

    

    

    (i) any
      amount remitted by the Master Servicer from the Master Servicing Account
      pursuant to this Agreement; and

    

    (ii) any
      other
      amounts deposited hereunder which are required to be deposited in the
      Distribution Account. 

    

    In
      the
      event that the Master Servicer shall remit any amount not required to be
      remitted, it may at any time direct the Securities Administrator in writing
      to
      withdraw such amount from the Distribution Account, any provision herein to
      the
      contrary notwithstanding. Such direction may be accomplished by delivering
      notice to the Securities Administrator which describes the amounts deposited
      in
      error in the Distribution Account. All funds deposited in the Distribution
      Account shall be held by the Securities Administrator in trust for the
      Certificateholders until disbursed in accordance with this Agreement or
      withdrawn in accordance with Section 4.02. 

    

    Section
      3.08 Subservicing
      Accounts.
      In
      those cases where a Subservicer is servicing a Mortgage Loan pursuant to a
      Subservicing Agreement, the Subservicer will be required to establish and
      maintain one or more segregated accounts (collectively, the “Subservicing
      Account”). The Subservicing Account shall be an Eligible Account and shall
      otherwise be acceptable to the Servicer. The Subservicer shall deposit in the
      clearing account (which account must be an Eligible Account) in which it
      customarily deposits payments and collections on mortgage loans in connection
      with its mortgage loan servicing activities on a daily basis, and in no event
      more than one Business Day after the Subservicer’s receipt thereof, all proceeds
      of Mortgage Loans received by the Subservicer less its servicing compensation
      to
      the extent permitted by the Subservicing Agreement, and shall thereafter deposit
      such amounts in the Subservicing Account, in no event more than two Business
      Days after the deposit of such funds into the clearing account. The Subservicer
      shall thereafter deposit such proceeds in the Collection Account or remit such
      proceeds to the Servicer for deposit in the Collection Account not later than
      two Business Days after the deposit of such amounts in the Subservicing Account.
      For purposes of this Agreement, the Servicer shall be deemed to have received
      payments on the Mortgage Loans when the Subservicer receives such payments.
      Funds in the clearing account and any Subservicing Account may, in the
      discretion of the Servicer, be invested in Permitted Investments pending their
      deposit into the Subservicing Account and the Collection Account, respectively;
      provided, however, the Servicer shall be responsible for any losses incurred
      on
      such investments immediately upon realization.

    

    Section
      3.09 Collection
      of Taxes, Assessments and Similar Items; Escrow Accounts.
      To the
      extent the related Mortgage provides for Escrow Payments, the Servicer shall
      establish and maintain, or cause to be established and maintained, one or more
      segregated accounts (the “Escrow Accounts”), which shall be Eligible Accounts.
      The Servicer shall deposit in the clearing account (which account must be an
      Eligible Account) in which it customarily deposits payments and collections
      on
      mortgage loans in connection with its mortgage loan servicing activities on
      a
      daily basis, and in no event more than one Business Day after the Servicer’s
      receipt thereof, all collections from the Mortgagors (or related advances from
      Subservicers) for the payment of taxes, assessments, hazard insurance premiums
      and comparable items for the account of the Mortgagors (“Escrow Payments”)
      collected on account of the Mortgage Loans and shall thereafter deposit such
      Escrow Payments in the Escrow Accounts, in no event more than two Business
      Days
      after the deposit of such funds in the clearing account, for the purpose of
      effecting the payment of any such items as required under the terms of this
      Agreement. Withdrawals of amounts from an Escrow Account may be made only to
      (i) effect payment of taxes, assessments, hazard insurance premiums, and
      comparable items; (ii) reimburse the Servicer (or a Subservicer to the
      extent provided in the related Subservicing Agreement) out of the collection
      for
      any advances made pursuant to Section 3.01 (with respect to taxes and
      assessments) and Section 3.13 (with respect to hazard insurance);
      (iii) refund to Mortgagors any sums as may be determined to be overages;
      (iv) pay interest, if required and as described below, to Mortgagors on
      balances in the Escrow Account; (v) clear and terminate the Escrow Account
      at the termination of the Servicer’s obligations and responsibilities in respect
      of the Mortgage Loans under this Agreement; or (vi) recover amounts
      deposited in error. As part of its servicing duties, the Servicer or
      Subservicers shall pay to the Mortgagors interest on funds in Escrow Accounts,
      to the extent required by law and, to the extent that interest earned on funds
      in the Escrow Accounts is insufficient, to pay such interest from its or their
      own funds, without any reimbursement therefor. To the extent that a Mortgage
      does not provide for Escrow Payments, the Servicer shall determine whether
      any
      such payments are made by the Mortgagor in a manner and at a time that avoids
      the loss of the Mortgaged Property due to a tax sale or the foreclosure of
      a tax
      lien. The Servicer assumes full responsibility for the payment of all such
      bills
      within such time and shall effect payments of all such bills irrespective of
      the
      Mortgagor’s faithful performance in the payment of same or the making of the
      Escrow Payments and shall make advances from its own funds to effect such
      payments; provided, however, that such advances are deemed to be Servicing
      Advances.

    
      
        
        

      

      
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    Section
      3.10 Collection
      Account.
      (a)  On behalf of the Trust, the Servicer shall establish and
      maintain, or cause to be established and maintained, one or more segregated
      Eligible Accounts (such account or accounts, the “Collection Account”), held in
      trust for the benefit of the Trustee. On behalf of the Trust, the Servicer
      shall
      deposit or cause to be deposited in the clearing account (which account must
      be
      an Eligible Account) in which it customarily deposits payments and collections
      on mortgage loans in connection with its mortgage loan servicing activities
      on a
      daily basis, and in no event more than one Business Day after the Servicer’s
      receipt thereof, and shall thereafter deposit into the Collection Account,
      in no
      event more than two Business Days after the deposit of such funds into the
      clearing account, as and when received or as otherwise required hereunder,
      the
      following payments and collections received or made by it subsequent to the
      Cut-off Date (other than in respect of principal or interest on the related
      Mortgage Loans due on or before the Cut-off Date), or payments (other than
      Principal Prepayments) received by it on or prior to the Cut-off Date but
      allocable to a Due Period subsequent thereto:

    

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

    

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

    

    (iii) all
      Insurance Proceeds and Condemnation Proceeds to the extent such Insurance
      Proceeds and Condemnation Proceeds are not to be applied to the restoration
      of
      the related Mortgaged Property or released to the related Mortgagor in
      accordance with the express requirements of law or in accordance with Accepted
      Servicing Practices, Liquidation Proceeds and Subsequent
      Recoveries;

    
      
        
        

      

      
        -68-

        
          

        

      

      
        
        

      

    

    

    (iv) any
      amounts required to be deposited pursuant to Section 3.12 in connection
      with any losses realized on Permitted Investments with respect to funds held
      in
      the Collection Account;

    

    (v) any
      amounts required to be deposited by the Servicer pursuant to the second
      paragraph of Section 3.13(a) in respect of any blanket policy
      deductibles;

    

    (vi) all
      proceeds of any Mortgage Loan repurchased or purchased in accordance with this
      Agreement; and

    

    (vii) all
      Prepayment Charges collected by the Servicer.

    

    The
      foregoing requirements for deposit in the Collection Account shall be exclusive,
      it being understood and agreed that, without limiting the generality of the
      foregoing, payments in the nature of late payment charges, NSF fees,
      reconveyance fees, assumption fees and other similar fees and charges need
      not
      be deposited by the Servicer in the Collection Account and shall, upon
      collection, belong to the Servicer as additional compensation for its servicing
      activities. In the event the Servicer shall deposit in the Collection Account
      any amount not required to be deposited therein, it may at any time withdraw
      such amount from the Collection Account, any provision herein to the contrary
      notwithstanding. 

    

    (b) Funds
      in
      the Collection Account may be invested in Permitted Investments in accordance
      with the provisions set forth in Section 3.12. The Servicer shall give
      notice to the Securities Administrator, the Master Servicer, the Trustee and
      the
      Depositor of the location of the Collection Account maintained by it when
      established and prior to any change thereof.

    

    Section
      3.11 Withdrawals
      from the Collection Account.
      (a) The Servicer shall, from time to time, make withdrawals from the
      Collection Account maintained by it for any of the following purposes or as
      described in Section 4.01:

    

    (i) on
      or
      prior to each Remittance Date, to remit to the Master Servicer all Available
      Funds in respect of the related Distribution Date together with all amounts
      representing Prepayment Charges (payable to the Class P Certificateholders)
      from the Mortgage Loans received during the related Prepayment
      Period;

    

    (ii) to
      reimburse the Servicer for P&I Advances, but only to the extent of amounts
      received which represent Late Collections (net of the related Servicing Fees)
      of
      Scheduled Payments on Mortgage Loans with respect to which such P&I Advances
      were made by the Servicer in accordance with the provisions of Section 4.01
      and (B) any unreimbursed P&I Advances to the extent of funds held in the
      Collection Account for a future Distribution Date that were not included in
      Available Funds for the preceding Distribution Date;

    
      
        
        

      

      
        -69-

        
          

        

      

      
        
        

      

    

    

    (iii) to
      pay
      the Servicer or any Subservicer (A) any unpaid Servicing Fees or
      (B) any unreimbursed Servicing Advances with respect to each Mortgage Loan,
      but only to the extent of any Late Collections or other amounts as may be
      collected by the Servicer from a Mortgagor, or otherwise received with respect
      to such Mortgage Loan (or the related REO Property);

    

    (iv) to
      pay to
      the Servicer as servicing compensation (in addition to the Servicing Fee) on
      each Remittance Date any interest or investment income earned on funds deposited
      in the Collection Account;

    

    (v) to
      pay to
      the Originator, with respect to each Mortgage Loan that has previously been
      repurchased or replaced pursuant to this Agreement, all amounts received thereon
      subsequent to the date of purchase or substitution, as the case may
      be;

    

    (vi) to
      reimburse the Servicer for (A) any P&I Advance or Servicing Advance
      previously made which the Servicer has determined to be a Nonrecoverable P&I
      Advance or Nonrecoverable Servicing Advance in accordance with the provisions
      of
      Section 4.01 and (B) any unpaid Servicing Fees to the extent not
      recoverable from Late Collections or other amounts received with respect to
      the
      related Mortgage Loan under Section 3.11(a)(iii);

    

    (vii) to
      pay,
      or to reimburse the Servicer for Servicing Advances in respect of, expenses
      incurred in connection with any Mortgage Loan pursuant to
      Section 3.15;

    

    (viii) to
      reimburse the Master Servicer, the Servicer, the Depositor, the Securities
      Administrator or the Trustee for expenses incurred by or reimbursable to the
      Master Servicer, the Servicer, the Depositor, the Securities Administrator
      or
      the Trustee, as the case may be, pursuant to Section 6.03,
      Section 7.02, Section 8.05, Section 9.13 or
      Section 10.02;

    

    (ix) to
      reimburse the Master Servicer, the Servicer, the Securities Administrator or
      the
      Trustee, as the case may be, for expenses reasonably incurred in respect of
      the
      breach or defect giving rise to the repurchase obligation of the Originator
      or
      the Sponsor under this Agreement that were included in the Repurchase Price
      of
      the Mortgage Loan, including any expenses arising out of the enforcement of
      the
      repurchase obligation, to the extent not otherwise paid pursuant to the terms
      hereof;

    

    (x) to
      withdraw any amounts deposited in the Collection Account in error;
      and

    

    (xi) to
      clear
      and terminate the Collection Account upon termination of this
      Agreement.

    

    (b) The
      Servicer shall keep and maintain separate accounting, on a Mortgage Loan by
      Mortgage Loan basis, for the purpose of justifying any withdrawal from the
      Collection Account, to the extent held by or on behalf of it, pursuant to
      subclauses (a)(ii), (iii), (v), (vi), (vii), (viii) and (ix) above.
      The Servicer shall provide written notification (as set forth in
      Section 4.01(d)) to the Master Servicer, on or prior to the next succeeding
      Remittance Date, upon making any withdrawals from the Collection Account
      pursuant to subclause (a)(vi) above.

    
      
        
        

      

      
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    Section
      3.12 Investment
      of Funds in the Collection Account and Escrow Account.
      (a)  The Servicer may invest the funds in the Collection Account
      maintained by it and the Escrow Account (to the extent permitted by law and
      the
      related Mortgage Loan documents) (for purposes of this Section 3.12, each
      such Account is referred to as an “Investment Account”), in one or more
      Permitted Investments bearing interest or sold at a discount, and maturing,
      unless payable on demand, no later than the Business Day immediately preceding
      the date on which such funds are required to be withdrawn from such account
      pursuant to this Agreement; provided, however, that any such Permitted
      Investment managed by or advised by the Securities Administrator or any of
      its
      Affiliates may mature, unless payable on demand, no later than the date on
      which
      such funds are required to be withdrawn from such account pursuant to this
      Agreement. All such Permitted Investments shall be held to maturity, unless
      payable on demand. Any investment of funds in an Investment Account shall be
      made in the name of the Servicer. The Servicer shall be entitled to sole
      possession over each such investment, and any certificate or other instrument
      evidencing any such investment shall be delivered directly to the Servicer
      or
      its agent together with any document of transfer necessary to transfer title
      to
      such investment to the Servicer. In the event amounts on deposit in an
      Investment Account are at any time invested in a Permitted Investment payable
      on
      demand, the Servicer may:

    

    
      	 	
              (x)

            	
              consistent
                with any notice required to be given thereunder, demand that payment
                thereon be made on the last day such Permitted Investment may otherwise
                mature hereunder in an amount equal to the lesser of (1) all amounts
                then payable thereunder and (2) the amount required to be withdrawn
                on
                such date; and

            

    

    

    
      	 	
              (y)

            	
              demand
                payment of all amounts due thereunder that such Permitted Investment
                would
                not constitute a Permitted Investment in respect of funds thereafter
                on
                deposit in an Investment Account.

            

    

    

    (b) All
      income and gain realized from the investment of funds deposited in the
      Collection Account or Escrow Account, as applicable, held by or on behalf of
      the
      Servicer, shall be for the benefit of the Servicer and shall be subject to
      its
      withdrawal in the manner set forth in Section 3.11. The Servicer shall
      deposit in the Collection Account or Escrow Account, as applicable, the amount
      of any loss of principal incurred in respect of any such Permitted Investment
      made with funds in such accounts immediately upon realization of such
      loss.

    

    (c) During
      the Securities Administrator Float Period, the Securities Administrator shall
      hold the funds in the Distribution Account uninvested, and shall have the
      benefit of the use of such funds. During the Master Servicer Float Period,
      the
      Master Servicer shall hold the funds in the Master Servicing Account uninvested,
      and shall have the benefit of the use of such funds.

    

    (d) Except
      as
      otherwise expressly provided in this Agreement, if any default occurs in the
      making of a payment due under any Permitted Investment of funds held in the
      Escrow Account or the Collection Account, or if a default occurs in any other
      performance required under any Permitted Investment of funds held in the Escrow
      Account or the Collection Account, the Servicer shall take such action as may
      be
      appropriate to enforce such payment or performance, including the institution
      and prosecution of appropriate proceedings.

    
      
        
        

      

      
        -71-

        
          

        

      

      
        
        

      

    

    

    (e) The
      Securities Administrator or its Affiliates are permitted to receive compensation
      that could be deemed to be in the Securities Administrator’s economic
      self-interest for (i) serving as investment adviser, administrator,
      shareholder, servicing agent, custodian or sub-custodian with respect to certain
      of the Permitted Investments, (ii) using Affiliates to effect transactions
      in certain Permitted Investments and (iii) effecting transactions in
      certain Permitted Investments. The Master Servicer or its Affiliates are
      permitted to receive compensation that could be deemed to be in the Master
      Servicer’s economic self-interest for (i) serving as investment adviser,
      administrator, shareholder, servicing agent, custodian or sub-custodian with
      respect to certain of the Permitted Investments, (ii) using Affiliates to
      effect transactions in certain Permitted Investments and (iii) effecting
      transactions in certain Permitted Investments. Such compensation shall not
      be
      considered an amount that is reimbursable for payable pursuant to this
      Agreement.

    

    Section
      3.13 Maintenance
      of Hazard Insurance and Errors and Omissions and Fidelity
      Coverage.
      (a)  The Servicer shall cause to be maintained for each Mortgage Loan
      fire insurance with extended coverage on the related Mortgaged Property in
      an
      amount which is at least equal to the least of (i) the outstanding
      principal balance of such Mortgage Loan, (ii) the amount necessary to fully
      compensate for any damage or loss to the improvements that are a part of such
      property on a replacement cost basis and (iii) the maximum insurable value
      of the improvements which are a part of such Mortgaged Property, in each case
      in
      an amount not less than such amount as is necessary to avoid the application
      of
      any coinsurance clause contained in the related hazard insurance policy.
      The Servicer shall also cause to be maintained fire insurance with extended
      coverage on each REO Property in an amount which is at least equal to the lesser
      of (i) the maximum insurable value of the improvements which are a part of
      such property and (ii) the outstanding principal balance of the related
      Mortgage Loan at the time it became an REO Property. The Servicer will
      comply in the performance of this Agreement with all reasonable rules and
      requirements of each insurer under any such hazard policies. Any amounts to
      be
      collected by the Servicer under any such policies (other than amounts required
      to be deposited in the Escrow Account and applied to the restoration or repair
      of the property subject to the related Mortgage or amounts to be released to
      the
      Mortgagor in accordance with the procedures that the Servicer would follow
      in
      servicing loans held for its own account, subject to the terms and conditions
      of
      the related Mortgage and Mortgage Note) shall be deposited in the Collection
      Account, subject to withdrawal pursuant to Section 3.11. Any cost incurred
      by the Servicer in maintaining any such insurance shall not, for the purpose
      of
      calculating distributions to the Master Servicer, be added to the unpaid
      principal balance of the related Mortgage Loan, notwithstanding that the terms
      of such Mortgage Loan so permit. It is understood and agreed that no earthquake
      or other additional insurance is to be required of any Mortgagor other than
      pursuant to such applicable laws and regulations as shall at any time be in
      force and as shall require such additional insurance. If the Mortgaged Property
      or REO Property is at any time in an area identified in the Federal Register
      by
      the Federal Emergency Management Agency as having special flood hazards and
      flood insurance has been made available, the Servicer will cause to be
      maintained a flood insurance policy in respect thereof. Such flood insurance
      shall be in an amount equal to the lesser of (i) the unpaid principal
      balance of the related Mortgage Loan and (ii) the maximum amount of such
      insurance available for the related Mortgaged Property under the national flood
      insurance program (assuming that the area in which such Mortgaged Property
      is
      located is participating in such program).

    
      
        
        

      

      
        -72-

        
          

        

      

      
        
        

      

    

    

    In
      the
      event that the Servicer shall obtain and maintain a blanket policy with an
      insurer having a general policy rating of A:VI or better in Best’s (or such
      other rating that is comparable to such rating) insuring against hazard losses
      on all of the Mortgage Loans, it shall conclusively be deemed to have satisfied
      its obligations as set forth in the first two sentences of this
      Section 3.13, it being understood and agreed that such policy may contain a
      deductible clause, in which case the Servicer shall, in the event that there
      shall not have been maintained on the related Mortgaged Property or REO Property
      a policy complying with the first two sentences of this Section 3.13, and
      there shall have been one or more losses which would have been covered by such
      policy, deposit to the Collection Account from its own funds the amount not
      otherwise payable under the blanket policy because of such deductible clause.
      In
      connection with its activities as administrator and servicer of the Mortgage
      Loans, the Servicer agrees to prepare and present, on behalf of itself and
      the
      Trustee, claims under any such blanket policy in a timely fashion in accordance
      with the terms of such policy.

    

    (b) The
      Servicer shall keep in force during the term of this Agreement a policy or
      policies of insurance covering errors and omissions for failure in the
      performance of the Servicer’s obligations under this Agreement, which policy or
      policies shall be in such form and amounts as would meet the requirements of
      Fannie Mae and Freddie Mac, unless the Servicer has obtained a waiver of such
      requirements from Fannie Mae and Freddie Mac. The Servicer shall also maintain
      a
      fidelity bond in the form and amounts that would meet the requirements of Fannie
      Mae and Freddie Mac, unless the Servicer has obtained a waiver of such
      requirements from Fannie Mae and Freddie Mac. The Servicer shall provide the
      Master Servicer with copies of any such insurance policies and fidelity bond.
      The Servicer shall be deemed to have complied with this provision if an
      Affiliate of the Servicer has such errors and omissions and fidelity bond
      coverage and, by the terms of such insurance policy or fidelity bond, the
      coverage afforded thereunder extends to the Servicer. Any such errors and
      omissions policy and fidelity bond shall by its terms not be cancelable without
      thirty days’ prior written notice to the Master Servicer. The Servicer
      shall also cause each Subservicer to maintain a policy of insurance covering
      errors and omissions and a fidelity bond which would meet such
      requirements.

    

    Section
      3.14 Enforcement
      of Due-On-Sale Clauses; Assumption Agreements.
      The
      Servicer will, to the extent it has knowledge of any conveyance or prospective
      conveyance of any Mortgaged Property by any Mortgagor (whether by absolute
      conveyance or by contract of sale, and whether or not the Mortgagor remains
      or
      is to remain liable under the Mortgage Note and/or the Mortgage), exercise
      its
      rights to accelerate the maturity of such Mortgage Loan under the “due-on-sale”
clause, if any, applicable thereto; provided, however, that the Servicer shall
      not exercise any such rights if prohibited by law from doing so or if the
      exercise of such rights would impair or threaten to impair recovery under the
      related Primary Mortgage Insurance Policy, if any. If the Servicer believes
      it
      is unable under applicable law to enforce such “due-on-sale” clause or if
      any of the other conditions set forth in the proviso to the preceding sentence
      apply, the Servicer will enter into either (i) an assumption and
      modification agreement from or with the person to whom such property has been
      conveyed or is proposed to be conveyed, pursuant to which such person becomes
      liable under the Mortgage Note and, to the extent permitted by applicable state
      law, the Mortgagor remains liable thereon or (ii) a substitution agreement
      as provided in the succeeding sentence. The Servicer is also authorized to
      enter
      into a substitution of liability agreement with such person, pursuant to which
      the original Mortgagor is released from liability and such person is substituted
      as the Mortgagor and becomes liable under the Mortgage Note, provided, that
      no
      such substitution shall be effective unless such person satisfies the
      underwriting criteria of the Originator and has a credit risk rating at least
      equal to that of the original Mortgagor. The Mortgage Loan, as assumed, shall
      conform in all respects to the requirements, representations and warranties
      of
      this Agreement. The Servicer shall not take or enter into any assumption and
      modification agreement, however, unless (to the extent practicable in the
      circumstances) it shall have received confirmation, in writing, of the continued
      effectiveness of any applicable hazard insurance policy, or a new policy meeting
      the requirements of this Section is obtained. Any fee collected by the
      Servicer in respect of an assumption or substitution of liability agreement
      will
      be retained by the Servicer as additional servicing compensation. In connection
      with any such assumption, no material term of the Mortgage Note (including
      but
      not limited to the related Mortgage Rate and the amount of the Scheduled
      Payment) may be amended or modified, except as otherwise required pursuant
      to
      the terms thereof. The Servicer shall notify the Master Servicer that any such
      substitution, modification or assumption agreement has been completed and shall
      forward to the Custodian the executed original of such substitution or
      assumption agreement, which document shall be added to the related Mortgage
      File
      and shall, for all purposes, be considered a part of such Mortgage File to
      the
      same extent as all other documents and instruments constituting a part
      thereof.

    
      
        
        

      

      
        -73-

        
          

        

      

      
        
        

      

    

    

    Notwithstanding
      the foregoing paragraph or any other provision of this Agreement, the
      Servicer shall not be deemed to be in default, or any other violation of its
      obligations hereunder by reason of any assumption of a Mortgage Loan by
      operation of law or by the terms of the Mortgage Note or any assumption which
      the Servicer may be restricted by law from preventing, for any reason
      whatsoever. For purposes of this Section 3.14, the term “assumption” is
      deemed to also include a sale (of the Mortgaged Property) subject to the
      Mortgage that is not accompanied by an assumption or substitution of liability
      agreement.

    

    Section
      3.15 Realization
      upon Defaulted Mortgage Loans.
      The
      Servicer shall use its best efforts, consistent with Accepted Servicing
      Practices, to foreclose upon or otherwise comparably convert (which may include
      an acquisition of REO Property) the ownership of properties securing such
      of the Mortgage Loans as come into and continue in default and as to which
      no
      satisfactory arrangements can be made for collection of delinquent payments
      pursuant to Section 3.07, and which are not released from this Agreement
      pursuant to any other provision hereof. The Servicer shall use reasonable
      efforts to realize upon such defaulted Mortgage Loans in such manner as will
      maximize the receipt of principal and interest by the Securities Administrator,
      taking into account, among other things, the timing of foreclosure proceedings.
      The foregoing is subject to the provisions that the Servicer shall not be
      required to expend its own funds in connection with foreclosure or other
      conversion, correction of a default on a senior mortgage or restoration of
      any
      property unless it shall determine in its sole discretion (i) that such
      foreclosure, correction or restoration will increase the net Liquidation
      Proceeds of the related Mortgage Loan to the Securities Administrator, after
      reimbursement to itself for such expenses and (ii) that such expenses will
      be recoverable by the Servicer through Insurance Proceeds, Condemnation
      Proceeds, Liquidation Proceeds or Subsequent Recoveries from the related
      Mortgaged Property, as contemplated in Section 3.11. The Servicer shall be
      responsible for all other costs and expenses incurred by it in any such
      proceedings; provided, however, that it shall be entitled to reimbursement
      thereof from the related property, as contemplated in
      Section 3.11.

    
      
        
        

      

      
        -74-

        
          

        

      

      
        
        

      

    

    

    The
      proceeds of any liquidation or REO Disposition, as well as any recovery
      resulting from a partial collection of Insurance Proceeds, Condemnation
      Proceeds, Liquidation Proceeds or Subsequent Recoveries or any income from
      an
      REO Property, will be applied in the following order of priority: first,
      to
      reimburse the Servicer or any Subservicer for any related unreimbursed Servicing
      Advances, pursuant to Section 3.11 or 3.17; second,
      to
      reimburse the Servicer for any related unreimbursed P&I Advances, pursuant
      to Section 3.11; third,
      to
      accrued and unpaid interest on the Mortgage Loan or REO Imputed Interest, at
      the
      Mortgage Rate, to the date of the liquidation or REO Disposition, or to the
      Due
      Date prior to the Remittance Date on which such amounts are to be distributed
      if
      not in connection with a liquidation or REO Disposition; and fourth,
      as a
      recovery of principal of the Mortgage Loan. If the amount of the recovery so
      allocated to interest is less than a full recovery thereof, that amount will
      be
      allocated as follows: first,
      to
      unpaid Servicing Fees; and second,
      as
      interest at the Mortgage Rate (net of the Servicing Fee Rate). The portion
      of
      the recovery so allocated to unpaid Servicing Fees shall be reimbursed to the
      Servicer or any Subservicer pursuant to Section 3.11 or 3.17. The portions
      of the recovery so allocated to interest at the Mortgage Rate (net of the
      Servicing Fee Rate) and to principal of the Mortgage Loan shall be applied
      as
      follows: first,
      to
      reimburse the Servicer or any Subservicer for any related unreimbursed Servicing
      Advances in accordance with Section 3.11 or 3.17, and second,
      to the
      Securities Administrator in accordance with the provisions of Section 4.02,
      subject to paragraph (e) of Section 3.17 with respect to certain
      excess recoveries from an REO Disposition.

    

    Notwithstanding
      anything to the contrary contained herein, in connection with a foreclosure
      or
      acceptance of a deed in lieu of foreclosure, in the event the Servicer has
      received actual notice of, or has actual knowledge of the presence of, hazardous
      or toxic substances or wastes on the related Mortgaged Property, or if the
      Trustee or the Master Servicer otherwise requests, the Servicer shall cause
      an
      environmental inspection or review of such Mortgaged Property to be conducted
      by
      a qualified inspector. Upon completion of the inspection, the Servicer shall
      promptly provide the Trustee, the Master Servicer and the Depositor with a
      written report of the environmental inspection.

    

    After
      reviewing the environmental inspection report, the Servicer shall determine
      consistent with Accepted Servicing Practices how to proceed with respect to
      the
      Mortgaged Property. In the event (a) the environmental inspection report
      indicates that the Mortgaged Property is contaminated by hazardous or toxic
      substances or wastes and (b) the Servicer proceeds with foreclosure or
      acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed
      for all reasonable costs associated with such foreclosure or acceptance of
      a
      deed in lieu of foreclosure and any related environmental clean-up costs, as
      applicable, from the related Liquidation Proceeds, or if the Liquidation
      Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall
      be
      entitled to be reimbursed from amounts in the Collection Account pursuant to
      Section 3.11. In the event the Servicer does not proceed with foreclosure
      or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed
      from general collections for all Servicing Advances made with respect to the
      related Mortgaged Property from the Collection Account pursuant to
      Section 3.11. The Trustee shall not be responsible for any determination
      made by the Servicer pursuant to this paragraph or otherwise.

    
      
        
        

      

      
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    Section
      3.16 Release
      of Mortgage Files.
      (a)  Upon the payment in full of any Mortgage Loan, or the receipt by
      the Servicer of a notification that payment in full shall be escrowed in a
      manner customary for such purposes, the Servicer will, within five
      (5) Business Days of the payment in full, notify the Custodian by a
      certification (which certification shall include a statement to the effect
      that
      all amounts received or to be received in connection with such payment which
      are
      required to be deposited in the Collection Account pursuant to Section 3.10
      have been or will be so deposited) of a Servicing Officer and shall request
      delivery to it of the Custodial File by submitting a Request for Release to
      the
      Custodian, which Request for Release may be in an electronic format in a form
      acceptable to the Custodian. Upon receipt of such certification and Request
      for
      Release, the Custodian shall promptly release the related Custodial File to
      the
      Servicer within five (5) Business Days. No expenses incurred in connection
      with
      any instrument of satisfaction or deed of reconveyance shall be chargeable
      to
      the Collection Account. 

    

    (b) From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan, including, for this purpose, collection under any Insurance Policy
      relating to the Mortgage Loans, the Custodian shall, upon request of the
      Servicer and delivery to the Custodian of a Request for Release, which Request
      for Release may be in an electronic format in a form acceptable to the
      Custodian, release the related Custodial File to the Servicer, and the Custodian
      shall, at the direction of the Servicer, execute such documents as shall be
      necessary to the prosecution of any such proceedings and the Servicer shall
      retain the Mortgage File in trust for the benefit of the Trustee. Such Request
      for Release shall obligate the Servicer to return each and every document
      previously requested from the Custodial File to the Custodian when the need
      therefor by the Servicer no longer exists, unless the Mortgage Loan has been
      liquidated and the Liquidation Proceeds relating to the Mortgage Loan have
      been
      deposited in the Collection Account or the Mortgage File or such document has
      been delivered to an attorney, or to a public trustee or other public official
      as required by law, for purposes of initiating or pursuing legal action or
      other
      proceedings for the foreclosure of the Mortgaged Property either judicially
      or
      non-judicially, and the Servicer has delivered to the Custodian a certificate
      of
      a Servicing Officer certifying as to the name and address of the Person to
      which
      such Mortgage File or such document was delivered and the purpose or purposes
      of
      such delivery. Upon receipt of a certificate of a Servicing Officer stating
      that
      such Mortgage Loan was liquidated and that all amounts received or to be
      received in connection with such liquidation that are required to be deposited
      into the Collection Account have been so deposited, or that such Mortgage Loan
      has become an REO Property, a copy of the Request for Release shall be released
      by the Custodian to the Servicer or its designee.

    

    Upon
      written certification of a Servicing Officer, the Trustee shall execute and
      deliver to the Servicer copies of any court pleadings, requests for trustee’s
      sale or other documents reasonably necessary to the foreclosure or trustee’s
      sale in respect of a Mortgaged Property or to any legal action brought to obtain
      judgment against any Mortgagor on the Mortgage Note or Mortgage or to obtain
      a
      deficiency judgment, or to enforce any other remedies or rights provided by
      the
      Mortgage Note or Mortgage or otherwise available at law or in equity, or shall
      exercise and deliver to the Servicer a power of attorney sufficient to authorize
      the Servicer to execute such documents on its behalf. Each such certification
      shall include a request that such pleadings or documents be executed by the
      Trustee and a statement as to the reason such documents or pleadings are
      required and that the execution and delivery thereof by the Trustee will not
      invalidate or otherwise affect the lien of the Mortgage, except for the
      termination of such a lien upon completion of the foreclosure or trustee’s
      sale.

    
      
        
        

      

      
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    Section
      3.17 Title,
      Conservation and Disposition of REO Property.
      (a)  This Section shall apply only to REO Properties acquired for the
      account of the Trustee and shall not apply to any REO Property relating to
      a
      Mortgage Loan which was purchased or repurchased from the Trustee pursuant
      to
      any provision hereof. In the event that title to any such REO Property is
      acquired, the deed or certificate of sale shall be issued to the Trust, or
      if
      not permitted by law, to Deutsche Bank National Trust Company (or, if
      applicable, the name of the successor Trustee) as Trustee for HSI Asset
      Securitization Corporation Trust 2007-OPT1 Mortgage Pass-Through Certificates,
      Series 2007-OPT1, or to its nominee, for the benefit of the
      Certificateholders.

    

    (b) The
      Servicer shall manage, conserve, protect and operate each REO Property for
      the Trustee solely for the purpose of its prompt disposition and sale. The
      Servicer, either itself or through an agent selected by the Servicer, shall
      manage, conserve, protect and operate the REO Property in the same manner that
      it manages, conserves, protects and operates other foreclosed property for
      its
      own account, and in the same manner that similar property in the same locality
      as the REO Property is managed. The Servicer shall attempt to sell the same
      (and
      may temporarily rent the same for a period not greater than one year, except
      as
      otherwise provided below) on such terms and conditions as the Servicer deems
      to
      be in the best interest of the Trustee on behalf of the Certificateholders.
      The
      Servicer shall notify the Trustee from time to time as to the status of each
      REO
      Property.

    

    (c) The
      Servicer shall segregate and hold all funds collected and received in connection
      with the operation of any REO Property separate and apart from its own funds
      and
      general assets and shall deposit such funds in the Collection
      Account.

    

    (d) The
      Servicer shall deposit net of reimbursement to the Servicer for any related
      outstanding Servicing Advances and unpaid Servicing Fees provided in
      Section 3.11, or cause to be deposited in the Collection Account, in no
      event later than two Business Days after the deposit of such funds into the
      clearing account, all revenues received with respect to the related REO Property
      and shall withdraw therefrom funds necessary for the proper operation,
      management and maintenance of the REO Property.

    

    (e) The
      Servicer, upon an REO Disposition, shall be entitled to reimbursement for any
      related unreimbursed Servicing Advances as well as any unpaid Servicing Fees
      from proceeds received in connection with the REO Disposition, as further
      provided in Section 3.11.

    

    (f) Any
      net
      proceeds from an REO Disposition which are in excess of the unpaid principal
      balance of the related Mortgage Loan plus all unpaid REO Imputed Interest
      thereon through the date of the REO Disposition shall be retained by the
      Servicer as additional servicing compensation.

    
      
        
        

      

      
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    (g) The
      Servicer shall use Accepted Servicing Practices to sell, or cause the
      Subservicer to sell, in accordance with Accepted Servicing Practices, any REO
      Property as soon as possible, but in no event later than the conclusion of
      the
      third calendar year beginning after the year of its acquisition by the REMIC
      1
      unless (i) the Servicer applies for an extension of such period from the
      Internal Revenue Service pursuant to the REMIC Provisions and Code
      Section 856(e)(3), in which event such REO Property shall be sold within
      the applicable extension period, or (ii) the Servicer obtains for the
      Trustee an Opinion of Counsel, addressed to the Depositor, the Trustee and
      the
      Servicer, to the effect that the holding by the REMIC of such REO Property
      subsequent to such period will not result in the imposition of taxes on
“prohibited transactions” as defined in Section 860F of the Code or cause
      any REMIC created under this Agreement to fail to qualify as a REMIC under
      the
      REMIC Provisions or comparable provisions of relevant state laws at any time.
      The Servicer shall manage, conserve, protect and operate each REO Property
      for
      the Trustee solely for the purpose of its prompt disposition and sale in a
      manner which does not cause such REO Property to fail to qualify as “foreclosure
      property” within the meaning of Section 860G(a)(8) or 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 Section 860G(a)(1)
      of the Code. Pursuant to its efforts to sell such REO Property, the Servicer
      shall either itself or through an agent selected by the Servicer protect and
      conserve such REO Property in the same manner and to such extent as is customary
      in the locality where such REO Property is located and may, incident to its
      conservation and protection of the interests of the Trustee on behalf of the
      Certificateholders, rent the same, or any part thereof, as the Servicer deems
      to
      be in the best interest of the Trustee on behalf of the Certificateholders
      for
      the period prior to the sale of such REO Property; provided,
      however,
      that
      any rent received or accrued with respect to such REO Property qualifies as
      “rents from real property” as defined in Section 856(d) of the
      Code.

    

    Section
      3.18 Notification
      of Adjustments.
      With
      respect to each Adjustable Rate Mortgage Loan, the Servicer shall adjust the
      Mortgage Rate on the related Adjustment Date and shall adjust the Scheduled
      Payment on the related mortgage payment adjustment date, if applicable, in
      compliance with the requirements of applicable law and the related Mortgage
      and
      Mortgage Note. In the event that an Index becomes unavailable or otherwise
      unpublished, the Servicer shall select a comparable alternative index over
      which
      it has no direct control and which is readily verifiable. The Servicer shall
      execute and deliver any and all necessary notices required under applicable
      law
      and the terms of the related Mortgage Note and Mortgage regarding the Mortgage
      Rate and Scheduled Payment adjustments. The Servicer shall promptly, upon
      written request therefor, deliver to the Master Servicer such notifications
      and
      any additional applicable data regarding such adjustments and the methods used
      to calculate and implement such adjustments. Upon the discovery by the Servicer
      or the receipt of notice from the Master Servicer that the Servicer has failed
      to adjust a Mortgage Rate or Scheduled Payment in accordance with the terms
      of
      the related Mortgage Note, the Servicer shall deposit in the Collection Account
      from its own funds the amount of any interest loss caused as such interest
      loss
      occurs.

    
      
        
        

      

      
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    Section
      3.19 Access
      to Certain Documentation and Information Regarding the Mortgage
      Loans.
      The
      Servicer shall provide, or cause the Subservicer to provide, to the Depositor,
      the Trustee, the OTS or the FDIC and the examiners and supervisory agents
      thereof, access to the documentation regarding the Mortgage Loans in its
      possession required by applicable regulations of the OTS. Such access shall
      be
      afforded without charge, but only upon 10 days (or, if an Event of Default
      has
      occurred and is continuing, 3 Business Days) prior written request and during
      normal business hours at the offices of the Servicer or, if applicable, any
      Subservicer. Nothing in this Section shall derogate from the obligation of
      any
      such party to observe any applicable law prohibiting disclosure of information
      regarding the Mortgagors and the failure of any such party to provide access
      as
      provided in this Section as a result of such obligation shall not
      constitute a breach of this Section.

    

    Nothing
      in this Section 3.19 shall require the Servicer to collect, create, collate
      or
      otherwise generate any information that it does not generate in its usual course
      of business. The Servicer shall not be required to make copies of or to ship
      documents to any Person who is not a party to this Agreement, and then only
      if
      provisions have been made for the reimbursement of the costs
      thereof.

    

    Section
      3.20 Documents,
      Records and Funds in Possession of the Servicer to Be Held for the
      Trustee.
      Not
      later than thirty days after each Distribution Date, the Servicer shall
      forward to the Trustee, the Master Servicer and the Securities Administrator
      a
      statement prepared by the Servicer setting forth the status of the Collection
      Account as of the close of business on the last day of the calendar month
      relating to such Distribution Date and showing, for the period covered by such
      statement, the aggregate amount of deposits into and withdrawals from the
      Collection Account of each category of deposit specified in Section 3.10(a)
      and each category of withdrawal specified in Section 3.11. Copies of such
      statement shall be provided by the Securities Administrator to any
      Certificateholder and to any Person identified to the Securities Administrator
      as a prospective transferee of a Certificate, upon the written request and
      at
      the expense of the requesting party, provided such statement is delivered by
      the
      Servicer to the Securities Administrator.

    

    Section
      3.21 Servicing
      Compensation.
      (a)  As compensation for its activities hereunder, the Servicer shall,
      with respect to each Mortgage Loan, be entitled to retain from deposits to
      the
      Collection Account and from Liquidation Proceeds, Condemnation Proceeds,
      Insurance related Proceeds, Subsequent Recoveries and REO Proceeds related
      to
      such Mortgage Loan, the Servicing Fee with respect to each Mortgage Loan (less
      any portion of such amounts retained by any Subservicer). In addition, the
      Servicer shall be entitled to recover unpaid Servicing Fees out of related
      Late
      Collections and as otherwise permitted under Section 3.11. The right to
      receive the Servicing Fee may not be transferred in whole or in part except
      in
      connection with the transfer of all of the Servicer’s responsibilities and
      obligations under this Agreement; provided, however, that the Servicer may
      pay
      from the Servicing Fee any amounts due to a Subservicer pursuant to a
      Subservicing Agreement entered into under Section 3.02.

    

    (b) Additional
      servicing compensation in the form of assumption or modification fees, late
      payment charges, NSF fees, reconveyance fees and other similar fees and charges
      (other than Prepayment Charges) shall be retained by the Servicer only to the
      extent such fees or charges are received by the Servicer. The Servicer shall
      also be entitled pursuant to Section 3.11(a)(iv) to withdraw from the
      Collection Account, as additional servicing compensation, interest or other
      income earned on deposits therein. The Servicer shall also be entitled as
      additional servicing compensation, to interest or other income earned on
      deposits in the Escrow Account (to the extent permitted by law and the related
      Mortgage Loan documents) in accordance with Section 3.12. The Servicer
      shall also be entitled to retain net Prepayment Interest Excesses (to the extent
      not required to offset Prepayment Interest Shortfalls), but only to the extent
      such amounts are received by the Servicer.

    
      
        
        

      

      
        -79-

        
          

        

      

      
        
        

      

    

    

    (c) The
      Servicer shall be required to pay all expenses incurred by it in connection
      with
      its servicing activities hereunder (including payment of premiums for any
      blanket policy insuring against hazard losses pursuant to Section 3.13,
      servicing compensation of the Subservicer to the extent not retained by it
      and
      the fees and expenses of independent accountants and any agents appointed by
      the
      Servicer), and shall not be entitled to reimbursement therefor from the Trust
      Fund except as specifically provided in Section 3.11.

    

    Section
      3.22 Report
      on Assessment of Compliance with Relevant Servicing Criteria.
      On or
      before March 15th
      of each
      calendar year for so long as the Depositor is required to file reports with
      respect to the Trust under the Exchange Act, commencing in March 2008, the
      Servicer, the Master Servicer, the Securities Administrator and the Custodian,
      each at its own expense, shall furnish or otherwise make available, and each
      such party shall cause any Servicing Function Participant engaged by it to
      furnish, each at its own expense, to the Master Servicer, Securities
      Administrator and the Depositor, a report on an assessment of compliance with
      the Relevant Servicing Criteria set forth in Exhibit S that contains (A) a
      statement by such party of its responsibility for assessing compliance with
      the
      Relevant Servicing Criteria, (B) a statement that such party used the Relevant
      Servicing Criteria to assess compliance with the Relevant Servicing Criteria,
      (C) 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 8.12, 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 (D) 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. 

    

    Promptly
      after receipt of each such report on assessment of compliance, (i) the Depositor
      shall review each such report and, if applicable, consult with the Master
      Servicer, the Securities Administrator, the Custodian, the Servicer and any
      Servicing Function Participant engaged by any such party as to the nature of
      any
      material instance of noncompliance with the Relevant Servicing Criteria by
      each
      such party, and (ii) the Master Servicer shall confirm that the assessments,
      taken as a whole, address all of the Servicing Criteria and taken individually
      address the Relevant Servicing Criteria for each party as set forth on Exhibit
      S
      or as set forth in the applicable Servicing Agreement.

    

    The
      Master Servicer shall enforce any obligation of the Servicer (and the Servicer
      shall enforce any obligation of a Servicing Function Participant engaged by
      such
      Servicer) to cause the delivery of such Servicer’s annual report on assessment
      of compliance within the time frame and to the parties indicated
      in this Section 3.22, and in such form and
      substance required by this Agreement. 

    
      
        
        

      

      
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    In
      the
      event the Servicer, the Master Servicer, the Securities Administrator, the
      Custodian or any Servicing Function Participant engaged by any such party is
      terminated, assigns its rights and obligations under, or resigns pursuant to,
      the terms of this Agreement, or any other applicable agreement, as the case
      may
      be, such party shall provide a report on assessment of compliance pursuant
      to
      this Section 3.22, or to such other applicable agreement, for the period of
      time
      in such reporting period prior to such termination, assignment or resignation,
      notwithstanding any such termination, assignment or resignation.

    

    Section
      3.23 Report
      on Attestation of Compliance with Relevant Servicing Criteria. 
      On or
      before March 15th
      of each
      calendar year for so long as the Depositor is required to file reports with
      respect to the Trust under the Exchange Act, commencing in March 2008, the
      Servicer, the Master Servicer, the Securities Administrator and the Custodian,
      each at its own expense, shall cause, and each such party shall cause any
      Servicing Function Participant engaged by it to cause, each at its own expense,
      a registered public accounting firm (which may also render other services to
      the
      Servicer, the Master Servicer, the Securities Administrator, the Custodian
      or
      such other Servicing Function Participants, as the case may be) that is a member
      of the American Institute of Certified Public Accountants to furnish an
      attestation report to the Master Servicer, 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 report why it was unable to express such
      an
      opinion. Such report must be available for general use and not contain
      restricted use language. 

    

    Prior
      to
      executing any Form 10-K, the Master Servicer shall confirm that each assessment
      submitted pursuant to Section 3.22 is coupled with an attestation meeting the
      requirements of this Section and notify the Depositor of any exceptions.

    

    The
      Master Servicer shall enforce any obligation of the Servicer (and the Servicer
      shall enforce any obligation of a Servicing Function Participant engaged by
      such
      Servicer) to cause the delivery of an attestation within the time frame and
      to
      the parties indicated
      in this Section 3.23, and in such form and substance as may be required by
      this
      Agreement.

    

    In
      the
      event the Servicer, the Master Servicer, the Securities Administrator, the
      Custodian or any Servicing Function Participant engaged by any such party,
      is
      terminated, assigns its rights and duties under, or resigns pursuant to the
      terms of, this Agreement or any other applicable agreement, as the case may
      be,
      such party shall cause a registered public accounting firm to provide an
      attestation pursuant to this Section 3.23, or to such other applicable
      agreement, notwithstanding any such termination, assignment or resignation.
      

    

    
      
        
        

      

      
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    Section
      3.24 Annual
      Officer’s Certificates.
      (a) Each
      Form 10-K filed with the Commission shall include a Sarbanes-Oxley Certification
      exactly as set forth in Exhibit L attached hereto, required to be included
      therewith pursuant to the Sarbanes-Oxley Act. The Servicer, the Securities
      Administrator and the Custodian shall, and shall cause any Servicing Function
      Participant engaged by them 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, commencing in March 2008, and otherwise within a reasonable period of
      time
      upon request, a certification (each, a “Back-Up Certification”), in the form
      attached hereto as Exhibit M, 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 facsimile at 469-220-1572. In the event any such party
      or
      any Servicing Function Participant engaged by any such party is terminated
      or
      resigns pursuant to the terms of this Agreement, or any applicable subservicing
      agreement, as the case may be, such party shall provide a Back-Up Certification
      to the Certifying Person pursuant to this Section 3.24 with respect to the
      period of time it was subject to this Agreement or any applicable subservicing
      agreement, as the case may be. Notwithstanding the foregoing, (i) the Securities
      Administrator shall not be required to deliver a Back-Up Certification to the
      Master Servicer 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.

    

    (b) On
      or
      before March 15th
      of each
      calendar year for so long as the Depositor is required to file reports with
      respect to the Trust under the Exchange Act, commencing in March 2008, the
      Servicer and the Master Servicer shall deliver (or otherwise make available)
      (and the Servicer and the Master Servicer shall cause any Servicing Function
      Participant engaged by it to deliver) to the Depositor and the Securities
      Administrator, an Officer’s Certificate substantially in the form of Exhibit U
      stating, as to the signer thereof, that (A) a review of such party’s activities
      during the preceding calendar year or portion thereof and of such party’s
      performance under this Agreement, or such other applicable agreement in the
      case
      of a Servicing Function Participant, has been made under such officer’s
      supervision and (B) to the best of such officer’s knowledge, based on such
      review, such party has fulfilled all its obligations under this Agreement,
      or
      such other applicable agreement in the case of a Servicing Function Participant,
      in all material respects throughout such year or portion thereof, or, if there
      has been a failure to fulfill any such obligation in any material respect,
      specifying each such failure known to such officer and the nature and status
      thereof.

    

    In
      the
      event the Servicer, the Master Servicer or any Servicing Function Participant
      engaged by such party is terminated or resigns pursuant to the terms of this
      Agreement, or any applicable agreement in the case of a Servicing Function
      Participant, as the case may be, such party shall provide an Officer’s
      Certificate covering the portion of the reporting period for which it served
      pursuant to this Section 3.24 or to such applicable agreement, as the case
      may
      be, notwithstanding any such termination, assignment or resignation.

    
      
        
        

      

      
        -82-

        
          

        

      

      
        
        

      

    

    

    The
      Master Servicer shall enforce any obligation of the Servicer (and the Servicer
      shall enforce any obligation of a Servicing Function Participant engaged by
      such
      Servicer) to cause the delivery by the Servicer of such annual Officer’s
      Certificate (in respect of Item 1123 of Regulation AB) within the time
      frame set
      forth
      and to the parties indicated
      in this Section 3.24, and in such form and
      substance as required by this Agreement. 

    

    (c) The
      Servicer shall indemnify and hold harmless the Trustee, the Master Servicer,
      the
      Securities Administrator, the Depositor and their respective officers,
      directors, agents and affiliates from and against any losses, damages,
      penalties, fines, forfeitures, reasonable legal fees and related costs,
      judgments and other costs and expenses arising out of or based upon a breach
      by
      the Servicer or any of its officers, directors, agents or affiliates of its
      obligations under this Section 3.24 or the negligence, bad faith or willful
      misconduct of the Servicer in connection therewith. If the indemnification
      provided for herein is unavailable or insufficient to hold harmless the Trustee,
      the Master Servicer, the Securities Administrator and the Depositor, then the
      Servicer agrees that it shall contribute to the amount paid or payable by the
      Trustee, the Master Servicer, the Securities Administrator, the Depositor or
      their respective officers, directors, agents or affiliates as a result of the
      losses, claims, damages or liabilities of any such party in such proportion
      as
      is appropriate to reflect the relative fault of such party or parties on the
      one
      hand and the Servicer on the other in connection with a breach of the Servicer’s
      obligations under this Section 3.24 or the Servicer’s negligence, bad faith or
      willful misconduct in connection therewith.

    

    Section
      3.25 Master
      Servicer to Act as Servicer.
      (a)  Subject to Section 7.02, in the event that the Servicer
      shall for any reason no longer be the Servicer hereunder (including by reason
      of
      an Event of Default), the Master Servicer or its successor shall thereupon
      assume all of the rights and obligations of the Servicer hereunder arising
      thereafter, except that the Master Servicer shall not be (i) liable for
      losses of the predecessor Servicer pursuant to Section 3.10 or any acts or
      omissions of the predecessor Servicer hereunder, (ii) obligated to
      effectuate repurchases or substitutions of Mortgage Loans hereunder, including
      but not limited to repurchases or substitutions pursuant to Section 2.03,
      (iii) responsible for expenses of the predecessor Servicer pursuant to
      Section 2.03 or (iv) deemed to have made any representations and
      warranties of the Servicer hereunder. Any such assumption shall be subject
      to
      Section 7.02.

    

    (b) Every
      Subservicing Agreement entered into by the Servicer shall contain a provision
      giving the successor servicer the option to terminate such agreement in the
      event a successor servicer is appointed.

    

    (c) If
      the
      Servicer shall for any reason no longer be the Servicer (including by reason
      of
      any Event of Default), the Master Servicer (or any other successor servicer)
      may, at its option, succeed to any rights and obligations of the Servicer under
      any Subservicing Agreement in accordance with the terms thereof; provided,
      that
      the Master Servicer (or any other successor servicer) shall not incur any
      liability or have any obligations in its capacity as successor servicer under
      a
      Subservicing Agreement arising prior to the date of such succession unless
      it
      expressly elects to succeed to the rights and obligations of the Servicer
      thereunder; and the Servicer shall not thereby be relieved of any liability
      or
      obligations under the Subservicing Agreement arising prior to the date of such
      succession.

    
      
        
        

      

      
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    (d) The
      Servicer shall, upon request of the Master Servicer, but at the expense of
      the
      Servicer, deliver to the assuming party all documents and records relating
      to
      each Subservicing Agreement (if any) and the Mortgage Loans then being serviced
      thereunder and an accounting of amounts collected and held by it, and otherwise
      use its best efforts to effect the orderly and efficient transfer of the
      Subservicing Agreement to the assuming party.

    

    Section
      3.26 Compensating
      Interest.
      The
      Servicer shall remit to the Master Servicer on each Remittance Date an amount
      from its own funds equal to the Compensating Interest payable by the Servicer
      for the related Distribution Date.

    

    Section
      3.27 Credit
      Reporting; Gramm-Leach-Bliley Act

    

    .
      (a)  With respect to each Mortgage Loan serviced by it, the Servicer
      agrees to fully furnish, in accordance with the Fair Credit Reporting Act and
      its implementing regulations, accurate and complete information (e.g., favorable
      and unfavorable) on the primary borrower of such Mortgage Loan to Equifax,
      Experian and TransUnion Credit Information Company (three of the credit
      repositories) on a monthly basis.

    

    (b) The
      Servicer shall comply with Title V of the Gramm-Leach-Bliley Act of 1999
      and all applicable regulations promulgated thereunder, relating to the Mortgage
      Loans and the related borrowers and shall provide all required notices
      thereunder.

    

    Section
      3.28 [Reserved].

    

    Section
      3.29 Notifications
      to Parties.
      The
      Servicer shall promptly notify the Trustee, the Securities Administrator, the
      Master Servicer and the Depositor (i) of any legal proceedings pending against
      the Servicer of the type described in Item 1117 (§ 229.1117) of Regulation AB
      and (ii) if the Servicer shall become (but only to the extent not previously
      disclosed to the Trustee, the Securities Administrator, the Master Servicer
      and
      the Depositor) at any time an affiliate of any of the parties listed on Exhibit
      T to this Agreement. If so requested by the Trustee, the Securities
      Administrator, the Master Servicer or the Depositor on any date following the
      date on which information was first provided to the Trustee, the Master
      Servicer, the Securities Administrator and the Depositor, pursuant to the
      preceding sentence, the Servicer shall within five Business Days following
      such
      request, confirm in writing the accuracy of the representations and warranties
      set forth in item number (7) of Schedule II hereto, or, the Servicer shall,
      if
      such a representation and warranty is not accurate as of the date of such
      request, provide reasonable adequate disclosure of the pertinent facts, in
      writing, to the requesting party. 

    

    The
      Servicer shall provide to the Securities Administrator, the Trustee, the Master
      Servicer and the Depositor prompt notice of the occurrence of any of the
      following: (i) any event of default under the terms of this Agreement; (ii)
      any
      merger, consolidation or sale of substantially all of the assets of the
      Servicer; (iii) the Servicer’s engagement of any Subservicer or Subcontractor;
      (iv) any material litigation involving the Servicer; and (v) any affiliation
      or
      other significant relationship between the Servicer and other transaction
      parties.

    

    Section
      3.30 Indemnification.
      Each of
      the Depositor, the Servicer, the Master Servicer, the Securities Administrator,
      the Custodian, the Trustee (only in the case of any failure to deliver any
      information, data or materials required to be included in any Additional Form
      10-D Disclosure, Additional Form 10-K Disclosure or Form 8-K Disclosure
      Information that the Trustee is obligated to provide, and only with respect
      to
      the Depositor, the Master Servicer and the Securities Administrator) and any
      Servicing Function Participant (each, an “Indemnifying Party”) engaged by any
      such party, shall indemnify and hold harmless each other Indemnifying Party,
      and
      each of its directors, officers, employees, agents, and affiliates from and
      against any and all claims, losses, damages, penalties, fines, forfeitures,
      reasonable legal fees and related costs, judgments and other costs and expenses
      arising out of or based upon (a) any breach by such party of any if its
      obligations hereunder, including particularly its obligations to provide any
      annual statement of compliance, annual assessment of compliance with Servicing
      Criteria or attestation report or any information, data or materials required
      to
      be included in any Exchange Act report, (b) any material misstatement or
      omission in any information, data or materials provided by such party pursuant
      to this Agreement including any material misstatement or material omission
      in
      (i) any annual statement of compliance or annual assessment of compliance with
      Servicing Criteria delivered by it, or by any Servicing Function Participant
      engaged by it, pursuant to this Agreement, or (ii) any Additional Form 10-D
      Disclosure, Additional Form 10-K Disclosure or Form 8-K Disclosure Information
      provided by it, or (c) the negligence, bad faith or willful misconduct of such
      indemnifying party in connection with its performance hereunder. If the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless the Servicer, the Master Servicer, the Securities Administrator, the
      Trustee, the Custodian or the Depositor, as the case may be, then each
      Indemnifying Party agrees that it shall contribute to the amount paid or payable
      by the Servicer, the Master Servicer, the Securities Administrator, the Trustee,
      the Custodian or the Depositor, as applicable, as a result of any claims,
      losses, damages or liabilities incurred by such party in such proportion as
      is
      appropriate to reflect the relative fault of the indemnified party on the one
      hand and the indemnifying party on the other. This indemnification shall survive
      the termination of this Agreement or the termination of any party to this
      Agreement.

    
      
        
        

      

      
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    (b) The
      Depositor, the Servicer, the Securities Administrator,
      the
      Custodian
      and the Trustee shall immediately notify the Master Servicer if a claim is
      made
      by a third party with respect to this Agreement or the Mortgage Loans which
      would entitle the Depositor, the Servicer, the Securities
      Administrator,
      the
      Custodian,
      the Trustee or the Trust to indemnification from the Master Servicer, whereupon
      the Master Servicer shall assume the defense of any such claim and pay all
      expenses in connection therewith, including counsel fees, and promptly pay,
      discharge and satisfy any judgment or decree which may be entered against it
      or
      them in respect of such claim. If the Master Servicer and any such indemnified
      party have a conflict of interest with respect to any such claim, the
      indemnified party shall have the right to retain separate counsel.

    

    ARTICLE
      IV

    

    DISTRIBUTIONS
      AND

    ADVANCES
      BY THE SERVICER

    

    Section
      4.01 Advances.
      (a)  The amount of P&I Advances to be made by the Servicer for any
      Remittance Date shall equal, subject to Section 4.01(c), the sum of
      (i) the aggregate amount of Scheduled Payments (with each interest portion
      thereof net of the related Servicing Fee), due during the Due Period immediately
      preceding such Remittance Date in respect of the Mortgage Loans, which Scheduled
      Payments were not received as of the close of business on the related
      Determination Date, plus (ii) with respect to each REO Property, which REO
      Property was acquired during or prior to the related Prepayment Period and
      as to
      which such REO Property an REO Disposition did not occur during the related
      Prepayment Period, an amount equal to the excess, if any, of the Scheduled
      Payments (with each interest portion thereof net of the related Servicing Fee)
      that would have been due on the related Due Date in respect of the related
      Mortgage Loans, over the net income from such REO Property transferred to the
      Collection Account for distribution on such Remittance Date.

    
      
        
        

      

      
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    (b) On
      each
      Remittance Date, the Servicer shall remit in immediately available funds to
      the
      Master Servicer an amount equal to the aggregate amount of P&I Advances, if
      any, to be made in respect of the Mortgage Loans and REO Properties for the
      related Remittance Date either (i) from its own funds or (ii) from the
      Collection Account, to the extent of funds held therein for future distribution
      (in which case, it will cause to be made an appropriate entry in the records
      of
      the Collection Account that Amounts Held for Future Distribution have been,
      as
      permitted by this Section 4.01, used by it in discharge of any such P&I
      Advance) or (iii) in the form of any combination of (i) and
      (ii) aggregating the total amount of P&I Advances to be made by the
      Servicer with respect to the Mortgage Loans and REO Properties. Any Amounts
      Held
      for Future Distribution and so used shall be appropriately reflected in the
      Servicer’s records and replaced by the Servicer by deposit in the Collection
      Account on or before any future Remittance Date to the extent
      required.

    

    (c) The
      obligation of the Servicer to make such P&I Advances is mandatory,
      notwithstanding any other provision of this Agreement but subject to
      (d) below, and, with respect to any Mortgage Loan or REO Property, shall
      continue until a Final Recovery Determination in connection therewith or the
      removal thereof from coverage under this Agreement, except as otherwise provided
      in this Section.

    

    (d) Notwithstanding
      anything herein to the contrary, no P&I Advance or Servicing Advance shall
      be required to be made hereunder by the Servicer if such P&I Advance or
      Servicing Advance would, if made, constitute a Nonrecoverable P&I Advance or
      Nonrecoverable Servicing Advance. The determination by the Servicer that it
      has
      made a Nonrecoverable P&I Advance or a Nonrecoverable Servicing Advance or
      that any proposed P&I Advance or Servicing Advance, if made, would
      constitute a Nonrecoverable P&I Advance or a Nonrecoverable Servicing
      Advance, respectively, shall be evidenced by an Officer’s Certificate of the
      Servicer delivered to the Master Servicer. In addition, the Servicer shall
      not
      be required to advance any Relief Act Interest Shortfalls.

    

    (e) Except
      as
      otherwise provided herein, the Servicer shall be entitled to reimbursement
      pursuant to Section 3.11 for Servicing Advances from recoveries from the
      related Mortgagor or from all Liquidation Proceeds and other payments or
      recoveries (including Insurance Proceeds, Condemnation Proceeds and Subsequent
      Recoveries) with respect to the related Mortgage Loan.

    

    (f) On
      each
      Remittance Date, the Master Servicer shall deposit in the Master Servicing
      Account all funds remitted to it by the Servicer pursuant to Sections 3.11(a)(i)
      and 3.26 and this Section 4.01. On each Master Servicer Remittance Date, the
      Securities Adminstrator shall deposit in the Distribution Account all funds
      remitted to it by the Master Servicer pursuant to this Agreement. The Securities
      Administrator may retain or withdraw from the Distribution Account, (i) amounts
      necessary to reimburse the Servicer for any previously unreimbursed Advances
      and
      any Advances the Servicer deems to be nonrecoverable from the related Mortgage
      Loan proceeds, (ii) amounts necessary to reimburse the Master Servicer for
      any
      previously unreimbursed Advances and any Advances the Master Servicer deems
      to
      be nonrecoverable from the related Mortgage Loan proceeds, (iii) an amount
      to
      indemnify the Master Servicer or the Servicer for amounts due in accordance
      with
      this Agreement, (iv) all amounts representing Prepayment Charges (payable to
      the
      Class P Certificateholders), (v) to reimburse the Master Servicer, the
      Securities Administrator, the Servicer or the Trustee, as the case may be,
      for
      expenses reasonably incurred in respect of any breach or defect giving rise
      to
      the repurchase obligation of the Originator or the Sponsor under this Agreement
      that were included in the Repurchase Price of the Mortgage Loan, including
      any
      expenses arising out of the enforcement of the repurchase obligation, to the
      extent not otherwise paid pursuant to the terms hereof and (vi) any other
      amounts that each of the Depositor, the Trustee, the Master Servicer and the
      Securities Administrator is entitled to receive hereunder for reimbursement,
      indemnification or otherwise.

    
      
        
        

      

      
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    Section
      4.02 Priorities
      of Distribution.
      (a)  On each Distribution Date (or, in the case of deposits into the
      Supplemental Interest Trust, on the Derivative Payment Date), the Securities
      Administrator shall make the disbursements and transfers from amounts then
      on
      deposit in the Distribution Account and from amounts that are available for
      payment to the Swap Counterparty, and shall allocate such amounts to the
      interests issued in respect of each REMIC created pursuant to this Agreement
      and
      shall distribute such amounts in the following order of priority and to the
      extent of the Available Funds remaining:

    

    (i) to
      the
      Supplemental Interest Trust and the holders of each Class of LIBOR
      Certificates in the following order of priority:

    

    (A) from
      the
      Interest Remittance Amount related to both Loan Groups, for deposit into the
      Supplemental Interest Trust Account, the amount of any Net Derivative Payment
      or
      Swap Termination Payment (other than a Swap Termination Payment resulting from
      a
      Swap Counterparty Trigger Event) owed to the Derivative Counterparty, including
      any such amounts remaining unpaid from previous Distribution Dates;

    

    (B) concurrently:

    

    (1)
      from
      the remaining Interest Remittance Amount related to the Group I Mortgage Loans,
      to the Class I-A Certificates, the related Senior Interest Payment Amount for
      such Class of Certificates on such Distribution Date; and 

    

    (2)
      from
      the remaining Interest Remittance Amount related to the Group II Mortgage Loans,
      to the Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4 Certificates,
      pro
      rata,
      based
      on the amounts distributable under this clause (i)(B)(2), the related Senior
      Interest Payment Amount for each such Class of Certificates on such Distribution
      Date;

    
      
        
        

      

      
        -87-

        
          

        

      

      
        
        

      

    

    

    provided, that,
      if the
      Interest Remittance Amount for either Loan Group is insufficient to make the
      related payments set forth in clauses (i)(B)(1) or (i)(B)(2) above, any Interest
      Remittance Amount relating to the other Loan Group remaining after payment
      of
      the Senior Interest Payment Amount to the related Certificate Group will be
      available to cover that shortfall, such amounts to be allocated to those Classes
      experiencing such shortfall on a pro
      rata
      basis in
      proportion to the amounts of such shortfall; and

    

    (C) from
      any
      remaining Interest Remittance Amount after taking into account the distributions
      made under clauses (i)(A) and (i)(B) above, sequentially, to each Class of
      Class
      M Certificates, in ascending order by numerical Class designation, the Interest
      Payment Amount for such Class and such Distribution Date;

    

    (ii) (A)  on
      each Distribution Date (or, in the case of deposits into the Supplemental
      Interest Trust, on the Derivative Payment Date) (1) before the Stepdown
      Date or (2) with respect to which a Trigger Event is in effect, to the
      Supplemental Interest Trust and to the holders of the Class or Classes of
      LIBOR Certificates then entitled to distributions of principal as set forth
      below, from amounts remaining on deposit in the Distribution Account after
      making distributions pursuant to paragraph (a)(i) of this Section 4.02, an
      amount equal to, in the aggregate, the Principal Payment Amount, in the
      following amounts and order of priority:

    

    (a) for
      deposit into the Supplemental Interest Trust Account, any Net Derivative Payment
      or Swap Termination Payment (other than a Swap Termination Payment resulting
      from a Swap Counterparty Trigger Event) owed to the Derivative Counterparty
      to
      the extent unpaid pursuant to clause (a)(i)(A) of this Section
      4.02;

    

    (b) concurrently,
      (1) to the Class I-A Certificates, the Group I Principal Payment Amount, until
      the Class Certificate Balance of the Class I-A Certificates is reduced to zero
      and (2) to the Group II Certificates, the Group II Principal Payment Amount,
      until their respective Class Certificate Balances are reduced to zero, allocated
      in each case among such Classes of a Certificate Group as set forth in Section
      4.02(c);

    

    (c) sequentially,
      to each Class of Class M Certificates, in ascending order by numerical
      Class designation, until their respective Class Certificate Balances are
      reduced to zero; and

    

    (B) on
      each
      Distribution Date (or, in the case of deposits into the Supplemental Interest
      Trust, on the Derivative Payment Date) on and after the Stepdown Date and as
      long as a Trigger Event is not in effect, to the Supplemental Interest Trust
      and
      to the holders of the Class or Classes of LIBOR Certificates then entitled
      to distributions of principal, from amounts remaining on deposit in the
      Distribution Account after making distributions pursuant to paragraph (a)(i)
      of
      this Section 4.02, an amount equal to, in the aggregate, the Principal Payment
      Amount, in the following amounts and order of priority:

    
      
        
        

      

      
        -88-

        
          

        

      

      
        
        

      

    

    

    (a) for
      deposit into the Supplemental Interest Trust Account, any Net Derivative Payment
      or Swap Termination Payment (other than a Swap Termination Payment resulting
      from a Swap Counterparty Trigger Event) owed to the Derivative Counterparty
      to
      the extent unpaid pursuant to clause (a)(i)(A) of this Section
      4.02;

    

    (b) concurrently
      (1) to the Class I-A Certificates, the Group I Senior Principal Payment Amount,
      until the Class Certificate Balance of the Class I-A Certificates is reduced
      to
      zero and (2) to the Group II Certificates, the Group II Senior Principal Payment
      Amount, until their respective Class Certificate Balances are reduced to zero,
      allocated in each case among such Classes of a Certificate Group as described
      in
      Section 4.02(c);

    

    (c) sequentially,
      to each Class of Class M Certificates, in the order set forth in the
      definition of Class M Principal Payment Amount, the Class M Principal
      Payment Amount for the related Class of Class M certificates, until their
      respective Class Certificate Balances are reduced to zero;

    

    (iii) any
      amounts remaining after the distributions in paragraphs (i) and (ii) of
      this Section 4.02(a), plus, as specifically indicated below, from amounts on
      deposit in the Excess Reserve Fund Account, shall be distributed in the
      following order of priority:

    

    (A) to
      the
      Class A Certificates, any Senior Interest Payment Amount not paid pursuant
      to
      clause (a)(i)(B) of this Section 4.02 allocated pro
      rata
      among
      such Classes in proportion to the amount of the unpaid Senior Interest Payment
      Amount for such Classes;

    

    (B) sequentially,
      to the holders of the Class M Certificates, in ascending order by numerical
      Class designation, first,
      any
      Interest Payment Amount for any such Class not paid for such Distribution Date
      pursuant to clause (a)(i)(C) of this Section 4.02, second,
      any
      Interest Carry Forward Amount for any such Class, and third,
      any
      Unpaid Realized Loss Amount for any such Class;

    

    (C) to
      the
      Excess Reserve Fund Account, the amount of any Basis Risk Payment for such
      Distribution Date;

    

    (D) from
      amounts on deposit in the Excess Reserve Fund Account with respect to such
      Distribution Date, an amount equal to any unpaid Basis Risk Carryover Amount
      with respect to each Class of LIBOR Certificates for such Distribution Date,
      allocated in the same order and priority as set forth in clauses (a)(i)(B)
      and
      (a)(i)(C) of this Section 4.02;

    

    (E) to
      the
      Credit Risk Manager, the Credit Risk Manager Fee;

    
      
        
        

      

      
        -89-

        
          

        

      

      
        
        

      

    

    

    (F) On
      the
      Distribution Date occurring in December 2009 (or the next succeeding
      Distribution Date on which sufficient funds are available in the Distribution
      Account to make such distributions to the Class P Certificates), $100 to the
      Class P Certificates in payment of its Class P Principal Amount;

    

    (G) to
      the
      Swap Counterparty, any Swap Termination Payment resulting from a Swap
      Counterparty Trigger Event;

    

    (H) to
      the
      holders of the Class X Certificates, the remainder of the Class X
      Distributable Amount not distributed pursuant to Sections 4.02(a)(iii)(A)
      through (G); and

    

    (I) to
      the
      holders of the Class R Certificates, any remaining amount;

    

    If
      on any
      Distribution Date, as a result of the foregoing allocation rules, any
      Class of Class A Certificates does not receive in full the related
      Senior Interest Payment Amount, then such shortfall will be allocated to the
      Holders of such Class, with interest thereon, on future Distribution Dates,
      as
      Interest Carry Forward Amounts, subject to the priorities described
      above.

    

    (b) On
      each
      Distribution Date, prior to any distributions on any other Class of
      Certificates, all amounts representing Prepayment Charges from the Mortgage
      Loans received during the related Prepayment Period shall be distributed by
      the
      Securities Administrator to the holders of the Class P
      Certificates.

    

    (c) All
      principal distributions to the holders of the Class A Certificates on any
      Distribution Date prior to the Stepdown Date will be allocated concurrently
      to
      (i) the Group I Certificates and (ii) the Group II Certificates based on the
      Group Principal Allocation Percentage for the Group I Certificates and the
      Group
      II Certificates, as applicable, for that Distribution Date. On or after the
      Stepdown Date, as long as no Trigger Event is in effect, principal distributions
      to the holders of the Certificates of either Certificate Group will be
      determined based on the Group I Senior Principal Payment Amount or Group II
      Senior Principal Payment Amount, as applicable. However, if the Class
      Certificate Balances of the Certificates in either Certificate Group are reduced
      to zero before the Stepdown Date, then the remaining amount of principal
      distributions distributable to the Certificates of the retired Certificate
      Group
      on that Distribution Date, and on all subsequent Distribution Dates, will be
      distributed to the holders of the Certificates in the other Certificate Group
      remaining outstanding, in accordance with the principal distribution priorities
      described in Section 4.02(a)(ii)(A)(b) for such Certificate Group and this
      Section 4.02(c). If the Class Certificate Balances of the Certificates in either
      Certificate Group are reduced to zero on or after the Stepdown Date, then the
      remaining Principal Payment Amount distributable to the Certificates of the
      retired Certificate Group on that Distribution Date, and all subsequent
      Distribution Dates, will be distributed to the holders of the Certificates
      of
      the Certificate Group remaining outstanding, in accordance with the priorities
      described in Section 4.02(a)(ii)(B)(b) for such Certificate Group and this
      Section 4.02(c), except that the remaining Certificate Group’s Senior Principal
      Payment Amount will be computed without regard to that Certificate Group’s
      Principal Payment Amount.

    
      
        
        

      

      
        -90-

        
          

        

      

      
        
        

      

    

    

    Any
      principal distributions allocated to the Group II Certificates will be allocated
      sequentially as follows:

    

    (i) to
      the
      Class II-A-1 Certificates, until the Class Certificate Balance of such Class
      has
      been reduced to zero;

    

    (ii) 
      to the
      Class II-A-2 Certificates, until the Class Certificate Balance of such Class
      has
      been reduced to zero;

    

    (iii) to
      the
      Class II-A-3 Certificates, until the Class Certificate Balance of such Class
      has
      been reduced to zero; and

    

    (iv) to
      the
      Class II-A-4 Certificates, until the Class Certificate Balance of such Class
      has
      been reduced to zero.

    

    Notwithstanding
      the above paragraph, on and after the Distribution Date on which the aggregate
      Class Certificate Balances of the Class M Certificates and the
      Overcollateralization Amount have been reduced to zero, any principal
      distributions allocated to the Group II Certificates are required to be
      allocated pro
      rata
      among
      the Classes of Group II Certificates, based upon their respective Class
      Certificate Balances.

    

    (d) On
      any
      Distribution Date, any Relief Act Shortfalls and Net Prepayment Interest
      Shortfalls for such Distribution Date shall be allocated by the Securities
      Administrator as a reduction in the following order:

    

    (i) First,
      to the
      amount of interest payable to the Class X Certificates; and

    

    (ii) Second,
      pro
      rata,
      as a
      reduction of the Interest Payment Amount for the Class A and Class M
      Certificates, based on the amount of interest to which such Classes would
      otherwise be entitled.

    

    (e) On
      any
      Distribution Date (or any Derivative Payment Date, as applicable), the
      Securities Administrator shall distribute any Swap Amount and Cap Amount for
      such date as follows:

    

    (i) to
      the
      Derivative Counterparty, any Net Derivative Payment owed to the Derivative
      Counterparty pursuant to the Swap Agreement for such Derivative Payment Date
      to
      the extent not previously paid pursuant to Sections 4.02(a)(i)(A),
      4.02(a)(ii)(A) or 4.02(a)(ii)(B);

    

    (ii) to
      the
      Swap Counterparty, any Swap Termination Payment not resulting from a Swap
      Counterparty Trigger Event owed to the Swap Counterparty pursuant to the Swap
      Agreement for such Derivative Payment Date;

    

    (iii) to
      the
      extent not paid and in the order of priority provided in clauses (a)(i)(B)
      and
      (a)(i)(C) of this Section 4.02, to the Class A Certificates any Senior Interest
      Payment Amounts, and to the Class M Certificates, in ascending order by
      numerical class designation, any Interest Payment Amounts;

    
      
        
        

      

      
        -91-

        
          

        

      

      
        
        

      

    

    

    (iv) to
      the
      Class A Certificates and the Class M Certificates in the order of priority
      set
      forth in clauses (a)(ii)(A)(b), (a)(ii)(A)(c), (a)(ii)(B)(b) and (a)(ii)(B)(c)
      of this Section 4.02, an amount necessary to maintain the Overcollateralization
      Target Amount for such Distribution Date after giving effect to distributions
      pursuant to such clauses;

    

    (v) to
      the
      extent not paid pursuant to clause (a)(iii)(B) of this Section 4.02,
      sequentially, to the each Class of Class M Certificates, in ascending order
      by
      numerical Class designation, first,
      any
      Interest Carry Forward Amount for that Class, and second,
      any
      Unpaid Realized Loss Amount for that Class;

    

    (vi) to
      the
      extent not paid pursuant to clause (a)(iii)(C) of this Section 4.02, to the
      Excess Reserve Fund Account, the amount of any Basis Risk Payment for such
      Distribution Date;

    

    (vii) to
      the
      extent not paid pursuant to clause (a)(iii)(D) of this Section 4.02, to the
      LIBOR Certificates, any remaining unpaid Basis Risk Carryover Amount with
      respect to such Certificates for that Distribution Date, allocated in the same
      order and priority as set forth in such clause;

    

    (viii) to
      the
      extent not paid pursuant to clause (a)(iii)(E) of this Section 4.02, to the
      Credit Risk Manager, the Credit Risk Manager Fee;

    

    (ix) if
      applicable, to the Swap Termination Receipts Account or Cap Termination Receipts
      Account for application to the purchase of a replacement swap agreement or
      replacement cap agreement pursuant to Section 4.08;

    

    (x) to
      the
      extent not paid pursuant to clause (a)(iii)(G) of this Section 4.02, to the
      Swap
      Counterparty, any Swap Termination Payment resulting from a Swap Counterparty
      Trigger Event; and

    

    (xi) to
      the
      extent not paid pursuant to clause (a)(iii)(I) of this Section 4.02, to the
      holders of the Class X Certificates, the remainder of the Class X
      Distributable Amount.

    

    With
      respect to each Distribution Date, the sum of all amounts distributed pursuant
      to priorities (e)(iv) and (e)(v) second
      of this
      Section 4.02(e) cannot exceed the amount of cumulative Realized Losses incurred
      up to such Distribution Date minus any distributions made on previous
      Distribution Dates pursuant to such priorities.

    

    Section
      4.03 Monthly
      Statements to Certificateholders.
      (a)  Not
      later than each Distribution Date, the Securities Administrator shall make
      available to each Certificateholder, the Master Servicer, the Servicer, the
      Credit Risk Manager, the Depositor, the Trustee, the Derivative Counterparty
      and
      each Rating Agency a statement, based on information provided to the Securities
      Administrator by the Master Servicer and the Derivative Counterparty and to
      the
      Master Servicer by the Servicer, setting forth with respect to the related
      distribution:

    
      
        
        

      

      
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    (i) the
      amount thereof allocable to principal, separately identifying the aggregate
      amount of any Principal Prepayments, Liquidation Proceeds and Subsequent
      Recoveries;

    

    (ii) the
      amount thereof allocable to interest, any Interest Carry Forward Amounts
      included in such distribution and any remaining Interest Carry Forward Amounts
      after giving effect to such distribution, any Basis Risk Carryover Amount for
      such Distribution Date and the amount of all Basis Risk Carryover Amount covered
      by withdrawals from the Excess Reserve Fund Account on such Distribution
      Date;

    

    (iii) if
      the
      distribution to the Holders of such Class of 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, including any Basis Risk Carryover Amount
      not
      covered by amounts in the Excess Reserve Fund Account;

    

    (iv) the
      Class Certificate Balance of each Class of Certificates after giving
      effect to the distribution of principal on such Distribution Date;

    

    (v) the
      Pool
      Stated Principal Balance for the following Distribution Date;

    

    (vi) the
      amount of the Expense Fees (in the aggregate and separately stated) paid to
      or
      retained by the Servicer and any Subservicer with respect to such Distribution
      Date;

    

    (vii) the
      Interest Rate for each such Class of Certificates with respect to such
      Distribution Date;

    

    (viii) the
      amount of P&I Advances included in the distribution on such Distribution
      Date and the aggregate amount of P&I Advances outstanding as of the close of
      business on the Determination Date immediately preceding such Distribution
      Date;

    

    (ix) by
      Loan
      Group and in the aggregate, the number and aggregate outstanding principal
      balances of Mortgage Loans (except those Mortgage Loans that are liquidated
      as
      of the end of the related Prepayment Period) (1) as to which the Scheduled
      Payment is delinquent 31 to 60 days, 61 to 90 days and 91 or
      more days, (2) that have become REO Property, (3) that are in
      foreclosure and (4) that are in bankruptcy, in each case as of the close of
      business on the last Business Day of the immediately preceding
      month;

    

    (x) by
      Loan
      Group and in the aggregate, with respect to Mortgage Loans that became REO
      Properties during the preceding calendar month, the number and the aggregate
      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 thereof;

    
      
        
        

      

      
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    (xi) by
      Loan
      Group and in the aggregate, the total number and aggregate principal balance
      of
      any REO Properties as of the close of business on the Determination Date
      preceding such Distribution Date;

    

    (xii) whether
      a
      Trigger Event has occurred and is continuing;

    

    (xii) the
      amount on deposit in the Excess Reserve Fund Account (after giving effect to
      distributions on such Distribution Date);

    

    (xiv) in
      the
      aggregate and for each Class of Certificates, the aggregate amount of
      Applied Realized Loss Amounts incurred during the preceding calendar month
      and
      aggregate Applied Realized Loss Amounts through such Distribution
      Date;

    

    (xv) the
      amount of any Net Monthly Excess Cash Flow on such Distribution Date and the
      allocation thereof to the Certificateholders with respect to Applied Realized
      Loss Amounts and Interest Carry Forward Amounts;

    

    (xvi) the
      Overcollateralization Amount and Overcollateralization Target
      Amount;

    

    (xvii) Prepayment
      Charges collected by the Servicer;

    

    (xviii) the
      Cumulative Loss Percentage and the Rolling Three Month Delinquency
      Rate;

    

    (xix) the
      amount of Credit Risk Management Fees paid during the Due Period to which such
      Distribution Date relates; and

    

    (xxii) the
      amount of any Net Derivative Payment made to the Supplemental Interest Trust
      pursuant to Section 4.02, any Net Derivative Payment made to the Derivative
      Counterparty pursuant to Section 4.02, any Swap Termination Payment or Cap
      Termination Payment made to the Supplemental Interest Trust pursuant to Section
      4.02 and any Swap Termination Payment made to the Swap Counterparty pursuant
      to
      Section 4.02.

    

    (b) For
      purposes of preparing the Monthly Statement, delinquencies shall be determined
      and reported by the Master Servicer based on the so-called “OTS” methodology
      irrespective of the method for determining delinquencies utilized by the
      Servicer on mortgage loans similar to the Mortgage Loans. By way of example,
      a
      Mortgage Loan would be delinquent with respect to a Scheduled Payment due on
      a
      Due Date if such Scheduled 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 Scheduled Payment if such Scheduled
      Payment were not made by the close of business on the Mortgage Loan’s second
      succeeding Due Date. 

    

    (c) The
      Securities Administrator’s responsibility for making available the above
      statement to the Certificateholders, each Rating Agency, the Master Servicer,
      the Servicer, the Trustee and the Depositor is limited to the availability,
      timeliness and accuracy of the information derived from the Master Servicer
      and
      the Servicer. The Securities Administrator will provide the above statement
      via
      the Securities Administrator’s internet website. The Securities Administrator’s
      website will initially be located at https://www.sf.citidirect.com
      and
      assistance in using the website can be obtained by calling the Securities
      Administrator’s customer service desk at 1-800-422-2066. Parties that are unable
      to use the above distribution method are entitled to have a paper copy mailed
      to
      them via first Class mail by notifying the Securities Administrator at Citibank,
      N.A., 388 Greenwich Street, 14th
      Floor,
      New York, New York 10013, Attention: Structured Finance Agency and Trust -
      HASCO
      2007-OPT1. The Securities Administrator shall have the right to change the
      manner in which the above statement is distributed in order to make such
      distribution more convenient and/or more accessible, and the Securities
      Administrator shall provide timely and adequate notification to the
      Certificateholders and the parties hereto regarding any such changes. A paper
      copy of the statement will also be made available upon written
      request.

    
      
        
        

      

      
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    (d) Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall, upon written request, cause to be furnished to each Person
      who at any time during the calendar year was a Certificateholder, a statement
      containing the information set forth in clauses (a)(i), (a)(ii) and (a)(vi)
      of this Section 4.03 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 have
      previously been provided by the Securities Administrator pursuant to any
      requirements of the Code as from time to time in effect.

    

    On
      the
      10th day of each calendar month (or, if such 10th day is not a Business Day,
      then on the next succeeding Business Day), the Servicer shall furnish to the
      Master Servicer (i) a monthly delinquency report in a format mutually agreed
      to
      between the Servicer and the Master Servicer and (ii) a realized loss report
      in
      a format mutually agreed to between the Servicer and the Master Servicer
      relating to the period ending on the last day of the preceding calendar month
      on
      a magnetic tape or other similar media reasonably acceptable to the Master
      Servicer. No later than two Business Days after the fifteenth day of each
      calendar month, the Servicer shall furnish to the Master Servicer (i) a monthly
      remittance advice in a format mutually agreed to between the Servicer and the
      Master Servicer, (ii) a monthly report containing such information regarding
      prepayments of Mortgage Loans during the applicable Prepayment Period and in
      a
      format as mutually agreed to between the Servicer and the Master Servicer and
      (iii) notice of the occurrence of any material modifications, extensions or
      waivers of terms, fees, penalties or payments relating to the Mortgage Loans
      during the related Prepayment Period or that have cumulatively become material
      over time (see Item 1121(a)(11) of Regulation AB) along with all information,
      data, and materials related thereto as may be required to be included in the
      related Distribution Report filed with the Commission on Form 10-D.

    

    The
      monthly remittance advice referred to in the preceding paragraph shall also
      be
      accompanied by a supplemental report provided to the Master Servicer which
      includes on an aggregate basis for the previous calendar month (i) the amount
      of
      any insurance claims filed, (ii) the amount of any claim payments made and
      (iii)
      the amount of claims denied or curtailed. The Master Servicer will convert
      such
      data into a format acceptable to the Securities Administrator and provide
      monthly reports to the Securities Administrator pursuant to this
      Agreement.

    
      
        
        

      

      
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    Section
      4.04 Certain
      Matters Relating to the Determination of LIBOR.
      LIBOR
      shall be calculated by the Securities Administrator in accordance with the
      definition of LIBOR. The Interest Rate for each Class of LIBOR Certificates
      for each Interest Accrual Period shall be determined by the Securities
      Administrator on each LIBOR Determination Date so long as the LIBOR Certificates
      are outstanding on the basis of LIBOR and the respective formula appearing
      in
      footnotes corresponding to the LIBOR Certificates in the table relating to
      the
      Certificates in the Preliminary Statement. The establishment of LIBOR by the
      Securities Administrator and the Securities Administrator’s subsequent
      calculation of the Certificate Interest Rate applicable to the LIBOR
      Certificates for the relevant Interest Accrual Period, in the absence of
      manifest error, will be final and binding.

    

    Section
      4.05 Allocation
      of Applied Realized Loss Amounts.
      Any
      Applied Realized Loss Amounts shall be allocated by the Securities Administrator
      to the most junior Class of Class M Certificates then outstanding in
      reduction of the Class Certificate Balance thereof.

    

    Section
      4.06 Supplemental
      Interest Trust. (a)
      A
      separate trust is hereby established (the “Supplemental Interest Trust”), the
      corpus of which shall be held by the trustee of the Supplemental Interest Trust
      for the benefit of the Class X Certificateholders. The Securities Administrator
      is hereby appointed trustee of the Supplemental Interest Trust. The trustee
      of
      the Supplemental Interest Trust shall establish an account (the “Supplemental
      Interest Trust Account”) consisting of two sub-accounts (the “Swap Account” and
      the “Cap Account”), into each of which the Depositor shall deposit $500 on the
      Closing Date. The Supplemental Interest Trust Account shall be an Eligible
      Account, and funds on deposit therein shall be held separate and apart from,
      and
      shall not be commingled with, any other monies, including, without limitation,
      other monies of the Securities Administrator held pursuant to this Agreement.
      

    

    (b) In
      addition, the trustee of the Supplemental Interest Trust shall establish a
      collateral account (the “Collateral
      Account”).
      The
      Collateral Account shall be an Eligible Account, and funds on deposit therein
      shall be held separate and apart from, and shall not be commingled with, any
      other monies, including, without limitation, other monies of the Securities
      Administrator held pursuant to this Agreement.

    

    (c) The
      trustee of the Supplemental Interest Trust shall deposit into the Swap Account
      any Net Derivative Payment required pursuant to Sections 4.02(a)(i)(A),
      4.02(a)(ii)(A)(a) and 4.02(a)(ii)(B)(a), any Swap Termination Payment required
      pursuant to Sections 4.02(a)(i)(A), 4.02(a)(ii)(A)(a), 4.02(a)(ii)(B)(a) and
      4.02(a)(iii)(G), and any amounts received from the Swap Counterparty under
      the
      Swap Agreement, and shall distribute from the Supplemental Interest Trust
      Account any Net Derivative Payment required pursuant to Section 4.02(e)(i)
      or
      any Swap Termination Payment required pursuant to Sections 4.02(e)(ii) or
      4.02(e)(x), as applicable.

    

    (d) The
      trustee of the Supplemental Interest Trust shall deposit into the Cap Account
      any amounts received from the Cap Counterparty under the Cap
      Agreement.

    

    (e) Funds
      in
      the Swap Account shall be invested in Permitted Investments constituting time
      deposits under clause (ii) of the definition thereof. Any earnings on such
      amounts shall be distributed on each Distribution Date pursuant to Section
      4.02(e). The Class X Certificates shall evidence ownership of the Swap Account
      for federal income tax purposes and the Holder thereof shall direct the trustee
      of the Supplemental Interest Trust, in writing, as to investment of amounts
      on
      deposit therein. The Sponsor shall be liable for any losses incurred on such
      investments. In the absence of written instructions from the Class X
      Certificateholders as to investment of funds on deposit in the Swap Account,
      such funds shall be invested in the Fidelity Institutional Prime Money Market
      Fund III (691), provided such fund remains in existence, or uninvested, provided
      such fund is no longer in existence . Any amounts on deposit in the Swap Account
      in excess of the Swap Amount on any Distribution Date shall be held for
      distribution pursuant to Section 4.02(e) on the following Distribution
      Date.

    
      
        
        

      

      
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    (f) Funds
      in
      the Cap Account shall be invested in Permitted Investments constituting time
      deposits under clause (ii) of the definition thereof. Any earnings on such
      amounts shall be distributed on each Distribution Date pursuant to Section
      4.02(e). The Class X Certificates shall evidence ownership of the Cap Account
      for federal income tax purposes and the Holder thereof shall direct the trustee
      of the Supplemental Interest Trust, in writing, as to investment of amounts
      on
      deposit therein. The Sponsor shall be liable for any losses incurred on such
      investments. In the absence of prior written instructions from the Class X
      Certificateholders as to investment of funds on deposit in the Cap Account,
      such
      funds shall be invested in the Fidelity Institutional Prime Money Market Fund
      III (691), provided such fund remains in existence, or uninvested, provided
      such
      fund is no longer in existence. Any amounts on deposit in the Cap Account in
      excess of the Cap Amount on any Distribution Date shall be held for distribution
      pursuant to Section 4.02(e) on the following Distribution Date.

    

    (g) Funds
      required to be held pursuant to the Credit Support Annex shall be deposited
      into
      the Collateral Account. Funds posted by the Cap Counterparty (or its credit
      support provider) and/or the Swap Counterparty (or its credit support provider)
      in the Collateral Account shall be invested in Permitted Investments at the
      written direction of the Cap Counterparty and/or Swap Counterparty, as
      applicable. Any interest earnings on such amounts shall be remitted to the
      Cap
      Counterparty and/or Swap Counterparty, as applicable, pursuant to the terms
      of
      the Credit Support Annex. The trustee of the Supplemental Interest Trust shall
      not be liable for any losses incurred on such investments. In the absence of
      prior written instructions from the Cap Counterparty (or its credit support
      provider) and/or the Swap Counterparty (or its credit support provider) as
      to
      investment of funds on deposit in the Collateral Account, such funds shall
      be
      invested in the Fidelity Institutional Prime Money Market Fund III (691),
      provided such fund remains in existence, or uninvested, provided such fund
      is no
      longer in existence. On the Distribution Date immediately following a Swap
      Payment Date where a shortfall exists with respect to a Net Swap Payment or
      a
      Swap Termination Payment owed by the Swap Counterparty as a result of its
      failure to make payments pursuant to the Swap Agreement, amounts necessary
      to
      cover such shortfall shall be removed from the Collateral Account, remitted
      to
      the Swap Account and distributed as all or a portion of such Net Swap Payment
      or
      Swap Termination Payment pursuant to Section 4.02(e). On the Distribution Date
      where a shortfall exists with respect to Cap Amounts owed by the Cap
      Counterparty as a result of its failure to make payments pursuant to the Cap
      Agreement, amounts necessary to cover such shortfall shall be removed from
      the
      Collateral Account, remitted to the Cap Account and distributed as all or a
      portion of such Cap Amount pursuant to Section 4.02(e). Any amounts on deposit
      in the Collateral Account required to be returned to the Cap Counterparty (or
      its credit support provider) and/or the Swap Counterparty (or its credit support
      provider), as applicable, as a result of (i) the termination of the Swap
      Agreement or Cap Agreement, as applicable, (ii) the procurement of a guarantor,
      (iii) the reinstatement of required ratings or (iv) otherwise pursuant to the
      Swap Agreement, shall be released directly to the Swap Counterparty and/or
      the
      Cap Counterparty, as applicable, pursuant to the terms of the Credit Support
      Annex.

    
      
        
        

      

      
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    (h) Upon
      termination of the Trust Fund, any amounts remaining in the Swap Account or
      the
      Cap Account shall be distributed pursuant to the priorities set forth in Section
      4.02(e).

    

    (i) It
      is the
      intention of the parties hereto that, for federal and state income and state
      and
      local franchise tax purposes, the Supplemental Interest Trust be disregarded
      as
      an entity separate from the holder of the Class X Certificates unless and until
      the date when either (i) there is more than one Class X Certificateholder or
      (ii) any Class of Certificates in addition to the Class X Certificates is
      recharacterized as an equity interest in the Supplemental Interest Trust for
      federal income tax purposes. Neither the Securities Administrator nor the
      Trustee shall be responsible for any entity level tax reporting for the
      Supplemental Interest Trust.

    

    (j) Any
      obligation of the Securities Administrator with respect to the Supplemental
      Interest Trust under the Swap Agreement or Cap Agreement shall be deemed to
      be
      an obligation of the Supplemental Interest Trust.

    

    (k) In
      the
      event that the Swap Counterparty or the Cap Counterparty fails to perform any
      of
      its obligations under the Swap Agreement and the Cap Agreement, respectively,
      (including, without limitation, its obligations to make any payment or transfer
      collateral), or breaches any of its representations and warranties under the
      Swap Agreement or the Cap Agreement, as applicable, or in the event that an
      Event of Default, Termination Event, or Additional Termination Event occurs
      (as
      such terms are defined in the Swap Agreement and the Cap Agreement), the trustee
      of the Supplemental Interest Trust shall, no later than the next Business Day
      following such failure, breach or occurrence, notify the Swap Counterparty
      or
      Cap Counterparty, as applicable, and give any notice of such failure and make
      any demand for payment pursuant to the Swap Agreement or Cap Agreement, as
      applicable. In the event that the Swap Counterparty’s or Cap Counterparty’s
      obligations are at any time guaranteed by a third party, then to the extent
      that
      the Swap Counterparty or Cap Counterparty fails to make any payment or delivery
      required under terms of the Swap Agreement or the Cap Agreement, as applicable,
      the trustee of the Supplemental Interest Trust shall, no later than the next
      Business Day following such failure, demand that such guarantor make any and
      all
      payments then required to be made by the applicable guarantor.

    

    Section
      4.07 Rights
      of the Swap Counterparty.
      The Swap
      Counterparty 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
      its
      rights under this Agreement, which rights include but are not limited to the
      obligation of the trustee of the Supplemental Interest Trust (A) to deposit
      any
      Net Derivative Payment required pursuant to Sections 4.02(a)(i)(A),
      4.02(a)(ii)(A)(a) and 4.02(a)(ii)(B)(a), and any Swap Termination Payment
      required pursuant to Sections 4.02(a)(i)(A), 4.02(a)(ii)(A)(a),
      4.02(a)(ii)(B)(a) and 4.02(a)(iii)(G), into the Supplemental Interest Trust
      Account (B) to pay any Net Derivative Payment required pursuant to Section
      4.02(e)(i) or Swap Termination Payment required pursuant to Sections 4.02(e)(ii)
      or Section 4.02(e)(x), as applicable, to the Swap Counterparty and (C) to
      establish and maintain the Swap Account, to make such deposits thereto,
      investments therein and distributions therefrom as are required pursuant to
      Section 4.06. For the protection and enforcement of the provisions of this
      Section the Swap Counterparty shall be entitled to such relief as can be given
      either at law or in equity.

    
      
        
        

      

      
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    Section
      4.08 Termination
      Receipts.
      (a)(i)
      In the event of an “Early Termination Event” as defined under the Swap
      Agreement, (a) any Swap Termination Payment made by the Swap Counterparty to
      the
      Swap Account and paid pursuant to Section 4.02(e)(ix) (“Swap Termination
      Receipts”) will be deposited in a segregated non-interest bearing account which
      shall be an Eligible Account established by the Securities Administrator (the
      “Swap Termination Receipts Account”) and (b) any amounts received from a
      replacement swap counterparty (“Swap Replacement Receipts”) will be deposited in
      a segregated non-interest bearing account which shall be an Eligible Account
      established by the Securities Administrator (the “Swap Replacement Receipts
      Account”). The Securities Administrator shall invest, or cause to be invested,
      funds held in the Swap Termination Receipts Account and the Swap Replacement
      Receipts Account in time deposits of the Securities Administrator as permitted
      pursuant to clause (ii) of the definition of Permitted Investments or as
      otherwise directed in writing by a majority of the Certificateholders. All
      such
      Permitted Investments must be payable on demand or mature on a Distribution
      Date
      or such other date as directed by the Certificateholders. All such Permitted
      Investments will be made in the name of the Securities Administrator, as trustee
      of the Supplemental Interest Trust (in its capacity as such) or its nominee.
      All
      income and gain realized from any such investment shall be deposited in the
      Termination Receipts Account or the Replacement Receipts Account, as applicable,
      and all losses, if any, shall be borne by the related account. 

    

    (ii) Unless
      otherwise permitted by the Rating Agencies as evidenced in a written
      confirmation, the Depositor shall arrange for replacement swap agreement(s)
      or
      procure a replacement guarantor, if applicable, and the Securities Administrator
      shall promptly, with the assistance and cooperation of the Depositor, use
      amounts on deposit in the Swap Termination Receipts Account, if necessary,
      to
      enter into replacement swap agreement(s) or to execute any other agreements
      with
      respect to such replacement guarantor, if applicable, which shall be executed
      and delivered by the Securities Administrator as trustee on behalf of the
      Supplemental Interest Trust upon receipt of written confirmation from each
      Rating Agency (if required pursuant to the terms of the Swap Agreement) that
      such replacement swap agreement(s) will not result in the reduction or
      withdrawal of the rating of any outstanding Class of Certificates with respect
      to which it is a Rating Agency. 

    

    Amounts
      on deposit in the Swap Replacement Receipts Account shall be held for the
      benefit of the related Swap Counterparty and paid to such Swap Counterparty
      if
      the Supplemental Interest Trust is required to make a payment to such Swap
      Counterparty following an event of default or termination event with respect
      to
      the Supplemental Interest Trust under the related Swap Agreement. Any amounts
      not so applied shall, following the termination or expiration of such Swap
      Agreement, be paid to the Class X Certificates.

    
      
        
        

      

      
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    (b) (i)
      In
      the event of an “Early Termination Event” as defined under the Cap Agreement,
      (a) any Cap Termination Payment made by the Cap Counterparty to the Cap Account
      and paid pursuant to Section 4.02(e)(ix) (“Cap Termination Receipts”) shall be
      deposited in a segregated non-interest bearing account which shall be an
      Eligible Account established by the Securities Administrator (the “Cap
      Termination Receipts Account”) and (b) any amounts received from a replacement
      cap counterparty (“Cap Replacement Receipts”) will be deposited in a segregated
      non-interest bearing account which shall be an Eligible Account established
      by
      the Securities Administrator (the “Cap Replacement Receipts Account”). The
      Securities Administrator shall invest, or cause to be invested, funds held
      in
      the Cap Termination Receipts Account in time deposits of the Securities
      Administrator as permitted by clause (ii) of the definition of Permitted
      Investments or as otherwise directed in writing by a majority of the
      Certificateholders. All such Permitted Investments must be payable on demand
      or
      mature on a Cap Payment Date, a Distribution Date or such other date as directed
      by the Certificateholders. All such Permitted Investments shall be made in
      the
      name of the Securities Administrator as trustee of the Supplemental Interest
      Trust (in its capacity as such) or its nominee. All income and gain realized
      from any such investment shall be deposited in the Cap Termination Receipts
      Account and all losses, if any, shall be borne by such account. 

    

    (ii) Unless
      otherwise permitted by the Rating Agencies as evidenced in a written
      confirmation, the Depositor shall arrange for one or more replacement interest
      rate cap agreements and the Securities Administrator shall promptly, with the
      assistance and cooperation of the Depositor, use amounts on deposit in the
      Cap
      Termination Receipts Account, if necessary, to enter into any such replacement
      interest rate cap agreement which shall be executed and delivered by the
      Securities Administrator as trustee of the Supplemental Interest Trust upon
      receipt of written confirmation from each Rating Agency that any such
      replacement interest rate cap agreement will not result in the reduction or
      withdrawal of the rating of any outstanding Class of Certificates with respect
      to which it is a Rating Agency.

    

    ARTICLE
      V

    

    THE
      CERTIFICATES

    

    Section
      5.01 The
      Certificates.
      The
      Certificates shall be substantially in the forms attached hereto as exhibits.
      The Certificates shall be issuable in registered form, in the minimum
      denominations, integral multiples in excess thereof (except that one Certificate
      in each Class may be issued in a different amount) and aggregate
      denominations per Class set forth in the Preliminary
      Statement.

    

    The
      Depositor hereby directs the Securities Administrator to register the
      Class X, Class P and Class R Certificates in the name of HSBC
      Securities (USA) Inc. or its designee. On a date as to which the Depositor
      notifies the Securities Administrator, the Securities Administrator shall
      transfer the Class X and Class P Certificates in the name of the NIM
      Trustee, or such other name or names as the Depositor shall request, and to
      deliver the Class X and Class P Certificates to the NIM Trustee or to
      such other Person or Persons as the Depositor shall request.

    
      
        
        

      

      
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    Subject
      to Section 11.02 respecting the final distribution on the Certificates, on
      each Distribution Date the Securities Administrator shall make distributions
      to
      each Certificateholder of record on the preceding Record Date either (x) by
      wire transfer in immediately available funds to the account of such holder
      at a
      bank or other entity having appropriate facilities therefor, if such Holder
      has
      so notified the Securities Administrator at least five Business Days prior
      to
      the applicable Distribution Date or (y) by check mailed by first Class mail
      to such Certificateholder at the address of such holder appearing in the
      Certificate Register; provided,
      however,
      so long
      as such Certificate is a Book-Entry Certificate, all distributions on such
      Certificate will be made through the Depository or the Depository Participant.
      

    

    The
      Certificates shall be executed by manual or facsimile signature on behalf of
      the
      Securities Administrator by an authorized officer. Certificates bearing the
      manual or facsimile signatures of individuals who were, at the time 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
      authentication and delivery of any such Certificates or did not hold such
      offices at the date of such Certificate. No Certificate shall be entitled to
      any
      benefit under this Agreement, or be valid for any purpose, unless authenticated
      by the Securities Administrator by manual signature, and such authentication
      upon any Certificate shall be conclusive evidence, and the only evidence, that
      such Certificate has been duly executed and delivered hereunder. All
      Certificates shall be dated the date of their authentication. On the Closing
      Date, the Securities Administrator shall authenticate the Certificates to be
      issued at the direction of the Depositor, or any affiliate thereof.

    

    Section
      5.02 Certificate
      Register; Registration of Transfer and Exchange of Certificates.
      (a)  The Securities Administrator shall maintain, or cause to be
      maintained in accordance with the provisions of Section 5.06, a Certificate
      Register for the Trust Fund in which, subject to the provisions of subsections
      (b) and (c) below and to such reasonable regulations as it may prescribe,
      the Securities Administrator shall provide for the registration of Certificates
      and of transfers and exchanges of Certificates as herein provided. Upon
      surrender for registration of transfer of any Certificate, the Securities
      Administrator shall execute and deliver, in the name of the designated
      transferee or transferees, one or more new Certificates of the same
      Class and aggregate Percentage Interest.

    

    At
      the
      option of a Certificateholder, Certificates may be exchanged for other
      Certificates of the same Class in authorized denominations and evidencing
      the same aggregate Percentage Interest upon surrender of the Certificates to
      be
      exchanged at the office or agency of the Securities Administrator. Whenever
      any
      Certificates are so surrendered for exchange, the Securities Administrator
      shall
      execute, authenticate, and deliver the Certificates which the Certificateholder
      making the exchange is entitled to receive. Every Certificate presented or
      surrendered for registration of transfer or exchange shall be accompanied by
      a
      written instrument of transfer in form satisfactory to the Securities
      Administrator duly executed by the holder thereof or his attorney duly
      authorized in writing.

    

    No
      service charge to the Certificateholders shall be made for any registration
      of
      transfer or exchange of Certificates, but payment of a sum sufficient to cover
      any tax or governmental charge that may be imposed in connection with any
      transfer or exchange of Certificates may be required.

    
      
        
        

      

      
        -101-

        
          

        

      

      
        
        

      

    

    

    All
      Certificates surrendered for registration of transfer or exchange shall be
      cancelled and subsequently destroyed by the Securities Administrator in
      accordance with the Securities Administrator’s customary
      procedures.

    

    (b) No
      transfer of a Private Certificate shall be made unless such transfer is made
      pursuant to an effective registration statement under the Securities Act and
      any
      applicable state securities laws or is exempt from the registration requirements
      under said Act and such state securities laws. In determining whether a transfer
      is being made pursuant to an effective registration statement, the Securities
      Administrator shall be entitled to rely solely upon a written notice to such
      effect from the Depositor. Except with respect to (i) the transfer of the
      Class X, Class P or Class R Certificates to the Depositor or an
      Affiliate of the Depositor, (ii) the transfer of the Class X or
      Class P Certificates to the NIM Issuer or the NIM Trustee, or (iii) a
      transfer of the Class X or Class P Certificates from the NIM Issuer or
      the NIM Trustee to the Depositor or an Affiliate of the Depositor, in the event
      that a transfer of a Private Certificate which is a Physical Certificate is to
      be made in reliance upon an exemption from the Securities Act and such laws,
      in
      order to assure compliance with the Securities Act and such laws, the
      Certificateholder desiring to effect such transfer shall certify to the
      Securities Administrator in writing the facts surrounding the transfer in
      substantially the form set forth in Exhibit H (the “Transferor
      Certificate”)
      and
      either (i) there shall be delivered to the Securities Administrator a
      letter in substantially the form of Exhibit I-A (the “Rule 144A
      Investment Letter”)
      or
      Exhibit I-B (the “Regulation
      S Investment Letter”)
      or
      (ii) there shall be delivered to the Securities Administrator at the
      expense of the transferor an Opinion of Counsel stating that such transfer
      may
      be made without registration under the Securities Act. In the event that a
      transfer of a Private Certificate which is a Book-Entry Certificate is to be
      made in reliance upon an exemption from the Securities Act and such laws, in
      order to assure compliance with the Securities Act and such laws, the
      Certificateholder desiring to effect such transfer will be deemed to have made
      as of the transfer date each of the certifications set forth in the Transferor
      Certificate in respect of such Certificate and the transferee will be deemed
      to
      have made as of the transfer date each of the certifications set forth in the
      Rule 144A Investment Letter or Regulation S Investment Letter, as
      applicable, in respect of such Certificate, in each case as if such Certificate
      were evidenced by a Physical Certificate. As directed by the Depositor, the
      Securities Administrator shall provide to any Holder of a Private Certificate
      and any prospective transferee designated by any such Holder, information
      regarding the related Certificates and the Mortgage Loans and such other
      information as shall be necessary to satisfy the condition to eligibility set
      forth in Rule 144A(d)(4) for transfer of any such Certificate without
      registration thereof under the Securities Act pursuant to the registration
      exemption provided by Rule 144A. The Depositor, the Master Servicer and the
      Trustee shall cooperate with the Securities Administrator in providing the
      Rule 144A information referenced in the preceding sentence, including
      providing to the Securities Administrator such information regarding the
      Certificates, the Mortgage Loans and other matters regarding the Trust Fund
      as
      the Securities Administrator shall reasonably determine to meet its obligation
      under the preceding sentence. Each Holder of a Private Certificate desiring
      to
      effect such transfer shall, and does hereby agree to, indemnify the Securities
      Administrator, the Trustee, the Servicer, the Master Servicer 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.

    
      
        
        

      

      
        -102-

        
          

        

      

      
        
        

      

    

    

    Except
      with respect to (i) the transfer of the Class X, Class P or
      Class R Certificates to the Depositor or an Affiliate of the Depositor,
      (ii) the transfer of the Class X or Class P Certificates to the
      NIM Issuer or the NIM Trustee, or (iii) a transfer of the Class X or
      Class P Certificates from the NIM Issuer or the NIM Trustee to the
      Depositor or an Affiliate of the Depositor, no transfer of an ERISA-Restricted
      Certificate shall be made unless the Securities Administrator shall have
      received either (i) a representation from the transferee of such
      Certificate acceptable to and in form and substance satisfactory to the
      Securities Administrator (in the event such Certificate is a Private Certificate
      or a Residual Certificate, such requirement is satisfied only by the Securities
      Administrator’s receipt of a representation letter from the transferee
      substantially in the form of Exhibit I-A or Exhibit I-B), to the effect
      that such transferee is not an employee benefit plan or arrangement subject
      to
      Section 406 of ERISA, a plan subject to Section 4975 of the Code or a
      plan subject to any Federal, state or local law (“Similar
      Law”)
      materially similar to the foregoing provisions of ERISA or the Code, nor a
      person acting on behalf of any such plan or arrangement nor using the assets
      of
      any such plan or arrangement to effect such transfer, or (ii) in the case
      of an ERISA-Restricted Certificate (other than a Residual Certificate, Class
      X
      Certificate or a Class P Certificate) that has been the subject of an
      ERISA-Qualifying Underwriting, and the purchaser is an insurance company, a
      representation that the purchaser is an insurance company that is purchasing
      such Certificates with funds contained in an “insurance company general account”
(as such term is defined in Section V(e) of Prohibited Transaction
      Class Exemption (“PTCE”)
      95-60)
      and that the purchase and holding of such Certificates are covered under
      Sections I and III of PTCE 95-60 or (iii) in the case of any such
      ERISA-Restricted Certificate other than a Residual Certificate, Class X
      Certificate or Class P Certificate presented for registration in the name
      of an employee benefit plan subject to Title I of ERISA, a plan or
      arrangement subject to Section 4975 of the Code (or comparable provisions
      of any subsequent enactments), or a plan subject to Similar Law, or a trustee
      of
      any such plan or any other person acting on behalf of any such plan or
      arrangement or using such plan’s or arrangement’s assets, an Opinion of Counsel
      satisfactory to the Securities Administrator, which Opinion of Counsel shall
      not
      be an expense of the Depositor, the Trustee, the Master Servicer, the Servicer,
      the Securities Administrator or the Trust Fund, addressed 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 any Similar Law and will not subject the Trustee, the Depositor, the
      Securities Administrator, the Master Servicer or the Servicer to any obligation
      in addition to those expressly undertaken in this Agreement or to any liability.
      For purposes of the preceding sentence, with respect to an ERISA-Restricted
      Certificate that is not a Physical Certificate or a Residual Certificate, in
      the
      event the representation letter referred to in the preceding sentence is not
      furnished, such representation shall be deemed to have been made to the
      Securities Administrator by the transferee’s (including an initial acquirer’s)
      acceptance of the ERISA-Restricted Certificates. Notwithstanding anything else
      to the contrary herein, (a) any purported transfer of an ERISA-Restricted
      Certificate that is a Physical Certificate, other than a Class P
      Certificate, Class X Certificate or Residual Certificate, to or on behalf of
      an
      employee benefit plan subject to ERISA, the Code or Similar Law without the
      delivery to the Securities Administrator of a representation letter or an
      Opinion of Counsel satisfactory to the Securities Administrator as described
      above shall be void and of no effect and (b) any purported transfer of a
      Class P Certificate, Class X Certificate or Residual Certificate to a
      transferee that does not make the representation in clause (i) above
      shall be void and of no effect.

    
      
        
        

      

      
        -103-

        
          

        

      

      
        
        

      

    

    

    None
      of
      the Class R, Class X or Class P Certificates may be sold to any
      employee benefit plan subject to Title I of ERISA, any plan subject to
      Section 4975 of the Code, or any plan subject to any Similar Law or any
      person investing on behalf or with plan assets of such plan.

    

    No
      transfer of an ERISA-Restricted Trust Certificate prior to the termination
      of
      the Cap Agreement and the Swap Agreement shall be made unless the Securities
      Administrator shall have received a representation letter from the transferee
      of
      such Certificate, substantially in the form set forth in Exhibit I-A or Exhibit
      I-B, to the effect that either (i) such transferee is neither an employee
      benefit plan or arrangement subject to Section 406 of ERISA, a plan subject
      to
      Section 4975 of the Code or a plan subject to Similar Law nor a Person acting
      on
      behalf of any such Plan or using the assets of any such Plan to effect such
      transfer or (ii) the acquisition and holding of the ERISA-Restricted Trust
      Certificate are eligible for exemptive relief under the statutory exemption
      for
      non-fiduciary service providers under Section 408(b)(17) of ERISA and Section
      4975(d)(20) of the Code, PTCE 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE
      96-23 or some other applicable exemption. Notwithstanding anything else to
      the
      contrary herein, any purported transfer of an ERISA-Restricted Trust Certificate
      prior to the termination of the Cap Agreement and the Swap Agreement on behalf
      of such Plan without the delivery to the Securities Administrator of a
      representation letter as described above shall be void and of no effect. If
      the
      ERISA-Restricted Trust Certificate is a Book-Entry Certificate, the transferee
      will be deemed to have made a representation as provided in clause (i) or (ii)
      of this paragraph, as applicable.

    

    If
      any
      ERISA-Restricted Trust Certificate, or any interest therein, is acquired or
      held
      in violation of the provisions of the preceding paragraph, the next preceding
      permitted beneficial owner will be treated as the beneficial owner of that
      Certificate, retroactive to the date of transfer to the purported beneficial
      owner. Any purported beneficial owner whose acquisition or holding of an
      ERISA-Restricted Trust Certificate, or interest therein, was effected in
      violation of the provisions of the preceding paragraph shall indemnify to the
      extent permitted by law and hold harmless the Depositor, the Securities
      Administrator, the Trustee, the Servicer and the Master Servicer from and
      against any and all liabilities, claims, costs or expenses incurred by such
      parties as a result of such acquisition or holding.

    

    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 or ERISA-Restricted
      Trust Certificate that is in fact not permitted by this Section 5.02(b) or
      for making any payments due on such Certificate to the Holder thereof or taking
      any other action with respect to such Holder under the provisions of this
      Agreement so long as, in the case of a Physical Certificate, the transfer was
      registered by the Securities Administrator in accordance with the foregoing
      requirements.

    

    (c) 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:

    
      
        
        

      

      
        -104-

        
          

        

      

      
        
        

      

    

    

    (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
      Ownership Interest in a Residual Certificate may be registered on the Closing
      Date or thereafter transferred, and the Securities Administrator shall not
      register the Transfer of any Residual Certificate unless, in addition to the
      certificates required to be delivered to the Securities Administrator under
      subparagraph (b) above, the Securities Administrator shall have been
      furnished with an affidavit (a “Transfer
      Affidavit”)
      of the
      initial owner or the proposed transferee in the form attached hereto as
      Exhibit G;

    

    (iii) Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall agree (A) to obtain a Transfer Affidavit from any other Person to
      whom such Person attempts to Transfer its Ownership Interest in a Residual
      Certificate, (B) to obtain a Transfer Affidavit from any Person for whom
      such Person is acting as nominee, trustee or agent in connection with any
      Transfer of a Residual Certificate and (C) not to Transfer its Ownership
      Interest in a Residual Certificate or to cause the Transfer of an Ownership
      Interest in a Residual Certificate to any other Person if it has actual
      knowledge that such Person is a Non-Permitted Transferee;

    

    (iv) Any
      attempted or purported Transfer of any Ownership Interest in a Residual
      Certificate in violation of the provisions of this Section 5.02(c) shall be
      absolutely null and void and shall vest no rights in the purported Transferee.
      If any purported transferee shall become a Holder of a Residual Certificate
      in
      violation of the provisions of this Section 5.02(c), then the last
      preceding Permitted Transferee shall be restored to all rights as Holder thereof
      retroactive to the date of registration of Transfer of such 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 Section 5.02(a) and this Section 5.02(c) or for
      making any payments due on such Certificate to the Holder thereof or taking
      any
      other action with respect to such Holder under the provisions of this Agreement
      so long as the Transfer was registered after receipt of the related Transfer
      Affidavit, Transferor Certificate and the Rule 144A Investment Letter. The
      Securities Administrator shall be entitled but not obligated to recover from
      any
      Holder of a Residual Certificate that was in fact a Non-Permitted Transferee
      at
      the time it became a Holder or, at such subsequent time as it became a
      Non-Permitted Transferee, all payments made on such Residual Certificate at
      and
      after either such time. Any such payments so recovered by the Securities
      Administrator shall be paid and delivered by the Securities Administrator to
      the
      last preceding Permitted Transferee of such Certificate; and

    

    (v) The
      Depositor shall use its best efforts to make available, upon receipt of written
      request from the Securities Administrator, all information necessary to compute
      any tax imposed under Section 860E(e) of the Code as a result of a Transfer
      of an Ownership Interest in a Residual Certificate to any Holder who is a
      Non-Permitted Transferee.

    
      
        
        

      

      
        -105-

        
          

        

      

      
        
        

      

    

    

    The
      restrictions on Transfers of a Residual Certificate set forth in this
      Section 5.02(c) shall cease to apply (and the applicable portions of the
      legend on a Residual Certificate may be deleted) with respect to Transfers
      occurring after delivery to the Securities Administrator of an Opinion of
      Counsel, which Opinion of Counsel shall not be an expense of the Trust Fund,
      the
      Trustee, the Securities Administrator or the Servicer, to the effect that the
      elimination of such restrictions will not cause any REMIC created hereunder
      to
      fail to qualify as a REMIC at any time that the Certificates are outstanding
      or
      result in the imposition of any tax on the Trust Fund, a Certificateholder
      or
      another Person. Each Person holding or acquiring any Ownership Interest in
      a
      Residual Certificate hereby consents to any amendment of this Agreement which,
      based on an Opinion of Counsel furnished to the Securities Administrator, is
      reasonably necessary (a) to ensure that the record ownership of, or any
      beneficial interest in, a Residual Certificate is not transferred, directly
      or
      indirectly, to a Person that is a Non-Permitted Transferee and (b) to
      provide for a means to compel the Transfer of a Residual Certificate which
      is
      held by a Person that is a Non-Permitted Transferee to a Holder that is a
      Permitted Transferee.

    

    (d) The
      preparation and delivery of all certificates and opinions referred to above
      in
      this Section 5.02 in connection with transfer shall be at the expense of
      the parties to such transfers.

    

    (e) Except
      as
      provided below, the Book-Entry Certificates shall at all times remain registered
      in the name of the Depository or its nominee and at all times:
      (i) registration of the Certificates may not be transferred by the
      Securities Administrator except to another Depository; (ii) the Depository
      shall maintain book-entry records with respect to the Certificate Owners and
      with respect to ownership and transfers of such Book-Entry Certificates;
      (iii) 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; (iv) the Depository may collect its
      usual and customary fees, charges and expenses from its Depository Participants;
      (v) the Securities Administrator shall deal with the Depository, Depository
      Participants and indirect participating firms as representatives 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 such representatives shall not be deemed to be inconsistent if they
      are
      made with respect to different Certificate Owners; and (vi) 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.

    

    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 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.

    
      
        
        

      

      
        -106-

        
          

        

      

      
        
        

      

    

    

    If
      (x) (i) the Depository or the Depositor advises the Securities
      Administrator in writing that the Depository is no longer willing or able to
      properly discharge its responsibilities as Depository, and (ii) the
      Securities Administrator or the Depositor is unable to locate a qualified
      successor, or (y) the Depositor notifies the Depository (and the Securities
      Administrator consents) of its intent to terminate the book-entry system through
      the Depository and, upon receipt of notice of such intent from the Depository,
      the Depository Participants holding beneficial interests in the Book-Entry
      Certificates agree in writing to initiate such termination, the Securities
      Administrator shall notify all Certificate Owners, through the Depository,
      of
      the occurrence of any such event and of the availability of definitive, fully
      registered Certificates (the “Definitive
      Certificates”)
      to
      Certificate Owners requesting the same. Upon surrender to the Securities
      Administrator of the related Class of Certificates by the Depository,
      accompanied by the instructions from the Depository for registration, the
      Securities Administrator shall issue the Definitive Certificates. None of the
      Servicer, the Depositor or the Securities Administrator shall be liable for
      any
      delay in delivery of such instruction and each 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 all references herein to obligations imposed
      upon or to be performed by the Depository shall be deemed to be imposed upon
      and
      performed by the Securities Administrator, to the extent applicable with respect
      to such Definitive Certificates and the Securities Administrator shall recognize
      the Holders of the Definitive Certificates as Certificateholders hereunder;
      provided,
      that
      the Securities Administrator shall not by virtue of its assumption of such
      obligations become liable to any party for any act or failure to act of the
      Depository.

    

    (f) Each
      Private Certificate presented or surrendered for registration of transfer or
      exchange shall be accompanied by a written instrument of transfer and
      accompanied by IRS Form W-8ECI, W-8BEN, W-8IMY (and all appropriate attachments)
      or W-9 in form satisfactory to the Securities Administrator, duly executed
      by
      the Certificateholder or his attorney duly authorized in writing. Each
      Certificate presented or surrendered for registration of transfer or exchange
      shall be canceled and subsequently disposed of by the Securities Administrator
      in accordance with its customary practice. No service charge shall be made
      for
      any registration of transfer or exchange of Private Certificates, 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 Private Certificates.

    

    Section
      5.03 Mutilated,
      Destroyed, Lost or Stolen Certificates.
      If
      (a) any mutilated Certificate is surrendered to the Securities
      Administrator, or the Securities Administrator receives evidence to its
      satisfaction of the destruction, loss or theft of any Certificate and
      (b) there is delivered to the Depositor, the Securities Administrator and
      the Trustee such security or indemnity as may be required by them to hold each
      of them harmless, then, in the absence of notice to a Responsible Officer of
      the
      Securities Administrator that such Certificate has been acquired by a bona
      fide
      purchaser, the Securities Administrator shall execute, authenticate and deliver,
      in exchange for or in lieu of any such mutilated, destroyed, lost or stolen
      Certificate, a new Certificate of like Class, tenor and Percentage Interest.
      In
      connection with the issuance of any new Certificate under this
      Section 5.03, the 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) connected therewith. Any replacement Certificate
      issued pursuant to this Section 5.03 shall constitute complete and
      indefeasible evidence of ownership, as if originally issued, whether or not
      the
      lost, stolen or destroyed Certificate shall be found at any time.

    
      
        
        

      

      
        -107-

        
          

        

      

      
        
        

      

    

    

    Section
      5.04 Persons
      Deemed Owners.
      The
      Trustee, the Depositor, the Securities Administrator and any agent of the
      Trustee, the Depositor or the Securities Administrator may treat the Person
      in
      whose name any Certificate is registered as the owner of such Certificate for
      the purpose of receiving distributions as provided in this Agreement and for
      all
      other purposes whatsoever, and neither the Trustee, the Depositor, the
      Securities Administrator nor any agent of the Trustee, the Depositor or the
      Securities Administrator shall be affected by any notice to the
      contrary.

    

    Section
      5.05 Access
      to List of Certificateholders’ Names and Addresses.
      If
      three or more Certificateholders (a) request such information in writing
      from the Securities Administrator, (b) state that such Certificateholders
      desire to communicate with other Certificateholders with respect to their rights
      under this Agreement or under the Certificates and (c) provide a copy of
      the communication which such Certificateholders propose to transmit, or if
      the
      Depositor or the Servicer shall request such information in writing from the
      Securities Administrator, then the Securities Administrator shall, within ten
      Business Days after the receipt of such request, provide the Depositor, the
      Servicer or such Certificateholders at such recipients’ expense the most recent
      list of the Certificateholders of such Trust Fund held by the Securities
      Administrator, if any. The Depositor and every Certificateholder, by receiving
      and holding a Certificate, agree that the Securities Administrator shall not
      be
      held accountable by reason of the disclosure of any such information as to
      the
      list of the Certificateholders hereunder, regardless of the source from which
      such information was derived.

    

    Section
      5.06 Maintenance
      of Office or Agency.
      The
      Securities Administrator will maintain or cause to be maintained at its expense
      an office or offices or agency or agencies where Certificates may be surrendered
      for registration of transfer or exchange. The Securities Administrator initially
      designates its offices located at 111 Wall Street, 15th
      Floor
      Window, New York, New York 10005, Attention: Corporate Trust Services - HASCO
      2007-OPT1. The Securities Administrator shall give prompt written notice to
      the
      Certificateholders of any change in such location of any such office or
      agency.

    

    ARTICLE
      VI

    

    THE
      DEPOSITOR AND THE SERVICER

    

    Section
      6.01 Respective
      Liabilities of the Depositor and the Servicer.
      The
      Depositor and the Servicer shall each be liable in accordance herewith only
      to
      the extent of the obligations specifically and respectively imposed upon and
      undertaken by them herein.

    

    Section
      6.02 Merger
      or Consolidation of the Depositor or the Servicer.
      (a) The Depositor and the Servicer will each keep in full effect its
      existence, rights and franchises as a corporation, under the laws of the United
      States or under the laws of one of the states thereof and will each obtain
      and
      preserve its qualification to do business as a foreign corporation in each
      jurisdiction in which such qualification is or shall be necessary to protect
      the
      validity and enforceability of this Agreement, or any of the Mortgage Loans
      and
      to perform its respective duties under this Agreement.

    
      
        
        

      

      
        -108-

        
          

        

      

      
        
        

      

    

    

    (b) The
      Servicer is and shall continue to be an institution which is a Fannie
      Mae-approved and Freddie Mac-approved seller/servicer, shall maintain a net
      worth of at least $30,000,000 (as determined in accordance with generally
      accepted accounting principles) and shall maintain its license to do business
      or
      service residential mortgage loans in any jurisdictions in which the Mortgaged
      Properties are located.

    

    (c) Any
      Person into which the Depositor or the Servicer may be merged or consolidated,
      or any Person resulting from any merger or consolidation to which the Depositor
      or the Servicer shall be a party, or any person succeeding to the business
      of
      the Depositor or the Servicer, shall be the successor of the Depositor or the
      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 Servicer shall make the covenant set
      forth in Section 6.02(a) and (b).

    

    Section
      6.03 Limitation
      on Liability of the Depositor, the Servicer and Others. Neither
      the Depositor, the Servicer, nor any of their respective directors, officers,
      employees or agents, shall be under any liability to 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 Servicer or any such Person
      against any breach of representations or warranties made by it herein or protect
      the Depositor, the Servicer or any such Person from any liability which would
      otherwise be imposed by reasons of willful misfeasance, bad faith or negligence
      (or gross negligence in the case of the Depositor) in the performance of duties
      or by reason of reckless disregard of obligations and duties hereunder. The
      Depositor, its Affiliates, the Servicer and any of their respective directors,
      officers, employees or agents 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, its Affiliates, the Servicer and any of their
      respective directors, officers, employees or agents shall be indemnified by
      the
      Trust Fund and held harmless against any loss, liability or expense incurred
      in
      connection with any audit, controversy or judicial proceeding relating to a
      governmental taxing authority or any legal action relating to this Agreement
      or
      the Certificates other than any loss, liability or expense related to any
      specific Mortgage Loan or Mortgage Loans (except as any such loss, liability
      or
      expense shall be otherwise reimbursable pursuant to this Agreement and any
      loss,
      liability or expense incurred by reason of willful misfeasance, bad faith or
      negligence (or gross negligence in the case of the Depositor) in the performance
      of duties hereunder or by reason of reckless disregard of obligations and duties
      hereunder. Neither the Depositor nor the Servicer shall be under any obligation
      to appear in, prosecute or defend any legal action that is not incidental to
      its
      respective duties hereunder and which in its opinion may involve it in any
      expense or liability; provided, however, that the Depositor may in its
      discretion undertake any such action (or direct the Trustee to undertake such
      actions pursuant to Section 2.03 for the benefit of the Certificateholders)
      that it may deem necessary or desirable in respect of this Agreement and the
      rights and duties of the parties hereto and interests of the Trustee and the
      Certificateholders hereunder. In such event, the legal expenses and costs of
      such action and any liability resulting therefrom shall be expenses, costs
      and
      liabilities of the Trust Fund, and the Depositor and the Servicer shall be
      entitled to be reimbursed therefor out of the Collection Account.

    
      
        
        

      

      
        -109-

        
          

        

      

      
        
        

      

    

    

    Section
      6.04 Limitation
      on Resignation of the Servicer.
      Subject
      to Section 7.01, the Servicer shall not assign this Agreement or resign
      from the obligations and duties hereby imposed on it except by mutual consent
      of
      the Servicer, the Depositor, the Master Servicer and the Securities
      Administrator with prior written notice to the Trustee or upon the determination
      that its duties hereunder are no longer permissible under applicable law and
      such incapacity cannot be cured by the Servicer. Any such resignation shall
      not
      relieve the Servicer of responsibility for any of the obligations specified
      in
      Sections 7.01 and 7.02 as obligations that survive the resignation or
      termination of the Servicer. Any such determination permitting the resignation
      of the Servicer shall be evidenced by an Opinion of Counsel to such effect
      delivered to the Depositor, the Securities Administrator, the Trustee and the
      Master Servicer which Opinion of Counsel shall be in form and substance
      acceptable to the Depositor, the Securities Administrator and the Master
      Servicer. No such resignation shall become effective until a successor shall
      have assumed the Servicer’s responsibilities and obligations
      hereunder.

    

    Section
      6.05 Additional
      Indemnification by the Servicer; Third Party Claims. Notwithstanding
      the limitations set forth in Section 6.03, the Servicer shall indemnify the
      Depositor, the Master Servicer, the Securities Administrator, the Trustee,
      the
      Trust Fund and any Affiliate, director, officer, employee or agent of the
      Depositor and hold each of 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 any breach by the Servicer, of
      (i) any of its representations and warranties referred to in
      Section 2.03(a), (ii) any error in any tax or information return
      prepared by the Servicer, (iii) the failure of the Servicer to perform its
      duties and service the Mortgage Loans in compliance with the terms of this
      Agreement or (iv) any failure by the Servicer, any Subservicer or any
      Subcontractor to deliver any information, report, certification, accountants’
letter or other material when and as required under this Agreement, including
      any report under Sections 3.22, 3.23, 3.24 and 3.29 or any failure by the
      Servicer to identify pursuant to Section 3.02(c) any Subcontractor that is
      a
      Servicing Function Participant. The Servicer immediately shall notify the
      Depositor, the Master Servicer, the Securities Administrator and the Trustee
      if
      a claim is made by a third party with respect to this Agreement or the Mortgage
      Loans, assume (solely with the prior written consent of the indemnified party
      in
      the event of an indemnified claim) the defense of any such claim and pay all
      expenses in connection therewith, including counsel fees, and promptly pay,
      discharge and satisfy any judgment or decree which may be entered against it
      or
      the Depositor, the Master Servicer, the Securities Administrator or the Trustee
      in respect of such claim. In the case of any failure of performance described
      in
      clause (iv) of this Section 6.05, the Servicer shall promptly reimburse the
      Trustee, the Master Servicer, the Securities Administrator or the Depositor,
      as
      applicable, and each Person responsible for the preparation, execution or filing
      of any report required to be filed with the Commission with respect to the
      transaction relating to this Agreement, or for execution of a certification
      pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect
      to this transaction, for all costs reasonably incurred by each such party in
      order to obtain the information, report, certification, accountants’ letter or
      other material not delivered as required by the Servicer, any Subservicer or
      any
      Subcontractor. This indemnity shall survive the termination of this Agreement
      and the earlier resignation or removal of the Servicer and the parties
      indemnified by the Servicer under this paragraph.

    
      
        
        

      

      
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    Section
      6.06 Compliance
      with Regulation AB; Cooperation of Parties.
      Notwithstanding any other provision of this Agreement, the Servicer acknowledges
      and agrees that the purpose of Sections 3.02, 3.22, 3.23, 3.24, 3.29, 6.05
      and
      7.01(i) and Exhibit S of this Agreement is to facilitate compliance by the
      Securities Administrator, the Master Servicer and the Depositor with the
      provisions of Regulation AB. Therefore, the Servicer agrees that (a) the
      obligations of the Servicer hereunder shall be interpreted in such a manner
      as
      to accomplish that purpose, (b) such obligations may change over time due to
      interpretive advice or guidance of the Commission, convention or consensus
      among
      active participants in the asset-backed securities markets, advice of counsel,
      or otherwise in respect of the requirements of Regulation AB, (c) the Servicer
      shall agree to enter into such amendments to this Agreement as may be necessary,
      in the judgment of the Servicer, the Depositor, the Master Servicer and the
      Securities Administrator and their respective counsel, to comply with such
      interpretive advice or guidance, convention, consensus, advice of counsel,
      or
      otherwise, (d) the Servicer shall otherwise comply with requests made by the
      Securities Administrator, the Master Servicer or the Depositor, and mutually
      agreed upon by the Servicer, for delivery of additional or different information
      reasonably available to the Servicer as such parties may determine in good
      faith
      is necessary to comply with the provisions of Regulation AB and (e) the
      Servicer shall (i) agree to such modifications and enter into such amendments
      to
      this Agreement as may be necessary, in the judgment of the Depositor, the Master
      Servicer and
      the
      Securities Administrator and
      their respective counsel
      and
      mutually agreed upon by the Servicer, to
      comply with any such clarification, interpretive guidance, convention or
      consensus and (ii) promptly
      upon request provide to the Depositor or the Securities Administrator for
      inclusion in any periodic report required to be filed under the Securities
      Exchange Act, such items of information reasonably available to the Servicer
      regarding this Agreement and matters related to the Servicer (collectively,
      the
“Servicer Information”), provided
      that
      such
      information shall be required to be provided by the Servicer only to the extent
      that such shall be determined by the Depositor or the Master Servicer in its
      sole discretion and its counsel to be necessary or advisable to comply with
      any
      Commission and industry guidance and convention.

    

    ARTICLE
      VII

    

    DEFAULT

    

    Section
      7.01 Events
      of Default.
“Event
      of Default”, wherever used herein, means any one of the following
      events:

    

    (a) any
      failure by the Servicer to remit to the Master Servicer any payment required
      to
      be made under the terms of this Agreement which continues unremedied for a
      period of one Business Day after the date upon which written notice of such
      failure, requiring the same to be remedied, shall have been given to the
      Servicer by the Depositor or by the Master Servicer, or to the Servicer, the
      Depositor, the Master Servicer, the Securities Administrator and the Trustee
      by
      Certificateholders entitled to at least 25.00% of the Voting Rights in the
      Certificates; or

    
      
        
        

      

      
        -111-

        
          

        

      

      
        
        

      

    

    

    (b) subject
      to clause (i) of this Section 7.01, the failure on the part of the Servicer
      duly
      to observe or perform in any material respect any other of the covenants or
      agreements on the part of the Servicer set forth in this Agreement which
      continues unremedied for a period of forty-five days (except that such
      number of days shall be fifteen in the case of a failure to pay any premium
      for
      any insurance policy required to be maintained under this Agreement,
      after the earlier of (i) the date on which written notice of such
      failure, requiring the same to be remedied, shall have been given to the
      Servicer by the Depositor or by the Master Servicer, or to the Servicer, the
      Depositor, the Master Servicer, the Securities Administrator and the Trustee
      by
      Certificateholders entitled to at least 25.00% of the Voting Rights in the
      Certificates and (ii) actual knowledge of such failure by a Servicing
      Officer of the Servicer; or

    

    (c) a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      for
      the appointment of a conservator or receiver or liquidator in any insolvency,
      bankruptcy, readjustment of debt, marshalling of assets and liabilities or
      similar proceedings, or for the winding-up or liquidation of its affairs, shall
      have been entered against the Servicer and such decree or order shall have
      remained in force undischarged or unstayed for a period of sixty
      consecutive days; or

    

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

    

    (e) the
      Servicer shall admit in writing its inability generally to pay its debts 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

    

    (f) any
      failure of the Servicer to make any P&I Advance on any Remittance Date
      required to be made from its own funds pursuant to Section 4.01 which
      continues unremedied for one Business Day immediately following the Remittance
      Date; or

    

    (g) a
      breach
      of any representation and warranty of the Servicer referred to in
      Section 2.03(a) (including the Schedule II referenced therein), which
      materially and adversely affects the interests of the Certificateholders and
      which continues unremedied for a period of thirty days after the date upon
      which written notice of such breach is given to the Servicer by the Master
      Servicer or by the Depositor, or to the Servicer, the Master Servicer, the
      Depositor, the Securities Administrator and the Trustee by Certificateholders
      entitled to at least 25.00% of the Voting Rights in the Certificates;
      or

    

    (h) Fitch
      reduces its primary subprime servicer rating of the Servicer to “RPS3-“ or
      lower, Moody’s reduces its primary subprime servicer rating of the Servicer to
“SQ3” or lower, or Standard & Poor’s reduces its primary subprime servicer
      rating of the Servicer to “Average” or lower, and any such downgrade continues
      unremedied for a period of ninety days; or 

    
      
        
        

      

      
        -112-

        
          

        

      

      
        
        

      

    

    

    (i) any
      failure by the Servicer to duly perform, within the required time period, its
      obligations under Sections 3.02, 3.22, 3.23, 3.24, 3.29 or 8.12, or any other
      information, data or materials required to be provided hereunder, including
      any
      items required to be included in any Exchange Act report; provided, that in
      any
      given year in which the Servicer has received written confirmation from the
      Depositor that a Form 10-K is not required to be filed with the Commission
      in
      respect of the Trust for the preceding calendar year, there shall be a ten
      (10)
      day cure period applicable to the reporting requirements under Section 3.22
      and
      3.23; or

    

    If
      an
      Event of Default described in clauses (a) through (i) of this
      Section 7.01 shall occur, then, and in each and every such case, so long as
      such Event of Default shall not have been remedied, the Master Servicer (or,
      if
      the Master Servicer and the Servicer are the same entity, the Trustee) may,
      or
      at the direction of a majority of the Voting Rights shall, by notice in writing
      to the Servicer related to such Event of Default (with a copy to each Rating
      Agency and the Derivative Counterparty), terminate all of the rights and
      obligations of the Servicer under this Agreement and in and to the Mortgage
      Loans and the proceeds thereof, other than its rights as a Certificateholder
      hereunder; provided,
      however,
      that
      the Master Servicer or the Trustee (as successor master servicer), as
      applicable, shall not be required to give written notice to the Servicer of
      the
      occurrence of an Event of Default described in clauses (b) through
      (j) of this Section 7.01 unless and until a Responsible Officer of the
      Master Servicer or the Trustee (as successor master servicer), as applicable,
      has actual knowledge of the occurrence of such an event; provided further,
      that
      the Depositor shall give written notice to the Servicer, Master Servicer and
      the
      Trustee of the occurrence of an Event of Default described in
      clause (h) of this Section 7.01 upon obtaining actual knowledge
      of the occurrence of such an event. In the event that a Responsible Officer
      of
      the Master Servicer or the Trustee (as successor master servicer), as
      applicable, has actual knowledge of the occurrence of an event of default
      described in clause (a) or (f) of this Section 7.01, the Master
      Servicer or the Trustee (as successor master servicer), as applicable, shall
      give written notice to the Servicer of the occurrence of such an event within
      one Business Day of the first day on which such Responsible Officer obtains
      actual knowledge of such occurrence. On and after receipt by the Servicer of
      such written notice, all authority and power of the Servicer hereunder, whether
      with respect to the Mortgage Loans or otherwise, shall pass to and be vested
      in
      the Master Servicer or the Trustee (as successor master servicer), as
      applicable. Subject to Section 7.02, the Master Servicer or the Trustee (as
      successor master servicer), as applicable, is hereby authorized and empowered
      to
      execute and deliver, on behalf of the Servicer, as attorney-in-fact or
      otherwise, any and all documents and other instruments, and to do or accomplish
      all other acts or things necessary or appropriate to effect the purposes of
      such
      notice of termination, whether to complete the transfer and endorsement or
      assignment of the Mortgage Loans and related documents, or otherwise. Unless
      expressly provided in such written notice, no such termination shall affect
      any
      obligation of the Servicer to pay amounts owed pursuant to Article VIII.
      The Servicer agrees to cooperate with the Master Servicer or the Trustee, as
      applicable, in effecting the termination of the Servicer’s responsibilities and
      rights hereunder, including, without limitation, the transfer to the Master
      Servicer or the Trustee (as successor master servicer), as applicable, of all
      cash amounts which shall at the time be credited to the Collection Account,
      or
      thereafter be received with respect to the Mortgage Loans.

    

    Notwithstanding
      any termination of the activities of the Servicer hereunder, the Servicer shall
      be entitled to receive from the Trust Fund, prior to transfer of its servicing
      obligations hereunder, payment of all accrued and unpaid Servicing Fees and
      reimbursement for all outstanding P&I Advances and Servicing
      Advances.

    
      
        
        

      

      
        -113-

        
          

        

      

      
        
        

      

    

    

    Section
      7.02 Master
      Servicer to Act; Appointment of Successor.
      On and
      after the time the Servicer receives a notice of termination pursuant to
      Section 3.25 or Section 7.01, the Master Servicer or the Trustee (as
      successor master servicer), as applicable, shall, subject to and to the extent
      provided in Section 3.05, and subject to the rights of the Master Servicer
      or the Trustee (as successor master servicer), as applicable, to appoint a
      successor servicer pursuant to this Section 7.02, be the successor to the
      Servicer in its capacity as servicer under this Agreement and the transactions
      set forth or provided for herein and shall be subject to all the
      responsibilities, duties and liabilities relating thereto placed on the Servicer
      by the terms and provisions hereof and applicable law, including the obligation
      to make P&I Advances and Servicing Advances pursuant to Section 3.25 or
      Section 7.01. It is understood and acknowledged by the parties hereto that
      there will be a period of transition before the transfer of servicing
      obligations is fully effective. Notwithstanding the foregoing, the Master
      Servicer or the Trustee (as successor master servicer), as applicable, will
      have
      a period (not to exceed 90 days) to complete the transfer of all servicing
      data and correct or manipulate such servicing data as may be required by the
      Master Servicer or the Trustee (as successor master servicer), as applicable,
      to
      correct any errors or insufficiencies in the servicing data or otherwise enable
      the Master Servicer or the Trustee (as successor master servicer), as
      applicable, to service the Mortgage Loans in accordance with Accepted Servicing
      Practices. As compensation therefor, the Master Servicer or the Trustee (as
      successor master servicer), as applicable, shall be entitled to all funds
      relating to the Mortgage Loans that the Servicer would have been entitled to
      charge to the Collection Account if the Servicer had continued to act hereunder
      including, if the Servicer was receiving the Servicing Fee, the Servicing Fee
      and the income on investments or gain related to the Collection Account which
      the Servicer would be entitled to receive. Notwithstanding the foregoing, if
      the
      Master Servicer or the Trustee (as successor master servicer), as applicable,
      has become the successor to the Servicer in accordance with Section 7.01,
      the master servicer or the Trustee (as successor master servicer), as
      applicable, may, if it shall be unwilling to so act, or shall, if it is
      prohibited by applicable law from making P&I Advances and Servicing Advances
      pursuant to Section 4.01, if it is otherwise unable to so act, or at the
      written request of Certificateholders entitled to at least a majority of the
      Voting Rights, appoint, or petition a court of competent jurisdiction to
      appoint, any established mortgage loan servicing institution the appointment
      of
      which does not adversely affect the then current rating of the Certificates
      by
      each Rating Agency, as the successor to the Servicer hereunder in the assumption
      of all or any part of the responsibilities, duties or liabilities of the
      Servicer hereunder. Any successor to the Servicer shall make the covenant set
      forth in Section 6.02(b). Any successor to the Servicer shall be an
      institution which is willing to service the Mortgage Loans and which executes
      and delivers to the Depositor and the Master Servicer and the Trustee (as
      successor master servicer) an agreement accepting such delegation and
      assignment, containing an assumption by such Person of the rights, powers,
      duties, responsibilities, obligations and liabilities of the Servicer (other
      than liabilities of the Servicer under Section 6.03 incurred prior to
      termination of the Servicer under Section 7.01), with like effect as if
      originally named as a party to this Agreement; provided, that each Rating Agency
      acknowledges that its rating of the Certificates in effect immediately prior
      to
      such assignment and delegation will not be qualified or reduced, as a result
      of
      such assignment and delegation. Pending appointment of a successor to the
      Servicer hereunder, the Master Servicer or the Trustee (as successor master
      servicer), as applicable, unless such party is prohibited by law from so acting,
      shall, subject to Section 3.05, act in such capacity as hereinabove
      provided. In connection with such appointment and assumption, the Master
      Servicer or the Trustee (as successor master servicer), as applicable, may
      make
      such arrangements for the compensation of such successor out of payments on
      Mortgage Loans as it and such successor shall agree; provided, however, that
      no
      such compensation shall be in excess of the Servicing Fee Rate and amounts
      paid
      to the Servicer from investments. The Master Servicer or the Trustee (as
      successor master servicer), as applicable, and such successor servicer shall
      take such action, consistent with this Agreement, as shall be necessary to
      effectuate any such succession. Neither the Master Servicer, the Trustee (as
      successor master servicer), nor any other successor to the Servicer shall be
      deemed to be in default hereunder by reason of any failure to make, or any
      delay
      in making, any distribution hereunder or any portion thereof or any failure
      to
      perform, or any delay in performing, any duties or responsibilities hereunder,
      in either case caused by the failure of the Servicer to deliver or provide,
      or
      any delay in delivering or providing, any cash, information, documents or
      records to it.

    
      
        
        

      

      
        -114-

        
          

        

      

      
        
        

      

    

    

    Notwithstanding
      the foregoing, the parties hereto agree that the Master Servicer or the Trustee
      (as successor master servicer), as applicable, in its capacity as successor
      servicer, immediately shall assume all of the obligations of the Servicer to
      make Advances and the Master Servicer or the Trustee (as successor master
      servicer), as applicable, will assume the other duties of the Servicer as soon
      as practicable, but in no event later than 90 days after the Master Servicer
      or
      the Trustee (as successor master servicer), as applicable, becomes successor
      servicer pursuant to the preceding paragraph. If the Master Servicer or the
      Trustee (as successor master servicer) as applicable, acts as a successor
      servicer, it will have no obligation to make an Advance if it determines in
      its
      reasonable judgment that such Advance is nonrecoverable. Notwithstanding the
      foregoing, the Master Servicer or the Trustee (as successor master servicer),
      as
      applicable, in its capacity as successor servicer, shall not be responsible
      for
      the lack of information and/or documents that it cannot obtain through
      reasonable efforts; provided,
      however,
      that
      any failure to perform any duties or responsibilities caused by the Servicer’s
      failure to provide information required by this Agreement shall not be
      considered a default by the Trustee (as successor master servicer) hereunder.
      In
      the Trustee’s capacity as such successor, the Trustee (as successor master
      servicer) shall have the same limitations on liability herein granted to the
      Servicer.

    

    In
      the
      event that the Servicer is terminated pursuant to Section 7.01, the
      terminated Servicer shall provide notices to the Mortgagors, transfer the
      Servicing Files to a successor servicer and pay all of its own out-of-pocket
      costs and expenses at its own expense. In addition, in the event that the
      Servicer is terminated pursuant to Section 7.01, the terminated Servicer
      shall pay all reasonable out-of-pocket costs and expenses of a servicing
      transfer incurred by parties other than the terminated Servicer (including
      without limitation, any costs or expenses associated with the complete transfer
      of all servicing data and the completion, correction or manipulation of such
      servicing data, as may be required by the Master Servicer or the Trustee (as
      successor master servicer), as applicable, to correct any errors or
      insufficiencies in the servicing data or otherwise to enable the Master Servicer
      or the Trustee (as successor master servicer), as applicable, to service the
      Mortgage Loans properly and effectively), promptly upon presentation of
      reasonable documentation of such costs. If the Master Servicer or the Trustee
      (as successor Master Servicer), as applicable, is the terminated Servicer
      (except in the case where the Master Servicer in its role as successor servicer
      is being terminated pursuant to Section 7.01 by reason of an Event of
      Default caused solely by the Master Servicer as the successor servicer and
      not
      by the predecessor Servicer’s actions or omissions), such costs shall be paid by
      the prior terminated Servicer promptly upon presentation of reasonable
      documentation of such costs. If the terminated Servicer defaults in its
      obligation to pay such costs and expenses, the same shall be paid by the
      successor servicer, the Master Servicer or the Trustee (as successor Master
      Servicer), in which case the successor servicer, the Master Servicer or the
      Trustee (as successor master servicer), as applicable, shall be entitled to
      reimbursement therefor from the Trust Fund.

    
      
        
        

      

      
        -115-

        
          

        

      

      
        
        

      

    

    

    Any
      successor to the Servicer as servicer shall give notice to the Mortgagors of
      such change of servicer and shall, during the term of its service as servicer,
      maintain in force the policy or policies that the Servicer is required to
      maintain pursuant to Section 3.13.

    

    Section
      7.03 Notification
      to Certificateholders.
      (a)  Upon any termination of or appointment of a successor to the
      Servicer, the Securities Administrator shall give prompt written notice thereof
      to Certificateholders, each Rating Agency and the Derivative
      Counterparty.

    

    (b) Within
      60 days after the occurrence of any Event of Default, the Securities
      Administrator shall transmit by mail to all Certificateholders, each Rating
      Agency and the Derivative Counterparty notice of each such Event of Default
      hereunder known to the Securities Administrator, unless such event shall have
      been cured or waived.

    

    ARTICLE
      VIII

    

    CONCERNING
      THE TRUSTEE

    

    Section
      8.01 Duties
      of the Trustee.
      The
      Trustee, before the occurrence of a Master Servicer Event of Default and after
      the curing of all Master Servicer Events of Default that may have occurred,
      shall undertake to perform such duties and only such duties as are specifically
      set forth in this Agreement. In case a Master Servicer Event of Default has
      occurred and remains uncured, the Trustee shall exercise such of the rights
      and
      powers vested in it by this Agreement, and use the same degree of care and
      skill
      in their exercise as a prudent person would exercise or use under the
      circumstances in the conduct of such person’s own affairs.

    

    The
      Trustee, upon receipt of all resolutions, certificates, statements, opinions,
      reports, documents, orders or other instruments furnished to the Trustee that
      are specifically required to be furnished pursuant to any provision of this
      Agreement, shall examine them to determine whether they are in the form required
      by this Agreement. The Trustee shall not be responsible for the accuracy or
      content of any resolution, certificate, statement, opinion, report, document,
      order, or other instrument.

    

    No
      provision of this Agreement shall be construed to relieve the Trustee from
      liability for its own negligent action, its own negligent failure to act or
      its
      own willful misconduct.

    

    Unless
      an
      Event of Default known to the Trustee has occurred and is
      continuing:

    
      
        
        

      

      
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    (a) the
      duties and obligations of the Trustee shall be determined solely by the express
      provisions of this Agreement, the Trustee shall not be liable except for the
      performance of the duties and obligations specifically set forth in this
      Agreement, no implied covenants or obligations shall be read into this Agreement
      against the Trustee, and the Trustee may conclusively rely, as to the truth
      of
      the statements and the correctness of the opinions expressed therein, upon
      any
      certificates or opinions furnished to the Trustee and conforming to the
      requirements of this Agreement which it believes in good faith to be genuine
      and
      to have been duly executed by the proper authorities respecting any matters
      arising hereunder;

    

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

    

    (c) the
      Trustee shall not be liable with respect to any action taken, suffered, or
      omitted to be taken by it in good faith in accordance with the direction of
      the
      Holders of Certificates evidencing not less than 25.00% of the Voting Rights
      of
      Certificates relating to the time, method, and place of conducting any
      proceeding for any remedy available to the Trustee, or exercising any trust
      or
      power conferred upon the Trustee under this Agreement.

    

    Section
      8.02 Certain
      Matters Affecting the Trustee.
      Except
      as otherwise provided in Section 8.01:

    

    (a) the
      Trustee may 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
      Trustee shall have no responsibility to ascertain or confirm the genuineness
      of
      any signature of any such party or parties;

    

    (b) the
      Trustee may consult with counsel, financial advisers or accountants and the
      advice of any such counsel, financial advisers or accountants 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 advice or Opinion of Counsel;

    

    (c) the
      Trustee shall not be 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;

    

    (d) the
      Trustee shall not be bound to make any investigation into the facts or matters
      stated in any resolution, certificate, statement, instrument, opinion, report,
      notice, request, consent, order, approval, bond or other paper or document,
      unless requested in writing to do so by the Holders of Certificates evidencing
      not less than 25.00% of the Voting Rights allocated to each Class of
      Certificates;

    

    (e) the
      Trustee may execute any of the trusts or powers hereunder or perform any duties
      hereunder either directly or by or through agents, accountants, custodians,
      nominees or attorneys and the Trustee shall not be responsible for any
      misconduct or negligence on the part of any agents, accountants or attorneys
      appointed with due care by it hereunder;

    
      
        
        

      

      
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    (f) the
      Trustee shall not be required to risk or expend its own funds or otherwise
      incur
      any financial liability in the performance of any of its duties or in the
      exercise of any of its rights or powers hereunder if it shall have reasonable
      grounds for believing that repayment of such funds or indemnity satisfactory
      to
      it against such risk or liability is not assured to it;

    

    (g) the
      Trustee shall not be liable for any loss on any investment of funds pursuant
      to
      this Agreement;

    

    (h) unless
      a
      Responsible Officer of the Trustee has actual knowledge of the occurrence of
      a
      Master Servicer Event of Default or an Event of Default, the Trustee shall
      not
      be deemed to have knowledge of a Master Servicer Event of Default or an Event
      of
      Default until a Responsible Officer of the Trustee shall have received written
      notice thereof;

    

    (i) the
      Trustee shall be under no obligation to exercise any of the trusts, rights
      or
      powers vested in it by this Agreement or to institute, conduct or defend any
      litigation hereunder or in relation hereto at the request, order or direction
      of
      any of the Certificateholders, pursuant to this Agreement, unless such
      Certificateholders shall have offered to the Trustee reasonable security or
      indemnity satisfactory to the Trustee against the costs, expenses and
      liabilities which may be incurred therein or thereby; and

    

    (j) if
      the
      Trustee, in its role as successor master servicer under this Agreement, assumes
      the servicing or master servicing with respect to any of the Mortgage Loans,
      it
      shall not assume liability for the representations and warranties of the
      Servicer or Master Servicer, as applicable, or for any errors or omissions
      of a
      Servicer or Master Servicer, as applicable.

    

    (k) In
      order
      to comply with laws, rules, regulations and executive orders in effect from
      time
      to time applicable to banking institutions, including those relating to the
      funding of terrorist activities and money laundering (“Applicable Law”), the
      Trustee is required to obtain, verify and record certain information relating
      to
      individuals and entities which maintain a business relationship with the
      Trustee. Accordingly, each of the parties agrees to provide to the Trustee
      upon
      its request from time to time such identifying information and documentation
      as
      may be available to such party in order to enable the Trustee to comply with
      Applicable Law.

    

    Section
      8.03 Trustee
      Not Liable for Certificates or Mortgage Loans.
      The
      recitals contained herein and in the Certificates shall be taken as the
      statements of the Depositor and the Trustee assumes no responsibility for their
      correctness. The Trustee makes no representations as to the validity or
      sufficiency of this Agreement, the Cap Agreement, the Swap Agreement, or of
      the
      Certificates or of any Mortgage Loan or related document. The Trustee shall
      not
      be accountable for the use or application by the Depositor, the Master Servicer,
      the Servicer, the Securities Administrator or the Derivative Counterparty of
      any
      funds paid to the Depositor, the Master Servicer, the Servicer, the Securities
      Administrator or the Derivative Counterparty in respect of the Mortgage Loans
      or
      deposited in or withdrawn from the Collection Account, the Master Servicing
      Account, the Distribution Account or any other fund or account with respect
      to
      the Certificates by the Depositor, the Master Servicer, the Servicer, the
      Securities Administrator or the Derivative Counterparty.

    
      
        
        

      

      
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    The
      Trustee shall have no responsibility for filing or recording any financing
      or
      continuation statement in any public office at any time or to otherwise perfect
      or maintain the perfection of any security interest or lien granted to it
      hereunder.

    

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

    

    Section
      8.05 Trustee’s
      Fees Indemnification and Expenses.
      (a) As compensation for its activities under this Agreement, the Trustee
      shall be paid its fee by the Sponsor from the Sponsor’s own funds pursuant to a
      separate agreement. The Trustee shall have no lien on the Trust Fund for the
      payment of such fees. 

    

    (b) The
      Trustee shall be entitled to be reimbursed, from funds on deposit in the
      Distribution Account, amounts sufficient to indemnify and hold harmless the
      Trustee and any director, officer, employee, or agent of the Trustee against
      any
      loss, liability, or expense (including reasonable attorneys’ fees) incurred in
      connection with any claim or legal action relating to:

    

    (i) this
      Agreement,

    

    (ii) the
      Certificates, or

    

    (iii) the
      performance of any of the Trustee’s duties under this Agreement,

    

    other
      than any loss, liability, or expense (i) resulting from any breach of the
      Servicer’s obligations in connection with this Agreement for which the Servicer
      has performed its obligation to indemnify the Trustee pursuant to
      Section 6.05, (ii) resulting from any breach of the Originator’s
      obligations in connection with this Agreement for which the Originator has
      performed its obligation to indemnify the Trustee pursuant to
      Section 2.03(h), (iii) resulting from any breach of the Master
      Servicer’s obligation hereunder for which the Master Servicer has performed its
      obligation to indemnify the Trustee pursuant to this Agreement or
      (iv) incurred because of willful misconduct, bad faith, or negligence in
      the performance of any of the Trustee’s duties under this Agreement. Without
      limiting the foregoing, except as otherwise agreed upon in writing by the
      Depositor and the Trustee, and except for any expense, disbursement, or advance
      arising from the Trustee’s negligence, bad faith, or willful misconduct, the
      Trust Fund shall pay or reimburse the Trustee for all reasonable expenses,
      disbursements, and advances incurred or made by the Trustee in accordance with
      this Agreement with respect to:

    

    (A) the
      reasonable compensation, expenses, and disbursements of its counsel not
      associated with the closing of the issuance of the Certificates,
      and

    

    (B) the
      reasonable compensation, expenses, and disbursements of any accountant,
      engineer, or appraiser that is not regularly employed by the Trustee, to the
      extent that the Trustee must engage them to perform services under this
      Agreement.

    
      
        
        

      

      
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    The
      Trustee’s right to indemnity and reimbursement under this Section 8.05(b) shall
      survive the termination of this Agreement and the resignation or removal of
      the
      Trustee under this Agreement. 

    

    Except
      as
      otherwise provided in this Agreement or a separate letter agreement between
      the
      Trustee and the Depositor, the Trustee shall not be entitled to payment or
      reimbursement for any routine ongoing expenses incurred by the Trustee in the
      ordinary course of its duties as Trustee under this Agreement or for any other
      routine expenses incurred by the Trustee; provided,
      further,
      that no
      expense shall be reimbursed hereunder if it would not constitute an
“unanticipated expense incurred by the REMIC” within the meaning of the REMIC
      Provisions.

    

    The
      Trustee shall not be (a) liable for any acts or omissions of the Servicer (other
      than where the Trustee (as successor master servicer) is such Servicer), (b)
      obligated to make any Advance if it is prohibited from doing so under applicable
      law, (c) responsible for expenses of the Servicer (other than where the Trustee
      (as successor master servicer) is such Servicer) pursuant to the terms of this
      Agreement, (d) liable for any amount necessary to induce any successor servicer
      to act as successor servicer under this Agreement and enter into the
      transactions set forth or provided for therein.

    

    Section
      8.06 Eligibility
      Requirements for the Trustee.
      The
      Trustee hereunder shall at all times be a corporation or association organized
      and doing business under the laws of a state or the United States of America,
      authorized under such laws to exercise corporate trust powers, having a combined
      capital and surplus of at least $50,000,000, subject to supervision or
      examination by federal or state authority and with a credit rating which would
      not cause any of the Rating Agencies to reduce their respective then current
      ratings of the Certificates (or having provided such security from time to
      time
      as is sufficient to avoid such reduction) as evidenced in writing by each Rating
      Agency. If such corporation or association publishes reports of condition at
      least annually, pursuant to law or to the requirements of the aforesaid
      supervising or examining authority, then for the purposes of this
      Section 8.06 the combined capital and surplus of such corporation or
      association shall be deemed to be its combined capital and surplus as set forth
      in its most recent report of condition so published. In case at any time the
      Trustee shall cease to be eligible in accordance with this Section 8.06,
      the Trustee shall resign immediately in the manner and with the effect specified
      in Section 8.07. The entity serving as Trustee may have normal banking and
      trust relationships with the Depositor and its affiliates, the Master Servicer,
      the Securities Administrator or the Servicer and its affiliates; provided,
      however, that such entity cannot be an affiliate of the Depositor or the
      Servicer other than the Trustee in its role as successor to the Master
      Servicer.

    

    Section
      8.07 Resignation
      and Removal of the Trustee.
      The
      Trustee may at any time resign and be discharged from the trusts hereby created
      by giving written notice of resignation to the Depositor, the Master Servicer,
      the Securities Administrator and each Rating Agency not less than 60 days
      before the date specified in such notice, when, subject to Section 8.08,
      such resignation is to take effect and acceptance by a successor trustee in
      accordance with Section 8.08 meeting the qualifications set forth in
      Section 8.06. If no successor trustee meeting such qualifications shall
      have been so appointed and have accepted appointment within 30 days after
      the giving of such notice or resignation, the resigning Trustee may petition
      any
      court of competent jurisdiction for the appointment of a successor
      trustee.

    
      
        
        

      

      
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    If
      at any
      time the Trustee shall cease to be eligible in accordance with Section 8.06
      and shall fail to resign after written request thereto by the Depositor, or
      if
      at any time the Trustee shall become incapable of acting, or shall be adjudged
      as bankrupt or insolvent, or a receiver of the Trustee or of its property shall
      be appointed, or any public officer shall take charge or control of the Trustee
      or of its property or affairs for the purpose of rehabilitation, conservation
      or
      liquidation, or a tax is imposed with respect to the Trust Fund by any state
      in
      which the Trustee or the Trust Fund is located and the imposition of such tax
      would be avoided by the appointment of a different trustee, then the Depositor
      or the Servicer may remove the Trustee and, subject to the approval of the
      Rating Agencies, appoint a successor trustee by written instrument, in
      triplicate, one copy of which shall be delivered to the Trustee, one copy to
      the
      Servicer and one copy to the successor trustee.

    

    The
      Holders of Certificates entitled to at least a majority of the Voting Rights
      may
      at any time remove the Trustee and, subject to the approval of the Rating
      Agencies, appoint a successor trustee by written instrument or instruments,
      in
      triplicate, signed by such Holders or their attorneys-in-fact duly authorized,
      one complete set of which shall be delivered by the successor Trustee to the
      Servicer, one complete set to the Trustee so removed and one complete set to
      the
      successor so appointed. The successor trustee shall notify each Rating Agency
      of
      any removal of the Trustee.

    

    Any
      resignation or removal of the Trustee and appointment of a successor trustee
      pursuant to this Section 8.07 shall become effective upon acceptance of
      appointment by the successor trustee as provided in
      Section 8.08.

    

    Section
      8.08 Successor
      Trustee.
      Any
      successor trustee appointed as provided in Section 8.07 shall execute,
      acknowledge and deliver to the Depositor and to its predecessor trustee and
      the
      Servicer an instrument accepting such appointment hereunder and thereupon the
      resignation or removal of the predecessor trustee shall become effective and
      such successor trustee, without any further act, deed or conveyance, shall
      become fully vested with all the rights, powers, duties and obligations of
      its
      predecessor hereunder, with like effect as if originally named as trustee
      herein. The Depositor and the predecessor trustee shall execute and deliver
      such
      instruments and do such other things as may reasonably be required for more
      fully and certainly vesting and confirming in the successor trustee all such
      rights, powers, duties, and obligations.

    

    No
      successor trustee shall accept appointment as provided in this Section 8.08
      unless at the time of its acceptance, the successor trustee is eligible under
      Section 8.06 and its appointment does not adversely affect then the current
      rating of the Certificates.

    

    Upon
      acceptance of appointment by a successor trustee as provided in this
      Section 8.08, the Depositor shall mail notice of the succession of such
      trustee hereunder to all Holders of Certificates. If the Depositor fails to
      mail
      such notice within 10 days after acceptance of appointment by the successor
      trustee, the successor trustee shall cause such notice to be mailed at the
      expense of the Depositor.

    
      
        
        

      

      
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    Section
      8.09 Merger
      or Consolidation of the Trustee.
      Any
      corporation into which the Trustee may be merged or converted or with which
      it
      may be consolidated or any corporation resulting from any merger, conversion
      or
      consolidation to which the Trustee shall be a party, or any corporation
      succeeding to the business of the Trustee, shall be the successor of the Trustee
      hereunder; provided, that such corporation shall be eligible under
      Section 8.06 without the execution or filing of any paper or further act on
      the part of any of the parties hereto, anything herein to the contrary
      notwithstanding.

    

    Section
      8.10 Appointment
      of Co-Trustee or Separate Trustee.
      Notwithstanding any other provisions of this Agreement, at any time, for the
      purpose of meeting any legal requirements of any jurisdiction in which any
      part
      of the Trust Fund or property securing any Mortgage Note may at the time be
      located, the Trustee shall have the power and shall execute and deliver all
      instruments to appoint one or more Persons approved by the Trustee to act as
      co-trustee or co-trustees jointly with the Trustee, or separate trustee or
      separate trustees, of all or any part of the Trust Fund, and to vest in such
      Person or Persons, in such capacity and for the benefit of the
      Certificateholders, such title to the Trust Fund or any part thereof, whichever
      is applicable, and, subject to the other provisions of this Section 8.10,
      such powers, duties, obligations, rights and trusts as the Servicer and the
      Trustee may consider appropriate. No co-trustee or separate trustee hereunder
      shall be required to meet the terms of eligibility as a successor trustee under
      Section 8.06 and no notice to Certificateholders of the appointment of any
      co-trustee or separate trustee shall be required under
      Section 8.08.

    

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

    

    (a) To
      the
      extent necessary to effectuate the purposes of this Section 8.10, all
      rights, powers, duties and obligations conferred or imposed upon the Trustee,
      except for the obligation of the Trustee (as successor master servicer) under
      this Agreement to advance funds on behalf of the Master Servicer, shall be
      conferred or imposed upon and exercised or performed by the Trustee and such
      separate trustee or co-trustee jointly (it being understood that such separate
      trustee or co-trustee is not authorized to act separately without the Trustee
      joining in such act), except to the extent that under any law of any
      jurisdiction in which any particular act or acts are to be performed (whether
      as
      Trustee hereunder or as successor to the Master Servicer hereunder), the Trustee
      shall be incompetent or unqualified to perform such act or acts, in which event
      such rights, powers, duties and obligations (including the holding of title
      to
      the applicable Trust Fund or any portion thereof in any such jurisdiction)
      shall
      be exercised and performed singly by such separate trustee or co-trustee, but
      solely at the direction of the Trustee;

    

    (b) No
      trustee hereunder shall be held personally liable because of any act or omission
      of any other trustee hereunder and such appointment shall not, and shall not
      be
      deemed to, constitute any such separate trustee or co-trustee as agent of the
      Trustee;

    

    (c) The
      Trustee may at any time accept the resignation of or remove any separate trustee
      or co-trustee; and

    
      
        
        

      

      
        -122-

        
          

        

      

      
        
        

      

    

    

    (d) The
      Trust
      Fund, and not the Trustee, shall be liable for the payment of reasonable
      compensation, reimbursement and indemnification to any such separate trustee
      or
      co-trustee.

    

    Any
      notice, request or other writing given to the Trustee shall be deemed to have
      been given to each of the separate trustees and co-trustees, when and as
      effectively as if given to each of them. Every instrument appointing any
      separate trustee or co-trustee shall refer to this Agreement and the conditions
      of this Article VIII. Each separate trustee and co-trustee, upon its
      acceptance of the trusts conferred, shall be vested with the estates or property
      specified in its instrument of appointment, either jointly with the Trustee
      or
      separately, as may be provided therein, subject to all the provisions of this
      Agreement, specifically including every provision of this Agreement relating
      to
      the conduct of, affecting the liability of, or affording protection and
      indemnity to, the Trustee. Every such instrument shall be filed with the Trustee
      and a copy thereof given to the Master Servicer and the Depositor.

    

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

    

    Section
      8.11 Tax
      Matters.
      It is
      intended that the assets with respect to which any REMIC election pertaining
      to
      the Trust Fund is to be made, as set forth in the Preliminary Statement, shall
      constitute, and that the conduct of matters relating to such assets shall be
      such as to qualify such assets as, a “real estate mortgage investment conduit”
as defined in and in accordance with the REMIC Provisions. In furtherance of
      such intention, the Securities Administrator covenants and agrees that it shall
      act as agent (and the Securities Administrator is hereby appointed to act as
      agent) on behalf of each REMIC created hereunder and that in such capacity
      it
      shall:

    

    (a) prepare
      and file in a timely manner, a U.S. Real Estate Mortgage Investment Conduit
      (REMIC) Income Tax Return (Form 1066 or any successor form adopted by the
      Internal Revenue Service), which return the Trustee shall sign upon receipt
      from
      the Securities Administrator, and the Securities Administrator shall prepare
      and
      file with the Internal Revenue Service and applicable state or local tax
      authorities income tax or information returns for each taxable year with respect
      to each REMIC hereunder containing such information and at the times and in
      the
      manner as may be required by the Code or state or local tax laws, regulations,
      or rules, and furnish to Certificateholders the schedules, statements or
      information at such times and in such manner as may be required
      thereby;

    

    (b) within
      thirty days of the Closing Date, apply for an employer identification
      number from the Internal Revenue Service via Form SS-4 or any other
      acceptable method for all tax entities and shall also furnish to the Internal
      Revenue Service, on Form 8811 or as otherwise may be required by the Code,
      the name, title, address, and telephone number of the person that the holders
      of
      the Certificates may contact for tax information relating thereto, together
      with
      such additional information as may be required by such Form, and update such
      information at the time or times in the manner required by the
      Code;

    
      
        
        

      

      
        -123-

        
          

        

      

      
        
        

      

    

    

    (c) make
      an
      election that each REMIC created hereunder be treated as a REMIC on the federal
      tax return for its first taxable year (and, if necessary, under applicable
      state
      law);

    

    (d) prepare
      and forward to the Certificateholders and to the Internal Revenue Service and,
      if necessary, state tax authorities, all information returns and reports as
      and
      when required to be provided to them in accordance with the REMIC Provisions,
      including the calculation of any original issue discount using the prepayment
      assumption (as described in the Prospectus Supplement);

    

    (e) provide
      information necessary for the computation of tax imposed on the transfer of
      a
      Residual Certificate to a Person that is a Non-Permitted Transferee, or an
      agent
      (including a broker, nominee or other middleman) of a Non-Permitted Transferee,
      or a pass-through entity in which a Non-Permitted Transferee is the record
      holder of an interest (the reasonable cost of computing and furnishing such
      information may be charged to the Person liable for such tax);

    

    (f) to
      the
      extent that they are under its control, conduct matters relating to such assets
      at all times that any Certificates are outstanding so as to maintain the status
      of each REMIC created hereunder as a REMIC under the REMIC
      Provisions;

    

    (g) not
      knowingly or intentionally take any action or omit to take any action that
      would
      cause the termination of the REMIC status of any of the REMICs created
      hereunder;

    

    (h) pay,
      from
      the sources specified in the last paragraph of this Section 8.11, the
      amount of any federal or state tax, including prohibited transaction taxes
      as
      described below, imposed on each REMIC created hereunder before its termination
      when and as the same shall be due and payable (but such obligation shall not
      prevent the Securities Administrator or any other appropriate Person from
      contesting any such tax in appropriate proceedings and shall not prevent the
      Securities Administrator from withholding payment of such tax, if permitted
      by
      law, pending the outcome of such proceedings);

    

    (i) cause
      federal, state or local income tax or information returns to be signed by the
      Securities Administrator or, if required by applicable tax law, the Trustee
      or
      such other person as may be required to sign such returns by the Code or state
      or local laws, regulations or rules; and

    

    (j) maintain
      records relating to each REMIC created hereunder, including the income,
      expenses, assets, and liabilities thereof on a calendar year basis and on the
      accrual method of accounting and the adjusted basis of the assets determined
      at
      such intervals as may be required by the Code, as may be necessary to prepare
      the foregoing returns, schedules, statements or information.

    

    (k) The
      Holder of the largest Percentage Interest of the Class R Certificates shall
      act as Tax Matters Person for each REMIC created hereunder, within the meaning
      of Treasury Regulations Section 1.860F-4(d), and the Securities
      Administrator is hereby designated as agent of such Certificateholder for such
      purpose (or if the Securities Administrator is not so permitted, such Holder
      shall be the Tax Matters Person in accordance with the REMIC Provisions). In
      such capacity, the Securities Administrator shall, as and when necessary and
      appropriate, represent each REMIC created hereunder in any administrative or
      judicial proceedings relating to an examination or audit by any governmental
      taxing authority, request an administrative adjustment as to any taxable year
      of
      each REMIC created hereunder, enter into settlement agreements with any
      governmental taxing agency, extend any statute of limitations relating to any
      tax item of each REMIC created hereunder, and otherwise act on behalf of each
      REMIC in relation to any tax matter or controversy involving it.

    
      
        
        

      

      
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    (l) The
      Securities Administrator shall treat the beneficial owners of the Certificates
      (other than the Class P, Class X and Class R Certificates) as having entered
      into a notional principal contract with the beneficial owners of the Class
      X
      Certificates. Pursuant to each such notional principal contract, all beneficial
      owners of the LIBOR Certificates shall be treated as having agreed to pay,
      on
      each Distribution Date, to the beneficial owners of the Class X Certificates
      an
      aggregate amount equal to the excess, if any, of (i) the amount payable on
      such
      Distribution Date on the interest in the Upper Tier REMIC corresponding to
      such
      Class of Certificates over (ii) the amount payable on such Class of Certificates
      on such Distribution Date (such excess, a “Class I Shortfall”). A Class I
      Shortfall payable from interest collections shall be allocated to each Class
      of
      Certificates (other than the Class P, Class X and Class R Certificates) to
      the
      extent that interest accrued on such Class for the related Interest Accrual
      Period at the Interest Rate for a Class, computed by substituting “REMIC 2 Net
      Funds Cap” for “Group I Available Funds Cap,” “Group II Available Funds Cap” or
“Class M Available Funds Cap,” as applicable, exceeds the amount of interest
      accrued for the related Interest Accrual Period based on the applicable
      Available Funds Cap, and a Class I Shortfall payable from principal collections
      shall be allocated to the most subordinate Class of Certificates with an
      outstanding principal balance to the extent of such balance. In addition,
      pursuant to such notional principal contract, the beneficial owner of the Class
      X Certificates shall be treated as having agreed to pay Basis Risk Carryover
      Amounts to the Owners of the LIBOR Certificates in accordance with the terms
      of
      this Agreement. Any payments to the Certificates in light of the foregoing
      shall
      not be payments with respect to a “regular interest” in a REMIC within the
      meaning of Code Section 860G(a)(1). However, any payment from the Certificates
      of a Class I Shortfall shall be treated for tax purposes as having been received
      by the beneficial owners of such Certificates in respect of their Interests
      in
      the Upper Tier REMIC and as having been paid by such beneficial owners to the
      Supplemental Interest Trust pursuant to the notional principal
      contract. Thus,
      each Certificate (other than a Class P and Class R Certificate) shall be treated
      as representing not only ownership of regular interests in the Upper Tier REMIC,
      but also ownership of an interest in (and obligations with respect to) a
      notional principal contract. For tax purposes, the notional principal contract
      shall be deemed to have a value in favor of the Certificates entitled to receive
      Basis Risk Carryover Amounts of $10,000 as of the Closing Date.

    

    Notwithstanding
      the priority and sources of payments set forth in Article IV hereof or
      otherwise, the Securities Administrator shall account for all distributions
      on
      the Certificates as set forth in this Section 8.11. In no event shall any
      payments of Basis Risk Carryover Amounts provided for in this Section 8.11
      be
      treated as payments
      with respect to a “regular interest” in a REMIC within the meaning of Code
      Section 860G(a)(1). The
      Securities Administrator shall file or cause to be filed with the IRS together
      with Form 1041 or such other form as may be applicable and shall furnish or
      cause to be furnished, to the Class X Certificateholders and the LIBOR
      Certificateholders, the respective amounts described above that are received,
      in
      the time or times and in the manner required by the Code.

    
      
        
        

      

      
        -125-

        
          

        

      

      
        
        

      

    

    

    (m) To
      enable
      the Securities Administrator to perform its duties under this Agreement, the
      Depositor shall provide to the Securities Administrator within ten days
      after the Closing Date all information or data that the Securities Administrator
      requests in writing and determines to be relevant for tax purposes to the
      valuations and offering prices of the Certificates, including the price, yield,
      prepayment assumption, and projected cash flows of the Certificates and the
      Mortgage Loans. Moreover, the Depositor shall provide information to the
      Securities Administrator concerning the value to each Class of Certificates
      of the right to receive Basis Risk Carryover Amounts from the Excess Reserve
      Fund Account. Unless otherwise advised by the Depositor, for federal income
      tax
      purposes, the Securities Administrator is hereby directed to assign a value
      of
      zero to the right of each Holder allocating the purchase price of an initial
      Offered Certificateholder between such right and the related Upper Tier Regular
      Interest. Thereafter, the Depositor shall provide to the Securities
      Administrator promptly upon written request therefor any additional information
      or data that the Securities Administrator may, from time to time, reasonably
      request to enable the Securities Administrator to perform its duties under
      this
      Agreement; provided,
      however,
      that
      the Depositor shall not be required to provide any information regarding the
      Mortgage Loans that the Servicer is required to provide to the Securities
      Administrator pursuant to this Agreement. The Depositor hereby indemnifies
      the
      Securities Administrator for any losses, liabilities, damages, claims, or
      expenses of the Securities Administrator arising from any errors or
      miscalculations of the Securities Administrator that result from any failure of
      the Depositor to provide, pursuant to this paragraph, accurate information
      or
      data to the Securities Administrator on a timely basis.

    

    (n) None
      of the Master Servicer, the Securities Administrator or the Trustee shall (i)
      permit the creation of any interests in any REMIC other than the regular and
      residual interests set forth in the Preliminary Statement, (ii) receive any
      amount representing a fee or other compensation for services (except as
      otherwise permitted by this Agreement or the related Mortgage Loan documents)
      or
      (iii) otherwise knowingly or intentionally take any action, cause the Trust
      Fund
      to take any action or fail to take (or fail to cause to be taken) any action
      reasonably within its control and the scope of duties more specifically set
      forth herein, that, under the REMIC Provisions, if taken or not taken, as the
      case may be, could (i) endanger the status of any REMIC as a REMIC or (ii)
      result in the imposition of a tax upon any REMIC or the Trust Fund (including
      but not limited to the tax on “prohibited transactions” as defined in Section
      860F(a)(2) of the Code and the tax on contributions to a REMIC set forth in
      Section 860G(d) of the Code, or the tax on “net income from foreclosure
      property”) unless the Securities Administrator receives an Opinion of Counsel
      (at the expense of the party seeking to take such action or, if such party
      fails
      to pay such expense, and the Securities Administrator determines that taking
      such action is in the best interest of the Trust Fund and the
      Certificateholders, at the expense of the Trust Fund, but in no event at the
      expense of the Securities Administrator) to the effect that the contemplated
      action will not, with respect to the Trust Fund or any REMIC created hereunder,
      endanger such status or result in the imposition of such a tax).

    
      
        
        

      

      
        -126-

        
          

        

      

      
        
        

      

    

    

    (o) If
      any
      tax is imposed on “prohibited transactions” of a REMIC created hereunder as
      defined in Section 860F(a)(2) of the Code, on the “net income from
      foreclosure property” of any REMIC created hereunder as defined in
      Section 860G(c) of the Code, on any contribution to any REMIC created
      hereunder after the Startup Day pursuant to Section 860G(d) of the Code, or
      any other tax is imposed, including any minimum tax imposed on either REMIC
      pursuant to Sections 23153 and 24874 of the California Revenue and Taxation
      Code, if not paid as otherwise provided for herein, the tax shall be paid by
      (i) the Master Servicer, the Trustee, or the Securities Administrator, as
      applicable, if such tax arises out of or results from negligence of the Master
      Servicer, the Trustee or the Securities Administrator, as applicable, in the
      performance of any of its obligations under this Agreement, (ii) the Originator
      if such tax arises out of or results from the Originator’s obligation to
      repurchase a Mortgage Loan pursuant to Section 2.03, (iii) the Sponsor, if
      such
      tax arises out of or results from the Sponsor’s obligation to repurchase a
      Mortgage Loan pursuant to Section 2.03(k), (iv) the Servicer, in the case of
      any
      such minimum tax, and otherwise if such tax arises out of or results from a
      breach by the Servicer of any of its obligations under this Agreement, or
      (v) in all other cases, or if any party fails to honor its obligations
      under the preceding clauses (i) through (iv), any such tax will be
      paid with amounts otherwise to be distributed to the Certificateholders, as
      provided in Section 4.02(a).

    

    Section
      8.12 Commission
      Reporting.
      (a) The
      Securities Administrator shall, in accordance with industry standards, prepare
      (for execution by the Master Servicer) and file with the Commission, via EDGAR,
      the following reports in respect of the Trust as and to the extent required
      under the Exchange Act: 

    

    (i) (A)
      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 related Monthly Statement attached
      thereto. Any disclosure in addition to the Monthly Statement 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 V 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 the inaccuracy of any Additional 10-D Disclosure provided by
      any
      party other than the Securities Administrator, or for any failure hereunder
      to
      determine or prepare any Additional Form 10-D Disclosure, except to the extent
      of its obligations set forth in the next paragraph. 

    

    (B)
      As
      set forth on Exhibit V hereto, within 5 calendar days after the related
      Distribution Date, (i) the parties specified in Exhibit V hereto, shall be
      required to provide to the Securities Administrator and to the Depositor, to
      the
      extent known, in EDGAR-compatible format, or in such other format as agreed
      upon
      by the Securities Administrator and such party, the form and substance of any
      Additional Form 10-D Disclosure, if applicable, together with an Additional
      Disclosure Notification, and (ii) the Depositor will 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 has no duty
      under this Agreement to monitor or enforce the performance by the parties listed
      on Exhibit V of their duties under this paragraph or proactively solicit or
      procure from such parties any Additional Form 10-D Disclosure information.
      The
      Depositor shall 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.

    
      
        
        

      

      
        -127-

        
          

        

      

      
        
        

      

    

    

    (C)
      After
      preparing the Form 10-D, the Securities Administrator shall, upon request,
      forward electronically a copy of the Form 10-D to the Depositor (provided that
      such Form 10-D includes any Additional Form 10-D Disclosure). Within two
      Business Days after receipt of such copy, but no later than the 12th
      calendar
      day after the Distribution Date, 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 receipt of any written
      changes or approval, or if the Depositor does not request a copy of a Form
      10-D,
      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 process
      for
      execution and filing of the Form 10-D. A duly authorized representative 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 paragraph (d) of this
      Section 8.12. Each party to this Agreement acknowledges that the performance
      by
      each of the Master Servicer and the Securities Administrator of its duties
      under
      this Section 8.12(a)(i) related to the timely preparation, 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 8.12(a)(i).
      The
      Depositor acknowledges that the performance by each of the Master Servicer
      and
      the Securities Administrator of its duties under this Section 8.12(i) related
      to
      the timely preparation, execution and filing of Form 10-D is also contingent
      upon 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
      Additional Form 10-D Disclosure pursuant to any 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, execute and/or timely file such Form 10-D, 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
      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. 

    

    (D)
       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 instructs the
      Securities Administrator to check “Yes” for each item, unless 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, that the answer to either item should be “no.” The
      Depositor 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 Depositor was required to file such reports) and it has been subject to
      such
      filing requirement for the past 90 days.” The Securities Administrator shall be
      entitled to rely on such representations in preparing, executing and/or filing
      any such Form 10-D.

    
      
        
        

      

      
        -128-

        
          

        

      

      
        
        

      

    

    

    (ii) (A)
      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), for so long as the Depositor is required to file reports with respect
      to
      the Trust under the Exchange Act, commencing in March 2008, the Securities
      Administrator shall prepare (for execution by the Master Servicer) 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, (i) an annual
      compliance statement for the Servicer and the Master Servicer and any Servicing
      Function Participant engaged by any such party (together with the Custodian
      and
      the Securities Administrator, each a “Reporting
      Servicer”)
      as
      described under Section 3.24(b), (ii)(A) the annual reports on assessment of
      compliance with Servicing Criteria for each Reporting Servicer, as described
      under Section 3.22, and (B) if any Reporting Servicer’s report on assessment of
      compliance with Servicing Criteria described under Section 3.22 identifies
      any
      material instance of noncompliance, disclosure identifying such instance of
      noncompliance, or if any Reporting Servicer’s report on assessment of compliance
      with Servicing Criteria described under Section 3.22 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 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 registered public accounting firm attestation report for each
      Reporting Servicer, as described under Section 3.23, and (B) if any registered
      public accounting firm attestation report described under Section 3.23
      identifies any material instance of noncompliance, disclosure identifying such
      instance of noncompliance, or if any such registered public accounting firm
      attestation report 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, and (iv) a Sarbanes-Oxley Certification as described in Section 3.24.
      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 W 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-K Disclosure, except to the extent of its obligations set forth in the next
      paragraph. 

    
      
        
        

      

      
        -129-

        
          

        

      

      
        
        

      

    

    

    (B)
      As
      set forth on Exhibit W hereto, no later than March 10 (with a 5 calendar day
      cure period, but in no event later than March 15) of each year that the Trust
      is
      subject to the Exchange Act reporting requirements, commencing in 2008, (i)
      the
      parties specified on Exhibit W shall be required to provide to the Securities
      Administrator and to the Depositor, to the extent known, in EDGAR-compatible
      format, or in such other format as agreed upon by the Securities Administrator
      and such party, the form and substance of any Additional Form 10-K Disclosure,
      if applicable, together with an Additional Disclosure Notification, and (ii)
      the
      Depositor will 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 has no duty under this Agreement to monitor or enforce
      the performance by the parties listed on Exhibit W 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 Section 8.12 (a) (ii) (B).

    

    (C)
      After
      preparing the Form 10-K, the Securities Administrator shall, upon request,
      forward electronically a copy of the Form 10-K to the Depositor. Within three
      Business Days after receipt of such copy, but no later than March 25th
      in any
      year in which the Trust is subject to the reporting requirements of the Exchange
      Act, commencing in March 2008, 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. In the absence of receipt of any written
      changes or approval, or if the Depositor does not request a copy of a Form
      10-K,
      the Securities Administrator shall be entitled to assume that such Form 10-K
      is
      in final form and the Securities Administrator may proceed with the process
      for
      execution and filing of the 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
      paragraph (d) of this Section 8.12. The parties to this Agreement acknowledge
      that the performance by the Securities Administrator of its duties under this
      Section 8.12(a)(ii) related to the timely preparation, 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 8.12(a)(ii)
      and
      Sections 3.22, 3.23 and 3.24. The Depositor acknowledges that the performance
      by
      the Master Servicer and the Securities Administrator of its duties under this
      Section 8.12(ii) related to the timely preparation, execution and filing of
      Form
      10-K is also contingent upon 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 Additional Form 10-K Disclosure, any annual
      statement of compliance and any assessment of compliance and attestation
      pursuant to any 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, execute
      and/or timely file such Form 10-K, where such failure results from the
      Securities Administrator’s inability or failure to obtain or receive, on a
      timely basis, any information from any other party hereto or any 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.

    
      
        
        

      

      
        -130-

        
          

        

      

      
        
        

      

    

    

    (D) 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 requirement for the past 90 days.” The Depositor hereby instructs the
      Securities Administrator to check “Yes” for each item, unless the Depositor
      shall notify the Securities Administrator in writing, no later than the
      15th
      calendar
      day of March in any year in which the Trust is subject to the reporting
      requirements of the Exchange Act, commencing in March 2008, that the answer
      to
      either item should be “no.” The Depositor 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 Depositor was required to file such
      reports) and it has been subject to such filing requirement for the past 90
      days.” The Securities Administrator shall be entitled to rely on such
      representations in preparing, executing and/or filing any such Form 10-K.

    

    (iii) (A)
      Within four (4) Business Days after the occurrence of an event requiring
      disclosure on Form 8-K and (each such event, a “Reportable
      Event”),
      if
      directed by the Depositor, the Securities Administrator shall prepare and file
      on behalf of the Trust Fund any Form 8-K, as required by the Exchange Act,
      provided
      that the
      Depositor shall file the initial Form 8-K 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 (“Form
      8-K Disclosure Information”)
      shall
      be reported by the parties set forth on Exhibit X 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 Form 8-K
      Disclosure Information or any Form 8-K, except to the extent of its obligations
      set forth in the next paragraph. 

    

    (B)
      As
      set forth on Exhibit X hereto, for so long as the Trust is subject to the
      Exchange Act reporting requirements, no later than the close of business New
      York City time on the 2nd Business Day after the occurrence of a Reportable
      Event (i) the parties hereto shall be required to provide to the Securities
      Administrator and the Depositor, to the extent known, in EDGAR-compatible
      format, or in such other format as agreed upon by the Securities Administrator
      and such party, the form and substance of any Form 8-K Disclosure Information,
      if applicable, together with an Additional Disclosure Notification, and (ii)
      the
      Depositor will approve, as to form and substance, or disapprove, as the case
      may
      be, the inclusion of the 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. 

    
      
        
        

      

      
        -131-

        
          

        

      

      
        
        

      

    

    

    (C)
      After
      preparing the Form 8-K, the Securities Administrator shall, upon request,
      forward electronically a copy of the Form 8-K to the Depositor. Promptly, but
      no
      later than the close of business on the third 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 written changes or approval, or if the
      Depositor does not request a copy of a Form 8-K, 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 process for execution and filing
      of the Form 8-K. A duly authorized representative of the Master Servicer shall
      sign each 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 paragraph (d) of this Section 8.12. The parties to
      this
      Agreement acknowledge that the performance by the Securities Administrator
      of
      its duties under this Section 8.12(d)(iii) related to the timely preparation,
      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 8.12(d)(iii). The Depositor acknowledges that the performance by the
      Master Servicer and the Securities Administrator of its duties under this
      Section 8.12(iii) related to the timely preparation, execution and filing of
      Form 8-K is also contingent upon 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 any applicable agreement. The Securities Administrator shall have no
      liability for any loss, expense, damage, claim arising out of or with respect
      to
      any failure to properly prepare and/or timely file such Form 8-K, where such
      failure results from the Securities Administrator’s inability or failure to
      obtain or receive, on a timely basis, any information from any other party
      hereto or any 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.

    

    (b) The
      Depositor acknowledges and agrees that the Securities Administrator may include
      in any Exchange Act report all relevant information, data, and exhibits as
      the
      Securities Administrator may receive in connection with such report irrespective
      of any provision or Regulation AB that may permit the exclusion of such
      material. By the way of example, the Securities Administrator may file all
      assessments of compliance, attestation reports and compliance statements timely
      received from any Item 1122 Servicing Function Participant irrespective of
      any
      applicable minimum pool asset percentage requirement for disclosure related
      to
      such Servicing Function Participant.

    

    (c) The
      Depositor agrees to furnish promptly to the Securities Administrator, from
      time
      to time upon request, such additional information, data, reports, documents,
      and
      financial statements within the Depositor’s possession or control as the
      Securities Administrator reasonably requests as necessary or appropriate to
      prepare and file the foregoing reports. The Securities Administrator shall
      make
      available to the Depositor copies of all Exchange Act reports filed
      hereunder.

    
      
        
        

      

      
        -132-

        
          

        

      

      
        
        

      

    

    

     

    

    (d)
      (i) On
      or
      before January 30 of the first year in which the Securities Administrator is
      able to do so under applicable law, the Securities Administrator shall prepare
      and file a Form 15 relating to the automatic suspension of reporting in respect
      of the Trust under the Exchange Act. 

    

    (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, 10-D or 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
      promptly notify electronically the Depositor. In the case of Form 10-D and
      10-K,
      the parties to this Agreement will cooperate to prepare and file a Form 12b-25
      and a 10-DA and 10-KA 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, 10-D or 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 the purpose of restating any Monthly Statement), Additional
      Form 10-K Disclosure or Form 8-K Disclosure Information, the Securities
      Administrator will notify electronically the Depositor and such other parties
      to
      this Agreement as are affected by this Amendment and such parties will cooperate
      to prepare any necessary 8-KA, 10-DA or 10-KA. Any Form 15, Form 12b-25 or
      any
      amendment to Form 8-K, 10-D or 10-K shall be signed by a duly authorized
      representative or senior officer in charge of master servicing, as applicable,
      of the Master Servicer. The parties to this Agreement acknowledge that the
      performance by each of the Master Servicer and the Securities Administrator
      of
      its duties under this Section 8.12(d) related to the timely preparation,
      execution and filing of Form 15, a Form 12b-25 or any amendment to Form 8-K,
      10-D or 10-K is contingent upon each such party performing its duties under
      this
      Section. 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, execute and/or timely file any
      such
      Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, where such
      failure results from the Securities Administrator’s inability or failure to
      obtain or receive, on a timely basis, any information from any other party
      hereto 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,
      10-D
      or 10-K, not resulting from its own negligence, bad faith or willful misconduct.
      The Depositor shall be responsible for all costs and expenses of the Securities
      Administrator related to the preparation and filing of any such amendment.
      Notwithstanding the foregoing, if any Form 10-D needs to be amended solely
      to
      change the information contained in the Monthly Statement, the Securities
      Administrator shall not be required to notify the Depositor of such
      amendment.

    

    (e) Other
      than the Exchange Act reports specified above, the Securities Administrator
      shall have no responsibility to file any items or reports with the Commission
      under the Exchange Act or otherwise; provided,
      however,
      the
      Securities Administrator and Master Servicer will cooperate with the Depositor
      in connection with any additional filings with respect to the Trust as the
      Depositor deems necessary under the Exchange Act.

    
      
        
        

      

      
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    (f) The
      Depositor shall pay all costs and expenses of the Securities Administrator
      related to the preparation and filing of any current report on Form 8-K, any
      periodic report on Form 10-D (other than the costs and expense of the Securities
      Administrator associated with the preparation and filing of the Monthly
      Statement), or any amendment to any Exchange Act report. Except as otherwise
      provided herein, all expenses incurred by the Securities Administrator in
      connection with its preparation and filing of Exchange Act reports hereunder
      shall not be reimbursable from the Trust.

    

    (g) Any
      notice required under this Section 8.12 may be given by facsimile or by
      electronic mail.

    

    Section
      8.13 Tax
      Classification of the Excess Reserve Fund Account and the Supplemental Interest
      Trust.
      For
      federal income tax purposes, the Securities Administrator shall treat the Excess
      Reserve Fund Account and the Supplemental Interest Trust as beneficially owned
      by the holders of the Class X Certificates and shall treat such portion of
      the Trust Fund as a grantor trust, within the meaning of subpart E,
      Part I of subchapter J of the Code. 

    

    ARTICLE
      IX

    

    ADMINISTRATION
      OF THE MORTGAGE LOANS

    BY
      THE MASTER SERVICER 

    

    Section
      9.01 Duties
      of the Master Servicer; Enforcement of Servicer’s Obligations.
      (a)  The Master Servicer, on behalf of the Trustee, the Securities
      Administrator, the Depositor and the Certificateholders, shall monitor the
      performance of the obligations of the Servicer under this Agreement, and (except
      as set forth below) shall use its reasonable good faith efforts to cause the
      Servicer to duly and punctually perform its duties and obligations hereunder.
      Upon the occurrence of an Event of Default of which a Responsible Officer of
      the
      Master Servicer or, if the Master Servicer and a Servicer are the same entity,
      the Trustee, has actual knowledge, the Master Servicer or the Trustee, as
      applicable, shall promptly notify the Securities Administrator and the Trustee,
      as applicable, and shall specify in such notice the action, if any, the Master
      Servicer or the Trustee, as applicable, plans to take in respect of such
      default. So long as an Event of Default shall occur and be continuing, the
      Master Servicer or the Trustee, as applicable, shall take the actions specified
      in Article VII. Notwithstanding anything in this Agreement or the Credit
      Risk Management Agreement entered into by the Servicer to the contrary, the
      Master Servicer or the Trustee, as applicable, shall have no duty or obligation
      to enforce the Credit Risk Management Agreement or to supervise, monitor or
      oversee the activities of the Servicer under the Credit Risk Management
      Agreement with respect to any action taken or not taken by the Servicer at
      the
      direction of the Sponsor or pursuant to a recommendation of the Credit Risk
      Manager.

    
      
        
        

      

      
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    If
      (i) the Servicer reports a delinquency on a monthly report and (ii) the
      Servicer, by 11 a.m. (New York Time) on the related Remittance Date, neither
      makes an Advance nor provides the Securities Administrator, the Master Servicer
      and the Trustee with an Officer’s Certificate certifying that such an Advance
      would be a Nonrecoverable P&I Advance or Nonrecoverable Servicing Advance,
      then the Master Servicer or, if the Master Servicer and such Servicer are the
      same entity, the Trustee, shall deposit in the Distribution Account not later
      than the Business Day immediately preceding the related Distribution Date an
      Advance in an amount equal to the difference between (x) with respect to
      each Monthly Payment due on a Mortgage Loan that is delinquent (other than
      Relief Act Interest Shortfalls) and for which the Servicer was required to
      make
      an Advance pursuant to the this Agreement and (y) amounts deposited in the
      Collection Account to be used for Advances with respect to such Mortgage Loan,
      except to the extent the Master Servicer or the Trustee, as applicable,
      determines any such Advance to be a Nonrecoverable P&I Advance or
      Nonrecoverable Servicing Advance. Subject to the foregoing and
      Section 7.02, the Master Servicer or the Trustee, as applicable, shall
      continue to make such Advances for so long as the Servicer is required to do
      so
      under this Agreement. If applicable, on the Business Day immediately preceding
      the Distribution Date, the Master Servicer shall deliver an Officer’s
      Certificate to the Trustee stating that the Master Servicer elects not to make
      an Advance in a stated amount and detailing the reason(s) it deems the Advance
      to be a Nonrecoverable P&I Advance or Nonrecoverable Servicing Advance. Any
      amounts deposited by the Master Servicer or the Trustee, as applicable, pursuant
      to this Section 9.01 shall be net of the Servicing Fee for the related
      Mortgage Loans.

    

    (b) The
      Master Servicer or the Trustee (as successor master servicer), as applicable,
      shall pay the costs of monitoring the Servicer as required hereunder (including
      costs associated with (i) termination of the Servicer, (ii) the
      appointment of a successor servicer or (iii) the transfer to and assumption
      of the servicing by the Master Servicer or the Trustee, as applicable and shall,
      to the extent permitted hereunder, seek reimbursement therefor initially from
      the terminated Servicer. In the event the full costs associated with the
      transition of servicing responsibilities to the Master Servicer or the Trustee
      (as successor master servicer), as applicable, are not paid for by the
      predecessor or successor servicer (provided such successor servicer is not
      the
      Master Servicer or the Trustee (as successor master servicer)), the Master
      Servicer or the Trustee, as applicable, may be reimbursed therefor by the Trust
      for all costs incurred by the Master Servicer or the Trustee (as successor
      master servicer), as applicable, associated with any such transfer of servicing
      duties from the Servicer to the Master Servicer or the Trustee, as applicable,
      or any other successor servicer. 

    

    (c) If
      the
      Master Servicer or the Trustee (as successor master servicer), as applicable,
      assumes the servicing with respect to any of the Mortgage Loans, it will not
      assume liability for the representations and warranties of the Servicer it
      replaces or for any errors or omissions of the Servicer.

    

    (d) Neither
      the Depositor nor the Securities Administrator shall consent to the assignment
      by the Servicer of the Servicer’s rights and obligations under this Agreement
      without the prior written consent of the Master Servicer and the Trustee, which
      consent shall not be unreasonably withheld.

    

    Section
      9.02 Provision
      to the Securities Administrator of Loan-Level Information.
      Not
      later than 12:00 noon New York City time three Business Days preceding each
      Distribution Date, the Master Servicer shall deliver to the Securities
      Administrator, in a format mutually agreed upon by the Master Servicer and
      the
      Securities Administrator, “loan level” information with respect to the Mortgage
      Loans as of the related Determination Date, to the extent that such information
      has been provided to the Master Servicer by the Servicer.

    
      
        
        

      

      
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    Section
      9.03 [Reserved].

    

    Section
      9.04 Maintenance
      of Fidelity Bond and Errors and Omissions Insurance.
      The
      Master Servicer, at its expense, shall maintain in effect a blanket fidelity
      bond and an errors and omissions insurance policy, affording coverage with
      respect to all directors, officers, directors, employees and other Persons
      acting on such Master Servicer’s behalf, and covering errors and omissions in
      the performance of the Master Servicer’s obligations hereunder. The errors and
      omissions insurance policy and the fidelity bond shall be in such form and
      amount generally acceptable for entities serving as master servicers or
      trustees. 

    

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

    

    (i) it
      is a
      New York corporation, duly organized, existing and in good standing under the
      laws of the State of New York, with corporate power and authority to conduct
      its
      business as presently conducted by it, and to enter into, execute and deliver
      and to perform its obligations as Master Servicer under this
      Agreement;

    

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

    

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

    

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

    

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

    
      
        
        

      

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

    

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

    

    (viii) the
      consummation of the transactions contemplated by this Agreement are in the
      ordinary course of business of the Master Servicer.

    

    (b) It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section shall survive the execution and delivery of this Agreement. The Master
      Servicer shall indemnify the Depositor, the Servicer, the Securities
      Administrator, the Trustee and the Trust and hold them harmless against any
      loss, damages, penalties, fines, forfeitures, reasonable legal fees and related
      costs, judgments, and other reasonable costs and expenses resulting from any
      claim, demand, defense or assertion based on or grounded upon, or resulting
      from, a material breach of the Master Servicer’s representations and warranties
      contained in Section 9.05(a) above. It is understood and agreed that the
      enforcement of the obligation of the Master Servicer set forth in this
      Section 9.05 to indemnify the Depositor, the Servicer, the Securities
      Administrator, the Trustee and the Trust constitutes the sole remedy of the
      Depositor, the Servicer, the Securities Administrator, the Trustee and the
      Trust, respecting a breach of the foregoing representations and warranties.
      Such
      indemnification shall survive any termination of the Master Servicer as Master
      Servicer hereunder, any termination of this Agreement and resignation or removal
      of the Trustee.

    

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

    

    Section
      9.06 Master
      Servicer Events of Default.
      Each of
      the following shall constitute a “Master Servicer Event of
      Default”:

    

    (a) any
      failure by the Master Servicer to make any P&I Advance required to be made
      by the Master Servicer under the terms of this Agreement which continues
      unremedied for a period of two (2) Business Days after the date upon which
      written notice of such failure, requiring the same to be remedied, shall have
      been given to the Master Servicer by any other party hereto;

    
      
        
        

      

      
        -137-

        
          

        

      

      
        
        

      

    

    

    (b) failure
      by the Master Servicer to duly observe or perform, in any material respect,
      any
      other covenants, obligations or agreements of the Master Servicer as set forth
      in this Agreement which failure continues unremedied for a period of thirty
      (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
      Trustee or to the Master Servicer and Trustee by the holders of Certificates
      evidencing at least 25.00% of the Voting Rights;

    

    (c) a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      for
      the appointment of a conservator or receiver or liquidator in any insolvency,
      bankruptcy, readjustment of debt, marshaling of assets and liabilities or
      similar proceedings, or for the winding-up or liquidation of its affairs, shall
      have been entered against the Master Servicer and such decree or order shall
      have remained in force, undischarged or unstayed for a period of sixty
      (60) days;

    

    (d) the
      Master Servicer shall consent to the appointment of a conservator or receiver
      or
      liquidator in any insolvency, bankruptcy, readjustment of debt, marshaling
      of
      assets and liabilities or similar proceedings of or relating to the Master
      Servicer or relating to all or substantially all of its property;

    

    (e) the
      Master Servicer shall admit in writing its inability to pay its debts 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 for three (3) Business
      Days;

    

    (f) Except
      as
      otherwise set forth herein, the Master Servicer attempts to assign this
      Agreement or its responsibilities hereunder or to delegate its duties hereunder
      (or any portion thereof) without the consent of the Securities Administrator
      and
      the Depositor; 

    

    (g) the
      indictment of the Master Servicer for the taking of any action by the Master
      Servicer, any Affiliate or any director or employee thereof that constitutes
      fraud or criminal activity in the performance of its obligations under this
      Agreement, in each case, where such indictment materially and adversely affects
      the ability of the Master Servicer to perform its obligations under this
      Agreement (subject to the condition that such indictment is not dismissed within
      ninety (90) days); 

    

    (h) After
      receipt of notice from the Securities Administrator, any failure of the Master
      Servicer to remit to the Securities Administrator any payment required to be
      made to the Securities Administrator on any Master Servicer Remittance Date
      for
      the benefit of Certificateholders under the terms of this Agreement, including
      any Advance, which such failure continues unremedied for a period of one
      Business Day after the date upon which notice of such failure shall have been
      given to the Master Servicer by the Securities Administrator; or

    

    (i) failure
      of the Master Servicer to timely provide the Depositor with the assessment,
      attestation and annual statement of compliance required by Item 1122 of
      Regulation AB in accordance with Sections 3.22, 3.23 and 3.24.

    

    In
      each
      and every such case, so long as a Master Servicer Event of Default shall not
      have been remedied, in addition to whatever rights the Trustee may have at
      law
      or equity or to damages, including injunctive relief and specific performance,
      the Trustee, by notice in writing to the Master Servicer, may, and upon the
      request of the Holders of Certificates representing at least 51.00% of the
      Voting Rights shall, terminate with cause all the rights and obligations of
      the
      Master Servicer under this Agreement.

    
      
        
        

      

      
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    Upon
      receipt by the Master Servicer of such written notice, all authority and power
      of the Master Servicer under this Agreement, shall pass to and be vested in
      any
      successor master servicer appointed hereunder which accepts such appointments.
      Upon written request from the Trustee or the Depositor, the Master Servicer
      shall prepare, execute and deliver to the successor entity designated by the
      Trustee any and all documents and other instruments related to the performance
      of its duties hereunder as the Master Servicer and, place in such successor’s
      possession all such documents with respect to the master servicing of the
      Mortgage Loans and do or cause to be done all other acts or things necessary
      or
      appropriate to effect the purposes of such notice of termination, at the Master
      Servicer’s sole expense. The Master Servicer shall cooperate with the Trustee
      and such successor master servicer in effecting the termination of the Master
      Servicer’s responsibilities and rights hereunder, including without limitation,
      the transfer to such successor master servicer for administration by it of
      all
      cash amounts which shall at the time be credited to the Master Servicing Account
      or are thereafter received with respect to the Mortgage Loans. 

    

    Section
      9.07 Waiver
      of Default. 
      By a
      written notice, the Trustee may at the direction of Holders of Certificates
      evidencing at least 51.00% of the Voting Rights waive any default by the Master
      Servicer in the performance of its obligations hereunder and its consequences.
      Upon any waiver of a past default, such default shall cease to exist, and any
      Master Servicer Event of Default arising therefrom shall be deemed to have
      been
      remedied for every purpose of this Agreement. No such waiver shall extend to
      any
      subsequent or other default or impair any right consequent thereon except to
      the
      extent expressly so waived.

    

    Section
      9.08 Successor
      to the Master Servicer. 
      Upon
      termination of the Master Servicer’s responsibilities and duties under this
      Agreement, the Depositor shall use its reasonable good faith efforts to appoint
      a successor, which shall succeed to all rights and assume all of the
      responsibilities, duties and liabilities of the Master Servicer under this
      Agreement prior to the termination of the Master Servicer. Any successor shall
      be a Fannie Mae and Freddie Mac approved servicer in good standing and
      acceptable to the Depositor and the Rating Agencies. In connection with such
      appointment and assumption, the Depositor may make such arrangements for the
      compensation of such successor as it and such successor shall agree. In the
      event that the Master Servicer’s duties, responsibilities and liabilities under
      this Agreement are terminated, the Master Servicer shall continue to discharge
      its duties and responsibilities hereunder until the effective date of such
      termination with the same degree of diligence and prudence which it is obligated
      to exercise under this Agreement and shall take no action whatsoever that might
      impair or prejudice the rights of its successor. The termination of the Master
      Servicer shall not become effective until a successor shall be appointed
      pursuant hereto and shall in no event (i) relieve the Master Servicer of
      responsibility for the representations and warranties made pursuant to
      Section 9.05(a) hereof and the remedies available to the Trustee under
      Section 9.05(b) hereof, it being understood and agreed that the provisions
      of Section 9.05 hereof shall be applicable to the Master Servicer
      notwithstanding any such sale, assignment, resignation or termination of the
      Master Servicer or the termination of this Agreement; or (ii) affect the
      right of the Master Servicer to receive payment and/or reimbursement of any
      amounts accruing to it hereunder prior to the date of termination (or during
      any
      transition period in which the Master Servicer continues to perform its duties
      hereunder prior to the date the successor master servicer fully assumes its
      duties).

    
      
        
        

      

      
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    If
      no
      successor master servicer has accepted its appointment within 90 days of
      the time the Trustee receives the resignation of the Master Servicer, the
      Trustee shall be the successor master servicer in all respects under this
      Agreement and shall have all the rights and powers and be subject to all the
      responsibilities, duties and liabilities relating thereto, including the
      obligation to make Advances; provided,
      however,
      that
      any failure to perform any duties or responsibilities caused by the Master
      Servicer’s failure to provide information required by this Agreement shall not
      be considered a default by the Trustee hereunder. In the Trustee’s capacity as
      such successor, the Trustee shall have the same limitations on liability herein
      granted to the Master Servicer. Notwithstanding anything herein to the contrary,
      the Trustee in its role as successor master servicer shall have no obligation
      to
      monitor or supervise the Servicer, shall only have the obligation to make
      Advances if it terminates the Servicer pursuant to Section 7.01 (in its role
      as
      successor master servicer), and shall make such Advances only pursuant to
      Section 7.02. As compensation therefor, the Trustee shall be entitled to receive
      the compensation, reimbursement and indemnities otherwise payable to the Master
      Servicer, including the fees and other amounts payable pursuant to
      Section 9.09 hereof. 

    

    Any
      successor master servicer appointed as provided herein, shall execute,
      acknowledge and deliver to the Master Servicer, the Depositor and to the Trustee
      an instrument accepting such appointment, wherein the successor shall make
      the
      representations and warranties set forth in Section 9.05 hereof, and
      whereupon such successor shall become fully vested with all of the rights,
      powers, duties, responsibilities, obligations and liabilities of the Master
      Servicer, with like effect as if originally named as a party to this Agreement.
      Any termination or resignation of the Master Servicer or termination of this
      Agreement shall not affect any claims that the Trustee may have against the
      Master Servicer arising out of the Master Servicer’s actions or failure to act
      prior to any such termination or resignation or in connection with the Trustee’s
      assumption of such obligations, duties and responsibilities. 

    

    Upon
      a
      successor’s acceptance of appointment as such, the successor master servicer
      shall notify by mail the Trustee and the Depositor of its
      appointment.

    

    Section
      9.09 [Reserved]. 

    

    Section
      9.10 Merger
      or Consolidation.
      Any
      Person into which the Master Servicer may be merged or consolidated, or any
      Person resulting from any merger, conversion, other change in form or
      consolidation to which the Master Servicer shall be a party, or any Person
      succeeding to the business of the Master Servicer, shall be the successor to
      the
      Master Servicer hereunder, without the execution or filing of any paper or
      any
      further act on the part of any of the parties hereto, anything herein to the
      contrary notwithstanding; provided, however, that the successor or resulting
      Person to the Master Servicer shall (i) be a Person (or have an Affiliate)
      that is qualified and approved to service mortgage loans for Fannie Mae and
      Freddie Mac (provided further that a successor master servicer that satisfies
      subclause (i) through an Affiliate agrees to service the Mortgage
      Loans in accordance with all applicable Fannie Mae and Freddie Mac guidelines)
      and (ii) have a net worth of not less than $25,000,000.

    
      
        
        

      

      
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    Section
      9.11 Resignation
      of the Master Servicer.
      Except
      as otherwise provided in Sections 9.08 and 9.10 hereof, the Master Servicer
      shall not resign from the obligations and duties hereby imposed on it unless
      the
      Master Servicer’s duties hereunder are no longer permissible under applicable
      law or are in material conflict by reason of applicable law with any other
      activities carried on by it and cannot be cured. Any such determination
      permitting the resignation of the Master Servicer shall be evidenced by an
      Opinion of Counsel that shall be independent to such effect delivered to the
      Trustee. No such resignation shall become effective until the Trustee shall
      have
      assumed, or a successor master servicer satisfactory to the Trustee and the
      Depositor shall have assumed, the Master Servicer’s responsibilities and
      obligations under this Agreement. Notice of such resignation shall be given
      promptly by the Master Servicer and the Depositor to the Trustee.

    

    If
      at any
      time, CitiMortgage, as Master Servicer, resigns under this Section 9.11, or
      is removed as Master Servicer pursuant to Section 9.06, then at such time
      Citibank shall also resign (and shall be entitled to resign) as Securities
      Administrator under this Agreement.

    

    Section
      9.12 Assignment
      or Delegation of Duties by the Master Servicer. 
      Except
      as expressly provided herein, the Master Servicer shall not assign or transfer
      any of its rights, benefits or privileges hereunder to any other Person, or
      delegate to or subcontract with, or authorize or appoint any other Person to
      perform any of the duties, covenants or obligations to be performed by the
      Master Servicer; provided, however, that the Master Servicer shall have the
      right with the prior written consent of the Depositor (which shall not be
      unreasonably withheld, denied or delayed), and upon delivery to the Trustee
      and
      the Depositor of a letter from each Rating Agency to the effect that such action
      shall not result in a downgrade of the ratings assigned to any of the
      Certificates, to delegate or assign to or subcontract with or authorize or
      appoint any qualified Person to perform and carry out any duties, covenants
      or
      obligations to be performed and carried out by the Master Servicer hereunder.
      Notice of such permitted assignment shall be given promptly by the Master
      Servicer to the Depositor and the Trustee. If, pursuant to any provision hereof,
      the duties of the Master Servicer are transferred to a successor master
      servicer, the entire compensation payable to the Master Servicer pursuant hereto
      shall thereafter be payable to such successor master servicer but in no event
      shall the fee payable to the successor master servicer exceed that payable
      to
      the predecessor master servicer.

    

    Section
      9.13 Limitation
      on Liability of the Master Servicer.
      Neither
      the Master Servicer nor any of the directors, officers, employees or agents
      of
      the Master Servicer shall be under any liability to the Trustee or the
      Certificateholders for any action taken or for refraining from the taking of
      any
      action in good faith pursuant to this Agreement, or for errors in judgment;
      provided, however, that this provision shall not protect the Master Servicer
      or
      any such person against any liability that would otherwise be imposed by reason
      of willful malfeasance, bad faith or negligence in the performance of its duties
      or by reason of reckless disregard for its obligations and duties under this
      Agreement. The Master Servicer and any director, officer, employee or agent
      of
      the Master Servicer may rely in good faith on any document prima facie properly
      executed and submitted by any Person respecting any matters arising hereunder.
      The Master Servicer shall be under no obligation to appear in, prosecute or
      defend any legal action that is not incidental to its duties as Master Servicer
      with respect to the Mortgage Loans under this Agreement and that in its opinion
      may involve it in any expenses or liability; provided, however, that the Master
      Servicer may in its sole discretion undertake any such action that it may deem
      necessary or desirable in respect to this Agreement and the rights and duties
      of
      the parties hereto and the interests of the Certificateholders hereunder. In
      such event, the legal expenses and costs of such action and any liability
      resulting therefrom, shall be liabilities of the Trust, and the Master Servicer
      shall be entitled to be reimbursed therefor out of the Distribution Account
      in
      accordance with the provisions of Section 9.09 and
      Section 9.14.

    
      
        
        

      

      
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    The
      Master Servicer shall not be liable under this Agreement for any acts or
      omissions of the Servicer except to the extent that damages or expenses are
      incurred as a result of such acts or omissions and such damages and expenses
      would not have been incurred but for the negligence, willful malfeasance, bad
      faith or recklessness of the Master Servicer in supervising, monitoring and
      overseeing the performance of the obligations of the Servicer as required under
      this Agreement. 

    

    Section
      9.14 Indemnification;
      Third Party Claims.
      The
      Master Servicer agrees to indemnify and hold harmless the Trustee as successor
      master servicer from and against any and all claims, losses, penalties, fines,
      forfeitures, legal fees and related costs, judgments, and any other costs,
      liabilities, fees and expenses (including, but not limited to, reasonable
      attorneys’ fees) that the Trustee may sustain as a result of such liability or
      obligations of the Master Servicer and in connection with the Trustee’s
      assumption (not including the Trustee’s performance, except to the extent that
      costs or liability of the Trustee are created or increased as a result of
      negligent or wrongful acts or omissions of the Master Servicer prior to its
      replacement as Master Servicer) of the Master Servicer’s obligations, duties or
      responsibilities under such agreement. 

    

    The
      Trust
      will indemnify the Master Servicer and hold it harmless against any and all
      claims, losses, penalties, fines, forfeitures, legal fees and related costs,
      judgments, and any other costs, liabilities, fees and expenses (including,
      but
      not limited to, reasonable attorneys’ fees) that the Master Servicer may incur
      or sustain in connection with, arising out of or related to this Agreement
      or
      the Certificates, except to the extent that any such loss, liability or expense
      is related to (i) a material breach of the Master Servicer’s
      representations and warranties in this Agreement, (ii) the Master
      Servicer’s willful malfeasance, bad faith or negligence or by reason of its
      reckless disregard of its duties and obligations under this Agreement or (iii)
      failure to provide the assessment, attestation and annual statement of
      compliance in accordance with Sections 3.22, 3.23 and 3.24; provided that any
      such loss, liability or expense constitutes an “unanticipated expense incurred
      by the REMIC” within the meaning of Treasury Regulations
      Section 1.860G-1(b)(3)(ii). The Master Servicer shall be entitled to
      reimbursement for any such indemnified amount from funds on deposit in the
      Distribution Account. The Master Servicer shall not be liable for any course
      of
      action taken by the Servicer with respect to loss mitigation of defaulted
      Mortgage Loans at the direction of the Credit Risk Manager or the Sponsor
      pursuant to the Credit Risk Management Agreement or otherwise. Further, the
      Master Servicer shall not be liable for the performance by the Servicer under
      the Credit Risk Management Agreement.

    

    Section
      9.15 Duties
      of the Credit Risk Manager.

    
      
        
        

      

      
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    (a) The
      Certificateholders, by their purchase and acceptance of the Certificates,
      appoint OfficeTiger Global Real Estate Services Inc., formerly known as
      MortgageRamp, Inc., as Credit Risk Manager. For and on behalf of the Depositor
      and the Trust, the Credit Risk Manager will provide reports and recommendations
      concerning certain delinquent and defaulted Mortgage Loans, and as to the
      collection of any Prepayment Charges with respect to the Mortgage Loans. Such
      reports and recommendations will be based upon information provided pursuant
      to
      the Credit Risk Management Agreement and the Monthly Statement. The Credit
      Risk
      Manager shall look solely to the Servicer and to the Monthly Statement for
      all
      information and data (including loss and delinquency information and data)
      and
      loan level information and data relating to the servicing of the Mortgage Loans
      and neither the Securities Administrator, the Master Servicer nor the Trustee
      shall have any obligation to provide any such information to the Credit Risk
      Manager and shall not otherwise have any responsibility under the Credit Risk
      Management Agreement; provided
      however,
      the
      Securities Administrator shall, so long as the information is readily attainable
      by the Securities Administrator, answer any questions of the Credit Risk Manager
      with regard to the Monthly Statement. The Credit Risk Manager shall be entitled
      to compensation from the Trust equal to the Credit Risk Manager
      Fee.

    

    (b) On
      or
      about the 15th calendar day of each month, beginning in March 2007, the Credit
      Risk Manager shall have prepared and shall make available to the Depositor,
      the
      following reports:

    

    (i) Executive
      Summary:
      The Executive Summary will consist of a brief high level summary of certain
      key
      performance metrics as well as a narrative summary of loans identified and
      reviewed for follow-up actions by the Servicer.

    

    (ii) General
      Pool Characteristics:
      This report will contain a listing of various characteristics of the mortgage
      loan pool (including history and stratification) such as documentation levels,
      occupancy status, weighted aging, CLTV, NOO rate, junior lien percentage,
      etc.

    

    (iii) Performance
      Report:
      This report will graphically summarize the delinquency rates as well as the
      loss
      mitigation, foreclosure, REO, CPR and loss severity and related summary
      information.

    

    (iv) Prepayment
      Analysis:
      This report will consist of a compilation and summary of various loan
      characteristics for Mortgage Loans that have prepaid, along with prepayment
      premium analytics.

    

    (v) Servicer
      Remittance Report:
      This report will consist of an analysis of any discrepancy between the monthly
      servicer remittance file and the final monthly trust report including, without
      limitation, the collection of prepayment premiums.

    

    (vi) OfficeTiger
      Loan Review Report:
      This report will consist of a narrative summary with respect to the individual
      loans that have been flagged for manual review and follow-up consultation with
      the Servicer. This report may also include narrative summaries of the
      recommendation of the Credit Risk Manager. 

    
      
        
        

      

      
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    Section
      9.16 Limitation
      Upon Liability of the Credit Risk Manager.
      Neither
      the Credit Risk Manager, nor any of the directors, officers, employees or agents
      of the Credit Risk Manager, shall be under any liability to the Trustee, the
      Securities Administrator, the Certificateholders or the Depositor for any action
      taken or for refraining from the taking of any action in good faith pursuant
      to
      this Agreement, in reliance upon information provided by the Servicer under
      the
      Credit Risk Management Agreement or for errors in judgment; provided, however,
      that
      this provision shall not protect the Credit Risk Manager or any such person
      against liability that would otherwise be imposed by reason of willful
      malfeasance, bad faith or negligence in its performance of its duties or by
      reason of reckless disregard for its obligations and duties under this Agreement
      or the Credit Risk Management Agreement. The Credit Risk Manager and any
      director, officer, employee or agent of the Credit Risk Manager 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, and may rely in good faith
      upon the accuracy of information furnished by the Servicer pursuant to the
      Credit Risk Management Agreement in the performance of its duties thereunder
      and
      hereunder.

    

    Section
      9.17 Removal
      and Resignation of Credit Risk Manager.
      The
      Credit Risk Manager may be removed as Credit Risk Manager by Certificateholders
      holding not less than 66-2/3% of the Voting Rights of Certificates, in the
      exercise of its or their sole discretion, at any time, without cause, upon
      ten
      (10) days prior written notice. The Certificateholders shall provide such
      written notice to the Trustee and upon receipt of such notice, the Trustee
      shall
      provide written notice to the Credit Risk Manager of its removal, effective
      upon
      receipt of such notice. In addition, on January 30, 2012 and each anniversary
      date thereafter, upon thirty (30) days prior written notice, the Credit Risk
      Manager will have the option to resign as Credit Risk Manager and the Depositor
      shall have the option to terminate the Credit Risk Manager without
      cause.

    

    ARTICLE
      X

    

    CONCERNING
      THE SECURITIES ADMINISTRATOR

    

    Section
      10.01 Duties
      of Securities Administrator.
      The
      Securities Administrator shall undertake to perform such duties and only such
      duties as are specifically set forth in this Agreement.

    

    The
      Securities Administrator, upon receipt of all resolutions, certificates,
      statements, opinions, reports, documents, orders or other instruments furnished
      to the Securities Administrator that are specifically required to be furnished
      pursuant to any provision of this Agreement, shall examine them to determine
      whether they are in the form required by this Agreement; provided,
      however,
      that
      the Securities Administrator shall not be responsible for the accuracy or
      content of any such resolution, certificate, statement, opinion, report,
      document, order or other instrument. If any such instrument is found not to
      conform in any material respect to the requirements of this Agreement, the
      Securities Administrator shall notify the Certificateholders of such
      non-conforming instrument in the event the Securities Administrator, after
      so
      requesting, does not receive a satisfactorily corrected instrument.

    
      
        
        

      

      
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    No
      provision of this Agreement shall be construed to relieve the Securities
      Administrator of liability for its own negligent action, its own negligent
      failure to act or its own willful misconduct; provided,
      however,
      that:

    

    (i) the
      duties and obligations of the Securities Administrator shall be determined
      solely by the express provisions of this Agreement, 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 Securities
      Administrator 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 Securities Administrator
      and
      conforming to the requirements of this Agreement which it believed in good
      faith
      to be genuine and to have been duly executed by the proper authorities
      respecting any matters arising hereunder;

    

    (ii) the
      Securities Administrator shall not be liable for any error of judgment made
      in
      good faith by a Responsible Officer or Responsible Officers of the Securities
      Administrator, unless it shall be conclusively determined by a court of
      competent jurisdiction, such determination not subject to appeal, that the
      Securities Administrator was negligent in ascertaining the pertinent
      facts;

    

    (iii) the
      Securities Administrator shall not be liable with respect to any action or
      inaction taken, suffered or omitted to be taken by it in good faith in
      accordance with the direction of Holders of Certificates evidencing not less
      than 25.00% of the Voting Rights of Certificates relating to the time, method
      and place of conducting any proceeding for any remedy available to the
      Securities Administrator, or exercising or omitting to exercise any trust or
      power conferred upon the Securities Administrator under this Agreement;
      and

    

    (iv) the
      Securities Administrator shall not be accountable, shall have no liability
      and
      makes no representation as to any acts or omissions hereunder of the Master
      Servicer or the Trustee.

    

    Section
      10.02 Certain
      Matters Affecting the Securities Administrator.
      Except
      as otherwise provided in Section 10.01:

    

    (i) the
      Securities Administrator may request and conclusively rely upon and shall be
      fully 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 Securities
      Administrator shall have no responsibility to ascertain or confirm the
      genuineness of any signature of any such party or parties;

    
      
        
        

      

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

    

    (iii) the
      Securities Administrator shall not be liable for any action or inaction 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;

    

    (iv) the
      Securities Administrator shall not be bound to make any investigation into
      the
      facts or matters stated in any resolution, certificate, statement, instrument,
      opinion, report, notice, request, consent, order, approval, bond or other paper
      or document, unless requested in writing so to do by Holders of Certificates
      evidencing not less than 25.00% of the Voting Rights allocated to each
      Class of Certificates; provided,
      however,
      that if
      the payment within a reasonable time to 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 Securities Administrator, not reasonably
      assured to the Securities Administrator by the security afforded to it by the
      terms of this Agreement, the Securities Administrator may require reasonable
      indemnity against such expense or liability as a condition to so proceeding.
      Nothing in this clause (iv) shall derogate from the obligation of the
      Securities Administrator to observe any applicable law prohibiting disclosure
      of
      information regarding the Mortgagors, provided that the Securities Administrator
      shall have no liability for disclosure required by this Agreement;

    

    (v) the
      Securities Administrator may execute any of the trusts or powers hereunder
      or
      perform any duties hereunder either directly or by or through agents or
      attorneys or a custodian and the Securities Administrator shall not be
      responsible for any misconduct or negligence on the part of any such agent,
      attorney or custodian appointed by the Securities Administrator with due
      care;

    

    (vi) the
      Securities Administrator shall not be required to risk or expend its own funds
      or otherwise incur any financial liability in the performance of any of its
      duties or in the exercise of any of its rights or powers hereunder if it shall
      have reasonable grounds for believing that repayment of such funds or adequate
      indemnity against such risk or liability is not 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 or the Trustee under this
      Agreement;

    

    (vii) the
      Securities Administrator shall be under no obligation to exercise any of the
      trusts, rights or powers vested in it by this Agreement or to institute, conduct
      or defend any litigation hereunder or in relation hereto at the request, order
      or direction of any of the Certificateholders, pursuant to the provisions of
      this Agreement, unless such Certificateholders shall have offered to the
      Securities Administrator reasonable security or indemnity satisfactory to the
      Securities Administrator against the costs, expenses and liabilities which
      may
      be incurred therein or thereby; 

    
      
        
        

      

      
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    (viii) the
      Securities Administrator shall have no obligation to appear in, prosecute or
      defend any legal action that is not incidental to its duties hereunder and
      which
      in its opinion may involve it in any expense or liability; provided,
      however,
      that in the event of a breach or default by the Derivative
      Counterparty
      under the Cap Agreement or the Swap Agreement, the Securities Administrator
      shall pursue all legal remedies available against the Derivative
      Counterparty
      under the Cap Agreement or the Swap Agreement, as applicable, in consultation
      with the Depositor; provided,
      further,
      that
      the Securities Administrator may in its discretion undertake any such action
      that it may deem necessary or desirable in respect of this Agreement and the
      rights and duties of the parties hereto and the interests of the Trustee, the
      Securities Administrator and the Certificateholders hereunder. In such event,
      the legal expenses and costs of such action and any liability resulting
      therefrom shall be expenses, costs and liabilities of the Trust Fund, and the
      Securities Administrator shall be entitled to be reimbursed therefor out of
      the
      Collection Account;

    

    (ix) the
      Securities Administrator shall not be required to take notice or be deemed
      to
      have notice or knowledge of any default or Event of Default unless a Responsible
      Officer of the Securities Administrator shall have received written notice
      or
      obtained actual knowledge thereof. In the absence of receipt of such notice
      or
      actual knowledge, the Securities Administrator may conclusively assume that
      there is no default or Event of Default;

    

    (x) the
      right
      of the Securities Administrator to perform any discretionary act enumerated
      in
      this Agreement shall not be construed as a duty, and the Securities
      Administrator shall not be answerable for other than its negligence or willful
      misconduct in the performance of such act;

    

    (xi) the
      Securities Administrator shall not be required to give any bond or surety in
      respect of the execution of the Trust Fund created hereby or the powers granted
      hereunder; and

    

    (xii) the
      Securities Administrator may execute any of the trusts or powers hereunder
      or
      perform any duties hereunder either directly or by or through agents, attorneys
      or custodians, and the Securities Administrator shall not be responsible for
      any
      misconduct or negligence on the part of any such agent, attorney or custodian
      appointed by the Securities Administrator with due care.

    

    The
      Securities Administrator shall have no duty (A) to undertake or ensure any
      recording, filing, or depositing of this Agreement or any agreement referred
      to
      herein or any financing statement or continuation statement evidencing a
      security interest, or to see to the maintenance of any such recording or filing
      or depositing or to any rerecording, refiling or redepositing thereof,
      (B) to procure or maintain any insurance or (C) to pay or discharge
      any tax, assessment, or other governmental charge or any lien or encumbrance
      of
      any kind owing with respect to, assessed or levied against, any part of the
      Trust Fund other than from funds available in the Distribution
      Account.

    
      
        
        

      

      
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    Section
      10.03 Securities
      Administrator Not Liable for Certificates or Mortgage Loans.
      The
      recitals contained herein and in the Certificates shall be taken as the
      statements of the Depositor or the transferor, as the case may be, and the
      Securities Administrator assumes no responsibility for their correctness. The
      Securities Administrator makes no representations as to the validity or
      sufficiency of this Agreement, the Cap Agreement, the Swap Agreement, or of
      the
      Certificates or of any Mortgage Loan or related document other than with respect
      to the Securities Administrator’s execution and authentication of the
      Certificates. The Securities Administrator shall not be accountable for the
      use
      or application by the Depositor, the Trustee, the Master Servicer, or the
      Derivative Counterparty of any funds paid to the Depositor, the Trustee, the
      Master Servicer or the Derivative Counterparty in respect of the Mortgage Loans
      or deposited in or withdrawn from the Collection Account or any other fund
      or
      account with respect to the Certificates by the Depositor, the Trustee, the
      Master Servicer or the Derivative Counterparty.

    

    The
      Securities Administrator executes and authenticates the Certificates not in
      its
      individual capacity but solely as Securities Administrator of the Trust Fund
      created by this Agreement, 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 on behalf of the Trust Fund 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 Fund.

    

    Section
      10.04 Securities
      Administrator May Own Certificates.
      The
      Securities Administrator in its individual or any other capacity may become
      the
      owner or pledgee of Certificates and may transact business with the parties
      hereto and their Affiliates with the same rights as it would have if it were
      not
      the Securities Administrator.

    

    Section
      10.05 Securities
      Administrator’s Fees and Expenses.
      The
      Securities Administrator shall be entitled to the use of funds in the
      Distribution Account during the Securities Administrator Float Period. The
      Securities Administrator and any director, officer, employee, agent or “control
      person” within the meaning of the Securities Act of 1933, as amended, and the
      Securities Exchange Act of 1934, as amended (“Control Person”), of the
      Securities Administrator shall be indemnified by the Trust and held harmless
      against any loss, liability or expense (including but not limited to reasonable
      attorney’s fees) (i) incurred in connection with any claim or legal action
      relating to (a) this Agreement, (b) the Mortgage Loans or (c) the
      Certificates, other than any loss, liability or expense incurred by reason
      of
      willful misfeasance, bad faith or negligence in the performance of any of the
      Securities Administrator’s duties hereunder, (ii) incurred in connection
      with the performance of any of the Securities Administrator’s duties hereunder,
      other than any loss, liability or expense incurred by reason of willful
      misfeasance, bad faith or negligence in the performance of any of the Securities
      Administrator’s duties hereunder or (iii) incurred by reason of any action
      of the Securities Administrator taken at the direction of the Certificateholders
      to the extent of indemnity provided by the Certificateholders, provided that
      any
      such loss, liability or expense constitutes an “unanticipated expense incurred
      by the REMIC” within the meaning of Treasury Regulations Section 1.860G
      1(b)(3)(ii). Such indemnity shall survive the termination of this Agreement
      or
      the resignation or removal of the Securities Administrator hereunder. Without
      limiting the foregoing, and except for any such expense, disbursement or advance
      as may arise from the Securities Administrator’s negligence, bad faith or
      willful misconduct, or which would not be an “unanticipated expense” within the
      meaning of the second preceding sentence, the Securities Administrator shall
      be
      reimbursed by the Trust for all reasonable expenses, disbursements and advances
      incurred or made by the Securities Administrator in accordance with any of
      the
      provisions of this Agreement with respect to: (A) the reasonable
      compensation and the expenses and disbursements of its counsel not associated
      with the closing of the issuance of the Certificates, (B) the reasonable
      compensation, expenses and disbursements of any accountant, engineer, appraiser
      or other agent that is not regularly employed by the Securities Administrator,
      to the extent that the Securities Administrator must engage such Persons to
      perform acts or services hereunder and (C) printing and engraving expenses
      in connection with preparing any Definitive Certificates. The Trust shall
      fulfill its obligations under this paragraph from amounts on deposit from
      time to time in the Distribution Account.

    
      
        
        

      

      
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    The
      Securities Administrator shall be required to pay all expenses incurred by
      it in
      connection with its activities hereunder and shall not be entitled to
      reimbursement therefor except as provided in this Agreement.

    

    Section
      10.06 Eligibility
      Requirements for Securities Administrator.
      The
      Securities Administrator hereunder shall at all times be a corporation or
      association organized and doing business under the laws the United States of
      America or any state thereof, authorized under such laws to exercise corporate
      trust powers, having a combined capital and surplus of at least $50,000,000,
      subject to supervision or examination by federal or state authority and with
      a
      credit rating of at least investment grade. If such corporation or association
      publishes reports of condition at least annually, pursuant to law or to the
      requirements of the aforesaid supervising or examining authority, then for
      the
      purposes of this Section 10.06 the combined capital and surplus of such
      corporation or association shall be deemed to be its combined capital and
      surplus as set forth in its most recent report of condition so published. In
      case at any time the Securities Administrator shall cease to be eligible in
      accordance with the provisions of this Section 10.06, the Securities
      Administrator shall resign immediately in the manner and with the effect
      specified in Section 10.07 hereof. The entity serving as Securities
      Administrator may have normal banking and trust relationships with the Depositor
      and its affiliates or the Trustee and its affiliates.

    

    Any
      successor securities administrator (i) may not be the Originator, the
      Master Servicer, the Servicer, the Depositor or an affiliate of the Depositor
      unless such successor securities administrator’s functions are operated through
      an institutional trust department of the Securities Administrator,
      (ii) must be authorized to exercise corporate trust powers under the laws
      of its jurisdiction of organization, and (iii) must be rated at least
“A/F1” by Fitch, if Fitch is a Rating Agency and if rated by Fitch, or the
      equivalent rating by Standard & Poor’s or Moody’s. 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 Section 10.07, then the Trustee
      may (but shall not be obligated to) become the successor securities
      administrator. The Depositor shall appoint a successor to the Securities
      Administrator in accordance with Section 10.07. The Trustee shall notify
      the Rating Agencies of any change of Securities Administrator.

    
      
        
        

      

      
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    Section
      10.07 Resignation
      and Removal of Securities Administrator.
      The
      Securities Administrator may at any time resign by giving written notice of
      resignation to the Depositor and the Trustee and each Rating Agency not less
      than 60 days before the date specified in such notice when, subject to
      Section 10.08, such resignation is to take effect, and acceptance by a
      successor securities administrator in accordance with Section 10.08 meeting
      the qualifications set forth in Section 10.06. If no successor securities
      administrator meeting such qualifications shall have been so appointed by the
      Depositor and have accepted appointment within 30 days after the giving of
      such notice of resignation, the resigning Securities Administrator may petition
      any court of competent jurisdiction for the appointment of a successor
      securities administrator.

    

    If
      at any
      time the Securities Administrator shall cease to be eligible in accordance
      with
      the provisions of Section 10.06 hereof and shall fail to resign after
      written request thereto by the Depositor, or if at any time the Securities
      Administrator shall become incapable of acting, or shall be adjudged as bankrupt
      or insolvent, or a receiver of the Securities Administrator or of its property
      shall be appointed, or any public officer shall take charge or control of the
      Securities Administrator or of its property or affairs for the purpose of
      rehabilitation, conservation or liquidation, or a tax is imposed with respect
      to
      the Trust Fund by any state in which the Securities Administrator or the Trust
      Fund is located and the imposition of such tax would be avoided by the
      appointment of a different securities administrator, then the Depositor may
      remove the Securities Administrator and appoint a successor securities
      administrator by written instrument, in triplicate, one copy of which instrument
      shall be delivered to the Securities Administrator so removed, one copy of
      which
      shall be delivered to the Master Servicer and one copy to the successor
      securities administrator.

    

    The
      Holders of Certificates entitled to at least 51.00% of the Voting Rights may
      at
      any time remove the Securities Administrator and appoint a successor securities
      administrator by written instrument or instruments, in triplicate, signed by
      such Holders or their attorneys in fact duly authorized, one complete set of
      which instruments shall be delivered by the successor securities administrator
      to the Trustee, one complete set to the Securities Administrator so removed
      and
      one complete set to the successor so appointed. Notice of any removal of the
      Securities Administrator shall be given to the Derivative Counterparty and
      each
      Rating Agency by the successor securities administrator.

    

    Any
      resignation or removal of the Securities Administrator and appointment of a
      successor securities administrator pursuant to any of the provisions of this
      Section 10.07 shall become effective upon acceptance by the successor
      securities administrator of appointment as provided in Section 10.08
      hereof.

    

    If
      at any
      time, Citibank, as Securities Administrator, resigns under this
      Section 10.07, or is removed as Securities Administrator pursuant to this
      Section 10.07, then at such time CitiMortgage shall also resign (and shall
      be entitled to resign) as Master Servicer under this Agreement.

    

    Section
      10.08 Successor
      Securities Administrator.
      Any
      successor securities administrator (which may be the Trustee) appointed as
      provided in Section 10.07 hereof shall execute, acknowledge and deliver to
      the Depositor and to its predecessor Securities Administrator and the Trustee
      an
      instrument accepting such appointment hereunder and thereupon the resignation
      or
      removal of the predecessor Securities Administrator shall become effective
      and
      such successor securities administrator, without any further act, deed or
      conveyance, shall become fully vested with all the rights, powers, duties and
      obligations of its predecessor hereunder, with the like effect as if originally
      named as Securities Administrator herein. The Depositor, the Trustee, the Master
      Servicer and the predecessor Securities Administrator shall execute and deliver
      such instruments and do such other things as may reasonably be required for
      more
      fully and certainly vesting and confirming in the successor securities
      administrator all such rights, powers, duties, and obligations.

    
      
        
        

      

      
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    No
      successor securities administrator shall accept appointment as provided in
      this
      Section 10.08 unless at the time of such acceptance such successor
      securities administrator shall be eligible under the provisions of
      Section 10.06 hereof and its appointment shall not adversely affect then
      current rating of the Certificates, as confirmed in writing by each Rating
      Agency.

    

    Upon
      acceptance by a successor securities administrator of appointment as provided
      in
      this Section 10.08, the Depositor shall mail notice of the succession of
      such Securities Administrator hereunder to all Holders of Certificates and
      the
      Derivative Counterparty. If the Depositor fails to mail such notice within
      10 days after acceptance by the successor securities administrator of
      appointment, the successor securities administrator shall cause such notice
      to
      be mailed at the expense of the Depositor.

    

    Section
      10.09 Merger
      or Consolidation of Securities Administrator.
      Any
      corporation or other entity into which the Securities Administrator may be
      merged or converted or with which it may be consolidated or any corporation
      or
      other entity resulting from any merger, conversion or consolidation to which
      the
      Securities Administrator shall be a party, or any corporation or other entity
      succeeding to the business of the Securities Administrator, shall be the
      successor of the Securities Administrator hereunder, provided that such
      corporation or other entity shall be eligible under the provisions of
      Section 10.06 hereof, without the execution or filing of any paper or
      further act on the part of any of the parties hereto, anything herein to the
      contrary notwithstanding.

    

    Section
      10.10 Assignment
      or Delegation of Duties by the Securities Administrator.
      Except
      as expressly provided herein, the Securities Administrator shall not assign
      or
      transfer any of its rights, benefits or privileges hereunder to any other
      Person, or delegate to or subcontract with, or authorize or appoint any other
      Person to perform any of the duties, covenants or obligations to be performed
      by
      the Securities Administrator; provided, however, that the Securities
      Administrator shall have the right with the prior written consent of the
      Depositor (which shall not be unreasonably withheld or delayed), and upon
      delivery to the Trustee, the Derivative Counterparty and the Depositor of a
      letter from each Rating Agency to the effect that such action shall not result
      in a downgrade of the ratings assigned to any of the Certificates, to delegate
      or assign to or subcontract with or authorize or appoint any qualified Person
      to
      perform and carry out any duties, covenants or obligations to be performed
      and
      carried out by the Securities Administrator hereunder. Notice of such permitted
      assignment shall be given promptly by the Securities Administrator to the
      Depositor and the Trustee. If, pursuant to any provision hereof, the duties
      of
      the Securities Administrator are transferred to a successor securities
      administrator, the entire compensation payable to the Securities Administrator
      pursuant hereto shall thereafter be payable to such successor securities
      administrator but in no event shall the fee payable to the successor securities
      administrator exceed that payable to the predecessor securities
      administrator.

    
      
        
        

      

      
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    Section
      10.11 Dissemination
      of Confidential Information.
      Notwithstanding anything to the contrary herein, any and all communications
      (both text and attachments) by or from the Securities Administrator or the
      Master Servicer that the Securities Administrator or the Master Servicer,
      respectively, in its sole discretion deems to contain confidential, proprietary,
      and/or sensitive information and sent by electronic mail will be encrypted.
      The
      recipient of the email communication will be required to complete a one-time
      registration process. Information and assistance on registering and using the
      email encryption technology shall be provided at Citibank’s secure website at
      www.citigroup.com/citigroup/citizen/privacy/email.htm or by calling (866)
      535-2504 (in the U.S.) or (904) 954-6181 at any time.

    

    ARTICLE
      XI

    

    TERMINATION

    

    Section
      11.01 Termination
      upon Liquidation or Purchase of the Mortgage Loans.
      Subject
      to Section 11.03, the obligations and responsibilities of the Depositor,
      the Master Servicer, the Servicer, the Credit Risk Manager, the Securities
      Administrator and the Trustee created hereby with respect to the Trust Fund
      shall terminate upon the earlier of (a) the exercise of an Option to Purchase,
      on or after the Optional Termination Date, in the aggregate of all Mortgage
      Loans (and REO Properties) at the price (the “Termination
      Price”)
      equal
      to the sum of (i) 100.00% of the unpaid principal balance of each Mortgage
      Loan (other than in respect of REO Property) plus accrued and unpaid interest
      thereon at the applicable Mortgage Rate, (ii) the lesser of (x) the
      appraised value of any REO Property as determined by the higher of two
      appraisals completed by two independent appraisers selected by the Master
      Servicer at the expense of that Trust Fund and (y) the unpaid principal
      balance of each Mortgage Loan related to any REO Property, in each case plus
      accrued and unpaid interest thereon at the applicable Mortgage Rate, (for the
      avoidance of doubt, in the case of a Second Lien Mortgage Loan, such principal
      balance will be determined without regard to the principal balance of the
      related senior lien), (iii) amounts in reimbursement for Advances
      previously made with respect to the Mortgage Loans and other amounts as to
      which
      the Servicer, the Depositor, the Master Servicer, the Securities Administrator,
      the Credit Risk Manager or the Trustee are entitled to be paid or reimbursed
      pursuant to this Agreement and (iv) any Net Swap Payments remaining unpaid
      and
      any Swap Termination Payments payable to the Swap Counterparty as a result
      of a
      termination pursuant to this Section 11.01 and (b) the later of
      (i) the maturity or other liquidation (or any Advance with respect thereto)
      of the last Mortgage Loan remaining in the Trust Fund and the disposition of
      all
      REO Property and (ii) the distribution to Certificateholders of all amounts
      required to be distributed to them pursuant to this Agreement. In no event
      shall
      the trusts created hereby continue beyond the expiration of 21 years from
      the death of the survivor of the descendants of Joseph P. Kennedy, the late
      Ambassador of the United States to the Court of St. James’s, living on the
      date hereof.

     

    Notwithstanding
      anything to the contrary contained herein, no such purchase by the Master
      Servicer (either upon instruction from the Depositor or voluntarily) shall
      be
      permitted unless (i) after distribution of the proceeds thereof to the
      Certificateholders (other than the Holders of the Class X, Class P and
      Residual Certificates and any other Classes of Certificates which constitute
      NIM
      Securities) pursuant to Section 11.02, the distribution of the remaining
      proceeds to the Class X and Class P Certificates is sufficient to pay
      the outstanding principal amount of and accrued and unpaid interest on the
      NIM
      Securities, to the extent the NIM Securities are then outstanding, or
      (ii) prior to such purchase, the Master Servicer, remits to the Securities
      Administrator an amount that, together with such remaining proceeds, will be
      sufficient to pay the outstanding principal amount of, and accrued and unpaid
      interest on, the NIM Securities, to the extent the NIM Securities are then
      outstanding.

    
      
        
        

      

      
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    Section
      11.02 Final
      Distribution on the Certificates.
      If on
      any Remittance Date, the Master Servicer determines that there are no
      Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other
      than the funds in the Collection Account, the Master Servicer shall direct
      the
      Securities Administrator promptly to send a Notice of Final Distribution to
      each
      Certificateholder and to the Swap Counterparty. If the Master Servicer (upon
      instruction from the Depositor or voluntarily) elects to exercise their option
      to purchase the Mortgage Loans pursuant to clause (a) of
      Section 11.01, at least 20 days prior to the date the Notice of Final
      Distribution is to be mailed to the affected Certificateholders, the Master
      Servicer shall notify the Depositor, the Derivative Counterparty and the
      Securities Administrator of (a) the date on which the Master Servicer
      intends to exercise such purchase option and (b) the Termination
      Price.

    

    A
      Notice
      of Final Distribution, specifying the Distribution Date on which
      Certificateholders may surrender their Certificates for payment of the final
      distribution and cancellation, shall be given promptly by the Securities
      Administrator by letter to Certificateholders mailed not earlier than the 10th
      day and not later than the 15th day of the month of such final distribution.
      Any
      such Notice of Final Distribution shall specify (a) the Distribution Date
      upon which final distribution on the Certificates will be made upon presentation
      and surrender of Certificates at the office therein designated, (b) the
      amount of such final distribution, (c) the location of the office or agency
      at which such presentation and surrender must be made and (d) that the
      Record Date otherwise applicable to such Distribution Date is not applicable,
      distributions being made only upon presentation and surrender of the
      Certificates at the office therein specified. The Securities Administrator
      will
      give such Notice of Final Distribution to the Swap Counterparty and to each
      Rating Agency at the time such Notice of Final Distribution is given to
      Certificateholders.

    

    In
      the
      event such Notice of Final Distribution is given, the Servicer shall cause
      all
      funds in the Collection Account to be remitted to the Securities Administrator
      for deposit in the Distribution Account on the Business Day prior to the
      applicable Distribution Date in an amount equal to the final distribution in
      respect of the Certificates. The Securities Administrator shall timely provide
      the Servicer with the appropriate wiring instructions in respect of any such
      remittance. Upon such final deposit with respect to the Trust Fund and the
      receipt by the Custodian of a Request for Release therefor, the Custodian shall
      promptly release to the Servicer the Custodial Files for the Mortgage
      Loans.

    

    Upon
      presentation and surrender of the Certificates, the Securities Administrator
      shall cause to be distributed to the Certificateholders of each
      Class (after reimbursement of all amounts due to the Servicer, the Master
      Servicer, the Securities Administrator, the Depositor, the Trustee and the
      Swap
      Counterparty hereunder and payment of any amounts due to the Supplemental
      Interest Trust as provided under Section 4.02), in each case on the final
      Distribution Date and in the order set forth in Section 4.02, in proportion
      to
      their respective Percentage Interests, with respect to Certificateholders of
      the
      same Class, up to an amount equal to (i) as to each Class of Regular
      Certificates (except the Class X Certificates), the Certificate Balance
      thereof plus for each such Class and the Class X Certificates accrued
      interest thereon in the case of an interest-bearing Certificate and all other
      amounts to which such Classes are entitled pursuant to Section 4.02 and
      (ii) as to the Residual Certificates, the amount, if any, which remains on
      deposit in the Distribution Account (other than the amounts retained to meet
      claims) after application pursuant to clause (i) above..

    
      
        
        

      

      
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    In
      the
      event that any affected Certificateholders shall not surrender Certificates
      for
      cancellation within six months after the date specified in the Notice of Final
      Distribution, the Securities Administrator shall give a second written notice
      to
      the remaining Certificateholders to surrender their Certificates for
      cancellation and receive the final distribution with respect thereto. If within
      six months after such 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 Certificateholders concerning surrender of their Certificates,
      and
      the cost thereof shall be paid out of the funds and other assets which remain
      a
      part of the Trust Fund. If within one year after the second notice all
      Certificates shall not have been surrendered for cancellation, the Class R
      Certificateholders shall be entitled to all unclaimed funds and other assets
      of
      the Trust Fund which remain subject hereto.

    

    Section
      11.03 Additional
      Termination Requirements.
      In the
      event an Option to Purchase is exercised with respect to the Mortgage Loans
      as
      provided in Section 11.01, the Trust Fund shall be terminated in accordance
      with the following additional requirements, unless the Trustee has been supplied
      with an Opinion of Counsel, at the expense of the party upon whose instruction
      causes the exercise of an Option to Purchase, to the effect that the failure
      to
      comply with the requirements of this Section 11.03 will not (i) result
      in the imposition of taxes on “prohibited transactions” on any REMIC formed
      hereby as defined in Section 860F of the Code or (ii) cause any REMIC
      formed hereby to fail to qualify as a REMIC at any time that any Certificates
      are outstanding:

    

    (a) The
      Securities Administrator on behalf of the Trustee shall sell all of the assets
      of the Trust Fund to the party exercising the Option to Purchase, and, within
      90 days of such sale, shall distribute to the Certificateholders the
      proceeds of such sale in complete liquidation of each REMIC formed hereby;
      and

    

    (b) The
      Securities Administrator shall attach a statement to the final federal income
      tax return for each REMIC formed hereby stating that pursuant to Treasury
      Regulations Section 1.860F-1, the first day of the 90-day liquidation
      period for each such REMIC was the date on which the Securities Administrator
      on
      behalf of the Trustee sold the assets of the Trust Fund to the Master
      Servicer.

    
      
        
        

      

      
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    ARTICLE
      XII

    

    MISCELLANEOUS
      PROVISIONS

    

    Section
      12.01 Amendment.
      This
      Agreement may be amended from time to time by the Depositor, the Originator,
      the
      Master Servicer, the Servicer, the Securities Administrator and the Trustee,
      without the consent of any of the Certificateholders or the Derivative
      Counterparty (except to the extent that the rights or obligations of the
      Derivative Counterparty under the Cap Agreement or the Swap Agreement are
      affected thereby, and except to the extent that the ability of the Securities
      Administrator to perform fully and timely its obligations under the Cap
      Agreement or the Swap Agreement is adversely affected, in which case prior
      written consent of the Derivative Counterparty is required) (i) to cure any
      ambiguity or mistake, (ii) to correct any defective provision herein or to
      supplement any provision herein which may be inconsistent with any other
      provision herein, (iii) to add to the duties of the Depositor, the Master
      Servicer, the Servicer, the Securities Administrator or the Trustee,
      (iv) to add any other provisions with respect to matters or questions
      arising hereunder, (v) to modify, alter, amend, add to or rescind any of
      the terms or provisions contained in this Agreement, (vi) to comply with the
      requirements of the Internal Revenue Code or (vii) to conform this agreement
      to
      the Offering Documents provided to investors in connection with the offering
      of
      the Certificates; provided, that any action pursuant to clause (iv) or
      (v) above shall not, as evidenced by an Opinion of Counsel (which Opinion
      of Counsel shall not be an expense of the Trustee, the Master Servicer, the
      Securities Administrator or the Trust Fund), adversely affect in any material
      respect the interests of any Certificateholder; provided, further, that any
      such
      action pursuant to clause (iv) or (v) above shall not be deemed
      to adversely affect in any material respect the interests of the
      Certificateholders if the Person requesting the amendment obtains a 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; it being understood and agreed that any such letter in and of
      itself will not represent a determination as to the materiality of any such
      amendment and will represent a determination only as to the credit issues
      affecting any such rating. The Trustee, the Depositor, the Master Servicer,
      the
      Originator, the Servicer and the Securities Administrator also may at any time
      and from time to time amend this Agreement, but without the consent of the
      Certificateholders or the Derivative Counterparty (except to the extent that
      the
      rights or obligations of the Derivative Counterparty hereunder or under the
      Cap
      Agreement or the Swap Agreement are affected thereby, and except to the extent
      that the ability of the Securities Administrator, as trustee of the Supplemental
      Interest Trust, to perform fully and timely its obligations under the Cap
      Agreement or the Swap Agreement is adversely affected, in which case prior
      written consent of the Derivative Counterparty is required) to modify, eliminate
      or add to any of its provisions to such extent as shall be necessary or helpful
      to (i) maintain the qualification of each REMIC created hereunder under the
      Code, (ii) 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 at any time
      prior to the final redemption of the Certificates or (iii) comply with any
      other requirements of the Code; provided, that the Trustee and the Master
      Servicer have been provided an Opinion of Counsel, which opinion shall be an
      expense of the party requesting such opinion but in any case shall not be an
      expense of the Trustee or the Trust Fund, to the effect that such action is
      necessary or helpful to, as applicable, (i) maintain such qualification,
      (ii) avoid or minimize the risk of the imposition of such a tax or
      (iii) comply with any such requirements of the Code.

    
      
        
        

      

      
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    This
      Agreement may also be amended from time to time by the Depositor, the Master
      Servicer, the Servicer, the Originator, the Securities Administrator and the
      Trustee, but with the consent of the Holders of Certificates evidencing
      Percentage Interests aggregating not less than 662/3%
      of each
      Class of Certificates affected thereby for the purpose of adding any
      provisions to or changing in any manner or eliminating any of the provisions
      of
      this Agreement or of modifying in any manner the rights of the Holders of
      Certificates; provided,
      however,
      that no
      such amendment shall (i) reduce in any manner the amount of, or delay the
      timing of, payments required to be distributed on any Certificate without the
      consent of the Holder of such Certificate, (ii) adversely affect in any
      material respect the interests of the Holders of any Class of Certificates
      in a manner other than as described in clause (i), without the consent of
      the Holders of Certificates of such Class evidencing, as to such Class,
      Percentage Interests aggregating not less than 662/3%,
      (iii) reduce the aforesaid percentages of Certificates the Holders of which
      are required to consent to any such amendment, without the consent of the
      Holders of all such Certificates then outstanding or (iv) adversely affect
      the
      rights or obligations of the Derivative Counterparty hereunder or under the
      Cap
      Agreement or the Swap Agreement or the rights of the Securities Administrator,
      as trustee of the Supplemental Interest Trust, to fully and timely perform
      its
      obligations under the Cap Agreement or the Swap Agreement without obtaining
      the
      prior written consent of the Derivative Counterparty.

    

    Notwithstanding
      any contrary provision of this Agreement, the Trustee and the Master Servicer
      shall not consent to any amendment to this Agreement unless (i) it shall
      have first received an Opinion of Counsel, which opinion shall not be an expense
      of the Trustee, the Master Servicer or the Trust Fund, to the effect that such
      amendment will not cause the imposition of any tax on any REMIC created
      hereunder or the Certificateholders or cause any such REMIC to fail to qualify
      as a REMIC or the grantor trust to fail to qualify as a grantor trust at any
      time that any Certificates are outstanding and (ii) the party seeking such
      amendment shall have provided written notice to the Rating Agencies (with a
      copy
      of such notice to the Trustee, the Master Servicer and the Derivative
      Counterparty) of such amendment, stating the provisions of the Agreement to
      be
      amended.

    

    Notwithstanding
      the foregoing provisions of this Section 12.01, with respect to any
      amendment that significantly modifies the permitted activities of the Trustee,
      any Certificate beneficially owned by the Depositor shall be deemed not to
      be
      outstanding (and shall not be considered when determining the percentage of
      Certificateholders consenting or when calculating the total number of
      Certificates entitled to consent) for purposes of determining if the requisite
      consents of Certificateholders under this Section 12.01 have been
      obtained.

    

    Promptly
      after the execution of any amendment to this Agreement requiring the consent
      of
      Certificateholders, the Trustee shall furnish written notification of the
      substance or a copy of such amendment to each Certificateholder and each Rating
      Agency.

    

    It
      shall
      not be necessary for the consent of Certificateholders under this
      Section 12.01 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
      regulations as the Trustee may prescribe.

    
      
        
        

      

      
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    Nothing
      in this Agreement shall require the Trustee, the Master Servicer or the
      Securities Administrator to enter into an amendment without receiving an Opinion
      of Counsel (which opinion shall not be an expense of the Trustee, the Master
      Servicer, the Securities Administrator or the Trust Fund), satisfactory to
      the
      Trustee, the Master Servicer and the Securities Administrator, as applicable,
      that (i) such amendment is permitted and is not prohibited by this
      Agreement and that all requirements for amending this Agreement have been
      complied with and (ii) either (A) the amendment does not adversely
      affect in any material respect the interests of any Certificateholder or
      (B) the conclusion set forth in the immediately preceding
      clause (A) is not required to be reached pursuant to this
      Section 12.01.

    

    Notwithstanding
      the foregoing, the consent of Originator shall not be required to enter into
      any
      amendment to this Agreement unless such amendment would potentially have a
      material and adverse effect on the rights or obligations of the Originator
      under
      this Agreement.

    

    Section
      12.02 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 Mortgaged Properties are situated, and in any other
      appropriate public recording office or elsewhere, such recordation to be
      effected by the Securities Administrator at the direction and expense of the
      Depositor, but only upon receipt of an Opinion of Counsel to the effect that
      such recordation materially and beneficially affects the interests of the
      Certificateholders.

    

    For
      the
      purpose of facilitating the recordation of this Agreement as herein provided
      and
      for other purposes, this Agreement may be executed simultaneously in any number
      of counterparts, each of which counterparts shall be deemed to be an original,
      and such counterparts shall constitute but one and the same
      instrument.

    

    Section
      12.03 Governing
      Law.
      THIS
      AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE
      LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
      IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
      HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
      LAWS.

    

    Section
      12.04 Intention
      of Parties.
      (a) It
      is intended that the conveyance of the Depositor’s right, title and interest in
      and to property constituting the Trust Fund pursuant to this Agreement shall
      constitute, and shall be construed as, a sale of such property and not a grant
      of a security interest to secure a loan. However, if such conveyance is deemed
      to be in respect of a loan, it is intended that: (1) the rights and obligations
      of the parties shall be established pursuant to the terms of this Agreement;
      (2)
      the Depositor hereby grants to the Trustee for the benefit of the Holders of
      the
      Certificates a first priority security interest to secure repayment of an
      obligation in an amount equal to the aggregate Class Certificate Balances of
      the
      Certificates in all of the Depositor’s right, title and interest in, to and
      under, whether now owned or hereafter acquired, the Trust Fund and the
      Supplemental Interest Trust and all proceeds of any and all property
      constituting the Trust Fund and the Supplemental Interest Trust to secure
      payment of the Certificates (such security interest being, to the extent of
      the
      assets that constitute the Supplemental Interest Trust, pari
      passu
      with the
      security interest as provided in clause (4) below); (3) this Agreement shall
      constitute a security agreement under applicable law; and (4) the Derivative
      Counterparty shall be deemed, during the term of such agreement and while such
      agreement is the property of the Trustee, to have a security interest in all
      of
      the assets that constitute the Supplemental Interest Trust, but only to the
      extent of such Derivative Counterparty’s right to payment under the Derivative
      Agreements (such security interest being pari
      passu
      with the
      security interest as provided in clause (2) above). If such conveyance is deemed
      to be in respect of a loan and the trust created by this Agreement terminates
      prior to the satisfaction of the claims of any Person holding any Certificate,
      the security interest created hereby shall continue in full force and effect
      and
      the Trustee shall be deemed to be the collateral agent for the benefit of such
      Person, and all proceeds shall be distributed by the Securities Administrator
      as
      herein provided.

    
      
        
        

      

      
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    (b) The
      Depositor shall, to the extent consistent with this Agreement, take such
      reasonable actions as may be necessary to ensure that, if this Agreement were
      deemed to create a security interest in the Mortgage Loans and the other
      property described above, such security interest would be deemed to be a
      perfected security interest of first priority under applicable law and shall
      be
      maintained as such throughout the term of this Agreement. The Depositor shall,
      at its own expense, make all initial filings on or about the Closing Date and
      shall forward a copy of such filing or filings to the Trustee. Without limiting
      the generality of the foregoing, the Depositor shall prepare and forward for
      filing, or shall cause to be forwarded for filing, at the expense of the
      Depositor, all filings necessary to maintain the effectiveness of any original
      filings necessary under the relevant UCC to perfect the Trustee’s security
      interest in or lien on the Mortgage Loans, including without limitation (x)
      continuation statements, and (y) such other statements as may be occasioned
      by
      (1) any change of name of the Sponsor, the Depositor or the Trustee, (2) any
      change of location of the jurisdiction of organization of the Sponsor or the
      Depositor, (3) any transfer of any interest of the Sponsor or the Depositor
      in
      any Mortgage Loan or (4) any change under the relevant UCC or other applicable
      laws. Neither the Sponsor nor the Depositor shall organize under the law of
      any
      jurisdiction other than the State under which each is organized as of the
      Closing Date (whether changing its jurisdiction of organization or organizing
      under an additional jurisdiction) without giving 30 days prior written notice
      of
      such action to its immediate and intermediate transferee, including the Trustee.
      Before effecting such change, the Sponsor or the Depositor proposing to change
      its jurisdiction of organization shall prepare and file in the appropriate
      filing office any financing statements or other statements necessary to continue
      the perfection of the interests of its immediate and intermediate transferees,
      including the Trustee, in the Mortgage Loans. In connection with the
      transactions contemplated by this Agreement, each of the Sponsor and the
      Depositor authorizes its immediate or intermediate transferee to file in any
      filing office any initial financing statements, any amendments to financing
      statements, any continuation statements, or any other statements or filings
      described in this paragraph (b).

    

    Section
      12.05 Notices.
      (a)  The Securities Administrator shall use its best efforts to
      promptly provide notice to each Rating Agency with respect to each of the
      following of which a Responsible Officer of the Securities Administrator has
      actual knowledge:

    

    1. Any
      amendment to this Agreement;

    

    2. The
      occurrence of any Event of Default that has not been cured;

    
      
        
        

      

      
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    3. The
      resignation or termination of the Servicer, the Master Servicer, the Securities
      Administrator or the Trustee and the appointment of any successor;

    

    4. The
      repurchase or substitution of Mortgage Loans pursuant to Section 2.03;

    

    5. The
      final
      payment to Certificateholders; and

    

    6. An
      Early
      Termination Event with respect to the Cap Agreement or the Swap
      Agreement.

    

    (b) In
      addition, the Securities Administrator shall promptly make available on its
      internet website to each Rating Agency copies of the following:

    

    1. Each
      report to Certificateholders described in Section 4.03; and

    

    2. Any
      notice of a purchase of a Mortgage Loan pursuant to
      Section 2.03.

    

    (c) All
      directions, demands, consents and notices hereunder shall be in writing and
      shall be deemed to have been duly given when delivered to: 

    

    (i) in
      the
      case of the Depositor,
      HSI
      Asset Securitization Corporation, 452 Fifth Avenue, 10th
      Floor,
      New York, New York 10018, Attention: Head MBS Principal Finance, or such other
      address as may be hereafter furnished to the other parties by the Depositor
      in
      writing;

    

    (ii) in
      the
      case of the Originator or Servicer,
      to
      Option One Mortgage Corporation, 3 Ada, Irvine California, Attention: Debbie
      Lonergan, or such other address as may be hereafter furnished to the other
      parties by Option One Mortgage Corporation in writing;

    

    (iii) in
      the
      case of the Master Servicer,
      CitiMortgage, Inc., 4000 Regent Boulevard, Irving, TX 75063, Attention: Master
      Servicing Division, Compliance Manager - HASCO 2007-OPT1, or such other address
      as may be hereafter furnished to the to the other parties by CitiMortgage in
      writing;

    

    (iv) in
      the
      case of the Securities Administrator,
      388
      Greenwich Street, 14th
      Floor,
      New York, New York 10013, Attention: Structured Finance Agency and Trust, HASCO
      2007-OPT1, or such other address as may be hereafter furnished to the other
      parties by Citibank in writing; 

    

    (v) in
      the
      case of the Trustee,
      the
      Corporate Trust Office (Attention: Corporate Trust Services - HB0701), or such
      other address as may be hereafter furnished to the to the other parties by
      the
      Trustee in writing;

    

    (vi) in
      the
      case of the Derivative Counterparty,
      Wachovia Bank, National Association, 301 South College Street, NC-8, Charlotte,
      North Carolina, 28202-0600, Attention: Bruce M. Young; 

    
      
        
        

      

      
        -159-

        
          

        

      

      
        
        

      

    

    

    (vii) in
      the
      case of the Credit Risk Manager,
      OfficeTiger Global Real Estate Services Inc., One Glenlake Parkway, Suite 1400,
      Atlanta, Ga. 30328, Attention: General Counsel. Notices to Certificateholders
      shall be deemed given when mailed, first class postage prepaid, to their
      respective addresses appearing in the Certificate Register; and

    

    (viii) in
      the
      case of each of the Rating Agencies,
      the
      address specified therefor in the definition corresponding to the name of such
      Rating Agency.

    

    Section
      12.06 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
      12.07 Assignment.
      Notwithstanding anything to the contrary contained herein, except as provided
      in
      Section 6.02, this Agreement may not be assigned by the Servicer without
      the prior written consent of the Master Servicer, the Trustee and Depositor;
      provided, however, that the Servicer may pledge its interest in any
      reimbursements for P&I Advances or Servicing Advances
      hereunder.

    

    Section
      12.08 Limitation
      on Rights of Certificateholders.
      The
      death or incapacity of any Certificateholder shall not operate to terminate
      this
      Agreement or the trust created hereby, nor entitle such Certificateholder’s
      legal representative or heirs to claim an accounting or to take any action
      or
      commence any proceeding in any court for a petition or winding up of the trust
      created hereby, or otherwise affect the rights, obligations and liabilities
      of
      the parties hereto or any of them.

    

    No
      Certificateholder shall have any right to vote (except as provided herein)
      or in
      any manner otherwise control the operation and management of the Trust Fund,
      or
      the obligations of the parties hereto, nor shall anything herein set forth
      or
      contained in the terms of the Certificates be construed so as to constitute
      the
      Certificateholders from time to time as partners or members of an association;
      nor shall any Certificateholder be under any liability to any third party by
      reason of any action taken by the parties to this Agreement pursuant to any
      provision hereof.

    

    No
      Certificateholder shall have any right by virtue or by availing itself of any
      provisions of this Agreement to institute any suit, action or proceeding in
      equity or at law upon or under or with respect to this Agreement, unless such
      Holder previously shall have given to the Trustee a written notice of an Event
      of Default and of the continuance thereof, as herein provided, and unless the
      Holders of Certificates evidencing not less than 25.00% of the Voting Rights
      evidenced by the Certificates shall also have made written request to the
      Trustee to institute such action, suit or proceeding in its own name as Trustee
      hereunder and shall have offered to the Trustee such reasonable indemnity as
      it
      may require against the costs, expenses, and liabilities to be incurred therein
      or thereby, and the Trustee, for 60 days after its receipt of such notice,
      request and offer of indemnity shall have neglected or refused to institute
      any
      such action, suit or proceeding; it being understood and intended, and being
      expressly covenanted by each Certificateholder with every other
      Certificateholder and the Trustee, that no one or more Holders of Certificates
      shall have any right in any manner whatever by virtue or by availing itself
      or
      themselves of any provisions of this Agreement to affect, disturb or prejudice
      the rights of the Holders of any other of the Certificates, or to obtain or
      seek
      to obtain priority over or preference to any other such Holder or to enforce
      any
      right under this Agreement, except in the manner herein provided and for the
      common benefit of all Certificateholders. For the protection and enforcement
      of
      the provisions of this Section 12.08, each and every Certificateholder and
      the Trustee shall be entitled to such relief as can be given either at law
      or in
      equity.

    
      
        
        

      

      
        -160-

        
          

        

      

      
        
        

      

    

    

    Section
      12.09 Inspection
      and Audit Rights.
      The
      Servicer agrees that, on reasonable prior notice, it will permit any
      representative of the Depositor, the Master Servicer and/or the Trustee during
      the Servicer’s normal business hours, to examine all the books of account,
      records, reports and other papers of the Servicer relating to the Mortgage
      Loans, to make copies and extracts therefrom, to cause such books to be audited
      by independent certified public accountants selected by the Depositor, the
      Master Servicer and/or the Trustee and to discuss its affairs, finances and
      accounts relating to the Mortgage Loans with its officers, employees and
      independent public accountants (and by this provision the Servicer hereby
      authorizes said accountants to discuss with such representative such affairs,
      finances and accounts), all at such reasonable times and as often as may be
      reasonably requested. Any out-of-pocket expense of the Servicer incident to
      the
      exercise by the Depositor, the Master Servicer and/or the Trustee of any right
      under this Section 12.09 shall be borne by the Servicer.

    

    Section
      12.10 Certificates
      Nonassessable and Fully Paid.
      It is
      the intention of the Depositor that Certificateholders shall not be personally
      liable for obligations of the Trust Fund, that the interests in the Trust Fund
      represented by the Certificates shall be nonassessable for any reason
      whatsoever, and that the Certificates, upon due authentication thereof by the
      Securities Administrator pursuant to this Agreement, are and shall be deemed
      fully paid.

    

    Section
      12.11 Rule of
      Construction.
      Article
      and section headings are for the convenience of the reader and shall not be
      considered in interpreting this Agreement or the intent of the parties
      hereto.

    

    Section
      12.12 Waiver
      of Jury Trial.
      EACH
      PARTY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, WAIVES (TO THE EXTENT
      PERMITTED BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY
      DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT AND AGREES THAT ANY SUCH
      DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY.

    

    [SIGNATURE
      PAGE FOLLOWS]

     

    

    
      
        
          
          

        

        
          -161-

          
            

          

        

        
          
          

        

      

    

    

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

    HSI
      ASSET
      SECURITIZATION 
CORPORATION, as Depositor

     

     

    By  
      /s/
      Andrea Lenox            
Name:
      Andrea Lenox
Title:
      Senior Vice President

     

     

    DEUTSCHE
      BANK NATIONAL TRUST 
COMPANY, as Trustee

     

     

    By:  /s/
      Ronaldo Reyes            
Name:
      Ronaldo Reyes
Title:
      Vice President

     

     

    DEUTSCHE
      BANK NATIONAL TRUST 
COMPANY, as Trustee

     

     

    By: 
      /s/
      Melissa Wilman
Name:
      Melissa Wilman
Title:
      Vice President

     

     

    CITIMORTGAGE,
      INC., as Master Servicer

     

     

    By: 
      /s/
      Tommy R Harris            
Name:
      Tommy R. Harris
Title:
      Sr. Vice President

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    CITIBANK,
      N.A., as Securities Administrator

     

     

    By: 
      /s/
      Jennifer McCourt
Name:
      Jennifer McCourt
Title:
      Vice President

     

     

    WELLS
      FARGO BANK, N.A., as Custodian

     

     

    By: 
      /s/
      Sanjay Patel
Name:
      Sanjay Patel
Title:
      Vice President

     

     

    OPTION
      ONE MORTGAGE CORPORATION, 
as Originator

     

     

    By: 
      /s/
      Charles R Fulton
Name:
      Charles R. Fulton
Title:
      Vice President

     

     

    OPTION
      ONE MORTGAGE CORPORATION, 
as Servicer

     

     

    By: 
      /s/
      Charles R Fulton
Name:
      Charles R. Fulton
Title:
      Vice President

     

     

    OFFICETIGER
      GLOBAL REAL ESTATE 
SERVICES INC., as Credit Risk Manager

     

     

    By: 
       /s/
      Ken N Beyer
Name:
      Ken
      N. Beyer
Title:
      President

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    ACKNOWLEDGED
      BY HSBC BANK USA, 
NATIONAL ASSOCIATION,

    as
      Sponsor, solely for the purposes of 
Section 2.03(k). 

     

     

    By:   
      /s/
      Jon E Voigtman                

    Name:
      Jon
      E. Voigtman

    Title:
      Officer #14311

     

     

     

     

     

     

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      I

    Mortgage
      Loan Schedule

    

    

    [To
      be
      retained in a separate closing binder entitled “HASCO 2007-OPT1 Mortgage Loan
      Schedules” at the Washington, D.C. offices of McKee Nelson LLP]

    

    
      
        
          
          

        

        
          SCH.
            I-1

          
            

          

        

        
          
          

        

      

    

    

       

      SCHEDULE
        II

       

      HSI
        Asset
        Securitization Corporation Trust, 2007-OPT1

      Mortgage
        Pass-Through Certificates, Series 2007-OPT1

       

      Representations
        and Warranties of Option One Mortgage Corporation, as Servicer

       

      Option
        One Mortgage Corporation, as Servicer hereby makes the representations and
        warranties set forth in this Schedule II to the Depositor, the Securities
        Administrator, the Master Servicer and the Trustee, as of the Closing
        Date.

       

      (1) Option
        One Mortgage Corporation is duly organized, validly existing and in good
        standing as a California Corporation and is duly authorized and qualified
        to
        transact any and all business contemplated by this Agreement to be conducted
        by
        the Servicer in any state in which a Mortgaged Property securing a Mortgage
        Loan
        is located or is otherwise not required under applicable law to effect such
        qualification and, in any event, is in compliance with the doing business
        laws
        of any such State, to the extent necessary to ensure its ability to enforce
        each
        Mortgage Loan and to service each Mortgage Loan in accordance with the terms
        of
        this Agreement;

       

      (2) The
        Servicer has the full power and authority to service each Mortgage Loan,
        and to
        execute, deliver and perform, and to enter into and consummate the transactions
        contemplated by this Agreement and has duly authorized by all necessary action
        on the part of the Servicer the execution, delivery and performance of this
        Agreement; and this Agreement, assuming the due authorization, execution
        and
        delivery thereof by the Depositor, the Originator, the Securities Administrator,
        the Master Servicer, the Sponsor, the Credit Risk Manager and the Trustee,
        constitutes a legal, valid and binding obligation of the Servicer, enforceable
        against the Servicer in accordance with its terms, except to the extent that
        (a) the enforceability thereof may be limited by bankruptcy, insolvency,
        moratorium, receivership and other similar laws relating to creditors’ rights
        generally and (b) the remedy of specific performance and injunctive and
        other forms of equitable relief may be subject to the equitable defenses
        and to
        the discretion of the court before which any proceeding therefor may be
        brought;

       

      (3) The
        execution and delivery of this Agreement by the Servicer, the servicing of
        the
        Mortgage Loans by the Servicer hereunder, the consummation by the Servicer
        of
        any other of the transactions herein contemplated, and the fulfillment of
        or
        compliance with the terms hereof are in the ordinary course of business of
        the
        Servicer and will not (A) result in a breach of any term or provision of
        the organizational documents of the Servicer or (B) conflict with, result
        in a breach, violation or acceleration of, or result in a default under,
        the
        terms of any other material agreement or instrument to which the Servicer
        is a
        party or by which it may be bound, or any statute, order or regulation
        applicable to the Servicer of any court, regulatory body, administrative
        agency
        or governmental body having jurisdiction over the Servicer; and the Servicer
        is
        not a party to, bound by, or in breach or violation of any indenture or other
        agreement or instrument, or subject to or in violation of any statute, order
        or
        regulation of any court, regulatory body, administrative agency or governmental
        body having jurisdiction over it, which materially and adversely affects
        or, to
        the Servicer’s knowledge, would in the future materially and adversely affect,
        (x) the ability of the Servicer to perform its obligations under this
        Agreement or (y) the business, operations, financial condition, properties
        or assets of the Servicer taken as a whole;

      
        
          
          

        

        
          SCH.
            II-1

          
            

          

        

        
          
          

        

      

       

      (4) The
        Servicer is an approved seller/servicer for Fannie Mae and an approved servicer
        for Freddie Mac in good standing;

       

      (5) No
        litigation is pending against the Servicer (or any Subservicer) that would
        materially and adversely affect the execution, delivery or enforceability
        of
        this Agreement or the ability of the Servicer (or any Subservicer) to service
        the Mortgage Loans or to perform any of its other obligations hereunder in
        accordance with the terms hereof;

       

      (6) No
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by the Servicer
        of,
        or compliance by the Servicer with, this Agreement or the consummation by
        the
        Servicer of the transactions contemplated by this Agreement, except for such
        consents, approvals, authorizations or orders, if any, that have been obtained
        prior to the Closing Date; 

       

      (7) Except
        as
        disclosed in writing to the Master Servicer, the Depositor, the Trustee,
        and the
        Securities Administrator, prior to the Closing Date: (i) the Servicer is
        not
        aware and has not received notice that any default, early amortization or
        other
        performance triggering event has occurred as to any other securitization
        due to
        any act or failure to act of the Servicer; (ii) the Servicer has not been
        terminated as servicer in a residential mortgage loan securitization, either
        due
        to a servicing default or to application of a servicing performance test
        or
        trigger; (iii) no material noncompliance with the relevant servicing criteria
        with respect to other securitizations of residential mortgage loans involving
        the Servicer as servicer has been disclosed or reported by the Servicer;
        (iv) no
        material changes to the Servicer’s policies or procedures with respect to the
        servicing function it will perform under this Agreement for mortgage loans
        of a
        type similar to the Mortgage Loans have occurred during the three-year period
        immediately preceding the Closing Date; (v) there are no aspects of the
        Servicer’s financial condition that could have a material adverse effect on the
        performance by the Servicer’s financial condition that could have a material
        adverse effect on the performance by the Servicer of its servicing obligations
        under this Agreement and (vi) there are no affiliations, relationships or
        transactions relating to the Servicer or any Subservicer with any party listed
        on Exhibit T hereto.

       

      (8) The
        Servicer has the facilities, procedures and experienced personnel necessary
        for
        the sound servicing of mortgage loans of the same type as the Mortgage Loans;
        and

       

      (9) With
        respect to each Mortgage Loan, to the extent the Servicer serviced such Mortgage
        Loan and to the extent the Servicer provided monthly reports to the three
        credit
        repositories, the Servicer has fully furnished, in accordance with the Fair
        Credit Reporting Act and its implementing regulations, accurate and complete
        information (i.e., favorable and unfavorable) on its borrower credit files
        to
        Equifax, Experian, and Trans Union Credit Information Company (three of the
        credit repositories), on a monthly basis.

      
        
          
          

        

        
          SCH.
            II-2

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
        III

       

      HSI
        Asset
        Securitization Corporation Trust 2007-OPT1

      Mortgage
        Pass-Through Certificates, Series 2007-OPT1

       

      Representations
        and Warranties of Option One Mortgage Corporation as Originator

       

      Option
        One Mortgage Corporation, as Originator, hereby makes the representations
        and
        warranties set forth in this Schedule III to the Depositor and the Trustee,
        as of the Closing Date. 

       

      (1) The
        Originator is a corporation duly organized, validly existing and in good
        standing under the laws of the state of California and has all licenses
        necessary to carry on its business as now being conducted and is licensed,
        qualified and in good standing in each state wherein it owns or leases any
        material properties or where a Mortgaged Property is located, if the laws
        of
        such state require licensing or qualification in order to conduct business
        of
        the type conducted by the Originator, and in any event the Originator is
        in
        compliance with the laws of any such state to the extent necessary; the
        Originator has the full corporate power, authority and legal right to execute
        and deliver this Agreement and to perform its obligations hereunder; the
        execution, delivery and performance of this Agreement by the Originator and
        the
        consummation of the transactions contemplated hereby have been duly and validly
        authorized; this Agreement and all agreements contemplated hereby have been
        duly
        executed and delivered and constitute the valid, legal, binding and enforceable
        obligations of the Originator, regardless of whether such enforcement is
        sought
        in a proceeding in equity or at law; and all requisite corporate action has
        been
        taken by the Originator to make this Agreement and all agreements contemplated
        hereby valid and binding upon the Originator in accordance with their
        terms;

       

      (2) Neither
        the execution and delivery of this Agreement, the consummation of the
        transactions contemplated hereby, nor the fulfillment of or compliance with
        the
        terms and conditions of this Agreement, will conflict with or result in a
        breach
        of any of the terms, conditions or provisions of the Originator’s charter or
        by-laws or any legal restriction or any agreement or instrument to which
        the
        Originator is now a party or by which it is bound, or constitute a default
        or
        result in an acceleration under any of the foregoing, or result in the violation
        of any law, rule, regulation, order, judgment or decree to which the Originator
        or its property is subject, or result in the creation or imposition of any
        lien,
        charge or encumbrance that would have an adverse effect upon any of its
        properties pursuant to the terms of any mortgage, contract, deed of trust
        or
        other instrument;

       

      (3) There
        is
        no action, suit, proceeding or investigation pending or threatened against
        the
        Originator, before any court, administrative agency or other tribunal asserting
        the invalidity of this Agreement, seeking to prevent the consummation of
        any of
        the transactions contemplated by this Agreement or which, either in any one
        instance or in the aggregate, may result in any material adverse change in
        the
        business, operations, financial condition, properties or assets of the
        Originator, or in any material impairment of the right or ability of the
        Originator to carry on its business substantially as now conducted, or in
        any
        material liability on the part of the Originator, or which would draw into
        question the validity of this Agreement or of any action taken or to be taken
        in
        connection with the obligations of the Originator contemplated herein, or
        which
        would be likely to impair materially the ability of the Originator to perform
        under the terms of this Agreement; and

      
        
          
          

        

        
          SCH.
            III-1

          
            

          

        

        
          
          

        

      

       

      (4) No
        consent, approval, authorization or order of, or registration or filing with,
        or
        notice to any court or governmental agency or body including HUD, the FHA
        or the
        VA is required for the execution, delivery and performance by the Originator
        of
        or compliance by the Originator with this Agreement or the consummation of
        the
        transactions contemplated by this Agreement, or if required, such approval
        has
        been obtained prior to the Closing Date.

       

      

      
        
          
          

        

        
          SCH.
            III-2

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
        IV

       

      HSI
        Asset
        Securitization Corporation Trust 2007-OPT1

      Mortgage
        Pass-Through Certificates, Series 2007-OPT1

       

      Representations
        and Warranties of the Originator

      as
        to
        the Individual Mortgage Loans

       

      The
        Originator hereby makes the representations and warranties set forth in this
        Schedule IV as to the Mortgage Loans, to the Depositor, the Securities
        Administrator, the Master Servicer and the Trustee as of the Initial Sale
        Date
        or such other date as may be specified below. Capitalized terms used but
        not
        otherwise defined in this Agreement (including this Schedule IV) shall have
        the
        meanings ascribed thereto in the Master MLPSA.

       

      (1) The
        information set forth in the related Mortgage Loan Schedule is complete,
        true
        and correct as of the Initial Sale Date, unless another date is set forth
        in the
        Mortgage Loan Schedule;

       

      (2) The
        Mortgage Loan is in compliance with all requirements set forth in the related
        Confirmation; provided, however, that in the event of any conflict between
        the
        terms (i.e., terms contradict each
        other as opposed to containing additional contradictory terms) of any
        Confirmation and the Master MLPSA, the terms of the Master MLPSA shall
        control.

       

      (3) Except
        with respect to payments not yet 30 days past due, all payments required
        to be
        made up to the close of business on the Initial Sale Date for such Mortgage
        Loan
        under the terms of the Mortgage Note have been made; the Originator has not
        advanced funds, or induced, solicited or knowingly received any advance of
        funds
        from a party other than the owner of the related Mortgaged Property, directly
        or
        indirectly, for the payment of any amount required by the Mortgage Note or
        Mortgage (except for interest accruing from the date of the Mortgage Note
        or the
        date of disbursement of the Mortgage proceeds, whichever is greater, to the
        day
        which precedes by one month the Due Date of the first installment of principal
        and interest); and except with respect to payments not yet 30 days past due,
        there has been no delinquency, exclusive of any period of grace, in any payment
        by the Mortgagor thereunder since the origination of the Mortgage
        Loan;

       

      (4) There
        are
        no delinquent taxes, ground rents, water charges, sewer rents, assessments,
        insurance premiums, leasehold payments, including assessments payable in
        future
        installments or other outstanding charges affecting the related Mortgaged
        Property;

       

      (5) The
        terms
        of the Mortgage Note and the Mortgage have not been impaired, waived, altered
        or
        modified in any respect, except by written instruments, recorded in the
        applicable public recording office if necessary to maintain the lien priority
        of
        the Mortgage, and which have been delivered to the Trustee on behalf of the
        Sponsor; the substance of any such waiver, alteration or modification has
        been
        approved by the title insurer, to the extent required by the related policy,
        and
        is reflected on the related Mortgage Loan Schedule. No instrument of waiver,
        alteration or modification has been executed, and no Mortgagor has been
        released, in whole or in part, except in connection with an assumption agreement
        approved by the title insurer, to the extent required by the policy, and
        which
        assumption agreement has been delivered to the Custodian and the terms of
        which
        are reflected in the related Mortgage Loan Schedule;

      
        
          
          

        

        
          SCH.
            IV-1

          
            

          

        

        
          
          

        

      

       

      (6) The
        Mortgage Note and the Mortgage are not subject to any right of rescission,
        set-off, counterclaim or defense, including the defense of usury, nor will
        the
        operation of any of the terms of the Mortgage Note and the Mortgage, or the
        exercise of any right thereunder, render the Mortgage unenforceable, in whole
        or
        in part, or subject to any right of rescission, set-off, counterclaim or
        defense, including the defense of usury and no such right of rescission,
        set-off, counterclaim or defense has been asserted with respect thereto.
        Each
        Prepayment Charge or penalty with respect to any Mortgage Loan is permissible,
        enforceable and collectible under applicable federal, state and local
        law;

       

      (7) All
        buildings upon the Mortgaged Property are insured by an insurer acceptable
        to
        Fannie Mae and Freddie Mac against loss by fire, hazards of extended coverage
        and such other hazards as are customary in the area where the Mortgaged Property
        is located, in an amount not less than the greatest of (i) 100.00% of the
        replacement cost of all improvements to the Mortgaged Property, (ii) either
        (A) the outstanding principal balance of the Mortgage Loan with respect to
        each first lien Mortgage Loan or (B) with respect to each second lien
        Mortgage Loan, the sum of the outstanding principal balance of the related
        first
        lien mortgage loan and the outstanding principal balance of the second lien
        Mortgage Loan, (iii) the amount necessary to avoid the operation of any
        co-insurance provisions with respect to the Mortgaged Property, and consistent
        with the amount that would have been required as of the date of origination
        in
        accordance with the underwriting guidelines or (iv) the amount necessary to
        fully compensate for any damage or loss to the improvements that are a part
        of
        such property on a replacement cost basis. All such insurance policies contain
        a
        standard mortgagee clause naming the Originator, its successors and assigns
        as
        mortgagee and all premiums thereon have been paid. If the Mortgaged Property
        is
        in an area identified on a Flood Hazard Map or Flood Insurance Rate Map issued
        by the Federal Emergency Management Agency as having special flood hazards
        (and
        such flood insurance has been made available) a flood insurance policy meeting
        the requirements of the current guidelines of the Federal Insurance
        Administration is in effect which policy conforms to the requirements of
        the
        Underwriting Guidelines. The Mortgage obligates the Mortgagor thereunder
        to
        maintain all such insurance at the Mortgagor’s cost and expense, and on the
        Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain
        such insurance at Mortgagor’s cost and expense and to seek reimbursement
        therefor from the Mortgagor;

       

      (8) Any
        and
        all requirements of any federal, state or local law including, without
        limitation, usury, truth in lending, real estate settlement procedures,
        predatory and abusive lending, consumer credit protection, equal credit
        opportunity, fair housing or disclosure laws applicable to the origination
        and
        servicing of mortgage loans of a type similar to the Mortgage Loans have
        been
        complied with;

      
        
          
          

        

        
          SCH.
            IV-2

          
            

          

        

        
          
          

        

      

       

      (9) The
        Mortgage has not been satisfied, cancelled, subordinated or rescinded, in
        whole
        or in part, and the Mortgaged Property has not been released from the lien
        of
        the Mortgage, in whole or in part, nor has any instrument been executed that
        would effect any such satisfaction, cancellation, subordination, rescission
        or
        release;

       

      (10) The
        Mortgage (including any negative amortization which may arise thereunder)
        is a
        valid, existing and enforceable first or second lien (as indicated on the
        Mortgage Loan Schedule) on the Mortgaged Property, including all improvements
        on
        the Mortgaged Property subject only to (a) the lien of current real
        property taxes and assessments not yet due and payable, (b) covenants,
        conditions and restrictions, rights of way, easements and other matters of
        the
        public record as of the date of recording being acceptable to mortgage lending
        institutions generally and specifically referred to in the lender’s title
        insurance policy delivered to the originator of the Mortgage Loan and which
        do
        not adversely affect the Appraised Value of the Mortgaged Property, (c) to
        the extent the Mortgage Loan is a second lien Mortgage Loan (as reflected
        on the
        Mortgage Loan Schedule), the related first lien on the Mortgaged Property;
        and
        (d) other matters to which like properties are commonly subject which do
        not materially interfere with the benefits of the security intended to be
        provided by the Mortgage or the use, enjoyment, value or marketability of
        the
        related Mortgaged Property. Any security agreement, chattel mortgage or
        equivalent document related to and delivered in connection with the Mortgage
        Loan establishes and creates a valid, existing and enforceable first or second
        lien and first or second priority security interest (in each case, as indicated
        on the Mortgage Loan Schedule) on the property described therein and the
        Originator has full right to sell and assign the same to the Sponsor. The
        Mortgaged Property was not, as of the date of origination of the Mortgage
        Loan,
        subject to a mortgage, deed of trust, deed to secure debt or other security
        instrument creating a lien subordinate to the lien of the Mortgage;

       

      (11) The
        Mortgage Note and the related Mortgage are genuine and each is the legal,
        valid
        and binding obligation of the maker thereof, enforceable in accordance with
        its
        terms;

       

      (12) All
        parties to the Mortgage Note and the Mortgage had legal capacity to enter
        into
        the Mortgage Loan and to execute and deliver the Mortgage Note and the Mortgage,
        and the Mortgage Note and the Mortgage have been duly and properly executed
        by
        such parties. The Mortgagor is a natural person who executed the related
        Mortgage either in an individual capacity or, provided that the related Mortgage
        is guaranteed by a natural person, as trustee for a family trust;

       

      (13) The
        proceeds of the Mortgage Loan have been fully disbursed to or for the account
        of
        the Mortgagor and there is no obligation for the Mortgagee to advance additional
        funds thereunder and any and all requirements as to completion of any on-site
        or
        off-site improvement and as to disbursements of any escrow funds therefor
        have
        been complied with. All costs, fees and expenses incurred in making or closing
        the Mortgage Loan and the recording of the Mortgage have been paid, and the
        Mortgagor is not entitled to any refund of any amounts paid or due to the
        Mortgagee pursuant to the Mortgage Note or Mortgage;

      
        
          
          

        

        
          SCH.
            IV-3

          
            

          

        

        
          
          

        

      

       

      (14) As
        of the
        Initial Sale Date and immediately prior to the transfer and assignment of
        each
        Mortgage Loan by the Originator to the Sponsor, the Originator was the sole
        legal, beneficial and equitable owner of the Mortgage Note and the Mortgage.
        The
        Originator has full right to transfer and sell the Mortgage Loan to the Sponsor
        free and clear of any encumbrance, equity, lien, pledge, charge, claim or
        security interest;

       

      (15) All
        parties which have had any interest in the Mortgage Loan, whether as mortgagee,
        assignee, pledgee or otherwise, are (or, during the period in which they
        held
        and disposed of such interest, were) in compliance with any and all applicable
        “doing business” and licensing requirements of the laws of the state wherein the
        Mortgaged Property is located;

       

      (16) The
        Mortgage Loan is covered by an American Land Title Association
        (“ALTA”)
        lender’s title insurance policy (which, in the case of an Adjustable Rate
        Mortgage Loan has an adjustable rate mortgage endorsement in the form of
        ALTA
        6.0 or 6.1) issued by a title insurer acceptable to the Underwriting Guidelines
        and qualified to do business in the jurisdiction where the Mortgaged Property
        is
        located, insuring (subject to the exceptions contained in (10)(a) and (b)
        and
        with respect to any second lien Mortgage Loan (c) above) the Originator,
        its successors and assigns as to the first or second (as indicated on the
        related Mortgage Loan Schedule) priority lien of the Mortgage in the original
        principal amount of the Mortgage Loan (including, if the Mortgage Loan provides
        for amortization, the maximum amount of negative amortization in accordance
        with
        the Mortgage) and, with respect to any Adjustable Rate Mortgage Loan, against
        any loss by reason of the invalidity or unenforceability of the lien resulting
        from the provisions of the Mortgage providing for adjustment in the Mortgage
        Rate and Scheduled Payment and negative amortization provisions of the Mortgage
        Note. Additionally, such lender’s title insurance policy affirmatively insures
        ingress and egress to and from the Mortgaged Property, and against encroachments
        by or upon the Mortgaged Property or any interest therein. The Originator
        is the
        sole insured of such lender’s title insurance policy, and such lender’s title
        insurance policy is in full force and effect and will be in full force and
        effect upon the consummation of the transactions contemplated by this Agreement.
        No claims have been made under such lender’s title insurance policy, and no
        prior holder of the related Mortgage, including the Originator, has done,
        by act
        or omission, anything which would impair the coverage of such lender’s title
        insurance policy; 

       

      (17) Except
        as
        otherwise disclosed to the Sponsor, there is no default, breach, violation
        or
        event of acceleration existing under the Mortgage or the Mortgage Note, no
        event
        which, with the passage of time or with notice and the expiration of any
        grace
        or cure period, would constitute a default, breach, violation or event of
        acceleration, and the Originator has not waived any default, breach, violation
        or event of acceleration. With respect to each second lien Mortgage Loan,
        except
        as otherwise disclosed to the Sponsor, (i) the first lien mortgage loan is
        in full force and effect, (ii) there is no default, breach, violation or
        event of acceleration existing under such first lien mortgage or the related
        Mortgage Note, (iii) no event which, with the passage of time or with
        notice and the expiration of any grace or cure period, would constitute a
        default, breach, violation or event of acceleration thereunder, (iv) either
        (A) the first lien mortgage contains a provision which allows or
        (B) applicable law requires, the mortgagee under the second lien Mortgage
        Loan to receive notice of, and affords such mortgagee an opportunity to cure
        any
        default by payment in full or otherwise under the first lien mortgage,
        (v) the related first lien does not provide for or permit negative
        amortization under such first lien Mortgage Loan, and (vi) either no
        consent for the Mortgage Loan is required by the holder of the first lien
        or
        such consent has been obtained and is contained in the Mortgage File.
For
        purposes of the foregoing, a delinquent payment of less than thirty (30)
        days on
        a Mortgage Loan in and of itself does not constitute a default, breach,
        violation or event of acceleration (or an event which, with the passage of
        time
        or with notice and the expiration of any grace or cure period, has occurred
        that
        would constitute a default, breach, violation or event of acceleration) with
        respect to such Mortgage Loan;

      
        
          
          

        

        
          SCH.
            IV-4

          
            

          

        

        
          
          

        

      

       

      (18) There
        are
        no mechanics’ or similar liens or claims which have been filed for work, labor
        or material (and no rights are outstanding that under law could give rise
        to
        such lien) affecting the related Mortgaged Property which are or may be liens
        prior to, or equal or coordinate with, the lien of the related
        Mortgage;

       

      (19) All
        improvements which were considered in determining the Appraised Value of
        the
        related Mortgaged Property lay wholly within the boundaries and building
        restriction lines of the Mortgaged Property, and no improvements on adjoining
        properties encroach upon the Mortgaged Property;

       

      (20) The
        Mortgage Loan was originated or acquired by the Originator (and if acquired
        by
        the Originator, the Mortgage Loan was underwritten in all material respects
        with
        the Originator’s underwriting guidelines, and if a first-lien Mortgage Loan, is
        eligible for inclusion under a Secondary Mortgage Market Enhancement Act
        eligible transaction) or by a savings and loan association, a savings bank,
        a
        commercial bank or similar banking institution which is supervised and examined
        by a federal or state authority, or by a mortgagee approved as such by the
        Secretary of HUD;

       

      (21) Payments
        on the Mortgage Loans commenced no more than sixty days after the proceeds
        of the Mortgage Loan were disbursed. The Mortgage Loan bears interest at
        the
        Mortgage Rate. With respect to each Mortgage Loan which is not a negative
        amortization Loan, the Mortgage Note is payable on the first day of each
        month
        in Scheduled Payments, which, in the case of Fixed Rate Mortgage Loans, are
        sufficient to fully amortize the original principal balance over the original
        term thereof (other than with respect to a Mortgage Loan identified on the
        related Mortgage Loan Schedule as an interest-only Mortgage Loan during the
        interest-only period or a Mortgage Loan which is identified on the related
        Mortgage Loan Schedule as a Balloon Mortgage Loan) and to pay interest at
        the
        related Mortgage Rate, and, in the case of an Adjustable Rate Mortgage Loan,
        are
        changed on each Adjustment Date, and in any case, are sufficient to fully
        amortize the original principal balance over the original term thereof (other
        than with respect to a Mortgage Loan identified on the related Mortgage Loan
        Schedule as an interest-only Mortgage Loan during the interest-only period
        or a
        Mortgage Loan which is identified on the related Mortgage Loan Schedule as
        a
        Balloon Mortgage Loan) and to pay interest at the related Mortgage Rate.
        With
        respect to each negative amortization Mortgage Loan, the related Mortgage
        Note
        requires a Scheduled Payment which is sufficient during the period following
        each Payment Adjustment Date, to fully amortize the outstanding principal
        balance as of the first day of such period (including any negative amortization)
        over the then remaining term of such Mortgage Note and to pay interest at
        the
        related Mortgage Rate; provided, that the Scheduled Payment shall not increase
        to an amount that exceeds 107.50% of the amount of the Scheduled Payment
        that
        was due immediately prior to the Payment Adjustment Date; provided, further,
        that the payment adjustment cap shall not be applicable with respect to the
        adjustment made to the Scheduled Payment that occurs in a year in which the
        Mortgage Loan has been outstanding for a multiple of 5 years and in any
        such year the Scheduled Payment shall be adjusted to fully amortize the Mortgage
        Loan over the remaining term. With respect to each Mortgage Loan identified
        on
        the Mortgage Loan Schedule as an interest-only Mortgage Loan, the interest-only
        period shall not exceed ten (10) years (or such other period specified on
        the Mortgage Loan Schedule) and following the expiration of such interest-only
        period, the remaining Scheduled Payments shall be sufficient to fully amortize
        the original principal balance over the remaining term of the Mortgage Loan.
        With respect to each Balloon Mortgage Loan, the Mortgage Note requires a
        monthly
        payment which is sufficient to fully amortize the original principal balance
        over the original term thereof and to pay interest at the related Mortgage
        Rate
        and requires a final Scheduled Payment substantially greater than the preceding
        monthly payment which is sufficient to repay the remained unpaid principal
        balance of the Balloon Mortgage Loan as the Due Date of such monthly payment.
        The Index for each Adjustable Rate Mortgage Loan is as defined in the related
        Confirmation. No Mortgage Loan is a Convertible Mortgage Loan;

      
        
          
          

        

        
          SCH.
            IV-5

          
            

          

        

        
          
          

        

      

       

      (22) The
        origination, servicing and collection practices used by the Originator with
        respect to each Mortgage Note and Mortgage including, without limitation,
        the
        establishment, maintenance and servicing of the Escrow Accounts and Escrow
        Payments, if any, since origination, have been in all respects legal, proper,
        prudent and customary in the mortgage origination and servicing industry.
        The
        Mortgage Loans have been serviced by the Originator and any predecessor servicer
        in accordance with the terms of the Mortgage Note. With respect to escrow
        deposits and Escrow Payments, if any, all such payments are in the possession
        of, or under the control of, the Originator and there exist no deficiencies
        in
        connection therewith for which customary arrangements for repayment thereof
        have
        not been made. No escrow deposits or Escrow Payments or other charges or
        payments due the Originator have been capitalized under any Mortgage or the
        related Mortgage Note and no such escrow deposits or Escrow Payments are
        being
        held by Option One Mortgage Corporation for any work on a Mortgaged Property
        which has not been completed;

       

      (23) The
        Mortgaged Property is free of material damage and waste and there is no
        proceeding pending for the total or partial condemnation thereof;

       

      (24) The
        Mortgage and related Mortgage Note contain customary and enforceable provisions
        such as to render the rights and remedies of the holder thereof adequate
        for the
        realization against the Mortgaged Property of the benefits of the security
        provided thereby, including, (a) in the case of a Mortgage designated as a
        deed of trust, by trustee’s sale, and (b) otherwise by judicial
        foreclosure. Since the date of origination of the Mortgage Loan, the Mortgaged
        Property has not been subject to any bankruptcy proceeding or foreclosure
        proceeding and the Mortgagor has not filed for protection under applicable
        bankruptcy laws. There is no homestead or other exemption available to the
        Mortgagor which would interfere with the right to sell the Mortgaged Property
        at
        a trustee’s sale or the right to foreclose the Mortgage. Except as otherwise
        disclosed to the Sponsor, the Mortgagor has not notified the Originator and
        the
        Originator has no knowledge of any relief requested by the Mortgagor under
        the
        Servicemembers Civil Relief Act;

      
        
          
          

        

        
          SCH.
            IV-6

          
            

          

        

        
          
          

        

      

       

      (25) The
        Mortgage Loan was underwritten in accordance with the underwriting standards
        of
        the Originator in effect at the time the Mortgage Loan was originated; and
        the
        Mortgage Note and Mortgage are on forms acceptable to Fannie Mae and Freddie
        Mac;

       

      (26) The
        Mortgage Note is not and has not been secured by any collateral except the
        lien
        of the corresponding Mortgage on the Mortgaged Property and the security
        interest of any applicable security agreement or chattel mortgage referred
        to in
        (10) above;

       

      (27) The
        Mortgage File contains an appraisal of the related Mortgaged Property which
        satisfied the standards of Fannie Mae and Freddie Mac, was on appraisal Form
        1004 or Form 2055 (or a form otherwise satisfactory to S&P and Moody’s) and
        was made and signed, prior to the approval of the Mortgage Loan application,
        by
        a qualified appraiser, duly appointed by the Originator, who had no interest,
        direct or indirect in the Mortgaged Property or in any loan made on the security
        thereof, whose compensation is not affected by the approval or disapproval
        of
        the Mortgage Loan and who met the minimum qualifications of Fannie Mae and
        Freddie Mac. Each appraisal of the Mortgage Loan was made in accordance with
        the
        relevant provisions of the Financial Institutions Reform, Recovery, and
        Enforcement Act of 1989;

       

      (28) In
        the
        event the Mortgage constitutes a deed of trust, a trustee, duly qualified
        under
        applicable law to serve as such, has been properly designated and currently
        so
        serves and is named in the Mortgage, and no fees or expenses are or will
        become
        payable by the Sponsor to the trustee under the deed of trust, except in
        connection with a trustee’s sale after default by the Mortgagor;

       

      (29) No
        Mortgage Loan contains provisions pursuant to which Scheduled Payments are
        (a) paid or partially paid with funds deposited in any separate account
        established by the Originator, the Mortgagor, or anyone on behalf of the
        Mortgagor, (b) paid by any source other than the Mortgagor or
        (c) contains any other similar provisions which may constitute a “buydown”
provision. The Mortgage Loan is not a graduated payment mortgage loan and
        the
        Mortgage Loan does not have a shared appreciation or other contingent interest
        feature;

       

      (30) The
        Mortgagor has executed a statement to the effect that the Mortgagor has received
        all disclosure materials required by applicable law with respect to the making
        of fixed rate mortgage loans in the case of Fixed Rate Mortgage Loans, and
        adjustable rate mortgage loans in the case of Adjustable Rate Mortgage Loans
        and
        rescission materials with respect to Refinanced Mortgage Loans, and such
        statement is and will remain in the Mortgage File;

      
        
          
          

        

        
          SCH.
            IV-7

          
            

          

        

        
          
          

        

      

       

      (31) No
        Mortgage Loan was made in connection with (a) the construction or
        rehabilitation of a Mortgaged Property or (b) facilitating the trade-in or
        exchange of a Mortgaged Property;

       

      (32) The
        Originator has no knowledge of any circumstances or condition with respect
        to
        the Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor's credit
        standing that can reasonably be expected to cause private institutional
        investors who routinely invest in mortgage loans similar to the Mortgage
        Loan to
        regard the Mortgage Loan to be an unacceptable investment, cause the Mortgage
        Loan to become delinquent, or adversely affect the value of the Mortgage
        Loan;

       

      (33) No
        Mortgage Loan had an LTV or CLTV at origination in excess of
        100.00%;

       

      (34) The
        Mortgaged Property is lawfully occupied under applicable law; all inspections,
        licenses and certificates required to be made or issued with respect to all
        occupied portions of the Mortgaged Property and, with respect to the use
        and
        occupancy of the same, including but not limited to certificates of occupancy,
        have been made or obtained from the appropriate authorities;

       

      (35) No
        error,
        omission, misrepresentation, negligence, fraud or similar occurrence with
        respect to the origination, modification or amendment of a Mortgage Loan
        has
        taken place on the part of the Originator, any related seller, or, to the
        best
        of the Originator’s knowledge, any person, including without limitation the
        Mortgagor, any appraiser, any builder or developer, or any other party involved
        in the origination of the Mortgage Loan or in the application of any insurance
        in relation to such Mortgage Loan;

       

      (36) The
        Assignment of Mortgage is in recordable form, except for the name of the
        assignee which is blank, and is acceptable for recording under the laws of
        the
        jurisdiction in which the Mortgaged Property is located;

       

      (37) Any
        principal advances made to the Mortgagor prior to the Cut-off Date have been
        consolidated with the outstanding principal amount secured by the Mortgage,
        and
        the secured principal amount, as consolidated, bears a single interest rate
        and
        single repayment term. The lien of the Mortgage securing the consolidated
        principal amount is expressly insured as having first or second (as indicated
        on
        the Mortgage Loan Schedule) lien priority by a title insurance policy, an
        endorsement to the policy insuring the mortgagee’s consolidated interest or by
        other title evidence acceptable to Fannie Mae or Freddie Mac. The consolidated
        principal amount does not exceed the original principal amount of the Mortgage
        Loan plus any negative amortization;

       

      (38) If
        the
        Residential Dwelling on the Mortgaged Property is a condominium unit or a
        unit
        in a planned unit development (other than a de minimis planned unit development)
        such condominium or planned unit development project meets the eligibility
        requirements of the Originator’s underwriting guidelines;

      
        
          
          

        

        
          SCH.
            IV-8

          
            

          

        

        
          
          

        

      

       

      (39) The
        source of the down payment with respect to each Mortgage Loan has been fully
        verified by the Originator, except as noted on the Mortgage Loan
        Schedule;

       

      (40) Interest
        on each Mortgage Loan is calculated on the basis of a 360 day year
        consisting of twelve 30-day months;

       

      (41) The
        Mortgaged Property is in material compliance with all applicable environmental
        laws pertaining to environmental hazards including, without limitation,
        asbestos, and neither the Originator nor, to the Originator’s knowledge, the
        related Mortgagor, has received any notice of any violation or potential
        violation of such law;

       

      (42) The
        Originator shall, at its own expense, cause each Mortgage Loan to be covered
        by
        a tax service contract which is assignable to the Sponsor or its designee;
        provided however,
        that if
        the Originator fails to purchase such tax service contract, the Originator
        shall
        be required to reimburse the Sponsor for all costs and expenses incurred
        by the
        Sponsor in connection with the purchase of any such tax service
        contract;

       

      (43) Each
        Mortgage Loan is covered by a Flood Zone Service Contract which is assignable
        to
        the Sponsor or its designee or, for each Mortgage Loan not covered by such
        Flood
        Zone Service Contract, the Originator agrees to purchase such Flood Zone
        Service
        Contract;

       

      (44) No
        Mortgage Loan is (a) subject to the provisions of the Homeownership and
        Equity Protection Act of 1994 as amended (“HOEPA”),
        (b) a “high cost” mortgage loan, “covered” mortgage loan, “high risk home”
mortgage loan or “predatory” mortgage loan or any other comparable term, no
        matter how defined under any federal, state or local law, or (c) subject to
        any comparable federal, state or local statutes or regulations, or any other
        statute or regulation providing for heightened regulatory scrutiny or assignee
        liability to holders of such mortgage loans, or (d) a High Cost Loan or
        Covered Loan, as applicable (as such terms are defined in the then applicable
        Standard & Poor’s LEVELS® Glossary Revised, Appendix E);

       

      (45) No
        predatory, abusive or deceptive lending practices, including but not limited
        to,
        the extension of credit to a Mortgagor without regard for the Mortgagor’s
        ability to repay the Mortgage Loan and the extension of credit to a Mortgagor
        which has no apparent benefit to the Mortgagor, were employed in connection
        with
        the origination of the Mortgage Loan. Except with respect to escrow deposits,
        each Points and Fees Eligible Loan is in compliance with the anti-predatory
        lending eligibility for purchase requirements of the Fannie Mae
        Guides;

       

      (46) The
        debt-to-income ratio of the related Mortgagor was not greater than 60.00%
        at the
        origination of the related Mortgage Loan;

       

      (47) No
        Mortgagor was required to purchase any credit insurance product (e.g.,
        life,
        mortgage, disability, accident, unemployment or health insurance product)
        or
        debt cancellation agreement as a condition of obtaining the extension of
        credit.
        No Mortgagor obtained a prepaid single premium credit life, mortgage,
        disability, accident, unemployment or health insurance product in connection
        with the origination of the Mortgage Loan. No proceeds from any Mortgage
        Loan
        were used to purchase single premium credit insurance policies as part of
        the
        origination of, or as a condition to closing, such Mortgage Loan;

      
        
          
          

        

        
          SCH.
            IV-9

          
            

          

        

        
          
          

        

      

       

      (48) The
        Mortgage Loans were not selected from the outstanding fixed rate or adjustable
        rate one to four-family mortgage loans in the Originator’s portfolio at the
        related Initial Sale Date as to which the representations and warranties
        set
        forth in this Agreement could be made in a manner so as to affect adversely
        the
        interests of the Sponsor;

       

      (49) The
        Mortgage contains an enforceable provision for the acceleration of the payment
        of the unpaid principal balance of the Mortgage Loan in the event that the
        Mortgaged Property is sold or transferred without the prior written consent
        of
        the mortgagee thereunder;

       

      (50) The
        Mortgage Loan complies with all applicable consumer credit statutes and
        regulations, including, without limitation, the respective Uniform Consumer
        Credit Code laws in effect in Alabama, Colorado, Idaho, Indiana, Iowa, Kansas,
        Maine, Oklahoma, South Carolina, Utah, West Virginia and Wyoming, has been
        originated by a properly licensed entity, and in all other respects, complies
        with all of the material requirements of any such applicable laws;

       

      (51) The
        information set forth in the Prepayment Charge Schedule is complete, true
        and
        correct in all material respects and, subject to applicable federal and state
        law, each Prepayment Charge is permissible, enforceable and
        collectable;

       

      (52) The
        Mortgage Loan was not prepaid in full prior to the Closing Date and the
        Originator has not received notification from a Mortgagor that a prepayment
        in
        full shall be made after the Closing Date;

       

      (53) No
        Mortgage Loan is secured by cooperative housing, commercial property or mixed
        use property;

       

      (54) Each
        Mortgage Loan is eligible for sale in the secondary market or for inclusion
        in a
        Pass-Through Transfer without unreasonable credit enhancement;

       

      (55) Except
        as
        set forth on the related Mortgage Loan Schedule, none of the Mortgage Loans
        are
        subject to a prepayment penalty. For any Mortgage Loan originated prior to
        October 1, 2002 that is subject to a Prepayment Charge, such Prepayment
        Charge does not extend beyond five years after the date of origination. For
        any Mortgage Loan originated on or following October 1, 2002 that is
        subject to a prepayment penalty, such prepayment penalty does not extend
        beyond
        three years after the date of origination. With respect to any Mortgage
        Loan that contains a provision permitting imposition of a premium upon a
        prepayment prior to maturity: (i) prior to the Mortgage Loan’s origination,
        the Mortgagor agreed to such premium in exchange for a monetary benefit,
        including but not limited to a rate or fee reduction, (ii) prior to the
        Mortgage Loan’s origination, the Mortgagor was offered the option of obtaining a
        Mortgage Loan that did not require payment of such a premium, (iii) the
        prepayment premium is disclosed to the Mortgagor in the loan documents pursuant
        to applicable state and federal law, (iv) for Mortgage Loans originated on
        or
        after September 1, 2004, the duration of the prepayment period shall not
        exceed
        three (3) years from the date of the note, unless the Mortgage Loan was modified
        to reduce the prepayment period to no more than three years from the date
        of the
        note and the borrower was notified in writing of such reduction in prepayment
        period and (v) notwithstanding
        any state or federal law to the contrary, the Originator shall not impose
        such
        prepayment premium in any instance when the mortgage debt is accelerated
        as the
        result of the Mortgagor’s default in making the loan payments;

      
        
          
          

        

        
          SCH.
            IV-10

          
            

          

        

        
          
          

        

      

       

      (56) The
        Originator has complied with all applicable anti-money laundering laws and
        regulations, including without limitation the USA Patriot Act of 2001
        (collectively, the “Anti-Money
        Laundering Laws”);
        the
        Originator has established an anti-money laundering compliance program as
        required by the Anti-Money Laundering Laws, has conducted the requisite due
        diligence in connection with the origination of each Mortgage Loan for purposes
        of the Anti-Money Laundering Laws, including with respect to the legitimacy
        of
        the applicable Mortgagor and the origin of the assets used by the said Mortgagor
        to purchase the property in question, and maintains, and will maintain,
        sufficient information to identify the applicable Mortgagor for purposes
        of the
        Anti-Money Laundering Laws. No Mortgage Loan is subject to nullification
        pursuant to Executive Order 13224 (the “Executive
        Order”)
        or the
        regulations promulgated by the Office of Foreign Assets Control of the United
        States Department of the Treasury (the “OFAC
        Regulations”)
        or in
        violation of the Executive Order or the OFAC Regulations, and no Mortgagor
        is
        subject to the provisions of such Executive Order or the OFAC Regulations
        nor
        listed as a “blocked person” for purposes of the OFAC Regulations;

       

      (57) No
        Mortgagor was encouraged or required to select a Mortgage Loan product offered
        by the Originator which is a higher cost product designed for less creditworthy
        borrowers, unless at the time of the Mortgage Loan’s origination, such Mortgagor
        did not qualify taking into account credit history and debt to income ratios
        for
        a lower cost credit product then offered by the Originator or any affiliate
        of
        the Originator. If, at the time of loan application, the Mortgagor may have
        qualified for a lower cost credit product then offered by any mortgage lending
        affiliate of the Originator, the Originator referred the Mortgagor’s application
        to such affiliate for underwriting consideration;

       

      (58) The
        methodology used in underwriting the extension of credit for each Mortgage
        Loan
        employs objective mathematical principles which relate the Mortgagor’s income,
        assets, liabilities and/or credit history to the proposed payment and such
        underwriting methodology does not rely on the extent of the Mortgagor’s equity
        in the collateral as the principal determining factor in approving such credit
        extension. Such underwriting methodology confirmed that at the time of
        origination (application/approval) the Mortgagor had a reasonable ability
        to
        make timely payments on the Mortgage Loan;

      
        
          
          

        

        
          SCH.
            IV-11

          
            

          

        

        
          
          

        

      

       

      (59) With
        respect to each Mortgage Loan, the Originator has fully and accurately furnished
        complete information on the related borrower credit files to Equifax, Experian
        and Trans Union Credit Information Company, in accordance with the Fair Credit
        Reporting Act and its implementing regulations, on a monthly basis and the
        Servicer for each Mortgage Loan will furnish, in accordance with the Fair
        Credit
        Reporting Act and its implementing regulations, accurate and complete
        information on its borrower credit files to Equifax, Experian, and Trans
        Union
        Credit Information Company, on a monthly basis;

       

      (60) All
        points and fees related to each Mortgage Loan were disclosed in writing to
        the
        Mortgagor in accordance with applicable state and federal law and regulation.
        Except
        as otherwise set forth in the related Mortgage Loan Schedule and
        except in the case of a Mortgage Loan in an original principal amount of
        less
        than $60,000 which would have resulted in an unprofitable origination, no
        Mortgagor was charged “points and fees” (whether or not financed) in an amount
        greater than 5.00% of the principal amount of such Mortgage Loan, such 5.00%
        limitation is calculated in accordance with Fannie Mae’s anti-predatory lending
        requirements as set forth in the Fannie Mae Guides. All fees and charges
        (including finance charges) and whether or not financed, assessed, collected
        or
        to be collected in connection with the origination and servicing of each
        Mortgage Loan were disclosed in writing to the related Mortgagor in accordance
        with applicable state and federal laws and regulations;

       

      (61) The
        Servicer will transmit full-file credit reporting data for each Mortgage
        Loan
        pursuant to Fannie Mae Guide Announcement 95-19 and for each Mortgage Loan,
        the
        Originator agrees it shall report one of the following statuses each month
        as
        follows: new origination, current, delinquent (30-, 60-, 90-days, etc.),
        foreclosed, or charged-off;

       

      (62) No
        Mortgage Loan is a “manufactured housing loan” or “home improvement home loan”
pursuant to the New Jersey Home Ownership Act. No Mortgage Loan is a “High-Cost
        Home Loan” or a refinanced “Covered Home Loan,” in each case, as defined in the
        New Jersey Home Ownership Act effective November 27, 2003 (N.J.S.A.
        46;10B-22 et seq.);

       

      (63) Each
        Mortgage Loan constitutes a “qualified mortgage” under
        Section 860G(a)(3)(A) of the Code and Treasury Regulation Section
        1.860G-2(a)(1);

       

      (64) No
        Mortgage Loan is secured by real property or secured by a manufactured home
        located in the state of Georgia unless (x) such Mortgage Loan was
        originated prior to October 1, 2002 or after March 6, 2003, or
        (y) the property securing the Mortgage Loan is not, nor will be, occupied
        by the Mortgagor as the Mortgagor’s principal dwelling. No Mortgage Loan is a
“High Cost Home Loan” as defined in the Georgia Fair Lending Act, as amended
        (the “Georgia
        Act”).
        Each
        Mortgage Loan that is a “Home Loan” under the Georgia Act complies with all
        applicable provisions of the Georgia Act. No Mortgage Loan secured by owner
        occupied real property or an owner occupied manufactured home located in
        the
        State of Georgia was originated (or modified) on or after October 1, 2002
        through and including March 6, 2003;

      
        
          
          

        

        
          SCH.
            IV-12

          
            

          

        

        
          
          

        

      

       

      (65) No
        Mortgage Loan is a “High-Cost” loan as defined under the New York Banking Law
        Section 6-1, effective as of April 1, 2003;

       

      (66) No
        Mortgage Loan (a) is secured by property located in the State of New York;
        (b) had an unpaid principal balance at origination of $300,000 or less, and
        (c) has an application date on or after April 1, 2003, the terms of
        which Mortgage Loan equal or exceed either the APR or the points and fees
        threshold for “high-cost home loans”, as defined in Section 6-1 of the New
        York State Banking Law;

       

      (67) No
        Mortgage Loan is a “High Cost Home Loan” as defined in the Arkansas Home Loan
        Protection Act effective July 16, 2003 (Act 1340 or 2003);

       

      (68) No
        Mortgage Loan is a “High Cost Home Loan” as defined in the Kentucky high-cost
        loan statute effective June 24, 2003 (Ky. Rev. Stat.
        Section 360.100);

       

      (69) No
        Mortgage Loan secured by property located in the State of Nevada is a “home
        loan” as defined in the Nevada Assembly Bill No. 284;

       

      (70) No
        Mortgage Loan is a subsection 10 mortgage under the Oklahoma Home Ownership
        and
        Equity protection Act;

       

      (71) No
        Mortgage Loan is a “High-Cost Home Loan” as defined in the New Mexico Home Loan
        Protection Act effective January 1, 2004 (N.M. Stat. Ann. §§ 58-21A-1
        et seq.);

       

      (72) No
        Loan
        that is secured by property located within the State of Maine meets the
        definition of a (i) ”high-rate, high-fee” mortgage loan under
        Article VIII, Title 9-A of the Maine Consumer Credit Code or
        (ii) ”High-Cost Home Loan” as defined under the Maine House Bill 383 L.D.
        494, effective as of September 13, 2003;

       

      (73) No
        Mortgage Loan secured by a Mortgaged Property located in the Commonwealth
        of
        Massachusetts was made to pay off or refinance an existing loan or other
        debt of
        the related borrower (as the term “borrower” is defined in the regulations
        promulgated by the Massachusetts Secretary of State in connection with
        Massachusetts House Bill 4880 (2004)) unless either (1) (a) the
        related Mortgage Rate (that would be effective once the introductory rate
        expires, with respect to Adjustable Rate Mortgage Loans) did or would not
        exceed
        by more than 2.25% the yield on United States Treasury securities having
        comparable periods of maturity to the maturity of the related Mortgage Loan
        as
        of the fifteenth day of the month immediately preceding the month in which
        the
        application for the extension of credit was received by the related lender
        or
        (b) the Mortgage Loan is an “open-end home loan” (as such term is used in
        the Massachusetts House Bill 4880 (2004)) and the related Mortgage Note provides
        that the related Mortgage Rate may not exceed at any time the Prime rate
        index
        as published in The Wall Street Journal plus a margin of one percent, or
        (2) such Mortgage Loan is in the “borrower’s interest,” as documented by a
“borrower’s interest worksheet” for the particular Mortgage Loan, which
        worksheet incorporates the factors set forth in Massachusetts House Bill
        4880
        (2004) and the regulations promulgated thereunder for determining “borrower’s
        interest,” and otherwise complies in all material respects with the laws of the
        Commonwealth of Massachusetts;

      
        
          
          

        

        
          SCH.
            IV-13

          
            

          

        

        
          
          

        

      

       

      (74) No
        Loan
        is a “High Cost Home Loan” governed by the Indiana Home Loan Practices Act, Ind.
        Code Ann. §§ 24-9-1-1 et seq.;

       

      (75) The
        Mortgagor has not made or caused to be made any payment in the nature of
        an
“average” or “yield spread premium” to a mortgage broker or a like Person which
        has not been fully disclosed to the Mortgagor;

       

      (76) The
        sale
        or transfer of the Mortgage Loan by the Originator complies with all applicable
        federal, state, and local laws, rules, and regulations governing such sale
        or
        transfer, including, without limitation, the Fair and Accurate Credit
        Transactions Act (“FACT
        Act”)
        and
        the Fair Credit Reporting Act, each as may be amended from time to time,
        and the
        Originator has not received any actual or constructive notice of any identity
        theft, fraud, or other misrepresentation in connection with such Mortgage
        Loan
        or any party thereto;

       

      (77) With
        respect to each MOM Loan, a MIN has been assigned by MERS and such MIN is
        accurately provided on the Mortgage Loan Schedule. The related Assignment
        of
        Mortgage to MERS has been duly and properly recorded, or has been delivered
        for
        recording to the applicable recording office;

       

      (78) With
        respect to each MOM Loan, the Originator has not received any notice of liens
        or
        legal actions with respect to such Mortgage Loan and no such notices have
        been
        electronically posted by MERS;

       

      (79) With
        respect to each Mortgage Loan, (i) if the related first lien provides for
        negative amortization, the CLTV was calculated at the maximum principal balance
        of such first lien that could result upon application of such negative
        amortization feature, and (ii) either no consent for the Mortgage Loan is
        required by the holder of the first lien or such consent has been obtained
        and
        is contained in the Mortgage File; 

       

      (80) No
        Mortgagor agreed to submit to arbitration to resolve any dispute arising
        out of
        or relating in any way to the Mortgage Loan transaction; 

       

      (81) Except
        with respect to the Mortgage Loans where no FICO Score was obtained in
        connection with the origination of such Mortgage Loan, at the time of
        origination no Mortgage Loan had a FICO Score of 550 or lower;

       

      (82) No
        Mortgage Loan has an original term to maturity of more than 30 years;

       

      (83) No
        Mortgagor is the obligor on more than four Mortgage Notes;

       

      (84) No
        Mortgage Loan is a “High-Risk Home Loan” as defined in the Illinois High-Risk
        Home Loan Act effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et
        seq.);

      
        
          
          

        

        
          SCH.
            IV-14

          
            

          

        

        
          
          

        

      

       

      (85) With
        respect to each Mortgage Loan for which a mortgage application was submitted
        by
        the Mortgagor after April 1, 2004 and for which the related Mortgaged Property
        is located in the State of Illinois, such Mortgage Loan is in compliance
        with
        the Illinois Interest Act, as applicable;

       

      (86) No
        Mortgage Loan is secured by a lien on a “condo hotel;” and 

       

      (87) Each
        Mortgage Loan secured by a Mortgaged Property located within the “Pilot Program
        Area” in Cook County in the State of Illinois was originated incompliance with
        the Predatory Lending Database Pilot Program, Illinois Public Act 94-280
        (Illinois H.B. 4050), 765 Ill. Comp. Stat. 77/70 et seq., commonly referred
        to
        as "H.B. 4050". The term "Pilot Program Area" refers to the following zip
        codes:
        60620, 60621, 60623, 60628, 60629, 60632, 60636, 60638, 60643, and 60652.
        Every
        such Mortgage Loan, regardless of the broker or originator, recorded on or
        after
        September 1, 2006, was validly recorded with the Cook County Recorder of
        Deeds
        along with either a Certificate of Compliance or Exempt Certificate issued
        by
        the Illinois Department of Financial and Professional Regulation as a cover
        sheet. No material changes were made to any such Mortgage Loan from the time
        that the loan file was submitted to the Illinois Department of Financial
        and
        Professional Regulation for a Certificate of Compliance or Exempt Certificate
        until the date of settlement.

      

      

      
        
          
          

        

        
          SCH.
            IV-15

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        A

       

      [IF
        THIS
        CERTIFICATE IS A PHYSICAL CERTIFICATE, NEITHER THIS CERTIFICATE NOR ANY INTEREST
        HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED TRANSFEROR DELIVERS TO THE
        SECURITIES ADMINISTRATOR A TRANSFEROR LETTER (THE “TRANSFEROR
        LETTER”)
        IN THE
        FORM OF EXHIBIT H TO THE AGREEMENT REFERRED TO HEREIN AND EITHER
        (I) THE SECURITIES ADMINISTRATOR RECEIVES A RULE 144A INVESTMENT LETTER
        (THE “144A
        INVESTMENT
        LETTER”)
        OR A
        REGULATION S INVESTMENT LETTER (THE “REGULATION S INVESTMENT LETTER”) IN THE
        FORM OF EXHIBIT I-A AND EXHIBIT I-B, RESPECTIVELY, TO THE AGREEMENT
        REFERRED TO HEREIN OR (II) THE SECURITIES ADMINISTRATOR RECEIVES AN OPINION
        OF COUNSEL, DELIVERED AT THE EXPENSE OF THE TRANSFEROR, THAT SUCH TRANSFER
        MAY
        BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED.]
        [To
        be added to the Class M-10 Certificates while such Certificates remain
        Private Certificates.]

       

      [IF
        THIS
        CERTIFICATE IS A BOOK-ENTRY CERTIFICATE, THE PROPOSED TRANSFEROR WILL BE
        DEEMED
        TO HAVE MADE EACH OF THE CERTIFICATIONS SET FORTH IN THE TRANSFEROR LETTER
        AND
        THE PROPOSED TRANSFEREE WILL BE DEEMED TO HAVE MADE EACH OF THE CERTIFICATIONS
        SET FORTH IN THE RULE 144A INVESTMENT LETTER OR REGULATION S INVESTMENT LETTER,
        AS APPLICABLE, IN EACH CASE AS IF SUCH CERTIFICATE WERE EVIDENCED BY A PHYSICAL
        CERTIFICATE.] [To be added to the Class M-10 Certificates while such
        Certificates remain Private Certificates.]

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
        TO
        ISSUER 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 AN INTEREST
        IN
        A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE
        TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
        REVENUE CODE OF 1986, AS AMENDED (THE “CODE”),
        AND
        CERTAIN OTHER ASSETS.

       

      [PRIOR
        TO TERMINATION OF THE SWAP AGREEMENT AND THE CAP AGREEMENT, NO TRANSFER OF
        THIS
        CERTIFICATE SHALL BE MADE UNLESS THE SECURITIES ADMINISTRATOR SHALL HAVE
        RECEIVED A REPRESENTATION LETTER FROM THE TRANSFEREE OF THIS CERTIFICATE
        TO THE
        EFFECT THAT EITHER (I) SUCH TRANSFEREE IS NEITHER AN EMPLOYEE BENEFIT PLAN
        OR
        OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO SECTION 406 OF ERISA AND/OR
        SECTION 4975 OF THE CODE OR ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE SUCH
        PLAN’S OR ARRANGEMENT’S ASSETS BY REASON OF THEIR INVESTMENT IN THE ENTITY (A
“PLAN”) NOR A PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR USING THE ASSETS OF
        ANY SUCH PLAN TO EFFECT SUCH TRANSFER OR (II) THE ACQUISITION AND HOLDING
        OF
        THIS CERTIFICATE ARE ELIGIBLE FOR EXEMPTIVE RELIEF UNDER THE
        STATUTORY EXEMPTION FOR NON-FIDUCIARY SERVICE PROVIDERS UNDER SECTION
        408(b)(17)
        OF ERISA AND SECTION 4975(d)(20)
        OF THE CODE, PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14, PTCE 90-1,
        PTCE 91-38, PTCE 95-60 OR PTCE 96-23 OR ANOTHER EXEMPTION.
        ANY PURPORTED TRANSFER OF THIS CERTIFICATE PRIOR TO THE TERMINATION OF THE
        SWAP
        AGREEMENT AND THE CAP AGREEMENT TO OR ON BEHALF OF A PLAN WITHOUT THE DELIVERY
        TO THE SECURITIES ADMINISTRATOR OF A REPRESENTATION LETTER AS DESCRIBED ABOVE
        SHALL BE VOID AND OF NO EFFECT. IF THIS CERTIFICATE IS A BOOK-ENTRY CERTIFICATE,
        THE TRANSFEREE WILL BE DEEMED TO HAVE MADE A REPRESENTATION AS PROVIDED IN
        CLAUSE (I) OR (II) OF THIS PARAGRAPH, AS APPLICABLE.] [To
        be
        added to all Offered Certificates.]

      
        
          
          

        

        
          EXHIBIT
            A-1

          
            

          

        

        
          
          

        

      

       

       

      [NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER A REPRESENTATION
        LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
        SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
        AS
        AMENDED (“ERISA”),
        OR A
        PLAN SUBJECT TO SECTION 4975 OF THE CODE, OR A PLAN SUBJECT TO APPLICABLE
        FEDERAL, STATE OR LOCAL LAW (“SIMILAR
        LAW”)
        MATERIALLY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE OR A
        PERSON
        INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN, OR, IF THE TRANSFEREE
        IS AN INSURANCE COMPANY, A REPRESENTATION LETTER THAT IT IS USING THE ASSETS
        OF
        ITS GENERAL ACCOUNT AND THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE
        ARE
        COVERED UNDER SECTIONS I AND III OF PROHIBITED TRANSACTION CLASS EXEMPTION
        95-60
        OR AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR, TO THE
        EFFECT THAT THE PURCHASE OR HOLDING OF THIS CERTIFICATE WILL NOT CONSTITUTE
        OR
        RESULT IN A PROHIBITED TRANSACTION WITHIN THE MEANING OF ERISA, SECTION 4975
        OF
        THE CODE OR ANY SIMILAR LAW AND WILL NOT SUBJECT THE TRUSTEE, THE DEPOSITOR,
        THE
        SECURITIES ADMINISTRATOR, THE MASTER SERVICER OR THE SERVICER TO ANY OBLIGATION
        IN ADDITION TO THOSE EXPRESSLY UNDERTAKEN IN THE AGREEMENT OR TO ANY LIABILITY.
        NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY HEREIN, ANY PURPORTED TRANSFER
        OF
        THIS CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE
        I
        OF ERISA, SECTION 4975 OF THE CODE OR SIMILAR LAW WITHOUT THE REPRESENTATION
        LETTER OR OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR
        AS
        DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT.] [To be added to the
        Class M-10 Certificates.]

      
        
          
          

        

        
          EXHIBIT
            A-2

          
            

          

        

        
          
          

        

      

       

       

      [THE
        HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF REPRESENTS AND WARRANTS
        THAT
        (A) UNTIL THE EXPIRATION OF THE APPLICABLE “DISTRIBUTION COMPLIANCE PERIOD”
WITHIN THE MEANING OF REGULATION S, ANY OFFER, SALE, PLEDGE OR OTHER TRANSFER
        OF
        THIS CERTIFICATE SHALL NOT BE MADE IN THE UNITED STATES OR TO, OR FOR THE
        ACCOUNT OR BENEFIT OF, ANY U.S. PERSON (EACH AS DEFINED IN REGULATION S)
        AND (B)
        IF THIS CERTIFICATE IS HELD WITHIN THE UNITED STATES OR SUCH HOLDER IS A
        U.S.
        PERSON OR THIS CERTIFICATE IS HELD FOR THE ACCOUNT OR SUCH BENEFIT OF, A
        U.S.
        PERSON (EACH AS DEFINED IN REGULATION S) SUCH CERTIFICATE WAS ACQUIRED ONLY
        (1)
        PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER
        THE
        1933 ACT OR (2) BY SUCH HOLDER AS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED
        IN RULE 144A UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR
        THE
        ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
        TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A.][For any Private Certificate
        to
        be acquired or transferred pursuant to Regulation S.]

      

      
        	
                Certificate
                  No:

              	 	
                1

              
	 	 	 
	
                Cut-off
                  Date:

              	 	
                January
                  1, 2007

              
	 	 	 
	
                First
                  Distribution Date:

              	 	
                February
                  26, 2007

              
	 	 	 
	
                Initial
                  Certificate Balance of this Certificate (“Denomination”):

              	 	
                $[                         
                  ]

              
	 	 	 
	
                Initial
                  Certificate Balances of all Certificates of this Class:

              	
                I-A

              	
                $438,787,000.00

              
	 	
                II-A-1

              	
                $105,043,000.00

              
	 	
                II-A-2

              	
                $24,118,000.00

              
	 	
                II-A-3

              	
                $40,466,000.00

              
	 	
                II-A-4

              	
                $6,266,000.00

              
	 	
                M-1

              	
                $35,013,000.00

              
	 	
                M-2

              	
                $24,898,000.00

              
	 	
                M-3

              	
                $15,173,000.00

              
	 	
                M-4

              	
                $14,005,000.00

              
	 	
                M-5

              	
                $13,227,000.00

              
	 	
                M-6

              	
                $10,504,000.00

              
	 	
                M-7

              	
                $10,504,000.00

              
	 	
                M-8

              	
                $5,447,000.00

              
	 	
                M-9

              	
                $10,504,000.00

              
	 	
                M-10

              	
                $9,337,000.00

              
	 	 	 

      

       

      
        
          
          

        

        
          EXHIBIT
            A-3

          
            

          

        

        
          
          

        

      

       

      
        	
                Interest
                  Rate:

              	
                I-A

              	
                Variable

              
	 	
                II-A-1

              	
                Variable

              
	 	
                II-A-2

              	
                Variable

              
	 	
                II-A-3

              	
                Variable

              
	 	
                II-A-4

              	
                Variable

              
	 	
                M-1

              	
                Variable

              
	 	
                M-2

              	
                Variable

              
	 	
                M-3

              	
                Variable

              
	 	
                M-4

              	
                Variable

              
	 	
                M-5

              	
                Variable

              
	 	
                M-6

              	
                Variable

              
	 	
                M-7

              	
                Variable

              
	 	
                M-8

              	
                Variable

              
	 	
                M-9

              	
                Variable

              
	 	
                M-10

              	
                Variable

              
	 	 	 
	
                CUSIP:

              	
                I-A

              	
                 

                40431JAA1

              
	 	
                II-A-1

              	
                40431JAB9

              
	 	
                II-A-2

              	
                40431JAC7

              
	 	
                II-A-3

              	
                40431JAD5

              
	 	
                II-A-4

              	
                40431JAE3

              
	 	
                M-1

              	
                40431JAF0

              
	 	
                M-2

              	
                40431JAG8

              
	 	
                M-3

              	
                40431JAH6

              
	 	
                M-4

              	
                40431JAJ2

              
	 	
                M-5

              	
                40431JAK9

              
	 	
                M-6

              	
                40431JAL7

              
	 	
                M-7

              	
                40431JAM5

              
	 	
                M-8

              	
                40431JAN3

              
	 	
                M-9

              	
                40431JAP8

              
	 	
                M-10

              	
                40431JAQ6

              
	 	 	 
	 	 	 
	
                ISIN:

              	
                I-A

              	
                 

                US40431JAA16

              
	 	
                II-A-1

              	
                US40431JAB98

              
	 	
                II-A-2

              	
                US40431JAC71

              
	 	
                II-A-3

              	
                US40431JAD54

              
	 	
                II-A-4

              	
                US40431JAE38

              
	 	
                M-1

              	
                US40431JAF03

              
	 	
                M-2

              	
                US40431JAG85

              
	 	
                M-3

              	
                US40431JAH68

              
	 	
                M-4

              	
                US40431JAJ25

              
	 	
                M-5

              	
                US40431JAK97

              

      

       

      
        
          
          

        

        
          EXHIBIT
            A-4

          
            

          

        

        
          
          

        

      

       

      
        	 	
                M-6

              	
                US40431JAL70

              
	 	
                M-7

              	
                US40431JAM53

              
	 	
                M-8

              	
                US40431JAN37

              
	 	
                M-9

              	
                US40431JAP84

              
	 	
                M-10

              	
                US40431JAQ67

              
	 	 	 

      

      
        
          
          

        

        
          EXHIBIT
            A-5

          
            

          

        

        
          
          

        

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust, 2007-OPT1

      Mortgage
        Pass-Through Certificates, Series 2007-OPT1

      Class
        [A-__][M-__]

       

      evidencing
        a percentage interest in the distributions allocable to the Certificates
        of the
        above-referenced Class.

       

      Principal
        in respect of this Certificate is distributable monthly as set forth herein.
        Accordingly, the Certificate Balance 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
        Trustee or any other party to the Agreement referred to below or any of their
        respective affiliates. Neither this Certificate nor the Mortgage Loans are
        guaranteed or insured by any governmental agency or
        instrumentality.

       

      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 aggregate of the denominations of all Certificates of
        the
        Class to which this Certificate belongs) in certain monthly distributions
        of
        principal and interest (pursuant to a Pooling and Servicing Agreement dated
        as
        of the Cut-off Date specified above (the “Agreement”)
        among
        HSI Asset Securitization Corporation, as depositor (the “Depositor”),
        Option One Mortgage Corporation, as servicer and originator, CitiMortgage,
        Inc.,
        as master servicer (the “Master
        Servicer”),
        Citibank, N.A., as securities administrator (the “Securities
        Administrator”),
        Wells
        Fargo Bank, N.A., as custodian, OfficeTiger Global Real Estate Services,
        as
        credit risk manager and Deutsche Bank National Trust Company, as trustee
        (the
“Trustee”).
        To
        the extent not defined herein, the capitalized terms used herein have the
        meanings assigned in the Agreement. This Certificate is issued under and
        is
        subject to the terms, provisions and conditions of the Agreement, to which
        Agreement the Holder of this Certificate by virtue of the acceptance hereof
        assents and by which such Holder is bound.

       

      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 Agreement or be
        valid
        for any purpose unless manually authenticated by an authorized signatory
        of the
        Securities Administrator.

       

      * * *

      
        
          
          

        

        
          EXHIBIT
            A-6

          
            

          

        

        
          
          

        

      

      

       

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      
        	
                Dated:

              	 

      

       

      CITIBANK,
        N.A.,
not
        in
        its individual capacity, but solely as
Securities
        Administrator

       

      By: 
        ________________________________________

       

      Authenticated:

       

       

      By:____________________________________
Authorized
        Signatory of
CITIBANK,
        N.A.,
not
        in
        its individual capacity,
but
        solely as Securities Administrator

      
        
          
          

        

        
          EXHIBIT
            A-7

          
            

          

        

        
          
          

        

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION 

       

      HSI
        Asset
        Securitization Corporation Trust 2007-OPT1

      Mortgage
        Pass-Through Certificates

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as HSI
        Asset Securitization Corporation Trust 2007-OPT1 Mortgage Pass-Through
        Certificates, of the Series specified on the face hereof (herein collectively
        called the “Certificates”),
        and
        representing a beneficial ownership interest in the Trust Fund created by
        the
        Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely
        to the
        funds on deposit in the Distribution Account or Supplemental Interest Trust
        Account for payment hereunder and that neither the Trustee nor the Securities
        Administrator is liable to the Certificateholders for any amount payable
        under
        this Certificate or the Agreement or, except as expressly provided in the
        Agreement, subject to any liability under the Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced thereby, and the rights, duties and immunities
        of the Trustee.

       

      Pursuant
        to the terms of the Agreement, a distribution will be made on the 25th day
        of
        each month or, if such day is not a Business Day, the Business Day immediately
        following (the “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 equal to the product of the Percentage
        Interest evidenced by this Certificate and the amount required to be distributed
        to Holders of Certificates of the Class to which this Certificate belongs
        on
        such Distribution Date pursuant to the Agreement. The Record Date applicable
        to
        each Distribution Date is the Business Day immediately preceding such
        Distribution Date.

       

      Distributions
        on this Certificate shall be made by wire transfer of immediately available
        funds to the account of the Holder hereof at a bank or other entity having
        appropriate facilities therefor, if such Certificateholder shall have so
        notified the Securities Administrator in writing at least five Business Days
        prior to the related Record Date and such Certificateholder shall satisfy
        the
        conditions to receive such form of payment set forth in the Agreement, or,
        if
        not, by check mailed by first class mail to the address of such
        Certificateholder appearing in the Certificate Register. The final distribution
        on each Certificate will be made in like manner, but only upon presentment
        and
        surrender of such Certificate at the offices designated by the Securities
        Administrator for such purposes or such other location specified in the notice
        to Certificateholders of such final distribution.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Trustee
        and
        the rights of the Certificateholders under the Agreement at any time by the
        parties to the Agreement with the consent of the Holders of Certificates
        affected by such amendment evidencing the requisite Percentage Interest,
        as
        provided in the Agreement. Any such consent by the Holder of this Certificate
        shall be conclusive and binding on such Holder and upon all future Holders
        of
        this Certificate and of any Certificate issued upon the transfer hereof or
        in
        exchange therefor or in lieu hereof whether or not notation of such consent
        is
        made upon this Certificate. The Agreement also permits the amendment thereof,
        in
        certain limited circumstances, without the consent of the Holders of any
        of the
        Certificates.

      
        
          
          

        

        
          EXHIBIT
            A-8

          
            

          

        

        
          
          

        

      

       

      As
        provided in the 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 offices designated by the Securities Administrator for
        such
        purposes, accompanied by a written instrument of transfer in form satisfactory
        to the Securities Administrator 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 Fund will be issued to the
        designated transferee or transferees.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in
        denominations specified in the Agreement. As provided in the Agreement and
        subject to certain limitations therein set forth, Certificates are exchangeable
        for new Certificates of the same Class in authorized denominations 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
        Trustee, the Depositor and the Securities Administrator and any agent of
        the
        Trustee, the Depositor or the Securities Administrator may treat the Person
        in
        whose name this Certificate is registered as the owner hereof for all purposes,
        and neither the Trustee, the Depositor, the Securities Administrator nor
        any
        such agent shall be affected by any notice to the contrary.

       

      The
        Master Servicer may, or upon the instruction of the Depositor, shall, purchase
        the Mortgage Loans and therefore cause the termination of the Trust on any
        Optional Termination Date, which is any Distribution Date following any month
        in
        which the aggregate Stated Principal Balance of the Mortgage Loans as of
        the
        last day of the related Due Period is less than or equal to 10% of the aggregate
        Stated Principal Balance of the Mortgage Loans as of the Cut-off Date. Any
        such
        purchase of the Mortgage Loans would result in the payment on that Distribution
        Date of the final distribution on the Certificates. 

       

      The
        obligations and responsibilities created by the Agreement will terminate
        as
        provided in Section 11.01 of the Agreement.

       

      Any
        term
        used herein that is defined in the Agreement shall have the meaning assigned
        in
        the Agreement, and nothing herein shall be deemed inconsistent with that
        meaning.

      
        
          
          

        

        
          EXHIBIT
            A-9

          
            

          

        

        
          
          

        

      

       

      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 Fund.

       

      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.

       

       

      
        
          
          

        

        
          EXHIBIT
            A-10

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        B

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
        TRANSFEROR DELIVERS TO THE SECURITIES ADMINISTRATOR A TRANSFEROR LETTER IN
        THE
        FORM OF EXHIBIT H TO THE AGREEMENT REFERRED TO HEREIN AND EITHER
        (I) THE SECURITIES ADMINISTRATOR RECEIVES EITHER A RULE 144A INVESTMENT
        LETTER OR REGULATION S INVESTMENT LETTER IN THE FORM OF EXHIBIT I-A AND
        EXHIBIT I-B, RESPECTIVELY, TO THE AGREEMENT REFERRED TO HEREIN OR (II) THE
        SECURITIES ADMINISTRATOR RECEIVES AN OPINION OF COUNSEL, DELIVERED AT THE
        EXPENSE OF THE TRANSFEROR, STATING THAT SUCH TRANSFER MAY BE MADE WITHOUT
        REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR A REPRESENTATION LETTER
        TO
        THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO
        TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
        (“ERISA”),
        OR A
        PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO MATERIALLY
        SIMILAR PROVISIONS OF APPLICABLE FEDERAL, STATE OR LOCAL LAW (“SIMILAR
        LAW”)
        OR A
        PERSON INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN. IN THE
        EVENT
        THAT SUCH REPRESENTATION IS VIOLATED, OR ANY ATTEMPT IS MADE TO TRANSFER
        TO A
        PLAN OR ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO
        SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO SIMILAR LAW, OR A PERSON
        ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS OF ANY
        SUCH
        PLAN OR ARRANGEMENT, SUCH ATTEMPTED TRANSFER OR ACQUISITION SHALL BE VOID
        AND OF
        NO EFFECT.

       

      
        	
                Certificate
                  No.

              	
                :

              	
                P-1

              
	 	 	 
	
                Cut-off
                  Date

              	
                :

              	
                January
                  1, 2007

              
	 	 	 
	
                First
                  Distribution Date

              	
                :

              	
                February
                  26, 2007

              
	 	 	 
	
                Percentage
                  Interest of this Certificate 

              	
                :

              	
                100%

              
	 	 	 
	
                Interest

              	
                :

              	
                None

              
	 	 	 
	
                CUSIP

              	
                :

              	
                40431JAR4

              
	 	 	 
	
                ISIN

              	
                :

              	
                US40431JAR41

              

      

      
        
          
          

        

        
          EXHIBIT
            B-1

          
            

          

        

        
          
          

        

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust 2007-OPT1

      Mortgage
        Pass-Through Certificates, Series 2007-OPT1

       

      Class
        P

       

      evidencing
        a percentage interest in the distribution of Prepayment Charges allocable
        to the
        Certificates of the above-referenced Class.

       

      Distributions
        in respect of this Certificate are distributable monthly as set forth herein.
        This Certificate does not evidence an obligation of, or an interest in, and
        is
        not guaranteed by the Depositor, the Trustee or any other party to the Agreement
        referred to below or any of their respective affiliates. Neither this
        Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
        agency or instrumentality.

       

      This
        certifies that HSBC SECURITIES (USA) INC. is the registered owner of the
        Percentage Interest evidenced by this Certificate in certain monthly
        distributions of Prepayment Charges pursuant to a Pooling and Servicing
        Agreement dated as of the Cut-off Date specified above (the “Agreement”)
        among
        HSI Asset Securitization Corporation, as depositor (the “Depositor”),
        Option One Mortgage Corporation, as servicer and originator, CitiMortgage,
        Inc.,
        as master servicer (the “Master
        Servicer”),
        Citibank, N.A., as securities administrator (the “Securities
        Administrator”),
        Wells
        Fargo Bank, N.A., as custodian, OfficeTiger Global Real Estate Services Inc.,
        as
        Credit Risk Manager, and Deutsche Bank National Trust Company, as trustee
        (the
“Trustee”).
        To
        the extent not defined herein, the capitalized terms used herein have the
        meanings assigned in the Agreement. This Certificate is issued under and
        is
        subject to the terms, provisions and conditions of the Agreement, to which
        Agreement the Holder of this Certificate by virtue of the acceptance hereof
        assents and by which such Holder is bound.

       

      This
        Certificate does not have an Interest Rate and will solely be entitled to
        receive distributions of Prepayment Charges to the extent set forth in the
        Agreement. In addition, any distribution of the proceeds of any remaining
        assets
        of the Trust will be made only upon presentment and surrender of this
        Certificate at the offices designated by the Securities Administrator for
        such
        purpose, or such other location specified in the notice to
        Certificateholders.

       

      No
        transfer of a Certificate of this Class shall be made unless such disposition
        is
        exempt from the registration requirements of the Securities Act of 1933,
        as
        amended (the “1933 Act”),
        and
        any applicable state securities laws or is made in accordance with the 1933
        Act
        and such laws. In the event of any such transfer, the Securities Administrator
        shall require the transferor to execute a transferor certificate (in
        substantially the form attached to the Agreement) and deliver either (i) a
        Rule 144A Investment Letter or a Regulation S Investment Letter, as
        applicable, in either case substantially in the form attached as Exhibit
        I-A and
        Exhibit I-B, respectively, to the Agreement, or (ii) a written Opinion of
        Counsel to the Securities Administrator that such transfer may be made pursuant
        to an exemption, describing the applicable exemption and the basis therefor,
        from the 1933 Act or is being made pursuant to the 1933 Act, which Opinion
        of
        Counsel shall be an expense of the transferor.

      
        
          
          

        

        
          EXHIBIT
            B-2

          
            

          

        

        
          
          

        

      

       

      No
        transfer of a Certificate of this Class shall be made unless the Securities
        Administrator shall have received a representation letter from the transferee
        of
        such Certificate, acceptable to and in form and substance satisfactory to
        the
        Securities Administrator, to the effect that such transferee is not an employee
        benefit plan subject to Section 406 of ERISA, Section 4975 of the Code
        or any materially similar provisions of applicable federal, state or local
        law
        (“Similar
        Law”),
        or a
        person acting on behalf of or investing plan assets of any such plan, which
        representation letter shall not be an expense of the Securities
        Administrator.

       

      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 Agreement or be
        valid
        for any purpose unless manually authenticated by an authorized signatory
        of the
        Securities Administrator.

       

      * * *

      

      

      
        
          
          

        

        
          EXHIBIT
            B-3

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      
        	
                Dated:

              	 

      

       

      CITIBANK,
        N.A.,
not
        in
        its individual capacity, but solely as
Securities
        Administrator

       

      By:
        _______________________________________

       

      Authenticated:

       

       

      By: 
        ________________________________
Authorized
        Signatory of
CITIBANK,
        N.A.,
not
        in
        its individual capacity,
but
        solely as Securities Administrator

      
        
          
          

        

        
          EXHIBIT
            B-4

          
            

          

        

        
          
          

        

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust 2007-OPT1

      Mortgage
        Pass-Through Certificates

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as HSI
        Asset Securitization Corporation Trust 2007-OPT1 Mortgage Pass-Through
        Certificates, of the Series specified on the face hereof (herein collectively
        called the “Certificates”),
        and
        representing a beneficial ownership interest in the Trust Fund created by
        the
        Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely
        to the
        funds on deposit in the Distribution Account or constituting Prepayment Charges
        for payment hereunder and that neither the Trustee nor the Securities
        Administrator is liable to the Certificateholders for any amount payable
        under
        this Certificate or the Agreement or, except as expressly provided in the
        Agreement, subject to any liability under the Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced thereby, and the rights, duties and immunities
        of the Trustee.

       

      Pursuant
        to the terms of the Agreement, a distribution will be made on the 25th day
        of
        each month or, if such day is not a Business Day, the Business Day immediately
        following (the “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 equal to the product of the Percentage
        Interest evidenced by this Certificate and the amount required to be distributed
        to Holders of Certificates of the Class to which this Certificate belongs
        on
        such Distribution Date pursuant to the Agreement. The Record Date applicable
        to
        each Distribution Date is the last Business Day of the month next preceding
        the
        month of such Distribution Date.

       

      Distributions
        on this Certificate shall be made by wire transfer of immediately available
        funds to the account of the Holder hereof at a bank or other entity having
        appropriate facilities therefor, if such Certificateholder shall have so
        notified the Securities Administrator in writing at least five Business Days
        prior to the related Record Date and such Certificateholder shall satisfy
        the
        conditions to receive such form of payment set forth in the Agreement, or,
        if
        not, by check mailed by first class mail to the address of such
        Certificateholder appearing in the Certificate Register. The final distribution
        on each Certificate will be made in like manner, but only upon presentment
        and
        surrender of such Certificate at the offices designated by the Securities
        Administrator for such purposes or such other location specified in the notice
        to Certificateholders of such final distribution.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Trustee
        and
        the rights of the Certificateholders under the Agreement at any time by the
        parties to the Agreement with the consent of the Holders of Certificates
        affected by such amendment evidencing the requisite Percentage Interest,
        as
        provided in the Agreement. Any such consent by the Holder of this Certificate
        shall be conclusive and binding on such Holder and upon all future Holders
        of
        this Certificate and of any Certificate issued upon the transfer hereof or
        in
        exchange therefor or in lieu hereof whether or not notation of such consent
        is
        made upon this Certificate. The Agreement also permits the amendment thereof,
        in
        certain limited circumstances, without the consent of the Holders of any
        of the
        Certificates.

      
        
          
          

        

        
          EXHIBIT
            B-5

          
            

          

        

        
          
          

        

      

       

      As
        provided in the 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 offices designated by the Securities Administrator for
        such
        purposes, accompanied by a written instrument of transfer in form satisfactory
        to the Securities Administrator 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 Fund will be issued to the
        designated transferee or transferees.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in
        denominations specified in the Agreement. As provided in the Agreement and
        subject to certain limitations therein set forth, Certificates are exchangeable
        for new Certificates of the same Class in authorized denominations 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
        Trustee, the Depositor and the Securities Administrator and any agent of
        the
        Trustee, the Depositor or the Securities Administrator may treat the Person
        in
        whose name this Certificate is registered as the owner hereof for all purposes,
        and neither the Trustee, the Depositor, the Securities Administrator nor
        any
        such agent shall be affected by any notice to the contrary.

       

      The
        Master Servicer may, or upon the instruction of the Depositor, shall, purchase
        the Mortgage Loans and therefore cause the termination of the Trust on any
        Optional Termination Date, which is any Distribution Date following any month
        in
        which the aggregate Stated Principal Balance of the Mortgage Loans as of
        the
        last day of the related Due Period is less than or equal to 10% of the aggregate
        Stated Principal Balance of the Mortgage Loans as of the Cut-off Date. Any
        such
        purchase of the Mortgage Loans would result in the payment on that Distribution
        Date of the final distribution on the Certificates. 

       

      The
        obligations and responsibilities created by the Agreement will terminate
        as
        provided in Section 11.01 of the Agreement.

       

      Any
        term
        used herein that is defined in the Agreement shall have the meaning assigned
        in
        the Agreement, and nothing herein shall be deemed inconsistent with that
        meaning.

      

      
        
          
          

        

        
          EXHIBIT
            B-6

          
            

          

        

        
          
          

        

      

      
        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 Fund.

         

        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.

      

      
        
          
          

        

        
          EXHIBIT
            B-7

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        C

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST”
IN TWO “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”).

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR A TRANSFER AFFIDAVIT
        IN
        ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED (I) TO A PERSON
        OTHER THAN A PERMITTED TRANSFEREE IN COMPLIANCE WITH SECTION 5.02I OF THE
        AGREEMENT OR (II) UNLESS THE TRANSFEREE DELIVERS TO THE SECURITIES
        ADMINISTRATOR A REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE
        IS NOT
        AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
        SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
        OR A
        PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO MATERIALLY
        SIMILAR PROVISIONS OF APPLICABLE FEDERAL, STATE OR LOCAL LAW (“SIMILAR
        LAW”)
        OR A
        PERSON INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN. IN THE
        EVENT
        THAT SUCH REPRESENTATION IS VIOLATED, OR ANY ATTEMPT IS MADE TO TRANSFER
        TO A
        PLAN OR ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO
        SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO SIMILAR LAW, OR A PERSON
        ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS OF ANY
        SUCH
        PLAN OR ARRANGEMENT, SUCH ATTEMPTED TRANSFER OR ACQUISITION SHALL BE VOID
        AND OF
        NO EFFECT.

       

      
        	
                Certificate
                  No.

              	
                :

              	
                R-1

              
	 	 	 
	
                Cut-off
                  Date

              	
                :

              	
                January
                  1, 2007

              
	 	 	 
	
                First
                  Distribution Date

              	
                :

              	
                February
                  26, 2007

              
	 	 	 
	
                Percentage
                  Interest of this Certificate

              	
                :

              	
                100.00%

              
	 	 	 
	
                Interest
                  Rate

              	
                :

              	
                None

              
	 	 	 
	
                CUSIP

              	
                :

              	
                40431JAT0

              
	 	 	 
	
                ISN

              	
                :

              	
                US40431JAT07

              

      

      
        
          
          

        

        
          EXHIBIT
            C-1

          
            

          

        

        
          
          

        

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust 2007-OPT1

      Mortgage
        Pass-Through Certificates, Series 2007-OPT1

       

      Class
        R

       

      evidencing
        a percentage interest in the distributions allocable to the Certificates
        of the
        above-referenced Class.

       

      Distributions
        in respect of this Certificate are distributable monthly as set forth herein.
        This Class R Certificate has no Certificate Balance and is not entitled to
        distributions in respect of principal or interest. This Certificate does
        not
        evidence an obligation of, or an interest in, and is not guaranteed by the
        Depositor, the Trustee or any other party to the Agreement referred to below
        or
        any of their respective affiliates. Neither this Certificate nor the Mortgage
        Loans are guaranteed or insured by any governmental agency or
        instrumentality.

       

      This
        certifies that [HSBC SECURITIES (USA) INC.] is the registered owner of the
        Percentage Interest specified above of any monthly distributions due to the
        Class R Certificates pursuant to a Pooling and Servicing Agreement dated as
        of the Cut-off Date specified above (the “Agreement”)
        among
        HSI Asset Securitization Corporation, as depositor (the “Depositor”),
        Option One Mortgage Corporation, as servicer and originator, CitiMortgage,
        Inc.,
        as master servicer (the “Master
        Servicer”),
        Citibank, N.A., as securities administrator (the “Securities
        Administrator”),
        Wells
        Fargo Bank, N.A., as custodian, OfficeTiger Global Real Estate Services Inc.,
        as
        Credit Risk Manager, and Deutsche Bank National Trust Company, as trustee
        (the
“Trustee”).
        To
        the extent not defined herein, the capitalized terms used herein have the
        meanings assigned in the Agreement. This Certificate is issued under and
        is
        subject to the terms, provisions and conditions of the Agreement, to which
        Agreement the Holder of this Certificate by virtue of the acceptance hereof
        assents and by which such Holder is bound.

       

      Any
        distribution of the proceeds of any remaining assets of the Trust will be
        made
        only upon presentment and surrender of this Class R Certificate at the
        offices designated by the Securities Administrator for such purpose, or such
        other location specified in the notice to Certificateholders.

       

      No
        transfer of a Class R Certificate shall be made unless the Securities
        Administrator shall have received a representation letter from the transferee
        of
        such Certificate, acceptable to and in form and substance satisfactory to
        the
        Securities Administrator, to the effect that such transferee is not an employee
        benefit plan or arrangement subject to Section 406 of ERISA, a plan or
        arrangement subject to Section 4975 of the Code or a plan subject to
        Similar Law, or a person acting on behalf of any such plan or arrangement
        nor
        using the assets of any such plan or arrangement to effect such transfer,
        which
        representation letter shall not be an expense of the Trustee, the Securities
        Administrator, the Depositor, the Master Servicer or the Trust Fund. In the
        event that such representation is violated, or any attempt is made to transfer
        to a plan or arrangement subject to Section 406 of ERISA or a plan subject
        to Section 4975 of the Code or a plan subject to Similar Law, or a person
        acting on behalf of any such plan or arrangement or using the assets of any
        such
        plan or arrangement, such attempted transfer or acquisition shall be void
        and of
        no effect.

      
        
          
          

        

        
          EXHIBIT
            C-2

          
            

          

        

        
          
          

        

      

       

      Each
        Holder of this Class R Certificate shall be deemed by the acceptance or
        acquisition an Ownership Interest in this Class R Certificate to have
        agreed to be bound by the following provisions, and the rights of each Person
        acquiring any Ownership Interest in this Class R Certificate are expressly
        subject to the following provisions: (i) each Person holding or acquiring
        any Ownership Interest in this Class 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
        Ownership Interest in this Class R Certificate may be registered on the
        Closing Date or thereafter transferred, and the Securities Administrator
        shall
        not register the Transfer of this Certificate unless, in addition to the
        certificates required to be delivered to the Securities Administrator under
        Section 5.02(b) of the Agreement, the Securities Administrator shall have
        been furnished with a Transfer Affidavit of the initial owner or the proposed
        transferee in the form attached as Exhibit G to the Agreement,
        (iii) each Person holding or acquiring any Ownership Interest in this
        Class R Certificate shall agree (A) to obtain a Transfer Affidavit
        from any other Person to whom such Person attempts to Transfer its Ownership
        Interest this Class R Certificate, (B) to obtain a Transfer Affidavit
        from any Person for whom such Person is acting as nominee, trustee or agent
        in
        connection with any Transfer of this Class R Certificate, (C) not to
        cause income with respect to the Class R Certificate to be attributable to
        a foreign permanent establishment or fixed base, within the meaning of an
        applicable income tax treaty, of such Person or any other U.S. Person and
        (D) not to Transfer the Ownership Interest in this Class R Certificate
        or to cause the Transfer of the Ownership Interest in this Class R
        Certificate to any other Person if it has actual knowledge that such Person
        is a
        Non-Permitted Transferee and (iv) any attempted or purported Transfer of
        the Ownership Interest in this Class R Certificate in violation of the
        provisions herein shall be absolutely null and void and shall vest no rights
        in
        the purported Transferee.

       

      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 Agreement or be
        valid
        for any purpose unless manually authenticated by an authorized signatory
        of the
        Securities Administrator.

       

      * * *

      
        
          
          

        

        
          EXHIBIT
            C-3

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      
        	
                Dated:

              	 

      

       

      CITIBANK,
        N.A.,
not
        in
        its individual capacity, but solely as
Securities
        Administrator

       

      By:
        ________________________________________

       

      Authenticated:

       

       

      By: 
        ____________________________________
Authorized
        Signatory of
CITIBANK,
        N.A.,
not
        in
        its individual capacity,
but
        solely as Securities Administrator

      
        
          
          

        

        
          EXHIBIT
            C-4

          
            

          

        

        
          
          

        

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust 2007-OPT1

      Mortgage
        Pass-Through Certificates

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as HSI
        Asset Securitization Corporation Trust 2007-OPT1 Mortgage Pass-Through
        Certificates, of the Series specified on the face hereof (herein collectively
        called the “Certificates”),
        and
        representing a beneficial ownership interest in the Trust Fund created by
        the
        Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely
        to the
        funds on deposit in the Distribution Account or Supplemental Interest Trust
        Account for payment hereunder and that neither the Trustee nor the Securities
        Administrator is liable to the Certificateholders for any amount payable
        under
        this Certificate or the Agreement or, except as expressly provided in the
        Agreement, subject to any liability under the Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced thereby, and the rights, duties and immunities
        of the Trustee.

       

      Pursuant
        to the terms of the Agreement, a distribution will be made on the 25th day
        of
        each month or, if such day is not a Business Day, the Business Day immediately
        following (the “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 equal to the product of the Percentage
        Interest evidenced by this Certificate and the amount required to be distributed
        to Holders of Certificates of the Class to which this Certificate belongs
        on
        such Distribution Date pursuant to the Agreement. The Record Date applicable
        to
        each Distribution Date is the last Business Day of the month next preceding
        the
        month of such Distribution Date.

       

      Distributions
        on this Certificate shall be made by wire transfer of immediately available
        funds to the account of the Holder hereof at a bank or other entity having
        appropriate facilities therefor, if such Certificateholder shall have so
        notified the Securities Administrator in writing at least five Business Days
        prior to the related Record Date and such Certificateholder shall satisfy
        the
        conditions to receive such form of payment set forth in the Agreement, or,
        if
        not, by check mailed by first class mail to the address of such
        Certificateholder appearing in the Certificate Register. The final distribution
        on each Certificate will be made in like manner, but only upon presentment
        and
        surrender of such Certificate at the offices designated by the Securities
        Administrator for such purpose, or such other location specified in the notice
        to Certificateholders of such final distribution.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Trustee
        and
        the rights of the Certificateholders under the Agreement at any time by the
        parties to the Agreement with the consent of the Holders of Certificates
        affected by such amendment evidencing the requisite Percentage Interest,
        as
        provided in the Agreement. Any such consent by the Holder of this Certificate
        shall be conclusive and binding on such Holder and upon all future Holders
        of
        this Certificate and of any Certificate issued upon the transfer hereof or
        in
        exchange therefor or in lieu hereof whether or not notation of such consent
        is
        made upon this Certificate. The Agreement also permits the amendment thereof,
        in
        certain limited circumstances, without the consent of the Holders of any
        of the
        Certificates.

      
        
          
          

        

        
          EXHIBIT
            C-5

          
            

          

        

        
          
          

        

      

       

      As
        provided in the 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 offices designated by the Securities Administrator for
        such
        purposes, accompanied by a written instrument of transfer in form satisfactory
        to the Securities Administrator 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 Fund will be issued to the
        designated transferee or transferees.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in
        denominations specified in the Agreement. As provided in the Agreement and
        subject to certain limitations therein set forth, Certificates are exchangeable
        for new Certificates of the same Class in authorized denominations 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
        Trustee, the Depositor and the Securities Administrator and any agent of
        the
        Trustee, the Depositor or the Securities Administrator may treat the Person
        in
        whose name this Certificate is registered as the owner hereof for all purposes,
        and neither the Trustee, the Depositor, the Securities Administrator nor
        any
        such agent shall be affected by any notice to the contrary.

       

      The
        Master Servicer may, or upon the instruction of the Depositor, shall, purchase
        the Mortgage Loans and therefore cause the termination of the Trust on any
        Optional Termination Date, which is any Distribution Date following any month
        in
        which the aggregate Stated Principal Balance of the Mortgage Loans as of
        the
        last day of the related Due Period is less than or equal to 10% of the aggregate
        Stated Principal Balance of the Mortgage Loans as of the Cut-off Date. Any
        such
        purchase of the Mortgage Loans would result in the payment on that Distribution
        Date of the final distribution on the Certificates. 

       

      The
        obligations and responsibilities created by the Agreement will terminate
        as
        provided in Section 11.01 of the Agreement.

       

      Any
        term
        used herein that is defined in the Agreement shall have the meaning assigned
        in
        the Agreement, and nothing herein shall be deemed inconsistent with that
        meaning.

      

      
        
          
          

        

        
          EXHIBIT
            C-6

          
            

          

        

        
          
          

        

      

      
        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 Fund.

         

        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.

         

        
          
            
            

          

          
            EXHIBIT
              C-7

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        D

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS AN INTEREST
        IN
        A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE
        TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
        REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)
        AND
        CERTAIN OTHER ASSETS.

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
        TRANSFEROR DELIVERS TO THE SECURITIES ADMINISTRATOR A TRANSFEROR LETTER IN
        THE
        FORM OF EXHIBIT H TO THE AGREEMENT REFERRED TO HEREIN AND EITHER
        (I) THE SECURITIES ADMINISTRATOR RECEIVES EITHER A RULE 144A INVESTMENT
        LETTER OR A REGULATION S INVESTMENT LETTER IN THE FORM OF EXHIBIT I-A AND
        EXHIBIT I-B, RESPECTIVELY, TO THE AGREEMENT REFERRED TO HEREIN OR (II) THE
        SECURITIES ADMINISTRATOR RECEIVES AN OPINION OF COUNSEL, DELIVERED AT THE
        EXPENSE OF THE TRANSFEROR, THAT SUCH TRANSFER MAY BE MADE WITHOUT REGISTRATION
        UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR A REPRESENTATION LETTER
        TO
        THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO
        TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
        (“ERISA”),
        OR A
        PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO MATERIALLY
        SIMILAR PROVISIONS OF APPLICABLE FEDERAL, STATE OR LOCAL LAW (“SIMILAR
        LAW”)
        OR A
        PERSON INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN. IN THE
        EVENT
        THAT SUCH REPRESENTATION IS VIOLATED, OR ANY ATTEMPT IS MADE TO TRANSFER
        TO A
        PLAN OR ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO
        SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO SIMILAR LAW, OR A PERSON
        ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS OF ANY
        SUCH
        PLAN OR ARRANGEMENT, SUCH ATTEMPTED TRANSFER OR ACQUISITION SHALL BE VOID
        AND OF
        NO EFFECT.

       

      
        	
                Certificate
                  No.

              	
                :

              	
                X-1

              
	 	 	 
	
                Cut-off
                  Date

              	
                :

              	
                January
                  1, 2007

              
	 	 	 
	
                First
                  Distribution Date

              	
                :

              	
                February
                  26, 2007

              
	 	 	 
	
                Percentage
                  Interest of this Certificate

              	
                :

              	
                100%

              
	 	 	 
	
                Interest
                  Rate

              	
                :

              	
                None

              
	 	 	 
	
                CUSIP

              	
                :

              	
                40431JAS2

              
	 	 	 
	
                ISIN

              	
                :

              	
                US40431JAS24

              

      

      
        
          
          

        

        
          EXHIBIT
            D-1

          
            

          

        

        
          
          

        

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust 2007-OPT1

      Mortgage
        Pass-Through Certificates, Series 2007-OPT1

       

      Class
        X

       

      evidencing
        a percentage interest in the distributions allocable to the Certificates
        of the
        above-referenced Class.

       

      Distributions
        in respect of this Certificate are distributable monthly as set forth herein.
        This Certificate does not evidence an obligation of, or an interest in, and
        is
        not guaranteed by the Depositor, the Trustee or any other party to the Agreement
        referred to below or any of their respective affiliates. Neither this
        Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
        agency or instrumentality.

       

      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 aggregate of the denominations of all Certificates
        of
        the Class to which this Certificate belongs) in certain monthly distributions
        pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date
        specified above (the “Agreement”)
        among
        HSI Asset Securitization Corporation, as depositor (the “Depositor”),
        Option One Mortgage Corporation, as servicer and originator, CitiMortgage,
        Inc.,
        as master servicer (the “Master
        Servicer”),
        Citibank, N.A., as securities administrator (the “Securities
        Administrator”),
        Wells
        Fargo Bank, N.A., as custodian, OfficeTiger Global Real Estate Services Inc.,
        as
        Credit Risk Manager, and Deutsche Bank National Trust Company, as trustee
        (the
“Trustee”).
        To
        the extent not defined herein, the capitalized terms used herein have the
        meanings assigned in the Agreement. This Certificate is issued under and
        is
        subject to the terms, provisions and conditions of the Agreement, to which
        Agreement the Holder of this Certificate by virtue of the acceptance hereof
        assents and by which such Holder is bound.

       

      This
        Certificate does not have a Certificate Balance or an Interest Rate and will
        be
        entitled to distributions only to the extent set forth in the Agreement.
        In
        addition, any distribution of the proceeds of any remaining assets of the
        Trust
        will be made only upon presentment and surrender of this Certificate at the
        offices designated by the Securities Administrator for such purpose, or such
        other location specified in the notice to Certificateholders.

       

      No
        transfer of a Certificate of this Class shall be made unless such disposition
        is
        exempt from the registration requirements of the Securities Act of 1933,
        as
        amended (the “1933 Act”),
        and
        any applicable state securities laws or is made in accordance with the 1933
        Act
        and such laws. In the event of any such transfer, the Securities Administrator
        shall require the transferor to execute a transferor certificate (in
        substantially the form attached to the Agreement) and deliver either (i) a
        Rule 144A Investment Letter or Regulation S Investment Letter, as
        applicable, in either case substantially in the form attached to the Agreement,
        or (ii) a written Opinion of Counsel to the Securities Administrator that
        such transfer may be made pursuant to an exemption, describing the applicable
        exemption and the basis therefor, from the 1933 Act or is being made pursuant
        to
        the 1933 Act, which Opinion of Counsel shall be an expense of the
        transferor.

      
        
          
          

        

        
          EXHIBIT
            D-2

          
            

          

        

        
          
          

        

      

       

      No
        transfer of a Certificate of this Class shall be made unless the Securities
        Administrator shall have received a representation letter from the transferee
        of
        such Certificate, acceptable to and in form and substance satisfactory to
        the
        Securities Administrator, to the effect that such transferee is not an employee
        benefit plan subject to Section 406 of ERISA, Section 4975 of the Code
        or any materially similar provisions of applicable federal, state or local
        law
        (“Similar
        Law”),
        or a
        person acting on behalf of or investing plan assets of any such plan, which
        representation letter shall not be an expense of the Securities
        Administrator.

       

      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 Agreement or be
        valid
        for any purpose unless manually authenticated by an authorized signatory
        of the
        Securities Administrator.

       

      * * *

      
        
          
          

        

        
          EXHIBIT
            D-3

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      
        	
                Dated:

              	 

      

       

      CITIBANK,
        N.A.,
not
        in
        its individual capacity, but solely as
Securities
        Administrator

       

       

      By:
        ___________________________________________

       

      Authenticated:

       

       

      By: 
        ______________________________________
Authorized
        Signatory of
CITIBANK,
        N.A.,
not
        in
        its individual capacity,
but
        solely as Securities Administrator

      
        
          
          

        

        
          EXHIBIT
            D-4

          
            

          

        

        
          
          

        

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust 2007-OPT1

      Mortgage
        Pass-Through Certificates

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as HSI
        Asset Securitization Corporation Trust 2007-OPT1 Mortgage Pass-Through
        Certificates, of the Series specified on the face hereof (herein collectively
        called the “Certificates”),
        and
        representing a beneficial ownership interest in the Trust Fund created by
        the
        Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely
        to the
        funds on deposit in the Distribution Account or Supplemental Interest Trust
        Account for payment hereunder and that neither the Trustee nor the Securities
        Administrator is liable to the Certificateholders for any amount payable
        under
        this Certificate or the Agreement or, except as expressly provided in the
        Agreement, subject to any liability under the Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced thereby, and the rights, duties and immunities
        of the Trustee.

       

      Pursuant
        to the terms of the Agreement, a distribution will be made on the 25th day
        of
        each month or, if such 25th day is not a Business Day, the Business Day
        immediately following (the “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 equal to the product of the Percentage
        Interest evidenced by this Certificate and the amount required to be distributed
        to Holders of Certificates of the Class to which this Certificate belongs
        on
        such Distribution Date pursuant to the Agreement. The Record Date applicable
        to
        each Distribution Date is the last Business Day of the month next preceding
        the
        month of such Distribution Date.

       

      Distributions
        on this Certificate shall be made by wire transfer of immediately available
        funds to the account of the Holder hereof at a bank or other entity having
        appropriate facilities therefor, if such Certificateholder shall have so
        notified the Securities Administrator in writing at least five Business Days
        prior to the related Record Date and such Certificateholder shall satisfy
        the
        conditions to receive such form of payment set forth in the Agreement, or,
        if
        not, by check mailed by first class mail to the address of such
        Certificateholder appearing in the Certificate Register. The final distribution
        on each Certificate will be made in like manner, but only upon presentment
        and
        surrender of such Certificate at the offices designated by the Securities
        Administrator for such purposes or such other location specified in the notice
        to Certificateholders of such final distribution.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Trustee
        and
        the rights of the Certificateholders under the Agreement at any time by the
        parties to the Agreement with the consent of the Holders of Certificates
        affected by such amendment evidencing the requisite Percentage Interest, as
        provided in the Agreement. Any such consent by the Holder of this Certificate
        shall be conclusive and binding on such Holder and upon all future Holders
        of
        this Certificate and of any Certificate issued upon the transfer hereof or
        in
        exchange therefor or in lieu hereof whether or not notation of such consent
        is
        made upon this Certificate. The Agreement also permits the amendment thereof,
        in
        certain limited circumstances, without the consent of the Holders of any
        of the
        Certificates.

      
        
          
          

        

        
          EXHIBIT
            D-5

          
            

          

        

        
          
          

        

      

       

      As
        provided in the 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 offices designated by the Securities Administrator for
        such
        purposes, accompanied by a written instrument of transfer in form satisfactory
        to the Securities Administrator 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 Fund will be issued to the
        designated transferee or transferees.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in
        denominations specified in the Agreement. As provided in the Agreement and
        subject to certain limitations therein set forth, Certificates are exchangeable
        for new Certificates of the same Class in authorized denominations 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
        Trustee, the Depositor and the Securities Administrator and any agent of
        the
        Trustee, the Depositor or the Securities Administrator may treat the Person
        in
        whose name this Certificate is registered as the owner hereof for all purposes,
        and neither the Trustee, the Depositor, the Securities Administrator nor
        any
        such agent shall be affected by any notice to the contrary.

       

      The
        Master Servicer may, or upon the instruction of the Depositor, shall, purchase
        the Mortgage Loans and therefore cause the termination of the Trust on any
        Optional Termination Date, which is any Distribution Date following any month
        in
        which the aggregate Stated Principal Balance of the Mortgage Loans as of
        the
        last day of the related Due Period is less than or equal to 10% of the aggregate
        Stated Principal Balance of the Mortgage Loans as of the Cut-off Date. Any
        such
        purchase of the Mortgage Loans would result in the payment on that Distribution
        Date of the final distribution on the Certificates. 

       

      The
        obligations and responsibilities created by the Agreement will terminate
        as
        provided in Section 11.01 of the Agreement.

       

      Any
        term
        used herein that is defined in the Agreement shall have the meaning assigned
        in
        the Agreement, and nothing herein shall be deemed inconsistent with that
        meaning

      
        
          
          

        

        
          EXHIBIT
            D-6

          
            

          

        

        
          
          

        

      

      
        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 Fund.

         

        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.

         

        
          
            
            

          

          
            EXHIBIT
              D-7

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        E

       

      FORM
        OF
        INITIAL CERTIFICATION OF CUSTODIAN

       

      [date]

       

      
        	
                HSI
                  Asset Securitization Corporation

                452
                  Fifth Avenue

                New
                  York, New York 10018

              	 
	 	 
	
                Citibank,
                  N.A.,

                as
                  Securities Administrator

                388
                  Greenwich, 14th
                  Floor

                New
                  York, New York 10013

                Attention:
                  Structured Finance Agency and Trust - HSI Asset Securitization
                  2007-OPT1

              	 
	 	 
	
                Deutsche
                  Bank National Trust Company

                1761
                  East St. Andrew Place

                Santa
                  Ana, California 92705-4934

              	 

      

       

      
        	 	
                Re:

              	
                HSI
                  Asset Securitization Corporation, Series
                  2007-OPT1

              

      

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.02 of the Pooling and Servicing Agreement (the
“Pooling
        and Servicing Agreement”)
        dated
        as of January 1, 2007 among HSI Asset Securitization Corporation, as depositor,
        Option One Mortgage Corporation, as servicer and originator, CitiMortgage,
        Inc.,
        as master servicer, Citibank, N.A., as securities administrator, Wells Fargo
        Bank, N.A., as custodian, OfficeTiger Global Real Estate Services Inc., as
        Credit Risk Manager, and Deutsche Bank National Trust Company, as trustee,
        for
        each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
        Loan listed in the attached schedule), it has received:

       

      (i) the
        original Mortgage Note, endorsed as provided in the following form: “Pay to the
        order of ________, without recourse”; and

       

      (ii) a
        duly
        executed assignment of the Mortgage (which may be included in a blanket
        assignment or assignments).

       

      Based
        on
        its review and examination and only as to the foregoing documents, such
        documents appear regular on their face and related to such Mortgage
        Loan.

       

      The
        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. The Custodian makes no representations as to: (i) the
        validity, legality, sufficiency, enforceability or genuineness of any of
        the
        documents contained in each Mortgage File of any of the Mortgage Loans
        identified on the Mortgage Loan Schedule, or (ii) the collectability,
        insurability, effectiveness or suitability of any such Mortgage
        Loan.

      
        
          
          

        

        
          EXHIBIT
            E-1

          
            

          

        

        
          
          

        

      

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the Pooling and Servicing Agreement.

       

      WELLS
        FARGO BANK, N.A., as Custodian

       

       

      By: 
        ___________________________________
Name: 
        ______________________________
Title:
        _______________________________

      

      

      
        
          
          

        

        
          EXHIBIT
            E-2

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        F

       

      FORM
        OF
        DOCUMENT CERTIFICATION

      AND
        EXCEPTION REPORT OF CUSTODIAN

       

      ______,
        20___

       

      
        	
                HSI
                  Asset Securitization Corporation

                452
                  Fifth Avenue

                New
                  York, New York 10018

              	
                Deutsche
                  Bank National Trust Company

                1761
                  East St. Andrew Place

                Santa
                  Ana, California 92705-4934

              
	 	 
	
                Citibank,
                  N.A.,

                 
                  as Securities Administrator

                388
                  Greenwich, 14th
                  Floor

                New
                  York, New York 10013

                Attention:
                  Structured Finance Agency and Trust - HSI Asset Securitization
                  2007-OPT1

              	
                Option
                  One Mortgage Corporation

                3
                  Ada

                Irvine,
                  California 92618

              
	 	 

      

       

      
        	 	
                Re:

              	
                HSI
                  Asset Securitization Corporation, Series
                  2007-OPT1

              

      

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.02 of the Pooling and Servicing Agreement (the
“Pooling
        and Servicing Agreement”)
        dated
        as of January 1, 2007 among HSI Asset Securitization Corporation, as depositor,
        Option One Mortgage Corporation, as servicer and originator, CitiMortgage,
        Inc.,
        as master servicer, Citibank, N.A., as securities administrator, Wells Fargo
        Bank, N.A., as custodian, OfficeTiger Global Real Estate Services Inc., as
        Credit Risk Manager, and Deutsche Bank National Trust Company, as trustee,
        the
        undersigned, as Custodian, hereby certifies that as to each Mortgage Loan
        listed
        in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full
        or
        listed on the attached Document Exception Report) it has received:

       

      (i) The
        original Mortgage Note, endorsed in the form provided in Section 2.01 of
        the Pooling and Servicing Agreement, with all intervening endorsements showing
        a
        complete chain of endorsement from the originator to the last
        endorsee.

       

      (ii) The
        original recorded Mortgage.

       

      (iii) A
        duly
        executed assignment of the Mortgage in the form provided in Section 2.01 of
        the Pooling and Servicing Agreement; or, if the Originator has certified
        or the
        Custodian otherwise knows that the related Mortgage has not been returned
        from
        the applicable recording office, a copy of the assignment of the Mortgage
        (excluding information to be provided by the recording office).

      
        
          
          

        

        
          EXHIBIT
            F-1

          
            

          

        

        
          
          

        

      

       

      (iv) The
        original or duplicate original recorded assignment or assignments of the
        Mortgage showing a complete chain of assignment from the originator to the
        last
        endorsee.

       

      (v) The
        original or duplicate original lender’s title policy and all riders thereto or,
        any one of an original title binder, an original preliminary title report
        or an
        original title commitment, or a copy thereof certified by the title
        company.

       

      Based
        on
        its review and examination and only as to the foregoing documents, (a) such
        documents appear regular on their face and related to such Mortgage Loan,
        and
        (b) the information set forth in items (1), (2), (3), (15), (18) and
        (22) of the Data Tape Information accurately reflects information set forth
        in
        the Custodial File.

       

      The
        Custodian has made no independent examination of any documents contained
        in each
        Mortgage File beyond the review of the Custodial File specifically required
        in
        the Pooling and Servicing Agreement. The Custodian makes no representation
        as
        to: (i) the validity, legality, sufficiency, enforceability or genuineness
        of any of the documents contained in each Mortgage File of any of the Mortgage
        Loans identified on the Mortgage Loan Schedule, or (ii) the collectability,
        insurability, effectiveness or suitability of any such Mortgage Loan.
        Notwithstanding anything herein to the contrary, the Custodian has made no
        determination and makes no representations as to whether (i) any
        endorsement is sufficient to transfer all right, title and interest of the
        party
        so endorsing, as noteholder or assignee thereof, in and to that Mortgage
        Note or
        (ii) any assignment is in recordable form or sufficient to effect the
        assignment of and transfer to the assignee thereof, under the Mortgage to
        which
        the assignment relates.

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the Pooling and Servicing Agreement.

      
         

        WELLS
          FARGO BANK, N.A., as Custodian

         

         

        By: 
          ___________________________________
Name: 
          ______________________________
Title:
          _______________________________

        

      

       

      
        
          
          

        

        
          EXHIBIT
            F-2

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        G

       

      FORM
        OF
        RESIDUAL TRANSFER AFFIDAVIT

       

      HSI
        Asset
        Securitization Corporation Trust 2007-OPT1

      Mortgage
        Pass-Through Certificates, Series 2007-OPT1

      

      
        	
                STATE
                  OF

              	
                )

              
	 	
                )       ss.:

              
	
                COUNTY
                  OF

              	
                )

              

      

       

      The
        undersigned, being first duly sworn, deposes and says as follows:

       

      1. The
        undersigned is an officer of ___________________, the proposed Transferee
        of an
        Ownership Interest in a Class R Certificate (the “Certificate”)
        issued
        pursuant to the Pooling and Servicing Agreement (the “Agreement”),
        relating to the above-referenced Series, dated as of January 1, 2007 among
        HSI
        Asset Securitization Corporation, as depositor, Option One Mortgage Corporation,
        as servicer and originator, CitiMortgage, Inc., as master servicer, Citibank,
        N.A., as securities administrator, Wells Fargo Bank, N.A., as custodian,
        OfficeTiger Global Real Estate Services Inc., as Credit Risk Manager, and
        Deutsche Bank National Trust Company, 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 for the benefit of the Depositor, the Securities
        Administrator and the Trustee.

       

      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 its Ownership
        Interest in the Certificate for its own account. 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 Certificate to Persons that are Non-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 a Non-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 a Non-Permitted Transferee
        is
        the record holder of an interest in such entity. The Transferee understands
        that
        such tax will not be imposed for any period with respect to which the record
        holder furnishes to the pass-through entity an affidavit that such record
        holder
        is a Permitted Transferee and the pass-through entity does not have actual
        knowledge that such affidavit is false. (For this purpose, a “pass-through
        entity” includes a regulated investment company, a real estate investment trust
        or common trust fund, a partnership, trust or estate, and certain cooperatives
        and, except as may be provided in Treasury Regulations, persons holding
        interests in pass-through entities as a nominee for another
        Person.)

      
        
          
          

        

        
          EXHIBIT
            G-1

          
            

          

        

        
          
          

        

      

       

      5. The
        Transferee has reviewed the provisions of Section 5.02(c) of the Agreement
        and understands the legal consequences of the acquisition of an Ownership
        Interest in the Certificate including, without limitation, the restrictions
        on
        subsequent Transfers and the provisions regarding voiding the Transfer and
        mandatory sales. The Transferee expressly agrees to be bound by and to abide
        by
        the provisions of Section 5.02(c) of the Agreement and the restrictions
        noted on the face of the Certificate. The Transferee understands and agrees
        that
        any breach of any of the representations included herein shall render the
        Transfer to the Transferee contemplated hereby null and void.

       

      6. The
        Transferee agrees to require a Transfer Affidavit from any Person to whom
        the
        Transferee attempts to Transfer its Ownership Interest in the Certificate,
        and
        in connection with any Transfer by a Person for whom the Transferee is acting
        as
        nominee, trustee or agent, and the Transferee will not Transfer its Ownership
        Interest or cause any Ownership Interest to be Transferred to any Person
        that
        the Transferee knows is a Non-Permitted Transferee. In connection with any
        such
        Transfer by the Transferee, the Transferee agrees to deliver to the Securities
        Administrator a certificate substantially in the form set forth as
        Exhibit H to the Agreement (a “Transferor
        Certificate”)
        to the
        effect that, among other things, such Transferee has no actual knowledge
        that
        the Person to which the Transfer is to be made is a Non-Permitted
        Transferee.

       

      7. The
        Transferee does not have the intention to impede the assessment or collection
        of
        any tax legally required to be paid with respect to the Certificate. The
        Transferee has historically paid its debts as they have come due and intends
        to
        pay its debts as they come due in the future. The Transferee intends to pay
        all
        taxes due with respect to the Certificate as they become due.

       

      8. The
        Transferee’s taxpayer identification number is __________.

       

      9. The
        Transferee is not a Disqualified Non-U.S. Person as defined in the
        Agreement.

       

      10. The
        Transferee is aware that the Certificate may be a “noneconomic residual
        interest” within the meaning of proposed Treasury regulations promulgated
        pursuant to the Code and that the transferor of a noneconomic residual interest
        will remain liable for any taxes due with respect to the income on such residual
        interest, unless no significant purpose of the transfer was to impede the
        assessment or collection of tax.

       

      11. 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.

      
        
          
          

        

        
          EXHIBIT
            G-2

          
            

          

        

        
          
          

        

      

       

      12. Check
        the
        applicable paragraph:

       

      o The
        present value of the
        anticipated tax liabilities associated with holding the Certificate, as
        applicable, does not exceed the sum of:

       

      (i) the
        present value of any consideration given to the Transferee to acquire such
        Certificate;

       

      (ii) the
        present value of the expected future distributions on such Certificate;
        and

       

      (iii) the
        present value of the anticipated tax savings associated with holding such
        Certificate as the related REMIC generates losses.

       

      For
        purposes of this calculation, (i) the Transferee is assumed to pay tax at
        the highest rate currently specified in Section 11(b) of the Code (but the
        tax rate in Section 55(b)(1)(B) of the Code may be used in lieu of the highest
        rate specified in Section 11(b) of the Code if the Transferee has been
        subject to the alternative minimum tax under Section 55 of the Code in the
        preceding two years and will compute its taxable income in the current taxable
        year using the alternative minimum tax rate) and (ii) present values are
        computed using a discount rate equal to the short-term Federal rate prescribed
        by Section 1274(d) of the Code for the month of the transfer and the
        compounding period used by the Transferee.

       

      o The
        transfer of the 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 the 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 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;
        and

       

      (iv) the
        Transferee determined the consideration paid to it to acquire the 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.

       

      o None
        of
        the above.

      
        
          
          

        

        
          EXHIBIT
            G-3

          
            

          

        

        
          
          

        

      

       

      13. The
        Transferee is not an employee benefit plan that is subject to Title I of
        ERISA or a plan that is subject to Section 4975 of the Code or a plan
        subject to any Federal, state or local law that is substantially similar
        to
        Title I of ERISA or Section 4975 of the Code, and the Transferee is
        not acting on behalf of or investing plan assets of such a plan.

       

      * * *

       

      IN
        WITNESS WHEREOF, the Transferee has caused this instrument to be executed
        on its
        behalf, pursuant to authority of its Board of Directors, by its duly authorized
        officer and its corporate seal to be hereunto affixed, duly attested, this
        ___
        day of _______, 20__.

       

       

       

      ______________________________________

      Print
        Name of Transferee

       

       

      By: 
        ___________________________________
Name:
Title:

       

      [Corporate
        Seal]

       

      ATTEST:

       

      ______________________________________

      [Assistant]
        Secretary

       

      Personally
        appeared before me the above-named __________, known or proved to me to be
        the
        same person who executed the foregoing instrument and to be the ___________
        of
        the Transferee, and acknowledged that he executed the same as his free act
        and
        deed and the free act and deed of the Transferee.

       

      Subscribed
        and sworn before me this ___ day of _______, 20__.

       

       

       

      ________________________________________

                                    NOTARY
        PUBLIC

       

      My
        Commission expires the __ day

      of
        _________, 20__

      

      

      
        
          
          

        

        
          EXHIBIT
            G-4

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        H

       

      FORM
        OF
        TRANSFEROR CERTIFICATE

       

      __________,
        20__

       

      HSI
        Asset
        Securitization Corporation

      452
        Fifth
        Avenue

      New
        York,
        New York 10018

      Attention:
        Head MBS Principal Finance

       

      Citibank,
        N.A.,

       
as
        Securities Administrator

      388
        Greenwich, 14th
        Floor

      New
        York,
        New York 10013

      Attention:
        Structured Finance Agency and Trust - HSI Asset Securitization
        2007-OPT1

       

      
        	 	
                Re:

              	
                HSI
                  Asset Securitization Corporation Trust 2007-OPT1 Mortgage 
Pass-Through
                  Certificates, Series 2007-OPT1, Class
                  [__]

              

      

       

      Ladies
        and Gentlemen:

       

      In
        connection with our disposition of the above Certificates we certify that
        (a) we understand that the Certificates have not been registered under the
        Securities Act of 1933, as amended (the “Act”),
        and
        are being disposed by us in a transaction that is exempt from the registration
        requirements of the Act, (b) we have not offered or sold any Certificates
        to, or solicited offers to buy any Certificates from, any person, or otherwise
        approached or negotiated with any person with respect thereto, in a manner
        that
        would be deemed, or taken any other action which would result in, a violation
        of
        Section 5 of the Act and (c) to the extent we are disposing of a
        Residual Certificate, (i) we have no knowledge the Transferee is a
        Non-Permitted Transferee, (ii) after conducting a reasonable investigation
        of the financial condition of the Transferee, we have no knowledge and no
        reason
        to believe that the Transferee will not pay all taxes with respect to the
        Residual Certificates as they become due and (iii) we have no reason to
        believe that the statements made in paragraphs 7, 10 and 11 of the
        Transferee’s Residual Transfer Affidavit are false.

       

      In
        connection with any disposition of the above Certificates in accordance with
        Rule 904 of Regulation S we hereby certify that:

       

      
        	 	
                a.
                  

              	
                the
                  offer of the Certificates was not made to a person in the United
                  States;

              

      

       

      
        	 	
                b.
                  

              	
                at
                  the time the buy order was originated, the transferee was outside
                  the
                  United States or the Transferor and any person acting on its behalf
                  responsibly believed
                  the transferee was outside the United
                  States;

              

      

       

      
        
          
          

        

        
          EXHIBIT
            H-1

          
            

          

        

        
          
          

        

      

       

      
        	 	
                c.

              	
                no
                  directed selling efforts have been made in contravention of the
                  requirements of Rule 903 or Rule 904 of Regulation S, as
                  applicable;

              

      

       

      
        	 	
                d.
                  

              	
                the
                  transaction is not part of a plan or scheme to
                  evade the registration requirements of the Securities Act, as amended;
                  and

              

      

       

      
        	 	
                e.

              	
                the
                  transferee is not a U.S. person (as defined in Regulation
                  S).

              

      

       

      

       

      Very
        truly yours,

       

       

      _________________________________________

      Print
        Name of Transferor

       

       

      By:
        ______________________________________
                                  
Authorized
        Officer

      

      
        
          
          

        

        
          EXHIBIT
            H-2

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        I-A

       

      FORM
        OF
        RULE 144A INVESTMENT LETTER

       

      ____________,
        20__

       

      HSI
        Asset
        Securitization Corporation

      452
        Fifth
        Avenue

      New
        York,
        New York 10018

      Attention:
        Head MBS Principal Finance

       

      Citibank,
        N.A.,

       
as
        Securities Administrator

      388
        Greenwich, 14th
        Floor

      New
        York,
        New York 10013

      Attention:
        Structured Finance Agency and Trust - HSI Asset Securitization
        2007-OPT1

      

      
        	 	
                Re:

              	
                HSI
                  Asset Securitization Corporation Trust
                  2007-OPT1

              

      

      
        	 	 	
                Mortgage
                  Pass-Through Certificates, Series 2007-OPT1, Class
                  [__]

              

      

       

      Ladies
        and Gentlemen:

      

      In
        connection with our acquisition of the above Certificates we certify that
        (a) we understand that the Certificates are not being registered under the
        Securities Act of 1933, as amended (the “Act”),
        or
        any state securities laws and are being transferred to us in a transaction
        that
        is exempt from the registration requirements of the Act and any such laws,
        (b) we have such knowledge and experience in financial and business matters
        that we are capable of evaluating the merits and risks of investments in
        the
        Certificates, (c) we have had the opportunity to ask questions of and
        receive answers from the Depositor concerning the purchase of the Certificates
        and all matters relating thereto or any additional information deemed necessary
        to our decision to purchase the Certificates, (d) in the case of an
        ERISA-Restricted Certificate, we are not an employee benefit plan that is
        subject to Title I of the Employee Retirement Income Security Act of 1974,
        as amended (“ERISA”),
        or a
        plan or arrangement that is subject to Section 4975 of the Internal Revenue
        Code of 1986, as amended, or a plan subject to materially similar provisions
        of
        applicable federal, state or local law, nor are we acting on behalf of any
        such
        plan or arrangement nor using the assets of any such plan or arrangement
        to
        effect such acquisition or, with respect to an ERISA-Restricted Certificate
        other than a Class M-10, Class P Certificate, a Class X Certificate or a
        Residual Certificate, such Certificate has been the subject of an
        ERISA-Qualifying Underwriting and the purchaser is an insurance company that
        is
        purchasing this certificate with funds contained in an “insurance company
        general account” (as such term is defined in Section V(e) of Prohibited
        Transaction Class Exemption (“PTCE”)
        95-60)
        and that the purchase and holding of such Certificates are covered under
        Sections I and III of PTCE 95-60, (e)  in the case of an
        ERISA-Restricted Trust Certificate prior to the termination of the swap
        agreement and the cap agreement, either (i) we are not an employee benefit
        plan
        that is subject to Title I of ERISA, or a plan or arrangement that is
        subject to Section 4975 of the Internal Revenue Code of 1986, as amended,
        nor a person acting on behalf of any such plan, nor are we using the assets
        of
        any such plan to effect such transfer or (ii) our acquisition and holding
        of the
        ERISA-Restricted Trust Certificate is eligible for exemptive relief under
        the
        statutory exemption for non-fiduciary service providers under Section 408(b)(17)
        of ERISA and Section 4975(d)(20) of the Code, PTCE 84-14, PTCE 90-1, PTCE
        91-38,
        PTCE 95-60 or PTCE 96-23 or some other applicable exemption, (f) we have
        not,
        nor has anyone acting on our behalf offered, transferred, pledged, sold or
        otherwise disposed of the Certificates, any interest in the Certificates
        or any
        other similar security to, or solicited any offer to buy or accept a transfer,
        pledge or other disposition of the Certificates, any interest in the
        Certificates or any other similar security from, or otherwise approached
        or
        negotiated with respect to the Certificates, any interest in the Certificates
        or
        any other similar security with, any person in any manner, or made any general
        solicitation by means of general advertising or in any other manner, or taken
        any other action, that would constitute a distribution of the Certificates
        under
        the Securities Act or that would render the disposition of the Certificates
        a
        violation of Section 5 of the Securities Act or require registration
        pursuant thereto, nor will act, nor has authorized or will authorize any
        person
        to act, in such manner with respect to the Certificates, and (g) we are a
“qualified institutional buyer” as that term is defined in Rule 144A under
        the Securities Act and have completed either of the forms of certification
        to
        that effect attached hereto as Annex 1 or Annex 2. We are aware that
        the sale to us is being made in reliance on Rule 144A. We are acquiring the
        Certificates for our own account or for resale pursuant to Rule 144A and
        further, understand that such Certificates may be resold, pledged or transferred
        only (i) to a person reasonably believed to be a qualified institutional
        buyer that purchases for its own account or for the account of a qualified
        institutional buyer to whom notice is given that the resale, pledge or transfer
        is being made in reliance on Rule 144A, or (ii) pursuant to another
        exemption from registration under the Securities Act.

      
        
          
          

        

        
          EXHIBIT
            I-A-1

          
            

          

        

        
          
          

        

      

       

      ANNEX
        1 TO EXHIBIT I

       

      QUALIFIED
        INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

       

      [For
        Transferees Other Than Registered Investment Companies]

       

      The
        undersigned (the “Buyer”)
        hereby
        certifies as follows to the parties listed in the Rule 144A Transferee
        Certificate to which this certification relates with respect to the Certificates
        described therein:

       

      1. As
        indicated below, the undersigned is the President, Chief Financial Officer,
        Senior Vice President or other executive officer of the Buyer.

       

      2. In
        connection with purchases by the Buyer, the Buyer is a “qualified institutional
        buyer” as that term is defined in Rule 144A under the Securities Act of
        1933, as amended (“Rule 144A”),
        because (i) the Buyer owned and/or invested on a discretionary basis
        $________1
        in
        securities (except for the excluded securities referred to below) as of the
        end
        of the Buyer’s most recent fiscal year (such amount being calculated in
        accordance with Rule 144A and (ii) the Buyer satisfies the criteria in
        the category marked below. 

       

      
        	 	
                ____

              	
                Corporation,
                  etc.
                  The Buyer is a corporation (other than a bank, savings and loan
                  association or similar institution), Massachusetts or similar business
                  trust, partnership, or charitable organization described in
                  Section 501(c)(3) of the Internal Revenue Code of 1986, as
                  amended.

              

      

       

      
        	 	
                ____

              	
                Bank.
                  The Buyer (a) is a national bank or banking institution organized
                  under the laws of any State, territory or the District of Columbia,
                  the
                  business of which is substantially confined to banking and is supervised
                  by the State or territorial banking commission or similar official
                  or is a
                  foreign bank or equivalent institution, and (b) has an audited net
                  worth of at least $25,000,000 as demonstrated in its latest annual
                  financial statements, a copy of which is attached
                  hereto.

              

      

       

      
        	 	
                ____

              	
                Savings
                  and Loan.
                  The Buyer (a) is a savings and loan association, building and loan
                  association, cooperative bank, homestead association or similar
                  institution, which is supervised and examined by a State or Federal
                  authority having supervision over any such institutions or is a
                  foreign
                  savings and loan association or equivalent institution and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in its
                  latest
                  annual financial statements, a copy of which is attached
                  hereto.

              

      

       

      
        	 	
                ____

              	
                Broker-dealer.
                  The Buyer is a dealer registered pursuant to Section 15 of the
                  Securities Exchange Act of 1934.

              

      

      

      ______________________

      1    Buyer
        must own and/or invest on a discretionary basis at least $100,000,000 in
        securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
        invest on a discretionary basis at least $10,000,000 in securities.

      
        
          
          

        

        
          EXHIBIT
            I-A-2

          
            

          

        

        
          
          

        

      

       

      
        	 	
                ____

              	
                Insurance
                  Company.
                  The Buyer is an insurance company whose primary and predominant
                  business
                  activity is the writing of insurance or the reinsuring of risks
                  underwritten by insurance companies and which is subject to supervision
                  by
                  the insurance commissioner or a similar official or agency of a
                  State,
                  territory or the District of
                  Columbia.

              

      

       

      
        	 	
                ____

              	
                State
                  or Local Plan.
                  The Buyer is a plan established and maintained by a State, its
                  political
                  subdivisions, or any agency or instrumentality of the State or
                  its
                  political subdivisions, for the benefit of its
                  employees.

              

      

       

      
        	 	
                ____

              	
                ERISA
                  Plan.
                  The Buyer is an employee benefit plan within the meaning of Title I
                  of the Employee Retirement Income Security Act of
                  1974.

              

      

       

      
        	 	
                ____

              	
                Investment
                  Advisor.
                  The Buyer is an investment advisor registered under the Investment
                  Advisors Act of 1940.

              

      

       

      
        	 	
                ____

              	
                Small
                  Business Investment Company.
                  Buyer is a small business investment company licensed by the U.S.
                  Small
                  Business Administration under Section 301(c) or (d) of the Small
                  Business
                  Investment Act of 1958.

              

      

       

      
        	 	
                ____

              	
                Business
                  Development Company.
                  Buyer is a business development company as defined in Section 202(a)(22)
                  of the Investment Advisors Act of
                  1940.

              

      

       

      3. The
        term
“securities”
as
        used
        herein does
        not include
        (i) securities of issuers that are affiliated with the Buyer,
        (ii) securities that are part of an unsold allotment to or subscription by
        the Buyer, if the Buyer is a dealer, (iii) securities issued or guaranteed
        by the U.S. or any instrumentality thereof, (iv) bank deposit notes and
        certificates of deposit, (v) loan participations, (vi) repurchase
        agreements, (vii) securities owned but subject to a repurchase agreement
        and (viii) currency, interest rate and commodity swaps.

       

      4. For
        purposes of determining the aggregate amount of securities owned and/or invested
        on a discretionary basis by the Buyer, the Buyer used the cost of such
        securities to the Buyer and did not include any of the securities referred
        to in
        the preceding paragraph, except (i) where the Buyer reports its securities
        holdings in its financial statements on the basis of their market value,
        and
        (ii) no current information with respect to the cost of those securities
        has been published. If clause (ii) in the preceding sentence applies, the
        securities may be valued at market. Further, in determining such aggregate
        amount, the Buyer may have included securities owned by subsidiaries of the
        Buyer, but only if such subsidiaries are consolidated with the Buyer in its
        financial statements prepared in accordance with generally accepted accounting
        principles and if the investments of such subsidiaries are managed under
        the
        Buyer’s direction. However, such securities were not included if the Buyer is a
        majority-owned, consolidated subsidiary of another enterprise and the Buyer
        is
        not itself a reporting company under the Securities Exchange Act of 1934,
        as
        amended.

       

      5. The
        Buyer
        acknowledges that it is familiar with Rule 144A and understands that the
        seller to it and other parties related to the Certificates are relying and
        will
        continue to rely on the statements made herein because one or more sales
        to the
        Buyer may be in reliance on Rule 144A.

      
        
          
          

        

        
          EXHIBIT
            I-A-3

          
            

          

        

        
          
          

        

      

       

      6. Until
        the
        date of purchase of the Rule 144A Securities, the Buyer will notify each of
        the parties to which this certification is made of any changes in the
        information and conclusions herein. Until such notice is given, the Buyer’s
        purchase of the Certificates will constitute a reaffirmation of this
        certification as of the date of such purchase. In addition, if the Buyer
        is a
        bank or savings and loan is provided above, the Buyer agrees that it will
        furnish to such parties updated annual financial statements promptly after
        they
        become available.

       

       

       

      _______________________________________

      Print
        Name of Transferee

       

       

      By: 
        ____________________________________
Name:
Title:

       

       

      Date: 
        ___________________________________

      

      
        
          
          

        

        
          EXHIBIT
            I-A-4

          
            

          

        

        
          
          

        

      

       

      ANNEX
        2 TO EXHIBIT I

       

      QUALIFIED
        INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

       

      [For
        Transferees That Are Registered Investment Companies]

       

      The
        undersigned (the “Buyer”)
        hereby
        certifies as follows to the parties listed in the Rule 144A Transferee
        Certificate to which this certification relates with respect to the Certificates
        described therein:

       

      1. As
        indicated below, the undersigned is the President, Chief Financial Officer
        or
        Senior Vice President of the Buyer or, if the Buyer is a “qualified
        institutional buyer” as that term is defined in Rule 144A under the
        Securities Act of 1933, as amended (“Rule 144A”),
        because Buyer is part of a Family of Investment Companies (as defined below),
        is
        such an officer of the Adviser.

       

      2. In
        connection with purchases by Buyer, the Buyer is a “qualified institutional
        buyer” as defined in SEC Rule 144A because (i) the Buyer is an
        investment company registered under the Investment Company Act of 1940, as
        amended, and (ii) as marked below, the Buyer alone, or the Buyer’s Family
        of Investment Companies, owned at least $100,000,000 in securities (other
        than
        the excluded securities referred to below) as of the end of the Buyer’s most
        recent fiscal year. For purposes of determining the amount of securities
        owned
        by the Buyer or the Buyer’s Family of Investment Companies, the cost of such
        securities was used, except (i) where the Buyer or the Buyer’s Family of
        Investment Companies reports its securities holdings in its financial statements
        on the basis of their market value, and (ii) no current information with
        respect to the cost of those securities has been published. If clause (ii)
        in the preceding sentence applies, the securities may be valued at market.
        

       

      
        	 	
                ____

              	
                The
                  Buyer owned $_______ in securities (other than the excluded securities
                  referred to below) as of the end of the Buyer’s most recent fiscal year
                  (such amount being calculated in accordance with
                  Rule 144A).

              

      

       

      
        	 	
                ____

              	
                The
                  Buyer is part of a Family of Investment Companies which owned in
                  the
                  aggregate $_______ in securities (other than the excluded securities
                  referred to below) as of the end of the Buyer’s most recent fiscal year
                  (such amount being calculated in accordance with
                  Rule 144A).

              

      

       

      3. The
        term
“Family
        of Investment Companies”
as
        used
        herein means two or more registered investment companies (or series thereof)
        that have the same investment adviser or investment advisers that are affiliated
        (by virtue of being majority owned subsidiaries of the same parent or because
        one investment adviser is a majority owned subsidiary of the
        other).

       

      4. The
        term
“securities”
as
        used
        herein does not include (i) securities of issuers that are affiliated with
        the Buyer or are part of the Buyer’s Family of Investment Companies,
        (ii) securities issued or guaranteed by the U.S. or any instrumentality
        thereof, (iii) bank deposit notes and certificates of deposit,
        (iv) loan participations, (v) repurchase agreements,
        (vi) securities owned but subject to a repurchase agreement and
        (vii) currency, interest rate and commodity swaps.

      
        
          
          

        

        
          EXHIBIT
            I-A-5

          
            

          

        

        
          
          

        

      

       

      5. The
        Buyer
        is familiar with Rule 144A and understands that the parties listed in the
        Rule 144A Transferee Certificate to which this certification relates are
        relying and will continue to rely on the statements made herein because one
        or
        more sales to the Buyer will be in reliance on Rule 144A. In addition, the
        Buyer will only purchase for the Buyer’s own account.

       

      6. Until
        the
        date of purchase of the Certificates, the undersigned will notify the parties
        listed in the Rule 144A Transferee Certificate to which this certification
        relates of any changes in the information and conclusions herein. Until such
        notice is given, the Buyer’s purchase of the Certificates will constitute a
        reaffirmation of this certification by the undersigned as of the date of
        such
        purchase.

       

       

      
        _______________________________________

        Print
          Name of Transferee

         

         

        By: 
          ____________________________________
Name:
Title:

         

         

        IF
          AN
          ADVISER:

        
           

           

          _______________________________________

          Print
            Name of Transferee

           

        

         

         

        Date: 
          ___________________________________

        

          
            
              
              

            

            
              EXHIBIT
                I-A-6

              
                

              

            

            
              
              

            

          

      

      EXHIBIT
        I-B

       

      FORM
        OF
        REGULATION S INVESTMENT LETTER

       

      ____________,
        20__

       

      HSI
        Asset
        Securitization Corporation

      452
        Fifth
        Avenue

      New
        York,
        New York 10018

      Attention:
        Head MBS Principal Finance

       

      Citibank,
        N.A.,

       
as
        Securities Administrator

      388
        Greenwich, 14th
        Floor

      New
        York,
        New York 10013

      Attention:
        Structured Finance Agency and Trust - HSI Asset Securitization
        2007-OPT1

      

      
        	 	
                Re:

              	
                HSI
                  Asset Securitization Corporation Trust 2007-OPT1
                  

              

      

      
        	 	 	
                Mortgage
                  Pass-Through Certificates, Series 2007-OPT1, Class
                  [__]

              

      

       

      Ladies
        and Gentlemen:

       

      In
        connection with our acquisition of the above Certificates we certify that
        (a) we understand that the Certificates are not being registered under the
        Securities Act of 1933, as amended (the “Act”),
        or
        any state securities laws and are being transferred to us in a transaction
        that
        is exempt from the registration requirements of the Act and any such laws,
        (b) we have such knowledge and experience in financial and business matters
        that we are capable of evaluating the merits and risks of investments in
        the
        Certificates, (c) we have had the opportunity to ask questions of and
        receive answers from the Depositor concerning the purchase of the Certificates
        and all matters relating thereto or any additional information deemed necessary
        to our decision to purchase the Certificates, (d) in the case of an
        ERISA-Restricted Certificate, we are not an employee benefit plan that is
        subject to Title I of the Employee Retirement Income Security Act of 1974,
        as amended (“ERISA”),
        or a
        plan or arrangement that is subject to Section 4975 of the Internal Revenue
        Code of 1986, as amended, or a plan subject to materially similar provisions
        of
        applicable federal, state or local law, nor are we acting on behalf of any
        such
        plan or arrangement nor using the assets of any such plan or arrangement
        to
        effect such acquisition or, with respect to an ERISA-Restricted Certificate
        other than a Class M-10, Class P Certificate, a Class X Certificate or a
        Residual Certificate, such Certificate has been the subject of an
        ERISA-Qualifying Underwriting and the purchaser is an insurance company that
        is
        purchasing this certificate with funds contained in an “insurance company
        general account” (as such term is defined in Section V(e) of Prohibited
        Transaction Class Exemption (“PTCE”)
        95-60)
        and that the purchase and holding of such Certificates are covered under
        Sections I and III of PTCE 95-60, (e)  in the case of an
        ERISA-Restricted Trust Certificate prior to the termination of the swap
        agreement and the cap agreement, either (i) we are not an employee benefit
        plan
        that is subject to Title I of ERISA, or a plan or arrangement that is
        subject to Section 4975 of the Internal Revenue Code of 1986, as amended,
        nor a person acting on behalf of any such plan, nor are we using the assets
        of
        any such plan to effect such transfer or (ii) our acquisition and holding
        of the
        ERISA-Restricted Trust Certificate is eligible for exemptive relief under
        the
        statutory exemption for non-fiduciary service providers under Section 408(b)(17)
        of ERISA and Section 4975(d)(20) of the Code, PTCE 84-14, PTCE 90-1, PTCE
        91-38,
        PTCE 95-60 or PTCE 96-23 or some other applicable exemption, (f) we have
        not,
        nor has anyone acting on our behalf offered, transferred, pledged, sold or
        otherwise disposed of the Certificates, any interest in the Certificates
        or any
        other similar security to, or solicited any offer to buy or accept a transfer,
        pledge or other disposition of the Certificates, any interest in the
        Certificates or any other similar security from, or otherwise approached
        or
        negotiated with respect to the Certificates, any interest in the Certificates
        or
        any other similar security with, any person in any manner, or made any general
        solicitation by means of general advertising or in any other manner, or taken
        any other action, that would constitute a distribution of the Certificates
        under
        the Securities Act or that would render the disposition of the Certificates
        a
        violation of Section 5 of the Securities Act or require registration
        pursuant thereto, nor will act, nor has authorized or will authorize any
        person
        to act, in such manner with respect to the Certificates, and (g) we are not
        a U.S. person within the meaning of Regulation S of the Securities Act and
        was
        at the time the buy order was originated for the Class [ ] Certificates outside
        the United States. We are aware that the sale to us is being made in reliance
        on
        Regulation S of the Securities Act and we understand (x) that until the
        expiration of the 40-day distribution
        compliance period (within the meaning of Regulation S), no offer, sale, pledge
        or other transfer of such Certificates or any interest therein shall be made
        in
        the United States or to or for the account or benefit of a U.S. person (each
        as
        defined in Regulation S), (y) if in the future we decide to offer, resell,
        pledge or otherwise transfer such Certificates, such Certificates may be
        offered, resold, pledged or transferred only to (A) a person which the seller
        reasonably believes is a “qualified institutional buyer” (a “QIB”) as defined in
        Rule 144A under the Securities Act, that is purchasing such Certificate for
        its
        own account or for the account of a QIB in reliance on Rule 144A or (B) in
        an
        offshore transaction (as defined in Regulation S) in compliance with the
        provisions of Regulation S, in each case in compliance with the requirements
        of
        the Agreement; and we will notify such transferee of the transfer restrictions
        specified in the Agreement. 

       

      

      
        
          
          

        

        
          EXHIBIT
            I-B-1

          
            

          

        

        
          
          

        

      

       

      

      
         

        
          _______________________________________

          Print
            Name of Transferee

           

           

          By: 
            ____________________________________
Name:
Title:

           

           

          IF
            AN
            ADVISER:

          
             

             

            _______________________________________

            Print
              Name of Transferee

             

          

          Date:

          

        

      

      

       

      

       

      

       

      
        
          
          

        

        
          EXHIBIT
            I-B-2

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        J

       

      FORM
        OF
        REQUEST FOR RELEASE

      (for
        Custodian)

       

      
        	
                To:

              	
                Wells
                  Fargo Bank, N.A.

              

      

      1015
        10th
        Avenue SE

      Minneapolis,
        Minnesota 55414

      

      
        	 	
                Re:

              	
                Pooling
                  and Servicing Agreement (the “Pooling and Servicing Agreement”) dated as
                  of January 1, 2007 among HSI Asset Securitization Corporation,
                  as
                  depositor, Option One Mortgage Corporation, as servicer and originator,
                  CitiMortgage, Inc., as master servicer, Citibank, N.A., as securities
                  administrator, Wells Fargo Bank, N.A., as custodian, OfficeTiger
                  Global
                  Real Estate Services Inc., as Credit Risk Manager, and Deutsche
                  Bank
                  National Trust Company, as trustee.

              

      

       

      In
        connection with the administration of the Mortgage Loans held by you as the
        Custodian on behalf of the Certificateholders, we request the release, and
        acknowledge receipt, of the (Custodial File/[specify documents]) for the
        Mortgage Loan described below, for the reason indicated.

       

      Mortgagor’s
        Name, Address & Zip Code:

       

      Mortgage
        Loan Number:

       

      Send
        Custodial File to:

       

      Delivery
        Method (check one)

       

      
        	
                ____1.

              	
                Regular
                  mail

              

      

       

      
        	
                ____2.

              	
                Overnight
                  courier (Tracking information:
                                     )

              

      

       

      If
        neither box 1 nor 2 is checked, regular mail shall be assumed.

       

      Reason
        for Requesting Documents
        (check
        one)

       

      
        	
                ____1.

              	
                Mortgage
                  Loan Paid in Full.
                  (The Servicer hereby certifies that all amounts received in connection
                  therewith have been credited to the Collection Account as provided
                  in the
                  Pooling and Servicing Agreement.)

              

      

       

      
        	
                ____2.

              	
                Mortgage
                  Loan Repurchase Pursuant to Subsection 2.03 of the Pooling and
                  Servicing
                  Agreement.
                  (The Servicer hereby certifies that the repurchase price has been
                  credited
                  to the Collection Account as provided in the Pooling and Servicing
                  Agreement.)

              

      

       

      
        
          
          

        

        
          EXHIBIT
            J-1

          
            

          

        

        
          
          

        

      

       

      
        	
                ____3.

              	
                Mortgage
                  Loan Liquidated by _________________. (The Servicer hereby certifies
                  that
                  all proceeds of foreclosure, insurance, condemnation or other liquidation
                  have been finally received and credited to the Collection Account
                  pursuant
                  to the Pooling and Servicing
                  Agreement.)

              

      

       

      
        	
                ____4.

              	
                Mortgage
                  Loan in Foreclosure.

              

      

       

      ____5.                   
        Other
        (explain).  

       

      If
        box 1,
        2 or 3 above is checked, and if all or part of the Custodial File was previously
        released to us, please release to us our previous request and receipt on
        file
        with you, as well as any additional documents in your possession relating
        to the
        specified Mortgage Loan.

       

      If
        box 4
        or 5 above is checked, upon our return of all of the above documents to you
        as
        the Trustee, please acknowledge your receipt by signing in the space indicated
        below, and returning this form if requested by us.

       

      [OPTION
        ONE MORTGAGE CORPORATION]

       

       

      By: 
        _______________________________________
Name:
Title:
Date:

       

      ACKNOWLEDGED
        AND AGREED:

       

      [WELLS
        FARGO BANK, N.A.]

       

       

      By: 
        __________________________________________
Name:
Title:
Date:

      
        
          
          

        

        
          EXHIBIT
            J-2

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        K

       

      CONTENTS
        OF EACH MORTGAGE FILE

       

      With
        respect to each Mortgage Loan, the Mortgage File shall include each of the
        following items, which shall be available for inspection by the Depositor
        and
        which shall be retained by the Servicer or delivered to and retained by the
        Custodian:

       

      (a) The
        documents or instruments set forth as items (i) to (ix) in Section 2.01(b)
        of the Pooling and Servicing Agreement.

       

      (b) Residential
        loan application.

       

      (c) Mortgage
        Loan closing statement.

       

      (d) Verification
        of employment and income.

       

      (e) Verification
        of acceptable evidence of source and amount of downpayment.

       

      (f) Credit
        report on Mortgagor.

       

      (g) Residential
        appraisal report.

       

      (h) Photograph
        of the Mortgaged Property.

       

      (i) Survey
        of
        the Mortgaged Property.

       

      (j) Copy
        of
        each instrument necessary to complete identification of any exception set
        forth
        in the exception schedule in the title policy, i.e., map or plat, restrictions,
        easements, sewer agreements, home association declarations, etc.

       

      (k) All
        required disclosure statements and statement of Mortgagor confirming receipt
        thereof.

       

      (l) If
        available, termite report, structural engineer’s report, water potability and
        septic certification.

       

      (m) Sales
        contract, if applicable.

       

      (n) Hazard
        insurance policy.

       

      (o) Tax
        receipts, insurance premium receipts, ledger sheets, payment history from
        date
        of origination, insurance claim files, correspondence, current and historical
        computerized data files, and all other processing, underwriting and closing
        papers and records which are customarily contained in a mortgage loan file
        and
        which are required to document the Mortgage Loan or to service the Mortgage
        Loan.

      
        
          
          

        

        
          EXHIBIT
            K-1

          
            

          

        

        
          
          

        

      

       

      (p) Amortization
        schedule, if available.

       

      (q) Payment
        history for Mortgage Loans that have been closed for more than 90
        days.

      

      
        
          
          

        

        
          EXHIBIT
            K-2

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        L

       

      FORM
        OF
        SARBANES-OXLEY CERTIFICATION TO BE

      PROVIDED
        BY MASTER SERVICER (OR OTHER

      CERTIFICATION
        PARTY) WITH FORM 10-K

       

      HSI
        Asset
        Securitization Corporation Trust 2007-OPT1

      Mortgage
        Pass-Through Certificates

      Series
        2007-OPT1

       

      This
        Certification is being made pursuant to Section 3.24 and Section 8.12 of
        the Pooling and Servicing Agreement dated as of January 1, 2007 (the
“Pooling
        and Servicing Agreement”)
        relating to the above-referenced Series, among HSI Asset Securitization
        Corporation, as depositor, Option One Mortgage Corporation, as servicer and
        originator, CitiMortgage, Inc., as master servicer, Citibank, N.A., as
        securities administrator, Wells Fargo Bank, N.A., as custodian, OfficeTiger
        Global Real Estate Services Inc., as Credit Risk Manager and Deutsche Bank
        National Trust Company, as trustee. Capitalized terms used but not defined
        herein shall have the meanings assigned in the Pooling and Servicing
        Agreement.

       

      1. I
        have
        reviewed this annual 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 HSI Asset Securitization Corporation Trust 2007-OPT1 (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 Servicer and based
        on
        my knowledge and the compliance review conducted in preparing the servicer
        compliance statement required in this report under Item 1123 of Regulation
        AB,
        and except as disclosed in the Exchange Act periodic reports, the Servicer
        has
        fulfilled its obligations under the Pooling and Servicing Agreement;
        and

       

      5. All
        of
        the reports on assessment of compliance with 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.

      
        
          
          

        

        
          EXHIBIT
            L-1

          
            

          

        

        
          
          

        

      

       

      In
        giving
        the certifications above, I have reasonably relied on information provided
        to me
        by the following parties: Citibank, N.A. and Option One Mortgage
        Corporation

      

       

      CITIMORTGAGE,
        INC.

      as
        Master
        Servicer

       

       

      By: 
        _________________________________
Name:
Title:
Date:

      

      

      
        
          
          

        

        
          EXHIBIT
            L-2

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        M

       

       

      FORM
        OF
        SERVICER (OR SERVICING FUNCTION

      PARTICIPANT)
        BACK-UP CERTIFICATION

      

      CitiMortgage,
        Inc., 

      4000
        Regent Blvd.

      Irving,
        TX 75063

      Attention:
        Master Servicing Division, Compliance Manager - HASCO 2007-OPT1

       

      
        	 	
                Re:

              	
                HSI
                  Asset Securitization Corporation Trust
                  2007-OPT1

              

      

       

      [_______],
        the [_______] of [_______] (the “Company”) hereby certifies to the Depositor,
        the Master Servicer, the Trustee and the Securities Administrator, and each
        of
        their officers, directors and affiliates that:

       

      (1) I
        have
        reviewed the Company’s report on assessment of compliance with the servicing
        criteria set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”),
        provided in accordance with Rules 13a-18 and 15d-18 under the Securities
        Exchange Act of 1934, as amended (the “Exchange Act”) and Item 1122 of
        Regulation AB (the “Servicing Assessment”), the registered public accounting
        firm’s attestation report provided in accordance with Rules 13a-18 and 15d-18
        under the Exchange Act and Section 1122(b) of Regulation AB (the “Attestation
        Report”), and all servicing reports, officer’s certificates and other
        information relating to the servicing of the Mortgage Loans by [____] during
        200[ ] that were delivered by [____] to any of the Depositor, the Master
        Servicer, the Securities Administrator, and the Trustee pursuant to the
        Agreement (collectively, the “Company Servicing Information”);

       

      (2) Based
        on
        my knowledge, the Company Servicing Information, taken as a whole, does not
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements made, in the light of the circumstances
        under
        which such statements were made, not misleading with respect to the period
        of
        time covered by the Company Servicing Information;

       

      (3) Based
        on
        my knowledge, all of the Company Servicing Information required to be provided
        by the Company under the Agreement has been provided to the Depositor, the
        Master Servicer, the Securities Administrator and the Trustee;

       

      (4) I
        am
        responsible for reviewing the activities performed by [____] as [____] under
        the
        Agreement, and based on my knowledge and the compliance review conducted
        in
        preparing the Servicing Assessment or the Attestation Report, the Company
        has
        fulfilled its obligations under the Agreement in all material respects;
        and

       

      (5) The
        Servicing Assessment and Attestation Report required to be provided by [____]
        and [by any Subservicer or Subcontractor] pursuant to the Agreement, have
        been
        provided to the Depositor, the Master Servicer and the Securities Administrator.
        Any material instances of noncompliance described in such reports have been
        disclosed to the Depositor, the Master Servicer and the Securities
        Administrator. Any material instance of noncompliance with the Servicing
        Criteria has been disclosed in such reports.

      
        
          
          

        

        
          EXHIBIT
            M-1

          
            

          

        

        
          
          

        

      

       

      Capitalized
        terms used but not defined herein have the meanings ascribed to them in the
        Pooling Servicing Agreement, dated as of January 1, 2007 (the “Pooling
        and Servicing Agreement”),
        by
        and among HSI Asset Securitization Corporation, as depositor, CitiMortgage,
        Inc., as master servicer, Option One Mortgage Corporation, as servicer and
        originator, Citibank, N.A., as securities administrator, Wells Fargo Bank,
        N.A.,
        as custodian, OfficeTiger Global Real Estate Services Inc., as Credit Risk
        Manager and Deutsche Bank National Trust Company, as trustee.

       

       

      [____]
as
        [____]

      By:  

      Name:

      Title:

      Date:

       

      

      

      
        
          
          

        

        
          EXHIBIT
            M-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
        N

      

      LIMITED
        POWER OF ATTORNEY

      

      KNOW
        ALL
        MEN BY THESE PRESENTS, that Deutsche Bank National Trust Company, a national
        banking association organized and existing under the laws of the United States,
        formerly known as Bankers Trust Company of California, N.A. and having its
        principal place of business at 1761 East St. Andrew Place, Santa Ana,
        California, 92705, as Trustee (the “Trustee”) pursuant to that Pooling and
        Servicing Agreement dated as of January 1, 2007 (the “Agreement”) by and among
        HSI Asset Securitization Corporation, as depositor, Option One Mortgage
        Corporation, as servicer (in such capacity, the “Servicer”) and originator,
        CitiMortgage, Inc., as master servicer, Citibank, N.A., as securities
        administrator, Wells Fargo Bank, N.A., as custodian, OfficeTiger Global Real
        Estate Services Inc., as credit risk manager, and the Trustee, hereby
        constitutes and appoints the Servicer, by and through the Servicer’s officers,
        the Trustee’s true and lawful Attorney-in-Fact, in the Trustee’s name, place and
        stead and for the Trustee’s benefit, in connection with all mortgage loans
        serviced by the Servicer pursuant to the Agreement solely for the purpose
        of
        performing such acts and executing such documents in the name of the Trustee
        necessary and appropriate to effectuate the following enumerated transactions
        in
        respect of any of the mortgages or deeds of trust (the “Mortgages” and the
“Deeds of Trust” respectively) and promissory notes secured thereby (the
        "Mortgage Notes”) for which the undersigned is acting as Trustee for various
        certificateholders (whether the undersigned is named therein as mortgagee
        or
        beneficiary or has become mortgagee by virtue of endorsement of the Mortgage
        Note secured by any such Mortgage or Deed of Trust) and for which [INSERT
        NAME OF SERVICER]
        is
        acting as the Servicer.

      

      This
        Appointment shall apply only to the following enumerated transactions and
        nothing herein or in the Agreement shall be construed to the
        contrary:

       

      
        	 	
                1.

              	
                The
                  modification or re-recording of a Mortgage or Deed of Trust, where
                  said
                  modification or re-recording is solely for the purpose of correcting
                  the
                  Mortgage or Deed of Trust to conform same to the original intent
                  of the
                  parties thereto or to correct title errors discovered after such
                  title
                  insurance was issued; provided that (i) said modification or
                  re-recording, in either instance, does not adversely affect the
                  lien of
                  the Mortgage or Deed of Trust as insured and (ii) otherwise conforms
                  to the provisions of the Agreement.

              

      

       

      
        	 	
                2.

              	
                The
                  subordination of the lien of a Mortgage or Deed of Trust to an
                  easement in
                  favor of a public utility company of a government agency or unit
                  with
                  powers of eminent domain; this section shall include, without limitation,
                  the execution of partial satisfactions/releases, partial reconveyances
                  or
                  the execution or requests to trustees to accomplish
                  same.

              

      

       

      
        	 	
                3.

              	
                The
                  conveyance of the properties to the mortgage insurer, or the closing
                  of
                  the title to the property to be acquired as real estate owned,
                  or
                  conveyance of title to real estate
                  owned.

              

      

       

      
        
          
          

        

        
          EXHIBIT
            N-1

          
            

          

        

        
          
          

        

      

       

      
        	 	
                4.

              	
                The
                  completion of loan assumption
                  agreements.

              

      

       

      
        	 	
                5.

              	
                The
                  full satisfaction/release of a Mortgage or Deed of Trust or full
                  conveyance upon payment and discharge of all sums secured thereby,
                  including, without limitation, cancellation of the related Mortgage
                  Note.

              

      

       

      
        	 	
                6.

              	
                The
                  assignment of any Mortgage or Deed of Trust and the related Mortgage
                  Note,
                  in connection with the repurchase of the mortgage loan secured
                  and
                  evidenced thereby.

              

      

       

      
        	 	
                7.

              	
                The
                  full assignment of a Mortgage or Deed of Trust upon payment and
                  discharge
                  of all sums secured thereby in conjunction with the refinancing
                  thereof,
                  including, without limitation, the assignment of the related Mortgage
                  Note.

              

      

       

      
        	 	
                8.

              	
                With
                  respect to a Mortgage or Deed of Trust, the foreclosure, the taking
                  of a
                  deed in lieu of foreclosure, or the completion of judicial or non-judicial
                  foreclosure or termination, cancellation or rescission of any such
                  foreclosure, including, without limitation, any and all of the
                  following
                  acts:

              

      

       

      
        	 	
                a.

              	
                the
                  substitution of trustee(s) serving under a Deed of Trust, in accordance
                  with state law and the Deed of
                  Trust;

              

      

      

      
        	 	
                b.

              	
                the
                  preparation and issuance of statements of breach or
                  non-performance;

              

      

      

      
        	 	
                c.

              	
                the
                  preparation and filing of notices of default and/or notices of
                  sale;

              

      

      

      
        	 	
                d.

              	
                the
                  cancellation/rescission of notices of default and/or notices of
                  sale;

              

      

      

      
        	 	
                e.

              	
                the
                  taking of deed in lieu of foreclosure;
                  and

              

      

      

      
        	 	
                f.

              	
                the
                  preparation and execution of such other documents and performance
                  of such
                  other actions as may be necessary under the terms of the Mortgage,
                  Deed of
                  Trust or state law to expeditiously complete said transactions
                  in
                  paragraphs 8.a. through 8.e. above.

              

      

       

      
        	 	
                9.

              	
                With
                  respect to the sale of property acquired through a foreclosure
                  or deed-in
                  lieu of foreclosure, including, without limitation, the execution
                  of the
                  following documentation:

              

      

       

      
        	 	
                a.

              	
                listing
                  agreements;

              

      

       

      
        	 	
                b.

              	
                purchase
                  and sale agreements;

              

      

       

      
        	 	
                c.

              	
                grant/warranty/quit
                  claim deeds or any other deed causing the transfer of title of
                  the
                  property to a party contracted to purchase
                  same;

              

      

       

      
        	 	
                d.

              	
                escrow
                  instructions; and

              

      

       

      
        
          
          

        

        
          EXHIBIT
            N-2

          
            

          

        

        
          
          

        

      

       

      
        	 	
                e.

              	
                any
                  and all documents necessary to effect the transfer of
                  property.

              

      

       

      
        	 	
                10.

              	
                The
                  modification or amendment of escrow agreements established for
                  repairs to
                  the mortgaged property or reserves for replacement of personal
                  property.

              

      

      

      The
        undersigned gives said Attorney-in-Fact full power and authority to execute
        such
        instruments and to do and perform all and every act and thing necessary and
        proper to carry into effect the power or powers granted by or under this
        Limited
        Power of Attorney as fully as the undersigned might or could do, and hereby
        does
        ratify and confirm to all that said Attorney-in-Fact shall be effective as
        of
        [INSERT
        CLOSING DATE].

      

      This
        appointment is to be construed and interpreted as a limited power of attorney.
        The enumeration of specific items, rights, acts or powers herein is not intended
        to, nor does it give rise to, and it is not to be construed as a general
        power
        of attorney.

      

      Nothing
        contained herein shall (i) limit in any manner any indemnification provided
        by the Servicer to the Trustee under the Agreement, or (ii) be construed to
        grant the Servicer the power to initiate or defend any suit, litigation or
        proceeding in the name of Deutsche Bank National Trust Company except as
        specifically provided for herein. If the Servicer receives any notice of
        suit,
        litigation or proceeding in the name of Deutsche Bank National Trust Company
        or
        Bankers Trust Company of California, N.A., then the Servicer shall promptly
        forward a copy of same to the Trustee.

      

      This
        limited power of attorney is not intended to extend the powers granted to
        the
        Servicer under the Agreement or to allow the Servicer to take any action
        with
        respect to Mortgages, Deeds of Trust or Mortgage Notes not authorized by
        the
        Agreement.

      

      The
        Servicer hereby agrees to indemnify and hold the Trustee and its directors,
        officers, employees and agents harmless from and against any and all
        liabilities, obligations, losses, damages, penalties, actions, judgments,
        suits,
        costs, expenses or disbursements of any kind or nature whatsoever incurred
        by
        reason or result of or in connection with the exercise by the Servicer of
        the
        powers granted to it hereunder. The foregoing indemnity shall survive the
        termination of this Limited Power of Attorney and the Agreement or the earlier
        resignation or removal of the Trustee under the Agreement.

      

      This
        Limited Power of Attorney is entered into and shall be governed by the laws
        of
        the State of New York, without regard to conflicts of law principles of such
        state.

      

      Third
        parties without actual notice may rely upon the exercise of the power granted
        under this Limited Power of Attorney; and may be satisfied that this Limited
        Power of Attorney shall continue in full force and effect and has not been
        revoked unless an instrument of revocation has been made in writing by the
        undersigned.

      

      
        
          
          

        

        
          EXHIBIT
            N-3

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, Deutsche Bank National Trust Company, as Trustee has caused
        

      its
        corporate seal to be hereto affixed and these presents to be signed and
        acknowledged in its name and behalf by a duly elected and authorized signatory
        this ___________ day of ____________.

      

      Deutsche
        Bank National Trust Company, as Trustee

       

      

      By:________________________________________

      Name:

      Title:

      

      Acknowledged
        and Agreed 

      [INSERT
        NAME OF THE SERVICER]

       

      

      BY:_________________________

       

      Name:

      Title:

      
        
          
          

        

        
          EXHIBIT
            N-4

          
            

          

        

        
          
          

        

      

      STATE
        OF
        CALIFORNIA

      COUNTY
        OF
        ____________

       

      

       

      

      On
        ________________, _____, before me, the undersigned, a Notary Public in and
        for
        said state, personally appeared ________________________________ of Deutsche
        Bank National Trust Company, as Trustee for HSI Asset Securitization Corporation
        Trust 2007-OPT1, personally known to me to be the person whose name is
        subscribed to the within instrument and acknowledged to me that he/she executed
        that same in his/her authorized capacity, and that by his/her signature on
        the
        instrument the entity upon behalf of which the person acted and executed
        the
        instrument.

      

      WITNESS
        my hand and official seal.

      (SEAL)

      

      ____________________________________

      Notary
        Public, State of California

      

      

      
        
          
          

        

        
          EXHIBIT
            N-5

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        O

       

      FORM
        OF SWAP AGREEMENT

      

      
        
          
          

        

        
          EXHIBIT
            O-1

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        P

       

      FORM
        OF CAP AGREEMENT

      
        
          
          

        

        
          EXHIBIT
            P-1

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        Q

       

      SECOND
        AMENDED AND RESTATED

       

      MASTER
        MORTGAGE LOAN PURCHASE AND SERVICING AGREEMENT

      

      

      
        
          
          

        

        
          EXHIBIT
            Q-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        R

      

      [RESERVED]

      

      

      

      
        
          
          

        

        
          EXHIBIT
            R-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        S

      

      SERVICING
        CRITERIA MATRIX

      

      The
        assessment of compliance to be delivered by each of the parties listed below,
        shall address, at a minimum, the criteria identified as below as “Applicable
        Servicing Criteria:”

       

      Where
        there are multiple checks for criteria the attesting party may identify in
        their
        management assertion that they are attesting only to the portion of the
        distribution chain they are responsible for in the related transaction
        agreements. Capitalized terms used herein but not defined herein shall have
        the
        meanings assigned to them in the Pooling and Servicing Agreement dated as
        of
        January 1, 2007 (the “Pooling and Servicing Agreement”), by
        and
        among HSI Asset Securitization Corporation, as depositor, Option One Mortgage
        Corporation, as servicer and originator, CitiMortgage, Inc., as master servicer,
        Citibank, N.A., as securities administrator, Wells Fargo Bank, N.A., as
        custodian, OfficeTiger Global Real Estate Services Inc., as credit risk manager,
        and Deutsche Bank National Trust Company, as trustee.

      

      

      
        	
                Reg
                  AB Reference

              	
                Servicing
                  Criteria

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              	
                Servicer

              	
                Custodian

              
	 	
                General Servicing
                   Considerations

              	 	 	 	 
	
                1122(d)(1)(i)

              	
                Policies
                  and procedures are instituted to monitor any performance or other
                  triggers
                  and events of default in accordance with the transaction
                  agreements.

              	
                X

              	 	
                X

              	 
	
                1122(d)(1)(ii)

              	
                If
                  any material servicing activities are outsourced to third parties,
                  policies and procedures are instituted to monitor the third party’s
                  performance and compliance with such servicing activities.

              	 	 	
                X

              	 
	
                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the pool assets are maintained. 

              	
                X

              	 	 	 
	
                1122(d)(1)(iv)

              	
                A
                  fidelity bond and errors and omissions policy is in effect on the
                  party
                  participating in the servicing function throughout the reporting
                  period in
                  the amount of coverage required by and otherwise in accordance
                  with the
                  terms of the transaction agreements. 

              	
                X

              	 	
                X

              	 
	 	
                Cash Collection and Administration

              	 	 	 	 
	
                1122(d)(2)(i)

              	
                Payments
                  on pool assets are deposited into the appropriate custodial bank
                  accounts
                  and related bank clearing accounts no more than two business days
                  following receipt, or such other number of days specified in the
                  transaction agreements. 

              	
                X

              	
                X

              	
                X

              	 
	
                1122(d)(2)(ii)

              	
                Disbursements
                  made via wire transfer on behalf of an obligor or to an investor
                  are made
                  only by authorized personnel. 

              	
                X

              	
                X

              	
                X

              	 

      

       

      
        
          
          

        

        
          EXHIBIT
            S-1

          
            

          

        

        
          
          

        

      

       

      
        	
                Reg
                  AB Reference

              	
                Servicing
                  Criteria

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              	
                Servicer

              	
                Custodian

              
	
                1122(d)(2)(iii)

              	
                Advances
                  of funds or guarantees regarding collections, cash flows or distributions,
                  and any interest or other fees charged for such advances, are made,
                  reviewed and approved as specified in the transaction agreements.
                  

              	
                X

              	 	
                X

              	 
	
                1122(d)(2)(iv)

              	
                The
                  related accounts for the transaction, such as cash reserve accounts
                  or
                  accounts established as a form of over collateralization, are separately
                  maintained (e.g., with respect to commingling of cash) as set forth
                  in the
                  transaction agreements. 

              	
                X

              	
                X

              	
                X

              	 
	
                1122(d)(2)(v)

              	
                Each
                  custodial account is maintained at a federally insured depository
                  institution as set forth in the transaction agreements. For purposes
                  of
                  this criterion, “federally insured depository institution” with respect to
                  a foreign financial institution means a foreign financial institution
                  that
                  meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                  Act.
                  

              	
                X

              	
                X

              	
                X

              	 
	
                1122(d)(2)(vi)

              	
                Unissued
                  checks are safeguarded so as to prevent unauthorized access.
                  

              	
                X

              	
                X

              	
                X

              	 
	
                1122(d)(2)(vii)
                  

              	
                Reconciliations
                  are prepared on a monthly basis for all asset-backed securities
                  related
                  bank accounts, including custodial accounts and related bank clearing
                  accounts. These reconciliations are (A) mathematically accurate;
                  (B)
                  prepared within 30 calendar days after the bank statement cutoff
                  date, or
                  such other number of days specified in the transaction agreements;
                  (C)
                  reviewed and approved by someone other than the person who prepared
                  the
                  reconciliation; and (D) contain explanations for reconciling items.
                  These
                  reconciling items are resolved within 90 calendar days of their
                  original
                  identification, or such other number of days specified in the transaction
                  agreements. 

              	
                X

              	
                X

              	
                X

              	 
	 	
                Investor
                  Remittances and Reporting

              	 	 	 	 
	
                1122(d)(3)(i)

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission requirements. Specifically, such reports (A) are prepared
                  in
                  accordance with timeframes and other terms set forth in the transaction
                  agreements; (B) provide information calculated in accordance with
                  the
                  terms specified in the transaction agreements; (C) are filed with
                  the
                  Commission as required by its rules and regulations; and (D) agree
                  with
                  investors’ or the trustee’s records as to the total unpaid principal
                  balance and number of pool assets serviced by the Servicer.
                  

              	 	
                X

              	
                X

              	 

      

       

      
        
          
          

        

        
          EXHIBIT
            S-2

          
            

          

        

        
          
          

        

      

       

      
        	
                Reg
                  AB Reference

              	
                Servicing
                  Criteria

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              	
                Servicer

              	
                Custodian

              
	
                1122(d)(3)(ii)

              	
                Amounts
                  due to investors are allocated and remitted in accordance with
                  timeframes,
                  distribution priority and other terms set forth in the transaction
                  agreements. 

              	 	
                X

              	
                X

              	 
	
                1122(d)(3)(iii)

              	
                Disbursements
                  made to an investor are posted within two business days to the
                  Servicer’s
                  investor records, or such other number of days specified in the
                  transaction agreements. 

              	 	
                X

              	
                X

              	 
	
                1122(d)(3)(iv)

              	
                Amounts
                  remitted to investors per the investor reports agree with cancelled
                  checks, or other form of payment, or custodial bank statements.
                  

              	 	
                X

              	
                X

              	 
	 	
                Pool
                  Asset Administration

              	 	 	 	 
	
                1122(d)(4)(i)
                  

              	
                Collateral
                  or security on pool assets is maintained as required by the transaction
                  agreements or related pool asset documents. 

              	 	 	
                X

              	
                X

              
	
                1122(d)(4)(ii)

              	
                Pool
                  assets and related documents are safeguarded as required by the
                  transaction agreements 

              	 	 	
                X

              	
                X

              
	
                1122(d)(4)(iii)

              	
                Any
                  additions, removals or substitutions to the asset pool are made,
                  reviewed
                  and approved in accordance with any conditions or requirements
                  in the
                  transaction agreements. 

              	 	 	
                X

              	 
	
                1122(d)(4)(iv)

              	
                Payments
                  on pool assets, including any payoffs, made in accordance with
                  the related
                  pool asset 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 pool asset documents. 

              	 	 	
                X

              	 
	
                1122(d)(4)(v)

              	
                The
                  Servicer’s records regarding the pool assets agree with the Servicer’s
                  records with respect to an obligor’s unpaid principal balance.
                  

              	 	 	
                X

              	 
	
                1122(d)(4)(vi)

              	
                Changes
                  with respect to the terms or status of an obligor's pool assets
                  (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. 

              	
                X

              	 	
                X

              	 

      

       

      
        
          
          

        

        
          EXHIBIT
            S-3

          
            

          

        

        
          
          

        

      

       

      
        	
                Reg
                  AB Reference

              	
                Servicing
                  Criteria

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              	
                Servicer

              	
                Custodian

              
	
                1122(d)(4)(vii)

              	
                Loss
                  mitigation or recovery actions (e.g., forbearance plans, modifications
                  and
                  deeds in lieu of foreclosure, foreclosures and repossessions, as
                  applicable) are initiated, conducted and concluded in accordance
                  with the
                  timeframes or other requirements established by the transaction
                  agreements. 

              	
                X

              	 	
                X

              	 
	
                1122(d)(4)(viii)

              	
                Records
                  documenting collection efforts are maintained during the period
                  a pool
                  asset 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 pool assets including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or unemployment).
                  

              	 	 	
                X

              	 
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for pool assets with variable
                  rates
                  are computed based on the related pool asset documents. 

              	 	 	
                X

              	 
	
                1122(d)(4)(x)

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts):
                  (A) such
                  funds are analyzed, in accordance with the obligor’s pool asset 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 pool asset documents
                  and state
                  laws; and (C) such funds are returned to the obligor within 30
                  calendar
                  days of full repayment of the related pool assets, or such other
                  number of
                  days specified in the transaction agreements. 

              	 	 	
                X

              	 
	
                1122(d)(4)(xi)

              	
                Payments
                  made on behalf of an obligor (such as tax or insurance payments)
                  are made
                  on or before the related penalty or expiration dates, as indicated
                  on the
                  appropriate bills or notices for such payments, provided that such
                  support
                  has been received by the servicer at least 30 calendar days prior
                  to these
                  dates, or such other number of days specified in the transaction
                  agreements. 

              	 	 	
                X

              	 
	
                1122(d)(4)(xii)

              	
                Any
                  late payment penalties in connection with any payment to be made
                  on behalf
                  of an obligor are paid from the Servicer’s funds and not charged to the
                  obligor, unless the late payment was due to the obligor’s error or
                  omission. 

              	 	 	
                X

              	 

      

       

      
        
          
          

        

        
          EXHIBIT
            S-4

          
            

          

        

        
          
          

        

      

       

      
        	
                Reg
                  AB Reference

              	
                Servicing
                  Criteria

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              	
                Servicer

              	
                Custodian

              
	
                1122(d)(4)(xiii)

              	
                Disbursements
                  made on behalf of an obligor are posted within two business days
                  to the
                  obligor’s records maintained by the servicer, or such other number of days
                  specified in the transaction agreements. 

              	 	 	
                X

              	 
	
                1122(d)(4)(xiv)
                  

              	
                Delinquencies,
                  charge-offs and uncollectible accounts are recognized and recorded
                  in
                  accordance with the transaction agreements. 

              	
                X

              	 	
                X

              	 
	
                1122(d)(4)(xv)

              	
                Any
                  external enhancement or other support, identified in Item 1114(a)(1)
                  through (3) or Item 1115 of Regulation AB, is maintained as set
                  forth in
                  the transaction agreements. 

              	 	
                X*

              	 	 

      

      ____________

      *
        Solely
        with respect to premiums paid on certificate insurance policies, if
        any.

      

      

      

      
        
          
          

        

        
          EXHIBIT
            S-5

          
            

          

        

        
          
          

        

      

      EXHIBIT
        T

      

      

      Trustee:
        Deutsche Bank National Trust Company

      

      Securities
        Administrator:
        Citibank, N.A.

      

      Master
        Servicer:
        CitiMortgage, Inc. 

      

      Derivative
        Counterparty:
        Wachovia Bank, National Association

      

      Servicer:
        Option
        One Mortgage Corporation

      

      Originator:
        Option
        One Mortgage Corporation

      

      Custodian:
        Wells
        Fargo Bank, N.A.

      

      Sponsor:
        HSBC
        Bank USA, National Association

      

      Credit
        Risk Manager:
        OfficeTiger Global Real Estate Services Inc.

      

      

      

      

      
        
          
          

        

        
          EXHIBIT
            T-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        U

      

      FORM
        OF ANNUAL COMPLIANCE CERTIFICATE

      

      Via
        Overnight Delivery

      

      [DATE]

      

      HSI
        Asset
        Securitization Corporation,

      452
        Fifth
        Avenue

      New
        York,
        New York 10018

      Attention:
        Head MBS Principal Finance

      

      Citibank,
        N.A.,

      388
        Greenwich, 14th
        Floor

      New
        York,
        New York 10013

      Attention:
        Structured Finance Agency and Trust - HSI Asset Securitization
        2007-OPT1

      

      
        	
                RE:

              	
                Annual
                  officer’s certificate delivered pursuant to Section 3.24 of that certain
                  Pooling Servicing Agreement, dated as of January 1, 2007 (the
                  “Pooling
                  and Servicing Agreement”),
                  among HSI Asset Securitization Corporation, as depositor (the
                  “Depositor”),
                  Option One Mortgage Corporation, as servicer (in such capacity,
                  the
                  “Servicer”)
                  and originator, CitiMortgage, Inc., as master servicer (the “Master
                  Servicer”),
                  Citibank, N.A., as securities administrator (the “Securities
                  Administrator”),
                  Wells Fargo Bank, N.A., as custodian, OfficeTiger Global Real Estate
                  Services Inc., as credit risk manager, and Deutsche Bank National
                  Trust
                  Company, as trustee (the
                  “Trustee”)

              

      

      

      [_______],
        the undersigned, a duly authorized [_______] of [Servicer] [Master Servicer]
        [Subservicer], does hereby certify the following for the [calendar
        year][identify other period] ending on December 31, 20[__]:

      

      
        	
                1.

              	
                A
                  review of the activities of the [Servicer] [Master Servicer] [Subservicer]
                  during the preceding calendar year (or portion thereof) and of
                  its
                  performance under the Agreement for such period has been made under
                  my
                  supervision.

              

      

      

      
        	
                2.

              	
                To
                  the best of my knowledge, based on such review, the [Servicer]
                  [Master
                  Servicer] [Subservicer] has fulfilled all of its obligations under
                  the
                  Agreement in all material respects throughout such year (or applicable
                  portion thereof), or, if there has been a failure to fulfill any
                  such
                  obligation in any material respect, I have specifically identified
                  to the
                  Depositor, Master Servicer and the Securities Administrator each
                  such
                  failure known to me and the nature and status thereof, including
                  the steps
                  being taken by the [Servicer] [Master Servicer] [Subservicer] to
                  remedy
                  such default.

              

      

      

      
        
          
          

        

        
          EXHIBIT
            U-1

          
            

          

        

        
          
          

        

      

      Certified
        By:

      

      

      

      ______________________________

      Name:

      Title:
        

      

      
        
          
          

        

        
          EXHIBIT
            U-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
        V

       

      ADDITIONAL
        FORM 10-D DISCLOSURE

      

      

      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE

              
	
                Item
                  on Form 10-D

              	
                Party
                  Responsible 

              
	
                Item
                  1: Distribution and Pool Performance Information

              	 
	
                Information
                  included in the [Monthly Statement]

              	
                Master
                  Servicer, Servicer

                Securities
                  Administrator

              
	
                Any
                  information required by 1121 which is NOT included on the [Monthly
                  Statement]

              	
                Depositor

              
	
                Item
                  2: Legal Proceedings

                 

                Any
                  legal proceeding pending against the following entities or their
                  respective property, that is material to Certificateholders, including
                  any
                  proceeding known to be contemplated by governmental
                  authorities:

              	 
	
                ▪
                  Issuing Entity (Trust Fund)

              	
                Servicer
                  and Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Seller
                  (if a party to the Pooling and Servicing Agreement) or
                  Depositor

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Servicer

              	
                Servicer

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                ▪
                  1110(b) Originator

              	
                Depositor

              
	
                ▪
                  Any 1108(a)(2) Servicer (other than the Master Servicer or Securities
                  Administrator)

              	
                Servicer

              
	
                ▪
                  Any other party contemplated by 1100(d)(1)

              	
                Depositor

              
	
                Item
                  3: Sale of Securities and Use of Proceeds

                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.

              	
                Depositor

              

      

       

      
        
          
          

        

        
          EXHIBIT
            V-1

          
            

          

        

        
          
          

        

      

       

      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE

              
	
                Item
                  on Form 10-D

              	
                Party
                  Responsible 

              
	
                 

                Item
                  4: Defaults Upon Senior Securities

                 

                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)

              	
                 

                Securities
                  Administrator

              
	
                Item
                  5: Submission of Matters to a Vote of Security
                  Holders

                 

                Information
                  from Item 4 of Part II of Form 10-Q

              	
                Securities
                  Administrator

              
	
                Item
                  6: Significant Obligors of Pool Assets

                 

                Item
                  1112(b) - 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.

              	 
	
                Item
                  7: Significant Enhancement Provider Information

                 

                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information*

              	 
	
                ▪
                  Determining applicable disclosure threshold

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                Item
                  1115(b) - Derivative Counterparty Financial
                  Information*

              	 
	
                ▪
                  Determining current maximum probable exposure

              	
                Depositor

              
	
                ▪
                  Determining current significance percentage

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                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
                  Items.

              	 

      

       

      
        
          
          

        

        
          EXHIBIT
            V-2

          
            

          

        

        
          
          

        

      

       

      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE

              
	
                Item
                  on Form 10-D

              	
                Party
                  Responsible 

              
	
                Item
                  8: Other Information

                 

                Disclose
                  any information required to be reported on Form 8-K during the
                  period
                  covered by the Form 10-D but not reported

              	
                 

                 

                 

                Any
                  party responsible for the applicable Form 8-K Disclosure
                  item

              
	
                Item
                  9: Exhibits

                Monthly
                  Statement to Certificateholders

              	
                 

                Securities
                  Administrator

              
	
                Exhibits
                  required by Item 601 of Regulation S-K, such as material
                  agreements

              	
                Depositor

              
	 	 

      

      

      
        
          
          

        

        
          EXHIBIT
            V-3

          
            

          

        

        
          
          

        

      

      EXHIBIT
        W

      

      ADDITIONAL
        FORM 10-K DISCLOSURE

      

      

      
        	
                ADDITIONAL
                  FORM 10-K DISCLOSURE

              
	
                Item
                  on Form 10-K

              	
                Party
                  Responsible 

              
	
                Item
                  1B: Unresolved Staff Comments

              	
                Depositor

              
	
                Item
                  9B: Other Information

                Disclose
                  any information required to be reported on Form 8-K during the
                  fourth
                  quarter covered by the Form 10-K but not reported

              	
                Any
                  party responsible for disclosure items on Form 8-K

              
	
                Item
                  15: Exhibits, Financial Statement 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-K if updated information
                  is required pursuant to the Item.

              	 
	
                Reg
                  AB Item 1114(b)(2): Credit Enhancement Provider Financial
                  Information

              	 
	
                ▪
                  Determining applicable disclosure threshold

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-K if updated information
                  is required pursuant to the Item.

              	 
	
                Reg
                  AB Item 1115(b): Derivative Counterparty Financial
                  Information

              	 
	
                ▪
                  Determining current maximum probable exposure

              	
                Depositor

              
	
                ▪
                  Determining current significance percentage

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-K if updated information
                  is required pursuant to the Item.

              	 

      

       

      
        
          
          

        

        
          EXHIBIT
            W-1

          
            

          

        

        
          
          

        

      

       

      
        	
                ADDITIONAL
                  FORM 10-K DISCLOSURE

              
	
                Item
                  on Form 10-K

              	
                Party
                  Responsible 

              
	
                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
                  proceeding known to be contemplated by governmental
                  authorities:

              	 
	
                ▪
                  Issuing Entity (Trust Fund)

              	
                Servicer 
                  and Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Seller
                  (if a party to the Pooling and Servicing Agreement) or
                  Depositor

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Servicer

              	
                Servicer

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                ▪
                  1110(b) Originator

              	
                Depositor

              
	
                ▪
                  Any 1108(a)(2) Servicer (other than the Servicer, Master Servicer
                  or
                  Securities Administrator)

              	
                Servicer

              
	
                ▪
                  Any other party contemplated by 1100(d)(1)

              	
                Depositor

              
	
                Reg
                  AB Item 1119: Affiliations and Relationships

              	 
	
                Whether
                  (a) the Sponsor (Seller), Depositor or Issuing Entity is an affiliate
                  of
                  the following parties, and (b) to the extent known and material,
                  any of
                  the following parties are affiliated with one another:

              	
                Depositor
                  as to (a) 

                Sponsor/Seller
                  as to (a)

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Servicer

              	
                Servicer

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Servicer

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivative Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              
	
                Whether
                  there are any “outside the ordinary course business arrangements” other
                  than would be obtained in 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:

              	
                Depositor
                  as to (a) 

                Sponsor/Seller
                  as to (a)

              

      

       

      
        
          
          

        

        
          EXHIBIT
            W-2

          
            

          

        

        
          
          

        

      

       

      
        	
                ADDITIONAL
                  FORM 10-K DISCLOSURE

              
	
                Item
                  on Form 10-K

              	
                Party
                  Responsible 

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Servicer

              	
                Servicer

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivative Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              
	
                Whether
                  there are any specific relationships involving the transaction
                  or the pool
                  assets 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:

              	
                Depositor
                  as to (a) 

                Sponsor/Seller
                  as to (a)

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Servicer

              	
                Servicer

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Servicer

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivate Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              

      

      

      

      
        
          
          

        

        
          EXHIBIT
            W-3

          
            

          

        

        
          
          

        

      

      EXHIBIT
        X

      

      FORM
        8-K DISCLOSURE INFORMATION

      

      

      
        	
                FORM
                  8-K DISCLOSURE INFORMATION

              
	
                Item
                  on Form 8-K

              	
                Party
                  Responsible 

              
	
                Item
                  1.01- Entry into a Material Definitive 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

              	
                All
                  parties other than the Trustee

              
	
                Item
                  1.02- Termination of a Material 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.

              	
                All
                  parties other than the Trustee

              
	
                Item
                  1.03- Bankruptcy or Receivership

                 

                Disclosure
                  is required regarding the bankruptcy or receivership, with respect
                  to any
                  of the following: 

              	
                Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Depositor/Sponsor
                  (Seller)

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Affiliated Servicer

              	
                Servicer

              
	
                ▪
                  Other Servicer servicing 20% or more of the pool assets at the
                  time of the
                  report

              	
                Servicer

              
	
                ▪
                  Other material servicers

              	
                Servicer

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              

      

       

      
        
          
          

        

        
          EXHIBIT
            X-1

          
            

          

        

        
          
          

        

      

       

      
        	
                FORM
                  8-K DISCLOSURE INFORMATION

              
	
                Item
                  on Form 8-K

              	
                Party
                  Responsible 

              
	
                ▪
                  Significant Obligor

              	
                Depositor

              
	
                ▪
                  Credit Enhancer (10% or more)

              	
                Depositor

              
	
                ▪
                  Derivative Counterparty

              	
                Depositor

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                Item
                  2.04- Triggering Events that Accelerate or Increase a Direct Financial
                  Obligation or an Obligation under an Off-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.

              	
                Depositor

              
	
                Item
                  3.03- Material Modification to Rights of Security
                  Holders

                 

                Disclosure
                  is required of any material modification to documents defining
                  the rights
                  of Certificateholders, including the Pooling and Servicing
                  Agreement.

              	
                Depositor

              
	
                Item
                  5.03- Amendments of Articles of Incorporation or Bylaws; Change
                  of Fiscal
                  Year

                Disclosure
                  is required of any amendment “to the governing documents of the issuing
                  entity”.

              	
                Depositor

              
	
                Item
                  6.01- ABS Informational and Computational
                  Material

              	
                Depositor

              
	
                Item
                  6.02- Change of Servicer or Securities Administrator

                 

                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.

              	
                Master
                  Servicer/Depositor/

                Servicer

              
	
                Reg
                  AB disclosure about any new servicer or master servicer is also
                  required.

              	
                Servicer/new
                  Master Servicer/Depositor

              
	
                Reg
                  AB disclosure about any new Trustee is also required.

              	
                Trustee

              

      

       

      
        
          
          

        

        
          EXHIBIT
            X-2

          
            

          

        

        
          
          

        

      

       

      
        	
                FORM
                  8-K DISCLOSURE INFORMATION

              
	
                Item
                  on Form 8-K

              	
                Party
                  Responsible 

              
	
                Item
                  6.03- Change in Credit Enhancement 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.
                  

              	
                Depositor

              
	
                Reg
                  AB disclosure about any new enhancement provider is also
                  required.

              	
                Depositor

              
	
                Item
                  6.04- Failure to Make a Required Distribution

              	
                Securities
                  Administrator

              
	
                Item
                  6.05- Securities Act Updating 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.

              	
                Depositor

              
	
                If
                  there are any new servicers or originators required to be disclosed
                  under
                  Regulation AB as a result of the foregoing, provide the information
                  called
                  for in Items 1108 and 1110 respectively.

              	
                Depositor

              
	
                Item
                  7.01- Reg FD Disclosure

              	
                All
                  parties other than the Trustee

              
	
                Item
                  8.01- Other Events

                 

                Any
                  event, with respect to which information is not otherwise called
                  for in
                  Form 8-K, that the registrant deems of importance to
                  certificateholders.

              	
                Depositor

              
	
                Item
                  9.01- Financial Statements and Exhibits

              	
                Responsible
                  party for reporting/disclosing the financial statement or
                  exhibit

              

      

      (1)
        This
        information is provided pursuant to the applicable Servicing
        Agreement.

      

      

      
        
          
          

        

        
          EXHIBIT
            X-3

          
            

          

        

        
          
          

        

      

      EXHIBIT
        Y

      

      ADDITIONAL
        DISCLOSURE NOTIFICATION

       

      **SEND
        TO CITIBANK VIA FAX TO (212) 816-5527 AND VIA EMAIL TO JENNIFER.MCCOURT@CITIGROUP.COM
        AND VIA OVERNIGHT MAIL TO THE ADDRESS
        IMMEDIATELY BELOW. SEND TO THE DEPOSITOR AT THE ADDRESS
        BELOW**

      

       

      Citibank,
        N.A.,

       
as
        Securities Administrator

      388
        Greenwich, 14th
        Floor

      New
        York,
        New York 10013

      Attention:
        Structured Finance Agency and Trust - HSI Asset Securitization
        2007-OPT1

      Fax:
        (212) 816-5527

      E-mail:
        jennifer.mccourt@citigroup.com

       

      HSI
        Asset
        Securitization Corporation

      452
        Fifth
        Avenue

      New
        York,
        New York 10018

      Attention:
        Head MBS Principal Finance

      

      Attn:
        Corporate Trust Services - [DEAL NAME]-SEC REPORT PROCESSING

       

      RE:
        **Additional Form [ ] Disclosure**Required

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section [ ] of the Pooling and Servicing Agreement, dated
        as of
        [ ] [ ], 2007, 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 [ ].

       

      Description
        of Additional Form [ ] Disclosure:

      

       

      List
        of
        Any Attachments hereto to be included in the Additional Form [ ]
        Disclosure:

       

       

      Any
        inquiries related to this notification should be directed to [ ], phone number:
        [ ]; email address: [ ].

       

      
        
          
          

        

        
          EXHIBIT
            Y-1

          
            

          

        

        
          
          

        

      

       

       

      

       

      [NAME
        OF
        PARTY]

      as
        [role]

      

       

      By: 
        ___________________________
Name:
Title: 

       

       

       

       

      
        
          
          

        

        
          EXHIBIT
            Y-2EXECUTION
      COPY

    
 

    STANWICH
      ASSET ACCEPTANCE COMPANY, L.L.C.

     

    Depositor

     

     

    RESIDENTIAL
      FUNDING COMPANY, LLC,

     

    Servicer

     

     

    and

     

     

    WELLS
      FARGO BANK N.A.,

     

    Trustee

     

     

    POOLING
      AND SERVICING AGREEMENT

    Dated
      as
      of January 1, 2007

     

     

    Carrington
      Mortgage Loan Trust, Series 2007-RFC1 

    Asset-Backed
      Pass-Through Certificates

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    
      	 	 	Page 
	
              ARTICLE
                I

            	
              DEFINITIONS

            	
              4

            
	
              SECTION
                1.01

            	
              Defined
                Terms

            	
              4

            
	
              SECTION
                1.02

            	
              Allocation
                of Certain Interest Shortfalls

            	
              53

            
	
              ARTICLE
                II

            	
              CONVEYANCE
                OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

            	
              53

            
	
              SECTION
                2.01

            	
              Conveyance
                of the Mortgage Loans

            	
              53

            
	
              SECTION
                2.02

            	
              Acceptance
                of REMIC I by Trustee

            	
              56

            
	
              SECTION
                2.03

            	
              Repurchase
                or Substitution of Mortgage Loans by RFC and the Seller

            	
              57

            
	
              SECTION
                2.04

            	
              [Reserved]

            	
              60

            
	
              SECTION
                2.05

            	
              Representations,
                Warranties and Covenants of the Servicer

            	
              60

            
	
              SECTION
                2.06

            	
              Issuance
                of the REMIC I Regular Interests and the Class R-I
                Interest

            	
              63

            
	
              SECTION
                2.07

            	
              Conveyance
                of the REMIC I Regular Interests; Acceptance of REMIC II by the
                Trustee

            	
              63

            
	
              SECTION
                2.08

            	
              Issuance
                of Class R Certificates

            	
              63

            
	
              ARTICLE
                III

            	
              ADMINISTRATION
                AND SERVICING OF THE MORTGAGE LOANS

            	
              64

            
	
              SECTION
                3.01

            	
              Servicer
                to Act as Servicer

            	
              64

            
	
              SECTION
                3.02

            	
              Sub-Servicing
                Agreements Between Servicer and Sub-Servicers

            	
              66

            
	
              SECTION
                3.03

            	
              Successor
                Sub-Servicers

            	
              67

            
	
              SECTION
                3.04

            	
              Liability
                of the Servicer

            	
              67

            
	
              SECTION
                3.05

            	
              No
                Contractual Relationship Between Sub-Servicers, the Trustee or the
                Certificateholders

            	
              68

            
	
              SECTION
                3.06

            	
              Assumption
                or Termination of Sub-Servicing Agreements by the Trustee

            	
              68

            
	
              SECTION
                3.07

            	
              Collection
                of Certain Mortgage Loan Payments

            	
              68

            
	
              SECTION
                3.08

            	
              Sub-Servicing
                Accounts

            	
              69

            
	
              SECTION
                3.09

            	
              Collection
                of Taxes, Assessments and Similar Items; Servicing
                Accounts

            	
              70

            
	
              SECTION
                3.10

            	
              Custodial
                Account and Certificate Account

            	
              71

            
	
              SECTION
                3.11

            	
              Withdrawals
                from the Custodial Account and Certificate Account

            	
              73

            

    

     

     

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

    

      TABLE
        OF CONTENTS

      (continued)

      Page

    

    
      	
              SECTION
                3.12

            	
              Investment
                of Funds in the Custodial Account and the Certificate
                Account

            	
              75

            
	
              SECTION
                3.13

            	
              [Reserved]

            	
              77

            
	
              SECTION
                3.14

            	
              Maintenance
                of Hazard Insurance and Errors and Omissions and Fidelity
                Coverage

            	
              77

            
	
              SECTION
                3.15

            	
              Enforcement
                of Due-On-Sale Clauses; Assumption Agreements

            	
              78

            
	
              SECTION
                3.16

            	
              Realization
                Upon Defaulted Mortgage Loans

            	
              79

            
	
              SECTION
                3.17

            	
              Trustee
                to Cooperate; Release of Mortgage Files

            	
              81

            
	
              SECTION
                3.18

            	
              Servicing
                Compensation

            	
              83

            
	
              SECTION
                3.19

            	
              Reports
                to the Trustee and Others; Custodial Account Statements

            	
              83

            
	
              SECTION
                3.20

            	
              [Reserved]

            	
              83

            
	
              SECTION
                3.21

            	
              [Reserved]

            	
              83

            
	
              SECTION
                3.22

            	
              Access
                to Certain Documentation

            	
              83

            
	
              SECTION
                3.23

            	
              Title,
                Management and Disposition of REO Property

            	
              84

            
	
              SECTION
                3.24

            	
              Obligations
                of the Servicer in Respect of Prepayment Interest
                Shortfalls

            	
              87

            
	
              SECTION
                3.25

            	
              Obligations
                of the Servicer in Respect of Mortgage Rates and Monthly
                Payments

            	
              87

            
	
              SECTION
                3.26

            	
              Advance
                Facility

            	
              87

            
	
              SECTION
                3.27

            	
              Solicitations

            	
              88

            
	
              ARTICLE
                IV

            	
              PAYMENTS
                TO CERTIFICATEHOLDERS

            	
              89

            
	
              SECTION
                4.01

            	
              Distributions

            	
              89

            
	
              SECTION
                4.02

            	
              Statements
                to Certificateholders

            	
              95

            
	
              SECTION
                4.03

            	
              Remittance
                Reports; Advances

            	
              99

            
	
              SECTION
                4.04

            	
              Allocation
                of Realized Losses

            	
              100

            
	
              SECTION
                4.05

            	
              Compliance
                with Withholding Requirements

            	
              102

            
	
              SECTION
                4.06

            	
              Exchange
                Commission; Additional Information

            	
              103

            
	
              SECTION
                4.07

            	
              The
                Swap Agreement

            	
              107

            
	
              SECTION
                4.08

            	
              Tax
                Treatment of Swap Payments and Swap Termination Payments

            	
              110

            

    

     

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

    

      TABLE
        OF CONTENTS

      (continued)

      Page

    

    
      	
              ARTICLE
                V

            	
              THE
                CERTIFICATES

            	
              110

            
	
              SECTION
                5.01

            	
              The
                Certificates

            	
              110

            
	
              SECTION
                5.02

            	
              Registration
                of Transfer and Exchange of Certificates

            	
              112

            
	
              SECTION
                5.03

            	
              Mutilated,
                Destroyed, Lost or Stolen Certificates

            	
              118

            
	
              SECTION
                5.04

            	
              Persons
                Deemed Owners

            	
              119

            
	
              SECTION
                5.05

            	
              Certain
                Available Information

            	
              119

            
	
              ARTICLE
                VI

            	
              THE
                DEPOSITOR AND THE SERVICER

            	
              120

            
	
              SECTION
                6.01

            	
              Respective
                Liabilities of the Depositor and the Servicer

            	
              120

            
	
              SECTION
                6.02

            	
              Merger
                or Consolidation of the Depositor or the Servicer

            	
              120

            
	
              SECTION
                6.03

            	
              Limitation
                on Liability of the Depositor, the Servicer and Others

            	
              120

            
	
              SECTION
                6.04

            	
              Limitation
                on Resignation of the Servicer

            	
              121

            
	
              SECTION
                6.05

            	
              Rights
                of the Depositor in Respect of the Servicer

            	
              122

            
	
              ARTICLE
                VII

            	
              DEFAULT

            	
              123

            
	
              SECTION
                7.01

            	
              Servicer
                Events of Default

            	
              123

            
	
              SECTION
                7.02

            	
              Trustee
                to Act; Appointment of Successor

            	
              125

            
	
              SECTION
                7.03

            	
              Notification
                to Certificateholders

            	
              126

            
	
              SECTION
                7.04

            	
              Waiver
                of Servicer Events of Default

            	
              126

            
	
              ARTICLE
                VIII

            	
              CONCERNING
                THE TRUSTEE

            	
              126

            
	
              SECTION
                8.01

            	
              Duties
                of Trustee

            	
              126

            
	
              SECTION
                8.02

            	
              Certain
                Matters Affecting the Trustee

            	
              128

            
	
              SECTION
                8.03

            	
              Trustee
                Not Liable for Certificates or Mortgage Loans

            	
              129

            
	
              SECTION
                8.04

            	
              Trustee
                May Own Certificates

            	
              129

            
	
              SECTION
                8.05

            	
              Trustee’s
                Fees and Expenses

            	
              130

            
	
              SECTION
                8.06

            	
              Eligibility
                Requirements for Trustee

            	
              130

            
	
              SECTION
                8.07

            	
              Resignation
                and Removal of the Trustee

            	
              131

            
	
              SECTION
                8.08

            	
              Successor
                Trustee

            	
              131

            
	
              SECTION
                8.09

            	
              Merger
                or Consolidation of Trustee

            	
              132

            
	
              SECTION
                8.10

            	
              Appointment
                of Co-Trustee or Separate Trustee

            	
              132

            
	
              SECTION
                8.11

            	
              Trustee
                to Execute Swap Agreement

            	
              133

            

    

     

    
       

      
        
          
          

        

        
          -iii-

          
            

          

        

        
          
          

        

      

      

        TABLE
          OF CONTENTS

        (continued)

        Page

      

    

    
      	
              SECTION
                8.12

            	
              Appointment
                of Office or Agency

            	
              133

            
	
              SECTION
                8.13

            	
              Representations
                and Warranties of the Trustee

            	
              133

            
	
              ARTICLE
                IX

            	
              TERMINATION

            	
              134

            
	
              SECTION
                9.01

            	
              Termination
                Upon Repurchase or Liquidation of All Mortgage Loans

            	
              134

            
	
              SECTION
                9.02

            	
              Additional
                Termination Requirements

            	
              136

            
	
              ARTICLE
                X

            	
              REMIC
                PROVISIONS

            	
              137

            
	
              SECTION
                10.01

            	
              REMIC
                Administration

            	
              137

            
	
              SECTION
                10.02

            	
              Prohibited
                Transactions and Activities

            	
              139

            
	
              SECTION
                10.03

            	
              Servicer
                and Trustee Indemnification

            	
              140

            
	
              ARTICLE
                XI

            	
              TRUSTEE
                COMPLIANCE WITH REGULATION AB

            	
              140

            
	
              SECTION
                11.01

            	
              Intent
                of the Parties; Reasonableness

            	
              140

            
	
              SECTION
                11.02

            	
              Additional
                Representations and Warranties of the Trustee

            	
              140

            
	
              SECTION
                11.03

            	
              Information
                to Be Provided by the Trustee

            	
              141

            
	
              SECTION
                11.04

            	
              Report
                on Assessment of Compliance and Attestation

            	
              142

            
	
              SECTION
                11.05

            	
              Indemnification;
                Remedies

            	
              142

            
	
              ARTICLE
                XII

            	
              SERVICER
                COMPLIANCE WITH REGULATION AB

            	
              143

            
	
              SECTION
                12.01

            	
              Intent
                of the Parties; Reasonableness

            	
              143

            
	
              SECTION
                12.02

            	
              Additional
                Representations and Warranties of the Servicer

            	
              143

            
	
              SECTION
                12.03

            	
              Information
                to Be Provided by the Servicer

            	
              144

            
	
              SECTION
                12.04

            	
              Servicer
                Compliance Statement

            	
              148

            
	
              SECTION
                12.05

            	
              Report
                on Assessment of Compliance and Attestation

            	
              149

            
	
              SECTION
                12.06

            	
              Use
                of Sub-Servicers and Subcontractors

            	
              150

            
	
              SECTION
                12.07

            	
              Indemnification;
                Remedies

            	
              151

            
	
              ARTICLE
                XIII

            	
              MISCELLANEOUS
                PROVISIONS

            	
              153

            
	
              SECTION
                13.01

            	
              Amendment

            	
              153

            
	
              SECTION
                13.02

            	
              Recordation
                of Agreement; Counterparts

            	
              155

            
	
              SECTION
                13.03

            	
              Limitation
                on Rights of Certificateholders

            	
              155

            
	
              SECTION
                13.04

            	
              Governing
                Law

            	
              156

            
	
              SECTION
                13.05

            	
              Notices

            	
              156

            

    

    
       

      
        
          
          

        

        
          -iv-

          
            

          

        

        
          
          

        

      

      

        TABLE
          OF CONTENTS

        (continued)

        Page

      

    

    
      	
              SECTION
                13.06

            	
              Severability
                of Provisions

            	
              156

            
	
              SECTION
                13.07

            	
              Notice
                to Rating Agencies

            	
              157

            
	
              SECTION
                13.08

            	
              Article
                and Section References

            	
              157

            
	
              SECTION
                13.09

            	
              Grant
                of Security Interest

            	
              157

            
	
              SECTION
                13.10

            	
              Intention
                of Parties

            	
              158

            
	
              SECTION
                13.11

            	
              Assignment

            	
              159

            
	
              SECTION
                13.12

            	
              Inspection
                and Audit Rights

            	
              159

            
	
              SECTION
                13.13

            	
              Certificates
                Nonassessable and Fully Paid

            	
              159

            
	
              SECTION
                13.14

            	
              Third-Party
                Beneficiaries

            	
              159

            
	
              SECTION
                13.15

            	
              Perfection
                Representations

            	
              159

            
	
              SECTION
                13.16

            	
              Notice
                to Holder of Class CE Certificate

            	
              159

            
	
              ARTICLE
                XIV

            	
              RIGHTS
                OF THE CLASS CE CERTIFICATEHOLDER

            	
              160

            
	
              SECTION
                14.01

            	
              Reports
                and Notices

            	
              160

            
	
              SECTION
                14.02

            	
              Class
                CE Certificateholder’s Directions With Respect to Defaulted Mortgage
                Loans

            	
              162

            

    

    

    
      
        
        

      

      
        -v-

        
          

        

      

      
        
        

      

    

    
      	
              Exhibits

            	 
	 	 
	
              Exhibit
                A-1

            	
              Form
                of Class A-1 Certificates

            
	
              Exhibit
                A-2

            	
              Form
                of Class A-2 Certificates

            
	
              Exhibit
                A-3

            	
              Form
                of Class A-3 Certificates

            
	
              Exhibit
                A-4

            	
              Form
                of Class A-4 Certificates

            
	
              Exhibit
                A-5

            	
              Form
                of Class M-1 Certificates

            
	
              Exhibit
                A-6

            	
              Form
                of Class M-2 Certificates

            
	
              Exhibit
                A-7

            	
              Form
                of Class M-3 Certificates

            
	
              Exhibit
                A-8

            	
              Form
                of Class M-4 Certificates

            
	
              Exhibit
                A-9

            	
              Form
                of Class M-5 Certificates

            
	
              Exhibit
                A-10

            	
              Form
                of Class M-6 Certificates

            
	
              Exhibit
                A-11

            	
              Form
                of Class M-7 Certificates

            
	
              Exhibit
                A-12

            	
              Form
                of Class M-8 Certificates

            
	
              Exhibit
                A-13

            	
              Form
                of Class M-9 Certificates

            
	
              Exhibit
                A-14

            	
              Form
                of Class M-10 Certificates

            
	
              Exhibit
                A-15

            	
              Form
                of Class CE Certificate

            
	
              Exhibit
                A-16

            	
              Form
                of Class P Certificate

            
	
              Exhibit
                A-17

            	
              Form
                of Class R-I Certificate

            
	
              Exhibit
                A-18

            	
              Form
                of Class R-II Certificate

            
	
              Exhibit
                B

            	
              [Reserved]

            
	
              Exhibit
                C-1

            	
              Form
                of Trustee’s Initial Certification

            
	
              Exhibit
                C-2

            	
              Form
                of Trustee’s Final Certification

            
	
              Exhibit
                D

            	
              Form
                of Mortgage Loan Purchase Agreement

            
	
              Exhibit
                E

            	
              Request
                for Release

            
	
              Exhibit
                F-1

            	
              Form
                of Transferor Representation Letter and Form of Transferee Representation
                Letter in Connection with Transfer of the Private Certificates Pursuant
                to
                Rule 144A Under the 1933 Act

            
	
              Exhibit
                F-2

            	
              Form
                of Transfer Affidavit and Agreement and Form of Transferor Affidavit
                in
                Connection with Transfer of Residual Certificates

            
	
              Exhibit
                G

            	
              Form
                of Certification with respect to ERISA and the Code

            
	
              Exhibit
                H

            	
              Form
                of Lost Note Affidavit

            
	
              Exhibit
                I-1

            	
              Form
                of Servicer’s 10-K Certification

            
	
              Exhibit
                I-2

            	
              Form
                of Certification to be Provided to Servicer by the
                Trustee

            
	
              Exhibit
                J

            	
              Form
                Servicing Criteria to be Addressed in Assessment of Compliance
                

            
	
              Exhibit
                K-1

            	
              Form
                of Swap Agreement

            
	
              Exhibit
                K-2

            	
              Schedule
                of Swap Agreement Notional Balances

            
	
              Exhibit
                L

            	
              Form
                of Report Pursuant to Section 13.01

            
	 	 
	
              Schedule
                1

            	
              Mortgage
                Loan Schedule

            
	
              Schedule
                2

            	
              Prepayment
                Charge Schedule

            
	
              Schedule
                3

            	
              Perfection
                Representations, Warranties and Covenants

            
	
              Schedule
                4

            	
              Standard
                File Layout Data Elements

            

    

    

    
      
        
        

      

      
        -vi-

        
          

        

      

      
        
        

      

    

    This
      Pooling and Servicing Agreement, is dated and effective as of January 1, 2007,
      among STANWICH ASSET ACCEPTANCE COMPANY, L.L.C. as Depositor, RESIDENTIAL
      FUNDING COMPANY, LLC as Servicer and WELLS FARGO BANK, N.A. as
      Trustee.

     

    PRELIMINARY
      STATEMENT:

     

    The
      Depositor intends to sell pass-through certificates to be issued hereunder
      in
      multiple classes, which in the aggregate will evidence the entire beneficial
      ownership interest in each REMIC (as defined herein) created hereunder. The
      Trust Fund (as defined herein) will consist of a segregated pool of assets
      comprised of the Mortgage Loans and certain other related assets subject to
      this
      Agreement.

     

    REMIC
      I

     

    As
      provided herein, the Trustee will elect to treat the segregated pool of assets
      consisting of the Mortgage Loans and certain other related assets (other than
      any Servicer Prepayment Charge Payment Amounts, the Swap Account and the Swap
      Agreement) subject to this Agreement as a REMIC for federal income tax purposes,
      and such segregated pool of assets will be designated as “REMIC I.” The Class
      R-I Interest evidences the sole class of “residual interests” in REMIC I for
      purposes of the REMIC Provisions (as defined herein). The following table
      irrevocably sets forth the designation, the REMIC I Remittance Rate, the initial
      Uncertificated Balance and, for purposes of satisfying Treasury regulation
      Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for each of the
      REMIC I Regular Interests (as defined herein). None of the REMIC I Regular
      Interests will be certificated.

     

    
      	
              Designation

            	 	
              REMIC
                I

              Remittance
                Rate

            	 	
              Initial

              Uncertificated
                Balance

            	 	
              Latest
                Possible

              Maturity
                Date(1)

            	 
	
              I-LTAA

            	 	 	
              Variable
                (2)

            	
               

            	
               

            	
              $856,904,888.12

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTA1

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $3,739,030

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTA2

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $1,230,890

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTA3

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $1,073,980

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTA4

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $422,240

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTM1

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $494,030

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTM2

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $410,960

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTM3

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $157,390

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTM4

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $227,340

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTM5

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $131,160

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTM6

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $118,040

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTM7

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $161,760

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTM8

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $69,950

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTM9

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $113,670

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTM10

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $104,930

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTZZ

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $9,032,485.88

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              I-LTP

            	
               

            	
               

            	
              Variable
                (2)

            	
               

            	
               

            	
              $100.00

            	
               

            	
               

            	
              December
                25, 2036

            	 

    

    _______________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                Distribution Date immediately following the maturity date for the
                Mortgage
                Loan with the latest maturity date has been designated as the “latest
                possible maturity date” for each REMIC I Regular
                Interest.

            

    

    
      	
              (2)

            	
              Calculated
                in accordance with the definition of “REMIC I Remittance Rate”
                herein.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    REMIC
      II

     

    As
      provided herein, the Trustee will elect to treat the segregated pool of assets
      consisting of the REMIC I Regular Interests as a REMIC for federal income tax
      purposes, and such segregated pool of assets will be designated as “REMIC II.”
The Class R-II Interest evidences the sole class of “residual interests” in
      REMIC II for purposes of the REMIC Provisions under federal income tax law.
      The
      following table irrevocably sets forth the designation, the Pass-Through Rate,
      the initial aggregate Certificate Principal Balance and, for purposes of
      satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible
      maturity date” for the indicated Classes of Certificates.

    

    
      	
              Designation

            	 	
              Pass-Through
                Rate

            	 	
              Initial
                Aggregate 
Certificate Principal Balance

            	 	
              Latest
                Possible 
Maturity Date(1)

            	 
	
              Class
                A-1(2)

            	
               

            	
               

            	
              Variable(2)

            	
               

            	
               

            	
              $373,903,000

            	
               

            	
               

            	
              February
                25, 2031

            	
               

            
	
              Class
                A-2(2)

            	
               

            	
               

            	
              Variable(2)

            	
               

            	
               

            	
              $123,089,000

            	
               

            	
               

            	
              October
                25, 2034

            	
               

            
	
              Class
                A-3(2)

            	
               

            	
               

            	
              Variable(2)

            	
               

            	
               

            	
              $107,398,000

            	
               

            	
               

            	
              September
                25, 2036

            	
               

            
	
              Class
                A-4(2)

            	
               

            	
               

            	
              Variable(2

            	
               

            	
               

            	
              $42,224,000

            	
               

            	
               

            	
              October
                25, 2036

            	
               

            
	
              Class
                M-1(2)

            	
               

            	
               

            	
              Variable(2)

            	
               

            	
               

            	
              $49,403,000

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              Class
                M-2(2)

            	
               

            	
               

            	
              Variable(2)

            	
               

            	
               

            	
              $41,096,000

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              Class
                M-3(2)

            	
               

            	
               

            	
              Variable(2)

            	
               

            	
               

            	
              $15,739,000

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              Class
                M-4(2)

            	
               

            	
               

            	
              Variable(2)

            	
               

            	
               

            	
              $22,734,000

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              Class
                M-5(2)

            	
               

            	
               

            	
              Variable(2)

            	
               

            	
               

            	
              $13,116,000

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              Class
                M-6(2)

            	
               

            	
               

            	
              Variable(2)

            	
               

            	
               

            	
              $11,804,000

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              Class
                M-7(2)

            	
               

            	
               

            	
              Variable(2)

            	
               

            	
               

            	
              $16,176,000

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              Class
                M-8(2)

            	
               

            	
               

            	
              Variable(2)

            	
               

            	
               

            	
              $6,995,000

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              Class
                M-9(2)

            	
               

            	
               

            	
              Variable(2)

            	
               

            	
               

            	
              $11,367,000

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              Class
                M-10(2)

            	
               

            	
               

            	
              Variable(2)

            	
               

            	
               

            	
              $10,493,000

            	
               

            	
               

            	
              December
                25, 2036

            	
               

            
	
              Class
                CE(3)

            	
               

            	
               

            	
              Variable(4)

            	
               

            	
               

            	
              $28,855,744

            	
               

            	
               

            	
              N/A

            	
               

            
	
              Class
                P

            	
               

            	
               

            	
              N/A(5)

            	
               

            	
               

            	
              $100.00

            	
               

            	
               

            	
              N/A

            	 

    

    _______________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                Distribution Date immediately following the maturity date for the
                Mortgage
                Loans with the latest maturity date has been designated as the “latest
                possible maturity date” for each Class of
                Certificates.

            

    

    
      	
              (2)

            	
              Calculated
                in accordance with the definition of “Pass-Through Rate” herein. The
                Class A and Class M Certificates represent ownership of REMIC II
                Regular Interests, together with certain rights to payments to be
                made
                from amounts received under the Swap Agreement which payments are
                treated
                for federal income tax purposes as being made outside of REMIC II
                by the
                holder of the Class CE Certificates, as the owner of the Swap
                Agreement.

            

    

    
      	
              (3)

            	
              The
                Class CE Certificates will be comprised of two REMIC II Regular Interests,
                a principal only regular interest designated REMIC II Regular Interest
                CE-PO and an interest only regular interest designated REMIC II Regular
                Interest CE-IO, each of which will be entitled to distributions as
                set
                forth herein.

            

    

    
      	
              (4)

            	
              The
                Class CE Certificates will accrue interest at its variable Pass-Through
                Rate on the Notional Amount of the Class CE-IO outstanding from time
                to
                time which notional amount shall equal the aggregate Uncertificated
                Balance of the REMIC I Regular Interests. The Class CE Certificates
                will
                not accrue interest on its Certificate Principal Balance. The rights
                of
                the Holder of the Class CE Certificates to payments from the Swap
                Agreement shall be outside and apart from its rights under the REMIC
                II
                Regular Interests CE-IO and CE-PO.

            

    

    
      	
              (5)

            	
              The
                Class P Certificates will not accrue
                interest.

            

    

     

    As
      of the
      Cut-off Date, the Mortgage Loans had an aggregate Stated Principal Balance
      equal
      to $874,392,844.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

     

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

     

    ARTICLE
      I

     

    DEFINITIONS

     

    SECTION
      1.01 Defined
      Terms.
      Whenever used in this Agreement, including, without limitation, in the
      Preliminary Statement hereto, the following words and phrases, unless the
      context otherwise requires, shall have the meanings specified in this Article.
      Unless otherwise specified, all calculations described herein shall be made
      on
      the basis of a 360-day year consisting of twelve 30-day months.

     

    “Accepted
      Servicing Practices”:
      The
      servicing standards set forth in Section
      3.01.

     

    “Accrued
      Certificate Interest”:
      With
      respect to any Class A Certificate, Mezzanine Certificate and the Class CE
      Certificates and each Distribution Date, interest accrued during the related
      Interest Accrual Period at the Pass-Through Rate for such Certificate for such
      Distribution Date on the Certificate Principal Balance, in the case of the
      Class
      A Certificates and the Mezzanine Certificates, or on the Notional Amount, in
      the
      case of the Class CE Certificates, of such Certificate immediately prior to
      such
      Distribution Date. The Class P Certificates are not entitled to distributions
      in
      respect of interest and, accordingly, will not accrue interest. All
      distributions of interest on the Class A Certificates and the Mezzanine
      Certificates will be calculated on the basis of a 360-day year and the actual
      number of days in the applicable Interest Accrual Period. All distributions
      of
      interest on the Class CE Certificates will be based on a 360-day year consisting
      of twelve 30-day months. Accrued Certificate Interest with respect to each
      Distribution Date, as to any Class A Certificate, Mezzanine Certificate or
      the
      Class CE Certificates, shall be reduced by an amount equal to the portion
      allocable to such Certificate pursuant to Section
      1.02
      hereof
      of the sum of (a) the aggregate Prepayment Interest Shortfall, if any, for
      such
      Distribution Date to the extent not covered by payments pursuant to Section
      3.24
      and (b)
      the aggregate amount of any Relief Act Interest Shortfall, if any, for such
      Distribution Date. In addition, Accrued Certificate Interest with respect to
      each Distribution Date, as to the Class CE Certificates, shall be reduced by
      an
      amount equal to the portion allocable to the Class CE Certificates of Realized
      Losses, if any, pursuant to Section
      4.04
      hereof.

     

    “Additional
      Form 10-D Disclosure”
has
      the
      meaning set forth in Section
      4.06(a).

     

    “Additional
      Form 10-K Disclosure”
has
      the
      meaning set forth in Section
      4.06(b).

     

    “Additional
      Servicer”
means
      (i) each affiliated servicer meeting the requirements of Item 1108(a)(2)(ii)
      of
      Regulation AB that services any of the Mortgage Loans, and (ii) each
      unaffiliated servicer meeting the requirements of Item 1108(a)(2)(iii) of
      Regulation AB (other than the Trustee), who services 10% or more of the Mortgage
      Loans.

     

    “Adjustable-Rate
      Mortgage Loan”:
      Each
      of the Mortgage Loans identified on the Mortgage Loan Schedule as having a
      Mortgage Rate that is subject to adjustment.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

     

    “Adjustment
      Date”:
      With
      respect to each Adjustable-Rate Mortgage Loan, the first day of the month in
      which the Mortgage Rate of such Mortgage Loan changes pursuant to the related
      Mortgage Note. The first Adjustment Date following the Cut-off Date as to each
      Adjustable-Rate Mortgage Loan is set forth in the Mortgage Loan
      Schedule.

     

    “Advance”:
      As to
      any Mortgage Loan or REO Property, any advance made by the Servicer in respect
      of any Distribution Date pursuant to Section
      4.03.

     

    “Advance
      Facility”:
      As
      defined in Section
      3.26(a).

     

    “Advance
      Facility Trustee”:
      As
      defined in Section
      3.26(b).

     

    “Advancing
      Person”:
      As
      defined in Section
      3.26(a)
      hereof.

     

    “Affected
      Party”:
      As
      defined in the Swap Agreement.

     

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

     

    “Agreement”:
      This
      Pooling and Servicing Agreement and all amendments hereof and supplements
      hereto.

     

    “Allocated
      Realized Loss Amount”:
      With
      respect to any Distribution Date and any Class of Class A Certificates or
      Mezzanine Certificates, an amount equal to (x) the sum of (i) any Realized
      Losses allocated to such Class of Certificates on such Distribution Date and
      (ii) the amount of any Allocated Realized Loss Amount for such Class of
      Certificates remaining unpaid from previous Distribution Dates minus
      (y) the
      amount of the increase in the related Certificate Principal Balance due to
      the
      receipt of Subsequent Recoveries as provided in Section
      4.01.

     

    “Assignment”:
      An
      assignment of Mortgage, notice of transfer or equivalent instrument, in
      recordable form (excepting therefrom, if applicable, the mortgage recordation
      information which has not been required pursuant to Section
      2.01
      hereof
      or returned by the applicable recorder’s office), which is sufficient under the
      laws of the jurisdiction wherein the related Mortgaged Property is located
      to
      reflect of record the sale of the Mortgage, which assignment, notice of transfer
      or equivalent instrument may be in the form of one or more blanket assignments
      covering Mortgages secured by Mortgaged Properties located in the same county,
      if permitted by law.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

     

    “Available
      Distribution Amount”:
      With
      respect to any Distribution Date, an amount equal to (1) the sum of (a) the
      aggregate of the amounts on deposit in the Custodial Account and Certificate
      Account as of the close of business on the related Determination Date, (b)
      the
      aggregate of any amounts received in respect of an REO Property withdrawn from
      any REO Account and deposited in the Certificate Account for such Distribution
      Date pursuant to Section
      3.23,
      (c) the
      aggregate of any amounts deposited in the Certificate Account by the Servicer
      in
      respect of Prepayment Interest Shortfalls for such Distribution Date pursuant
      to
Section
      3.24,
      (d) the
      aggregate of any Advances made by the Servicer for such Distribution Date
      pursuant to Section
      4.03
      and (e)
      the aggregate of any Advances made by the Trustee as successor Servicer or
      any
      other successor Servicer for such Distribution Date pursuant to Section
      7.02,
      reduced
      (to not less than zero), by (2) the portion of the amount described in
clause
      (1)(a)
      above
      that represents (i) Monthly Payments on the Mortgage Loans received from a
      Mortgagor on or prior to the Determination Date but due during any Due Period
      subsequent to the related Due Period, (ii) Principal Prepayments on the Mortgage
      Loans received after the related Prepayment Period (together with any interest
      payments received with such Principal Prepayments to the extent they represent
      the payment of interest accrued on the Mortgage Loans during a period subsequent
      to the related Prepayment Period) (other than Prepayment Charges), (iii)
      Liquidation Proceeds and Insurance Proceeds received in respect of the Mortgage
      Loans after the related Prepayment Period, (iv) amounts reimbursable or payable
      to the Depositor, the Servicer, the Trustee, the Custodian, the Seller or any
      Sub-Servicer pursuant to Section
      3.11,
      Section
      3.12,
      Section
      8.05
      or
      otherwise payable in respect of Extraordinary Trust Fund Expenses, (v) the
      Trustee Fee payable from the Certificate Account pursuant to Section
      8.05,
      (vi)
      amounts deposited in the Custodial Account or the Certificate Account in error,
      (vii) the amount of any Prepayment Charges collected by the Servicer in
      connection with the Principal Prepayment of any of the Mortgage Loans or any
      Servicer Prepayment Charge Payment Amount and (viii) any Net Swap Payment owed
      to the Swap Counterparty and Swap Termination Payments owed to the Swap
      Counterparty not due to a Swap Counterparty Trigger Event for such Distribution
      Date.

     

    “Bankruptcy
      Code”:
      The
      Bankruptcy Reform Act of 1978 (Title 11 of the United States Code), as
      amended.

     

    “Bankruptcy
      Loss”:
      With
      respect to any Mortgage Loan, a Realized Loss resulting from a Deficient
      Valuation or Debt Service Reduction.

     

    “Bloomberg”:
      As
      defined in Section
      4.02.

     

    “Book-Entry
      Certificate”:
      The
      Class A Certificates and the Mezzanine Certificates for so long as the
      Certificates of such Class shall be registered in the name of the Depository
      or
      its nominee.

     

    “Book-Entry
      Custodian”:
      The
      custodian appointed pursuant to Section
      5.01.

     

    “Business
      Day”:
      Any
      day other than (i) a Saturday or a Sunday or (ii) a day on which banking
      institutions in the State of California, the State of Minnesota, the State
      of
      Texas, the State of New York or any city in which the Corporate Trust
      office of the Trustee is located, are required or authorized by law or executive
      order to be closed.

     

    “Calendar
      Quarter”:
      A
      Calendar Quarter shall consist of one of the following time periods in any
      given
      year: January 1 through March 31, April 1 through June 30, July 1 though
      September 30, and October 1 through December 31.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

     

    “Cash-Out
      Refinancing”:
      A
      Refinanced Mortgage Loan the proceeds of which are more than a nominal amount
      in
      excess of the principal balance of any existing first mortgage or subordinate
      mortgage on the related Mortgaged Property and any closing costs related to
      such
      Refinance Mortgage Loan.

     

    “Certificate”:
      Any
      one of the Carrington Mortgage Loan Trust, Series 2007-RFC1 Asset-Backed
      Pass-Through Certificates, Class A-1, Class A-2, Class A-3, Class A-4, Class
      M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class
      M-8, Class M-9, Class M-10, Class CE, Class P and Class R issued under this
      Agreement.

     

    “Certificate
      Account”:
      The
      trust account or accounts created and maintained by the Trustee pursuant to
      Section
      3.10(b),
      which
      shall be entitled “Wells Fargo Bank, N.A., as Trustee, in trust for the
      registered holders of Carrington Mortgage Loan Trust, Series 2007-RFC1
      Asset-Backed Pass-Through Certificates.” The Certificate Account must be an
      Eligible Account.

     

    “Certificate
      Factor”:
      With
      respect to any Class of Regular Certificates as of any Distribution Date, a
      fraction, expressed as a decimal carried to six places, the numerator of which
      is the aggregate Certificate Principal Balance (or the Notional Amount, in
      the
      case of the Class CE Certificates) of such Class of Certificates on such
      Distribution Date (after giving effect to any distributions of principal and
      in
      the case of the Class A Certificates, the Mezzanine Certificates and the Class
      CE Certificates, the allocations of Realized Losses in reduction of the
      Certificate Principal Balance (or the Notional Amount, in the case of the Class
      CE Certificates) of such Class of Certificates to be made on such Distribution
      Date), and the denominator of which is the initial aggregate Certificate
      Principal Balance (or the Notional Amount, in the case of the Class CE
      Certificates) of such Class of Certificates as of the Closing Date.

     

    “Certificateholder”
or
      “Holder”:
      The
      Person in whose name a Certificate is registered in the Certificate Register,
      except that a Disqualified Organization or a Non-United States Person shall
      not
      be a Holder of a Residual Certificate for any purpose hereof and, solely for
      the
      purpose of giving any consent pursuant to this Agreement, any Certificate
      registered in the name of the Depositor or the Servicer or any Affiliate thereof
      shall be deemed not to be outstanding and the Voting Rights to which it is
      entitled shall not be taken into account in determining whether the requisite
      percentage of Voting Rights necessary to effect any such consent has been
      obtained, except as otherwise provided in Section
      13.01.
      The
      Trustee may conclusively rely upon a certificate of the Depositor or the
      Servicer in determining whether a Certificate is held by an Affiliate thereof.
      All references herein to “Holders” or “Certificateholders” shall reflect the
      rights of Certificate Owners as they may indirectly exercise such rights through
      the Depository and participating members thereof, except as otherwise specified
      herein; provided,
      however,
      that
      the Trustee shall be required to recognize as a “Holder” or “Certificateholder”
only the Person in whose name a Certificate is registered in the Certificate
      Register.

     

    “Certificate
      Owner”:
      With
      respect to a Book-Entry Certificate, the Person who is the beneficial owner
      of
      such Certificate as reflected on the books of the Depository or on the books
      of
      a Depository Participant or on the books of an indirect participating brokerage
      firm for which a Depository Participant acts as agent.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

     

    “Certificate
      Principal Balance”:
      With
      respect to each Class A Certificate, Mezzanine Certificate or Class P
      Certificate as of any date of determination, the Certificate Principal Balance
      of such Certificate on the Distribution Date immediately prior to such date
      of
      determination plus
      any
      Subsequent Recoveries added to the Certificate Principal Balance of such
      Certificate pursuant to Section
      4.01,
      minus
      all
      distributions allocable to principal made thereon and, in the case of the Class
      A Certificates and the Mezzanine Certificates, Realized Losses allocated thereto
      on such immediately prior Distribution Date (or, in the case of any date of
      determination up to and including the first Distribution Date, the initial
      Certificate Principal Balance of such Certificate, as stated on the face
      thereof). With respect to the Class CE Certificates as of any date of
      determination, an amount equal to the Percentage Interest evidenced by such
      Certificate times the excess, if any, of (A) the then aggregate Uncertificated
      Balance of the REMIC I Regular Interests over (B) the then aggregate Certificate
      Principal Balance of the Class A Certificates, the Mezzanine Certificates and
      the Class P Certificates then outstanding.

     

    “Certificate
      Register”:
      The
      register maintained pursuant to Section
      5.02.

     

    “Class”:
      Collectively, all of the Certificates bearing the same class
      designation.

     

    “Class
      A-1 Certificates”:
      Any
      one of the Class A-1 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-1
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and (ii) the right to receive payments from the Swap Account to
      the
      extent described herein.

     

    “Class
      A-2 Certificates”:
      Any
      one of the Class A-2 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-2
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and (ii) the right to receive payments from the Swap Account to
      the
      extent described herein.

     

    “Class
      A-3 Certificates”:
      Any
      one of the Class A-3 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-3
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and (ii) the right to receive payments from the Swap Account to
      the
      extent described herein.

     

    “Class
      A-4 Certificates”:
      Any
      one of the Class A-4 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-4
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and (ii) the right to receive payments from the Swap Account to
      the
      extent described herein.

     

    “Class
      A Certificates”:
      Collectively, the Class A-1 Certificates, the Class A-2 Certificates, the Class
      A-3 Certificates and the Class A-4 Certificates.

     

    “Class
      A Principal Distribution Amount”:
      With
      respect to any Distribution Date, the excess of (x) the aggregate Certificate
      Principal Balance of the Class A Certificates immediately prior to such
      Distribution Date over (y) the lesser of (A) the product of (i) the applicable
      Subordination Percentage and (ii) the aggregate Stated Principal Balance of
      the
      Mortgage Loans as of the last day of the related Due Period and (B) the excess,
      if any, of the aggregate Stated Principal Balance of the Mortgage Loans as
      of
      the last day of the related Due Period over
      the
      Overcollateralization Floor Amount.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

     

    “Class
      CE Certificate”:
      Any
      one of the Class CE Certificates executed, authenticated and delivered by the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-15
      and
      evidencing two Regular Interests in REMIC II for purposes of the REMIC
      Provisions together with certain rights to payments under the Swap
      Agreement.

     

    “Class
      M-1 Certificate”:
      Any
      one of the Class M-1 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-5
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and (ii) the right to receive payments from the Swap Account to
      the
      extent described herein.

     

    “Class
      M-1 Principal Distribution Amount”:
      With
      respect to any Distribution Date, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates (after taking into
      account the distribution of the Class A Principal Distribution Amount on such
      Distribution Date) and (ii) the Certificate Principal Balance of the Class
      M-1
      Certificates immediately prior to such Distribution Date over (y) the lesser
      of
      (A) the product of (i) the applicable Subordination Percentage and (ii) the
      aggregate Stated Principal Balance of the Mortgage Loans as of the last day
      of
      the related Due Period and (B) the excess, if any, of the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period over
      the
      Overcollateralization Floor Amount.

     

    “Class
      M-2 Certificate”:
      Any
      one of the Class M-2 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-6
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and (ii) the right to receive payments from the Swap Account to
      the
      extent described herein.

     

    “Class
      M-2 Principal Distribution Amount”:
      With
      respect to any Distribution Date, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates (after taking into
      account the distribution of the Class A Principal Distribution Amount on such
      Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date) and (iii) the
      Certificate Principal Balance of the Class M-2 Certificates immediately prior
      to
      such Distribution Date over (y) the lesser of (A) the product of (i) the
      applicable Subordination Percentage and (ii) the aggregate Stated Principal
      Balance of the Mortgage Loans as of the last day of the related Due Period
      and
      (B) the excess, if any, of the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period over
      the
      Overcollateralization Floor Amount.

     

    “Class
      M-3 Certificate”:
      Any
      one of the Class M-3 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-7
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and
      (ii)
      the right to receive payments
      from the
      Swap Account to the extent described herein.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

     

    “Class
      M-3 Principal Distribution Amount”:
      With
      respect to any Distribution Date, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates (after taking into
      account the distribution of the Class A Principal Distribution Amount on such
      Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-2 Certificates (after taking into account
      the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date) and (iv) the Certificate Principal Balance of the Class M-3 Certificates
      immediately prior to such Distribution Date over (y) the lesser of (A) the
      product of (i) the applicable Subordination Percentage and (ii) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period and (B) the excess, if any, of the aggregate Stated Principal Balance
      of the Mortgage Loans as of the last day of the related Due Period over
      the
      Overcollateralization Floor Amount.

     

    “Class
      M-4 Certificate”:
      Any
      one of the Class M-4 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-8
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and (ii) the right to receive payments from the Swap Account to
      the
      extent described herein.

     

    “Class
      M-4 Principal Distribution Amount”:
      With
      respect to any Distribution Date, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates (after taking into
      account the distribution of the Class A Principal Distribution Amount on such
      Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-2 Certificates (after taking into account
      the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
      (after taking into account the distribution of the Class M-3 Principal
      Distribution Amount on such Distribution Date) and (v) the Certificate Principal
      Balance of the Class M-4 Certificates immediately prior to such Distribution
      Date over (y) the lesser of (A) the product of (i) the applicable Subordination
      Percentage and (ii) the aggregate Stated Principal Balance of the Mortgage
      Loans
      as of the last day of the related Due Period and (B) the excess, if any, of
      the
      aggregate Stated Principal Balance of the Mortgage Loans as of the last day
      of
      the related Due Period over
      the
      Overcollateralization Floor Amount.

     

    “Class
      M-5 Certificate”:
      Any
      one of the Class M-5 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-9
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and (ii) the right to receive payments from the Swap Account to
      the
      extent described herein.

     

    “Class
      M-5 Principal Distribution Amount”:
      With
      respect to any Distribution Date, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates (after taking into
      account the distribution of the Class A Principal Distribution Amount on such
      Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-2 Certificates (after taking into account
      the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
      (after taking into account the distribution of the Class M-3 Principal
      Distribution Amount on such Distribution Date), (v) the Certificate Principal
      Balance of the Class M-4 Certificates (after taking into account the
      distribution of the Class M-4 Principal Distribution Amount on such Distribution
      Date) and (vi) the Certificate Principal Balance of the Class M-5 Certificates
      immediately prior to such Distribution Date over (y) the lesser of (A) the
      product of (i) the applicable Subordination Percentage and (ii) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period and (B) the excess, if any, of the aggregate Stated Principal Balance
      of the Mortgage Loans as of the last day of the related Due Period over
      the
      Overcollateralization Floor Amount.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

     

    “Class
      M-6 Certificate”:
      Any
      one of the Class M-6 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-10
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and (ii) the right to receive payments from the Swap Account to
      the
      extent described herein.

     

    “Class
      M-6 Principal Distribution Amount”:
      With
      respect to any Distribution Date, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates (after taking into
      account the distribution of the Class A Principal Distribution Amount on such
      Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-2 Certificates (after taking into account
      the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
      (after taking into account the distribution of the Class M-3 Principal
      Distribution Amount on such Distribution Date), (v) the Certificate Principal
      Balance of the Class M-4 Certificates (after taking into account the
      distribution of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the distribution of the Class M-5 Principal
      Distribution Amount on such Distribution Date) and (vii) the Certificate
      Principal Balance of the Class M-6 Certificates immediately prior to such
      Distribution Date over (y) the lesser of (A) the product of (i) the applicable
      Subordination Percentage and (ii) the aggregate Stated Principal Balance of
      the
      Mortgage Loans as of the last day of the related Due Period and (B) the excess,
      if any, of the aggregate Stated Principal Balance of the Mortgage Loans as
      of
      the last day of the related Due Period over
      the
      Overcollateralization Floor Amount.

     

    “Class
      M-7 Certificate”:
      Any
      one of the Class M-7 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-11
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and (ii) the right to receive payments from the Swap Account to
      the
      extent described herein.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

     

    “Class
      M-7 Principal Distribution Amount”:
      With
      respect to any Distribution Date, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates (after taking into
      account the distribution of the Class A Principal Distribution Amount on such
      Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-2 Certificates (after taking into account
      the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
      (after taking into account the distribution of the Class M-3 Principal
      Distribution Amount on such Distribution Date), (v) the Certificate Principal
      Balance of the Class M-4 Certificates (after taking into account the
      distribution of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the distribution of the Class M-5 Principal
      Distribution Amount on such Distribution Date), (vii) the Certificate Principal
      Balance of the Class M-6 Certificates (after taking into account the
      distribution of the Class M-6 Principal Distribution Amount on such Distribution
      Date) and (viii) the Certificate Principal Balance of the Class M-7 Certificates
      immediately prior to such Distribution Date over (y) the lesser of (A) the
      product of (i) the applicable Subordination Percentage and (ii) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period and (B) the excess, if any, of the aggregate Stated Principal Balance
      of the Mortgage Loans as of the last day of the related Due Period over
      the
      Overcollateralization Floor Amount.

     

    “Class
      M-8 Certificate”:
      Any
      one of the Class M-8 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-12
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and (ii) the right to receive payments from the Swap Account to
      the
      extent described herein.

     

    “Class
      M-8 Principal Distribution Amount”:
      With
      respect to any Distribution Date, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates (after taking into
      account the distribution of the Class A Principal Distribution Amount on such
      Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-2 Certificates (after taking into account
      the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
      (after taking into account the distribution of the Class M-3 Principal
      Distribution Amount on such Distribution Date), (v) the Certificate Principal
      Balance of the Class M-4 Certificates (after taking into account the
      distribution of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the distribution of the Class M-5 Principal
      Distribution Amount on such Distribution Date), (vii) the Certificate Principal
      Balance of the Class M-6 Certificates (after taking into account the
      distribution of the Class M-6 Principal Distribution Amount on such Distribution
      Date), (viii) the Certificate Principal Balance of the Class M-7 Certificates
      (after taking into account the distribution of the Class M-7 Principal
      Distribution Amount on such Distribution Date) and (ix) the Certificate
      Principal Balance of the Class M-8 Certificates immediately prior to such
      Distribution Date over (y) the lesser of (A) the product of (i) the applicable
      Subordination Percentage and (ii) the aggregate Stated Principal Balance of
      the
      Mortgage Loans as of the last day of the related Due Period and (B) the excess,
      if any, of the aggregate Stated Principal Balance of the Mortgage Loans as
      of
      the last day of the related Due Period over
      the
      Overcollateralization Floor Amount.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

     

    “Class
      M-9 Certificate”:
      Any
      one of the Class M-9 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-13
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and (ii) the right to receive payments from the Swap Account to
      the
      extent described herein.

     

    “Class
      M-9 Principal Distribution Amount”:
      With
      respect to any Distribution Date, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates (after taking into
      account the distribution of the Class A Principal Distribution Amount on such
      Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-2 Certificates (after taking into account
      the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
      (after taking into account the distribution of the Class M-3 Principal
      Distribution Amount on such Distribution Date), (v) the Certificate Principal
      Balance of the Class M-4 Certificates (after taking into account the
      distribution of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the distribution of the Class M-5 Principal
      Distribution Amount on such Distribution Date), (vii) the Certificate Principal
      Balance of the Class M-6 Certificates (after taking into account the
      distribution of the Class M-6 Principal Distribution Amount on such Distribution
      Date), (viii) the Certificate Principal Balance of the Class M-7 Certificates
      (after taking into account the distribution of the Class M-7 Principal
      Distribution Amount on such Distribution Date), (ix) the Certificate Principal
      Balance of the Class M-8 Certificates (after taking into account the
      distribution of the Class M-8 Principal Distribution Amount on such Distribution
      Date) and (x) the Certificate Principal Balance of the Class M-9 Certificates
      immediately prior to such Distribution Date over (y) the lesser of (A) the
      product of (i) the applicable Subordination Percentage and (ii) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period and (B) the excess, if any, of the aggregate Stated Principal Balance
      of the Mortgage Loans as of the last day of the related Due Period over
      the
      Overcollateralization Floor Amount.

     

    “Class
      M-10 Certificate”:
      Any
      one of the Class M-10 Certificates executed, authenticated and delivered by
      the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-14
      and
      evidencing (i) a Regular Interest in REMIC II for purposes of the REMIC
      Provisions and (ii) the right to receive payments from the Swap Account to
      the
      extent described herein.

     

    “Class
      M-10 Principal Distribution Amount”:
      With
      respect to any Distribution Date, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates (after taking into
      account the distribution of the Class A Principal Distribution Amount on such
      Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-2 Certificates (after taking into account
      the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
      (after taking into account the distribution of the Class M-3 Principal
      Distribution Amount on such Distribution Date), (v) the Certificate Principal
      Balance of the Class M-4 Certificates (after taking into account the
      distribution of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the distribution of the Class M-5 Principal
      Distribution Amount on such Distribution Date), (vii) the Certificate Principal
      Balance of the Class M-6 Certificates (after taking into account the
      distribution of the Class M-6 Principal Distribution Amount on such Distribution
      Date), (viii) the Certificate Principal Balance of the Class M-7 Certificates
      (after taking into account the distribution of the Class M-7 Principal
      Distribution Amount on such Distribution Date), (ix) the Certificate Principal
      Balance of the Class M-8 Certificates (after taking into account the
      distribution of the Class M-8 Principal Distribution Amount on such Distribution
      Date), (x) the Certificate Principal Balance of the Class M-9 Certificates
      (after taking into account the distribution of the Class M-9 Principal
      Distribution Amount on such Distribution Date) and (xi) the Certificate
      Principal Balance of the Class M-10 Certificates immediately prior to such
      Distribution Date over (y) the lesser of (A) the product of (i) the applicable
      Subordination Percentage and (ii) the aggregate Stated Principal Balance of
      the
      Mortgage Loans as of the last day of the related Due Period and (B) the excess,
      if any, of the aggregate Stated Principal Balance of the Mortgage Loans as
      of
      the last day of the related Due Period over
      the
      Overcollateralization Floor Amount.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

     

    “Class
      M Principal Distribution Amount”:
      The
      Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution
      Amount, the Class M-3 Principal Distribution Amount, the Class M-4 Principal
      Distribution Amount, the Class M-5 Principal Distribution Amount, the Class
      M-6
      Principal Distribution Amount, the Class M-7 Principal Distribution Amount,
      the
      Class M-8 Principal Distribution Amount, the Class M-9 Principal Distribution
      Amount or the Class M-10 Principal Distribution Amount, as
      applicable.

     

    “Class
      P Certificate”:
      Any
      one of the Class P Certificates executed, authenticated and delivered by the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-16
      and
      evidencing a Regular Interest in REMIC II for purposes of the REMIC
      Provisions.

     

    “Class
      R Certificate”:
      Any
      one of the Class R Certificates executed, authenticated and delivered by the
      Trustee, substantially in the form annexed hereto as Exhibit
      A-17
      and
Exhibit A-19
      evidencing the ownership of the Class R-I Interest and the Class R-II Interest,
      respectively.

     

    “Class
      R-I Interest”:
      The
      uncertificated Residual Interest in REMIC I.

     

    “Class
      R-II Interest”:
      The
      uncertificated Residual Interest in REMIC II.

     

    “Closing
      Date”:
      January 25, 2007.

     

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

     

    “Commission”:
      The
      Securities and Exchange Commission.

     

    “Commitment
      Letter”:
      The
      letter agreement (including any exhibits, schedules and attachments thereto)
      dated December 22, 2006 between RFC and the Seller relating to the Mortgage
      Loans. 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

     

    “Compensating
      Interest”:
      As
      defined in Section 3.24 of the Pooling and Servicing Agreement.

     

    “Controlling
      Person”
means,
      with respect to any Person, any other Person who “controls” such Person within
      the meaning of the Securities Act.

     

    “Corporate
      Trust Office”:
      The
      principal corporate trust office of the Trustee at which at any particular
      time
      its corporate trust business in connection with this Agreement shall be
      administered, which office at the date of the execution of this Agreement is
      located at (i) for purposes of the transfer and exchange of the certificates,
      Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479-0113, Attention:
      Corporate Trust Services - Carrington 2007-RFC1, and (ii) for all other
      purposes, 9062 Old Annapolis Road, Columbia, Maryland 21045, Attention: Client
      Manager - Carrington 2007-RFC1.

     

    “Corresponding
      Certificate”:
      With
      respect to each REMIC I Regular Interest set forth below, the Regular
      Certificate set forth in the table below:

     

    
      	
              REMIC
                I Regular Interest

            	 	
              Certificate

            
	
              I-LTA1

            	 	
              Class
                A-1

            
	
              I-LTA2

            	 	
              Class
                A-2

            
	
              I-LTA3

            	 	
              Class
                A-3

            
	
              I-LTA4

            	 	
              Class
                A-4

            
	
              I-LTM1

            	 	
              Class
                M-1

            
	
              I-LTM2

            	 	
              Class
                M-2

            
	
              I-LTM3

            	 	
              Class
                M-3

            
	
              I-LTM4

            	 	
              Class
                M-4

            
	
              I-LTM5

            	 	
              Class
                M-5

            
	
              I-LTM6

            	 	
              Class
                M-6

            
	
              I-LTM7

            	 	
              Class
                M-7

            
	
              I-LTM8

            	 	
              Class
                M-8

            
	
              I-LTM9

            	 	
              Class
                M-9

            
	
              I-LTM10

            	 	
              Class
                M-10

            
	
              I-LTP

            	 	
              Class
                P

            

    

     

    “Credit
      Enhancement Percentage”:
      For
      any Distribution Date and for any Class of Certificates, the percentage
      equivalent of a fraction, the numerator of which is the sum of the aggregate
      Certificate Principal Balance of the Classes of Certificates with a lower
      distribution priority than such Class (including the Class CE Certificates),
      calculated after taking into account payments of principal on the Mortgage
      Loans
      and distribution of the Principal Distribution Amount to the Holders of the
      Certificates then entitled to distributions of principal on such Distribution
      Date, and the denominator of which is the aggregate Stated Principal Balance
      of
      the Mortgage Loans as of the last day of the related Due Period (after giving
      effect to scheduled payments of principal due during the related Due Period,
      to
      the extent received or advanced, and unscheduled collections of principal
      received during the related Prepayment Period).

     

    “Credit
      Score”:
      The
      credit score of the Mortgagor provided by Fair, Isaac & Company, Inc. or
      such other organization providing credit scores at the time of the origination
      of a Mortgage Loan. If two credit scores are obtained, the Credit Score shall
      be
      the lower of the two credit scores. If three credit scores are obtained, the
      Credit Score shall be the middle of the three credit scores.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

     

    “Credit
      Support Depletion Date”:
      The
      first Distribution Date on which the Certificate Principal Balances of the
      Mezzanine Certificates and Class CE Certificates have been reduced to
      zero.

     

    “Custodial
      Account”:
      The
      account or accounts created and maintained, or caused to be created and
      maintained, by the Servicer pursuant to Section
      3.10(a),
      which
      shall be entitled “Residential Funding Company, LLC, as Servicer for Wells Fargo
      Bank, N.A., as Trustee, in trust for the registered holders of Carrington
      Mortgage Loan Trust, Series 2007-RFC1, Asset-Backed Pass-Through Certificates.”
The Custodial Account must be an Eligible Account.

     

    “Cut-off
      Date”:
      With
      respect to each Original Mortgage Loan, January 1, 2007. With respect to all
      Qualified Substitute Mortgage Loans, their respective dates of substitution.
      References herein to the “Cut-off Date,” when used with respect to more than one
      Mortgage Loan, shall be to the respective Cut-off Dates for each such Mortgage
      Loan.

     

    “Debt
      Service Reduction”:
      With
      respect to any Mortgage Loan, a reduction in the scheduled Monthly Payment
      for
      such Mortgage Loan by a court of competent jurisdiction in a proceeding under
      the Bankruptcy Code, except such a reduction resulting from a Deficient
      Valuation.

     

    “Defaulting
      Party”:
      As
      defined in the Swap Agreement.

     

    “Deficient
      Valuation”:
      With
      respect to any Mortgage Loan, a valuation of the related Mortgaged Property
      by a
      court of competent jurisdiction in an amount less than the then outstanding
      Stated Principal Balance of the Mortgage Loan, which valuation results from
      a
      proceeding initiated under the Bankruptcy Code.

     

    “Definitive
      Certificates”:
      As
      defined in Section
      5.01(b).

     

    “Deleted
      Mortgage Loan”:
      A
      Mortgage Loan replaced or to be replaced by a Qualified Substitute Mortgage
      Loan.

     

    “Delinquency
      Percentage”:
      As
      of the
      last day of the related Due Period, the percentage equivalent of a fraction,
      the
      numerator
      of
      which is the aggregate unpaid principal balance of the
      Rolling
      Three-Month Delinquency Average of the Mortgage Loans and the denominator of
      which is the aggregate unpaid principal balance of the Mortgage Loans and REO
      Properties as of the last day of the previous calendar month; provided,
      however,
      that
      any Mortgage Loan purchased by the Servicer pursuant to Section 3.16(c)
      shall
      not be included in either the numerator or the denominator for purposes of
      calculating the Delinquency Percentage.

     

    “Depositor”:
      Stanwich Asset Acceptance Company, L.L.C., a Delaware limited liability company,
      or its successor in interest.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

     

    “Depository”:
      The
      Depository Trust Company, or any successor Depository hereafter named. The
      nominee of the initial Depository, for purposes of registering those
      Certificates that are to be Book-Entry Certificates, is Cede & Co. The
      Depository shall at all times be a “clearing corporation” as defined in Section
      8-102(a)(5) of the Uniform Commercial Code of the State of New York and a
“clearing agency” registered pursuant to the provisions of Section 17A of the
      Exchange Act.

     

    “Depository
      Institution”:
      Any
      depository institution or trust company, including the Trustee, that (a) is
      incorporated under the laws of the United States of America or any State
      thereof, (b) is subject to supervision and examination by federal or state
      banking authorities and (c) has outstanding unsecured commercial paper or other
      short-term unsecured debt obligations (or, in the case of a depository
      institution that is the principal subsidiary of a holding company, such holding
      company has unsecured commercial paper or other short-term unsecured debt
      obligations) that are rated at least P-1 by Moody’s, F-1 by Fitch (if rated by
      Fitch) and A-1+ by S&P.

     

    “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 each Distribution Date, the 15th
      day of
      the calendar month in which such Distribution Date occurs or, if such
      15th
      day is
      not a Business Day, the Business Day immediately preceding such 15th
      day.

     

    “Directly
      Operate”:
      With
      respect to any REO Property, the furnishing or rendering of services to the
      tenants thereof, the management or operation of such REO Property, the holding
      of such REO Property primarily for sale to customers, the performance of any
      construction work thereon or any use of such REO Property in a trade or business
      conducted by REMIC I other than through an Independent Contractor; provided,
      however,
      that
      the Trustee (or the Servicer on behalf of the Trustee) shall not be considered
      to Directly Operate an REO Property solely because the Trustee (or the Servicer
      on behalf of the Trustee) establishes rental terms, chooses tenants, enters
      into
      or renews leases, makes payment on or otherwise discharges tax or insurance
      obligations, or makes decisions as to repairs or capital expenditures with
      respect to such REO Property.

     

    “Disqualified
      Organization”:
      Any
      organization defined as a “disqualified organization” under Section 860E(e)(5)
      of the Code, including, if not otherwise included, any of the following: (i)
      the
      United States, any State or political subdivision thereof, any possession of
      the
      United States, or any agency or instrumentality of any of the foregoing (other
      than an instrumentality which is a corporation if all of its activities are
      subject to tax and, except for Freddie Mac, a majority of its board of directors
      is not selected by such governmental unit), (ii) any foreign government, any
      international organization, or any agency or instrumentality of any of the
      foregoing, (iii) any organization (other than certain farmers’ cooperatives
      described in Section 521 of the Code) which is exempt from the tax imposed
      by
      Chapter 1 of the Code (including the tax imposed by Section 511 of the Code
      on
      unrelated business taxable income), (iv) rural electric and telephone
      cooperatives described in Section 1381(a)(2)(C) of the Code, (v) an “electing
      large partnership” and (vi) any other Person as set forth in an Opinion of
      Counsel delivered to the Trustee and the Depositor to the effect that the
      holding of an Ownership Interest in a Residual Certificate by such Person may
      cause any Trust REMIC or any Person having an Ownership Interest in any Class
      of
      Certificates (other than such Person) to incur a liability for any federal
      tax
      imposed under the Code that would not otherwise be imposed but for the Transfer
      of an Ownership Interest in a Residual Certificate to such Person. The terms
      “United States,” “State” and “international organization” shall have the
      meanings set forth in Section 7701 of the Code or successor
      provisions.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

     

    “Distribution
      Date”:
      The
      25th
      day of
      any month, or if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day,
      commencing in February 2007.

     

    “Due
      Date”:
      With
      respect to each Mortgage Loan and any Distribution Date, the first day of the
      calendar month in which such Distribution Date occurs on which the Monthly
      Payment for such Mortgage Loan was due (or, in the case of any Mortgage Loan
      under terms of which the Monthly Payment for such Mortgage Loan was due on
      a day
      other than the first day of the calendar month in which such Distribution Date
      occurs, the day during the related Due Period on which such Monthly Payment
      was
      due), in each case exclusive of any days of grace.

     

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

     

    “EDGAR”:
      As
      defined in Section
      4.06.

     

    “Eligible
      Account”:
      Any of
      (i) an account or accounts maintained with a Depository Institution, (ii) an
      account or accounts the deposits in which are fully insured by the FDIC or
      (iii) a segregated non-interest bearing trust account or accounts
      maintained with the corporate trust department of a federal depository
      institution or state-chartered depository institution subject to regulations
      regarding fiduciary funds on deposit similar to Title 12 of the Code of Federal
      Regulation Section 9.10(b), which, in either case, has corporate trust powers,
      acting in its fiduciary capacity.

     

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

     

    “Escrow
      Payments”:
      As
      defined in Section
      3.09.

     

    “Excess
      Overcollateralized Amount”:
      With
      respect to the Class A Certificates and the Mezzanine Certificates and any
      Distribution Date, the excess, if any, of (i) the Overcollateralization Amount
      for such Distribution Date (calculated for this purpose only after assuming
      that
      100% of the Principal Remittance Amount on such Distribution Date has been
      distributed) over (ii) the Overcollateralization Target Amount for such
      Distribution Date.

     

    “Exchange
      Act”:
      As
      defined in Section
      4.06.

     

    “Expense
      Adjusted Mortgage Rate”:
      With
      respect to any Mortgage Loan (or the related REO Property), as of any date
      of
      determination, a per annum rate of interest equal to the then applicable
      Mortgage Rate thereon as of the first day of the related Due Period minus
      the sum
      of (i) the Trustee Fee Rate and (ii) the Servicing Fee Rate.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

     

    “Extraordinary
      Trust Fund Expense”:
      Any
      amounts reimbursable to the Trustee or any director, officer, employee or agent
      of the Trustee from the Trust Fund pursuant to Section
      8.05
      or
Section
      10.01(c)
      and any
      amounts payable from the Certificate Account in respect of taxes pursuant to
      Section
      10.01(g)(iii)
      and any
      costs of the Trustee for the recording of the Assignments pursuant to
Section
      2.01
      (to the
      extent the Seller is unable to pay such costs).

     

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

     

    “FDIC”:
      Federal Deposit Insurance Corporation or any successor thereto.

     

    “FHLMC”:
      The
      Federal Home Loan Mortgage Corporation or any successor thereto.

     

    “Final
      Recovery Determination”:
      With
      respect to any defaulted Mortgage Loan or any REO Property (other than a
      Mortgage Loan or REO Property purchased by the Depositor or the Servicer
      pursuant to or as contemplated by Section
      2.03,
      Section 3.16(c)
      or
Section
      9.01),
      a
      determination made by the Servicer that all Insurance Proceeds, Liquidation
      Proceeds and other payments or recoveries which the Servicer, in its reasonable
      good faith judgment, expects to be finally recoverable in respect thereof have
      been so recovered. The Servicer shall maintain records, prepared by a Servicing
      Officer, of each Final Recovery Determination made thereby.

     

    “First
      Lien”:
      With
      respect to each Mortgaged Property, the lien of the mortgage, deed of trust
      or
      other instrument securing a Mortgage Note that creates a first lien on the
      Mortgaged Property.

     

    “Fitch”:
      Fitch
      Ratings, or its successor in interest.

     

    “Fixed
      Swap Payment”:
      With
      respect to the Business Day prior to any Distribution Date on or prior to the
      Distribution Date in September 2010, an amount equal to the product of (x)
      a
      fixed rate equal to 5.10% per annum, (y) the Swap Agreement Notional Balance
      for
      that Distribution Date and (z)(i) with respect to the Business Day prior to
      the
      initial Distribution Date, a fraction, the numerator of which is the number
      of
      days from and including the Closing Date to and including the day preceding
      the
      initial Distribution Date (on a 30/360 day count basis) and the denominator
      of which is 360 and (ii) with respect to the Business Day prior to each
      Distribution Date thereafter, a fraction, the numerator of which is 30 and
      the
      denominator of which is 360.

     

    “Floating
      Swap Payment”:
      With
      respect to the Business Day prior to any Distribution Date on or prior to the
      Distribution Date in September 2010, an amount equal to the product of (x)
      Swap
      LIBOR (y) the Swap Agreement Notional Balance for that Distribution Date and
      (z)
      a fraction, the numerator of which is equal to the actual number of days in
      the
      related calculation period as provided in the Swap Agreement and the denominator
      of which is 360.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

     

    “Fixed-Rate
      Mortgage Loan”:
      Each
      of the Mortgage Loans identified on the Mortgage Loan Schedule as having a
      fixed
      Mortgage Rate. 

     

    “Formula
      Rate”:
      For
      any Distribution Date and the Class A Certificates and the Mezzanine
      Certificates, One-Month LIBOR plus
      the
      related Margin.

     

    “Freddie
      Mac”:
      Freddie Mac, a corporate instrumentality of the United States created and
      existing under Title III of the Emergency Home Finance Act of 1970, as amended,
      or any successor thereto.

     

    “Gross
      Margin”:
      With
      respect to each Adjustable-Rate Mortgage Loan, the fixed percentage set forth
      in
      the related Mortgage Note that is added to the Index on each Adjustment Date
      in
      accordance with the terms of the related Mortgage Note used to determine the
      Mortgage Rate for such Adjustable-Rate Mortgage Loan.

     

    “Highest
      Priority”:
      As of
      any date of determination, the Class of Mezzanine Certificates then outstanding
      with a Certificate Principal Balance greater than zero, with the highest
      priority for payments pursuant to Section
      4.01,
      in the
      following order: Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9 and Class M-10
      Certificates.

     

    “Indenture”:
      An
      indenture relating to the issuance of notes secured by the Class CE
      Certificates, the Class P Certificates and/or the Class R Certificates (or
      any
      portion thereof).

     

    “Independent”:
      When
      used with respect to any specified Person, any such Person who (i) is in
      fact independent of the Depositor, the Servicer, the Seller and their respective
      Affiliates, (ii) does not have any direct financial interest in or any
      material indirect financial interest in the Depositor, the Servicer, the Seller
      or any Affiliate thereof, and (iii) is not connected with the Depositor,
      the Servicer, the Seller or any Affiliate thereof as an officer, employee,
      promoter, underwriter, trustee, partner, director or Person performing similar
      functions; provided,
      however,
      that a
      Person shall not fail to be Independent of the Depositor, the Servicer, the
      Seller or any Affiliate thereof merely because such Person is the beneficial
      owner of 1% or less of any class of securities issued by the Depositor, the
      Servicer, the Seller or any Affiliate thereof, as the case may be.

     

    “Independent
      Contractor”:
      Either
      (i) any Person (other than the Servicer) that would be an “independent
      contractor” with respect to REMIC I within the meaning of Section 856(d)(3) of
      the Code if REMIC I were a real estate investment trust (except that the
      ownership tests set forth in that section shall be considered to be met by
      any
      Person that owns, directly or indirectly, 35% or more of any Class of
      Certificates), so long as REMIC I does not receive or derive any income from
      such Person and provided that the relationship between such Person and REMIC
      I
      is at arm’s length, all within the meaning of Treasury Regulation Section
      1.856-4(b)(5), or (ii) any other Person (including the Servicer) if the Trustee
      has received an Opinion of Counsel to the effect that the taking of any action
      in respect of any REO Property by such Person, subject to any conditions therein
      specified, that is otherwise herein contemplated to be taken by an Independent
      Contractor will not cause such REO Property to cease to qualify as “foreclosure
      property” within the meaning of Section 860G(a)(8) of the Code (determined
      without regard to the exception applicable for purposes of Section 860D(a)
      of
      the Code), or cause any income realized in respect of such REO Property to
      fail
      to qualify as Rents from Real Property.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

     

    “Index”:
      With
      respect to each Adjustable-Rate Mortgage Loan and each related Adjustment Date,
      the index specified in the related Mortgage Note.

     

    “Insurance
      Proceeds”:
      Proceeds of any title policy, hazard policy or other insurance policy covering
      a
      Mortgage Loan, to the extent such proceeds are not to be applied to the
      restoration of the related Mortgaged Property or released to the Mortgagor
      in
      accordance with the procedures that the Servicer would follow in servicing
      mortgage loans held for its own account, subject to the terms and conditions
      of
      the related Mortgage Note and Mortgage.

     

    “Interest
      Accrual Period”:
      With
      respect to any Distribution Date and the Class A Certificates and the Mezzanine
      Certificates, the period commencing on the Distribution Date of the month
      immediately preceding the month in which such Distribution Date occurs (or,
      in
      the case of the first Distribution Date, commencing on the Closing Date) and
      ending on the day preceding such Distribution Date. With respect to any
      Distribution Date and the Class CE Certificates and the REMIC I Regular
      Interests, the one-month period ending on the last day of the calendar month
      preceding the month in which such Distribution Date occurs.

     

    “Interest
      Carry Forward Amount”:
      With
      respect to any Distribution Date and the Class A Certificates or the Mezzanine
      Certificates, the sum of (i) the amount, if any, by which (a) the Interest
      Distribution Amount for such Class of Certificates as of the immediately
      preceding Distribution Date exceeded (b) the actual amount distributed on such
      Class of Certificates in respect of interest on such immediately preceding
      Distribution Date, (ii) the amount of any Interest Carry Forward Amount for
      such
      Class of Certificates remaining unpaid from previous Distribution Dates and
      (iii) accrued interest on the sum of (i) and (ii) above calculated at the
      related Pass-Through Rate for the most recently ended Interest Accrual
      Period.

     

    “Interest
      Determination Date”:
      With
      respect to the Class A Certificates, the Mezzanine Certificates, REMIC I Regular
      Interest I-LTA1, REMIC I Regular Interest I-LTA2, REMIC I Regular Interest
      I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I Regular Interest I-LTM1, REMIC
      I Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular
      Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC I Regular Interest
      I-LTM6, REMIC I Regular Interest I-LTM7, REMIC I Regular Interest I-LTM8, REMIC
      I Regular Interest I-LTM9, REMIC I Regular Interest I-LTM10 and any Interest
      Accrual Period therefor, the second London Business Day preceding the
      commencement of such Interest Accrual Period.

     

    “Interest
      Distribution Amount”:
      With
      respect to any Distribution Date and the Class A Certificates, the Mezzanine
      Certificates and the Class CE Certificates, the aggregate Accrued Certificate
      Interest on the Certificates of such Class for such Distribution
      Date.

     

    “Interest
      Remittance Amount”:
      For
      any Distribution Date, the excess, if any, of (i) that portion of the Available
      Distribution Amount (without giving effect to any Net Swap Payment owed to
      the
      Swap Counterparty or any Swap Termination Payment owed to the Swap Counterparty
      not due to a Swap Counterparty Trigger Event) for that Distribution Date that
      represents interest received or advanced on the Mortgage Loans over
      (ii) any Net Swap Payment owed to the Swap Counterparty or Swap Termination
      Payment not due to a Swap Counterparty Trigger Event owed to the Swap
      Counterparty.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

     

    “Investment
      Account”:
      As
      defined in Section
      3.12.

     

    “Late
      Collections”:
      With
      respect to any Mortgage Loan and any Due Period, all amounts received subsequent
      to the Determination Date immediately following such Due Period, whether as
      late
      payments of Monthly Payments or as Insurance Proceeds, Liquidation Proceeds
      or
      otherwise, which represent late payments or collections of principal and/or
      interest due (without regard to any acceleration of payments under the related
      Mortgage and Mortgage Note) but delinquent for such Due Period and not
      previously recovered.

     

    “Liquidation
      Event”:
      With
      respect to any Mortgage Loan, any of the following events: (i) such
      Mortgage Loan is paid in full; (ii) a Final Recovery Determination is made
      as to
      such Mortgage Loan; or (iii) such Mortgage Loan is removed from REMIC I, by
      reason of its being purchased, sold or replaced pursuant to or as contemplated
      by Section
      2.03,
      Section
      3.16(c)
      or
Section
      9.01.
      With
      respect to any REO Property, either of the following events: (i) a Final
      Recovery Determination is made as to such REO Property; or (ii) such REO
      Property is removed from REMIC I by reason of its being purchased pursuant
      to
Section
      9.01.

     

    “Liquidation
      Proceeds”:
      The
      amount (other than Insurance Proceeds or amounts received in respect of the
      rental of any REO Property prior to REO Disposition) received by the Servicer
      in
      connection with (i) the taking of all or a part of a Mortgaged Property by
      exercise of the power of eminent domain or condemnation, (ii) the liquidation
      of
      a defaulted Mortgage Loan through a trustee’s sale, foreclosure sale or
      otherwise, or (iii) the repurchase, substitution or sale of a Mortgage Loan
      or
      an REO Property pursuant to or as contemplated by Section
      2.03,
      Section 3.16(c),
      Section
      3.23
      or
Section
      9.01.

     

    “Loan-to-Value
      Ratio”:
      As of
      any date of determination, the fraction, expressed as a percentage, the
      numerator of which is the principal balance of the related Mortgage Loan at
      such
      date and the denominator of which is the Value of the related Mortgaged
      Property.

     

    “London
      Business Day”:
      Any
      day on which banks in the City of London and New York are open and conducting
      transactions in United States dollars.

     

    “Margin”:
      With
      respect to each class of the Class A Certificates and Mezzanine Certificates
      and, for purposes of the Marker Rate and the Maximum I-LTZZ Uncertificated
      Interest Deferral Amount, the specified REMIC I Regular Interest, as
      follows:

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

     

    
      	
              Class

            	 	
              REMIC
                I Regular Interest

            	 	
              Margin

            	 
	 	 	 	 	
              (1)
                (%)

            	 	
              (2)
                (%)

            	 
	
              A-1

            	
               

            	
               

            	
              I-LTA1

            	
               

            	
               

            	
              0.050

            	
               

            	
               

            	
              0.100

            	
               

            
	
              A-2

            	
               

            	
               

            	
              I-LTA2

            	
               

            	
               

            	
              0.100

            	
               

            	
               

            	
              0.200

            	
               

            
	
              A-3

            	
               

            	
               

            	
              I-LTA3

            	
               

            	
               

            	
              0.140

            	
               

            	
               

            	
              0.280

            	
               

            
	
              A-4

            	
               

            	
               

            	
              I-LTA4

            	
               

            	
               

            	
              0.220

            	
               

            	
               

            	
              0.440

            	
               

            
	
              M-1

            	
               

            	
               

            	
              I-LTM1

            	
               

            	
               

            	
              0.260

            	
               

            	
               

            	
              0.390

            	
               

            
	
              M-2

            	
               

            	
               

            	
              I-LTM2

            	
               

            	
               

            	
              0.280

            	
               

            	
               

            	
              0.420

            	
               

            
	
              M-3

            	
               

            	
               

            	
              I-LTM3

            	
               

            	
               

            	
              0.300

            	
               

            	
               

            	
              0.450

            	
               

            
	
              M-4

            	
               

            	
               

            	
              I-LTM4

            	
               

            	
               

            	
              0.350

            	
               

            	
               

            	
              0.525

            	
               

            
	
              M-5

            	
               

            	
               

            	
              I-LTM5

            	
               

            	
               

            	
              0.360

            	
               

            	
               

            	
              0.540

            	
               

            
	
              M-6

            	
               

            	
               

            	
              I-LTM6

            	
               

            	
               

            	
              0.440

            	
               

            	
               

            	
              0.660

            	
               

            
	
              M-7

            	
               

            	
               

            	
              I-LTM7

            	
               

            	
               

            	
              0.800

            	
               

            	
               

            	
              1.200

            	
               

            
	
              M-8

            	
               

            	
               

            	
              I-LTM8

            	
               

            	
               

            	
              1.100

            	
               

            	
               

            	
              1.650

            	
               

            
	
              M-9

            	
               

            	
               

            	
              I-LTM9

            	
               

            	
               

            	
              2.000

            	
               

            	
               

            	
              3.000

            	
               

            
	
              M-10

            	
               

            	
               

            	
              I-LTM10

            	
               

            	
               

            	
              2.250

            	
               

            	
               

            	
              3.375

            	 

    

    __________

    (1) For
      each
      Interest Accrual Period for each Distribution Date on or prior to the Optional
      Termination Date.

    (2)
      For each
      Interest Accrual Period thereafter.

     

    “Marker
      Rate”:
      With
      respect to the Class CE Certificates or the REMIC II Regular Interest CE-IO
      and
      any Distribution Date, a per annum rate equal to two (2) multiplied by the
      weighted average of the REMIC I Remittance Rates for the REMIC I Regular
      Interests (other than REMIC I Regular Interest I-LTP and REMIC I Regular
      Interest I-LTAA), with the rate on each such REMIC I Regular Interest (other
      than REMIC I Regular Interest I-LTZZ) subject to a cap equal to the Pass-Through
      Rate for the related Corresponding Certificate and with the rate on REMIC I
      Regular Interest I-LTZZ subject to a cap of zero, in each case for purposes
      of
      this calculation; provided,
      however,
      each
      cap shall be multiplied by a fraction, the numerator of which is the actual
      number of days elapsed in the related Interest Accrual Period and the
      denominator of which is 30.

     

    “Maximum
      I-LTZZ Uncertificated Interest Deferral Amount”:
      With
      respect to any Distribution Date, the excess of (i) accrued interest at the
      REMIC I Remittance Rate applicable to REMIC I Regular Interest I-LTZZ for such
      Distribution Date on a balance equal to the Uncertificated Balance of REMIC
      I
      Regular Interest I-LTZZ minus
      the
      REMIC I Overcollateralized Amount, in each case for such Distribution Date,
      over
      (ii) Uncertificated Interest on REMIC I Regular Interest I-LTA1, REMIC I
      Regular Interest I-LTA2, REMIC I Regular Interest I-LTA3, REMIC I Regular
      Interest I-LTA4, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest
      I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC
      I Regular Interest I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I Regular
      Interest I-LTM7, REMIC I Regular Interest I-LTM8, REMIC I Regular Interest
      I-LTM9 and REMIC I Regular Interest I-LTM10 for such Distribution Date, with
      the
      rate on each such REMIC I Regular Interest subject to a cap equal to the lesser
      of (i) One-Month LIBOR plus
      the
      related Margin for the related Corresponding Certificate and (ii) the Net
      WAC Pass-Through Rate for the related Corresponding Certificate; provided,
      however,
      each
      cap shall be multiplied by a fraction, the numerator of which is the actual
      number of days elapsed in the related Interest Accrual Period and the
      denominator of which is 30.

     

    “Maximum
      Mortgage Rate”:
      With
      respect to each Adjustable-Rate Mortgage Loan, the percentage set forth in
      the
      related Mortgage Note as the maximum Mortgage Rate thereunder.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

     

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

     

    “MERS®
      System”:
      The
      system of recording transfers of Mortgages electronically maintained by
      MERS.

     

    “Mezzanine
      Certificates”:
      Collectively, the Class M-1 Certificates, the Class M-2 Certificates, the Class
      M-3 Certificates, the Class M-4 Certificates, the Class M-5 Certificates, the
      Class M-6 Certificates, the Class M-7 Certificates, the Class M-8 Certificates,
      the Class M-9 Certificates and the Class M-10 Certificates.

     

    “MIN”:
      The
      Mortgage Identification Number for Mortgage Loans registered with MERS on the
      MERS® System.

     

    “Minimum
      Mortgage Rate”:
      With
      respect to each Adjustable-Rate Mortgage Loan, the percentage set forth in
      the
      related Mortgage Note as the minimum Mortgage Rate thereunder.

     

    “MOM
      Loan”:
      With
      respect to any applicable Mortgage Loan, MERS acting as the mortgagee of such
      Mortgage Loan, solely as nominee for the originator of such Mortgage Loan and
      its successors and assigns, at the origination thereof.

     

    “Monthly
      Payment”:
      With
      respect to any Mortgage Loan, the scheduled monthly payment of principal and
      interest on such Mortgage Loan which is payable by the related Mortgagor from
      time to time under the related Mortgage Note, determined: (a) after giving
      effect to (i) any Deficient Valuation and/or Debt Service Reduction with respect
      to such Mortgage Loan and (ii) any reduction in the amount of interest
      collectible from the related Mortgagor pursuant to the Relief Act; (b) without
      giving effect to any extension granted or agreed to by the Servicer pursuant
      to
Section
      3.07
      and (c)
      on the assumption that all other amounts, if any, due under such Mortgage Loan
      are paid when due.

     

    “Moody’s”:
      Moody’s Investors Service, Inc., or its successor in interest.

     

    “Mortgage”:
      With
      respect to each Mortgage Note, the mortgage, deed of trust or other instrument
      creating a first lien or second lien on, or first or second priority security
      interest in, a Mortgaged Property securing a Mortgage Note.

     

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

     

    “Mortgage
      Loan”:
      Each
      mortgage loan transferred and assigned to the Trustee and delivered to the
      Trustee pursuant to Section
      2.01
      or
Section
      2.03(b)
      of this
      Agreement, as held from time to time as a part of the Trust Fund, the Mortgage
      Loans so held being identified in the Mortgage Loan Schedule.

     

    “Mortgage
      Loan Data Tape”:
      The
      electronic data tape delivered by RFC to the Seller on November 6, 2006
      containing the information to be used to create the Mortgage Loan
      Schedule.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

     

    “Mortgage
      Loan Purchase Agreement”:
      The
      agreement among the Seller, RFC and the Depositor, regarding the sale of the
      Mortgage Loans by the Seller to the Depositor, substantially in the form of
      Exhibit
      D
      annexed
      hereto.

     

    “Mortgage
      Loan Schedule”:
      As of
      any date, the list of Mortgage Loans included in REMIC I on such date, attached
      hereto as Schedule
      1.
      The
      Mortgage Loan Schedule shall set forth the following information with respect
      to
      each Mortgage Loan; provided, however, Mortgagor identifiable information shall
      be redacted in the event any such Mortgage Loan Schedule is publicly
      filed:

     

    (i) the
      Mortgage Loan identifying number;

     

    (ii) the
      Mortgagor’s first and last name;

     

    (iii) the
      street address of the Mortgaged Property, including the city, state and zip
      code
      of the Mortgaged Property;

     

    (iv) a
      code
      indicating whether the Mortgaged Property is owner-occupied;

     

    (v) the
      type
      of Residential Dwelling constituting the Mortgaged Property;

     

    (vi) the
      original months to maturity;

     

    (vii) the
      original date of the Mortgage Loan and the remaining months to maturity from
      the
      Cut-off Date, based on the original amortization schedule;

     

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

     

    (ix) with
      respect to each Mortgage Loan secured by a second lien, the CLTV at
      origination;

     

    (x) the
      Mortgage Rate in effect immediately following the Cut-off Date;

     

    (xi) (A)
      the
      date on which the first Monthly Payment was due on the Mortgage Loan and (B)
      if
      such date is not consistent with the Due Date currently in effect, such Due
      Date;

     

    (xii) the
      stated maturity date;

     

    (xiii) the
      amount of the Monthly Payment at origination;

     

    (xiv) the
      amount of the Monthly Payment as of the Cut-off Date;

     

    (xv) the
      last
      Due Date on which a Monthly Payment was actually applied to the unpaid Stated
      Principal Balance;

     

    (xvi) the
      original principal amount of the Mortgage Loan;

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

     

    (xvii) the
      Stated Principal Balance of the Mortgage Loan as of the close of business on
      the
      Cut-off Date;

     

    (xviii) with
      respect to each Adjustable-Rate Mortgage Loan, the Adjustment
      Dates;

     

    (xix) with
      respect to each Adjustable-Rate Mortgage Loan, the Gross Margin;

     

    (xx) a
      code
      indicating the purpose of the Mortgage Loan (i.e., purchase financing, Rate/Term
      Refinancing, Cash-Out Refinancing);

     

    (xxi) with
      respect to each Adjustable-Rate Mortgage Loan, the Maximum Mortgage Rate under
      the terms of the Mortgage Note;

     

    (xxii) with
      respect to each Adjustable-Rate Mortgage Loan, the Minimum Mortgage
      Rate;

     

    (xxiii) the
      Mortgage Rate at origination;

     

    (xxiv) with
      respect to each Adjustable-Rate Mortgage Loan, the Periodic Rate
      Cap;

     

    (xxv) with
      respect to each Adjustable-Rate Mortgage Loan, the first Adjustment Date
      immediately following the Cut-off Date;

     

    (xxvi) with
      respect to each Adjustable-Rate Mortgage Loan, the Index;

     

    (xxvii) [reserved]

     

    (xxviii) a
      code
      indicating whether the Mortgage Loan is an Adjustable Rate Mortgage Loan or
      a
      Fixed Rate Mortgage Loan;

     

    (xxix) a
      code
      indicating the documentation program (i.e., Full Documentation, Limited
      Documentation, Stated Income Documentation);

     

    (xxx) a
      code
      indicating if the Mortgaged Property is subject to a primary insurance policy
      or
      lender paid mortgage insurance policy;

     

    (xxxi) the
      Value
      of the Mortgaged Property;

     

    (xxxii) the
      sale
      price of the Mortgaged Property, if applicable, at origination;

     

    (xxxiii) a
      code
      indicating whether the Mortgage Loan is subject to a Prepayment Charge, the
      term
      of such Prepayment Charge, and the amount of such Prepayment
      Charge;

     

    (xxxiv) the
      product type (e.g., 2/28, 15 year fixed, 30 year fixed, 15/30 balloon,
      etc.);

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

     

    (xxxv) the
      Mortgagor’s debt to income ratio;

     

    (xxxvi) a
      code
      indicating whether the Mortgaged Property is subject to a first lien or a
      subordinate lien;

     

    (xxxvii) a
      code
      indicating the Credit Score of the Mortgagor at the time of origination of
      the
      Mortgage Loan;

     

    (xxxviii) the
      Mortgage Loan payment history in a ticker format;

     

    (xxxix) a
      code
      indicating the form of appraisal (i.e. form 1004, 2055, etc.);

     

    (xl) a
      code
      indicating if the Mortgage Loan is an interest-only Mortgage Loan and, if so,
      the term of the interest-only period of such Mortgage Loan;

     

    (xli) the
      amount of any points and fees payable by the Mortgagor in connection with the
      origination of such Mortgage Loan;

     

    (xlii) the
      amortized original term to maturity as of the Cut-off Date;

     

    (xliii) with
      respect to each Adjustable Rate Mortgage Loan, a code indicating the frequency
      of adjustment of the related Mortgage Interest Rate;

     

    (xliv) the
      number of units in the related Mortgaged Property;

     

    (xlv) a
      code
      indicating whether the related Mortgagor is self-employed; 

     

    (xlvi) a
      code
      indicating the credit grade;

     

    (xlvii) the
      number of months since the Mortgagor’s bankruptcy disposition, if
      applicable;

     

    (xlviii) the
      number of months since foreclosure disposition for the Mortgagor’s previous
      mortgage loan, if applicable;

     

    (xlix) the
      maximum first Adjustment Date Mortgage Rate adjustment;

     

    (l) the
      Servicer’s risk grade;

     

    (li) the
      Servicing Fee Rate for such Mortgage Loan; and

     

    (lii) the
      MIN,
      if applicable.

     

    The
      Mortgage Loan Schedule shall set forth the following information with respect
      to
      the Mortgage Loans in the aggregate as of the Cut-off Date:

     

    (1) the
      number of Mortgage Loans;

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

     

    (2) the
      current Stated Principal Balance of the Mortgage Loans;

     

    (3) the
      weighted average Mortgage Rate of the Mortgage Loans; 

     

    (4) weighted
      average maturity of the Mortgage Loans; and

     

    (5)
       the
      delinquency status.

     

    The
      Mortgage Loan Schedule shall be amended from time to time by the Depositor
      in
      accordance with the provisions of this Agreement. With respect to any Qualified
      Substitute Mortgage Loan, the Cut-off Date shall refer to the related Cut-off
      Date for such Mortgage Loan, determined in accordance with the definition of
      Cut-off Date herein.

     

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

     

    “Mortgage
      Pool”:
      The
      pool of Mortgage Loans, identified on Schedule 1 and existing from time to
      time
      thereafter, and any REO Properties acquired in respect thereof.

     

    “Mortgage
      Rate”:
      With
      respect to each Mortgage Loan, the annual rate at which interest accrues on
      such
      Mortgage Loan from time to time in accordance with the provisions of the related
      Mortgage Note, which rate (i) with respect to each Fixed-Rate Mortgage Loan
      shall remain constant at the rate set forth in the Mortgage Loan Schedule as
      the
      Mortgage Rate in effect immediately following the Cut-off Date and (ii) with
      respect to the Adjustable-Rate Mortgage Loans, (A) as of any date of
      determination until the first Adjustment Date following the Cut-off Date shall
      be the rate set forth in the Mortgage Loan Schedule as the Mortgage Rate in
      effect immediately following the Cut-off Date and (B) as of any date of
      determination thereafter shall be the rate as adjusted on the most recent
      Adjustment Date equal to the sum, rounded as provided in the Mortgage Note,
      of
      the Index, as most recently available as of a date prior to the Adjustment
      Date
      as set forth in the related Mortgage Note, plus
      the
      related Gross Margin; provided that the Mortgage Rate on such Adjustable-Rate
      Mortgage Loan on any Adjustment Date shall never be more than the lesser of
      (i)
      the sum of the Mortgage Rate in effect immediately prior to the Adjustment
      Date
plus
      the
      related Periodic Rate Cap, if any, and (ii) the related Maximum Mortgage Rate,
      and shall never be less than the greater of (i) the Mortgage Rate in effect
      immediately prior to the Adjustment Date less the Periodic Rate Cap, if any,
      and
      (ii) the related Minimum Mortgage Rate. With respect to each Mortgage Loan
      that
      becomes an REO Property, as of any date of determination, the annual rate
      determined in accordance with the immediately preceding sentence as of the
      date
      such Mortgage Loan became an REO Property.

     

    “Mortgaged
      Property”
or
      “Mortgaged
      Properties”:
      The
      underlying property securing a Mortgage Loan, including any REO Property,
      consisting of a fee simple estate in a parcel of land improved by a Residential
      Dwelling.

     

    “Mortgagor”:
      The
      obligor on a Mortgage Note.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    

     

    “Net
      Monthly Excess Cashflow”:
      With
      respect to any Distribution Date, the sum of (i) any Overcollateralization
      Reduction Amount and (ii) the excess of (x) the Available Distribution Amount
      for such Distribution Date over (y) the sum for such Distribution Date of
      (A) the Senior Interest Distribution Amount distributable to the holders of
      the Class A Certificates, (B) the Interest Distribution Amount distributable
      to
      the holders of the Mezzanine Certificates and (C) the Principal Remittance
      Amount.

     

    “Net
      Swap Payment”:
      With
      respect to the Business Day prior to each Distribution Date, the net payment
      required to be made pursuant to the terms of the Swap Agreement by either the
      Swap Counterparty or the Trustee, on behalf of the Trust, which net payment
      shall not take into account any Swap Termination Payment.

     

    “Net
      WAC Pass-Through Rate”:
      With
      respect to the Class A Certificates and the Mezzanine Certificates and any
      Distribution Date, a per annum rate (which will not be less than zero) equal
      to
      the excess, if any, of (a) the product of (i) a per annum rate equal to the
      weighted average of the Expense Adjusted Mortgage Rates on the then outstanding
      Mortgage Loans, weighted on the basis of the respective Stated Principal
      Balances of the Mortgage Loans as of the first day of the related Due Period
      and
      (ii) a fraction expressed as a percentage, the numerator of which is 30 and
      the
      denominator of which is the actual number of days in the related Interest
      Accrual Period, over (b) the product of (i) a fraction expressed as a percentage
      the numerator of which is the amount of any Net Swap Payments owed to the Swap
      Counterparty or Swap Termination Payment owed to the Swap Counterparty not
      due
      to a Swap Counterparty Trigger Event, and the denominator of which is equal
      to
      the Stated Principal Balance of the outstanding Mortgage Loans as of the first
      day of the related Due Period and (ii) a fraction expressed as a
      percentage, the numerator of which is 360 and the denominator of which is the
      actual number of days in the related Interest Accrual Period. For federal income
      tax purposes, however, the foregoing rate shall be expressed as a per annum
      rate
      equal to the weighted average of the REMIC I Remittance Rates on the REMIC
      I
      Regular Interests, weighted on the basis of the Uncertificated Balance of each
      such REMIC I Regular Interests.

     

    “Net
      WAC Rate Carryover Amount”:
      With
      respect to any Class of the Class A Certificates and the Mezzanine Certificates
      and any Distribution Date, the sum of (A) the positive excess of (i) the amount
      of interest that would have accrued on such Class of Certificates for such
      Distribution Date had the Pass-Through Rate been calculated at the related
      Formula Rate (not to exceed 14.50% per annum) over (ii) the amount of interest
      that accrued on such Class of Certificates at the Net WAC Pass-Through Rate
      for
      such Distribution Date and (B) the undistributed portion of any related Net
      WAC
      Rate Carryover Amount from prior Distribution Dates, together with interest
      accrued on such undistributed portion for the most recently ended Interest
      Accrual Period at the Formula Rate (not to exceed 14.50% per annum) applicable
      for such Class of Certificates for such Interest Accrual Period.

     

    “New
      Lease”:
      Any
      lease of REO Property entered into on behalf of REMIC I, including any lease
      renewed or extended on behalf of REMIC I, if REMIC I has the right to
      renegotiate the terms of such lease.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    

     

    “Nonrecoverable
      Advance”:
      Any
      Advance previously made or proposed to be made in respect of a Mortgage Loan
      or
      REO Property that, in the good faith business judgment of the Servicer, will
      not
      or, in the case of a proposed Advance, would not be ultimately recoverable
      from
      related Late Collections, Insurance Proceeds or Liquidation Proceeds on such
      Mortgage Loan or REO Property as provided herein.

     

    “Nonrecoverable
      Servicing Advance”:
      Any
      Servicing Advance previously made or proposed to be made in respect of a
      Mortgage Loan or REO Property that, in the good faith business judgment of
      the
      Servicer, will not or, in the case of a proposed Servicing Advance, would not
      be
      ultimately recoverable from related Late Collections, Insurance Proceeds or
      Liquidation Proceeds on such Mortgage Loan or REO Property as provided
      herein.

     

    “Non-United
      States Person”:
      Any
      Person other than a United States Person.

     

    “Notional
      Amount”:
      With
      respect to the Class CE Certificates and any Distribution Date, the aggregate
      Uncertificated Balance of the REMIC I Regular Interests for such Distribution
      Date.

     

    “Officers’
      Certificate”:
      A
      certificate signed by the Chairman of the Board, the Vice Chairman of the Board,
      the President or a vice president (however denominated), and by the Treasurer,
      the Secretary, or one of the assistant treasurers or assistant secretaries
      of
      the Servicer, the Seller or the Depositor, as applicable.

     

    “One-Month
      LIBOR”:
      With
      respect to the Class A Certificates, the Mezzanine Certificates and for purposes
      of the Marker Rate and Maximum I-LTZZ Uncertificated Interest Deferral Amount,
      REMIC I Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2, REMIC I
      Regular Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I Regular
      Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest
      I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC
      I Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC I Regular
      Interest I-LTM8, REMIC I Regular Interest I-LTM9 and REMIC I Regular Interest
      I-LTM10 and any Interest Accrual Period therefor, the rate determined by the
      Trustee on the related Interest Determination Date on the basis of the offered
      rate for one-month U.S. dollar deposits, as such rate appears on Telerate Page
      3750 as of 11:00 a.m. (London time) on such Interest Determination Date;
      provided that if such rate does not appear on Telerate Page 3750, the rate
      for
      such date will be determined on the basis of the offered rates of the Reference
      Banks for one-month U.S. dollar deposits, as of 11:00 a.m. (London time) on
      such
      Interest Determination Date. In such event, the Trustee will request the
      principal London office of each of the Reference Banks to provide a quotation
      of
      its rate. If on such Interest Determination Date, two or more Reference Banks
      provide such offered quotations, One-Month LIBOR for the related Interest
      Accrual Period shall be the arithmetic mean of such offered quotations (rounded
      upwards if necessary to the nearest whole multiple of 1/16%). If on such
      Interest Determination Date, fewer than two Reference Banks provide such offered
      quotations, One-Month LIBOR for the related Interest Accrual Period shall be
      the
      higher of (i) LIBOR as determined on the previous Interest Determination
      Date and (ii) the Reserve Interest Rate. Notwithstanding the foregoing, if,
      under the priorities described above, LIBOR for an Interest Determination Date
      would be based on LIBOR for the previous Interest Determination Date for the
      third consecutive Interest Determination Date, the Trustee, after consultation
      with the Depositor, shall select an alternative comparable index (over which
      the
      Trustee has no control), used for determining one-month Eurodollar lending
      rates
      that is calculated and published (or otherwise made available) by an independent
      party. The establishment of One-Month LIBOR by the Trustee and the Trustee’s
      subsequent calculation of the interest rates applicable to the Certificates
      for
      the relevant Interest Accrual Period, in the absence of manifest error, shall
      be
      final and binding.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    

     

    “Opinion
      of Counsel”:
      A
      written opinion of counsel, who may, without limitation, be salaried counsel
      for
      the Depositor or the Servicer, acceptable to the Trustee, if such opinion is
      delivered to the Trustee, except that any opinion of counsel relating to (a)
      the
      qualification of any Trust REMIC as a REMIC or (b) compliance with the REMIC
      Provisions must be an opinion of Independent counsel.

     

    “Original
      Mortgage Loan”:
      Any of
      the Mortgage Loans included in REMIC I as of the Closing Date.

     

    “Overcollateralization
      Amount”:
      With
      respect to any Distribution Date, the excess, if any, of (a) the aggregate
      Stated Principal Balances of the Mortgage Loans and REO Properties as of the
      last day of the related Due Period over (b) the aggregate Certificate Principal
      Balance of the Class A Certificates, the Mezzanine Certificates and the Class
      P
      Certificates, after giving effect to distributions to be made on such
      Distribution Date.

     

    “Overcollateralization
      Deficiency Amount”:
      With
      respect to any Distribution Date, the excess, if any, of (a) the
      Overcollateralization Target Amount applicable to such Distribution Date over
      (b) the Overcollateralization Amount applicable to such Distribution Date
      (calculated for this purpose only after assuming that 100% of the Principal
      Remittance Amount on such Distribution Date has been distributed).

     

    “Overcollateralization
      Floor Amount”:
      With
      respect to any Distribution Date, the amount equal to 0.50% of the aggregate
      Stated Principal Balance of the Mortgage Loans as of the Cut-off
      Date.

     

    “Overcollateralization
      Increase Amount”:
      With
      respect to any Distribution Date, the lesser of (a) the Overcollateralization
      Deficiency Amount as of such Distribution Date (calculated for this purpose
      only
      after assuming that 100% of the Principal Remittance Amount on such Distribution
      Date has been distributed) and (b) the sum of (i) the Net Monthly Excess
      Cash Flow for such Distribution Date and (ii) payments made by the Swap
      Counterparty and available for distribution pursuant to Section 4.07(a)(G).

     

    “Overcollateralization
      Reduction Amount”:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      Principal Remittance Amount on such Distribution Date and (b) the Excess
      Overcollateralized Amount.

     

    “Overcollateralization
      Target Amount”:
      With
      respect to any Distribution Date, (i) prior to the Stepdown Date, an amount
      equal to 3.30% of the aggregate outstanding Stated Principal Balance of the
      Mortgage Loans as of the Cut-off Date, (ii) on or after the Stepdown Date
      provided a Trigger Event is not in effect, the greater of (x) 6.60% of the
      then current aggregate outstanding Stated Principal Balance of the Mortgage
      Loans as of the last day of the related Due Period and (y) the
      Overcollateralization Floor Amount, or (iii) on or after the Stepdown Date
      and
      if a Trigger Event is in effect, the Overcollateralization Target Amount for
      the
      immediately preceding Distribution Date. Notwithstanding the foregoing, on
      and
      after any Distribution Date following the reduction of the aggregate Certificate
      Principal Balance of the Class A Certificates, the Mezzanine Certificates and
      the Class P Certificates to zero, the Overcollateralization Target Amount
      shall be zero.

     

    
      
        
        

      

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

     

    “Pass-Through
      Rate”:
      With
      respect to the Class A Certificates and the Mezzanine Certificates and any
      Distribution Date, the least of (x) the related Formula Rate for such
      Distribution Date, (y) the Net WAC Pass-Through Rate for such Distribution
      Date
      and (z) 14.50% per annum. With respect to the Class CE Certificates and any
      Distribution Date, (i) a per annum rate equal to the percentage equivalent
      of a
      fraction, the numerator of which is (x) the sum of the interest on the
      Uncertificated Balance of each REMIC I Regular Interest described in
clause
      (y)
      below
      computed at a rate equal to the related REMIC I Remittance Rate minus
      the
      Marker Rate and the denominator of which is (y) the aggregate Uncertificated
      Balance of REMIC I Regular Interest I-LTAA, I-LTA1, I-LTA2, I-LTA3, I-LTA4,
      I-LTM1, I-LTM2, I-LTM3, I-LTM4, I-LTM5, I-LTM6, I-LTM7, I-LTM8, I-LTM9, I-LTM10
      and I-LTZZ and (ii) 100% of the interest on REMIC I Regular Interest I-LTP,
      expressed as a per annum rate.

     

    “Percentage
      Interest”:
      With
      respect to any Class of Certificates (other than the Residual Certificates),
      the
      undivided percentage ownership in such Class evidenced by such Certificate,
      expressed as a percentage, the numerator of which is the initial Certificate
      Principal Balance or Notional Amount represented by such Certificate and the
      denominator of which is the aggregate initial Certificate Principal Balance
      or
      initial Notional Amount of all of the Certificates of such Class. The Class
      A
      Certificates and the Class M-1 Certificates are issuable only in minimum
      Percentage Interests corresponding to minimum initial Certificate Principal
      Balances of $100,000 and integral multiples of $1.00 in excess thereof. The
      Mezzanine Certificates (other than the Class M-1 Certificates) are issuable
      only
      in minimum Percentage Interests corresponding to minimum initial Certificate
      Principal Balances of $250,000 and integral multiples of $1 in excess thereof.
      The Class P Certificates are issuable only in Percentage Interests corresponding
      to initial Certificate Principal Balances of $20 and integral multiples thereof.
      The Class CE Certificates are issuable only in minimum Percentage Interests
      corresponding to minimum initial Certificate Principal Balances of $100,000
      and
      integral multiples of $1.00 in excess thereof; provided,
      however,
      that a
      single Certificate of each such Class of Certificates may be issued having
      a
      Percentage Interest corresponding to the remainder of the aggregate initial
      Certificate Principal Balance or Notional Amount of such Class or to an
      otherwise authorized denomination for such Class plus
      such
      remainder. With respect to any Residual Certificate, the undivided percentage
      ownership in such Class evidenced by such Certificate, as set forth on the
      face
      of such Certificate. The Residual Certificates are issuable in Percentage
      Interests of 20% and multiples thereof.

     

    
      
        
        

      

      
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    “Perfection
      Representations”:
      The
      representations, warranties and covenants set forth in Schedule 3 attached
      hereto.

     

    “Periodic
      Rate Cap”:
      With
      respect to each Adjustable-Rate Mortgage Loan and any Adjustment Date therefor,
      the fixed percentage set forth in the related Mortgage Note, which is the
      maximum amount by which the Mortgage Rate for such Mortgage Loan may increase
      or
      decrease (without regard to the Maximum Mortgage Rate or the Minimum Mortgage
      Rate) on such Adjustment Date from the Mortgage Rate in effect immediately
      prior
      to such Adjustment Date.

     

    “Permitted
      Investments”:
      Any
      one or more of the following obligations or securities acquired at a purchase
      price of not greater than par, regardless of whether issued or managed by the
      Depositor, the Servicer, the Trustee or any of their respective
      Affiliates:

     

    (i) direct
      obligations of, or obligations fully guaranteed as to timely payment of
      principal and interest by, the United States or any agency or instrumentality
      thereof, provided such obligations are backed by the full faith and credit
      of
      the United States;

     

    (ii) demand
      and time deposits in, certificates of deposit of, or bankers’ acceptances issued
      by, any Depository Institution;

     

    (iii) repurchase
      obligations with respect to any security described in clause
      (i)
      above
      entered into with a Depository Institution (acting as principal);

     

    (iv) securities
      bearing interest or sold at a discount that are issued by any corporation
      incorporated under the laws of the United States of America or any state thereof
      and that are rated by each Rating Agency that rates such securities in its
      highest long-term unsecured rating categories at the time of such investment
      or
      contractual commitment providing for such investment, which securities mature
      in
      365 days or less;

     

    (v) commercial
      paper (including both non-interest-bearing discount obligations and
      interest-bearing obligations payable on demand or on a specified date not more
      than 30 days after the date of acquisition thereof) that is rated by each Rating
      Agency that rates such securities in its highest short-term unsecured debt
      rating available at the time of such investment;

     

    (vi) units
      of
      money market funds, including those managed or advised by the Trustee or its
      Affiliates, that have been rated “AAA” by Fitch (if rated by Fitch) and “AAAm”
or “AAAm-G” by S&P and “Aaa” by Moody’s; and

     

    (vii) if
      previously confirmed in writing to the Trustee, any other demand, money market
      or time deposit, or any other obligation, security or investment, as may be
      acceptable to the Rating Agencies as a permitted investment of funds backing
      securities having ratings equivalent to its highest initial rating of the Class
      A Certificates;

     

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

     

    
      
        
        

      

      
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    “Permitted
      Transferee”:
      Any
      Transferee of a Residual Certificate other than a Disqualified Organization
      or
      Non-United States Person.

     

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

     

    “Plan”:
      Any
“employee benefit plan” as defined in Section 3(3) of ERISA that is subject to
      Title I of ERISA, any “plan” as defined in Section 4975(e)(1) of the Code that
      is subject to Section 4975 of the Code or any entity deemed to hold plan assets
      of any of the foregoing.

     

    “Posted
      Collateral Account”:
      The
      separate account created and maintained by the Trustee pursuant to Section
      4.07(e).

     

    “Prepayment
      Assumption”:
      As
      defined in the Prospectus Supplement.

     

    “Prepayment
      Charge”:
      With
      respect to any Prepayment Period, any prepayment premium, penalty or charge
      payable by a Mortgagor in connection with any Principal Prepayment on a Mortgage
      Loan pursuant to the terms of the related Mortgage Note (other than any Servicer
      Prepayment Charge Payment Amount).

     

    “Prepayment
      Charge Schedule”:
      As of
      any date, the list of Prepayment Charges included in the Trust Fund on such
      date, attached hereto as Schedule
      2
      (including the prepayment charge summary attached thereto). The Prepayment
      Charge Schedule shall set forth the following information with respect to each
      Prepayment Charge:

     

    (i) the
      Mortgage Loan identifying number;

     

    (ii) a
      code
      indicating the type of Prepayment Charge;

     

    (iii) the
      date
      on which the first Monthly Payment was due on the related Mortgage
      Loan;

     

    (iv) the
      term
      of the related Prepayment Charge;

     

    (v) the
      original Stated Principal Balance of the related Mortgage Loan; and

     

    (vi) remaining
      prepayment term in months.

     

    “Prepayment
      Interest Shortfall”:
      With
      respect to any Distribution Date, for each Mortgage Loan that was the subject
      of
      a Principal Prepayment in full or in part during the portion of the related
      Prepayment Period occurring between the first day of the related Prepayment
      Period and the last day of the calendar month preceding the month in which
      such
      Distribution Date occurs, an amount equal to interest at the applicable Expense
      Adjusted Mortgage Rate on the amount of such Principal Prepayment for the number
      of days commencing on the date on which the prepayment is applied and ending
      on
      the last day of the calendar month preceding the month in which such
      Distribution Date occurs. The obligations of the Servicer in respect of any
      Prepayment Interest Shortfall are set forth in Section
      3.24
      hereof.

     

    
      
        
        

      

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

     

    “Program
      Guide”:
      Collectively, the Client Guide and the Servicer Guide for Residential Funding
      Company, LLC’s mortgage loan purchase and conduit servicing program and all
      supplements and amendments thereto published by Residential Funding Company,
      LLC
      from time to time.

     

    “Principal
      Distribution Amount”:
      With
      respect to any Distribution Date, an amount, not less than zero, equal to the
      sum of:

     

    (i) the
      principal portion of each Monthly Payment on the Mortgage Loans due during
      the
      related Due Period, actually received on or prior to the related Determination
      Date or Advanced on or prior to the related Distribution Date;

     

    (ii) the
      Stated Principal Balance of any Mortgage Loan that was purchased during the
      related Prepayment Period pursuant to or as contemplated by Section
      2.03,
      Section
      3.16(c)
      or
Section
      9.01
      and the
      amount of any shortfall deposited in the Custodial Account in connection with
      the substitution of a Deleted Mortgage Loan pursuant to Section
      2.03
      during
      the related Prepayment Period;

     

    (iii) the
      principal portion of all other unscheduled collections (including, without
      limitation, Principal Prepayments, Insurance Proceeds, Liquidation Proceeds,
      Subsequent Recoveries and REO Principal Amortization) received during the
      related Prepayment Period, net of any portion thereof that represents a recovery
      of principal for which an Advance was made by the Servicer pursuant to
Section
      4.03
      in
      respect of a preceding Distribution Date; and

     

    (iv) the
      amount of any Overcollateralization Increase Amount for such Distribution Date;
      minus

     

    (v) the
      amount of any Overcollateralization Reduction Amount for such Distribution
      Date;
      and 

     

    (vi) any
      Swap
      Payment Shortfall for such Distribution Date.

     

    “Principal
      Prepayment”:
      Any
      payment of principal made by the Mortgagor on a Mortgage Loan which is received
      in advance of its scheduled Due Date and which is not accompanied by an amount
      of interest representing the full amount of scheduled interest due on any Due
      Date in any month or months subsequent to the month of prepayment.

     

    
      
        
        

      

      
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    “Principal
      Remittance Amount”:
      With
      respect to any Distribution Date, the sum of the amounts set forth in (i)
      through (iii) of the definition of Principal Distribution Amount.

     

    “Private
      Certificates”:
      As
      defined in Section
      5.02(b).

     

    “Prospectus
      Supplement”:
      The
      Prospectus Supplement, dated January 22, 2007, relating to the public offering
      of the Class A Certificates and the Mezzanine Certificates (other than the
      Class
      M-10 Certificates).

     

    “PTCE”:
      A
      Prohibited Transaction Class Exemption issued by the United States Department
      of
      Labor which provides that exemptive relief is available to any party to any
      transaction which satisfies the conditions of the exemption.

     

    “Purchase
      Price”:
      With
      respect to any Mortgage Loan or REO Property to be purchased pursuant to or
      as
      contemplated by Section
      2.03,
      Section
      3.16(c)
      or
Section
      9.01,
      and as
      confirmed by a certification from a Servicing Officer to the Trustee, an amount
      equal to the sum of (i) 100% of the Stated Principal Balance thereof as of
      the
      date of purchase (or such other price as provided in Section
      9.01),
      (ii)
      in the case of (x) a Mortgage Loan, accrued interest on such Stated Principal
      Balance at the applicable Expense Adjusted Mortgage Rate in effect from time
      to
      time from the Due Date as to which interest was last covered by a payment by
      the
      Mortgagor or an Advance by the Servicer, which payment or Advance had as of
      the
      date of purchase been distributed pursuant to Section
      4.01,
      through
      the end of the calendar month in which the purchase is to be effected
plus
      and (y)
      an REO Property, the sum of (1) accrued interest on such Stated Principal
      Balance at the applicable Expense Adjusted Mortgage Rate in effect from time
      to
      time from the Due Date as to which interest was last covered by a payment by
      the
      Mortgagor or an Advance by the Servicer through the end of the calendar month
      immediately preceding the calendar month in which such REO Property was
      acquired, plus
      (2) REO
      Imputed Interest for such REO Property for each calendar month commencing with
      the calendar month in which such REO Property was acquired and ending with
      the
      calendar month in which such purchase is to be effected, net of the total of
      all
      net rental income, Insurance Proceeds, Liquidation Proceeds and Advances that
      as
      of the date of purchase had been distributed as or to cover REO Imputed Interest
      pursuant to Section
      4.01,
      (iii)
      any unreimbursed Servicing Advances and Advances (including Nonrecoverable
      Advances and Nonrecoverable Servicing Advances) and any unpaid Servicing Fees
      allocable to such Mortgage Loan or REO Property, (iv) any amounts previously
      withdrawn from the Custodial Account in respect of such Mortgage Loan or REO
      Property pursuant to Section
      3.11(a)(ix)
      and
Section
      3.16(b),
      and (v)
      in the case of a Mortgage Loan required to be purchased pursuant to Section
      2.03,
      expenses reasonably incurred or to be incurred by the Servicer or the Trustee
      in
      respect of the breach or defect giving rise to the purchase obligation including
      any costs and damages incurred by the Trust Fund in connection with any
      violation by such loan of any predatory or abusive lending law.

     

    
      
        
        

      

      
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    “Qualified
      Correspondent”:
      Any
      Person from which the Servicer purchased Mortgage Loans, provided that the
      following conditions are satisfied: (i) such Mortgage Loans were originated
      pursuant to an agreement between the Servicer and such Person that contemplated
      that such Person would underwrite mortgage loans from time to time, for sale
      to
      the Servicer, in accordance with underwriting guidelines designated by the
      Servicer (“Designated Guidelines”) or guidelines that do not vary materially
      from such Designated Guidelines; (ii) such Mortgage Loans were in fact
      underwritten as described in clause (i) above and were acquired by the Servicer
      within 180 days after origination; (iii) either (x) the Designated Guidelines
      were, at the time such Mortgage Loans were originated, used by the Servicer
      in
      origination of mortgage loans of the same type as the Mortgage Loans for the
      Servicer’s own account or (y) the Designated Guidelines were, at the time such
      Mortgage Loans were underwritten, designated by the Servicer on a consistent
      basis for use by lenders in originating mortgage loans to be purchased by the
      Servicer; and (iv) the Servicer employed, at the time such Mortgage Loans were
      acquired by the Servicer, pre-purchase or post-purchase quality assurance
      procedures (which may involve, among other things, review of a sample of
      mortgage loans purchased during a particular time period or through particular
      channels) designed to ensure that Persons from which it purchased mortgage
      loans
      properly applied the underwriting criteria designated by the
      Servicer.

     

    “Qualified
      Substitute Mortgage Loan”:
      A
      mortgage loan substituted for a Deleted Mortgage Loan pursuant to the terms
      of
      this Agreement which must, on the date of such substitution, (i) have an
      outstanding Stated Principal Balance, after application of all scheduled
      payments of principal and interest due during or prior to the month of
      substitution, not in excess of the Stated Principal Balance of the Deleted
      Mortgage Loan as of the Due Date in the calendar month during which the
      substitution occurs, (ii) have a Mortgage Rate not less than (and not more
      than
      one percentage point in excess of) the Mortgage Rate of the Deleted Mortgage
      Loan, (iii) with respect to any Adjustable-Rate Mortgage Loan, have a Maximum
      Mortgage Rate not less than the Maximum Mortgage Rate on the Deleted Mortgage
      Loan, (iv) with respect to any Adjustable-Rate Mortgage Loan, have a Minimum
      Mortgage Rate not less than the Minimum Mortgage Rate of the Deleted Mortgage
      Loan, (v) with respect to any Adjustable-Rate Mortgage Loan, have a Gross Margin
      equal to the Gross Margin of the Deleted Mortgage Loan, (vi) with respect to
      any
      Adjustable-Rate Mortgage Loan, have a next Adjustment Date not more than two
      months later than the next Adjustment Date on the Deleted Mortgage Loan, (vii)
      have a remaining term to maturity not greater than (and not more than one year
      less than) that of the Deleted Mortgage Loan, (viii) have the same Due Date
      as
      the Due Date on the Deleted Mortgage Loan, (ix) have a Loan-to-Value Ratio
      as of
      the date of substitution equal to or lower than the Loan-to-Value Ratio of
      the
      Deleted Mortgage Loan as of such date, (x) have a risk grading determined by
      RFC
      at least equal to the risk grading assigned on the Deleted Mortgage Loan and
      (xi) conform to each representation and warranty set forth in Section 6 of
      the
      Mortgage Loan Purchase Agreement applicable to the Deleted Mortgage Loan. In
      the
      event that one or more mortgage loans are substituted for one or more Deleted
      Mortgage Loans, the amounts described in clause
      (i)
      hereof
      shall be determined on the basis of aggregate principal balances, the Mortgage
      Rates described in clause
      (ii)
      hereof
      shall be determined on the basis of weighted average Mortgage Rates, the terms
      described in clause
      (vii)
      hereof
      shall be determined on the basis of weighted average remaining term to maturity,
      the Loan-to-Value Ratios described in clause
      (ix)
      hereof
      shall be satisfied as to each such mortgage loan, the risk gradings described
      in
clause
      (x)
      hereof
      shall be satisfied as to each such mortgage loan and, except to the extent
      otherwise provided in this sentence, the representations and warranties
      described in clause
      (xi)
      hereof
      must be satisfied as to each Qualified Substitute Mortgage Loan or in the
      aggregate, as the case may be.

     

    
      
        
        

      

      
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    “Rate/Term
      Refinancing”:
      A
      Refinanced Mortgage Loan, the proceeds of which are not more than a nominal
      amount in excess of the existing first mortgage loan and any subordinate
      mortgage loan on the related Mortgaged Property and related closing costs,
      and
      were used exclusively (except for such nominal amount) to satisfy the then
      existing first mortgage loan and any subordinate mortgage loan of the Mortgagor
      on the related Mortgaged Property and to pay related closing costs.

     

    “Rating
      Agency or Rating Agencies”:
      Fitch,
      Moody’s and S&P or their successors. If such agencies or their successors
      are no longer in existence, “Rating Agencies” shall be such nationally
      recognized statistical rating agencies, or other comparable Persons, designated
      by the Depositor, notice of which designation shall be given to the Trustee
      and
      the Servicer.

     

    “Realized
      Loss”:
      With
      respect to each Mortgage Loan as to which a Final Recovery Determination has
      been made, an amount (not less than zero) equal to (i) the unpaid principal
      balance of such Mortgage Loan as of the commencement of the calendar month
      in
      which the Final Recovery Determination was made, plus
      (ii)
      accrued interest from the Due Date as to which interest was last paid by the
      Mortgagor through the end of the calendar month in which such Final Recovery
      Determination was made, calculated in the case of each calendar month during
      such period (A) at an annual rate equal to the annual rate at which interest
      was
      then accruing on such Mortgage Loan and (B) on a principal amount equal to
      the
      Stated Principal Balance of such Mortgage Loan as of the close of business
      on
      the Distribution Date during such calendar month, plus
      (iii)
      any amounts previously withdrawn from the Custodial Account in respect of such
      Mortgage Loan pursuant to Section
      3.11(a)(ix)
      and
Section
      3.16(b),
      minus
      (iv) the
      proceeds, if any, received in respect of such Mortgage Loan during the calendar
      month in which such Final Recovery Determination was made, net of amounts that
      are payable therefrom to the Servicer with respect to such Mortgage Loan
      pursuant to Section
      3.11(a)(iii);
      plus
      (v) Swap
      Payment Shortfall.

     

    With
      respect to any REO Property as to which a Final Recovery Determination has
      been
      made, an amount (not less than zero) equal to (i) the unpaid principal balance
      of the related Mortgage Loan as of the date of acquisition of such REO Property
      on behalf of REMIC I, plus
      (ii)
      accrued interest from the Due Date as to which interest was last paid by the
      Mortgagor in respect of the related Mortgage Loan through the end of the
      calendar month immediately preceding the calendar month in which such REO
      Property was acquired, calculated in the case of each calendar month during
      such
      period (A) at an annual rate equal to the annual rate at which interest was
      then
      accruing on the related Mortgage Loan and (B) on a principal amount equal to
      the
      Stated Principal Balance of the related Mortgage Loan as of the close of
      business on the Distribution Date during such calendar month, plus
      (iii)
      REO Imputed Interest for such REO Property for each calendar month commencing
      with the calendar month in which such REO Property was acquired and ending
      with
      the calendar month in which such Final Recovery Determination was made,
plus
      (iv) any
      amounts previously withdrawn from the Custodial Account in respect of the
      related Mortgage Loan pursuant to Section
      3.11(a)(ix)
      and
Section 3.16(b),
      minus
      (v)
      the
      aggregate of all Advances and Servicing Advances (in the case of Servicing
      Advances, without duplication of amounts netted out of the rental income,
      Insurance Proceeds and Liquidation Proceeds described in clause
      (vi)
      below)
      made by the Servicer in respect of such REO Property or the related Mortgage
      Loan for which the Servicer has been or, in connection with such Final Recovery
      Determination, will be reimbursed pursuant to Section 3.23
      out of
      rental income, Insurance Proceeds and Liquidation Proceeds received in respect
      of such REO Property, minus
      (vi)
      the
      total of all net rental income, Insurance Proceeds and Liquidation Proceeds
      received in respect of such REO Property that has been, or in connection with
      such Final Recovery Determination, will be transferred to the Certificate
      Account pursuant to Section
      3.23.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    

     

    With
      respect to each Mortgage Loan which has become the subject of a Deficient
      Valuation, 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 which has become the subject of a Debt Service
      Reduction, the portion, if any, of the reduction in each affected Monthly
      Payment attributable to a reduction in the Mortgage Rate imposed by a court
      of
      competent jurisdiction. Each such Realized Loss shall be deemed to have been
      incurred on the Due Date for each affected Monthly Payment.

     

    With
      respect to any allocation of a Realized Loss to a Certificate related to a
      Swap
      Payment Shortfall, such Realized Loss will be made by reducing the Certificate
      Principal Balance of that Certificate by the amount so allocated as of the
      Distribution Date in the month in which the Swap Payment Shortfall was
      incurred.

     

    If
      the
      Servicer receives Subsequent Recoveries with respect to any Mortgage Loan,
      the
      amount of the Realized Loss with respect to that Mortgage Loan will be reduced
      to the extent such recoveries are applied to principal distributions on any
      Distribution Date.

     

    Realized
      Losses allocated to the Class CE Certificates shall be allocated first to the
      REMIC II Regular Interest CE-IO in reduction of the accrued but unpaid interest
      thereon until such accrued and unpaid interest shall have been reduced to zero
      and then to the REMIC II Regular Interest CE-PO in reduction of the Principal
      Balance thereof.

     

    “Record
      Date”:
      With
      respect to each Distribution Date and any Book-Entry Certificate, the Business
      Day immediately preceding such Distribution Date. With respect to each
      Distribution Date and any other Certificates, including any Definitive
      Certificates, the last Business Day of the month immediately preceding the
      month
      in which such Distribution Date occurs, except in the case of the first Record
      Date which shall be the Closing Date.

     

    “Reference
      Banks”:
      Deutsche Bank AG, Barclays’ Bank PLC, The Tokyo Mitsubishi Bank and National
      Westminster Bank PLC and their successors in interest; provided,
      however,
      that if
      any of the foregoing banks are not suitable to serve as a Reference Bank, then
      any leading banks selected by the Trustee, after consultation with the
      Depositor, which are engaged in transactions in Eurodollar deposits in the
      international Eurocurrency market (i) with an established place of business
      in
      London and (ii) not controlling, under the control of or under common control
      with the Depositor or any Affiliate thereof.

     

    
      
        
        

      

      
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    “Refinanced
      Mortgage Loan”:
      A
      Mortgage Loan the proceeds of which were not used to purchase the related
      Mortgaged Property.

     

    “Regular
      Certificate”:
      Any
      Class A Certificate, Mezzanine Certificate, Class CE Certificate or Class P
      Certificate.

     

    “Regular
      Interest”:
      A
“regular interest” in a REMIC within the meaning of Section 860G(a)(1) of the
      Code.

     

    “Regulation
      AB”:
      Subpart 229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§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.

     

    “Relief
      Act”:
      The
      Servicemembers Civil Relief Act.

     

    “Relief
      Act Interest Shortfall”:
      With
      respect to any Distribution Date and any Mortgage Loan, any reduction in the
      amount of interest collectible on such Mortgage Loan for the most recently
      ended
      calendar month as a result of the application of the Relief Act.

     

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

     

    “REMIC
      I”:
      The
      segregated pool of assets subject hereto (exclusive of the Swap Account and
      the
      Swap Agreement, each of which is not an asset of any REMIC), constituting the
      primary trust created hereby and to be administered hereunder, with respect
      to
      which a REMIC election is to be made, consisting of: (i) such Mortgage Loans
      and
      Prepayment Charges related thereto 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
      Depositor’s rights under the Mortgage Loan Purchase Agreement (including any
      security interest created thereby); and (v) the Custodial Account (other than
      any amounts representing any Servicer Prepayment Charge Payment Amount), the
      Certificate Account (other than any amounts representing any Servicer Prepayment
      Charge Payment Amount) and any REO Account, and such assets that are deposited
      therein from time to time and any investments thereof, together with any and
      all
      income, proceeds and payments with respect thereto. Notwithstanding the
      foregoing, however, REMIC I specifically excludes all payments and other
      collections of principal and interest due on the Mortgage Loans on or before
      the
      Cut-off Date and all Prepayment Charges payable in connection with Principal
      Prepayments on the Mortgage Loans made before the Cut-off Date.

     

    “REMIC
      I 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 Mortgage Loans and REO Properties
      then
      outstanding and (ii) the REMIC I Remittance Rate for REMIC I Regular Interest
      I-LTAA minus
      the
      Marker Rate, divided by (b) 12.

     

    
      
        
        

      

      
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    “REMIC
      I Overcollateralized Amount”:
      With
      respect to any date of determination, (i) 1% of the aggregate Uncertificated
      Balance of the REMIC I Regular Interests (other than REMIC I Regular Interest
      I-LTP) minus
      (ii) the
      aggregate Uncertificated Balance of REMIC I Regular Interest I-LTA1, REMIC
      I
      Regular Interest I-LTA2, REMIC I Regular Interest I-LTA3, REMIC I Regular
      Interest I-LTA4, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest
      I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC
      I Regular Interest I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I Regular
      Interest I-LTM7, REMIC I Regular Interest I-LTM8, REMIC I Regular Interest
      I-LTM9, REMIC I Regular Interest I-LTM10, in each case as of such date of
      determination.

     

    “REMIC
      I Principal Loss Allocation Amount”:
      With
      respect to any Distribution Date, an amount equal to the product of (i) the
      aggregate Stated Principal Balance of the Mortgage Loans and REO Properties
      then
      outstanding and (ii) 1 minus
      a
      fraction, the numerator of which is two times the aggregate Uncertificated
      Balance of REMIC I Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2,
      REMIC I Regular Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I
      Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular
      Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest
      I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC
      I Regular Interest I-LTM8, REMIC I Regular Interest I-LTM9 and REMIC I Regular
      Interest I-LTM10 and the denominator of which is the aggregate Uncertificated
      Balance of REMIC I Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2,
      REMIC I Regular Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I
      Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular
      Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest
      I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC
      I Regular Interest I-LTM8, REMIC I Regular Interest I-LTM9, REMIC I Regular
      Interest I-LTM10 and REMIC I Regular Interest I-LTZZ.

     

    “REMIC
      I Regular Interest”:
      Any of
      the separate non-certificated beneficial ownership interests in REMIC I issued
      hereunder and designated as a “regular interest” in REMIC I. Each REMIC I
      Regular Interest shall accrue interest at the related REMIC I Remittance Rate
      in
      effect from time to time or shall otherwise be entitled to interest as set
      forth
      herein, and shall be entitled to distributions of principal, subject to the
      terms and conditions hereof, in an aggregate amount equal to its initial
      Uncertificated Balance as set forth in the Preliminary
      Statement
      hereto.
      The REMIC I Regular Interests are as follows: REMIC I Regular Interest I-LTAA,
      REMIC I Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2, REMIC I
      Regular Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I Regular
      Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest
      I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC
      I Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC I Regular
      Interest I-LTM8, REMIC I Regular Interest I-LTM9, REMIC I Regular Interest
      I-LTM10, REMIC I Regular Interest I-LTZZ and REMIC I Regular Interest
      I-LTP.

     

    
      
        
        

      

      
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    “REMIC
      I Remittance Rate”:
      With
      respect to each REMIC I Regular Interest and any Distribution Date, the weighted
      average of the Expense Adjusted Mortgage Rates of the Mortgage Loans, weighted
      based on their Stated Principal Balances as of the first day of the related
      Due
      Period.

     

    “REMIC
      I Required Overcollateralized Amount”:
      1% of
      the Overcollateralization Target Amount.

     

    “REMIC
      II”:
      The
      segregated pool of assets consisting of all of the REMIC I Regular Interests
      conveyed in trust to the Trustee, for the benefit of the Class A Certificates,
      the Mezzanine Certificates, the Class CE Certificates, the Class P Certificates
      and the Class R-II Interest and all amounts deposited therein, with respect
      to
      which a separate REMIC election is to be made.

     

    “REMIC
      II Regular Interests”:
      Any
      Regular Interest issued by REMIC II, the ownership of which is evidenced by
      a
      Class A Certificate, Mezzanine Certificate or Class CE Certificate.

     

    “REMIC
      II Regular Interest CE-IO”:
      A
      separate non-certificated regular interest of REMIC II designated as a REMIC
      II
      Regular Interest. REMIC II Regular Interest CE-IO shall have no entitlement
      to
      principal and shall be entitled to distributions of interest subject to the
      terms and conditions hereof, in an aggregate amount equal to interest
      distributable with respect to the Class CE Certificates pursuant to the terms
      and conditions hereof.

     

    “REMIC
      II Regular Interest CE-PO”:
      A
      separate non-certificated regular interest of REMIC II designated as a REMIC
      II
      Regular Interest. REMIC II Regular Interest CE-PO shall have no entitlement
      to
      interest and shall be entitled to distributions of principal subject to the
      terms and conditions hereof, in an aggregate amount equal to principal
      distributable with respect to the Class CE Certificates pursuant to the terms
      and conditions hereof.

     

    “REMIC
      Provisions”:
      Provisions of the federal income tax law relating to real estate mortgage
      investment conduits, which appear at Section 860A through 860G of the Code,
      and
      related provisions, and proposed, temporary and final regulations and published
      rulings, notices and announcements promulgated thereunder, as the foregoing
      may
      be in effect from time to time.

     

    “Remittance
      Report”:
      A
      report in form and substance acceptable to the Trustee on an electronic data
      file or tape prepared by the Servicer pursuant to Section
      4.03
      containing the data elements specified on Schedule 4, hereto, with such
      additions, deletions and modifications as agreed to by the Trustee and the
      Servicer.

     

    “Rents
      from Real Property”:
      With
      respect to any REO Property, gross income of the character described in Section
      856(d) of the Code as being included in the term “rents from real
      property.”

     

    “REO
      Account”:
      The
      account or accounts maintained, or caused to be maintained, by the Servicer
      in
      respect of an REO Property pursuant to Section
      3.23.

     

    
      
        
        

      

      
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    “REO
      Disposition”:
      The
      sale or other disposition of an REO Property on behalf of REMIC I.

     

    “REO
      Imputed Interest”:
      As to
      any REO Property, for any calendar month during which such REO Property was
      at
      any time part of REMIC I, one month’s interest at the applicable Expense
      Adjusted Mortgage Rate on the Stated Principal Balance of such REO Property
      (or,
      in the case of the first such calendar month, of the related Mortgage Loan,
      if
      appropriate) as of the close of business on the Distribution Date in such
      calendar month.

     

    “REO
      Principal Amortization”:
      With
      respect to any REO Property, for any calendar month, the excess, if any, of
      (a)
      the aggregate of all amounts received in respect of such REO Property during
      such calendar month, whether in the form of rental income, sale proceeds
      (including, without limitation, that portion of the Termination Price paid
      in
      connection with a purchase of all of the Mortgage Loans and REO Properties
      pursuant to Section
      9.01
      that is
      allocable to such REO Property) or otherwise, net of any portion of such amounts
      (i) payable pursuant to Section
      3.23(c)
      in
      respect of the proper operation, management and maintenance of such REO Property
      or (ii) payable or reimbursable to the Servicer pursuant to Section
      3.23(d)
      for
      unpaid Servicing Fees in respect of the related Mortgage Loan and unreimbursed
      Servicing Advances and Advances in respect of such REO Property or the related
      Mortgage Loan, over (b) the REO Imputed Interest in respect of such REO
      Property for such calendar month.

     

    “REO
      Property”:
      A
      Mortgaged Property acquired by the Servicer on behalf of REMIC I through
      foreclosure or deed-in-lieu of foreclosure, as described in Section
      3.23.

     

    “Request
      for Release”:
      A
      release signed by a Servicing Officer, in the form of Exhibit
      E attached
      hereto.

     

    “Reserve
      Interest Rate”:
      With
      respect to any Interest Determination Date, the rate per annum that the Trustee
      determines to be either (i) the arithmetic mean (rounded upwards if necessary
      to
      the nearest whole multiple of 1/16%) of the one-month U.S. dollar lending rates
      which New York City banks selected by the Trustee, after consultation with
      the
      Depositor, are quoting on the relevant Interest Determination Date to the
      principal London offices of leading banks in the London interbank market or
      (ii)
      in the event that the Trustee can determine no such arithmetic mean, the lowest
      one-month U.S. dollar lending rate which New York City banks selected by the
      Trustee, after consultation with the Depositor, are quoting on such Interest
      Determination Date to leading European banks.

     

    “Residential
      Dwelling”:
      Any
      one of the following: (i) an attached, detached or semi-detached one-family
      dwelling, (ii) an attached, detached or semi-detached two-to four-family
      dwelling, (iii) a one-family dwelling unit in a Fannie Mae eligible condominium
      project, or (iv) an attached, detached or semi-detached one-family dwelling
      in a planned unit development, none of which is a co-operative or mobile home
      (as defined in 42 United States Code, Section 5402(6)).

     

    “Residual
      Certificates”:
      The
      Class R Certificates.

     

    
      
        
        

      

      
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    “Residual
      Interest”:
      The
      sole class of “residual interests” in a REMIC within the meaning of Section
      860G(a)(2) of the Code.

     

    “Responsible
      Officer”:
      When
      used with respect to the Trustee, any vice president, managing director,
      director, any assistant vice president, the Secretary, any assistant secretary,
      the Treasurer, any assistant treasurer, any associate, any trust officer or
      assistant trust officer or any other officer of the Trustee having direct
      responsibility over this Agreement or otherwise engaged in performing functions
      similar to those performed by any of the above designated officers and, with
      respect to a particular matter, to whom such matter is referred because of
      such
      officer’s knowledge of and familiarity with the particular subject.

     

    “RFC”:
      Residential Funding Company, LLC, a Delaware limited liability
      company.

     

    “Rolling
      Three-Month Delinquency Average”:
      With
      respect to any Distribution Date, the average aggregate unpaid principal balance
      of the Mortgage Loans delinquent 60 days or more (including Mortgage Loans
      that
      (i) are in foreclosure, (ii) have been converted to REO Properties or (iii)
      have
      been discharged due to bankruptcy) for each of the three (or one and two, in
      the
      case of the Distribution Dates in February 2007 and March 2007, respectively)
      immediately preceding months. 

     

    “S&P”:
      Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies,
      Inc., or its successor in interest.

     

    “Sarbanes
      Certification”:
      As
      defined in Section 12.05(a)(iv).

     

    “Securitization
      Transaction”:
      Any
      transaction involving either (1) a sale or other transfer of some or all of
      the
      Mortgage Loans directly or indirectly to an issuing entity in connection with
      an
      issuance of publicly offered or privately placed, rated or unrated
      mortgage-backed securities or (2) an issuance of publicly offered or privately
      placed, rated or unrated securities, the payments on which are determined
      primarily by reference to one or more portfolios of residential mortgage loans
      consisting, in whole or in part, of some or all of the Mortgage
      Loans.

     

    “Second
      Lien”:
      With
      respect to each Mortgaged Property, the lien of the mortgage, deed of trust,
      or
      other instrument securing a Mortgage Loan that creates a second lien on the
      Mortgaged Property.

     

    “Second
      Lien Mortgage Loan”:
      A
      Mortgage Loan secured by the lien on the Mortgaged Property, subject to one
      prior lien on such Mortgaged Property securing financing obtained by the related
      Mortgagor.

     

    “Seller”:
      Carrington Securities, LP, a Delaware limited partnership, or its successor
      in
      interest, in its capacity as seller under the Mortgage Loan Purchase
      Agreement.

     

    “Senior
      Interest Distribution Amount”:
      With
      respect to any Distribution Date, an amount equal to the sum of (i) the Interest
      Distribution Amount for such Distribution Date for the Class A Certificates
      and
      (ii) the Interest Carry Forward Amount, if any, for such Distribution Date
      for
      the Class A Certificates.

     

    
      
        
        

      

      
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    “Servicer”:
      Residential Funding Company, LLC, a Delaware limited liability
      company,
      or any
      successor servicer appointed as herein provided, in its capacity as Servicer
      hereunder.

     

    “Servicer
      Event of Default”:
      One or
      more of the events described in Section
      7.01.

     

    “Servicer
      Information”:
      As
      defined in Section 12.07(a)(i).

     

    “Servicer
      Prepayment Charge Payment Amount”:
      The
      amounts payable by the Servicer in respect of any waived Prepayment Charges
      pursuant to Section
      3.01.

     

    “Servicer
      Remittance Date”:
      With
      respect to any Distribution Date, by 1:00 p.m. New York time on the Business
      Day
      preceding the related Distribution Date.

     

     

    “Servicer
      Termination Test”:
      The
      Servicer Termination Test will be failed with respect to any Distribution Date
      if the aggregate amount of Realized Losses (other than Realized Losses which
      are
      Swap Payment Shortfalls, if any) incurred since the Cut-off Date through the
      last day of the related Due Period (reduced by the aggregate amount of
      Subsequent Recoveries received from the Cut-off Date through the last day of
      the
      related Due Period) divided by aggregate Stated Principal Balance of the
      Mortgage Loans as of the Cut-off Date exceeds the applicable percentages set
      forth below with respect to such Distribution Date:

     

    
      	
              Distribution
                Date Occurring In

            	 	
              Percentage(%)

            
	
              February
                2009 through January 2010

            	 	
              2.65%
                for the first distribution date of this period, plus an additional
                1/12th
                of
                1.75% for each distribution date thereafter

            
	 	 	 
	
              February
                2010 through January 2011

            	 	
              4.40%
                for the first distribution date of this period, plus an additional
                1/12th
                of
                1.85% for each distribution date thereafter

            
	 	 	 
	
              February
                2011 through January 2012

            	 	
              6.25%
                for the first distribution date of this period, plus an additional
                1/12th
                of
                1.45% for each distribution date thereafter

            
	 	 	 
	
              February
                2012 through January 2013

            	 	
              7.70%
                for the first distribution date of this period, plus an additional
                1/12th
                of
                0.80% for each distribution date thereafter

            
	 	 	 
	
              February
                2014 and thereafter 

            	 	
              8.50%

            

    

     

    “Servicing
      Account”:
      The
      account or accounts created and maintained pursuant to Section
      3.09.

     

    “Servicing
      Advances”:
      The
      reasonable “out-of-pocket” costs and expenses (including legal fees) incurred by
      the Servicer in connection with a default, delinquency or other unanticipated
      event by the Servicer in the performance of its servicing obligations,
      including, but not limited to, the cost of (i) the preservation, restoration,
      inspection and protection of a Mortgaged Property, (ii) any enforcement or
      judicial proceedings, including but not limited to foreclosures and litigation,
      in respect of a particular Mortgage Loan, (iii) the management (including
      reasonable fees in connection therewith) and liquidation of any REO Property
      and
      (iv) the performance of its obligations under Section
      3.01,
      Section
      3.09,
      Section
      3.14,
      Section 3.16
      and
Section
      3.23.
      The
      Servicer shall not be required to make any Nonrecoverable Servicing
      Advances.

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    

     

    “Servicing
      Criteria”:
      The
“servicing criteria” set forth in Item 1122(d) of Regulation AB, as such may be
      amended from time to time.

     

    “Servicing
      Fee”:
      With
      respect to each Mortgage Loan and for any calendar month, an amount equal to
      the
      Servicing Fee Rate accrued for one month (or in the event of any payment of
      interest which accompanies a Principal Prepayment in full made by the Mortgagor
      during such calendar month, interest for the number of days covered by such
      payment of interest) on the same principal amount on which interest on such
      Mortgage Loan accrues for such calendar month, calculated on the basis of a
      360-day year consisting of twelve 30-day months. A portion of such Servicing
      Fee
      may be retained by any Sub-Servicer as its servicing compensation.

     

    “Servicing
      Fee Rate”:
      0.500%
      per annum.

     

    “Servicing
      Officer”:
      Any
      officer of the Servicer, or any officer of an approved Subservicer as provided
      in Section 14.01(d), involved in, or responsible for, the administration and
      servicing of Mortgage Loans, whose name and specimen signature appear on a
      list
      of Servicing Officers furnished by the Servicer to the Trustee and the Depositor
      on the Closing Date, as such list may from time to time be amended.

     

    “Servicing
      Transfer Costs”:
      Shall
      mean all reasonable costs and expenses incurred by the Trustee in connection
      with the transfer of servicing from a predecessor servicer, including, without
      limitation, any reasonable 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 Trustee to correct any errors
      or
      insufficiencies in the servicing data or otherwise to enable the Trustee (or
      any
      successor servicer appointed pursuant to Section
      7.02)
      to
      service the Mortgage Loans properly and effectively and any fees associated
      with
      MERS.

     

    “Short
      Pay-off”:
      As
      defined in Section
      3.07.

     

    “Single
      Certificate”:
      With
      respect to any Class of Certificates (other than the Class P Certificates and
      the Residual Certificates), a hypothetical Certificate of such Class evidencing
      a Percentage Interest for such Class corresponding to an initial Certificate
      Principal Balance of $1,000. With respect to the Class P Certificates and the
      Residual Certificates, a hypothetical Certificate of such Class evidencing
      a
      100% Percentage Interest in such Class.

     

    “Startup
      Day”:
      With
      respect to each Trust REMIC, the day designated as such pursuant to Section
      10.01(b)
      hereof.

     

    
      
        
        

      

      
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    “Stated
      Principal Balance”:
      With
      respect to any Mortgage Loan: (a) as of any date of determination up to but
      not
      including the Distribution Date on which the proceeds, if any, of a Liquidation
      Event with respect to such Mortgage Loan would be distributed, the principal
      balance of such Mortgage Loan as of the Cut-off Date, as shown on the Mortgage
      Loan Schedule, minus
      the sum
      of (i) the principal portion of each Monthly Payment due on a Due Date
      subsequent to the Cut-off Date, to the extent received from the Mortgagor or
      advanced by the Servicer and distributed pursuant to Section
      4.01
      on or
      before such date of determination, (ii) all Principal Prepayments received
      after
      the Cut-off Date, to the extent distributed pursuant to Section
      4.01
      on or
      before such date of determination, (iii) all Liquidation Proceeds and Insurance
      Proceeds applied by the Servicer as recoveries of principal in accordance with
      the provisions of Section
      3.16,
      to the
      extent distributed pursuant to Section
      4.01
      on or
      before such date of determination, and (iv) any Realized Loss incurred with
      respect thereto as a result of a Deficient Valuation made during or prior to
      the
      Prepayment Period for the most recent Distribution Date coinciding with or
      preceding such date of determination; and (b) as of any date of determination
      coinciding with or subsequent to the Distribution Date on which the proceeds,
      if
      any, of a Liquidation Event with respect to such Mortgage Loan would be
      distributed, zero. With respect to any REO Property: (a) as of any date of
      determination up to but not including the Distribution Date on which the
      proceeds, if any, of a Liquidation Event with respect to such REO Property
      would
      be distributed, an amount (not less than zero) equal to the Stated Principal
      Balance of the related Mortgage Loan as of the date on which such REO Property
      was acquired on behalf of REMIC I, minus
      the sum
      of (i) if such REO Property was acquired before the Distribution Date in any
      calendar month, the principal portion of the Monthly Payment due on the Due
      Date
      in the calendar month of acquisition, to the extent advanced by the Servicer
      and
      distributed pursuant to Section
      4.01
      on or
      before such date of determination, and (ii) the aggregate amount of REO
      Principal Amortization in respect of such REO Property for all previously ended
      calendar months, to the extent distributed pursuant to Section
      4.01
      on or
      before such date of determination; and (b) as of any date of determination
      coinciding with or subsequent to the Distribution Date on which the proceeds,
      if
      any, of a Liquidation Event with respect to such REO Property would be
      distributed, zero.

     

    “Stepdown
      Date”:
      The
      later to occur of (a) the ealier to occur of (i) the Distribution Date occurring
      in February 2010 and (ii) the Distribution Date immediately following the
      Distribution Date on which the aggregate Certificate Principal Balances of
      the
      Class A Certificates is reduced to zero; and (b) the first Distribution Date
      on
      which the Credit Enhancement Percentage with respect to the Class A Certificates
      (calculated for this purpose only prior to any distribution of the Principal
      Distribution Amount to the holders of the Certificates then entitled to
      distributions of principal on such Distribution Date) is equal to or greater
      than 52.10%.

     

    “Subcontractor”:
      Any
      vendor, subcontractor or other Person (but not including the Trustee, except
      to
      the extent described in Article
      XI)
      that is
      not responsible for the overall servicing (as “servicing” is commonly understood
      by participants in the mortgage-backed securities market) of Mortgage Loans
      but
      performs one or more discrete functions identified in Item 1122(d) of Regulation
      AB with respect to Mortgage Loans under the direction or authority of the
      Servicer or a Sub-Servicer.

     

    “Subordination
      Percentage”:
      With
      respect to each class of Class A and Mezzanine Certificates, the applicable
      approximate percentage set forth in the table below. 

     

    
      	
              Class

            	 	
              Percentage(%)

            	 	
              Class

            	 	
              Percentage(%)

            	 
	
              A

            	 	 	
              47.90

            	
               

            	
               

            	
              M-6
                

            	
               

            	
               

            	
              83.10

            	
               

            
	
              M-1

            	
               

            	
               

            	
              59.20

            	
               

            	
               

            	
              M-7

            	
               

            	
               

            	
              86.60

            	
               

            
	
              M-2

            	
               

            	
               

            	
              68.60

            	
               

            	
               

            	
              M-8

            	
               

            	
               

            	
              88.40

            	
               

            
	
              M-3

            	
               

            	
               

            	
              72.20

            	
               

            	
               

            	
              M-9

            	
               

            	
               

            	
              91.00

            	
               

            
	
              M-4

            	
               

            	
               

            	
              77.40

            	
               

            	
               

            	
              M-10

            	
               

            	
               

            	
              93.40

            	
               

            
	
              M-5

            	
               

            	
               

            	
              80.40

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	 

    

     

    

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    “Sub-Servicer”:
      Any
      Person with which the Servicer has entered into a Sub-Servicing Agreement and
      which meets the qualifications of a Sub-Servicer pursuant to Section
      3.02.

     

    “Sub-Servicing
      Account”:
      As
      defined in Section
      3.08.

     

    “Sub-Servicing
      Agreement”:
      The
      written contract between the Servicer and a Sub-Servicer relating to servicing
      and administration of certain Mortgage Loans as provided in Section
      3.02.

     

    “Subsequent
      Recoveries”:
      As of
      any Distribution Date, unexpected amounts received by the Servicer (net of
      any
      related expenses permitted to be reimbursed to the Servicer) specifically
      related to a Mortgage Loan that was the subject of a liquidation or an REO
      Disposition prior to the related Prepayment Period that resulted in a Realized
      Loss. If Subsequent Recoveries are received, they will be included as part
      of
      the Principal Remittance Amount for the following Distribution Date. In
      addition, after giving effect to all distributions on a Distribution Date,
      the
      amount of such Subsequent Recoveries will increase the Certificate Principal
      Balance first, of the Class A Certificates then outstanding, if a Realized
      Loss
      had been allocated to the Class A Certificates, on a pro
      rata
      basis by
      the amount of such Subsequent Recoveries, and second, of the class of Mezzanine
      Certificates then outstanding with the highest distribution priority to which
      a
      Realized Loss was allocated. Thereafter, such class of Class A and Mezzanine
      Certificates will accrue interest on the increased Certificate Principal
      Balance.

     

    “Substitution
      Shortfall Amount”:
      As
      defined in Section 2.03(b).

     

    “Swap
      Account”:
      The
      separate trust account created and maintained by the Trustee.

     

    “Swap
      Agreement”:
      The
      interest rate swap agreement between the Swap Counterparty and the Trustee,
      on
      behalf of the Trust, which agreement provides for Net Swap Payments and Swap
      Termination Payments to be paid, as provided therein, together with any
      schedules, confirmations, credit support annexes or other agreements relating
      thereto, attached hereto as Exhibit
      K-1.

     

    “Swap
      Agreement Notional Balance”:
      As to
      the Swap Agreement and each “Floating Rate Payer Payment Date” (as defined in
      the Swap Agreement), the amount set forth on Exhibit K-2
      hereto
      for such Floating Rate Payer Payment Date.

     

    “Swap
      Counterparty”:
      The
      swap counterparty under the Swap Agreement either (a) entitled to receive
      payments from the Trustee from amounts payable by the Trust Fund under this
      Agreement or (b) required to make payments to the Trustee for payment to the
      Trust Fund, in either case pursuant to the terms of the Swap Agreement, and
      any
      successor in interest or assign. Initially, the Swap Counterparty shall be
      Swiss
      Re Financial Corporation.

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    

     

    “Swap
      LIBOR”:
      LIBOR
      as determined pursuant to the Swap Agreement.

     

    “Swap
      Counterparty Trigger Event”:
      With
      respect to any Distribution Date, (i) an “Event of Default” (as defined in the
      Swap Agreement) with respect to which the Swap Counterparty is a “Defaulting
      Party” (as defined in the Swap Agreement) or a “Termination Event” (as defined
      in the Swap Agreement) (including an “Additional Termination Event” (as defined
      in the Swap Agreement)) under the Swap Agreement with respect to which the
      Swap
      Counterparty is the sole “Affected Party” (as defined in the Swap
      Agreement).

     

    “Swap
      Payment Shortfall”:
      With
      respect to any Distribution Date, a Realized Loss equal to the lesser of (x)
      any
      Net Swap Payment owed to the Swap Counterparty or Swap Termination Payment
      on
      any Distribution Date not due to a Swap Counterparty Trigger Event owed to
      the
      Swap Counterparty to the extent not covered by that portion of the Available
      Distribution Amount (without giving effect to any Net Swap Payment owed to
      the
      Swap Counterparty or any Swap Termination Payment owed to the Swap Counterparty
      not due to a Swap Counterparty Trigger Event) for that Distribution Date that
      represents interest received or advanced on the Mortgage Loans and (y) the
      Available Distribution Amount (without giving effect to any Net Swap Payment
      owed to the Swap Counterparty or any Swap Termination Payment owed to the Swap
      Counterparty not due to a Swap Counterparty Trigger Event) for that Distribution
      Date other than the portion of the Available Distribution Amount for that
      Distribution Date that represents interest received or advanced on the Mortgage
      Loans.

     

    “Swap
      Termination Payment”:
      Upon
      the designation of an “Early Termination Date” (as defined in the Swap
      Agreement), the payment to be made by the Trustee on behalf of the Trust to
      the
      Swap Counterparty from payments from the Trust Fund, or by the Swap Counterparty
      to the Trustee for payment to the Trust Fund, as applicable, pursuant to the
      terms of the Swap Agreement.

     

    “Tax
      Returns”:
      The
      federal income tax return on Internal Revenue Service Form 1066, U.S. Real
      Estate Mortgage Investment Conduit Income Tax Return, including Schedule Q
      thereto, Quarterly Notice to Residual Interest Holders of REMIC Taxable Income
      or Net Loss Allocation, or any successor forms, to be filed on behalf of the
      Trust Fund due to the classification of portions thereof as REMICs under the
      REMIC Provisions, together with any and all other information reports or returns
      that may be required to be furnished to the Certificateholders or filed with
      the
      Internal Revenue Service or any other governmental taxing authority under any
      applicable provisions of federal, state or local tax laws.

     

    “Telerate
      Page 3750”:
      The
      display designated as page “3750” on the Dow Jones Telerate Capital Markets
      Report (or such other page as may replace page 3750 on that report for the
      purpose of displaying London interbank offered rates of major
      banks).

     

    “Termination
      Price”:
      As
      defined in Section 9.01.

     

    “Terminator”:
      As
      defined in Section 9.01.

     

    “Third-Party
      Originator”:
      Each
      Person, other than a Qualified Correspondent, that originated Mortgage Loans
      acquired by the Servicer.

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    

     

    “Transaction
      Party”:
      As
      defined in Section 11.02.

     

    “Transfer”:
      Any
      direct or indirect transfer, sale, pledge, hypothecation, or other form of
      assignment of any Ownership Interest in a Certificate.

     

    “Transferee”:
      Any
      Person who is acquiring by Transfer any Ownership Interest in a
      Certificate.

     

    “Transferor”:
      Any
      Person who is disposing by Transfer of any Ownership Interest in a
      Certificate.

     

    “Trigger
      Event”:
      A
      Trigger Event is in effect on any Distribution Date on or after the Stepdown
      Date if:

     

    (a) the
      Delinquency Percentage exceeds 30.72% of the then current Credit Enhancement
      Percentage with respect to the Class A Certificates for the prior Distribution
      Date; or

     

    (b) the
      aggregate amount of Realized Losses (other than Realized Losses which are Swap
      Payment Shortfalls, if any) incurred since the Cut-off Date through the last
      day
      of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, reduced by the aggregate amount of Subsequent Recoveries received since
      the Cut-off Date through the last day of the related Due Period) divided by
      aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
      Date
      exceeds the applicable percentages set forth below with respect to such
      Distribution Date:

     

    
      	
              Distribution
                Date Occurring In

            	 	
              Percentage(%)

            
	
              February
                2009 through January 2010

            	 	
              1.40%
                for the first distribution date of this period, plus an additional
                1/12th
                of
                1.75% for each distribution date thereafter

            
	 	 	 
	
              February
                2010 through January 2011

            	 	
              3.15%
                for the first distribution date of this period, plus an additional
                1/12th
                of
                1.85% for each distribution date thereafter

            
	 	 	 
	
              February
                2011 through January 2012

            	 	
              5.00%
                for the first distribution date of this period, plus an additional
                1/12th
                of
                1.45% for each distribution date thereafter

            
	 	 	 
	
              February
                2012 through January 2013

            	 	
              6.45%
                for the first distribution date of this period, plus an additional
                1/12th
                of
                0.80% for each distribution date thereafter

            
	 	 	 
	
              February
                2014 and thereafter 

            	 	
              7.25%

            

    

     

    “Trust
      Fund”:
      Collectively, all of the assets of each Trust REMIC, the Swap Account, the
      Swap
      Agreement and the other assets conveyed by the Depositor to the Trustee pursuant
      to Section
      2.01.

     

    “Trust
      REMIC”:
      Any of
      REMIC I or REMIC II.

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    

     

    “Trustee”:
      Wells
      Fargo Bank, N.A., a national banking association, or its successor in interest,
      or any successor trustee appointed as herein provided.

     

    “Trustee
      Information”:
      As
      defined in Section
      11.05.

     

    “Trustee
      Fee”:
      The
      amount payable to the Trustee on each Distribution Date pursuant to Section
      8.05
      as
      compensation for all services rendered by it in the execution of the trust
      hereby created and in the exercise and performance of any of the powers and
      duties of the Trustee hereunder, which amount shall equal the Trustee Fee Rate
      accrued for one month on the aggregate Stated Principal Balance of the Mortgage
      Loans and any REO Properties as of the first day of the related Due Period
      (or,
      in the case of the initial Distribution Date, as of the Cut-off Date),
      calculated on the basis of a 360-day year consisting of twelve 30-day
      months.

     

    “Trustee
      Fee Rate”:
      0.0025% per annum.

     

    “Uncertificated
      Balance”:
      The
      amount of any REMIC I Regular Interest outstanding as of any date of
      determination. As of the Closing Date, the Uncertificated Balance of each REMIC
      I 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 REMIC I Regular Interest shall be reduced by
      all
      distributions of principal made on such REMIC I Regular Interest on such
      Distribution Date pursuant to Section
      4.01
      and, if
      and to the extent necessary and appropriate, shall be further reduced on such
      Distribution Date by Realized Losses as provided in Section
      4.04.
      The
      Uncertificated Balance of REMIC I Regular Interest I-LTZZ shall be increased
      by
      interest deferrals as provided in Section
      4.01(a)(1)(i)(A).
      The
      Uncertificated Balance of each REMIC I Regular Interest shall never be less
      than
      zero.

     

    “Uncertificated
      Interest”:
      With
      respect to any REMIC I Regular Interest for any Distribution Date, one month’s
      interest at the REMIC I Remittance Rate applicable to such REMIC I Regular
      Interest for such Distribution Date, accrued on the Uncertificated Balance
      thereof immediately prior to such Distribution Date. Uncertificated Interest
      in
      respect of any REMIC I Regular Interest shall accrue on the basis of a 360-day
      year consisting of twelve 30-day months. Uncertificated Interest with respect
      to
      each Distribution Date, as to any REMIC I Regular Interest, shall be reduced
      by
      an amount equal to the sum of (a) the aggregate Prepayment Interest Shortfall,
      if any, for such Distribution Date to the extent not covered by payments
      pursuant to Section
      3.24
      and (b)
      the aggregate amount of any Relief Act Interest Shortfall, if any allocated,
      in
      each case, to such REMIC I Regular Interest pursuant to Section 1.02.
      In
      addition, Uncertificated Interest with respect to each Distribution Date, as
      to
      any REMIC I Regular Interest shall be reduced by Realized Losses, if any,
      allocated to such REMIC I Regular Interest pursuant to Section
      1.02
      and
Section
      4.04.

     

    “Underwriters’
      Exemption”:
      An
      individual exemption issued by the United States Department of Labor, Prohibited
      Transaction Exemption 91-23 (56 Fed. Reg. 15936, April 19, 1991), as
      amended, to Citigroup Global Markets Inc. (formerly known as Salomon Smith
      Barney Inc.), for specific offerings in which Citigroup Global Markets Inc.
      or
      any person directly or indirectly, through one or more intermediaries,
      controlling, controlled by or under common control with Citigroup Global Markets
      Inc. is an underwriter, placement agent or a manager or co-manager of the
      underwriting syndicate or selling group where the trust and the offered
      certificates meet specified conditions. The Underwriters’ Exemption, as amended,
      provides a partial exemption for transactions involving certificates
      representing a beneficial interest in a trust and entitling the holder to
      pass-through payments of principal, interest and/or other payments with respect
      to the trust’s assets.

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    

     

    “Uninsured
      Cause”:
      Any
      cause of damage to a Mortgaged Property such that the complete restoration
      of
      such property is not fully reimbursable by the hazard insurance policies
      required to be maintained pursuant to Section
      3.14.

     

    “United
      States Person”:
      A
      citizen or resident of the United States, a corporation, partnership (or other
      entity treated as a corporation or partnership for United States federal income
      tax purposes) created or organized in, or under the laws of, the United States,
      any state thereof, or the District of Columbia (except in the case of a
      partnership, to the extent provided in Treasury regulations) provided that,
      for
      purposes solely of the restrictions on the transfer of Class R Certificates,
      no
      partnership or other entity treated as a partnership for United States federal
      income tax purposes shall be treated as a United States Person unless all
      persons that own an interest in such partnership either directly or through
      any
      entity that is not a corporation for United States federal income tax purposes
      are required by the applicable operative agreement to be United States Persons,
      or an estate the income of which from sources without the United States is
      includible in gross income for United States federal income tax purposes
      regardless of its connection with the conduct of a trade or business within
      the
      United States, or a trust if a court within the United States is able to
      exercise primary supervision over the administration of the trust and one or
      more United States persons have authority to control all substantial decisions
      of the trust. The term “United States” shall have the meaning set forth in
      Section 7701 of the Code or successor provisions.

     

    “Value”:
      With
      respect to any Mortgaged Property, the lesser of (i) the lesser of (a) the
      value
      thereof as determined by an appraisal made for RFC at the time of origination
      of
      the Mortgage Loan by an appraiser who met the minimum requirements of Fannie
      Mae
      and Freddie Mac and (b) the value thereof as determined by a review appraisal
      conducted by RFC in accordance with RFC’s underwriting guidelines, and
      (ii) the purchase price paid for the related Mortgaged Property by the
      Mortgagor with the proceeds of the Mortgage Loan; provided,
      however,
      (A) in
      the case of a Refinanced Mortgage Loan, such value of the Mortgaged Property
      is
      based solely upon clause (i) above.

     

    “Voting
      Rights”:
      The
      portion of the voting rights of all of the Certificates which is allocated
      to
      any Certificate. With respect to any date of determination, 98% of all Voting
      Rights will be allocated among the holders of the Class A Certificates, the
      Mezzanine Certificates and the Class CE Certificates in proportion to the then
      outstanding Certificate Principal Balances of their respective Certificates,
      1%
      of all Voting Rights will be allocated to the holders of the Class P
      Certificates and 1% of all Voting Rights will be allocated among the holders
      of
      the Residual Certificates. The Voting Rights allocated to each Class of
      Certificate shall be allocated among Holders of each such Class in accordance
      with their respective Percentage Interests as of the most recent Record
      Date.

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    

    

      SECTION
        1.02  Allocation
        of Certain Interest Shortfalls.
        For
        purposes of calculating the amount of Accrued Certificate Interest and the
        amount of the Interest Distribution Amount for the Class A Certificates,
        the
        Mezzanine Certificates and the Class CE Certificates for any Distribution
        Date,
        (1) the aggregate amount of any Prepayment Interest Shortfalls (to the extent
        not covered by payments by the Servicer pursuant to Section
        3.24)
        and any
        Relief Act Interest Shortfall incurred in respect of the Mortgage Loans for
        any
        Distribution Date shall be allocated first, to the Class CE Certificates
        based
        on, and to the extent of, one month’s interest at the then applicable
        Pass-Through Rate on the Notional Amount of the Class CE Certificates and,
        thereafter, among the Class A Certificates and the Mezzanine Certificates
        on a
pro
        rata
        basis
        based on, and to the extent of, one month’s interest at the then applicable
        respective Pass-Through Rate on the respective Certificate Principal Balance
        of
        each such Certificate and (2) the aggregate amount of any Realized Losses
        incurred for any Distribution Date shall be allocated to the Class CE
        Certificates based on, and to the extent of, one month’s interest at the then
        applicable Pass-Through Rate on the Notional Amount of the Class CE
        Certificates.

       

      For
        purposes of calculating the amount of Uncertificated Interest for the REMIC
        I
        Regular Interests for any Distribution Date, the aggregate amount of any
        Prepayment Interest Shortfalls (to the extent not covered by payments by
        the
        Servicer pursuant to Section
        3.24)
        and any
        Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans
        for any
        Distribution Date shall be allocated among REMIC I Regular Interest I-LTAA,
        REMIC I Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2, REMIC I
        Regular Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I Regular
        Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest
        I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5,
        REMIC
        I Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC I Regular
        Interest I-LTM8, REMIC I Regular Interest I-LTM9, REMIC I Regular Interest
        I-LTM10 and REMIC I Regular Interest I-LTZZ pro
        rata
        based
        on, and to the extent of, one month’s interest at the then applicable respective
        Pass-Through Rate on the respective Uncertificated Balance of each such REMIC
        I
        Regular Interest.

       

      ARTICLE
        II 

       

      CONVEYANCE
        OF MORTGAGE LOANS;

      ORIGINAL
        ISSUANCE OF CERTIFICATES

       

      SECTION
        2.01  Conveyance
        of the Mortgage Loans.
        On the
        Closing Date, the Depositor will transfer, assign, set over and otherwise
        convey
        to the Trustee without recourse, for the benefit of the Certificateholders,
        all
        the right, title and interest of the Depositor, including any security interest
        therein for the benefit of the Depositor, in and to the Mortgage Loans
        identified on the Mortgage Loan Schedule, the rights of the Depositor under
        the
        Mortgage Loan Purchase Agreement, and all other assets included or to be
        included in REMIC I. Such assignment includes all interest and principal
        received by the Depositor or the Servicer on or with respect to the Mortgage
        Loans (other than payments of principal and interest due on such Mortgage
        Loans
        on or before the Cut-off Date). The Depositor herewith delivers to the Trustee
        an executed copy of the Mortgage Loan Purchase Agreement. In addition, on
        the
        Closing Date, the Trustee is hereby directed to enter into the Swap Agreement
        on
        behalf of the Trust Fund with the Swap Counterparty.

      
        
           

        

        
          52

          
            

          

        

        
           

        

      

       

      In
        connection with such transfer and assignment, the Depositor shall deliver
        to and
        deposit with the Trustee the following documents or instruments with respect
        to
        each Mortgage Loan so transferred and assigned (in each case, a “Mortgage
        File”):

       

      (i) the
        original Mortgage Note, endorsed in blank or in the following form “Pay to the
        order of Wells Fargo Bank, N.A., as Trustee under the applicable agreement,
        without recourse,” with all prior and intervening endorsements showing a
        complete chain of endorsement from the originator to the Person so endorsing
        to
        the Trustee;

       

      (ii) the
        original Mortgage (noting the presence of the MIN of the Mortgage Loan and
        language indicating that the Mortgage Loan is a MOM Loan if the Mortgage
        Loan is
        a MOM Loan) with evidence of recording thereon, and the original recorded
        power
        of attorney, if the Mortgage was executed pursuant to a power of attorney,
        with
        evidence of recording thereon;

       

      (iii) unless
        the Mortgage Loan is registered on the MERS® System, an original Assignment in
        blank;

       

      (iv) the
        original recorded Assignment or Assignments showing a complete chain of
        assignment from the originator to the Person assigning the Mortgage to the
        Trustee (or to MERS if the Mortgage Loan is registered on the MERS® System and
        noting the presence of MIN) as contemplated by the immediately preceding
        clause
        (iii);
        and

       

      (v) the
        original or copies of each assumption, modification or substitution agreement,
        if any.

       

      With
        respect to a maximum of approximately 4.9% of the Original Mortgage Loans
        by
        outstanding Stated Principal Balance of the Original Mortgage Loans as of
        the
        Cut-off Date, if any original Mortgage Note referred to in Section
        2.01(i)
        above
        cannot be located, the obligations of the Depositor to deliver such documents
        shall be deemed to be satisfied upon delivery to the Trustee of a photocopy
        of
        such Mortgage Note, if available, with a lost note affidavit substantially
        in
        the form of Exhibit
        H
        attached
        hereto (or in such form otherwise acceptable to the Trustee). If any of the
        original Mortgage Notes for which a lost note affidavit was delivered to
        the
        Trustee is subsequently located, such original Mortgage Note shall be delivered
        to the Trustee within three Business Days.

       

      If
        any of
        the documents referred to in Sections
        2.01(ii),
        (iii)
        or
(iv)
        above
        has, as of the Closing Date, been submitted for recording but either (x)
        has not
        been returned from the applicable public recording office or (y) has been
        lost
        or such public recording office has retained the original of such document,
        the
        obligations of the Depositor to deliver such documents shall be deemed to
        be
        satisfied upon (1) delivery to the Trustee of a copy of each such document
        certified by RFC in the case of (x) above or the applicable public recording
        office in the case of (y) above to be a true and complete copy of the original
        that was submitted for recording and (2) if such copy is certified by RFC,
        delivery to the Trustee, promptly upon receipt thereof of either the original
        or
        a copy of such document certified by the applicable public recording office
        to
        be a true and complete copy of the original. Notice shall be provided to
        the
        Trustee and the Rating Agencies by the Depositor if delivery pursuant to
        clause
        (2)
        above
        will be made more than 180 days after the Closing Date. If the original lender’s
        title insurance policy was not delivered pursuant to Section
        2.01(vi)
        above,
        the Depositor shall deliver or cause to be delivered to the Trustee, promptly
        after receipt thereof, the original lender’s title insurance policy. The
        Depositor shall deliver or cause to be delivered to the Trustee promptly
        upon
        receipt thereof any other original documents constituting a part of a Mortgage
        File received with respect to any Mortgage Loan, including, but not limited
        to,
        any original documents evidencing an assumption or modification of any Mortgage
        Loan.

      
        
           

        

        
          53

          
            

          

        

        
           

        

      

       

      Except
        with respect to any Mortgage Loan for which MERS is identified on the Mortgage,
        the Trustee shall enforce the obligations of the Seller under the Mortgage
        Loan
        Purchase Agreement to promptly (within sixty Business Days following the
        later
        of the Closing Date and the date of receipt by the Trustee of the recording
        information for a Mortgage, but in no event later than ninety days following
        the
        Closing Date) submit or cause to be submitted for recording, at the expense
        of
        RFC and at no expense to the Trust Fund, the Trustee or the Depositor, in
        the
        appropriate public office for real property records, each Assignment referred
        to
        in Sections
        2.01(iii)
        and
(iv)
        above
        and the Depositor shall execute each original Assignment or cause each original
        Assignment to be executed in the following form: “Wells Fargo Bank, N.A., as
        Trustee under the applicable agreement.” In the event that any such Assignment
        is lost or returned unrecorded because of a defect therein, the Seller shall
        promptly prepare or cause to be prepared (at the expense of RFC) a substitute
        Assignment or cure or cause to be cured such defect, as the case may be,
        and
        thereafter cause each such Assignment to be duly recorded. If RFC is unable
        to
        pay the cost of recording the Assignments, such expense will be paid by the
        Trustee and shall be reimbursable to the Trustee as an Extraordinary Trust
        Fund
        Expense. Notwithstanding the foregoing, the Trustee shall not be responsible
        for
        determining whether any Assignment delivered by the Depositor hereunder is
        in
        recordable form.

       

      Notwithstanding
        the foregoing, however, for administrative convenience and facilitation of
        servicing and to reduce closing costs, the Assignments shall not be required
        to
        be submitted for recording (except with respect to any Mortgage Loan located
        in
        Maryland) unless the Trustee or the Depositor receives written notice that
        failure to record would result in a withdrawal or a downgrading by any Rating
        Agency of the rating on any Class of Certificates; provided,
        however,
        the
        Trustee shall enforce the obligations of the Seller under the Mortgage Loan
        Purchase Agreement to submit or cause to be submitted each Assignment for
        recording in the manner described above, except with respect to any Mortgage
        Loan for which MERS is identified on the Mortgage, at no expense to the Trust
        Fund or the Trustee, upon the earliest to occur of: (i) reasonable direction
        by
        Holders of Certificates entitled to at least 25% of the Voting Rights, (ii)
        the
        occurrence of a Servicer Event of Default, (iii) the occurrence of a bankruptcy,
        insolvency or foreclosure relating to the Servicer, (iv) the occurrence of
        a
        servicing transfer as described in Section
        7.02
        hereof,
        (v) with respect to any one Assignment, the occurrence of a bankruptcy,
        insolvency or foreclosure relating to the Mortgagor under the related Mortgage
        and (vi) any Mortgage Loan that is 90 days or more delinquent. Upon receipt
        of
        written notice by the Trustee from the Servicer that recording of the
        Assignments is required pursuant to one or more of the conditions set forth
        in
        the preceding sentence, the Depositor shall be required to deliver such
        Assignments or shall cause such Assignments to be delivered within 30 days
        following receipt of such notice.

      
        
           

        

        
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      All
        original documents relating to the Mortgage Loans that are not delivered
        to the
        Trustee are and shall be held by or on behalf of the Seller, the Depositor
        or
        the Servicer, as the case may be, in trust for the benefit of the Trustee
        on
        behalf of the Certificateholders. In the event that any such original document
        is required pursuant to the terms of this Section
        2.01
        to be a
        part of a Mortgage File, such document shall be delivered promptly to the
        Trustee. Any such original document delivered to or held by the Depositor
        that
        is not required pursuant to the terms of this Section to be a part of a Mortgage
        File, shall be delivered promptly to the Servicer.

       

      The
        parties hereto understand and agree that it is not intended that any Mortgage
        Loans be included in the Trust that are (a) “high cost” loans under the Home
        Ownership and Equity Protection Act of 1994 or (b) “high cost,” “threshold,”
“covered” or “predatory” loans under any other applicable federal, state or
        local law (including without limitation any regulation or ordinance) (or
        a
        similarly classified loan using different terminology under a law imposing
        heightened regulatory scrutiny or additional legal liability for residential
        mortgage loans having high interest rates, points and/or fees).

       

      SECTION
        2.02  Acceptance
        of REMIC I by Trustee.
        The
        Trustee acknowledges receipt subject to the provisions of Section
        2.01
        above
        and subject to any exceptions noted on the exception report described in
        the
        next paragraph below, of the documents referred to in Section
        2.01
        (other
        than such documents described in Section
        2.01(v))
        and all
        other assets included in the definition
        of “REMIC I”
under
        clauses
        (i),
        (iii),
        (iv)
        and
(v)
        (to the
        extent of amounts attributable thereto deposited into the Certificate Account)
        and declares that it holds and will hold such documents and the other documents
        delivered to it constituting a Mortgage File, and that it holds or will hold
        all
        such assets and such other assets included in the definition
        of “REMIC I”
in
        trust for the exclusive use and benefit of all present and future
        Certificateholders.

       

      The
        Trustee, for the benefit of the Certificateholders, shall review each Mortgage
        File on or before the Closing Date, and certify in substantially the form
        attached hereto as Exhibit C-1 that, as to each Mortgage Loan listed in the
        Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any
        Mortgage Loan specifically identified in the exception report annexed thereto
        as
        not being covered by such certification), (i) all documents constituting
        part of
        such Mortgage File (other than such documents described in Section
        2.01(v))
        required
        to be delivered to it pursuant to this Agreement are in its possession, (ii)
        such documents have been reviewed by it and appear regular on their face
        and
        relate to such Mortgage Loan and (iii) based on its examination and only as
        to the foregoing, the information set forth in the Mortgage Loan Schedule
        that
        corresponds to items
        (i),
        (ii),
        (iii)
        and
(xvi)
        of the
definition
        of “Mortgage Loan Schedule”
        accurately reflects information set forth in the Mortgage File. It is herein
        acknowledged that, in conducting such review, the Trustee is under no duty
        or
        obligation (i) to inspect, review or examine any such documents, instruments,
        certificates or other papers to determine whether they are genuine, enforceable,
        valid, legally binding, effective or appropriate for the represented purpose
        or
        whether they have actually been recorded or are in recordable form or that
        they
        are other than what they purport to be on their face, (ii) to determine whether
        any Mortgage File should include any of the documents specified in clause
        (v)
        of
Section
        2.01
        or (iii)
        to determine the perfection or priority of any security interest in any such
        documents or instruments. Notwithstanding the foregoing, in conducting the
        review described in this Section 2.02,
        the
        Trustee shall not be responsible for determining (i) if an Assignment is
        sufficient under the laws of the jurisdiction wherein the related Mortgaged
        Property is located to reflect of record the sale of the Mortgage or (ii)
        if a
        Mortgage creates a first or second lien on, or first or second priority security
        interest in, a Mortgaged Property.

      
        
           

        

        
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      Prior
        to
        the first anniversary date of this Agreement, the Trustee shall deliver to
        the
        Depositor, the Trustee and the Servicer a final certification in the form
        annexed hereto as Exhibit C-2 evidencing the completeness of the Mortgage
        Files,
        with any applicable exceptions noted thereon, and the Servicer shall forward
        a
        copy thereof to any Sub-Servicer.

       

      If
        in the
        process of reviewing the Mortgage Files and making or preparing, as the case
        may
        be, the certifications referred to above, the Trustee, finds any document
        or
        documents constituting a part of a Mortgage File to be missing or defective
        in
        any material respect, at the conclusion of its review the Trustee, shall
        so
        notify the Depositor and the Servicer. In addition, upon the discovery by
        the
        Depositor, the Servicer, the Trustee of a breach of any of the representations
        and warranties made by either RFC or the Seller in the related Mortgage Loan
        Purchase Agreement in respect of any Mortgage Loan which materially adversely
        affects such Mortgage Loan or the interests of the Certificateholders in
        such
        Mortgage Loan, the party discovering such breach shall give prompt written
        notice to the other parties.

       

      The
        Trustee shall, at the written request and expense of any Certificateholder,
        provide a written report to such Certificateholder of all Mortgage Files
        released to the Servicer for servicing purposes.

       

      The
        Depositor and the Trustee intend that the assignment and transfer herein
        contemplated is absolute and constitutes a sale of the Mortgage Loans, the
        related Mortgage Notes and the related documents, conveying good title thereto
        free and clear of any liens and encumbrances, from the Depositor to the Trustee
        in trust for the benefit of the Certificateholders and that such property
        not be
        part of the Depositor’s estate or property of the Depositor in the event of any
        insolvency by the Depositor. In the event that such conveyance is deemed
        to be,
        or to be made as security for, a loan, the parties intend that the Depositor
        shall be deemed to have granted and does hereby grant to the Trustee a first
        priority perfected security interest in all of the Depositor’s right, title and
        interest in and to the Mortgage Loans, the related Mortgage Notes and the
        related documents, and that this Agreement shall constitute a security agreement
        under applicable law.

       

      
        
           

        

        
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        SECTION
          2.03  Repurchase
          or Substitution of Mortgage Loans by RFC and the Seller.
          (a)
          Upon discovery or receipt of notice of any materially defective document
          in, or
          that a document is missing from, a Mortgage File or of the breach by RFC
          or the
          Seller of any representation, warranty or covenant under the Mortgage Loan
          Purchase Agreement in respect of any Mortgage Loan that materially adversely
          affects the value of such Mortgage Loan or the interest therein of the
          Certificateholders, the Trustee shall promptly notify the Seller, RFC and
          the
          Servicer of such defect, missing document or breach and request that RFC
          or the
          Seller, as applicable, deliver such missing document or cure such defect
          or
          breach within 60 days from the date RFC or the Seller, as applicable, was
          notified of such missing document, defect or breach, and if RFC or the
          Seller,
          as applicable, does not deliver such missing document or cure such defect
          or
          breach in all material respects during such period, the Trustee shall enforce
          the obligations of RFC or the Seller, as applicable, under the Mortgage
          Loan
          Purchase Agreement to repurchase such Mortgage Loan from REMIC I at the
          Purchase
          Price within 90 days after the date on which RFC or the Seller, as applicable,
          was notified (subject to Section
          2.03(c))
          of such
          missing document, defect or breach, if and to the extent that RFC or the
          Seller,
          as applicable, is obligated to do so under the Mortgage Loan Purchase Agreement.
          The Purchase Price for the repurchased Mortgage Loan shall be remitted
          to the
          Servicer for deposit in the Custodial Account and the Trustee, upon receipt
          of
          written certification from the Servicer of such deposit, shall release
          to RFC or
          the Seller, as applicable, the related Mortgage File and the Trustee shall
          execute and deliver such instruments of transfer or assignment, in each
          case
          without recourse, as RFC or the Seller, as applicable, shall furnish to
          it and
          as shall be necessary to vest in RFC or the Seller, as applicable, any
          Mortgage
          Loan released pursuant hereto. The Trustee shall not have any further
          responsibility with regard to such Mortgage File. In lieu of repurchasing
          any
          such Mortgage Loan as provided above, if so provided in the Mortgage Loan
          Purchase Agreement, RFC or the Seller, as applicable, may cause such Mortgage
          Loan to be removed from REMIC I (in which case it shall become a Deleted
          Mortgage Loan) and substitute one or more Qualified Substitute Mortgage
          Loans in
          the manner and subject to the limitations set forth in Section
          2.03(b);
          provided,
          however,
          RFC may
          not substitute a Qualified Substitute Mortgage Loan for any Deleted Mortgage
          Loan that violates any predatory or abusive lending law. In furtherance
          of the
          foregoing, if RFC or the Seller, as applicable, is not a member of MERS
          and
          repurchases a Mortgage Loan which is registered on the MERS® System, RFC or the
          Seller, as applicable, at its own expense and without any right of
          reimbursement, shall cause MERS to execute and deliver an assignment of
          the
          Mortgage in recordable form to transfer the Mortgage from MERS to RFC or
          the
          Seller, as applicable, and shall cause such Mortgage to be removed from
          registration on the MERS® System in accordance with MERS’ rules and regulations.
          It is understood and agreed that the obligation of RFC or the Seller, as
          applicable, 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 respecting such omission, defect or breach available
          to the Trustee and the Certificateholders.

         

      

      (b) Any
        substitution of Qualified Substitute Mortgage Loans for Deleted Mortgage
        Loans
        made pursuant to Section
        2.03(a)
        must be
        effected prior to the date which is two years after the Startup Day for REMIC
        I.

      
        
           

        

        
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      As
        to any
        Deleted Mortgage Loan for which RFC or the Seller, as applicable, substitutes
        a
        Qualified Substitute Mortgage Loan or Loans, such substitution shall be effected
        by RFC or the Seller, as applicable, delivering to the Trustee, for such
        Qualified Substitute Mortgage Loan or Loans, the Mortgage Note, the Mortgage,
        the Assignment to the Trustee, and such other documents and agreements, with
        all
        necessary endorsements thereon, as are required by Section
        2.01,
        together with an Officers’ Certificate providing that each such Qualified
        Substitute Mortgage Loan satisfies the definition thereof and specifying
        the
        Substitution Shortfall Amount (as described below), if any, in connection
        with
        such substitution. The Trustee shall acknowledge receipt for such Qualified
        Substitute Mortgage Loan or Loans and, within ten Business Days thereafter,
        shall review such documents as specified in Section
        2.02
        and
        deliver to the Depositor and the Servicer, with respect to such Qualified
        Substitute Mortgage Loan or Loans, a certification substantially in the form
        attached hereto as Exhibit C-1, with any applicable exceptions noted thereon.
        Within one year of the date of substitution, the Trustee shall deliver to
        the
        Depositor and the Servicer a certification substantially in the form of Exhibit
        C-2 with respect to such Qualified Substitute Mortgage Loan or Loans, with
        any
        applicable exceptions noted thereon. Monthly Payments due with respect to
        Qualified Substitute Mortgage Loans in the month of substitution are not
        part of
        REMIC I and will be retained by RFC or the Seller, as applicable. For the
        month
        of substitution, distributions to Certificateholders will reflect the Monthly
        Payment due on such Deleted Mortgage Loan on or before the Due Date in the
        month
        of substitution, and RFC or the Seller, as applicable, shall thereafter be
        entitled to retain all amounts subsequently received in respect of such Deleted
        Mortgage Loan. The Depositor shall give or cause to be given written notice
        to
        the Certificateholders that such substitution has taken place, shall amend
        the
        Mortgage Loan Schedule to reflect the removal of such Deleted Mortgage Loan
        from
        the terms of this Agreement and the substitution of the Qualified Substitute
        Mortgage Loan or Loans and shall deliver a copy of such amended Mortgage
        Loan
        Schedule to the Trustee. Upon such substitution, such Qualified Substitute
        Mortgage Loan or Loans shall constitute part of the Mortgage Pool and shall
        be
        subject in all respects to the terms of this Agreement and the Mortgage Loan
        Purchase Agreement, including, all applicable representations and warranties
        thereof included in the Mortgage Loan Purchase Agreement.

       

      For
        any
        month in which RFC or the Seller, as applicable, substitutes one or more
        Qualified Substitute Mortgage Loans for one or more Deleted Mortgage Loans,
        the
        Servicer will determine the amount (the “Substitution
        Shortfall Amount”),
        if
        any, by which the aggregate Purchase Price of all such Deleted Mortgage Loans
        exceeds the aggregate of, as to each such Qualified Substitute Mortgage Loan,
        the Stated Principal Balance thereof as of the date of substitution, together
        with one month’s interest on such Stated Principal Balance at the applicable
        Expense Adjusted Mortgage Rate, plus
        all
        outstanding Advances and Servicing Advances (including Nonrecoverable Advances
        and Nonrecoverable Servicing Advances) related thereto. On the date of such
        substitution, RFC or the Seller, as applicable, will deliver or cause to
        be
        delivered to the Servicer for deposit in the Custodial Account an amount
        equal
        to the Substitution Shortfall Amount, if any, and upon receipt by the Trustee
        of
        the related Qualified Substitute Mortgage Loan or Loans and certification
        by the
        Servicer of such deposit, the Trustee shall release to RFC or the Seller,
        as
        applicable, the related Mortgage File or Files and the Trustee shall execute
        and
        deliver such instruments of transfer or assignment, in each case without
        recourse, RFC or the Seller, as applicable, shall deliver to it and as shall
        be
        necessary to vest therein any Deleted Mortgage Loan released pursuant
        hereto.

       

      In
        addition, RFC or the Seller, as applicable, shall obtain at its own expense
        and
        deliver to the Trustee an Opinion of Counsel to the effect that such
        substitution will not cause (a) any federal tax to be imposed on any Trust
        REMIC, including without limitation, any federal tax imposed on “prohibited
        transactions” under Section 860F(a)(1) of the Code or on “contributions after
        the startup date” under Section 860G(d)(1) of the Code, or (b) any Trust REMIC
        to fail to qualify as a REMIC at any time that any Certificate is
        outstanding.

      
        
           

        

        
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      (c) Upon
        discovery by the Depositor, the Servicer or the Trustee that any Mortgage
        Loan
        does not constitute a “qualified mortgage” within the meaning of Section
        860G(a)(3) of the Code, the party discovering such fact shall within two
        Business Days give written notice thereof to the other parties. In connection
        therewith, RFC shall repurchase or, subject to the limitations set forth
        in
Section
        2.03(b),
        substitute one or more Qualified Substitute Mortgage Loans for the affected
        Mortgage Loan within 90 days of the earlier of discovery or receipt of such
        notice with respect to such affected Mortgage Loan. Such repurchase or
        substitution shall be made by (i) RFC or the Seller, as the case may be,
        if the
        affected Mortgage Loan’s status as a non-qualified mortgage is or results from a
        breach of any representation, warranty or covenant made by RFC or the Seller,
        as
        the case may be, under the Mortgage Loan Purchase Agreement, or (ii) the
        Depositor, if the affected Mortgage Loan’s status as a non-qualified mortgage is
        a breach of no representation or warranty. Any such repurchase or substitution
        shall be made in the same manner as set forth in Section 2.03(a).
        The
        Trustee shall reconvey to RFC the Mortgage Loan to be released pursuant hereto
        in the same manner, and on the same terms and conditions, as it would a Mortgage
        Loan repurchased for breach of a representation or warranty.

       

      SECTION
        2.04 
        [Reserved].

       

      SECTION
        2.05  Representations,
        Warranties and Covenants of the Servicer.
        The
        Servicer hereby represents, warrants and covenants to the Trustee, for the
        benefit of the Certificateholders and to the Depositor that as of the Closing
        Date or as of such date specifically provided herein:

       

      (i) The
        Servicer is duly organized, validly existing, and in good standing under
        the
        laws of the jurisdiction of its formation and has all licenses necessary
        to
        carry on its business as now being conducted and is licensed, qualified and
        in
        good standing in the states where the Mortgaged Property is located if the
        laws
        of such state require licensing or qualification in order to conduct business
        of
        the type conducted by the Servicer or to ensure the enforceability or validity
        of each Mortgage Loan; the Servicer has the power and authority to execute
        and
        deliver this Agreement and to perform in accordance herewith; the execution,
        delivery and performance of this Agreement (including all instruments of
        transfer to be delivered pursuant to this Agreement) by the Servicer and
        the
        consummation of the transactions contemplated hereby have been duly and validly
        authorized; this Agreement evidences the valid, binding and enforceable
        obligation of the Servicer, subject to applicable bankruptcy, insolvency,
        reorganization, moratorium or other similar laws affecting the enforcement
        of
        creditors’ rights generally; and all requisite corporate action has been taken
        by the Servicer to make this Agreement valid and binding upon the Servicer
        in
        accordance with its terms;

       

      (ii) The
        consummation of the transactions contemplated by this Agreement is in the
        ordinary course of business of the Servicer and will not result in the breach
        of
        any term or provision of the certificate of formation or limited liability
        company agreement of the Servicer or result in the breach of any term or
        provision of, or conflict with or constitute a default under or result in
        the
        acceleration of any obligation under, any agreement, indenture or loan or
        credit
        agreement or other instrument to which the Servicer or its property is subject,
        or result in the violation of any law, rule, regulation, order, judgment
        or
        decree to which the Servicer or its property is subject;

      
        
           

        

        
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      (iii) The
        execution and delivery of this Agreement by the Servicer and the performance
        and
        compliance with its obligations and covenants hereunder do not require the
        consent or approval of any governmental authority or, if such consent or
        approval is required, it has been obtained;

       

      (iv) This
        Agreement, and all documents and instruments contemplated hereby which are
        executed and delivered by the Servicer, constitute and will constitute valid,
        legal and binding obligations of the Servicer, enforceable in accordance
        with
        their respective terms, except as the enforcement thereof may be limited
        by
        applicable bankruptcy laws and general principles of equity;

       

      (v) The
        Servicer is not in violation of, and the execution and delivery of this
        Agreement by the Servicer and its performance and compliance with the terms
        of
        this Agreement will not constitute a violation with respect to, any order
        or
        decree of any court or any order or regulation of any federal, state, municipal
        or governmental agency having jurisdiction over the Servicer or its assets,
        which violation will likely have consequences that would materially and
        adversely affect the condition (financial or otherwise) or the operation
        of the
        Servicer or its assets or will likely have consequences that would materially
        and adversely affect the performance of its obligations and duties hereunder
        or
        result in the creation or imposition of any lien, charge or encumbrance that
        would have an adverse effect upon any of its properties pursuant to the terms
        of
        any mortgage, contract, deed of trust or other instrument, or impair the
        ability
        of the Trustee to realize on the Mortgage Loans, impair the value of the
        Mortgage Loans, or impair the ability of the Trustee to realize the full
        amount
        of any insurance benefits accruing pursuant to this Agreement;

       

      (vi) The
        Servicer does not believe, nor does it have any reason or cause to believe,
        that
        it cannot perform each and every covenant contained in this
        Agreement;

       

      (vii) There
        is
        no action, suit, proceeding or investigation pending or, to its knowledge,
        threatened against the Servicer that, either individually or in the aggregate,
        (A) may result in any change in the business, operations, financial condition,
        properties or assets of the Servicer that might prohibit or materially and
        adversely affect the performance by such Servicer of its obligations under,
        or
        validity or enforceability of, this Agreement, or (B) may result in any material
        impairment of the right or ability of the Servicer to carry on its business
        substantially as now conducted, or (C) may result in any material liability
        on
        the part of the Servicer, or (D) would draw into question the validity or
        enforceability of this Agreement or of any action taken or to be taken in
        connection with the obligations of the Servicer contemplated herein, or (E)
        would otherwise be likely to impair materially the ability of the Servicer
        to
        perform under the terms of this Agreement;

      
        
           

        

        
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      (viii) Neither
        this Agreement nor any information, certificate of an officer, statement
        furnished in writing or report delivered to the Trustee by the Servicer in
        connection with the transactions contemplated hereby contains any untrue
        statement of a material fact or omits a material fact necessary to make the
        information, certificate, statement or report not misleading;

       

      (ix) The
        Servicer will not waive any Prepayment Charge unless it is waived in accordance
        with the standard set forth in Section
        3.01;

       

      (x) The
        Servicer has accurately and fully reported, and will continue to accurately
        and
        fully report, in accordance with the Fair Credit Reporting Act and its
        implementing regulations and Accepted Servicing Practices, accurate and complete
        information (e.g., favorable and unfavorable) on its borrower credit files
        to
        Equifax, Experian and Trans Union Credit Information Company (three of the
        credit repositories), on a monthly basis;

       

      (xi) The
        Servicer is an approved servicer for FHLMC in good standing and is a HUD
        approved mortgagee pursuant to Section 203 of the National Housing Act. No
        event
        has occurred, including but not limited to a change in insurance coverage,
        which
        would make the Servicer unable to comply with FHLMC or HUD eligibility
        requirements or which would require notification to FHLMC or HUD. The Servicer
        has the facilities, procedures, and experienced personnel necessary for the
        sound servicing of mortgage loans of the same type as the Mortgage Loans.
        The
        Servicer is duly qualified, licensed, registered and otherwise authorized
        under
        all applicable federal, state and local laws, and regulations, if applicable,
        meets the minimum capital requirements set forth by HUD, the OTS, the OCC
        or the
        FDIC, if applicable, and is in good standing to enforce, originate, sell
        mortgage loans to, and service mortgage loans in each jurisdiction wherein
        the
        Mortgaged Properties are located;

       

      (xii) The
        Servicer acknowledges and agrees that the Servicing Fee represents reasonable
        compensation for performing such services and that the entire Servicing Fee
        shall be treated by the Servicer, for accounting and tax purposes, as
        compensation for the servicing and administration of the Mortgage Loans pursuant
        to this Agreement; and

       

      (xiii) The
        Servicer has complied with all applicable anti-money laundering laws and
        regulations, including, without limitation, the USA PATRIOT Act of
        2001.

       

      It
        is
        understood and agreed that the representations, warranties and covenants
        set
        forth in this Section
        2.05
        shall
        survive delivery of the Mortgage Files to the Trustee and shall inure to
        the
        benefit of the Trustee, the Depositor and the Certificateholders. Upon discovery
        by any of the Depositor, the Servicer or the Trustee of a breach of any of
        the
        foregoing representations, warranties and covenants which materially and
        adversely affects the value of any Mortgage Loan or the interests therein
        of the
        Certificateholders, the party discovering such breach shall give prompt written
        notice (but in no event later than two Business Days following such discovery)
        to the Trustee. Subject to Section
        7.01,
        unless
        such breach shall not be susceptible of cure within 90 days, the obligation
        of
        the Servicer set forth in this Section
        2.05
        to cure
        breaches shall constitute the sole remedy against the Servicer available
        to the
        Certificateholders, the Depositor and the Trustee on behalf of the
        Certificateholders respecting a breach of the representations, warranties
        and
        covenants contained in this Section
        2.05.
        Notwithstanding the foregoing, within 90 days of the earlier of discovery
        by the
        Servicer or receipt of notice by the Servicer of the breach of the
        representation or covenant of the Servicer set forth in Section
        2.05(ix)
        above,
        which breach materially and adversely affects the interests of the Holders
        of
        the Class P Certificates in any Prepayment Charge, the Servicer shall pay
        the
        amount of such waived Prepayment Charge, for the benefit of the Holders of
        the
        Class P Certificates, by depositing such amount into the Custodial
        Account.

      
        
           

        

        
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      SECTION
        2.06  Issuance
        of the REMIC I Regular Interests and the Class R-I Interest.
        The
        Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery
        to it of the Mortgage Files, subject to the provisions of Section
        2.01
        and
Section
        2.02,
        together with the assignment to it of all other assets included in REMIC
        I, the
        receipt of which is hereby acknowledged. Concurrently with such assignment
        and
        delivery and in exchange therefor, the Trustee, pursuant to the written request
        of the Depositor executed by an officer of the Depositor, has executed,
        authenticated and delivered to or upon the order of the Depositor, the Class
        R
        Certificates (in respect of the Class R-I Interest) in authorized denominations.
        The interests evidenced by the Class R-I Interest, together with the REMIC
        I
        Regular Interests, constitute the entire beneficial ownership interest in
        REMIC
        I. The rights of the Class R-I Interest and REMIC II (as holder of the REMIC
        I
        Regular Interest) to receive distributions from the proceeds of REMIC I in
        respect of the Class R-I Interest and the REMIC I Regular Interests, and
        all
        ownership interests evidenced or constituted by the Class R-I Interest and
        the
        REMIC I Regular Interests, shall be as set forth in this Agreement.

       

      SECTION
        2.07  Conveyance
        of the REMIC I Regular Interests; Acceptance of REMIC II by the
        Trustee.
        The
        Depositor, concurrently with the execution and delivery hereof, does hereby
        transfer, assign, set over and otherwise convey to the Trustee, without recourse
        all the right, title and interest of the Depositor in and to the REMIC I
        Regular
        Interests for the benefit of the Class R-II Interest and REMIC II (as holder
        of
        the REMIC I Regular Interests). The Trustee acknowledges receipt of the REMIC
        I
        Regular Interests and declares that it holds and will hold the same in trust
        for
        the exclusive use and benefit of all present and future holders of the Class
        R-II Interest and REMIC II (as holder of the REMIC I Regular Interests).
        The
        rights of the holders of the Class R-II Interest and REMIC II (as holder
        of the
        REMIC I Regular Interests) to receive distributions from the proceeds of
        REMIC
        II in respect of the Class R-II Interest and REMIC II Regular Interests,
        respectively, and all ownership interests evidenced or constituted by the
        Class
        R-II Interest and the REMIC II Regular Interests, shall be as set forth in
        this
        Agreement.

       

      SECTION
        2.08  Issuance
        of Class R Certificates.
        The
        Trustee acknowledges the assignment to it of the REMIC Regular Interests
        and,
        concurrently therewith and in exchange therefor, pursuant to the written
        request
        of the Depositor executed by an officer of the Depositor, the Trustee has
        executed, authenticated and delivered to or upon the order of the Depositor,
        the
        Class R Certificates in authorized denominations.

      
        
           

        

        
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      ARTICLE
        III 

       

      ADMINISTRATION
        AND SERVICING
OF
        THE
        MORTGAGE LOANS

       

      SECTION
        3.01  Servicer
        to Act as Servicer.
        The
        Servicer shall service and administer the Mortgage Loans on behalf of the
        Trust
        Fund and in the best interests of and for the benefit of the Certificateholders
        (as determined by the Servicer in its reasonable judgment) in accordance
        with
        all applicable laws and the terms of this Agreement and the respective Mortgage
        Loans and, to the extent consistent with such terms, in the same manner in
        which
        it services and administers similar mortgage loans for its own portfolio,
        and in
        accordance with customary and usual standards of practice of mortgage lenders
        and loan servicers administering similar mortgage loans but without regard
        to:

       

      (i) any
        relationship that the Servicer, any Sub-Servicer or any Affiliate of the
        Servicer or any Sub-Servicer may have with the related Mortgagor;

       

      (ii) the
        ownership or non-ownership of any Certificate by the Servicer or any Affiliate
        of the Servicer;

       

      (iii) the
        Servicer’s obligation to make Advances or Servicing Advances; or

       

      (iv) the
        Servicer’s or any Sub-Servicer’s right to receive compensation for its services
        hereunder or with respect to any particular transaction.

       

      To
        the
        extent consistent with the foregoing, the Servicer (a) shall seek the timely
        and
        complete recovery of principal and interest on the Mortgage Notes and (b)
        shall
        waive (or permit a Sub-Servicer to waive) a Prepayment Charge only under
        the
        following circumstances: (i) such waiver is standard and customary in servicing
        similar Mortgage Loans, relates to a default or a reasonably foreseeable
        default
        and would, in the reasonable judgment of the Servicer, maximize recovery
        of
        total proceeds taking into account the value of such Prepayment Charge and
        the
        related Mortgage Loan or (ii) such Prepayment Charge is unenforceable in
        accordance with applicable law or the collection of such related Prepayment
        Charge would otherwise violate applicable law. If a Prepayment Charge is
        waived
        as permitted by meeting the standards described in clause
        (ii)
        above,
        then the Servicer shall enforce the obligation of RFC under the Mortgage
        Loan
        Purchase Agreement to pay the amount of such waived Prepayment Charge, for
        the
        benefit of the Holders of the Class P Certificates, by depositing such amount
        into the Custodial Account together with and at the time that the amount
        prepaid
        on the related Mortgage Loan is required to be deposited into the Custodial
        Account. Notwithstanding any other provisions of this Agreement, any payments
        made by RFC in respect of any waived Prepayment Charges pursuant to clause
        (ii)
        above
        shall be deemed to be paid outside of the Trust Fund.

       

       

      
        
           

        

        
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      Subject
        only to the above-described servicing
        standards and the terms of this Agreement and of the respective Mortgage
        Loans,
        the Servicer shall have full power and authority, acting alone or through
        Sub-Servicers as provided in Section
        3.02,
        to do
        or cause to be done any and all things in connection with such servicing
        and
        administration which it may deem necessary or desirable. Without limiting
        the
        generality of the foregoing, the Servicer in its own name or in the name
        of a
        Sub-Servicer is hereby authorized and empowered by the Trustee when the Servicer
        believes it appropriate in its best judgment, for the benefit of the
        Certificateholders, in accordance with the servicing standards set forth
        above,
        to execute and deliver, on behalf of the Trust Fund, the Certificateholders
        and
        the Trustee or any of them, and upon written notice to the Trustee, any and
        all
        instruments of satisfaction or cancellation, or of partial or full release
        or
        discharge, and all other comparable instruments, with respect to the Mortgage
        Loans and the Mortgaged Properties and to institute foreclosure proceedings
        or
        obtain a deed-in-lieu of foreclosure so as to convert the ownership of such
        properties, and to hold or cause to be held title to such properties, on
        behalf
        of the Trustee and Certificateholders. The Servicer shall service and administer
        the Mortgage Loans in accordance with applicable state and federal law and
        shall
        provide to the Mortgagors any reports required to be provided to them thereby.
        The Servicer shall also comply in the performance of this Agreement with
        all
        reasonable rules and requirements of each insurer under any standard hazard
        insurance policy. Subject to Section 3.17,
        the
        Trustee shall execute, at the written request of the Servicer, and furnish
        to
        the Servicer and any Sub-Servicer any special or limited powers of attorney
        and
        other documents necessary or appropriate to enable the Servicer or any
        Sub-Servicer to carry out their servicing and administrative duties hereunder
        and the Trustee shall not be liable for the actions of the Servicer or any
        Sub-Servicers under such powers of attorney.

       

      Subject
        to Section
        3.09
        hereof,
        in accordance with the standards of the preceding paragraph, the Servicer
        shall
        advance or cause to be advanced funds as necessary for the purpose of effecting
        the timely payment of taxes and assessments on the Mortgaged Properties,
        which
        advances shall be Servicing Advances reimbursable in the first instance from
        related collections from the Mortgagors pursuant to Section
        3.09,
        and
        further as provided in Section
        3.11.
        Any
        cost incurred by the Servicer or by Sub-Servicers in effecting the timely
        payment of taxes and assessments on a Mortgaged Property shall not, for the
        purpose of calculating distributions to Certificateholders, be added to the
        unpaid principal balance of the related Mortgage Loan, notwithstanding that
        the
        terms of such Mortgage Loan so permit.

       

      The
        Servicer further is authorized and empowered by the Trustee, on behalf of
        the
        Certificateholders and the Trustee, in its own name or in the name of the
        Sub-Servicer, when the Servicer or the Sub-Servicer, as the case may be,
        believes it is appropriate in its best judgment to register any Mortgage
        Loan on
        the MERS System, or cause the removal from the registration of any Mortgage
        Loan
        on the MERS System, to execute and deliver, on behalf of the Trustee and
        the
        Certificateholders or any of them, any and all instruments of assignment
        and
        other comparable instruments with respect to such assignment or re-recording
        of
        a Mortgage in the name of MERS, solely as nominee for the Trustee and its
        successors and assigns. Any reasonable expenses (i) incurred as a result
        of MERS
        discontinuing or becoming unable to continue operations in connection with
        the
        MERS System or (ii) if the affected Mortgage Loan is in default or, in the
        judgment of the Servicer, such default is reasonably foreseeable, incurred
        in
        connection with the actions described in the preceding sentence, shall be
        subject to withdrawal by the Servicer from the Custodial Account.

      
        
           

        

        
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      Notwithstanding
        anything in this Agreement to the contrary, the Servicer may not make any
        future
        advances with respect to a Mortgage Loan (except as provided in Section
        4.03)
        and the
        Servicer shall not (i) permit any modification with respect to any Mortgage
        Loan
        that would change the Mortgage Rate, reduce or increase the principal balance
        (except for reductions resulting from actual payments of principal) or change
        the final maturity date on such Mortgage Loan (unless, as provided in
Section
        3.07,
        the
        Mortgagor is in default with respect to the Mortgage Loan or such default
        is, in
        the judgment of the Servicer, reasonably foreseeable) or (ii) permit any
        modification, waiver or amendment of any term of any Mortgage Loan that would
        both (A) effect an exchange or reissuance of such Mortgage Loan under Section
        1001 of the Code (or Treasury regulations promulgated thereunder) and (B)
        cause
        any Trust REMIC to fail to qualify as a REMIC under the Code or the imposition
        of any tax on “prohibited transactions” or “contributions after the startup
        date” under the REMIC Provisions.

       

      The
        Servicer may delegate its responsibilities under this Agreement; provided,
        however,
        that no
        such delegation shall release the Servicer from the responsibilities or
        liabilities arising under this Agreement.

       

      SECTION
        3.02  Sub-Servicing
        Agreements Between Servicer and Sub-Servicers.
        (a)
        Subject to Section
        14.01(d),
        the
        Servicer may enter into Sub-Servicing Agreements with Sub-Servicers for the
        servicing and administration of the Mortgage Loans; provided,
        however,
        that
        such agreements would not result in a withdrawal or a downgrading by any
        Rating
        Agency of the rating on any Class of Certificates (it being understood that
        the
        Servicer shall not be obligated to obtain a specific letter to such effect).
        The
        Trustee is hereby authorized to acknowledge, at the request of the Servicer,
        any
        Sub-Servicing Agreement that, based on an Officers’ Certificate of the Servicer
        delivered to the Trustee (upon which the Trustee can conclusively rely),
        meets
        the requirements applicable to Sub-Servicing Agreements set forth in this
        Agreement and that is otherwise permitted under this Agreement.

       

      Each
        Sub-Servicer shall be (i) authorized to transact business in the state or
        states
        where the related Mortgaged Properties it is to service are situated, if
        and to
        the extent required by applicable law to enable the Sub-Servicer to perform
        its
        obligations hereunder and under the Sub-Servicing Agreement and (ii) a Freddie
        Mac or Fannie Mae approved mortgage servicer. Each Sub-Servicing Agreement
        must
        impose on the Sub-Servicer requirements conforming to the provisions set
        forth
        in Section
        3.08
        and
        provide for servicing of the Mortgage Loans consistent with the terms of
        this
        Agreement. The Servicer will examine each Sub-Servicing Agreement and will
        be
        familiar with the terms thereof. The terms of any Sub-Servicing Agreement
        will
        not be inconsistent with any of the provisions of this Agreement. The Servicer
        and the Sub-Servicers may enter into and make amendments to the Sub-Servicing
        Agreements or enter into different forms of Sub-Servicing Agreements;
provided,
        however,
        that
        any such amendments or different forms shall be consistent with and not violate
        the provisions of this Agreement, and that no such amendment or different
        form
        shall be made or entered into which could be reasonably expected to be
        materially adverse to the interests of the Certificateholders without the
        consent of the Holders of Certificates entitled to at least 66% of the Voting
        Rights; provided, further, that the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights shall not be required (i) to
        cure
        any ambiguity or defect in a Sub-Servicing Agreement, (ii) to correct, modify
        or
        supplement any provisions of a Sub-Servicing Agreement, or (iii) to make
        any
        other provisions with respect to matters or questions arising under a
        Sub-Servicing Agreement, which, in each case, shall not be inconsistent with
        the
        provisions of this Agreement. Any variation without the consent of the Holders
        of Certificates entitled to at least 66% of the Voting Rights from the
        provisions set forth in Section
        3.08
        relating
        to insurance or priority requirements of Sub-Servicing Accounts, or credits
        and
        charges to the Sub-Servicing Accounts or the timing and amount of remittances
        by
        the Sub-Servicers to the Servicer, are conclusively deemed to be inconsistent
        with this Agreement and therefore prohibited. The Servicer shall deliver
        to the
        Trustee, upon its request, copies of all Sub-Servicing Agreements, and any
        amendments or modifications thereof, promptly upon the Servicer’s execution and
        delivery of such instruments.

      
        
           

        

        
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      (b) As
        part
        of its servicing activities hereunder, the Servicer, for the benefit of the
        Trustee and the Certificateholders, shall enforce the obligations of each
        Sub-Servicer under the related Sub-Servicing Agreement, including, without
        limitation, any obligation of a Sub-Servicer to make advances in respect
        of
        delinquent payments as required by a Sub-Servicing Agreement, or to purchase
        a
        Mortgage Loan on account of missing or defective documentation or on account
        of
        a breach of a representation, warranty or covenant, as described in Section
        2.03(a). Such enforcement, including, without limitation, the legal prosecution
        of claims, termination of Sub-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 Servicer, in its good faith business judgment, would
        require were it the owner of the related Mortgage Loans. The Servicer shall
        pay
        the costs of enforcing the obligations of a Sub-Servicer 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 against whom such
        enforcement is directed.

       

      SECTION
        3.03  Successor
        Sub-Servicers.
        The
        Servicer shall be entitled to terminate any Sub-Servicing Agreement and the
        rights and obligations of any Sub-Servicer pursuant to any Sub-Servicing
        Agreement in accordance with the terms and conditions of such Sub-Servicing
        Agreement. In the event of termination of any Sub-Servicer, all servicing
        obligations of such Sub-Servicer shall be assumed simultaneously by the Servicer
        without any act or deed on the part of such Sub-Servicer or the Servicer,
        and
        the Servicer either shall service directly the related Mortgage Loans or
        shall
        enter into a Sub-Servicing Agreement with a successor Sub-Servicer which
        qualifies under Section
        3.02.

       

      Any
        Sub-Servicing Agreement shall include the provision that such agreement may
        be
        immediately terminated by the Trustee (if the Trustee is acting as Servicer)
        without fee, in accordance with the terms of this Agreement, in the event
        that
        the Servicer (or the Trustee, if it is then acting as Servicer) shall, for
        any
        reason, no longer be the Servicer (including termination due to a Servicer
        Event
        of Default).

       

      SECTION
        3.04  Liability
        of the Servicer.
        Notwithstanding any Sub-Servicing Agreement or the provisions of this Agreement
        relating to agreements or arrangements between the Servicer and a Sub-Servicer
        or reference to actions taken through a Sub-Servicer or otherwise, the Servicer
        shall remain obligated and primarily liable to the Trustee and the
        Certificateholders for the servicing and administering of the Mortgage Loans
        in
        accordance with the provisions of Section
        3.01
        without
        diminution of such obligation or liability by virtue of such Sub-Servicing
        Agreements or arrangements or by virtue of indemnification from the Sub-Servicer
        and to the same extent and under the same terms and conditions as if the
        Servicer alone were servicing and administering the Mortgage Loans. The Servicer
        shall be entitled to enter into any agreement with a Sub-Servicer for
        indemnification of the Servicer by such Sub-Servicer and nothing contained
        in
        this Agreement shall be deemed to limit or modify such
        indemnification.

      
        
           

        

        
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      SECTION
        3.05  No
        Contractual Relationship Between Sub-Servicers, the Trustee or the
        Certificateholders.
        Any
        Sub-Servicing Agreement that may be entered into and any other transactions
        or
        services relating to the Mortgage Loans involving a Sub-Servicer in its capacity
        as such shall be deemed to be between the Sub-Servicer and the Servicer alone,
        and the Trustee and the Certificateholders shall not be deemed parties thereto
        and shall have no claims, rights, obligations, duties or liabilities with
        respect to the Sub-Servicer except as set forth in Section 3.06.
        The
        Servicer shall be solely liable for all fees owed by it to any Sub-Servicer,
        irrespective of whether the Servicer’s compensation pursuant to this Agreement
        is sufficient to pay such fees. The foregoing provision shall not in any
        way
        limit a Sub-Servicer’s obligation to cure an omission or defect.

       

      SECTION
        3.06  Assumption
        or Termination of Sub-Servicing Agreements by the Trustee.
        In the
        event the Servicer shall for any reason no longer be the Servicer (including
        by
        reason of the occurrence of a Servicer Event of Default), the Trustee, its
        designee or other successor Servicer shall thereupon assume all of the rights
        and obligations of the Servicer under each Sub-Servicing Agreement that the
        Servicer may have entered into, unless the Trustee, such designee or other
        successor Servicer elects to terminate any Sub-Servicing Agreement in accordance
        with its terms as provided in Section
        3.03.
        Upon
        such assumption, the Trustee, its designee or the successor Servicer for
        the
        Trustee appointed pursuant to Section
        7.02
        shall be
        deemed, subject to Section
        3.03,
        to have
        assumed all of the Servicer’s interest therein and to have replaced the Servicer
        as a party to each Sub-Servicing Agreement to the same extent as if each
        Sub-Servicing Agreement had been assigned to the assuming party, except that
        (i)
        the Servicer shall not thereby be relieved of any liability or obligations
        under
        any Sub-Servicing Agreement that arose before it ceased to be the Servicer
        and
        (ii) none of the Trustee, its designee or any successor Servicer shall be
        deemed
        to have assumed any liability or obligation of the Servicer that arose before
        it
        ceased to be the Servicer.

       

      The
        Servicer at its expense shall, upon request of the Trustee, deliver to the
        assuming party all documents and records relating to each Sub-Servicing
        Agreement and the Mortgage Loans then being serviced and an accounting of
        amounts collected and held by or on behalf of it, and otherwise use its best
        efforts to effect the orderly and efficient transfer of each Sub-Servicing
        Agreement to the assuming party.

       

      The
        Servicing Fee payable to the Trustee as successor Servicer or other successor
        Servicer shall be payable from payments received on the Mortgage Loans in
        the
        amount and in the manner set forth in this Agreement.

      
        
           

        

        
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      SECTION
        3.07  Collection
        of Certain Mortgage Loan Payments.
        The
        Servicer shall make reasonable efforts to collect all payments called for
        under
        the terms and provisions of the Mortgage Loans, and shall, to the extent
        such
        procedures shall be consistent with this Agreement and the terms and provisions
        of any applicable insurance policies, follow such collection procedures as
        it
        would follow with respect to mortgage loans comparable to the Mortgage Loans
        and
        held for its own account. Consistent with the foregoing, the Servicer may
        in its
        discretion (i) waive any late payment charge or, if applicable, any penalty
        interest, or (ii) extend the due dates for the Monthly Payments due on a
        Mortgage Note for a period of not greater than 180 days; provided,
        however,
        that
        any extension pursuant to clause
        (ii)
        above
        shall not affect the amortization schedule of any Mortgage Loan for purposes
        of
        any computation hereunder, except as provided below. In the event of any
        such
        arrangement pursuant to clause
        (ii)
        above,
        the Servicer shall make timely advances on such Mortgage Loan during such
        extension pursuant to Section
        4.03
        and in
        accordance with the amortization schedule of such Mortgage Loan without
        modification thereof by reason of such arrangement. Notwithstanding the
        foregoing, in the event that any Mortgage Loan is in default or, in the judgment
        of the Servicer, such default is reasonably foreseeable, the Servicer,
        consistent with the standards set forth in Section
        3.01,
        may
        also waive, modify or vary any term of such Mortgage Loan (including
        modifications that would change the Mortgage Rate, forgive the payment of
        principal or interest, capitalize past due Monthly Payments and outstanding
        Servicing Advances or extend the final maturity date of such Mortgage Loan),
        accept payment from the related Mortgagor of an amount less than the Stated
        Principal Balance in final satisfaction of such Mortgage Loan (such payment,
        a
“Short
        Pay-off”),
        or
        consent to the postponement of strict compliance with any such term or otherwise
        grant indulgence to any Mortgagor (any and all such waivers, modifications,
        variances, forgiveness of principal or interest, postponements, or indulgences
        collectively referred to herein as “forbearance”), provided,
        however,
        that in
        no event shall the Servicer grant any such forbearance (other than as permitted
        by the second sentence of this Section) with respect to any one Mortgage
        Loan
        more than once in any 12 month period or more than three times over the life
        of
        such Mortgage Loan. The Servicer’s analysis supporting any forbearance and the
        conclusion that any forbearance meets the standards of Section 3.01 shall
        be
        reflected in writing in the Mortgage File.

       

      SECTION
        3.08  Sub-Servicing
        Accounts.
        In
        those cases where a Sub-Servicer is servicing a Mortgage Loan pursuant to
        a
        Sub-Servicing Agreement, the Sub-Servicer will be required to establish and
        maintain one or more accounts (collectively, the “Sub-Servicing
        Account”).
        The
        Sub-Servicing Account shall be an Eligible Account and shall comply with
        all
        requirements of this Agreement relating to the Custodial Account. The
        Sub-Servicer shall deposit in the clearing account in which it customarily
        deposits payments and collections on mortgage loans in connection with its
        mortgage loan servicing activities on a daily basis, and in no event more
        than
        one Business Day after the Sub-Servicer’s receipt thereof, all proceeds of
        Mortgage Loans received by the Sub-Servicer less its servicing compensation
        to
        the extent permitted by the Sub-Servicing Agreement, and shall thereafter
        deposit such amounts in the Sub-Servicing Account, in no event more than
        two
        Business Days after the receipt of such amounts. The Sub-Servicer shall
        thereafter deposit such proceeds in the Custodial Account or remit such proceeds
        to the Servicer for deposit in the Custodial Account not later than the
        18th
        day (or
        the preceding Business Day if the 18th
        day is
        not a Business Day) of each month in the month following the related Due
        Period.
        For purposes of this Agreement, the Servicer shall be deemed to have received
        payments on the Mortgage Loans when the Sub-Servicer receives such
        payments.

      
        
           

        

        
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      Notwithstanding
        anything contained in this Section 3.07 or any other provisions of this
        Agreement to the contrary, for each Adjustable-Rate Mortgage Loan for which
        the
        related Mortgage Note permits an increase to the related Mortgage Rate on
        the
        first Adjustment Date of greater than 1.5% per annum, the Servicer shall
        service
        such Adjustable-Rate Mortgage Loan as if the maximum Mortgage Rate on the
        first
        Adjustment Date is limited to the related initial Mortgage Rate plus 1.5%
        per
        annum. Without limiting the foregoing, all notices sent by the Servicer to
        the
        Mortgagors of such Adjustable-Rate Mortgage Loans prior to the first Adjustment
        Date (including at least one such notice sent no later than six months prior
        to
        such first Adjustment Date) notifying
        such Mortgagors of the applicable Mortgage Rate and Monthly Payment effective
        as
        of the first Adjustment Date shall not reflect a rate in excess of the maximum
        Mortgage Rate as set forth in the preceding sentence.

       

      SECTION
        3.09  Collection
        of Taxes, Assessments and Similar Items; Servicing Accounts.
        On or
        before the second Distribution Date, the Servicer shall establish and maintain,
        or cause to be established and maintained, one or more accounts (the
“Servicing
        Accounts”),
        into
        which all collections from the Mortgagors (or related advances from
        Sub-Servicers) for the payment of taxes, assessments, hazard insurance premiums
        and comparable items for the account of the Mortgagors (“Escrow
        Payments”)
        shall
        be deposited and retained. Servicing Accounts shall be Eligible Accounts.
        The
        Servicer shall deposit in the clearing account in which it customarily deposits
        payments and collections on mortgage loans in connection with its mortgage
        loan
        servicing activities on a daily basis, and in no event more than one Business
        Day after the Servicer’s receipt thereof, all Escrow Payments collected on
        account of the Mortgage Loans and shall thereafter deposit such Escrow Payments
        in the Servicing Accounts, in no event more than two Business Days after
        the
        receipt of such Escrow Payments, all Escrow Payments collected on account
        of the
        Mortgage Loans for the purpose of effecting the timely payment of any such
        items
        as required under the terms of this Agreement. Withdrawals of amounts from
        a
        Servicing Account may be made only to (i) effect payment of taxes, assessments,
        hazard insurance premiums, and comparable items in a manner and at a time
        that
        assures that the lien priority of the Mortgage is not jeopardized (or, with
        respect to the payment of taxes, in a manner and at a time that avoids the
        loss
        of the Mortgaged Property due to a tax sale or the foreclosure as a result
        of a
        tax lien); (ii) reimburse the Servicer (or a Sub-Servicer to the extent provided
        in the related Sub-Servicing Agreement) out of related collections for any
        advances made pursuant to Section
        3.01
        (with
        respect to taxes and assessments) and Section
        3.14
        (with
        respect to hazard insurance); (iii) refund to Mortgagors any sums as may
        be
        determined to be overages; (iv) pay interest, if required and as described
        below, to Mortgagors on balances in the Servicing Account; or (v) clear and
        terminate the Servicing Account at the termination of the Servicer’s obligations
        and responsibilities in respect of the Mortgage Loans under this Agreement
        in
        accordance with Article
        IX.
        In the
        event the Servicer shall deposit in a Servicing Account any amount not required
        to be deposited therein, it may at any time withdraw such amount from such
        Servicing Account, any provision herein to the contrary notwithstanding.
        The
        Servicer will be responsible for the administration of the Servicing Accounts
        and will be obligated to make Servicing Advances to such accounts when and
        as
        necessary to avoid the lapse of insurance coverage on the Mortgaged Property,
        or
        which the Servicer knows, or in the exercise of the required standard of
        care of
        the Servicer hereunder should know, is necessary to avoid the loss of the
        Mortgaged Property due to a tax sale or the foreclosure as a result of a
        tax
        lien. If any such payment has not been made and the Servicer receives notice
        of
        a tax lien that jeopardizes the lien of the Mortgage Loan, the Servicer will,
        within 10 business days of such notice, advance or cause to be advanced funds
        necessary to discharge such lien on the Mortgaged Property. As part of its
        servicing duties, the Servicer or Sub-Servicers shall pay to the Mortgagors
        interest on funds in the Servicing Accounts, to the extent required by law
        and,
        to the extent that interest earned on funds in the Servicing Accounts is
        insufficient, to pay such interest from its or their own funds, without any
        reimbursement therefor. The Servicer may pay to itself any excess interest
        on
        funds in the Servicing Accounts, to the extent such action is in conformity
        with
        the Servicing Standard, is permitted by law and such amounts are not required
        to
        be paid to Mortgagors or used for any of the other purposes set forth
        above.

      
        
           

        

        
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      SECTION
        3.10  Custodial
        Account and Certificate Account.
        (a) On
        behalf of the Trust Fund, the Servicer shall establish and maintain, or cause
        to
        be established and maintained, one or more accounts (such account or accounts,
        the “Custodial
        Account”),
        held
        in trust for the benefit of the Trustee and the Certificateholders. On behalf
        of
        the Trust Fund, the Servicer shall deposit or cause to be deposited in the
        clearing account in which it customarily deposits payments and collections
        on
        mortgage loans in connection with its mortgage loan servicing activities
        on a
        daily basis, and in no event more than one Business Day after the Servicer’s
        receipt thereof, and shall thereafter deposit in the Custodial Account, in
        no
        event more than two Business Days after the Servicer’s receipt thereof, as and
        when received or as otherwise required hereunder, the following payments
        and
        collections received or made by it subsequent to the Cut-off Date (other
        than in
        respect of principal or interest on the related Mortgage Loans due on or
        before
        the Cut-off Date), or payments (other than Principal Prepayments) received
        by it
        on or prior to the Cut-off Date but allocable to a Due Period subsequent
        thereto:

       

      (i) all
        payments on account of principal, including Principal Prepayments (but not
        Prepayment Charges), on the Mortgage Loans;

       

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

       

      (iii) all
        Insurance Proceeds, Liquidation Proceeds (other than proceeds collected in
        respect of any particular REO Property and amounts paid in connection with
        a
        purchase of Mortgage Loans and REO Properties pursuant to Section
        9.01)
        and
        Subsequent Recoveries;

       

      (iv) any
        amounts required to be deposited pursuant to Section
        3.12
        in
        connection with any losses realized on Permitted Investments with respect
        to
        funds held in the Custodial Account;

       

      (v) any
        amounts required to be deposited by the Servicer pursuant to the second
        paragraph of Section
        3.14(a)
        in
        respect of any blanket policy deductibles;

       

      (vi) all
        proceeds of any Mortgage Loan repurchased or purchased in accordance with
        Section
        2.03,
        Section
        3.16
        or
Section
        9.01;

       

      (vii) all
        amounts required to be deposited in connection with shortfalls in principal
        amount of Qualified Substitute Mortgage Loans pursuant to Section
        2.03;
        and

      
        
           

        

        
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      (viii) all
        Prepayment Charges collected by the Servicer and any Servicer Prepayment
        Charge
        Payment Amounts in connection with the Principal Prepayment of any of the
        Mortgage Loans.

       

      The
        foregoing requirements for deposit in the Custodial Account shall be exclusive,
        it being understood and agreed that, without limiting the generality of the
        foregoing, payments in the nature of Servicing Fees, late payment charges,
        assumption fees, insufficient funds charges and ancillary income (other than
        Prepayment Charges) need not be deposited by the Servicer in the Custodial
        Account and may be retained by the Servicer as additional compensation. In
        the
        event the Servicer shall deposit in the Custodial Account any amount not
        required to be deposited therein, it may at any time withdraw such amount
        from
        the Custodial Account, any provision herein to the contrary
        notwithstanding.

       

      (b) On
        behalf
        of the Trust Fund, the Trustee shall establish and maintain one or more accounts
        (such account or accounts, the “Certificate
        Account”),
        held
        in trust for the benefit of the Trustee, the Trust Fund and the
        Certificateholders. On behalf of the Trust Fund, the Servicer shall deliver
        to
        the Trustee in immediately available funds for deposit in the Certificate
        Account by 1:00 p.m. New York time (i) on the Servicer Remittance Date, that
        portion of the Available Distribution Amount (calculated without regard to
        the
        references in clause
        (2)
        of the
        definition thereof to amounts that may be withdrawn from the Certificate
        Account) for the related Distribution Date then on deposit in the Custodial
        Account and the amount of all Prepayment Charges collected during the applicable
        Prepayment Period by the Servicer and Servicer Prepayment Charge Payment
        Amounts
        in connection with the Principal Prepayment of any of the Mortgage Loans
        then on
        deposit in the Custodial Account and the amount of any funds reimbursable
        to an
        Advancing Person pursuant to Section
        3.26
        and (ii)
        on each Business Day as of the commencement of which the balance on deposit
        in
        the Custodial Account exceeds $75,000 following any withdrawals pursuant
        to the
        next succeeding sentence, the amount of such excess, but only if the Custodial
        Account constitutes an Eligible Account solely pursuant to clause
        (ii)
        of the
        definition of “Eligible Account.” If the balance on deposit in the Custodial
        Account exceeds $75,000 as of the commencement of business on any Business
        Day
        and the Custodial Account constitutes an Eligible Account solely pursuant
        to
clause
        (ii)
        of the
        definition of “Eligible Account,” the Servicer shall, on or before 1:00 p.m. New
        York time on such Business Day, withdraw from the Custodial Account any and
        all
        amounts payable or reimbursable to the Depositor, the Servicer, the Trustee,
        RFC, the Seller or any Sub-Servicer pursuant to Section 3.11
        and
        shall pay such amounts to the Persons entitled thereto. 

       

      (c) On
        or
        prior to the Business Day immediately following each Determination Date,
        the
        Swap Counterparty shall determine any amounts owed by the Swap Counterparty
        under the Swap Agreement and inform the Trustee in writing of the amount
        so
        calculated.

       

      (d) Funds
        in
        the Custodial Account and the Certificate Account may be invested in Permitted
        Investments in accordance with the provisions set forth in Section
        3.12.
        The
        Servicer shall give notice to the Trustee of the location of the Custodial
        Account maintained by it when established and prior to any change thereof.
        The
        Trustee shall give notice to the Servicer and the Depositor of the location
        of
        the Certificate Account when established and prior to any change
        thereof.

      
        
           

        

        
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      (e) Funds
        held in the Custodial Account at any time may be delivered by the Servicer
        to
        the Trustee for deposit in an account (which may be the Certificate Account
        and
        must satisfy the standards for the Certificate Account as set forth in the
        definition thereof) and for all purposes of this Agreement shall be deemed
        to be
        a part of the Custodial Account (and in such event, the Servicer shall provide
        the Trustee with written instructions regarding the investment of such funds);
        provided,
        however,
        that
        the Trustee shall have the sole authority to withdraw any funds held pursuant
        to
        this subsection (e).
        In the
        event the Servicer shall deliver to the Trustee for deposit in the Certificate
        Account any amount not required to be deposited therein, it may at any time
        request in writing that the Trustee withdraw such amount from the Certificate
        Account and remit to it any such amount, any provision herein to the contrary
        notwithstanding. In no event shall the Trustee incur liability as a result
        of
        withdrawals from the Certificate Account at the direction of the Servicer
        in
        accordance with the immediately preceding sentence. In addition, the Servicer
        shall deliver to the Trustee from time to time for deposit, and the Trustee
        shall so deposit, in the Certificate Account:

       

      (i) any
        Advances, as required pursuant to Section
        4.03;

       

      (ii) any
        amounts required to be deposited pursuant to Section
        3.23(d)
        or
(f)
        in
        connection with any REO Property;

       

      (iii) any
        amounts to be paid in connection with a purchase of Mortgage Loans and REO
        Properties pursuant to Section
        9.01;
        and

       

      (iv) any
        Compensating Interest required to be deposited pursuant to Section
        3.24
        in
        connection with any Prepayment Interest Shortfall.

       

      (f) The
        Servicer shall deposit in the Custodial Account any amounts required to be
        deposited pursuant to Section
        3.12(b)
        in
        connection with losses realized on Permitted Investments with respect to
        funds
        held in the Custodial Account (and the Certificate Account to the extent
        that
        funds therein are deemed to be part of the Custodial Account).

       

      (g) The
        Trustee shall deposit in the Certificate Account any amounts required to
        be
        deposited pursuant to Section
        3.12(b)
        in
        connection with losses realized on Permitted Investments with respect to
        funds
        held in the Certificate Account.

       

      SECTION
        3.11  Withdrawals
        from the Custodial Account and Certificate Account.
        (a) The
        Servicer shall, from time to time, make withdrawals from the Custodial Account
        for any of the following purposes or as described in Section
        4.03:

       

      (i) to
        remit
        to the Trustee for deposit in the Certificate Account the amounts required
        to be
        so remitted pursuant to Section
        3.10(b)
        or
        permitted to be so remitted pursuant to the first sentence of Section
        3.10(e);

       

      (ii) subject
        to Section
        3.16(d),
        to
        reimburse the Servicer for (a) any unreimbursed Advances to the extent of
        amounts received which represent Late Collections (net of the related Servicing
        Fees) of Monthly Payments, Liquidation Proceeds and Insurance Proceeds on
        Mortgage Loans with respect to which such Advances were made in accordance
        with
        the provisions of Section
        4.03;
        (b) any
        unreimbursed Advances with respect to the final liquidation of a Mortgage
        Loan
        that are Nonrecoverable Advances, but only to the extent that Late Collections,
        Liquidation Proceeds and Insurance Proceeds received with respect to such
        Mortgage Loan are insufficient to reimburse the Servicer for such unreimbursed
        Advances; or (c) subject to Section
        4.03(b),
        any
        unreimbursed Advances to the extent of funds held in the Custodial Account
        for
        future distribution that were not included in Available Funds for the preceding
        Distribution Date;

      
        
           

        

        
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      (iii) subject
        to Section
        3.16(d),
        to pay
        the Servicer or any Sub-Servicer, as applicable, (a) any unpaid Servicing
        Fees,
        (b) any unreimbursed Servicing Advances with respect to each Mortgage Loan,
        but
        only to the extent of any Late Collections, Liquidation Proceeds, Insurance
        Proceeds and Subsequent Recoveries received with respect to such Mortgage
        Loan
        and (c) any Servicing Advances with respect to the final liquidation of a
        Mortgage Loan that are Nonrecoverable Advances, but only to the extent that
        Late
        Collections, Liquidation Proceeds and Insurance Proceeds received with respect
        to such Mortgage Loan are insufficient to reimburse the Servicer or any
        Sub-Servicer for Servicing Advances;

       

      (iv) to
        pay to
        the Servicer as servicing compensation (in addition to the Servicing Fee)
        on the
        Servicer Remittance Date any interest or investment income earned on funds
        deposited in the Custodial Account;

       

      (v) to
        pay to
        the Servicer, the Depositor, RFC or the Seller, as the case may be, with
        respect
        to each Mortgage Loan that has previously been purchased or replaced pursuant
        to
Section
        2.03
        or
Section
        3.16(c)
        all
        amounts received thereon subsequent to the date of purchase or substitution,
        as
        the case may be;

       

      (vi) to
        reimburse the Servicer for any Advance or Servicing Advance previously made
        which the Servicer has determined to be a Nonrecoverable Advance in accordance
        with the provisions of Section
        4.03;

       

      (vii) to
        pay,
        or to reimburse the Servicer for Servicing Advances in respect of, expenses
        incurred in connection with any Mortgage Loan pursuant to Section
        3.16(b);

       

      (viii) to
        reimburse the Servicer or the Depositor for expenses incurred by or reimbursable
        to the Servicer or the Depositor, as the case may be, pursuant to Section 3.02(b)
        and
Section
        6.03;

       

      (ix) to
        reimburse the Servicer (if the Servicer is not an Affiliate of RFC) or the
        Trustee, as the case may be, for enforcement expenses reasonably incurred
        in
        respect of the breach or defect giving rise to the purchase obligation under
        Section
        2.03
        of this
        Agreement that were included in the Purchase Price of the Mortgage Loan,
        including any expenses arising out of the enforcement of the purchase
        obligation;

       

      (x) to
        clear
        and terminate the Custodial Account pursuant to Section
        9.01.

      
        
           

        

        
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      The
        foregoing requirements for withdrawal from the Custodial Account shall be
        exclusive. In the event the Servicer shall deposit in the Custodial Account
        any
        amount not required to be deposited therein, it may at any time withdraw
        such
        amount from the Custodial Account, any provision herein to the contrary
        notwithstanding.

       

      The
        Servicer shall keep and maintain separate accounting, on a Mortgage Loan
        by
        Mortgage Loan basis, for the purpose of justifying any withdrawal from the
        Custodial Account, to the extent held by or on behalf of it, pursuant to
        subclauses
        (ii),
        (iii),
        (iv),
        (v),
        (vi),
        (vii)
        and
(viii)
        above.
        The Servicer shall provide written notification to the Trustee, on or prior
        to
        the next succeeding Servicer Remittance Date, upon making any withdrawals
        from
        the Custodial Account pursuant to subclause
        (vi)
        above;
        provided that an Officers’ Certificate in the form described under Section
        4.03(d)
        shall
        suffice for such written notification to the Trustee in respect of subclause
        (vi)
        hereof.

       

      (b) The
        Trustee shall, from time to time, make withdrawals from the Certificate Account,
        for any of the following purposes, without priority:

       

      (i) to
        make
        distributions to Certificateholders in accordance with Section 4.01
        and to
        make payments to the Swap Counterparty which are payable by the Trustee to
        the
        Swap Counterparty pursuant to the Swap Agreement, in accordance with
Section
        4.07(a);

       

      (ii) to
        pay to
        itself amounts to which it is entitled pursuant to Section
        8.05
        or for
        Extraordinary Trust Fund Expenses;

       

      (iii) to
        reimburse itself pursuant to Section
        7.02;

       

      (iv) to
        pay
        any amounts in respect of taxes pursuant to Section
        10.01(g)(iii);

       

      (v) to
        pay to
        an Advancing Person reimbursements for Advances and/or Servicing Advances
        pursuant to Section
        3.26;
        and

       

      (vi) to
        clear
        and terminate the Certificate Account pursuant to Section
        9.01.

       

      SECTION
        3.12  Investment
        of Funds in the Custodial Account and the Certificate Account.
        (a) The
        Servicer may direct any depository institution maintaining the Custodial
        Account
        (for purposes of this Section
        3.12,
        an
“Investment
        Account”)
        and,
        so long as the Trustee’s long-term senior unsecured debt is assigned a minimum
        rating of “A” by Fitch, “A” by S&P or “A2” by Moody’s, the Trustee may
        direct any depository institution maintaining the Certificate Account (also
        for
        purposes of this Section
        3.12,
        an
“Investment
        Account”)
        to
        invest the funds in such Investment Account in one or more Permitted Investments
        bearing interest or sold at a discount, and maturing, unless payable on demand,
        (i) no later than the Business Day immediately preceding the date on which
        such
        funds are required to be withdrawn from such account pursuant to this Agreement,
        if a Person other than the Trustee is the obligor thereon, and (ii) no later
        than the date on which such funds are required to be withdrawn from such
        account
        pursuant to this Agreement, if the Trustee is the obligor thereon. All such
        Permitted Investments shall be held to maturity, unless payable on demand.
        Any
        investment of funds in an Investment Account shall be made in the name of
        the
        Trustee for the benefit of the Certificateholders. The Trustee shall be entitled
        to sole possession (except with respect to investment direction of funds
        held in
        the Custodial Account and any income and gain realized thereon) over each
        such
        investment, and any certificate or other instrument evidencing any such
        investment shall be delivered directly to the Trustee or its agent, together
        with any document of transfer necessary to transfer title to such investment
        to
        the Trustee or its nominee. In the event amounts on deposit in an Investment
        Account are at any time invested in a Permitted Investment payable on demand,
        the party with investment discretion over such Investment Account
        shall:

      
        
           

        

        
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      (x) consistent
        with any notice required to be given thereunder, demand that payment thereon
        be
        made on the last day such Permitted Investment may otherwise mature hereunder
        in
        an amount equal to the lesser of (1) all amounts then payable thereunder
        and (2)
        the amount required to be withdrawn on such date; and

       

      (y) demand
        payment of all amounts due thereunder promptly upon determination by a
        Responsible Officer of the Trustee that such Permitted Investment would not
        constitute a Permitted Investment in respect of funds thereafter on deposit
        in
        the Investment Account.

       

      (b) All
        income and gain realized from the investment of funds deposited in the Custodial
        Account and any REO Account held by or on behalf of the Servicer, shall be
        for
        the benefit of the Servicer and shall be subject to its withdrawal in accordance
        with Section
        3.11
        or
Section
        3.23,
        as
        applicable. The Servicer shall deposit in the Custodial Account or any REO
        Account, as applicable, the amount of any loss of principal incurred in respect
        of any such Permitted Investment made with funds in such accounts immediately
        upon realization of such loss. All income and gain realized from the investment
        of funds deposited in the Certificate Account held by or on behalf of the
        Trustee, shall be for the benefit of the Trustee and shall be subject to
        its
        withdrawal in accordance with Section
        3.11.
        The
        Trustee shall deposit in the Certificate Account the amount of any loss of
        principal incurred in respect of any such Permitted Investment made with
        funds
        in such account immediately upon realization of such loss.

       

      (c) Except
        as
        otherwise expressly provided in this Agreement, if any default occurs in
        the
        making of a payment due under any Permitted Investment, or if a default occurs
        in any other performance required under any Permitted Investment (of which
        a
        Responsible Officer of the Trustee obtains actual knowledge), the Trustee
        may
        and, subject to Section
        8.01
        and
Section
        8.02(v),
        upon
        the request of the Holders of Certificates representing more than 50% of
        the
        Voting Rights allocated to any Class of Certificates, shall take such action
        as
        may be appropriate to enforce such payment or performance, including the
        institution and prosecution of appropriate proceedings.

       

      (d) The
        Trustee or its Affiliates are permitted to receive additional compensation
        that
        could be deemed to be in the Trustee’s economic self-interest for (i) serving as
        investment adviser, administrator, shareholder servicing agent, custodian
        or
        sub-custodian with respect to certain of the Permitted Investments and (ii)
        effecting or using Affiliates to effect transactions in certain Permitted
        Investments. Such compensation shall not be considered an amount that is
        reimbursable or payable to the Trustee pursuant to Section
        3.11
        or
3.12
        or
        otherwise payable in respect of Extraordinary Trust Fund Expenses.

      
        
           

        

        
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      SECTION
        3.13  [Reserved].

       

      SECTION
        3.14  Maintenance
        of Hazard Insurance and Errors and Omissions and Fidelity
        Coverage.
        (a) The
        Servicer shall cause to be maintained for each Mortgage Loan fire insurance
        with
        extended coverage on the related Mortgaged Property in an amount which is
        at
        least equal to the lesser of the current principal balance of such Mortgage
        Loan
        and the amount necessary to fully compensate for any damage or loss to the
        improvements that are a part of such property on a replacement cost basis,
        in
        each case in an amount not less than such amount as is necessary to avoid
        the
        application of any coinsurance clause contained in the related hazard insurance
        policy. The Servicer shall also cause to be maintained fire insurance with
        extended coverage on each REO Property in an amount which is at least equal
        to
        the lesser of (i) the maximum insurable value of the improvements which are
        a
        part of such property and (ii) the outstanding principal balance of the related
        Mortgage Loan at the time it became an REO Property, plus
        accrued
        interest at the Mortgage Rate and related Servicing Advances. The Servicer
        will
        comply in the performance of this Agreement with all reasonable rules and
        requirements of each insurer under any such hazard policies. Any amounts
        to be
        collected by the Servicer under any such policies (other than amounts to
        be
        applied to the restoration or repair of the property subject to the related
        Mortgage or amounts to be released to the Mortgagor in accordance with the
        procedures that the Servicer would follow in servicing loans held for its
        own
        account, subject to the terms and conditions of the related Mortgage and
        Mortgage Note) shall be deposited in the Custodial Account, subject to
        withdrawal pursuant to Section
        3.11,
        if
        received in respect of a Mortgage Loan, or in the REO Account, subject to
        withdrawal pursuant to Section
        3.23,
        if
        received in respect of an REO Property. Any cost incurred by the Servicer
        in
        maintaining any such insurance shall not, for the purpose of calculating
        distributions to Certificateholders, be added to the unpaid principal balance
        of
        the related Mortgage Loan, notwithstanding that the terms of such Mortgage
        Loan
        so permit. It is understood and agreed that no earthquake or other additional
        insurance is to be required of any Mortgagor other than pursuant to such
        applicable laws and regulations as shall at any time be in force and as shall
        require such additional insurance. If the Mortgaged Property or REO Property
        is
        at any time in an area identified in the Federal Register by the Federal
        Emergency Management Agency as having special flood hazards and flood insurance
        has been made available, the Servicer will cause to be maintained a flood
        insurance policy in respect thereof. Such flood insurance shall be in an
        amount
        equal to the lesser of (i) the unpaid principal balance of the related Mortgage
        Loan and (ii) the maximum amount of such insurance available for the related
        Mortgaged Property under the national flood insurance program (assuming that
        the
        area in which such Mortgaged Property is located is participating in such
        program).

       

      In
        the
        event that the Servicer shall obtain and maintain a blanket policy with an
        insurer having a General Policy Rating of A:X or better in Best’s Key Rating
        Guide (or such other rating that is comparable to such rating) insuring against
        hazard losses on all of the Mortgage Loans, it shall conclusively be deemed
        to
        have satisfied its obligations as set forth in the first two sentences of
        this
Section
        3.14,
        it
        being understood and agreed that such policy may contain a deductible clause,
        in
        which case the Servicer shall, in the event that there shall not have been
        maintained on the related Mortgaged Property or REO Property a policy complying
        with the first two sentences of this Section
        3.14,
        and
        there shall have been one or more losses which would have been covered by
        such
        policy, deposit to the Custodial Account from its own funds the amount not
        otherwise payable under the blanket policy because of such deductible clause.
        In
        connection with its activities as administrator and servicer of the Mortgage
        Loans, the Servicer agrees to prepare and present, on behalf of itself, the
        Trustee and Certificateholders, claims under any such blanket policy in a
        timely
        fashion in accordance with the terms of such policy.

      
        
           

        

        
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      (b) The
        Servicer shall keep in force during the term of this Agreement a policy or
        policies of insurance covering errors and omissions for failure in the
        performance of the Servicer’s obligations under this Agreement, which policy or
        policies shall be in such form and amount that would meet the requirements
        of
        Fannie Mae or Freddie Mac if it were the purchaser of the Mortgage Loans.
        The
        Servicer shall also maintain a fidelity bond in the form and amount that
        would
        meet the requirements of Fannie Mae or Freddie Mac. The Servicer shall be
        deemed
        to have complied with this provision if an Affiliate of the Servicer has
        such
        errors and omissions and fidelity bond coverage and, by the terms of such
        insurance policy or fidelity bond, the coverage afforded thereunder extends
        to
        the Servicer. Any such errors and omissions policy and fidelity bond shall
        by
        its terms not be cancelable without thirty days prior written notice to the
        Trustee. The Servicer shall also cause each Sub-Servicer to maintain a policy
        of
        insurance covering errors and omissions and a fidelity bond which would meet
        such requirements.

       

      SECTION
        3.15  Enforcement
        of Due-On-Sale Clauses; Assumption Agreements.
        The
        Servicer will, to the extent it has knowledge of any conveyance or prospective
        conveyance of any Mortgaged Property by any Mortgagor (whether by absolute
        conveyance or by contract of sale, and whether or not the Mortgagor remains
        or
        is to remain liable under the Mortgage Note and/or the Mortgage), exercise
        its
        rights to accelerate the maturity of such Mortgage Loan under the “due-on-sale”
clause, if any, applicable thereto; provided,
        however,
        that
        the Servicer shall not be required to take such action if in its sole business
        judgment the Servicer believes it is not in the best interests of the Trust
        Fund
        and shall not exercise any such rights if prohibited by law from doing so.
        If
        the Servicer reasonably believes it is unable under applicable law to enforce
        such “due-on-sale” clause, or if any of the other conditions set forth in the
        proviso to the preceding sentence apply, the Servicer will enter into an
        assumption and modification agreement from or with the person to whom such
        property has been conveyed or is proposed to be conveyed, pursuant to which
        such
        person becomes liable under the Mortgage Note and, to the extent permitted
        by
        applicable state law, the Mortgagor remains liable thereon. The Servicer
        is also
        authorized to enter into a substitution of liability agreement with such
        person,
        pursuant to which the original Mortgagor is released from liability and such
        person is substituted as the Mortgagor and becomes liable under the Mortgage
        Note, provided that no such substitution shall be effective unless such person
        satisfies the underwriting criteria of RFC and has a credit risk rating at
        least
        equal to that of the original Mortgagor. In connection with any assumption
        or
        substitution, the Servicer shall apply RFC’s underwriting standards and follow
        such practices and procedures as shall be normal and usual in its general
        mortgage servicing activities and as it applies to other mortgage loans owned
        solely by it. The Servicer shall not take or enter into any assumption and
        modification agreement, however, unless (to the extent practicable in the
        circumstances) it shall have received confirmation, in writing, of the continued
        effectiveness of any applicable hazard insurance policy. Any fee collected
        by
        the Servicer in respect of an assumption, modification or substitution of
        liability agreement shall be retained by the Servicer as additional servicing
        compensation. In connection with any such assumption, no material term of
        the
        Mortgage Note (including but not limited to the related Mortgage Rate and
        the
        amount of the Monthly Payment) may be amended or modified, except as otherwise
        required pursuant to the terms thereof. The Servicer shall notify the Trustee
        that any such substitution, modification or assumption agreement has been
        completed by forwarding to the Trustee the executed original of such
        substitution, modification or assumption agreement, which document shall
        be
        added to the related Mortgage File and shall, for all purposes, be considered
        a
        part of such Mortgage File to the same extent as all other documents and
        instruments constituting a part thereof.

      
        
           

        

        
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      Notwithstanding
        the foregoing paragraph or any other provision of this Agreement, the Servicer
        shall not be deemed to be in default, breach or any other violation of its
        obligations hereunder by reason of any assumption of a Mortgage Loan by
        operation of law or by the terms of the Mortgage Note or any assumption which
        the Servicer may be restricted by law from preventing, for any reason whatever.
        For purposes of this Section
        3.15,
        the
        term “assumption” is deemed to also include a sale (of the Mortgaged Property)
        subject to the Mortgage that is not accompanied by an assumption or substitution
        of liability agreement.

       

      SECTION
        3.16  Realization
        Upon Defaulted Mortgage Loans.
        (a) The
        Servicer shall exercise its discretion, consistent with customary servicing
        procedures and the terms of this Agreement, with respect to the enforcement
        and
        servicing of defaulted Mortgage Loans in such manner as will maximize the
        receipt of principal and interest with respect thereto, including, but not
        limited to, the modification of such Mortgage Loan, or foreclosure upon the
        related Mortgaged Property and disposition thereof.

       

      In
        furtherance of the foregoing, the Servicer shall use its best efforts,
        consistent with Accepted Servicing Practices, to foreclose upon or otherwise
        comparably convert the ownership of properties securing such of the Mortgage
        Loans as come into and continue in default and as to which no satisfactory
        arrangements can be made for collection of delinquent payments pursuant to
        Section
        3.07.
        The
        Servicer shall be responsible for all costs and expenses incurred by it in
        any
        such proceedings; provided,
        however,
        that
        such costs and expenses will be recoverable as Servicing Advances by the
        Servicer as contemplated in Section
        3.11
        and
Section
        3.23.
        The
        foregoing is subject to the provision that, in any case in which Mortgaged
        Property shall have suffered damage from an Uninsured Cause, the Servicer
        shall
        not be required to expend its own funds toward the restoration of such property
        unless it shall determine in its discretion that such restoration will increase
        the proceeds of liquidation of the related Mortgage Loan after reimbursement
        to
        itself for such expenses.

       

      (b) Notwithstanding
        the foregoing provisions of this Section
        3.16
        or any
        other provision of this Agreement, with respect to any Mortgage Loan as to
        which
        the Servicer has received actual notice of, or has actual knowledge of, the
        presence of any toxic or hazardous substance on the related Mortgaged Property,
        the Servicer shall not, on behalf of the Trust Fund either (i) obtain title
        to
        such Mortgaged Property as a result of or in lieu of foreclosure or otherwise,
        or (ii) otherwise acquire possession of, or take any other action with respect
        to, such Mortgaged Property, if, as a result of any such action, the Trustee,
        the Trust Fund or the Certificateholders would be considered to hold title
        to,
        to be a “mortgagee-in-possession” of, or to be an “owner” or “operator” of such
        Mortgaged Property within the meaning of the Comprehensive Environmental
        Response, Compensation and Liability Act of 1980, as amended from time to
        time,
        or any comparable law, unless the Servicer has also previously determined,
        based
        on its reasonable judgment and a report prepared by an Independent Person
        who
        regularly conducts environmental audits using customary industry standards,
        that:

      
        
           

        

        
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      (1) such
        Mortgaged Property is in compliance with applicable environmental laws or,
        if
        not, that it would be in the best economic interest of the Trust Fund to
        take
        such actions as are necessary to bring the Mortgaged Property into compliance
        therewith; and

       

      (2) there
        are
        no circumstances present at such Mortgaged Property relating to the use,
        management or disposal of any hazardous substances, hazardous materials,
        hazardous wastes, or petroleum-based materials for which investigation, testing,
        monitoring, containment, clean-up or remediation could be required under
        any
        federal, state or local law or regulation, or that if any such materials
        are
        present for which such action could be required, that it would be in the
        best
        economic interest of the Trust Fund to take such actions with respect to
        the
        affected Mortgaged Property.

       

      The
        cost
        of the environmental audit report contemplated by this Section
        3.16
        shall be
        advanced by the Servicer, subject to the Servicer’s right to be reimbursed
        therefor from the Custodial Account as provided in Section
        3.11(a)(iii)
        and
(a)(vi),
        such
        right of reimbursement being prior to the rights of Certificateholders to
        receive any amount in the Custodial Account received in respect of the affected
        Mortgage Loan or other Mortgage Loans.

       

      If
        the
        Servicer determines, as described above, that it is in the best economic
        interest of the Trust Fund to take such actions as are necessary to bring
        any
        such Mortgaged Property into compliance with applicable environmental laws,
        or
        to take such action with respect to the containment, clean-up or remediation
        of
        hazardous substances, hazardous materials, hazardous wastes or petroleum-based
        materials affecting any such Mortgaged Property, then the Servicer shall
        take
        such action as it deems to be in the best economic interest of the Trust
        Fund;
        provided that any amounts disbursed by the Servicer pursuant to this
Section
        3.16(b)
        shall
        constitute Servicing Advances, subject to Section
        4.03(d).
        The
        cost of any such compliance, containment, cleanup or remediation shall be
        advanced by the Servicer, subject to the Servicer’s right to be reimbursed
        therefor from the Custodial Account as provided in Section
        3.11(a)(iii)
        and
(a)(ix),
        such
        right of reimbursement being prior to the rights of Certificateholders to
        receive any amount in the Custodial Account received in respect of the affected
        Mortgage Loan or other Mortgage Loans.

      
        
           

        

        
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      (c) The
        Servicer, or if not exercised by the Servicer, the Holder of the Class CE
        Certificates or its designee may at its option, with ten (10) Business Days
        prior written notice to the Depositor and the Seller, purchase from REMIC
        I any
        Mortgage Loan (or related REO Property in the case of the Holder of the Class
        CE
        Certificates or its designee) for which the Servicer has accepted a deed
        in lieu
        of foreclosure or that is 90 days or more delinquent, which the Servicer
        or the
        Holder of the Class CE Certificates or its designee, as applicable, determines
        in good faith will otherwise become subject to foreclosure proceedings (evidence
        of such determination to be delivered in writing to the Trustee, in form
        and
        substance satisfactory to the Trustee prior to purchase), at a price equal
        to
        the Purchase Price; provided,
        that
        such Mortgage Loan that becomes 90 days or more delinquent during any given
        Calendar Quarter shall only be eligible for purchase pursuant to this
Section
        3.16(c)
        during
        the period beginning on the first Business Day of the following Calendar
        Quarter, and ending at the close of business on the second-to-last Business
        Day
        of such following Calendar Quarter; and provided,
        further,
        that
        such Mortgage Loan is 90 days or more delinquent at the time of repurchase.
        Such
        option if not exercised shall not thereafter be reinstated as to any Mortgage
        Loan, unless the delinquency is cured and the Mortgage Loan thereafter again
        becomes delinquent in payment by 90 days or more in a subsequent Calendar
        Quarter. In connection with any purchase pursuant to this Section
        3.16(c),
        the
        Servicer, or if not exercised by the Servicer, the Holder of the Class CE
        Certificates or its designee, as applicable, shall purchase any such Mortgage
        Loans (or related REO Properties in the case of the Holder of the Class CE
        Certificates or its designee) on the basis of delinquency, purchasing the
        most
        delinquent Mortgage Loans or related REO Properties first. The Purchase Price
        for any Mortgage Loan (or related REO Property in the case of the Holder
        of the
        Class CE Certificates or its designee) purchased hereunder shall be deposited
        in
        the Custodial Account by the Servicer (if such optional purchase is exercised
        by
        the Holder of the Class CE Certificates or its designee, the Purchase Price
        for
        any Mortgage Loan or related REO Property purchased hereunder shall be paid
        by
        the Holder of the Class CE Certificates or its designee to the Servicer and
        the
        Servicer shall deposit such Purchase Price in the Custodial Account), and
        the
        Trustee, upon receipt of written certification from the Servicer of such
        deposit, shall release or cause to be released to the Servicer, or the Holder
        of
        the Class CE Certificates or its designee, as applicable, the related Mortgage
        File and the Trustee shall execute and deliver such instruments of transfer
        or
        assignment, in each case without recourse, as the Servicer, or the Holder
        of the
        Class CE Certificates or its designee, as applicable, shall furnish and as
        shall
        be necessary to vest in the Servicer, or the Holder of the Class CE Certificates
        or its designee, as applicable, title to any Mortgage Loan or related REO
        Property released pursuant hereto.

       

      (d) Proceeds
        received in connection with any Final Recovery Determination, as well as
        any
        recovery resulting from a partial collection of Insurance Proceeds, Liquidation
        Proceeds or Subsequent Recoveries, in respect of any Mortgage Loan, will
        be
        applied in the following order of priority: first, to reimburse the Servicer
        or
        any Sub-Servicer for any related unreimbursed Servicing Advances and Advances,
        pursuant to Section
        3.11(a)(ii)
        or
(a)(iii);
        second,
        to accrued and unpaid interest on the Mortgage Loan, to the date of the Final
        Recovery Determination, or to the Due Date prior to the Distribution Date
        on
        which such amounts are to be distributed if not in connection with a Final
        Recovery Determination; and third, as a recovery of principal of the Mortgage
        Loan. If the amount of the recovery so allocated to interest is less than
        the
        full amount of accrued and unpaid interest due on such Mortgage Loan, the
        amount
        of such recovery will be allocated by the Servicer as follows: first, to
        unpaid
        Servicing Fees; and second, to the balance of the interest then due and owing.
        The portion of the recovery so allocated to unpaid Servicing Fees shall be
        reimbursed to the Servicer or any Sub-Servicer pursuant to Section
        3.11(a)(iii).

       

      SECTION
        3.17  Trustee
        to Cooperate; Release of Mortgage Files.
        (a) Upon the payment in full of any Mortgage Loan, or upon the receipt by
        the Servicer of a notification that payment in full shall be escrowed in
        a
        manner customary for such purposes, the Servicer shall immediately notify
        or
        cause to be notified the Trustee by a certification in the form of Exhibit
        E
        or such
        form mutually agreed upon by the Servicer and the Trustee (which certification
        shall include a statement to the effect that all amounts received or to be
        received in connection with such payment which are required to be deposited
        in
        the Custodial Account pursuant to Section
        3.10
        have
        been or will be so deposited) of a Servicing Officer and shall request delivery
        to it of the Mortgage File. Upon receipt of such certification and request,
        the
        Trustee shall, within three Business Days, release the related Mortgage File
        to
        the Servicer at no cost to the Trustee or the Trust Fund, and the Servicer
        is
        authorized to cause the removal from the registration on the MERS® System of any
        such Mortgage, if applicable. No expenses incurred in connection with any
        instrument of satisfaction or deed of reconveyance shall be chargeable to
        the
        Custodial Account or the Certificate Account.

      
        
           

        

        
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      (b) From
        time
        to time and as appropriate for the servicing or foreclosure of any Mortgage
        Loan, including, for this purpose, collection under any insurance policy
        relating to the Mortgage Loans, the Trustee shall, upon any request made
        by or
        on behalf of the Servicer and delivery to the Trustee of a Request for Release
        in the form of Exhibit
        E
        or such
        form mutually agreed upon by the Servicer and the Trustee, release the related
        Mortgage File to the Servicer within three Business Days, and the Trustee
        shall,
        at the direction of the Servicer, execute such documents as shall be necessary
        to the prosecution of any such proceedings. Such Request for Release shall
        obligate the Servicer to return each and every document previously requested
        from the Mortgage File to the Trustee when the need therefor by the Servicer
        no
        longer exists, unless (i) the Mortgage Loan has been liquidated and the
        Liquidation Proceeds relating to the Mortgage Loan have been deposited in
        the
        Custodial Account or (ii) the Mortgage File or such document has been delivered
        to an attorney, or to a public trustee or other public official as required
        by
        law, for purposes of initiating or pursuing legal action or other proceedings
        for the foreclosure of the Mortgaged Property either judicially or
        non-judicially, and the Servicer has delivered, or caused to be delivered,
        to
        the Trustee an additional Request for Release certifying as to such liquidation
        or action or proceedings. Upon the request of the Trustee, the Servicer shall
        provide notice to the Trustee of the name and address of the Person to which
        such Mortgage File or such document was delivered and the purpose or purposes
        of
        such delivery. Upon receipt of a certificate of a Servicing Officer stating
        that
        such Mortgage Loan was liquidated and that all amounts received or to be
        received in connection with such liquidation that are required to be deposited
        into the Custodial Account have been so deposited, or that such Mortgage
        Loan
        has become an REO Property, any outstanding Requests for Release with respect
        to
        such Mortgage Loan shall be released by the Trustee to the Servicer or its
        designee.

       

      (c) Upon
        written certification of a Servicing Officer, the Trustee shall execute and
        deliver to the Servicer or the Sub-Servicer, as the case may be, any court
        pleadings, requests for trustee’s sale or other documents necessary to the
        foreclosure or trustee’s sale in respect of a Mortgaged Property or to any legal
        action brought to obtain judgment against any Mortgagor on the Mortgage Note
        or
        Mortgage or to obtain a deficiency judgment, or to enforce any other remedies
        or
        rights provided by the Mortgage Note or Mortgage or otherwise available at
        law
        or in equity. Each such certification shall include a request that such
        pleadings or documents be executed by the Trustee and a statement as to the
        reason such documents or pleadings are required and that the execution and
        delivery thereof by the Trustee will not invalidate or otherwise affect the
        lien
        of the Mortgage, except for the termination of such a lien upon completion
        of
        the foreclosure or trustee’s sale.

      
        
           

        

        
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      SECTION
        3.18  Servicing
        Compensation.
        As
        compensation for the activities of the Servicer hereunder, the Servicer shall
        be
        entitled to the Servicing Fee with respect to each Mortgage Loan payable
        solely
        from payments of interest in respect of such Mortgage Loan, subject to
Section
        3.24.
        In
        addition, the Servicer shall be entitled to recover unpaid Servicing Fees
        out of
        Insurance Proceeds, Liquidation Proceeds or Subsequent Recoveries to the
        extent
        permitted by Section
        3.11(a)(iii)
        and out
        of amounts derived from the operation and sale of an REO Property to the
        extent
        permitted by Section
        3.23.
        Except
        as provided in Sections
        3.26,
        the
        right to receive the Servicing Fee may not be transferred in whole or in
        part
        except in connection with the transfer of all of the Servicer’s responsibilities
        and obligations under this Agreement; provided,
        however,
        that
        the Servicer may pay from the Servicing Fee any amounts due to a Sub-Servicer
        pursuant to a Sub-Servicing Agreement entered into under Section
        3.02.

       

      Additional
        servicing compensation in the form of assumption fees, late payment charges,
        insufficient funds charges, ancillary income or otherwise (subject to
Section
        3.24
        and
        other than Prepayment Charges) shall be retained by the Servicer only to
        the
        extent such fees or charges are received by the Servicer. The Servicer shall
        also be entitled pursuant to Section
        3.11(a)(iv)
        to
        withdraw from the Custodial Account and pursuant to Section
        3.23(b)
        to
        withdraw from any REO Account, as additional servicing compensation, interest
        or
        other income earned on deposits therein, subject to Section
        3.12
        and
Section
        3.24.
        The
        Servicer shall be required to pay all expenses incurred by it in connection
        with
        its servicing activities hereunder (including premiums for the insurance
        required by Section
        3.14,
        to the
        extent such premiums are not paid by the related Mortgagors or by a Sub-Servicer
        or reimbursable as Servicing Advances, servicing compensation of each
        Sub-Servicer, and to the extent provided herein in Section
        8.05,
        the
        expenses of the Trustee) and shall not be entitled to reimbursement therefor
        except as specifically provided herein.

       

      SECTION
        3.19  Reports
        to the Trustee and Others; Custodial Account Statements.
        Not
        later than twenty days after each Distribution Date, the Servicer shall forward
        to the Trustee (upon the Trustee’s request) and the Depositor the most current
        available bank statement for the Custodial Account. Copies of such statement
        shall be provided by the Trustee to any Certificateholder and to any Person
        identified to the Trustee as a prospective transferee of a Certificate, upon
        request at the expense of the requesting party, provided such statement is
        delivered by the Servicer to the Trustee.

       

      SECTION
        3.20  [Reserved].
        

       

      SECTION
        3.21  [Reserved].
        

       

      SECTION
        3.22  Access
        to Certain Documentation.
        The
        Servicer shall provide to the Office of Thrift Supervision, the FDIC, and
        any
        other federal or state banking or insurance regulatory authority that may
        exercise authority over any Certificateholder or Certificate Owner, access
        to
        the documentation in the Servicer’s possession regarding the Mortgage Loans
        required by applicable laws and regulations. Such access shall be afforded
        without charge, but only upon reasonable request and during normal business
        hours at the offices of the Servicer designated by it. In addition, access
        to
        the documentation in the Servicer’s possession regarding the Mortgage Loans will
        be provided to any Certificateholder or Certificate Owner, the Trustee and
        to
        any Person identified to the Servicer as a prospective transferee of a
        Certificate; provided,
        however,
        that
        providing access to such Person will not violate any applicable laws, upon
        reasonable request during normal business hours at the offices of the Servicer
        designated by it at the expense of the Person requesting such
        access.

      
        
           

        

        
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      SECTION
        3.23  Title,
        Management and Disposition of REO Property.
        (a) The
        deed or certificate of sale of any REO Property shall be taken in the name
        of
        the Trustee, or its nominee, on behalf of the Trust Fund and for the benefit
        of
        the Certificateholders. The Servicer, on behalf of REMIC I, shall either
        sell
        any REO Property prior to the end of the third taxable year after REMIC I
        acquires ownership of such REO Property for purposes of Section 860G(a)(8)
        of
        the Code or request from the Internal Revenue Service, no later than 60 days
        before the day on which the three-year grace period would otherwise expire,
        an
        extension of the three-year grace period, unless the Servicer shall have
        delivered to the Trustee an Opinion of Counsel, addressed to the Trustee
        and the
        Depositor, to the effect that the holding by REMIC I of such REO Property
        subsequent to three years after its acquisition will not result in the
        imposition on any Trust REMIC of taxes on “prohibited transactions” thereof, as
        defined in Section 860F of the Code, or cause any Trust REMIC to fail to
        qualify
        as a REMIC under Federal law at any time that any Certificates are outstanding.
        The Servicer shall manage, conserve, protect and operate each REO Property
        for
        the Certificateholders solely for the purpose of its prompt disposition and
        sale
        in a manner which does not cause such REO Property to fail to qualify as
        “foreclosure property” within the meaning of Section 860G(a)(8) of the Code or
        result in the receipt by any Trust REMIC of any “income from non-permitted
        assets” within the meaning of Section 860F(a)(2)(B) of the Code, or any “net
        income from foreclosure property” which is subject to taxation under the REMIC
        Provisions.

       

      (b) The
        Servicer shall segregate and hold all funds collected and received in connection
        with the operation of any REO Property separate and apart from its own funds
        and
        general assets and shall establish and maintain, or cause to be established
        and
        maintained, with respect to REO Properties, an account held in trust for
        the
        Trustee for the benefit of the Certificateholders (the “REO
        Account”),
        which
        shall be an Eligible Account. The Servicer shall be permitted to allow the
        Custodial Account to serve as the REO Account, subject to separate ledgers
        for
        each REO Property. The Servicer shall be entitled to retain or withdraw any
        interest income paid on funds deposited in the REO Account.

       

      (c) The
        Servicer shall have the sole discretion to determine whether an immediate
        sale
        of an REO Property or continued management of such REO Property is in the
        best
        interests of the Certificateholders. In furtherance of the foregoing, the
        Servicer shall have full power and authority, subject only to the specific
        requirements and prohibitions of this Agreement, to do any and all things
        in
        connection with any REO Property as are consistent with the manner in which
        the
        Servicer manages and operates similar property owned by the Servicer or any
        of
        its Affiliates, all on such terms and for such period as the Servicer deems
        to
        be in the best interests of Certificateholders. In connection therewith,
        the
        Servicer shall deposit, or cause to be deposited in the clearing account
        in
        which it customarily deposits payments and collections on mortgage loans
        in
        connection with its mortgage loan servicing activities on a daily basis,
        and in
        no event more than one Business Day after the Servicer’s receipt thereof, and
        shall thereafter deposit in the REO Account, in no event more than two Business
        Days after the Servicer’s receipt thereof, all revenues received by it with
        respect to an REO Property and shall withdraw therefrom funds necessary for
        the
        proper operation, management and maintenance of such REO Property including,
        without limitation:

      
        
           

        

        
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      (i) all
        insurance premiums due and payable in respect of such REO Property;

       

      (ii) all
        real
        estate taxes and assessments in respect of such REO Property that may result
        in
        the imposition of a lien thereon; and

       

      (iii) all
        costs
        and expenses necessary to maintain such REO Property.

       

      To
        the
        extent that amounts on deposit in the REO Account with respect to an REO
        Property are insufficient for the purposes set forth in clauses
        (i)
        through
(iii)
        above
        with respect to such REO Property, the Servicer shall advance from its own
        funds
        such amount as is necessary for such purposes if, but only if, the Servicer
        would make such advances if the Servicer owned the REO Property and if in
        the
        Servicer’s judgment, the payment of such amounts will be recoverable from the
        rental or sale of the REO Property.

       

      Notwithstanding
        the foregoing, the Servicer shall not and the Trustee shall not knowingly
        authorize the Servicer to:

       

      (i) authorize
        the Trust Fund to enter into, renew or extend any New Lease with respect
        to any
        REO Property, if the New Lease by its terms will give rise to any income
        that
        does not constitute Rents from Real Property;

       

      (ii) authorize
        any amount to be received or accrued under any New Lease other than amounts
        that
        will constitute Rents from Real Property;

       

      (iii) authorize
        any construction on any REO Property, other than the completion of a building
        or
        other improvement thereon, and then only if more than ten percent of the
        construction of such building or other improvement was completed before default
        on the related Mortgage Loan became imminent, all within the meaning of Section
        856(e)(4)(B) of the Code; or

       

      (iv) authorize
        any Person to Directly Operate any REO Property on any date more than 90
        days
        after its date of acquisition by the Trust Fund;

       

      unless,
        in any such case, the Servicer has obtained an Opinion of Counsel, provided
        to
        the Servicer and the Trustee, to the effect that such action will not cause
        such
        REO Property to fail to qualify as “foreclosure property” within the meaning of
        Section 860G(a)(8) of the Code at any time that it is held by REMIC I, in
        which
        case the Servicer may take such actions as are specified in such Opinion
        of
        Counsel.

       

      The
        Servicer may contract with any Independent Contractor for the operation and
        management of any REO Property, provided that:

      
        
           

        

        
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      (i) the
        terms
        and conditions of any such contract shall not be inconsistent
        herewith;

       

      (ii) any
        such
        contract shall require, or shall be administered to require, that the
        Independent Contractor pay all costs and expenses incurred in connection
        with
        the operation and management of such REO Property, including those listed
        above
        and remit all related revenues (net of such costs and expenses) to the Servicer
        as soon as practicable, but in no event later than thirty days following
        the
        receipt thereof by such Independent Contractor;

       

      (iii) none
        of
        the provisions of this Section
        3.23(c)
        relating
        to any such contract or to actions taken through any such Independent Contractor
        shall be deemed to relieve the Servicer of any of its duties and obligations
        to
        the Trustee on behalf of the Certificateholders with respect to the operation
        and management of any such REO Property; and

       

      (iv) the
        Servicer shall be obligated with respect thereto to the same extent as if
        it
        alone were performing all duties and obligations in connection with the
        operation and management of such REO Property.

       

      The
        Servicer shall be entitled to enter into any agreement with any Independent
        Contractor performing services for it related to its duties and obligations
        hereunder for indemnification of the Servicer by such Independent Contractor,
        and nothing in this Agreement shall be deemed to limit or modify such
        indemnification. The Servicer shall be solely liable for all fees owed by
        it to
        any such Independent Contractor, irrespective of whether the Servicer’s
        compensation pursuant to Section
        3.18
        is
        sufficient to pay such fees; provided,
        however,
        that to
        the extent that any payments made by such Independent Contractor would
        constitute Servicing Advances if made by the Servicer, such amounts shall
        be
        reimbursable as Servicing Advances made by the Servicer.

       

      (d) In
        addition to the withdrawals permitted under Section
        3.23(c),
        the
        Servicer may from time to time make withdrawals from the REO Account for
        any REO
        Property: (i) to pay itself or any Sub-Servicer unpaid Servicing Fees in
        respect
        of the related Mortgage Loan; and (ii) to reimburse itself or any
        Sub-Servicer for unreimbursed Servicing Advances and Advances made in respect
        of
        such REO Property or the related Mortgage Loan. On the Servicer Remittance
        Date,
        the Servicer shall withdraw from each REO Account maintained by it and deposit
        into the Certificate Account in accordance with Section
        3.10(d)(ii),
        for
        distribution on the related Distribution Date in accordance with Section
        4.01,
        the
        income from the related REO Property received during the prior calendar month,
        net of any withdrawals made pursuant to Section
        3.23(c)
        or this
Section
        3.23(d).

       

      (e) Subject
        to the time constraints set forth in Section
        3.23(a),
        each
        REO Disposition shall be carried out by the Servicer at such price and upon
        such
        terms and conditions as the Servicer shall deem necessary or advisable, as
        shall
        be normal and usual in its Accepted Servicing Practices.

      
        
           

        

        
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      (f) The
        proceeds from the REO Disposition, net of any amount required by law to be
        remitted to the Mortgagor under the related Mortgage Loan and net of any
        payment
        or reimbursement to the Servicer or any Sub-Servicer as provided above, shall
        be
        deposited in the Certificate Account in accordance with Section
        3.10(d)(ii)
        on the
        Servicer Remittance Date in the month following the receipt thereof for
        distribution on the related Distribution Date in accordance with Section
        4.01.
        Any REO
        Disposition shall be for cash only (unless changes in the REMIC Provisions
        made
        subsequent to the Startup Day allow a sale for other
        consideration).

       

      (g) The
        Servicer shall file information returns with respect to the receipt of mortgage
        interest received in a trade or business, reports of foreclosures and
        abandonments of any Mortgaged Property and cancellation of indebtedness income
        with respect to any Mortgaged Property as required by Sections 6050H, 6050J
        and
        6050P of the Code, respectively. Such reports shall be in form and substance
        sufficient to meet the reporting requirements imposed by such Sections 6050H,
        6050J and 6050P of the Code.

       

      SECTION
        3.24  Obligations
        of the Servicer in Respect of Prepayment Interest Shortfalls.
        Not
        later than 1:00 p.m. New York time on each Servicer Remittance Date, the
        Servicer shall remit to the Certificate Account an amount (“Compensating
        Interest”)
        equal
        to the lesser of (A) the aggregate of the Prepayment Interest Shortfalls
        for the
        related Distribution Date resulting from Principal Prepayment in full or
        in part
        during the related Due Period and (B) its aggregate Servicing Fee received
        in
        the related Due Period and any interest or investment income earned on funds
        deposited in the Custodial Account. The Servicer shall not have the right
        to
        reimbursement for any amounts remitted to the Trustee in respect of Compensating
        Interest. Such amounts so remitted shall be included in the Available
        Distribution Amount and distributed therewith on the next Distribution Date.
        The
        Servicer shall not be obligated to pay Compensating Interest with respect
        to
        Relief Act Interest Shortfall.

       

      SECTION
        3.25  Obligations
        of the Servicer in Respect of Mortgage Rates and Monthly
        Payments.
        In the
        event that a shortfall in any collection on or liability with respect to
        any
        Mortgage Loan results from or is attributable to adjustments to Mortgage
        Rates,
        Monthly Payments or Stated Principal Balances that were made by the Servicer
        in
        a manner not consistent with the terms of the related Mortgage Note applicable
        laws, regulations and rulings and this Agreement, the Servicer, upon discovery
        or receipt of notice thereof, shall immediately deliver to the Trustee for
        deposit in the Certificate Account from its own funds the amount of any such
        shortfall and shall indemnify and hold harmless the Trust Fund, the Trustee,
        the
        Depositor and any successor Servicer in respect of any such liability. Such
        indemnities shall survive the termination or discharge of this Agreement.
        Notwithstanding the foregoing, this Section
        3.25
        shall
        not limit the ability of the Servicer to seek recovery of any such amounts
        from
        the related Mortgagor under the terms of the related Mortgage Note, as permitted
        by law.

       

      SECTION
        3.26  Advance
        Facility.
        (a) The
        Servicer is hereby authorized to enter into a financing or other facility
        (any
        such arrangement an “Advance
        Facility”)
        with
        any Person which provides that such Person (an “Advancing
        Person”)
        may
        fund Advances and/or Servicing Advances to the Trust Fund under this Agreement,
        although no such facility shall reduce or otherwise affect the Servicer’s
        obligation to fund such Advances and/or Servicing Advances. If the Servicer
        enters into such an Advance Facility pursuant to this Section
        3.26,
        upon
        reasonable request of the Advancing Person, the Trustee shall execute a letter
        of acknowledgment, confirming its receipt of notice of the existence of such
        Advance Facility. To the extent that an Advancing Person funds any Advance
        or
        any Servicing Advance and the Servicer provides the Trustee with an Officers’
Certificate that such Advancing Person is entitled to reimbursement, such
        Advancing Person shall be entitled to receive reimbursement pursuant to this
        Agreement for such amount to the extent provided in Section
        3.26(b).
        Such
        Officers’ Certificate must specify the amount of the reimbursement, the Section
        of this Agreement that permits the applicable Advance or Servicing Advance
        to be
        reimbursed and the section(s) of the Advance Facility that entitle the Advancing
        Person to request reimbursement from the Trustee, rather than the Servicer
        or
        proof of an event of default under the Advance Facility. The Trustee shall
        have
        no duty or liability with respect to any calculation of any reimbursement
        to be
        paid to an Advancing Person and shall be entitled to rely without independent
        investigation on the Advancing Person’s notice provided pursuant to this
Section
        3.26.
        The
        Trustee shall have no responsibility to track or monitor the administration
        of
        the Advance Facility. An Advancing Person whose obligations hereunder are
        limited to the funding of Advances and/or Servicing Advances shall not be
        required to meet the qualifications of the Servicer or a Sub-Servicer pursuant
        to Section
        3.02
        hereof
        and will not be deemed to be a Sub-Servicer under this Agreement.

      
        
           

        

        
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      (b) If
        an
        advancing facility is entered into, then the Servicer shall not be permitted
        to
        reimburse itself therefor under Section
        3.11(a)(ii),
        Section
        3.11(a)(iii)
        and
Section
        3.11(a)(vi)
        prior to
        the remittance to the Trust Fund, but instead the Servicer shall remit such
        amounts in accordance with the documentation establishing the Advance Facility
        to such Advancing Person or to a trustee, agent or custodian (an “Advance
        Facility Trustee”)
        designated by such Advancing Person. The Trustee is hereby authorized to
        pay to
        the Advancing Person, reimbursements for Advances and Servicing Advances
        from
        the Certificate Account to the same extent the Servicer would have been
        permitted to reimburse itself for such Advances and/or Servicing Advances
        in
        accordance with Section
        3.11(a)(ii),
        Section
        3.11(a)(iii)
        and
Section
        3.11(a)(vi),
        as the
        case may be, had the Servicer itself funded such Advance or Servicing Advance.
        The Trustee is hereby authorized to pay directly to the Advancing Person
        such
        portion of the Servicing Fee as the parties to any advancing facility agree
        in
        writing.

       

      (c) All
        Advances and Servicing Advances made pursuant to the terms of this Agreement
        shall be deemed made and shall be reimbursed on a “first in-first out” (FIFO)
        basis.

       

      (d) Any
        amendment to this Section
        3.26
        or to
        any other provision of this Agreement that may be necessary or appropriate
        to
        effect the terms of an Advance Facility as described generally in this
Section
        3.26,
        including amendments to add provisions relating to a successor Servicer,
        may be
        entered into by the Trustee and the Servicer without the consent of any
        Certificateholder, notwithstanding anything to the contrary in this Agreement;
        provided,
        however,
        such
        amendment shall otherwise comply with Section
        13.01
        hereof.
        All costs and expenses (including attorneys’ fees) of each party hereto related
        to such amendment shall be borne by the Servicer without reimbursement from
        the
        Trust Fund.

       

      SECTION
        3.27  Solicitations.
        From
        and after the Closing Date, the Servicer agrees that it will not take any
        action
        or permit or cause any action to be taken by any of its agents and Affiliates,
        or by any independent contractors or independent mortgage brokerage companies
        on
        the Servicer’s behalf, to personally, by telephone, mail or electronic mail,
        solicit the Mortgagor under any Mortgage Loan for the purpose of refinancing
        such Mortgage Loan; provided,
        that
        the Servicer may solicit any Mortgagor for whom the Servicer has received
        a
        request for verification of mortgage, a request for demand for payoff, a
        mortgagor initiated written or verbal communication indicating a desire to
        prepay the related Mortgage Loan, another mortgage company has pulled a credit
        report on the mortgagor or the mortgagor initiates a title search; provided
        further, it is understood and agreed that promotions undertaken by the Servicer
        or any of its Affiliates which (i) concern optional insurance products or
        other
        additional products or (ii) are directed to the general public at large,
        including, without limitation, mass mailings based on commercially acquired
        mailing lists, newspaper, radio and television advertisements shall not
        constitute solicitation under this Section, nor is the Servicer prohibited
        from
        responding to unsolicited requests or inquiries made by a Mortgagor or an
        agent
        of a Mortgagor. Furthermore, the Servicer shall be permitted to include in
        its
        monthly statements to borrowers or otherwise, statements regarding the
        availability of the Servicer’s counseling services with respect to refinancing
        mortgage loans.

      
        
           

        

        
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      ARTICLE
        IV 

       

      PAYMENTS
        TO CERTIFICATEHOLDERS

       

      SECTION
        4.01  Distributions.
        (a) (1)
        On each Distribution Date, the following amounts, in the following order
        of
        priority, shall be distributed by REMIC I to REMIC II on account of the REMIC
        I
        Regular Interests or withdrawn from the Certificate Account and distributed
        to
        the holders of the Class R-I Interest, as the case may be:

       

      (i) first,
        to
        Holders of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTA1,
        REMIC I Regular Interest I-LTA2, REMIC I Regular Interest I-LTA3, REMIC I
        Regular Interest I-LTA4, REMIC I Regular Interest I-LTM1, REMIC I Regular
        Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest
        I-LTM4, REMIC I Regular Interest I-LTM5, REMIC I Regular Interest I-LTM6,
        REMIC
        I Regular Interest I-LTM7, REMIC I Regular Interest I-LTM8, REMIC I Regular
        Interest I-LTM9, REMIC I Regular Interest I-LTM10 and REMIC I Regular Interest
        I-LTZZ, in an amount equal to (A) the Uncertificated Interest on such REMIC
        I
        Regual Interest for such Distribution Date, plus
        (B) any
        amounts in respect thereof remaining unpaid from previous Distribution Dates.
        Amounts payable as Uncertificated Interest in respect of REMIC I Regular
        Interest I-LTZZ shall be reduced when the sum of the REMIC I Overcollateralized
        Amount is less than the REMIC I Required Overcollateralized Amount, by the
        lesser of (x) the amount of such difference and (y) the Maximum I-LTZZ
        Uncertificated Interest Deferral Amount and such amounts will be payable
        to the
        Holders of REMIC I Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2,
        REMIC I Regular Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I
        Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular
        Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest
        I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7,
        REMIC
        I Regular Interest I-LTM8, REMIC I Regular Interest I-LTM9 and REMIC Regular
        Interest I-LTM10 in the same proportion as the Overcollateralization Increase
        Amount is allocated to the Corresponding Certificates and the Uncertificated
        Balance of REMIC I Regular Interest I-LTZZ shall be increased by such
        amount;

      
        
           

        

        
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      (ii) second,
        to the Holders of REMIC I Regular Interests, in an amount equal to the remainder
        of the Available Distribution Amount for such Distribution Date after the
        distributions made pursuant to clause
        (i)
        above,
        allocated as follows:

       

      (a) 98.00%
        of
        such remainder (less the amount payable in clause
        (e)
        below),
        to the Holders of REMIC I Regular Interest I-LTAA, until the Uncertificated
        Balance of such REMIC I Regular Interest is reduced to zero;

       

      2%
        of
        such remainder, first to the Holders of REMIC I Regular Interest I-LTA1,
        REMIC I
        Regular Interest I-LTA2, REMIC I Regular Interest I-LTA3, REMIC I Regular
        Interest I-LTA4, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest
        I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4,
        REMIC
        I Regular Interest I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I Regular
        Interest I-LTM7, REMIC I Regular Interest I-LTM8, REMIC I Regular Interest
        I-LTM9 and REMIC Regular Interest I-LTM10, 1.00% of and in the same proportion
        as principal payments are allocated to the Corresponding Certificates, until
        the
        Uncertificated Balances of such REMIC I Regular Interests are reduced to
        zero;
        and second, to the Holders of REMIC I Regular Interest I-LTZZ, (less the
        amount
        payable in clause
        (c)
        below),
        until the Uncertificated Balance of such REMIC I Regular Interest is reduced
        to
        zero; then

       

      (b) to
        the
        Holders of REMIC I Regular Interest I-LTP, on the Distribution Date immediately
        following the expiration of the latest Prepayment Charge as identified on
        the
        Prepayment Charge Schedule or any Distribution Date thereafter until $100
        has
        been distributed pursuant to this clause; and

       

      (c) any
        remaining amount to the Holders of the Class R Certificates (as Holder of
        the
        Class R-I Interest);

       

      provided,
        however,
        that
        98.00% and 2.00% of any principal payments that are attributable to an
        Overcollateralization Reduction Amount shall be allocated to Holders of REMIC
        I
        Regular Interest I-LTAA and REMIC I Regular Interest I-LTZZ,
        respectively.

       

      (2) On
        each
        Distribution Date, the Trustee shall withdraw from the Certificate Account
        an
        amount equal to the Interest Remittance Amount and distribute to the
        Certificateholders the following amounts, in the following order of
        priority:

      
        
           

        

        
          89

          
            

          

        

        
           

        

      

       

      (i) to
        the
        Holders of each Class of the Class A Certificates, on a pro
        rata
        basis
        based on the entitlement of each such Class, an amount equal to the Senior
        Interest Distribution Amount allocable to such Class of the Class A
        Certificates; and

       

      (ii) sequentially,
        to the Holders of the Class M-1 Certificates, Class M-2 Certificates, Class
        M-3
        Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6
        Certificates, Class M-7 Certificates, Class M-8 Certificates, Class M-9
        Certificates, Class M-10 Certificates, in that order, an amount equal to
        the
        Interest Distribution Amount allocable to each such Class.

       

      (3) On
        each
        Distribution Date, the Trustee shall withdraw from the Certificate Account
        an
        amount equal to the Principal Distribution Amount and distribute to the
        Certificateholders the following amounts, in the following order of
        priority:

       

      (A) On
        each
        Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger
        Event
        is in effect, the Principal Distribution Amount shall be distributed in the
        following order of priority:

       

      (i) sequentially,
        to the holders of the Class A-1 Certificates, Class A-2 Certificates, Class
        A-3
        Certificates and Class A-4 Certificate, in that order, until the aggregate
        Certificate Principal Balance of the Class A Certificates have been reduced
        to
        zero; and

       

      (ii) sequentially,
        to the holders of the Class M-1 Certificates, Class M-2 Certificates, Class
        M-3
        Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6
        Certificates, Class M-7 Certificates, Class M-8 Certificates, Class M-9
        Certificates and Class M-10 Certificates, in that order, until the Certificate
        Principal Balance of each such Class has been reduced to zero.

       

      (B) On
        each
        Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger
        Event is not in effect, the Principal Distribution Amount shall be distributed
        in the following order of priority:

       

      (i) sequentially,
        to the holders of the Class A-1 Certificates, Class A-2 Certificates, Class
        A-3
        Certificates and Class A-4 Certificate, in that order, up to an amount equal
        to
        the Class A Principal Distribution Amount, until the aggregate Certificate
        Principal Balance of the Class A Certificates have been reduced to zero;
        and

       

      (ii) sequentially,
        to the Holders of the Class M-1 Certificates, Class M-2 Certificates, Class
        M-3
        Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6
        Certificates, Class M-7 Certificates, Class M-8 Certificates, Class M-9
        Certificates and Class M-10 Certificates, in that order, up to an amount
        equal
        to the related Class M Principal Distribution Amount until the Certificate
        Principal Balance of each such class has been reduced to zero.

      
        
           

        

        
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      On
        or
        after the occurrence of the Credit Support Depletion Date, all priorities
        relating to distributions as described in Section 4.01(a)(3) of this Agreement
        in respect of principal among the Class A Certificates will be disregarded,
        and
        the Principal Distribution Amount will be distributed to the remaining Class
        A
        Certificates on a pro rata basis in accordance with their respective outstanding
        Certificate Principal Balances.

       

      (4) On
        each
        Distribution Date, the Net Monthly Excess Cashflow shall be distributed by
        the
        Trustee as follows:

       

      (i) to
        the
        Holders of the Class or Classes of Certificates then entitled to receive
        distributions in respect of principal, as part of the Principal Distribution
        Amount in an amount up to the Overcollateralization Increase Amount for the
        Certificates, applied to reduce the Certificate Principal Balance of such
        Certificates until the aggregate Certificate Principal Balance of such
        Certificates is reduced to zero;

       

      (ii) sequentially,
        to the Holders of the Class M-1 Certificates, Class M-2 Certificates , Class
        M-3
        Certificates , Class M-4 Certificates, Class M-5 Certificates , Class M-6
        Certificates, Class M-7 Certificates, Class M-8 Certificates, Class M-9
        Certificates and Class M-10 Certificates in that order, in each case, up
        to an
        amount equal to the Interest Carry Forward Amount allocable to such Class
        of
        Certificates;

       

      (iii) concurrently,
        on a pro
        rata
        basis,
        based on the amount of any Allocated Realized Loss Amounts previously allocated
        thereto that remain unreimbursed, to the Holders of the Class A-1 Certificates,
        Class A-2 Certificates, Class A-3 Certificates and Class A-4 Certificates,
        and
        then sequentially to the Holders of the Class M-1 Certificates, Class M-2
        Certificates, Class M-3 Certificates, Class M-4 Certificates, Class M-5
        Certificates, Class M-6 Certificates, Class M-7 Certificates, Class M-8
        Certificates, Class M-9 Certificates and Class M-10 Certificates, in that
        order,
        in each case up to the related Allocated Realized Loss Amount related to
        each
        such Class of Certificates for such Distribution Date;

       

      (iv) to
        the
        Holders of the Class A Certificates and the Mezzanine Certificates, any related
        unpaid Net WAC Rate Carryover Amount distributed to the Holders of the Class
        A
        Certificates on a pro rata basis based on the remaining Net WAC Rate Carryover
        Amount for each such Class and then to the Holders of the Class of Mezzanine
        Certificates in order of Highest Priority;

       

      (v) to
        pay
        any Swap Termination Payments owed to the Swap Counterparty due to a Swap
        Counterparty Trigger Event;

       

      (vi) to
        the
        Holders of the Class CE Certificates, (a) the Interest Distribution Amount
        and any Overcollateralization Reduction Amount for such Distribution Date
        and
        (b) on any Distribution Date on which the aggregate Certificate Principal
        Balance of the Class A Certificates and the Mezzanine Certificates have been
        reduced to zero, any remaining amounts in reduction of the Certificate Principal
        Balance of the Class CE Certificates, until the Certificate Principal Balance
        thereof has been reduced to zero; and

      
        
           

        

        
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      (vii) to
        the
        Holders of the Class R Certificates, any remaining amounts; provided that
        if
        such Distribution Date is the Distribution Date immediately following the
        expiration of the latest Prepayment Charge term on a Mortgage Loan as identified
        on the Mortgage Loan Schedule or any Distribution Date thereafter, then any
        such
        remaining amounts will be distributed first, to the Holders of the Class
        P
        Certificates, until the Certificate Principal Balance thereof has been reduced
        to zero; and second, to the Holders of the Class R Certificates.

       

      (b) On
        each
        Distribution Date, the Trustee shall withdraw any amounts then on deposit
        in the
        Certificate Account that represent Prepayment Charges collected by the Servicer,
        during the related Prepayment Period in connection with the Principal Prepayment
        of any of the Mortgage Loans or any Servicer Prepayment Charge Payment Amount
        and shall distribute such amounts to the Holders of the Class P Certificates.
        Such distributions shall not be applied to reduce the Certificate Principal
        Balance of the Class P Certificates.

       

      Following
        the foregoing distributions, an amount equal to the amount of Subsequent
        Recoveries shall be applied to increase the Certificate Principal Balance
        of the
        Class of Certificates with the Highest Priority up to the extent of such
        Realized Losses previously allocated to that Class of Certificates pursuant
        to
Section
        4.04.
        An
        amount equal to the amount of any remaining Subsequent Recoveries shall be
        applied to increase the Certificate Principal Balance of the Class of
        Certificates with the next Highest Priority, up to the amount of such Realized
        Losses previously allocated to that Class of Certificates pursuant to
Section
        4.04.
        Holders
        of such Certificates will not be entitled to any distribution in respect
        of
        interest on the amount of such increases for any Interest Accrual Period
        preceding the Distribution Date on which such increase occurs. Any such
        increases shall be applied to the Certificate Principal Balance of each
        Certificate of such Class in accordance with its respective Percentage
        Interest.

       

      (c) All
        distributions made with respect to each Class of Certificates on each
        Distribution Date shall be allocated pro
        rata
        among
        the outstanding Certificates in such Class based on their respective Percentage
        Interests. Payments in respect of each Class of Certificates on each
        Distribution Date shall be made to the Holders of the respective Class of
        record
        on the related Record Date (except as otherwise provided in Section
        4.01(e)
        or
Section
        9.01
        respecting the final distribution on such Class), based on the aggregate
        Percentage Interest represented by their respective Certificates, and shall
        be
        made by wire transfer of immediately available funds to the account of any
        such
        Holder at a bank or other entity having appropriate facilities therefor,
        if such
        Holder shall (i) own Certificates having denominations aggregating at least
        $1,000,000 and (ii) have so notified the Trustee in writing at least five
        Business Days prior to the Record Date immediately prior to such Distribution
        Date, or otherwise by check mailed by first class mail to the address of
        such
        Holder appearing in the Certificate Register. The final distribution on each
        Certificate shall be made in like manner, but only upon presentment and
        surrender of such Certificate at the office of the Trustee maintained for
        such
        purpose pursuant to Section
        8.12
        or such
        other location specified in the notice to Certificateholders of such final
        distribution.

      
        
           

        

        
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      Each
        distribution with respect to a Book-Entry Certificate shall be paid to the
        Depository, as Holder thereof, and the Depository shall be responsible for
        crediting the amount of such distribution to the accounts of its Depository
        Participants in accordance with its normal procedures. Each Depository
        Participant shall be responsible for disbursing such distribution to the
        Certificate Owners that it represents and to each indirect participating
        brokerage firm (a “brokerage firm” or “indirect participating firm”) for which
        it acts as agent. Each brokerage firm shall be responsible for disbursing
        funds
        to the Certificate Owners that it represents. None of the Trustee, the Depositor
        or the Servicer shall have any responsibility therefor except as otherwise
        provided by this Agreement or applicable law.

       

      (d) The
        rights of the Certificateholders to receive distributions in respect of the
        Certificates, and all interests of the Certificateholders in such distributions,
        shall be as set forth in this Agreement. None of the Holders of any Class
        of
        Certificates, the Trustee or the Servicer shall in any way be responsible
        or
        liable to the Holders of any other Class of Certificates in respect of amounts
        properly previously distributed on the Certificates.

       

      (e) Except
        as
        otherwise provided in Section
        9.01,
        whenever the Trustee expects that the final distribution with respect to
        any
        Class of Certificates will be made on the next Distribution Date, the Trustee
        shall, no later than three (3) days before the related Distribution Date
        (to the
        extent that an accurate Remittance Report is received in a timely manner
        by the
        Trustee), mail to each Holder on such date of such Class of Certificates
        a
        notice to the effect that:

       

      (i) the
        Trustee expects that the final distribution with respect to such Class of
        Certificates will be made on such Distribution Date but only upon presentation
        and surrender of such Certificates at the office of the Trustee therein
        specified, and

       

      (ii) no
        interest shall accrue on such Certificates from and after the end of the
        related
        Interest Accrual Period.

       

      Any
        funds
        not distributed to any Holder or Holders of Certificates of such Class on
        such
        Distribution Date because of the failure of such Holder or Holders to tender
        their Certificates shall, on such date, be set aside and held in trust by
        the
        Trustee and credited to the account of the appropriate non-tendering Holder
        or
        Holders. If any Certificates as to which notice has been given pursuant to
        this
Section
        4.01(e)
        shall
        not have been surrendered for cancellation within six months after the time
        specified in such notice, the Trustee shall mail a second notice to the
        remaining non-tendering Certificateholders to surrender their Certificates
        for
        cancellation in order to receive the final distribution with respect thereto.
        If
        within one year after the second notice all such Certificates shall not have
        been surrendered for cancellation, the Trustee shall, directly or through
        an
        agent, mail a final notice to the remaining non-tendering Certificateholders
        concerning surrender of their Certificates and shall continue to hold any
        remaining funds for the benefit of non-tendering Certificateholders. The
        costs
        and expenses of maintaining the funds in trust and of contacting such
        Certificateholders shall be paid out of the assets held in trust for such
        Certificateholders. If within one year after the final notice any such
        Certificates shall not have been surrendered for cancellation, the Trustee
        shall
        pay to Bear, Stearns & Co. Inc., as representative for the underwriters, in
        accordance with its wiring instructions, all such amounts, and all rights
        of
        non-tendering Certificateholders in or to such amounts shall thereupon cease.
        No
        interest shall accrue or be payable to any Certificateholder on any amount
        held
        in trust by the Trustee as a result of such Certificateholder’s failure to
        surrender its Certificate(s) for final payment thereof in accordance with
        this
Section
        4.01(e).
        Any
        such amounts held in trust by the Trustee shall be held in an Eligible Account
        and shall be held uninvested.

      
        
           

        

        
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      (f) Notwithstanding
        anything to the contrary herein, (i) in no event shall the Certificate Principal
        Balance of a Class A Certificate or a Mezzanine Certificate be reduced more
        than
        once in respect of any particular amount allocated to such Certificate in
        respect of Realized Losses pursuant to Section
        4.04
        and (ii)
        in no event shall the Uncertificated Balance of a REMIC I Regular Interest
        be reduced more than once in respect of any particular amount both
        (a) allocated to such REMIC I Regular Interest in respect of Realized
        Losses pursuant to Section 4.04
        and (b)
        distributed on such REMIC I Regular Interest in reduction of the Uncertificated
        Balance thereof pursuant to this Section
        4.01.

       

      SECTION
        4.02  Statements
        to Certificateholders.
        On the
        24th
        day of
        any month, or if such 24th
        day is
        not a Business Day, the Business Day immediately following such 24th
        day, the
        Trustee shall prepare and make available via its website to each Holder of
        the
        Regular Certificates, a statement as to the distributions made on such
        Distribution Date setting forth:

       

    

    (i) applicable
      Record Date and Determination Date for calculating such
      distribution;

     

    (ii) the
      aggregate amount of payments received and the sources thereof for distributions,
      fees and expenses;

     

    (iii) the
      amount of the distribution made on such Distribution Date to the Holders of
      the
      Certificates of each Class allocable to principal; 

     

    (iv) the
      amount of the distribution made on such Distribution Date to the Holders of
      the
      Class P Certificates allocable to Prepayment Charges;

     

    (v) the
      amount of the distribution made on such Distribution Date to the Holders of
      the
      Certificates of each Class allocable to interest;

     

    (vi) the
      amount of any fees or expenses paid, and the identity of the party receiving
      such fees or expenses, including the aggregate Servicing Fee received by the
      Servicer during the related Due Period and such other customary information
      as
      the Trustee deems necessary or desirable, or which a Certificateholder
      reasonably requests, to enable Certificateholders to prepare their tax
      returns;

     

    (vii) the
      amount of Net
      Monthly Excess Cashflow or
      and
      the disposition of such Net Monthly Excess Cashflow;

     

    
      
        
        

      

      
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    (viii) [Reserved];

     

    (ix) the
      aggregate amount, terms and general purpose of Advances made or reimbursed
      for
      such Distribution Date;

     

    (x) any
      material breaches of mortgage loan representations or warranties or covenants
      in
      this Agreement;

     

    (xi) any
      material modifications, extensions or waivers to the terms of the Mortgage
      Loans
      during the related Due Period or that have cumulatively become material over
      time;

     

    (xii) to
      the
      extent not included in the related Form 10-D, information regarding any new
      issuance of asset-backed securities backed by the same asset pool or any pool
      asset changes;

     

    (xiii) the
      aggregate Stated Principal Balance of the Mortgage Loans and any REO Properties
      at the close of business on such Distribution Date;

     

    (xiv) the
      number, aggregate principal balance, weighted average remaining term to maturity
      and weighted average Mortgage Rate of the Mortgage Loans as of the related
      Due
      Date;

     

    (xv) delinquency
      and loss information (according to the OTS delinquency calculation method)
      relating to the Mortgage Loans, including the number and aggregate unpaid
      principal balance of Mortgage Loans (a) delinquent 30 to 59 days, (b)
      delinquent 60 to 89 days, (c) delinquent 90 or more days, in each case, as
      of
      the last day of the preceding calendar month, (d) as to which foreclosure
      proceedings have been commenced and (e) with respect to which the related
      Mortgagor has filed for protection under applicable bankruptcy laws, with
      respect to whom bankruptcy proceedings are pending or with respect to whom
      bankruptcy protection is in force;

     

    (xvi) with
      respect to any Mortgage Loan that became an REO Property during the preceding
      calendar month, the loan number of such Mortgage Loan, the unpaid principal
      balance and the Stated Principal Balance of such Mortgage Loan as of the date
      it
      became an REO Property;

     

    (xvii) to
      the
      extent such information is provided to the Trustee by the Servicer, the book
      value of any REO Property as of the close of business on the last Business
      Day
      of the calendar month preceding the Distribution Date;

     

    (xviii) the
      aggregate amount of Principal Prepayments made during the related Prepayment
      Period;

     

    (xix) the
      aggregate amount of Realized Losses incurred during the related Prepayment
      Period and the aggregate amount of Realized Losses incurred since the Closing
      Date;

     

    
      
        
        

      

      
        95

        
          

        

      

      
        
        

      

    

    

     

    (xx) the
      aggregate amount of Extraordinary Trust Fund Expenses withdrawn from the
      Custodial Account or the Certificate Account for such Distribution
      Date;

     

    (xxi) the
      aggregate Certificate Principal Balance and Notional Amount, as applicable,
      of
      each Class of Certificates, after giving effect to the distributions, and
      allocations of Realized Losses, made on such Distribution Date, separately
      identifying any reduction thereof due to allocations of Realized
      Losses;

     

    (xxii) the
      Certificate Factor for each such Class of Certificates applicable to such
      Distribution Date;

     

    (xxiii) the
      Interest Distribution Amount in respect of the Class A Certificates, the
      Mezzanine Certificates and the Class CE Certificates for such Distribution
      Date
      and the Interest Carry Forward Amount, if any, with respect to the Class A
      Certificates and the Mezzanine Certificates on such Distribution Date, and
      in
      the case of the Class A Certificates, the Mezzanine Certificates and the Class
      CE Certificates, separately identifying any reduction thereof due to allocations
      of Realized Losses, Prepayment Interest Shortfalls and Relief Act Interest
      Shortfalls;

     

    (xxiv) the
      aggregate amount of any Prepayment Interest Shortfall for such Distribution
      Date, to the extent not covered by payments by the Servicer pursuant to
Section
      3.24;

     

    (xxv) the
      aggregate amount of Relief Act Interest Shortfalls for such Distribution
      Date;

     

    (xxvi) the
      Overcollateralization Target Amount and the Credit Enhancement Percentage for
      such Distribution Date;

     

    (xxvii) the
      Overcollateralization Increase Amount, if any, for such Distribution
      Date;

     

    (xxviii) the
      Overcollateralization Reduction Amount, if any, for such Distribution
      Date;

     

    (xxix) the
      respective Pass-Through Rates applicable to the Class A Certificates, the
      Mezzanine Certificates, the Class CE Certificates for such Distribution Date
      and
      the Pass-Through Rate applicable to the Class A Certificates and the Mezzanine
      Certificates for the immediately succeeding Distribution Date;

     

    (xxx) the
      Net
      WAC Rate Carryover Amount for the Class A Certificates and the Mezzanine
      Certificates, if any, for such Distribution Date and the amount remaining unpaid
      after reimbursements therefor on such Distribution Date;

     

    (xxxi) whether
      a
      Trigger Event is in effect; and

     

    
      
        
        

      

      
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    (xxxii) the
      amount of any Net Swap Payment payable to the Trustee on behalf of the Trust,
      any Net Swap Payment payable to the Swap Counterparty, any Swap Termination
      Payment payable to the Trustee on behalf of the Trust and any Swap Termination
      Payment payable to the Swap Counterparty.

     

    The
      Trustee shall make such statement (and, at its option, any additional files
      containing the same information in an alternative format) available each month
      to Certificateholders, the Servicer and the Rating Agencies via the Trustee’s
      internet website. The Trustee’s internet website shall initially be located at
      https://www.ctslink.com and assistance in using the website can be obtained
      by
      calling the Trustee’s investor relations desk at 1-301-815-6600. Parties that
      are unable to use the above distribution options are entitled to have a paper
      copy mailed to them via first class mail by calling the investor relations
      desk
      and indicating such. The Trustee shall have the right to change the way such
      statements are distributed in order to make such distribution more convenient
      and/or more accessible to the above parties and the Trustee shall provide timely
      and adequate notification to all above parties regarding any such
      changes.

    
       

      In
        the
        case of information furnished pursuant to subclauses
        (iii), (iv)
        and
(v)
        above,
        the amounts shall be expressed as a dollar amount per Single Certificate
        of the
        relevant Class.

       

      Within
        a
        reasonable period of time after the end of each calendar year, the Trustee
        shall
        furnish to each Person who at any time during the calendar year was a Holder
        of
        a Regular Certificate a statement containing the information set forth in
        subclauses
        (iii), (iv)
        and
(v)
        above,
        aggregated for such calendar year or applicable portion thereof during which
        such person was a Certificateholder. Such obligation of the Trustee shall
        be
        deemed to have been satisfied to the extent that substantially comparable
        information shall be provided by the Trustee pursuant to any requirements
        of the
        Code as from time to time are in force.

       

      Within
        a
        reasonable period of time after the end of each calendar year, the Trustee
        shall
        furnish to each Person who at any time during the calendar year was a Holder
        of
        a Residual Certificate a statement setting forth the amount, if any, actually
        distributed with respect to the Residual Certificates, as appropriate,
        aggregated for such calendar year or applicable portion thereof during which
        such Person was a Certificateholder.

       

      The
        Trustee shall, upon request, furnish to each Certificateholder, during the
        term
        of this Agreement, such periodic, special, or other reports or information,
        whether or not provided for herein, as shall be reasonable with respect to
        the
        Certificateholder, or otherwise with respect to the purposes of this Agreement,
        all such reports or information to be provided at the expense of the
        Certificateholder in accordance with such reasonable and explicit instructions
        and directions as the Certificateholder may provide. For purposes of this
        Section
        4.02,
        the
        Trustee’s duties are limited to the extent that the Trustee receives timely
        reports as required from the Servicer.

       

      On
        each
        Distribution Date the Trustee shall provide Bloomberg Financial Markets,
        L.P.
        (“Bloomberg”)
        CUSIP
        level factors for each class of Certificates as of such Distribution Date,
        using
        a format and media mutually acceptable to the Trustee and
        Bloomberg.

      
        
          
          

        

        
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      SECTION
        4.03  Remittance
        Reports; Advances.
        (a) On
        the third Business Day following each Determination Date but in no event
        later
        than the 20th
        day of
        each month (or if such 20th
        day is
        not a Business Day, the preceding Business Day), the Servicer shall deliver
        to
        the Trustee by telecopy or electronic mail (or by such other means as the
        Servicer and the Trustee may agree from time to time) a Remittance Report
        with
        respect to the related Distribution Date. On the same date, the Servicer
        shall
        electronically transmit to the Trustee (in a format acceptable to the Trustee),
        a data file containing the information set forth in such Remittance Report
        (including but not limited to the date elements specified in Schedule 4 hereto
        or in such form mutually agreed upon by the Servicer and the Trustee) with
        respect to the related Distribution Date or if electronic transmission is
        not
        available, the Servicer shall forward to the Trustee by overnight mail a
        computer readable magnetic tape. Such Remittance Report will include (i)
        the
        amount of Advances to be made by the Servicer in respect of the related
        Distribution Date, the aggregate amount of Advances outstanding after giving
        effect to such Advances, and the aggregate amount of Nonrecoverable Advances
        in
        respect of such Distribution Date and (ii) such other information with respect
        to the Mortgage Loans as the Trustee may reasonably require to perform the
        calculations necessary to make the distributions contemplated by Section
        4.01
        and to
        prepare the statements to Certificateholders contemplated by Section
        4.02.
        The
        Trustee shall not be responsible to recompute, recalculate or verify any
        information provided to it by the Servicer.

       

      (b) The
        amount of Advances to be made by the Servicer for any Distribution Date shall
        equal, subject to Section
        4.03(d),
        the sum
        of, (i) the aggregate amount of Monthly Payments (with each interest portion
        thereof net of the related Servicing Fee), due on the related Due Date in
        respect of the Mortgage Loans, which Monthly Payments were delinquent as
        of the
        close of business on the related Determination Date and (ii) with respect
        to
        each REO Property, which REO Property was acquired during or prior to the
        related Prepayment Period and as to which REO Property an REO Disposition
        did
        not occur during the related Prepayment Period, an amount equal to the excess,
        if any, of the REO Imputed Interest on such REO Property for the most recently
        ended calendar month, over the net income from such REO Property transferred
        to
        the Certificate Account pursuant to Section
        3.23
        for
        distribution on such Distribution Date.

       

      By
        1:00
        p.m. New York time on the Servicer Remittance Date, the Servicer shall remit
        in
        immediately available funds to the Trustee for deposit in the Certificate
        Account an amount equal to the aggregate amount of Advances, if any, to be
        made
        in respect of the Mortgage Loans and REO Properties for the related Distribution
        Date either (i) from its own funds or (ii) from the Custodial Account, to
        the
        extent of funds held therein for future distribution (in which case it will
        cause to be made an appropriate entry in the records of the Custodial Account
        that amounts held for future distribution have been, as permitted by this
        Section
        4.03,
        used by
        the Servicer in discharge of any such Advance) or (iii) in the form of any
        combination of (i) and (ii) aggregating the total amount of Advances to be
        made
        by the Servicer with respect to the Mortgage Loans and REO Properties. Any
        amounts held for future distribution and so used or withdrawn by the Servicer
        as
        permitted in Section 3.11(a)(ii) shall be appropriately reflected in the
        Servicer’s records and replaced by the Servicer by deposit in the Custodial
        Account on or before any future Servicer Remittance Date to the extent that
        the
        Available Distribution Amount for the related Distribution Date (determined
        without regard to Advances to be made on the Servicer Remittance Date) shall
        be
        less than the total amount that would be distributed to the Classes of
        Certificateholders pursuant to Section
        4.01
        on such
        Distribution Date if such amounts held for future distributions had not been
        so
        used to make Advances. The Trustee will provide notice to the Servicer by
        telecopy by the close of business on the Business Day prior to the Distribution
        Date in the event that the amount remitted by the Servicer to the Trustee
        on
        such date is less than the amount required to be remitted by the Servicer
        as set
        forth in the Remittance Report for the related Distribution Date.

      
        
          
          

        

        
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      (c) The
        obligation of the Servicer to make such Advances is mandatory, notwithstanding
        any other provision of this Agreement but subject to (d)
        below,
        and, with respect to any Mortgage Loan or REO Property, shall continue until
        a
        Final Recovery Determination in connection therewith or the removal thereof
        from
        the Trust Fund pursuant to any applicable provision of this Agreement, except
        as
        otherwise provided in this Section.

       

      (d) Notwithstanding
        anything herein to the contrary, no Advance or Servicing Advance shall be
        required to be made hereunder by the Servicer if such Advance or Servicing
        Advance would, if made, constitute a Nonrecoverable Advance or Nonrecoverable
        Servicing Advance, respectively. The determination by the Servicer that it
        has
        made a Nonrecoverable Advance or a Nonrecoverable Servicing Advance or that
        any
        proposed Advance or Servicing Advance, if made, would constitute a
        Nonrecoverable Advance or Nonrecoverable Servicing Advance, respectively,
        shall
        be evidenced by a certification of a Servicing Officer delivered to the
        Depositor and the Trustee.

       

      SECTION
        4.04  Allocation
        of Realized Losses.
        (a)
        Prior to each Determination Date, the Servicer shall determine as to each
        Mortgage Loan and REO Property: (i) the total amount of Realized Losses,
        if any,
        incurred in connection with any Final Recovery Determinations made during
        the
        related Prepayment Period; (ii) whether and the extent to which such Realized
        Losses constituted Bankruptcy Losses; and (iii) the respective portions of
        such
        Realized Losses allocable to interest and allocable to principal. Prior to
        each
        Determination Date, the Servicer shall also determine as to each Mortgage
        Loan:
        (i) the total amount of Realized Losses, if any, incurred in connection with
        any
        Deficient Valuations made during the related Prepayment Period; and (ii)
        the
        total amount of Realized Losses, if any, incurred in connection with Debt
        Service Reductions in respect of Monthly Payments due during the related
        Due
        Period. The information described in the two preceding sentences that is
        to be
        supplied by the Servicer shall be evidenced by an Officers’ Certificate
        delivered to the Trustee by the Servicer prior to the Determination Date
        immediately following the end of (i) in the case of Bankruptcy Losses allocable
        to interest, the Due Period during which any such Realized Loss was incurred,
        (ii) in the case of Swap Payment Shortfalls, the Distribution Date in the
        month
        in which such Swap Payment Shortfall was incurred and (iii) in the case of
        all other Realized Losses, the Prepayment Period during which any such Realized
        Loss was incurred. Prior to each Determination Date, the Trustee shall determine
        as to each Mortgage Loan: the total amount of Realized Losses, if any, incurred
        in connection with Swap Payment Shortfalls as of the Distribution Date in
        the
        month in which such Swap Payment Shortfalls were incurred. 

       

      (b) All
        Realized Losses on the Mortgage Loans shall be allocated or covered by the
        Trustee on each Distribution Date as follows: first, by Net Monthly Excess
        Cash
        Flow; second, by any amounts available from the Swap Agreement for such
        Distribution Date pursuant to Section 4.07;
        third,
        to the Class CE Certificates, until the Certificate Principal Balance thereof
        has been reduced to zero; fourth, to the Class M-10 Certificates, until the
        Certificate Principal Balance thereof has been reduced to zero; fifth, to
        the
        Class M-9 Certificates, until the Certificate Principal Balance thereof has
        been
        reduced to zero; sixth, to the Class M-8 Certificates, until the Certificate
        Principal Balance thereof has been reduced to zero; seventh, to the Class
        M-7
        Certificates until the Certificate Principal Balance thereof has been reduced
        to
        zero; eighth, to the Class M-6 Certificates until the Certificate Principal
        Balance thereof has been reduced to zero; ninth, to the Class M-5 Certificates
        until the Certificate Principal Balance thereof has been reduced to zero;
        tenth,
        to the Class M-4 Certificates until the Certificate Principal Balance thereof
        has been reduced to zero; eleventh, to the Class M-3 Certificates until the
        Certificate Principal Balance thereof has been reduced to zero; twelfth,
        to the
        Class M-2 Certificates, until the Certificate Principal Balance thereof has
        been
        reduced to zero; thirteenth, to the Class M-1 Certificates, until the
        Certificate Principal Balance thereof has been reduced to zero; and fourteenth,
        concurrently, to the Class A-1 Certificates, Class A-2 Certificates, Class
        A-3
        Certificates and Class A-4 Certificates on a pro
        rata
        basis
        based on the Certificate Principal Balance of each such Class of Certificates,
        until their respective Certificate Principal Balances have been reduced to
        zero.

      
        
          
          

        

        
          99

          
            

          

        

        
          
          

        

      

       

      All
        Realized Losses to be allocated to the Certificate Principal Balances of
        all
        Classes on any Distribution Date shall be so allocated after the actual
        distributions to be made on such date as provided above. All references above
        to
        the Certificate Principal Balance of any Class of Certificates shall be to
        the
        Certificate Principal Balance of such Class immediately prior to the relevant
        Distribution Date, before reduction thereof by any Realized Losses, in each
        case
        to be allocated to such Class of Certificates, on such Distribution
        Date.

       

      Any
        allocation of Realized Losses to a Class A Certificate or Mezzanine Certificate
        on any Distribution Date shall be made by reducing the Certificate Principal
        Balance thereof by the amount so allocated and any allocation of Realized
        Losses
        to a Class CE Certificates shall be made by reducing the amount otherwise
        payable in respect thereof pursuant to Section
        4.01(a)(4)(vi).
        No
        allocations of any Realized Losses shall be made to the Certificate Principal
        Balances of the Class P Certificates.

       

      As
        used
        herein, an allocation of a Realized Loss on a “pro
        rata
        basis”
among two or more specified Classes of Certificates means an allocation on
        a
pro
        rata
        basis,
        among the various Classes so specified, to each such Class of Certificates
        on
        the basis of their then outstanding Certificate Principal Balances prior
        to
        giving effect to distributions to be made on such Distribution Date. All
        Realized Losses and all other losses allocated to a Class of Certificates
        hereunder will be allocated among the Certificates of such Class in proportion
        to the Percentage Interests evidenced thereby.

      
        
          
          

        

        
          100

          
            

          

        

        
          
          

        

      

       

      (c) All
        Realized Losses on the Mortgage Loans shall be allocated by the Trustee on
        each
        Distribution Date to the following REMIC I Regular Interests in the specified
        percentages, as follows: first, to Uncertificated Interest payable to the
        REMIC
        I Regular Interest I-LTAA and REMIC I Regular Interest I-LTZZ up to an aggregate
        amount equal to the REMIC I Interest Loss Allocation Amount, 98% and 2%,
        respectively; second, to the Uncertificated Balances of the REMIC I Regular
        Interest I-LTAA and REMIC I Regular Interest I-LTZZ up to an aggregate amount
        equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively;
        third, to the Uncertificated Balances of REMIC I Regular Interest I-LTAA,
        REMIC
        I Regular Interest I-LTM10 and REMIC I Regular Interest I-LTZZ, 98%, 1% and
        1%,
        respectively, until the Uncertificated Balance of REMIC I Regular Interest
        I-LTM10 has been reduced to zero; fourth, to the Uncertificated Balances
        of
        REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM9 and REMIC
        I
        Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated
        Balance of REMIC I Regular Interest I-LTM9 has been reduced to zero; fifth,
        to
        the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
        Interest I-LTM8 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%,
        respectively, until the Uncertificated Balance of REMIC I Regular Interest
        I-LTM8 has been reduced to zero; sixth, to the Uncertificated Balances of
        REMIC
        I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM7 and REMIC I Regular
        Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance
        of REMIC I Regular Interest I-LTM7 has been reduced to zero; seventh to the
        Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
        Interest I-LTM6 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%,
        respectively, until the Uncertificated Balance of REMIC I Regular Interest
        I-LTM6 has been reduced to zero; eighth to the Uncertificated Balances of
        REMIC
        I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM5 and REMIC I Regular
        Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance
        of REMIC I Regular Interest I-LTM5 has been reduced to zero; ninth to the
        Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
        Interest I-LTM4 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%,
        respectively, until the Uncertificated Balance of REMIC I Regular Interest
        I-LTM4 has been reduced to zero; tenth, to the Uncertificated Balances of
        REMIC
        I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM3 and REMIC I Regular
        Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance
        of REMIC I Regular Interest I-LTM3 has been reduced to zero; eleventh, to
        the
        Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
        Interest I-LTM2 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%,
        respectively, until the Uncertificated Balance of REMIC I Regular Interest
        I-LTM2 has been reduced to zero; twelfth, to the Uncertificated Balances
        of
        REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM1 and REMIC
        I
        Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated
        Balance of REMIC I Regular Interest I-LTM1 has been reduced to zero; and
        thirteenth, concurrently, to the Uncertificated Balances of the REMIC I Regular
        Interest I--LTAA, the REMIC I Regular Interests I-LTA1, I-LTA2, I-LTA3 and
        I-LTA4 on a pro
        rata
        basis,
        and the REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until
        the
        respective Uncertificated Balance of such REMIC I Regular Interests have
        been
        reduced to zero.

       

      SECTION
        4.05  Compliance
        with Withholding Requirements.
        Notwithstanding any other provision of this Agreement, the Trustee shall
        comply
        with all federal withholding requirements respecting payments to
        Certificateholders of interest or original issue discount that the Trustee
        reasonably believes are applicable under the Code. The consent of
        Certificateholders shall not be required for such withholding. In the event
        the
        Trustee does withhold any amount from interest or original issue discount
        payments or advances thereof to any Certificateholder pursuant to federal
        withholding requirements, the Trustee shall indicate the amount withheld
        to such
        Certificateholders.

      
        
          
          

        

        
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      SECTION
        4.06  Exchange
        Commission; Additional Information.
        (a)
        Notwithstanding anything herein to the contrary, the Depositor, and not the
        Trustee, shall be responsible for executing each Form 10-K filed on behalf
        of
        the Trust. 

       

      Within
        15
        days after each Distribution Date, the Trustee shall, in accordance with
        applicable law, prepare and file with the Commission via the Electronic Data
        Gathering and Retrieval System (“EDGAR”),
        any
        Form 10-D (or other comparable Form containing the same or comparable
        information or other information mutually agreed upon), in the form and
        substance as required by the Exchange Act, with a copy of the statement to
        the
        Certificateholders for such Distribution Date as an exhibit thereto. Any
        necessary disclosure in addition to the statement to the Certificateholders
        that
        is required to be included on Form 10-D (“Additional
        Form 10-D Disclosure”)
        shall,
        pursuant to the paragraph immediately below, be reported by the Seller, the
        Depositor, the Trustee, the Trust, any servicer under Item 1108(a)(3) of
        Regulation AB, any originator under Item 1110(b) of Regulation AB, any other
        party contemplated by Items 1100(d)(1), 1112(b), Item 1114(b)(2) or 115(b)
        of
        Regulation AB as identified to the Trustee by the Depositor (together the
        “Reporting
        Parties”),
        any
        party so required under and directed and approved by the Depositor, and the
        Trustee will have no duty or liability for any failure hereunder to determine
        or
        prepare any Additional Form 10-D Disclosure absent such reporting, direction
        and
        approval.

       

      For
        so
        long as the Trust is subject to the reporting requirements of the Securities
        Exchange Act of 1934, as amended (the “Exchange
        Act”),
        within 5 calendar days after the related Distribution Date, (i) the
        Reporting Parties shall be required to provide to the Trustee and the Depositor,
        to the extent known, in EDGAR-compatible form, or in such other form as
        otherwise agreed upon by the Trustee and the Depositor and such party, the
        form
        and substance of the Additional Form 10-D Disclosure applicable to such party,
        and (ii) the Depositor will 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 Trustee has no duty under this Agreement to monitor or enforce
        the
        performance by the Reporting Parties 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 Trustee 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 Trustee shall forward electronically a draft copy
        of the Form 10-D to the Depositor for review. No later than 2 Business Days
        prior to the 15th calendar day after the related Distribution Date, a senior
        officer of the Depositor shall sign the Form 10-D and return an electronic
        or
        fax copy of such signed Form 10-D (with an original executed hard copy to
        follow
        by overnight mail) to the Trustee. If a Form 10-D cannot be filed on time
        or if
        a previously filed Form 10-D needs to be amended, the Trustee will follow
        the
        procedures set forth in the second paragraph of Section
        4.06(d).
        Promptly (but no later than 1 Business Day) after filing with the Commission,
        the Trustee will make available on its internet website a final executed
        copy of
        each Form 10-D prepared and filed by the Trustee. The signing party at the
        Depositor can be contacted as described in Section
        13.05
        hereto.
        The parties to this Agreement acknowledge that the performance by the Trustee
        of
        its duties under this Section 4.06(a)
        related
        to the timely preparation 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
        4.06(a).
        The
        Trustee shall have no liability for any loss, expense, damage, claim arising
        out
        of or with respect to any failure to properly prepare and/or timely file
        such
        Form 10-D, where such failure results from the Trustee’s inability or failure to
        receive, on a timely basis, any information from any other party hereto needed
        to prepare, arrange for execution or file such Form 10-D, not resulting from
        its
        own negligence, bad faith or willful misconduct.

      
        
          
          

        

        
          102

          
            

          

        

        
          
          

        

      

       

      (b)
        Within 90 days 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 2008, the Trustee 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 Trustee within the applicable
        time frames set forth in this Agreement, (i) an annual compliance statement
        for
        the Servicer and each Additional Servicer, as described under Section
        12.04,
        (ii)(A)
        the annual reports on assessment of compliance with servicing criteria for
        the
        Servicer, each Additional Servicer and the Trustee, as described under
Sections
        11.04
        and
12.05,
        and (B)
        if the Servicer’s, each Additional Servicer’s or the Trustee’s report on
        assessment of compliance with servicing criteria described under Sections
        11.04
        and
12.05
        identifies any material instance of noncompliance, disclosure identifying
        such
        instance of noncompliance, or if the Servicer’s, each Additional Servicer’s or
        the Trustee’s report on assessment of compliance with servicing criteria
        described under Sections 11.04
        and
12.05
        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, (iii)(A) the
        registered public accounting firm attestation report for the Servicer, each
        Additional Servicer and the Trustee, as described under Sections
        11.04
        and
12.05,
        and (B)
        if any registered public accounting firm attestation report described under
        Sections
        11.04
        and
12.05
        identifies any material instance of noncompliance, disclosure identifying
        such
        instance of noncompliance, or if any such registered public accounting firm
        attestation report 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, and (iv) a Sarbanes Certification signed by the Depositor
        as
        described in Section
        12.05.
        In
        addition, the Trustee shall sign a certification (in the form attached hereto
        as
Exhibit
        I-2)
        for the
        benefit of the Servicer and its officers, directors and Affiliates regarding
        certain aspects of the Servicer Certification (the “Trustee
        Certification”)
        (provided,
        however,
        that
        the Trustee shall not undertake an analysis of the accountant’s report attached
        as an exhibit to Form 10-K). Any necessary disclosure that is required to
        be
        included on Form 10-K (“Additional
        Form 10-K Disclosure”)
        shall,
        pursuant to the paragraph immediately below, be reported by the Reporting
        Parties and directed and approved by the Depositor, and the Trustee will
        have no
        duty or liability for any failure hereunder to determine or prepare any
        Additional Form 10-K Disclosure absent such reporting, direction and
        approval.

       

      For
        so
        long as the Trust is subject to the reporting requirements of the Exchange
        Act,
        no later than March 10 (with a 5 calendar day cure period), commencing in
        March
        2008 (i) the Reporting Parties shall be required to provide to the Trustee
        and the Depositor, to the extent known, in EDGAR-compatible form, or in such
        other form as otherwise agreed upon by the Trustee and the Depositor and
        such
        party, the form and substance of the Additional Form 10-K Disclosure applicable
        to such party, and (ii) the Depositor will 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 Trustee has no duty under this Agreement to
        monitor
        or enforce the performance by the Reporting Parties 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 Trustee in connection
        with including any Additional Form 10-K Disclosure on Form 10-K pursuant
        to this
        paragraph.

      
        
          
          

        

        
          103

          
            

          

        

        
          
          

        

      

       

      After
        preparing the Form 10-K, the Trustee shall forward electronically a draft
        copy
        of the Form 10-K to the Depositor for review. No later than end of business
        New
        York City time on the 4th Business Day prior to the 10-K Filing Deadline,
        a
        senior officer of the Depositor shall sign the Form 10-K, and return an
        electronic or fax copy of such signed Form 10-K (with an original executed
        hard
        copy to follow by overnight mail) to the Trustee. If a Form 10-K cannot be
        filed
        on time or if a previously filed Form 10-K needs to be amended, the Trustee
        will
        follow the procedures set forth in the second paragraph of Section
        4.06(d).
        Promptly (but no later than 1 Business Day) after filing with the Commission,
        the Trustee will make available on its internet website a final executed
        copy of
        each Form 10-K prepared and filed by the Trustee. The signing party at the
        Depositor can be contacted as described in Section
        13.05.
        The
        parties to this Agreement acknowledge that the performance by the Trustee
        of its
        duties under this Section 4.06(b)
        related
        to the timely preparation and filing of Form 10-K is contingent upon such
        parties (and any Additional Servicer or Servicing Function Participant) strictly
        observing all applicable deadlines in the performance of their duties under
        this
Section
        4.06,
        Sections
        11.04
        and
12.05
        and
Section
        12.04.
        The
        Trustee shall have no liability for any loss, expense, damage, claim arising
        out
        of or with respect to any failure to properly prepare and/or timely file
        such
        Form 10-K, where such failure results from the Trustee’s inability or failure to
        receive, on a timely basis, any information from any other party hereto needed
        to prepare, arrange for execution or file such Form 10-K, not resulting from
        its
        own negligence, bad faith or willful misconduct.

       

      (c)
        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 and to the extent it receives the Form 8-K
        Disclosure Information described below, the Trustee 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-K 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 (“Form
        8-K Disclosure Information”)
        shall,
        pursuant to the paragraph immediately below, be reported by the Reporting
        Parties and directed and approved by the Depositor, and the Trustee will
        have no
        duty or liability for any failure hereunder to determine or prepare any Form
        8-K
        Disclosure Information absent such reporting, direction and
        approval.

       

      For
        so
        long as the Trust is subject to the reporting requirements of the Exchange
        Act,
        no later than end of business on the 2nd Business Day after the occurrence
        of a
        Reportable Event (i) the Reporting Parties hereto shall be required to
        provide to the Trustee and the Depositor, to the extent known, in
        EDGAR-compatible form, or in such other form as otherwise agreed upon by
        the
        Trustee and the Depositor and such party, the form and substance of the Form
        8-K
        Disclosure Information applicable to such party, and (ii) the Depositor will
        approve, as to form and substance, or disapprove, as the case may be, the
        inclusion of the Form 8-K Disclosure Information on Form 8-K. The Trustee
        has no
        duty under this Agreement to monitor or enforce the performance by the Reporting
        Parties 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
        Trustee in connection with including any Form 8-K Disclosure Information
        on Form
        8-K pursuant to this paragraph.

      
        
          
          

        

        
          104

          
            

          

        

        
          
          

        

      

       

      After
        preparing the Form 8-K, the Trustee shall forward electronically a draft
        copy of
        the Form 8-K to the Depositor and the Servicer, if applicable, for review.
        No
        later than Noon New York City time on the 4th Business Day after the Reportable
        Event, a senior officer of the Depositor shall sign the Form 8-K and return
        an
        electronic or fax copy of such signed Form 8-K (with an original executed
        hard
        copy to follow by overnight mail) to the Trustee. If a Form 8-K cannot be
        filed
        on time or if a previously filed Form 8-K needs to be amended, the Trustee
        will
        follow the procedures set forth in the second paragraph of Section
        4.06(d).
        Promptly (but no later than 1 Business Day) after filing with the Commission,
        the Trustee will, make available on its internet website a final executed
        copy
        of each Form 8-K prepared and filed by the Trustee. The signing party at
        the
        Depositor can be contacted as described in Section
        13.05.
        The
        parties to this Agreement acknowledge that the performance by the Trustee
        of its
        duties under this Section
        4.06(c)
        related
        to the timely preparation 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 4.06(c).
        The
        Trustee shall have no liability for any loss, expense, damage, claim arising
        out
        of or with respect to any failure to properly prepare and/or timely file
        such
        Form 8-K, where such failure results from the Trustee’s inability or failure to
        receive, on a timely basis, any information from any other party hereto needed
        to prepare, arrange for execution or file such Form 8-K, not resulting from
        its
        own negligence, bad faith or willful misconduct.

       

      (d)
        On or
        prior to January 30 of the first year in which the Trustee is able to do
        so
        under applicable law, the Trustee shall prepare and file a Form 15 Suspension
        Notification relating to the automatic suspension of reporting in respect
        of the
        Trust under the Exchange Act. 

       

      In
        the
        event that the Trustee is unable to timely file with the Commission all or
        any
        required portion of any Form 8-K, 10-D or 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 Trustee will promptly notify the Depositor and
        the
        Servicer of such inability to make a timely filing with the Commission. In
        the
        case of Form 10-D and 10-K, the Depositor, Servicer and Trustee will cooperate
        to prepare and file a Form 12b-25 and a 10-DA and 10-KA as applicable, pursuant
        to Rule 12b-25 of the Exchange Act. In the case of Form 8-K, the Trustee
        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 succeeding Form 10-D to be filed for the Trust. In the event that
        any
        previously filed Form 8-K, 10-D or 10-K needs to be amended, the Trustee
        will
        notify the Depositor and the Servicer and such parties agree to cooperate
        in
        connection with the Trustee’s preparation of any necessary 8-KA, 10-DA or 10-KA.
        Any Form 15 shall be signed by a senior officer of the Trustee and any Form
        12b-25 or any amendment to Form 10-D, Form 8-K or Form 10-K shall be signed
        by a
        senior officer of the Depositor. The Depositor and Servicer acknowledge that
        the
        performance by the Trustee of its duties under this Section
        4.06(d)
        related
        to the timely preparation and filing of Form 15, a Form 12b-25 or any amendment
        to Form 8-K, 10-D or 10-K is contingent upon the Servicer and the Depositor
        performing their duties under this Section. The Trustee shall have no liability
        for any loss, expense, damage, claim arising out of or with respect to any
        failure to properly prepare and/or timely file any such Form 15, Form 12b-25
        or
        any amendments to Forms 8-K, 10-D or 10-K, where such failure results from
        the
        Trustee’s inability or failure to receive, on a timely basis, any information
        from any other party hereto needed to prepare, arrange for execution or file
        such Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, not
        resulting from its own negligence, bad faith or willful misconduct.

      
        
          
          

        

        
          105

          
            

          

        

        
          
          

        

      

       

      The
        Trustee shall have no responsibility to file any items other than those
        specified in this Section
        4.06;
        provided,
        however,
        the
        Trustee and the Servicer will cooperate with the Depositor in connection
        with
        any additional filings with respect to the Trust Fund as the Depositor deems
        necessary under the Exchange Act. 

       

      SECTION
        4.07  The
        Swap Agreement.
        (a) On
        the Closing Date, the Trustee shall (i) establish and maintain in its name,
        in trust for the benefit of Class A and Mezzanine Certificates, the Swap
        Account
        and (ii) for the benefit of the Class A and Mezzanine Certificates, cause
        the
        Trust to enter into the Swap Agreement. The Trustee shall deposit in the
        Swap
        Account all payments that are payable to the Trust Fund under the Swap
        Agreement. Net Swap Payments and Swap Termination Payments (other than Swap
        Termination Payments resulting from a Swap Counterparty Trigger Event) payable
        by the Trustee to the Swap Counterparty pursuant to the Swap Agreement shall
        be
        excluded from the Available Distribution Amount and shall be paid to the
        Swap
        Counterparty pursuant to the Swap Agreement prior to any distributions to
        the
        Certificateholders. On the Business Day prior to each Distribution Date,
        such
        amounts will be remitted by the Trustee to the Swap Account for payment to
        the
        Swap Counterparty, first to make any Net Swap Payment owed to the Swap
        Counterparty pursuant to the Swap Agreement for such Distribution Date, and
        second to make any Swap Termination Payment (not due to a Swap Counterparty
        Trigger Event) owed to the Swap Counterparty pursuant to the Swap Agreement
        for
        such Distribution Date. For federal income tax purposes, such amounts paid
        to
        the Swap Account on the Business Day prior to each Distribution Date shall
        be
        deemed paid to the Swap Account in respect of REMIC II Regular Interest CE-IO
        to
        the extent of the amount distributable on such REMIC II Regular Interest
        on such
        Distribution Date. Any Swap Termination Payment triggered by a Swap Counterparty
        Trigger Event owed to the Swap Counterparty pursuant to the Swap Agreement
        will
        be subordinated to distributions to the Holders of the Class A and Mezzanine
        Certificates and shall be paid as set forth under Section 4.01(a)(4)(v).
        Net
        Swap Payments payable by the Swap Counterparty to the Trustee on behalf of
        the
        Trust Fund pursuant to the Swap Agreement will be deposited by the Trustee
        into
        the Swap Account. On each Distribution Date, to the extent required, the
        Trustee
        shall withdraw the following amounts from the Swap Account to distribute
        to the
        Certificates in the following order of priority, in the case of clauses
        (D),
        (F),
        (G)
        and
(H),
        to the
        extent not covered by Net Monthly Excess Cash Flow:

      
        
          
          

        

        
          106

          
            

          

        

        
          
          

        

      

       

      (A) first,
        to the
        Holders of the Class A Certificates, to pay any unpaid Senior Interest
        Distribution Amount allocable to such Class of Class A Certificates, on a
        pro rata basis based on the entitlement of each such class (in each case
        to the
        extent not covered by the Interest Remittance Amount);

       

      (B) second,
        to the
        Holders of the Class A Certificates, to pay accrued and unpaid interest to
        the
        extent unpaid from interest collections, but only to the extent of Prepayment
        Interest Shortfalls (not covered by payments by the Servicer pursuant to
        Section
        3.24)
        allocated to such Certificates on such Distribution Date, on a pro rata basis,
        based on the amount of such Prepayment Interest Shortfalls previously allocated
        thereto that remain unreimbursed;

       

      (C) third,
        to
        the
        Holders of the Mezzanine Certificates, in their order of payment priority,
        to
        pay any unpaid Interest Distribution Amount allocable to each such class
        (in
        each case to the extent not covered by the Interest Remittance
        Amount);

       

      (D) fourth,
        to
        the
        Holders of the Mezzanine Certificates, in order of Highest Priority, in each
        case up to the related unpaid Interest Carry Forward Amount related to such
        Certificates for such Distribution Date;

       

      (E) fifth,
        to the
        Holders of the Mezzanine Certificates, in order of Highest Priority, to pay
        accrued and unpaid interest to the extent unpaid from interest collections,
        but
        only to the extent of Prepayment Interest Shortfalls (not covered by payments
        by
        the Servicer pursuant to Section
        3.24)
        allocated to such Certificates on such Distribution Date;

       

      (F) sixth,
        to the
        Holders of the Class A Certificates, on a pro rata basis, based on the amount
        of
        Net WAC Rate Carryover Amounts previously allocated thereto that remain
        unreimbursed, and then sequentially to the Holders of the Class of Mezzanine
        Certificates in order of Highest Priority, the amount of any Net WAC Rate
        Carryover Amounts remaining unpaid as of that Distribution Date; 

       

      (G) seventh,
        to the
        Holders of the Class or Classes of Class A and Mezzanine Certificates then
        entitled to receive distributions in respect of principal, in an amount equal
        to
        the Overcollateralization Increase Amount, distributable as part of the
        Principal Distribution Amount, but only to the extent of the principal portion
        of Realized Losses for such Distribution Date; 

       

      (H) eighth,
        to the
        Holders of the Class A Certificates, on a pro rata basis, based on the amount
        of
        any Allocated Realized Loss Amounts previously allocated thereto that remain
        unreimbursed, and then to the Holders of the Class of Mezzanine Certificates,
        in
        order of Highest Priority, the principal portion of any Allocated Realized
        Loss
        Amount previously allocated thereto that remain unreimbursed; and

       

      (I) ninth,
        to the
        Holders of the Class CE Certificates any balance remaining.

      
        
          
          

        

        
          107

          
            

          

        

        
          
          

        

      

       

      (b)
        Subject to Sections
        8.01
        and
8.02
        hereof,
        the Trustee agrees to comply with the terms of the Swap Agreement and to
        enforce
        the terms and provisions thereof against the Swap Counterparty at the written
        direction of the Holders of Class A and Mezzanine Certificates entitled to
        at
        least 51% of the Voting Rights of such Classes of Certificates, or if the
        Trustee does not receive such direction from such Certificateholders, then
        at
        the written direction of the Class CE Certificateholder.

       

      (c)
        The
        Swap Account shall be an Eligible Account. Amounts held in the Swap Account
        from
        time to time shall continue to constitute assets of the Trust Fund, but not
        of
        any REMIC, until released from the Swap Account pursuant to this Section
        4.07.
        The
        Swap Account constitutes an “outside reserve fund” within the meaning of
        Treasury Regulation Section 1.860G-2(h) and is not an asset of any REMIC.
        The
        Class CE Certificateholder shall be the owner of the Swap Account. The Trustee
        shall keep records that accurately reflect the funds on deposit in the Swap
        Account. All funds in the Swap Account shall remain uninvested.

       

      (d)
        The
        Trustee shall treat the holders of each Class of Certificates (other than
        the
        Class CE Certificates and Class R Certificates) as having entered into a
        notional principal contract with the holders of the Class CE Certificates.
        Pursuant to each such notional principal contract, all holders of Certificates
        (other than the Class CE Certificates and Class R Certificates) shall be
        treated
        as having agreed to pay, on each Distribution Date, to the holder of the
        Class
        CE Certificates an aggregate amount equal to the excess, if any, of (i) the
        amount payable on such Distribution Date on the REMIC II Regular Interest
        corresponding to such Class of Certificates over (ii) the amount payable
        on such
        Class of Certificates on such Distribution Date (such excess, a “Class
        IO Distribution Amount”).
        In
        addition, pursuant to such notional principal contract, the holder of the
        Class
        CE Certificates shall be treated as having agreed to pay the related Net
        WAC
        Rate Carryover Amounts to the holders of the Certificates (other than the
        Class
        CE Certificates and Class R Certificates) in accordance with the terms of
        this
        Agreement. Any payments to the Certificates from amounts deemed received
        in
        respect of this notional principal contract shall not be payments with respect
        to a “regular interest” in a REMIC within the meaning of Code Section
        860G(a)(1). However, any payment from the Certificates (other than the Class
        CE
        Certificates and Class R Certificates) of a Class IO Distribution Amount
        shall
        be treated for tax purposes as having been received by the holders of such
        Certificates in respect of the REMIC II Regular Interest corresponding to
        such
        Class of Certificates and as having been paid by such holders to the Swap
        Account pursuant to the notional principal contract. Thus, each Certificate
        (other than the Class CE Certificates and Class R Certificates) shall be
        treated
        as representing not only ownership of regular interests in REMIC II, but
        also
        ownership of an interest in, and obligations with respect to, a notional
        principal contract.

       

      (e)
        On
        the Closing Date, the Trustee shall establish and maintain a Posted Collateral
        Account pursuant to the terms of the Swap Agreement. The Trustee shall deposit
        in the Posted Collateral Account all collateral posted by the Swap Counterparty
        pursuant to Paragraph 13(g)(i) of the credit support annex to the Swap Agreement
        and held by Trustee, on behalf of the Trust, pursuant to the credit support
        annex to the Swap Agreement. Assets deposited into the Posted Collateral
        Account
        (i) shall not be commingled or used with any other asset held by the Trustee
        and
        (ii) shall not be transferred to any other person or entity except as may
        be
        provided in the Swap Agreement. The Posted Collateral Account shall be an
        Eligible Account. All funds in the Posted Collateral Account shall remain
        uninvested.

      
        
          
          

        

        
          108

          
            

          

        

        
          
          

        

      

       

      SECTION
        4.08  Tax
        Treatment of Swap Payments and Swap Termination Payments.
        (a) For
        federal income tax purposes, each holder of a Class A Certificate or a Mezzanine
        Certificate is deemed to own an undivided beneficial ownership interest in
        a
        REMIC regular interest and the right to receive payments from the Swap Account
        in respect of the Net WAC Rate Carryover Amount, and the obligation to make
        payments to the Swap Account as provided herein. For federal income tax
        purposes, the Trustee will account for payments to each Class A and Mezzanine
        Certificates as follows: each Class A and Mezzanine Certificate will be treated
        as receiving their entire payment from REMIC II (regardless of any Swap
        Termination Payment or obligation under the Swap Agreement) and subsequently
        paying their portion of any Swap Termination Payment in respect of each such
        Class’ obligation under the Swap Agreement. In the event that any such Class is
        resecuritized in a REMIC, the obligation under the Swap Agreement to pay
        any
        such Swap Termination Payment (or any Net Swap Payment), will be made by
        one or
        more of the REMIC Regular Interests issued by the resecuritization REMIC
        subsequent to such REMIC Regular Interest receiving its full payment from
        any
        such Class A or Mezzanine Certificate. Resecuritization of any Class A or
        Mezzanine Certificate in a REMIC will be permissible only if the Trustee
        hereunder is the trustee in such resecuritization.

       

      (b)
        The
        REMIC regular interest corresponding to a Class A or Mezzanine Certificate
        will
        be entitled to receive interest and principal payments at the times and in
        the
        amounts equal to those made on the certificate to which it corresponds, except
        that (i) the maximum interest rate of that REMIC regular interest will equal
        the
        Net WAC Pass-Through Rate computed for this purpose by limiting the base
        calculation amount of the Swap Agreement to the aggregate principal balance
        of
        the Mortgage Loans and (ii) any Swap Termination Payment will be treated
        as
        being payable solely from Net Monthly Excess Cash Flow. As a result of the
        foregoing, the amount of distributions and taxable income on the REMIC regular
        interest corresponding to a Class A or Mezzanine Certificate may exceed the
        actual amount of distributions on the Class A or Mezzanine
        Certificate.

       

      ARTICLE
        V 

       

      THE
        CERTIFICATES

       

      SECTION
        5.01  The
        Certificates.
        (a) The
        Certificates in the aggregate will represent the entire beneficial ownership
        interest in the Mortgage Loans and all other assets included in REMIC
        I.

       

      The
        Certificates will be substantially in the forms annexed hereto as Exhibits
        A-1
        through
A-17.
        The
        Certificates of each Class will be issuable in registered form only, in
        denominations of authorized Percentage Interests as described in the definition
        thereof. Each Certificate will share ratably in all rights of the related
        Class.

       

      Upon
        original issue, the Certificates shall be executed, authenticated and delivered
        by the Trustee to or upon the written order of the Depositor. The Certificates
        shall be executed by manual or facsimile signature on behalf of the Trustee
        by
        an authorized signatory. Certificates bearing the manual or facsimile signatures
        of individuals who were at any time the proper officers of the Trustee shall
        bind the Trustee notwithstanding that such individuals or any of them have
        ceased to hold such offices prior to the authentication and delivery of such
        Certificates or did not hold such offices at the date of such Certificates.
        No
        Certificate shall be entitled to any benefit under this Agreement or be valid
        for any purpose, unless there appears on such Certificate a certificate of
        authentication substantially in the form provided herein executed by the
        Trustee
        by manual signature, and such certificate of authentication 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.

      
        
          
          

        

        
          109

          
            

          

        

        
          
          

        

      

       

      (b) The
        Class
        A Certificates and the Mezzanine Certificates shall initially be issued as
        one
        or more Certificates held by the Book-Entry Custodian or, if appointed to
        hold
        such Certificates as provided below, the Depository and registered in the
        name
        of the Depository or its nominee and, except as provided below, registration
        of
        such Certificates may not be transferred by the Trustee except to another
        Depository that agrees to hold such Certificates for the respective Certificate
        Owners with Ownership Interests therein. The Certificate Owners shall hold
        their
        respective Ownership Interests in and to such Certificates through the
        book-entry facilities of the Depository and, except as provided below, shall
        not
        be entitled to definitive, fully registered Certificates (“Definitive
        Certificates”)
        in
        respect of such Ownership Interests. All transfers by Certificate Owners
        of
        their respective Ownership Interests in the Book-Entry Certificates shall
        be
        made in accordance with the procedures established by the Depository Participant
        or brokerage firm representing such Certificate Owner. Each Depository
        Participant shall only transfer the Ownership Interests in the 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. The
        Trustee is hereby initially appointed as the Book-Entry Custodian and hereby
        agrees to act as such in accordance herewith and in accordance with the
        agreement that it has with the Depository authorizing it to act as such.
        The
        Book-Entry Custodian may, and, if it is no longer qualified to act as such,
        the
        Book-Entry Custodian shall, appoint, by a written instrument delivered to
        the
        Depositor, the Servicer, the Trustee and, if the Trustee is not the Book-Entry
        Custodian, the Trustee, any other transfer agent (including the Depository
        or
        any successor Depository) to act as Book-Entry Custodian under such conditions
        as the predecessor Book-Entry Custodian and the Depository or any successor
        Depository may prescribe, provided that the predecessor Book-Entry Custodian
        shall not be relieved of any of its duties or responsibilities by reason
        of any
        such appointment of other than the Depository. If the Trustee resigns or
        is
        removed in accordance with the terms hereof, the successor Trustee or, if
        it so
        elects, the Depository shall immediately succeed to its predecessor’s duties as
        Book-Entry Custodian. The Depositor shall have the right to inspect, and
        to
        obtain copies of, any Certificates held as Book-Entry Certificates by the
        Book-Entry Custodian.

       

      The
        Trustee, the Servicer and the Depositor may for all purposes (including the
        making of payments due on the respective Classes of Book-Entry Certificates)
        deal with the Depository as the authorized representative of the Certificate
        Owners with respect to the respective Classes of Book-Entry Certificates
        for the
        purposes of exercising the rights of Certificateholders hereunder. The rights
        of
        Certificate Owners with respect to the respective Classes of Book-Entry
        Certificates shall be limited to those established by law and agreements
        between
        such Certificate Owners and the Depository Participants and brokerage firms
        representing such Certificate Owners. Multiple requests and directions from,
        and
        votes of, the Depository as Holder of any Class of Book-Entry Certificates
        with
        respect to any particular matter shall not be deemed inconsistent if they
        are
        made with respect to different Certificate Owners. The Trustee may establish
        a
        reasonable record date in connection with solicitations of consents from
        or
        voting by Certificateholders and shall give notice to the Depository of such
        record date.

      
        
          
          

        

        
          110

          
            

          

        

        
          
          

        

      

       

      If
        (i)(A)
        the Depositor advises the Trustee in writing that the Depository is no longer
        willing or able to properly discharge its responsibilities as Depository,
        and
        (B) the Depositor is unable to locate a qualified successor or (ii) after
        the
        occurrence of a Servicer Event of Default, Certificate Owners representing
        in
        the aggregate not less than 66% of the Ownership Interests of the Book-Entry
        Certificates advise the Trustee through the Depository, in writing, that
        the
        continuation of a book-entry system through the Depository is no longer in
        the
        best interests of the Certificate Owners, the Trustee shall notify all
        Certificate Owners, through the Depository, of the occurrence of any such
        event
        and of the availability of Definitive Certificates to Certificate Owners
        requesting the same. Upon surrender to the Trustee of the Book-Entry
        Certificates by the Book-Entry Custodian or the Depository, as applicable,
        accompanied by registration instructions from the Depository for registration
        of
        transfer, the Trustee shall cause the Definitive Certificates to be issued.
        Such
        Definitive Certificates will be issued in minimum denominations of $25,000,
        except that any beneficial ownership that was represented by a Book-Entry
        Certificate in an amount less than $25,000 immediately prior to the issuance
        of
        a Definitive Certificate shall be issued in a minimum denomination equal
        to the
        amount represented by such Book-Entry Certificate. None of the Depositor,
        the
        Servicer or the Trustee shall be liable for any delay in the delivery of
        such
        instructions and may conclusively rely on, and shall be protected in relying
        on,
        such instructions. Upon the issuance of Definitive Certificates all references
        herein to obligations imposed upon or to be performed by the Depository shall
        be
        deemed to be imposed upon and performed by the Trustee, to the extent applicable
        with respect to such Definitive Certificates, and the Trustee shall recognize
        the Holders of the Definitive Certificates as Certificateholders
        hereunder.

       

      SECTION
        5.02  Registration
        of Transfer and Exchange of Certificates.
        (a) The
        Trustee shall cause to be kept at one of the offices or agencies to be appointed
        by the Trustee in accordance with the provisions of Section
        8.11,
        a
        Certificate Register for the Certificates in which, subject to such reasonable
        regulations as it may prescribe, the Trustee shall provide for the registration
        of Certificates and of transfers and exchanges of Certificates as herein
        provided.

       

      (b) No
        transfer of any Class M-10 Certificate, Class CE Certificate, Class P
        Certificate or Residual Certificate (the “Private
        Certificates”)
        shall
        be made unless that transfer is made pursuant to an effective registration
        statement under the Securities Act of 1933, as amended (the “1933
        Act”),
        and
        effective registration or qualification under applicable state securities
        laws,
        or is made in a transaction that does not require such registration or
        qualification. In the event that such a transfer of a Private Certificate is to
        be made without registration or qualification (other than in connection with
        (i)
        the initial transfer of any such Certificate by the Depositor to an Affiliate
        of
        the Depositor, (ii) the transfer of any such Class CE or Class P Certificate
        to
        the issuer under the Indenture or the indenture trustee under the Indenture
        or
        (iii) a transfer of any such Class CE or Class P Certificate from the issuer
        under the Indenture or the indenture trustee under the Indenture to the
        Depositor or an Affiliate of the Depositor), the Trustee shall require receipt
        of: (i) if such transfer is purportedly being made in reliance upon Rule
        144A
        under the 1933 Act, written certifications from the Certificateholder desiring
        to effect the transfer and from such Certificateholder’s prospective transferee,
        substantially in the forms attached hereto as Exhibit
        F-1;
        and
        (ii) in all other cases, an Opinion of Counsel satisfactory to it that such
        transfer may be made without such registration (which Opinion of Counsel
        shall
        not be an expense of the Trust Fund or of the Depositor, the Trustee, the
        Servicer in its capacity as such or any Sub-Servicer), together with copies
        of
        the written certification(s) of the Certificateholder desiring to effect
        the
        transfer and/or such Certificateholder’s prospective transferee upon which such
        Opinion of Counsel is based, if any. None of the Depositor or the Trustee
        is
        obligated to register or qualify any such Certificates under the 1933 Act
        or any
        other securities laws or to take any action not otherwise required under
        this
        Agreement to permit the transfer of such Certificates without registration
        or
        qualification. Any Certificateholder desiring to effect the transfer of any
        such
        Certificate shall, and does hereby agree to, indemnify the Trustee, the
        Depositor and the Servicer against any liability that may result if the transfer
        is not so exempt or is not made in accordance with such federal and state
        laws.

      
        
          
          

        

        
          111

          
            

          

        

        
          
          

        

      

       

      Notwithstanding
        the foregoing, in the event of any such transfer of any Ownership Interest
        in
        any Private Certificate that is a Book-Entry Certificate, except with respect
        to
        the initial transfer of any such Ownership Interest by the Depositor, such
        transfer shall be required to be made in reliance upon Rule 144A under the
        1933
        Act, and the transferee will be deemed to have made each of the transferee
        representations and warranties set forth Exhibit
        F-1
        hereto
        in respect of such interest as if it was evidenced by a Definitive Certificate.
        The Certificate Owner of any such Ownership Interest in any such Book-Entry
        Certificate desiring to effect such transfer shall, and does hereby agree
        to,
        indemnify the Trustee 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.

       

      Notwithstanding
        the foregoing, no certification or Opinion of Counsel described in this
Section
        5.02(b)
        will be
        required in connection with the transfer, on the Closing Date, of any Class
        R
        Certificate by the Depositor to an “accredited investor” within the meaning of
        Rule 501(d) of the 1933 Act.

       

      (c) (i) No
        purchase or transfer of the Class CE Certificates, the Class P Certificates
        or
        the Residual Certificates or any interest therein shall be made to any Plan,
        any
        Person acting, directly or indirectly, on behalf of any such Plan or any
        Person
        acquiring such Certificates with “plan assets” (within the meaning of the
        Department of Labor regulation promulgated at 29 C.F.R. § 2510.3-101, as
        modified by Section 3(42) of ERISA (“Plan
        Assets”))
        of a
        Plan, as certified by such beneficial owner in the form of Exhibit
        G,
        unless
        the beneficial owner provides the Trustee with an Opinion of Counsel acceptable
        to and in form and substance satisfactory to the Depositor, the Trustee and
        the
        Servicer to the effect that the purchase and holding of such Certificates
        is
        permissible under applicable law, will not constitute or result in any
        non-exempt prohibited transaction under Section 406 of ERISA or Section 4975
        of
        the Code (or comparable provisions of any subsequent enactments) and will
        not
        subject the Depositor, the Servicer, the Trustee or the Trust Fund to any
        obligation or liability (including obligations or liabilities under ERISA
        or
        Section 4975 of the Code) in addition to those undertaken in this Agreement,
        which Opinion of Counsel shall not be an expense of the Depositor, the Servicer,
        the Trustee or the Trust Fund.

      
        
          
          

        

        
          112

          
            

          

        

        
          
          

        

      

       

      (ii) Until
        the
        Swap Agreement terminates in September 2010 , the Class A-3 Certificates,
        the
        Class A-4 Certificates, the Class M-1 Certificates, the Class M-2 Certificates,
        the Class M-3 Certificates, the Class M-4 Certificates, the Class M-5
        Certificates, the Class M-6 Certificates, the Class M-7 Certificates, the
        Class
        M-8 Certificates, the Class M-9 Certificates and the Class M-10 Certificates
        or
        any interest therein may not be purchased by or transferred to a Plan, any
        Person acting, directly or indirectly, on behalf of any such Plan or any
        Person
        acquiring such Certificates with Plan Assets. Each beneficial owner of such
        Certificates or any interest therein shall be deemed to have represented,
        by
        virtue of its acquisition or holding of such Certificates or any interest
        therein, that it is not a Plan, any Person acting, directly or indirectly,
        on
        behalf of any such Plan or any Person acquiring such Certificates with Plan
        Assets. After the termination of the Swap Agreement in September 2010, each
        beneficial owner of the Class A-3 Certificates, the Class A-4 Certificates,
        the
        Class M-1 Certificates, the Class M-2 Certificates, the Class M-3 Certificates,
        the Class M-4 Certificates, the Class M-5 Certificates, the Class M-6
        Certificates, the Class M-7 Certificates, the Class M-8 Certificates, the
        Class
        M-9 Certificates or the Class M-10 Certificates or any interest therein shall
        be
        deemed to have represented, by virtue of its acquisition or holding of such
        Certificates or any interest therein, that either (A) it is not a Plan, any
        Person acting, directly or indirectly, on behalf of any such Plan or any
        Person
        acquiring such Certificates with Plan Assets, (B) it has acquired and is
        holding
        such Certificates in reliance on the Underwriters’ Exemption, and that it
        understands that there are certain conditions to the availability of the
        Underwriters’ Exemption, including that such Certificates must be rated, at the
        time of purchase, not lower than “BBB-” (or its equivalent) by Fitch, S&P or
        Moody’s and such Certificates are so rated, that it is an accredited investor as
        defined in Rule 501(a)(1) of Regulation D of the Securities Act of 1933,
        as
        amended, and that it will obtain a representation from any transferee that
        such
        transferee is an accredited investor, or (C) (1) it is an insurance company,
        (2)
        the source of funds used to acquire or hold such Certificates or any interest
        therein is an “insurance company general account,” as such term is defined in
        Prohibited Transaction Class Exemption, or PTCE, 95-60, and (3) the conditions
        in Sections I and III of PTCE 95-60 have been satisfied.

      
        
          
          

        

        
          113

          
            

          

        

        
          
          

        

      

       

      (iii) Until
        the
        swap agreement terminates in September 2010, the Class A-1 Certificates and
        the
        Class A-2 Certificates or any interest therein may not be purchased by or
        transferred to a Plan, any Person acting, directly or indirectly, on behalf
        of
        any such Plan or any Person acquiring such Certificates with Plan Assets
        unless
        the beneficial owner of such Certificates or any interest therein represents
        that its acquisition and holding of such Certificates or any interest therein
        is
        eligible for exemptive relief under one or more of the following exemptions:
        Prohibited Transaction Class Exemption (“PTCE”)
        96-23
        (for transactions effected by “in-house asset managers”; PTCE 95-60 (for
        transactions by insurance company general accounts); PTCE 91-38, (for
        transactions by bank collective investment funds); PTCE 90-1 (for transactions
        by insurance company pooled separate accounts); PTCE 84-14 (for transactions
        effected by “qualified professional asset managers”) (collectively, the
“Investor Exemptions”) and Section 408(b)(17) of ERISA (for transactions between
        a Plan and a person or an entity that is a party in interest to such Plan
        (other
        than a party in interest that is a fiduciary, or its affiliate, that has
        or
        exercises discretionary authority or control or renders investment advice
        with
        respect to the assets of the Plan involved in the transaction) solely by
        reason
        of providing services to the Plan, but only if the Plan pays no more, or
        receives no less, than adequate consideration) (the “Service Provider
        Exemption”). After the termination of the Swap Agreement in September 2010, each
        beneficial owner of the Class A-1 Certificates or the Class A-2 Certificates
        or
        any interest therein shall be deemed to have represented, by virtue of its
        acquisition or holding of such Certificates or any interest therein, that
        either
        (A) it is not a Plan, any Person acting, directly or indirectly, on behalf
        of
        any such Plan or any Person acquiring such Certificates with Plan Assets,
        (B) it
        has acquired and is holding such Certificates in reliance on the Underwriters’
Exemption, and that it understands that there are certain conditions to the
        availability of the Underwriters’ Exemption, including that such Certificates
        must be rated, at the time of purchase, not lower than “BBB-” (or its
        equivalent) by Fitch, S&P or Moody’s and such Certificates are so rated,
        that it is an accredited investor as defined in Rule 501(a)(1) of Regulation
        D
        of the Securities Act of 1933, as amended, and that it will obtain a
        representation from any transferee that such transferee is an accredited
        investor, or (C) it has acquired and is holding such Certificates in reliance
        on
        the Service Provider Exemption or one or more of the Investor Exemptions
        and it
        understands that there are certain conditions to the availability of the
        Service
        Provider Exemption and the Investor Exemptions.

       

      (iv) Neither
        a
        certification nor an Opinion of Counsel shall be required in connection with
        (A)
        the initial transfer of any such Certificate by the Depositor to an Affiliate
        of
        the Depositor, (B) the transfer of any such Certificate to the issuer under
        the
        Indenture or the indenture trustee under the Indenture or (C) a transfer
        of any
        such Certificate from the issuer under the Indenture or the indenture trustee
        under the Indenture to the Depositor or an Affiliate of the Depositor (in
        which
        case such transferee shall be deemed to have represented that it is not
        purchasing with Plan Assets) and the Trustee shall be entitled to conclusively
        rely upon a representation (which, upon the request of the Trustee, shall
        be a
        written representation) from the Depositor of the status of such transferee
        as
        an affiliate of the Depositor.

       

      (v) If
        any
        Certificate or any interest therein is acquired or held in violation of the
        provisions of this Section 5.02(c), the next preceding permitted beneficial
        owner will be treated as the beneficial owner of that Certificate retroactive
        to
        the date of transfer to the purported beneficial owner. Any purported beneficial
        owner whose acquisition or holding of any such Certificate or any interest
        therein was effected in violation of the provisions of this Section 5.02(c)
        shall indemnify and hold harmless the Depositor, the Servicer, the Trustee
        and
        the Trust Fund from and against any and all liabilities, claims, costs or
        expenses incurred by those parties as a result of that acquisition or
        holding.

       

      (d) (i)
        Each
        Person who has or who acquires any Ownership Interest in a Residual Certificate
        shall be deemed by the acceptance or acquisition of such Ownership Interest
        to
        have agreed to be bound by the following provisions and to have irrevocably
        authorized the Trustee or its designee under clause
        (iii)(A)
        below to
        deliver payments to a Person other than such Person and to negotiate the
        terms
        of any mandatory sale under clause
        (iii)(B)
        below
        and to execute all instruments of Transfer and to do all other things necessary
        in connection with any such sale. The rights of each Person acquiring any
        Ownership Interest in a Residual Certificate are expressly subject to the
        following provisions:

      
        
          
          

        

        
          114

          
            

          

        

        
          
          

        

      

       

      (A) Each
        Person holding or acquiring any Ownership Interest in a Residual Certificate
        shall be a Permitted Transferee and shall promptly notify the Trustee of
        any
        change or impending change in its status as a Permitted Transferee.

       

      (B) In
        connection with any proposed Transfer of any Ownership Interest in a Residual
        Certificate, the Trustee shall require delivery to it, and shall not register
        the Transfer of any Residual Certificate until its receipt of, an affidavit
        and
        agreement (a “Transfer
        Affidavit and Agreement,”
in
        the
        form attached hereto as Exhibit
        F-2)
        from
        the proposed Transferee, in form and substance satisfactory to the Trustee,
        representing and warranting, among other things, that such Transferee is
        a
        Permitted Transferee, that it is not acquiring its Ownership Interest in
        the
        Residual Certificate that is the subject of the proposed Transfer as a nominee,
        trustee or agent for any Person that is not a Permitted Transferee, that
        for so
        long as it retains its Ownership Interest in a Residual Certificate, it will
        endeavor to remain a Permitted Transferee, and that it has reviewed the
        provisions of this Section
        5.02(e)
        and
        agrees to be bound by them.

       

      (C) Notwithstanding
        the delivery of a Transfer Affidavit and Agreement by a proposed Transferee
        under clause
        (B)
        above,
        if a Responsible Officer of the Trustee who is assigned to this transaction
        has
        actual knowledge that the proposed Transferee is not a Permitted Transferee,
        no
        Transfer of an Ownership Interest in a Residual Certificate to such proposed
        Transferee shall be effected.

       

      (D) Each
        Person holding or acquiring any Ownership Interest in a Residual Certificate
        shall agree (x) to require a Transfer Affidavit and Agreement in the form
        attached hereto as Exhibit
        F-2
        from any
        other Person to whom such Person attempts to transfer its Ownership Interest
        in
        a Residual Certificate and (y) not to transfer its Ownership Interest unless
        it
        provides a Transferor Affidavit (in the form attached hereto as Exhibit
        F-2)
        to the
        Trustee stating that, among other things, it has no actual knowledge that
        such
        other Person is not a Permitted Transferee.

       

      (E) Each
        Person holding or acquiring an Ownership Interest in a Residual Certificate,
        by
        purchasing an Ownership Interest in such Certificate, agrees to give the
        Trustee
        written notice that it is a “pass-through interest holder” within the meaning of
        temporary Treasury regulation Section 1.67-3T(a)(2)(i)(A) immediately upon
        acquiring an Ownership Interest in a Residual Certificate, if it is, or is
        holding an Ownership Interest in a Residual Certificate on behalf of, a
“pass-through interest holder.”

       

      (ii) The
        Trustee will register the Transfer of any Residual Certificate only if it
        shall
        have received the Transfer Affidavit and Agreement and all of such other
        documents as shall have been reasonably required by the Trustee as a condition
        to such registration. In addition, no Transfer of a Residual Certificate
        shall
        be made unless the Trustee shall have received a representation letter from
        the
        Transferee of such Certificate to the effect that such Transferee is a Permitted
        Transferee.

      
        
          
          

        

        
          115

          
            

          

        

        
          
          

        

      

       

      (iii) (A) If
        any
        purported Transferee shall become a Holder of a Residual Certificate in
        violation of the provisions of this Section
        5.02(e),
        then
        the last preceding Permitted Transferee shall be restored, to the extent
        permitted by law, to all rights as holder thereof retroactive to the date
        of
        registration of such Transfer of such Residual Certificate. The Trustee 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
        5.02(e)
        or for
        making any payments due on such Certificate to the holder thereof or for
        taking
        any other action with respect to such holder under the provisions of this
        Agreement.

       

      (B) If
        any
        purported Transferee shall become a holder of a Residual Certificate in
        violation of the restrictions in this Section
        5.02(e)
        and to
        the extent that the retroactive restoration of the rights of the holder of
        such
        Residual Certificate as described in clause
        (iii)(A)
        above
        shall be invalid, illegal or unenforceable, then the Trustee shall have the
        right, but not the obligation, without notice to the holder or any prior
        holder
        of such Residual Certificate, to sell such Residual Certificate to a purchaser
        selected by the Trustee on such terms as the Trustee may choose. Such purported
        Transferee shall promptly endorse and deliver each Residual Certificate in
        accordance with the instructions of the Trustee. Such purchaser may be the
        Trustee itself or any Affiliate of the Trustee. The proceeds of such sale,
        net
        of the commissions (which may include commissions payable to the Trustee
        or its
        Affiliates), expenses and taxes due, if any, will be remitted by the Trustee
        to
        such purported Transferee. The terms and conditions of any sale under this
        clause
        (iii)(B)
        shall be
        determined in the sole discretion of the Trustee, and the Trustee shall not
        be
        liable to any Person having an Ownership Interest in a Residual Certificate
        as a
        result of its exercise of such discretion.

       

      (iv) The
        Trustee shall make available to the Internal Revenue Service and those Persons
        specified by the REMIC Provisions all information necessary to compute any
        tax
        imposed (A) as a result of the Transfer of an Ownership Interest in a Residual
        Certificate to any Person who is a Disqualified Organization, including the
        information described in Treasury regulations sections 1.860D-1(b)(5) and
        1.860E-2(a)(5) with respect to the “excess inclusions” of such Residual
        Certificate and (B) as a result of any regulated investment company, real
        estate
        investment trust, common trust fund, partnership, trust estate or organization
        described in Section 1381 of the Code that holds an Ownership Interest in
        a
        Residual Certificate having as among its record holders at any time any Person
        which is a Disqualified Organization. Reasonable compensation for providing
        such
        information may be accepted by the Trustee.

       

      (v) The
        provisions of this Section
        5.02(e)
        set
        forth prior to this subsection
        (v)
        may be
        modified, added to or eliminated, provided that there shall have been delivered
        to the Trustee at the expense of the party seeking to modify, add to or
        eliminate any such provision the following:

      
        
          
          

        

        
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      (A) written
        notification from each Rating Agency to the effect that the modification,
        addition to or elimination of such provisions will not cause such Rating
        Agency
        to downgrade its then-current ratings of any Class of Certificates;
        and

       

      (B) an
        Opinion of Counsel, in form and substance satisfactory to the Trustee, to
        the
        effect that such modification of, addition to or elimination of such provisions
        will not cause any Trust REMIC to cease to qualify as a REMIC and will not
        cause
        any Trust REMIC to be subject to an entity-level tax caused by the Transfer
        of
        any Residual Certificate to a Person that is not a Permitted Transferee or
        a
        Person other than the prospective transferee to be subject to a REMIC-tax
        caused
        by the Transfer of a Residual Certificate to a Person that is not a Permitted
        Transferee.

       

      (e) Subject
        to the preceding subsections, upon surrender for registration of transfer
        of any
        Certificate at any office or agency of the Trustee maintained for such purpose
        pursuant to Section
        8.12,
        the
        Trustee shall execute, authenticate and deliver, in the name of the designated
        Transferee or Transferees, one or more new Certificates of the same Class
        of a
        like aggregate Percentage Interest.

       

      (f) At
        the
        option of the Holder thereof, any Certificate may be exchanged for other
        Certificates of the same Class with authorized denominations and a like
        aggregate Percentage Interest, upon surrender of such Certificate to be
        exchanged at any office or agency of the Trustee maintained for such purpose
        pursuant to Section
        8.12.
        Whenever any Certificates are so surrendered for exchange, the Trustee shall
        execute, authenticate and deliver, the Certificates which the Certificateholder
        making the exchange is entitled to receive. Every Certificate presented or
        surrendered for transfer or exchange shall (if so required by the Trustee)
        be
        duly endorsed by, or be accompanied by a written instrument of transfer in
        the
        form satisfactory to the Trustee duly executed by, the Holder thereof or
        his
        attorney duly authorized in writing. In addition, with respect to each Class
        R
        Certificate, the Holder thereof may exchange, in the manner described above,
        such Class R Certificate for two separate Certificates, each representing
        such
        Holder’s respective Percentage Interest in the Class R-I Interest and the Class
        R-II Interest, respectively, in each case that was evidenced by the Class
        R
        Certificate being exchanged.

       

      (g) No
        service charge to the Certificateholders shall be made for any transfer or
        exchange of Certificates, but the Trustee 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 canceled and
        destroyed by the Trustee in accordance with its customary
        procedures.

       

      SECTION
        5.03  Mutilated,
        Destroyed, Lost or Stolen Certificates.
        If (i)
        any mutilated Certificate is surrendered to the Trustee, or the Trustee receives
        evidence to its satisfaction of the destruction, loss or theft of any
        Certificate, and (ii) there is delivered to the Trustee such security or
        indemnity as may be required by it to save it harmless, then, in the absence
        of
        actual knowledge by the Trustee that such Certificate has been acquired by
        a
        bona fide purchaser, the Trustee shall execute, authenticate and deliver
        in
        exchange for or in lieu of any such mutilated, destroyed, lost or stolen
        Certificate, a new Certificate of the same Class and of like denomination
        and
        Percentage Interest but bearing a number not contemporaneously outstanding.
        Upon
        the issuance of any new Certificate under this Section, the Trustee may require
        the payment of a sum sufficient to cover any tax or other governmental charge
        that may be imposed in relation thereto and any other expenses (including
        the
        fees and expenses of the Trustee) connected therewith. Any replacement
        Certificate issued pursuant to this Section shall constitute complete and
        indefeasible evidence of ownership in the applicable REMIC created hereunder,
        as
        if originally issued, whether or not the lost, stolen or destroyed Certificate
        shall be found at any time.

      
        
          
          

        

        
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      SECTION
        5.04  Persons
        Deemed Owners.
        Prior
        to due presentation of a Certificate for registration of transfer, the
        Depositor, the Servicer, the Trustee and any agent of any of them 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
        4.01
        and for
        all other purposes whatsoever, and none of the Depositor, the Servicer, the
        Trustee or any agent of any of them shall be affected by notice to the
        contrary.

       

      SECTION
        5.05  Certain
        Available Information.
        On or
        prior to the date of the first sale of any Private Certificate to an Independent
        third party, the Depositor shall provide to the Trustee a copy of any private
        placement memorandum or other disclosure document used by the Depositor in
        connection with the offer and sale of such Certificates. In addition, if
        any
        such private placement memorandum or disclosure document is revised, amended
        or
        supplemented at any time following the delivery thereof to the Trustee, the
        Depositor promptly shall inform the Trustee of such event and shall deliver
        to
        the Trustee a copy of the private placement memorandum or disclosure document,
        as revised, amended or supplemented. The Trustee shall maintain at its Corporate
        Trust Office and shall make available free of charge during normal business
        hours for review by any Holder of a Certificate, a Certificate Owner or any
        Person identified to the Trustee as a prospective transferee of a Certificate,
        originals or copies of the following items: (i) in the case of a Holder,
        a
        Certificate Owner or prospective transferee of a Private Certificate, the
        related private placement memorandum or other disclosure document relating
        to
        such Class of Certificates, in the form most recently provided to the Trustee;
        and (ii) in all cases, (A) this Agreement and any amendments hereof entered
        into pursuant to Section 12.01,
        (B) all
        monthly statements required to be delivered to Certificateholders of the
        relevant Class pursuant to Section
        4.02
        since
        the Closing Date, and all other notices, reports, statements and written
        communications delivered to the Certificateholders of the relevant Class
        pursuant to this Agreement since the Closing Date, (C) all certifications
        delivered by a Responsible Officer of the Trustee since the Closing Date
        pursuant to Section
        10.01(h),
        (D) any
        and all Officers’ Certificates delivered to the Trustee by the Servicer since
        the Closing Date to evidence the Servicer’s determination that any Advance or
        Servicing Advance was, or if made, would be a Nonrecoverable Advance or
        Nonrecoverable Servicing Advance, respectively, and (E) any and all Officers’
Certificates delivered to the Trustee by the Servicer since the Closing Date
        pursuant to Section
        4.04(a).
        Copies
        and mailing of any and all of the foregoing items will be available from
        the
        Trustee upon request at the expense of the Person requesting the
        same.

      
        
          
          

        

        
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      ARTICLE
        VI 

       

      THE
        DEPOSITOR AND THE SERVICER

       

      SECTION
        6.01  Respective
        Liabilities of the Depositor and the Servicer.
        The
        Depositor and the Servicer each shall be liable in accordance herewith only
        to
        the extent of the obligations specifically imposed by this Agreement upon
        them
        in their respective capacities as Depositor and Servicer and undertaken
        hereunder by the Depositor and the Servicer herein.

       

      SECTION
        6.02  Merger
        or Consolidation of the Depositor or the Servicer.
        Subject
        to the following paragraph, the Depositor will keep in full effect its
        existence, rights and franchises as a corporation under the laws of the
        jurisdiction of its incorporation. Subject to the following paragraph, the
        Servicer will keep in full effect its existence, rights and franchises as
        a
        limited liability company under the laws of the jurisdiction of its
        organization. The Depositor and the Servicer each will obtain and preserve
        its
        qualification to do business as a foreign entity 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.

       

      The
        Depositor or the Servicer may be merged or consolidated with or into any
        Person,
        or transfer all or substantially all of its assets to any Person, in which
        case
        any Person resulting from any merger or consolidation to which the Depositor
        or
        the Servicer shall be a party, or any Person succeeding to the business of
        the
        Depositor or the Servicer, shall be the successor of the Depositor or the
        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 Servicer shall be qualified to service
        mortgage loans on behalf of Fannie Mae or Freddie Mac; and provided further
        that
        the Rating Agencies’ ratings of the Class A Certificates and the Mezzanine
        Certificates in effect immediately prior to such merger or consolidation
        will
        not be qualified, reduced or withdrawn as a result thereof (as evidenced
        by a
        letter to such effect from the Rating Agencies).

       

      SECTION
        6.03  Limitation
        on Liability of the Depositor, the Servicer and Others.
        (a)
        Subject to Subsection
        6.03(b),
        the
        Servicer (except the Trustee if it is required to succeed the Servicer
        hereunder) indemnifies and holds each Certificateholder harmless against
        any and
        all claims, losses, penalties, fines, forfeitures, reasonable legal fees
        and
        related costs, judgments, and any other costs, fees and expenses that any
        Certificateholder may sustain in any way related to the failure of the Servicer
        to perform its duties and service the Mortgage Loans in compliance with the
        terms of this Agreement. The Servicer shall immediately notify the Trustee
        for
        further notice to each Certificateholder if a claim is made that may result
        in
        such claims, losses, penalties, fines, forfeitures, legal fees or related
        costs,
        judgments, or any other costs, fees and expenses, and the Servicer shall
        assume
        the defense of any such claim and pay all expenses in connection therewith,
        including reasonable counsel fees, and promptly pay, discharge and satisfy
        any
        judgment or decree which may be entered against the Certificateholder in
        respect
        of such claim. The provisions of this Section 6.03 shall survive the termination
        of this Agreement and the payment of the outstanding Certificates.

      
        
          
          

        

        
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      (b) None
        of
        the Depositor, the Servicer or any of the directors, officers, employees
        or
        agents of the Depositor or the Servicer shall be under any liability to the
        Trustee, Trust Fund or the Certificateholders for any action taken or for
        refraining from the taking of any action in good faith pursuant to this
        Agreement, or for errors in judgment; provided,
        however,
        that
        this provision shall not protect the Depositor, the Servicer or any such
        person
        against any breach of warranties, representations or covenants made herein,
        or
        against any specific liability imposed on the Servicer pursuant hereto, or
        against any liability which would otherwise be imposed by reason of willful
        misfeasance, bad faith or negligence in the performance of duties or by reason
        of reckless disregard of obligations and duties hereunder. The Depositor,
        the
        Servicer and any director, officer, employee or agent of the Depositor or
        the
        Servicer may rely in good faith on any document of any kind which, prima
        facie,
        is properly executed and submitted by any Person respecting any matters arising
        hereunder. The Depositor, the Servicer and any director, officer, employee
        or
        agent of the Depositor or the Servicer shall be indemnified by the Trust
        Fund
        and held harmless against any loss, liability or expense (including reasonable
        legal fees and disbursements of counsel) incurred on their part that may
        be
        sustained in connection with, arising out of, or related to, any claim or
        legal
        action (including any pending or threatened claim or legal action) relating
        to
        this Agreement or the Certificates, other than any loss, liability or expense
        relating to any specific Mortgage Loan or Mortgage Loans (except as any such
        loss, liability or expense shall be otherwise reimbursable pursuant to this
        Agreement) or any loss, liability or expense incurred by reason of willful
        misfeasance, bad faith or negligence in the performance of duties hereunder
        or
        by reason of reckless disregard of obligations and duties hereunder. Neither
        the
        Depositor nor the Servicer shall be under any obligation to appear in, prosecute
        or defend any legal action that is not incidental to its duties under this
        Agreement and that in its opinion may involve it in any expense or liability;
        provided,
        however,
        that
        the Depositor or the Servicer may in its discretion undertake any such action
        which it may deem necessary or desirable with respect to this Agreement and
        the
        rights and duties of the parties hereto and the interests of the
        Certificateholders hereunder. In such event, the legal expenses and costs
        of
        such action and any liability resulting therefrom shall be expenses, costs
        and
        liabilities of the Trust Fund, and the Depositor or the Servicer shall be
        entitled to be reimbursed therefor from the Custodial Account as and to the
        extent provided in Section
        3.11,
        any
        such right of reimbursement being prior to the rights of the Certificateholders
        to receive any amount in the Custodial Account. Nothing in this Subsection
        6.03(a)
        shall
        affect the Servicer’s obligation to supervise, or to take such actions as are
        necessary to ensure, the servicing and administration of the Mortgage Loans
        pursuant to Subsection
        3.01(a).

       

      SECTION
        6.04  Limitation
        on Resignation of the Servicer.
        (a)
        Subject to the provisions of Section
        7.01
        and
Section
        6.02,
        the
        Servicer shall not resign from the obligations and duties hereby imposed
        on it
        except (i) upon determination that the performance of its obligations or
        duties
        hereunder are no longer permissible under applicable law or are in material
        conflict by reason of applicable law with any other activities carried on
        by it
        or its subsidiaries or Affiliates, the other activities of the Servicer so
        causing such a conflict being of a type and nature carried on by the Servicer
        or
        its subsidiaries or Affiliates at the date of this Agreement or (ii) upon
        satisfaction of the following conditions: (a) the Servicer has proposed a
        successor servicer to the Trustee in writing and such proposed successor
        servicer is reasonably acceptable to the Depositor and the Trustee and (b)
        each
        Rating Agency shall have delivered a letter to the Trustee prior to the
        appointment of the successor servicer stating that the proposed appointment
        of
        such successor servicer as Servicer hereunder will not result in the reduction
        or withdrawal of the then current rating of the Certificates; provided, however,
        that no such resignation by the Servicer shall become effective until such
        successor servicer or, in the case of (i) above, the Trustee shall have assumed
        the Servicer’s responsibilities and obligations hereunder or the Trustee shall
        have designated, a successor servicer in accordance with Section
        7.02.
        Any
        such resignation shall not relieve the Servicer of responsibility for any
        of the
        obligations specified in Sections 7.01 and 7.02 as obligations that survive
        the
        resignation or termination of the Servicer. Any such determination permitting
        the resignation of the Servicer pursuant to clause (i) above shall be evidenced
        by an Opinion of Counsel to such effect delivered to the Trustee.

      
        
          
          

        

        
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      (b) Except
        as
        expressly provided herein, the Servicer shall not assign or transfer any
        of its
        rights, benefits or privileges hereunder to any other Person, or delegate
        to or
        subcontract with, or authorize or appoint any other Person to perform any
        of the
        duties, covenants or obligations to be performed by the Servicer hereunder.
        The
        foregoing prohibition on assignment shall not prohibit the Servicer from
        designating a Sub-Servicer as payee of any indemnification amount payable
        to the
        Servicer hereunder; provided,
        however,
        that as
        provided in Section
        3.06
        hereof,
        no Sub-Servicer shall be a third-party beneficiary hereunder and the parties
        hereto shall not be required to recognize any Sub-Servicer as an indemnitee
        under this Agreement.

       

      SECTION
        6.05  Rights
        of the Depositor in Respect of the Servicer.
        The
        Servicer shall afford (and any Sub-Servicing Agreement shall provide that
        each
        Sub-Servicer shall afford) the Depositor and the Trustee, upon reasonable
        notice, during normal business hours, access to all records maintained by
        the
        Servicer (and any such Sub-Servicer) in respect of the Servicer’s rights and
        obligations hereunder and access to officers of the Servicer (and those of
        any
        such Sub-Servicer) responsible for such obligations. Upon request, the Servicer
        shall furnish to the Depositor and the Trustee its (and any such Sub-Servicer’s)
        most recent financial statements and such other information relating to the
        Servicer’s capacity to perform its obligations under this Agreement as it
        possesses (and that any such Sub-Servicer possesses). To the extent such
        information is not otherwise available to the public, the Depositor and the
        Trustee shall not disseminate any information obtained pursuant to the preceding
        two sentences without the Servicer’s written consent, except as required
        pursuant to this Agreement or to the extent that it is appropriate to do
        so (i)
        in working with legal counsel, auditors, taxing authorities or other
        governmental agencies, (ii) pursuant to any law, rule, regulation, order,
        judgment, writ, injunction or decree of any court or governmental authority
        having jurisdiction over the Depositor and the Trustee or the Trust Fund,
        and in
        any case, the Depositor or the Trustee, (iii) in disclosure of any and all
        information that is or becomes publicly known, or information obtained by
        the
        Trustee from sources other than the Depositor or the Servicer, (iv) in
        disclosure as required pursuant to this Agreement or (v) in disclosure of
        any
        and all information(A) in any preliminary or final offering circular,
        registration statement or contract or other document pertaining to the
        transactions contemplated by the Agreement approved in advance by the Depositor
        or the Servicer or (B) to any affiliate, independent or internal auditor,
        agent,
        employee or attorney of the Trustee having a need to know the same, provided
        that the Trustee advises such recipient of the confidential nature of the
        information being disclosed, and uses its best efforts to assure the
        confidentiality of any such disseminated non-public information. The Depositor
        may, but is not obligated to, enforce the obligations of the Servicer under
        this
        Agreement and may, but is not obligated to, perform, or cause a designee
        to
        perform, any defaulted obligation of the Servicer under this Agreement or
        exercise the rights of the Servicer under this Agreement; provided that the
        Servicer shall not be relieved of any of its obligations under this Agreement
        by
        virtue of such performance by the Depositor or its designee. The Depositor
        shall
        not have any responsibility or liability for any action or failure to act
        by the
        Servicer and is not obligated to supervise the performance of the Servicer
        under
        this Agreement or otherwise.

      
        
          
          

        

        
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      ARTICLE
        VII 

       

      DEFAULT

       

      SECTION
        7.01  Servicer
        Events of Default.
        (a)
“Servicer
        Event of Default,”
        wherever used herein, means any one of the following events:

       

      (i) any
        failure by the Servicer to remit to the Trustee for distribution to the
        Certificateholders any payment (other than an Advance required to be made
        from
        its own funds on any Servicer Remittance Date pursuant to Section
        4.03
        or an
        amount required to be delivered on any Servicer Remittance Date pursuant
        to
Section
        3.11(a)(i))
        required to be made by the Servicer under the terms of the Certificates and
        this
        Agreement which continues unremedied for a period of 5 Business Days after
        the
        date upon which written notice of such failure, requiring the same to be
        remedied, shall have been given to the Servicer by the Depositor or the Trustee
        (in which case notice shall be provided by telecopy), or to the Servicer,
        the
        Depositor and the Trustee by the Holders of Certificates entitled to at least
        25% of the Voting Rights; or

       

      (ii) any
        failure on the part of the Servicer duly to observe or perform in any material
        respect any other of the covenants or agreements on the part of the Servicer
        contained in this Agreement, or the breach by the Servicer of any representation
        and warranty contained in Section
        2.05,
        which
        continues unremedied for a period of 30 days (or if such failure or breach
        cannot be remedied within 30 days, then such remedy shall have been commenced
        within 30 days and diligently pursued thereafter; provided,
        however,
        that in
        no event shall such failure or breach be allowed to exist for a period of
        greater than 90 days) or 15 days in the case of a failure to pay the premium
        for
        any insurance policy required to be maintained under this Agreement after
        the
        earlier of (i) the date on which written notice of such failure, requiring
        the same to be remedied, shall have been given to the Servicer by the Depositor
        or the Trustee, or to the Servicer, the Depositor and the Trustee by the
        Holders
        of Certificates entitled to at least 25% of the Voting Rights and
        (ii) actual knowledge of such failure by a Servicing Officer;
        or

       

      (iii) a
        decree
        or order of a court or agency or supervisory authority having jurisdiction
        in
        the premises in an involuntary case under any present or future federal or
        state
        bankruptcy, insolvency or similar law or the appointment of a conservator
        or
        receiver or liquidator in any insolvency, readjustment of debt, marshalling
        of
        assets and liabilities or similar proceeding, or for the winding-up or
        liquidation of its affairs, shall have been entered against the Servicer
        and
        such decree or order shall have remained in force undischarged or unstayed
        for a
        period of 90 days; or

      
        
          
          

        

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

       

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

       

      (vi) any
        failure by the Servicer of the Servicer Termination Test; or

       

      (vii) any
        failure of the Servicer to (a) make any Advance on any Servicer Remittance
        Date
        required to be made from its own funds pursuant to Section
        4.03
        which
        continues unremedied until 12:00 p.m. New York time on the Business Day
        immediately following the Servicer Remittance Date or (b) to deliver an amount
        required to be delivered on any Servicer Remittance Date pursuant to
Section
        3.11(a)(i) which
        continues unremedied until 12:00 p.m. New York time on the Business Day
        immediately following the Servicer Remittance Date.

       

      If
        a
        Servicer Event of Default described in clauses
        (i)
        through
(vi)
        of this
        Section shall occur, then, and in each and every such case, so long as such
        Servicer Event of Default shall not have been remedied, the Trustee may,
        and at
        the written direction of the Holders of Certificates entitled to at least
        66% of
        Voting Rights, the Trustee shall, by notice in writing to the Servicer and
        to
        the Depositor, terminate all of the rights and obligations of the Servicer
        in
        its capacity as Servicer under this Agreement, to the extent permitted by
        law,
        in and to the Mortgage Loans and the proceeds thereof. If a Servicer Event
        of
        Default described in clause
        (vii)
        hereof
        shall occur, the Trustee shall, by notice in writing to the Servicer, terminate
        all of the rights and obligations of the Servicer in its capacity as Servicer
        under this Agreement in and to the Mortgage Loans and the proceeds thereof
        and
        the Trustee as successor Servicer, or another successor servicer appointed
        in
        accordance with Section
        7.02,
        shall
        immediately make such Advance. On or after the receipt by the Servicer of
        such
        written notice, all authority and power of the Servicer under this Agreement,
        whether with respect to the Certificates (other than as a Holder of any
        Certificate) or the Mortgage Loans or otherwise, shall pass to and be vested
        in
        the Trustee pursuant to and under this Section, and, without limitation,
        the
        Trustee is hereby authorized and empowered, as attorney-in-fact or otherwise,
        to
        execute and deliver, on behalf of and at the expense of the Servicer, any
        and
        all documents and other instruments and to do or accomplish all other acts
        or
        things necessary or appropriate to effect the purposes of such notice of
        termination, whether to complete the transfer and endorsement or assignment
        of
        the Mortgage Loans and related documents, or otherwise, provided,
        however,
        the
        parties acknowledge that notwithstanding the preceding sentence there may
        be a
        transition period, not to exceed 90 days, in order to effect the transfer
        of the
        Servicing obligations to the Trustee or other successor servicer. The Servicer
        agrees promptly (and in any event no later than ten Business Days subsequent
        to
        such notice) to provide the Trustee with all documents and records requested
        by
        it to enable it to assume the Servicer’s functions under this Agreement, and to
        cooperate with the Trustee in effecting the termination of the Servicer’s
        responsibilities and rights under this Agreement, including, without limitation,
        the transfer within one Business Day to the Trustee for administration by
        it of
        all cash amounts which at the time shall be or should have been credited
        by the
        Servicer to the Custodial Account held by or on behalf of the Servicer, the
        Certificate Account or any REO Account or Servicing Account held by or on
        behalf
        of the Servicer or thereafter be received with respect to the Mortgage Loans
        or
        any REO Property serviced by the Servicer (provided,
        however,
        that
        the Servicer shall continue to be entitled to receive all amounts accrued
        or
        owing to it under this Agreement on or prior to the date of such termination,
        whether in respect of Advances, Servicing Advances or otherwise, and shall
        continue to be entitled to the benefits of Section
        6.03,
        notwithstanding any such termination, with respect to events occurring prior
        to
        such termination). For purposes of this Section
        7.01,
        the
        Trustee shall not be deemed to have knowledge of a Servicer Event of Default
        unless a Responsible Officer of the Trustee assigned to and working in the
        Trustee’s Corporate Trust Office has actual knowledge thereof or unless written
        notice of any event which is in fact such a Servicer Event of Default is
        received by the Trustee and such notice references the Certificates, the
        Trust
        Fund or this Agreement.

      
        
          
          

        

        
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      SECTION
        7.02  Trustee
        to Act; Appointment of Successor.
        (a) (1)
        On and after the time the Servicer receives a notice of termination in
        accordance with Section
        13.05
        hereof,
        the Trustee, or such other person appointed by the Trustee pursuant to this
        paragraph, shall separately assume and become the successor in all respects
        to
        the Servicer in its capacity as Servicer under this Agreement and the
        transactions set forth or provided for herein, and all the responsibilities,
        duties and liabilities relating thereto and arising thereafter shall be assumed
        by the Trustee (except for any representations or warranties of the Servicer
        under this Agreement, the responsibilities, duties and liabilities contained
        in
Section
        2.05
        and the
        obligation to deposit amounts in respect of losses pursuant to Section
        3.12)
        by the
        terms and provisions hereof including, without limitation, the Servicer’s
        obligations to make Advances pursuant to Section 4.03;
        provided,
        however,
        that if
        the Trustee is prohibited by law or regulation from obligating itself to
        make
        advances regarding delinquent mortgage loans, then the Trustee shall not
        be
        obligated to make Advances pursuant to Section
        4.03;
        and
        provided further, that any failure to perform such duties or responsibilities
        caused by the Servicer’s failure to provide information required by Section
        7.01
        shall
        not be considered a default by the Trustee as successor to the Servicer
        hereunder. As compensation therefor, the Trustee shall be entitled to the
        Servicing Fee and all funds relating to the Mortgage Loans to which the Servicer
        would have been entitled if it had continued to act hereunder. Notwithstanding
        the above and subject to Section
        7.02(a)(2)
        below,
        the Trustee may, if it shall be unwilling to so act, or shall, if it is unable
        to so act or if it is prohibited by law from making advances regarding
        delinquent mortgage loans or if the Holders of Certificates entitled to at
        least
        66% of the Voting Rights so request in writing to the Trustee promptly appoint
        or petition a court of competent jurisdiction to appoint, a Fannie Mae or
        Freddie Mac approved mortgage loan servicing institution acceptable to each
        Rating Agency without qualification, withdrawal or downgrading of the ratings
        then assigned to any of the Certificates and having a net worth of not less
        than
        $10,000,000, as the successor to the Servicer under this Agreement in the
        assumption of all or any part of the responsibilities, duties or liabilities
        of
        the Servicer under this Agreement.

       

      All
        Servicing Transfer Costs shall be paid by the predecessor Servicer upon
        presentation of reasonable documentation of such costs (provided, that if
        the
        Trustee is the predecessor Servicer by reason of this Section
        7.02,
        such
        costs shall be paid by the Servicer preceding the Trustee as successor
        servicer), and if such predecessor or initial Servicer, as applicable, defaults
        in its obligation to pay such costs, such costs shall be paid by the successor
        Servicer or the Trustee (in which case the successor Servicer or the Trustee,
        as
        applicable, shall be entitled to reimbursement therefor from the assets of
        the
        Trust Fund).

      
        
          
          

        

        
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      (2) No
        appointment of a successor to the Servicer under this Agreement shall be
        effective until the assumption by the successor of all of the Servicer’s
        responsibilities, duties and liabilities hereunder. In connection with such
        appointment and assumption described herein, the Trustee may make such
        arrangements for the compensation of such successor out of payments on Mortgage
        Loans as it and such successor shall agree; provided,
        however,
        that no
        such compensation shall be in excess of that permitted the Servicer as such
        hereunder. The Depositor, the Trustee and such successor shall take such
        action,
        consistent with this Agreement, as shall be necessary to effectuate any such
        succession. Pending appointment of a successor to the Servicer under this
        Agreement, the Trustee shall act in such capacity as hereinabove
        provided.

       

      SECTION
        7.03  Notification
        to Certificateholders.
        (a)
        Upon any termination of the Servicer pursuant to Section
        7.01
        above or
        any appointment of a successor to the Servicer pursuant to Section
        7.02
        above,
        the Trustee shall give prompt written notice thereof to Certificateholders
        at
        their respective addresses appearing in the Certificate Register.

       

      (b) Not
        later
        than the later of 60 days after the occurrence of any event, which constitutes
        or which, with notice or lapse of time or both, would constitute a Servicer
        Event of Default or five days after a Responsible Officer of the Trustee
        becomes
        aware of the occurrence of such an event, the Trustee shall transmit by mail
        to
        all Holders of Certificates notice of each such occurrence, unless such default
        or Servicer Event of Default shall have been cured or waived.

       

      SECTION
        7.04  Waiver
        of Servicer Events of Default.
        Holders
        representing at least 66% of the Voting Rights evidenced by all Classes of
        Certificates affected by any default or Servicer Event of Default hereunder
        may
        waive such default or Servicer Event of Default; provided,
        however,
        that a
        default or Servicer Event of Default under clause
        (i)
        or
(vii)
        of
Section
        7.01
        may be
        waived only by all of the Holders of the Regular Certificates. Upon any such
        waiver of a default or Servicer Event of Default, such default or Servicer
        Event
        of Default shall cease to exist and shall be deemed to have been remedied
        for
        every purpose hereunder. No such waiver shall extend to any subsequent or
        other
        default or Servicer Event of Default or impair any right consequent thereon
        except to the extent expressly so waived.

       

      ARTICLE
        VIII

       

      CONCERNING
        THE TRUSTEE

       

      SECTION
        8.01  Duties
        of Trustee.
        (a) The
        Trustee, prior to the occurrence of a Servicer Event of Default and after
        the
        curing of all Servicer Events of Default which may have occurred, undertakes
        to
        perform such duties and only such duties as are specifically set forth in
        this
        Agreement. During a Servicer Event of Default (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 prudent person would exercise or use under the circumstances in the
        conduct
        of such person’s own affairs. Any permissive right of the Trustee enumerated in
        this Agreement shall not be construed as a duty.

      
        
          
          

        

        
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      (b) The
        Trustee, upon receipt of all resolutions, certificates, statements, opinions,
        reports, documents, orders or other instruments furnished to the Trustee
        which
        are specifically required to be furnished pursuant to any provision of this
        Agreement, shall examine them to determine whether they conform on their
        face to
        the requirements of this Agreement. If any such instrument is found not to
        conform on its face to the requirements of this Agreement in a material manner,
        the Trustee shall take such action as it deems appropriate to have the
        instrument corrected, and if the instrument is not corrected to its
        satisfaction, will provide notice thereof to the
        Certificateholders.

       

      (c) No
        provision of this Agreement shall be construed to relieve the Trustee from
        liability for its own negligent action, its own negligent failure to act
        or its
        own misconduct; provided,
        however,
        that:

       

      (i) Prior
        to
        the occurrence of a Servicer Event of Default, and after the curing of all
        such
        Servicer Events of Default which may have occurred, the duties and obligations
        of the Trustee shall be determined solely by the express provisions of this
        Agreement, the Trustee shall not be liable except for the performance of
        such
        duties and obligations as are specifically set forth in this Agreement, no
        implied covenants or obligations shall be read into this Agreement against
        the
        Trustee and, in the absence of bad faith on the part of the Trustee, the
        Trustee
        may conclusively rely, as to the truth of the statements and the correctness
        of
        the opinions expressed therein, upon any certificates or opinions furnished
        to
        the Trustee that conform to the requirements of this Agreement;

       

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

       

      (iii) The
        Trustee shall not be personally liable with respect to any action taken,
        suffered or omitted to be taken by it in good faith in accordance with the
        direction of the Holders of Certificates entitled to at least 25% of the
        Voting
        Rights relating to the time, method and place of conducting any proceeding
        for
        any remedy available to the Trustee or exercising any trust or power conferred
        upon it, under this Agreement.

       

      (d) The
        Trustee shall timely pay, from its own funds, the amount of any and all federal,
        state and local taxes imposed on the Trust Fund or its assets or transactions
        including, without limitation, (A) “prohibited transaction” penalty taxes as
        defined in Section 860F of the Code, if, when and as the same shall be due
        and
        payable, (B) any tax on contributions to a Trust REMIC after the Closing
        Date
        imposed by Section 860G(d) of the Code and (C) any tax on “net income from
        foreclosure property” as defined in Section 860G(c) of the Code, but only if
        such taxes arise out of a breach by the Trustee of its obligations hereunder,
        which breach constitutes negligence or misconduct of the Trustee.

      
        
          
          

        

        
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      SECTION
        8.02  Certain
        Matters Affecting the Trustee.
        (a)
        Except as otherwise provided in Section 8.01:

       

      (i) The
        Trustee may request and conclusively rely upon and shall be fully protected
        in
        acting or refraining from acting upon any resolution, Officers’ Certificate,
        certificate of auditors or any other certificate, statement, instrument,
        opinion, report, notice, request, consent, order, appraisal, bond or other
        paper
        or document reasonably believed by it to be genuine and to have been signed
        or
        presented by the proper party or parties;

       

      (ii) The
        Trustee may consult with counsel and any 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) The
        Trustee shall not 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
        or
        the Swap Agreement, unless such Certificateholders shall have offered to
        the
        Trustee security or indemnity reasonably satisfactory to it against the costs,
        expenses and liabilities which may be incurred therein or thereby; nothing
        contained herein shall, however, relieve the Trustee of the obligation, upon
        the
        occurrence of a Servicer 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 person
        would exercise or use under the circumstances in the conduct of such person’s
        own affairs;

       

      (iv) The
        Trustee shall not be personally liable for any action taken, suffered or
        omitted
        by it in good faith and believed by it to be authorized or within the discretion
        or rights or powers conferred upon it by this Agreement;

       

      (v) Prior
        to
        the occurrence of a Servicer Event of Default hereunder and after the curing
        of
        all Servicer Events of Default which may have occurred, the Trustee shall
        not be
        bound to make any investigation into the facts or matters stated in any
        resolution, certificate, statement, instrument, opinion, report, notice,
        request, consent, order, approval, bond or other paper or document, unless
        requested in writing to do so by the Holders of Certificates entitled to
        at
        least 25% of the Voting Rights; provided,
        however,
        that if
        the payment within a reasonable time to the Trustee of the costs, expenses
        or
        liabilities likely to be incurred by it in the making of such investigation
        is,
        in the opinion of the Trustee not reasonably assured to the Trustee by such
        Certificateholders, the Trustee may require indemnity reasonably satisfactory
        to
        it against such expense or liability from such Certificateholders as a condition
        to taking any such action;

       

      (vi) The
        Trustee may execute any of the trusts or powers hereunder or perform any
        duties
        hereunder either directly or by or through agents, accountants or attorneys,
        and
        the Trustee shall not be responsible for any misconduct or negligence on
        the
        part of any agents, accountants or attorneys appointed with due care by it
        hereunder;

      
        
          
          

        

        
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      (vii) The
        Trustee shall have no obligation to invest and reinvest any cash held in
        the
        absence of timely and specific written investment direction from the Servicer
        or
        the Depositor. Except as provided in Section 3.12(b) with respect to the
        funds
        on deposit in the Certificate Account, in no event shall the Trustee be liable
        for the selection of investments or for investment losses incurred thereon
        and
        the Trustee shall have no liability in respect of losses incurred as a result
        of
        the liquidation of any investment incurred as a result of the liquidation
        of any
        investment prior to its stated maturity or the failure of the Servicer or
        the
        Depositor to provide timely written investment direction; and

       

      (viii) In
        order
        to comply with its duties under the USA Patriot Act of 2001, the Trustee
        shall
        obtain and verify certain information and documentation from the other parties
        to this Agreement including, but not limited to, each such party’s name, address
        and other identifying information.

       

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

       

      SECTION
        8.03  Trustee
        Not Liable for Certificates or Mortgage Loans.
        The
        recitals contained herein and in the Certificates (other than the signature
        of
        the Trustee, the authentication of the Certificate Registrar on the
        Certificates, the acknowledgments of the Trustee contained in Article
        II
        and the
        representations and warranties of the Trustee in Section 8.13)
        shall
        be taken as the statements of the Depositor and the Trustee assumes no
        responsibility for their correctness. The Trustee makes no representations
        or
        warranties as to the validity or sufficiency of this Agreement (other than
        as
        specifically set forth with respect to such party in Section
        8.13)
        or of
        the Certificates (other than the signature of the Trustee and authentication
        of
        the Certificate Registrar on the Certificates) or of any Mortgage Loan or
        related document or of MERS or the MERS® System. The Trustee shall not be
        accountable for the use or application by the Depositor of any of the
        Certificates or of the proceeds of such Certificates, or for the use or
        application of any funds paid to the Depositor or the Servicer in respect
        of the
        Mortgage Loans or deposited in or withdrawn from the Custodial Account by
        the
        Servicer, other than any funds held by or on behalf of the Trustee in accordance
        with Section
        3.10,
        subject
        to Section
        8.01.

       

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

      
        
          
          

        

        
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      SECTION
        8.05  Trustee’s
        Fees and Expenses.
        (a) The
        Trustee shall withdraw from the Certificate Account on each Distribution
        Date
        and pay to itself the Trustee Fee. The Trustee, or any director, officer,
        employee or agent of the Trustee shall be indemnified by the Trust Fund and
        held
        harmless against any loss, liability or expense (not including expenses,
        disbursements and advances incurred or made by the Trustee including the
        compensation and the expenses and disbursements of its agents and counsel,
        in
        the ordinary course of the Trustee’s performance in accordance with the
        provisions of this Agreement) incurred by the Trustee in connection with
        any
        Servicer Event of Default (not including expenses, disbursements and advances
        incurred or made by the Trustee in its capacity as successor Servicer), default,
        claim or legal action or any pending or threatened claim or legal action
        arising
        out of or in connection with the acceptance or administration of its obligations
        and duties under this Agreement or the Swap Agreement, other than any loss,
        liability or expense (i) resulting from a breach of the Servicer’s obligations
        and duties under this Agreement (for which the Servicer indemnifies pursuant
        to
Sections
        8.05(b)
        and
10.03(b)),
        (ii)
        for the expenses of preparing and filing Tax Returns pursuant to Section
        10.01(d)
        or (iii)
        any loss, liability or expense incurred by reason of its willful misfeasance,
        bad faith or negligence in the performance of its duties hereunder or by
        reason
        of reckless disregard of its respective obligations and duties hereunder.
        Any
        amounts payable to the Trustee, or any director, officer, employee or agent
        of
        the Trustee in respect of the indemnification provided by this paragraph
        (a), or
        pursuant to any other right of reimbursement from the Trust Fund that the
        Trustee, or any director, officer, employee or agent of the Trustee, may
        have
        hereunder in its capacity as such, may be withdrawn by the Trustee from the
        Certificate Account at any time.

       

      (b) The
        Servicer agrees to indemnify the Trustee from, and hold it harmless against,
        any
        loss, liability or expense (including reasonable legal fees and disbursements
        of
        counsel) resulting from a breach of the Servicer’s obligations and duties under
        this Agreement. Such indemnity shall survive the termination or discharge
        of
        this Agreement and the resignation or removal of the Trustee. Any payment
        hereunder made by the Servicer to the Trustee shall be from the Servicer’s own
        funds, without reimbursement from the Trust Fund therefor.

       

      The
        provisions of this Section
        8.05
        shall
        survive the termination of this Agreement or the earlier resignation or removal
        of the Trustee.

       

      SECTION
        8.06  Eligibility
        Requirements for Trustee.
        The
        Trustee hereunder shall at all times be a corporation or an association (other
        than the Depositor, the Seller, the Servicer or any Affiliate of the foregoing)
        organized and doing business under the laws of any state or the United States
        of
        America, authorized under such laws to exercise corporate trust powers, having
        a
        combined capital and surplus of at least $50,000,000 and subject to supervision
        or examination by federal or state authority. If such corporation or association
        publishes reports of conditions at least annually, pursuant to law or to
        the
        requirements of the aforesaid supervising or examining authority, then for
        the
        purposes of this Section the combined capital and surplus of such corporation
        or
        association shall be deemed to be its combined capital and surplus as set
        forth
        in its most recent report of condition so published. Any successor trustee
        appointed pursuant to Section
        8.07
        shall
        have a sufficient rating so as to maintain the then-current ratings of the
        Certificates. In case at any time the Trustee shall cease to be eligible
        in
        accordance with the provisions of this Section, the Trustee shall resign
        immediately in the manner and with the effect specified in Section
        8.07.

      
        
          
          

        

        
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      SECTION
        8.07  Resignation
        and Removal of the Trustee.
        The
        Trustee may at any time resign and be discharged from the trust hereby created
        by giving written notice thereof to the Depositor, the Servicer and the
        Certificateholders. Upon receiving such notice of resignation of the Trustee,
        the Depositor shall promptly appoint a successor trustee by written instrument,
        in duplicate, one copy of which instrument shall be delivered to the resigning
        Trustee and one copy to the successor trustee. A copy of such instrument
        shall
        be delivered to the Certificateholders, the Trustee and the Servicer by the
        Depositor. If no successor trustee shall have been so appointed and have
        accepted appointment within 30 days after the giving of such notice of
        resignation or removal, the Trustee may petition any court of competent
        jurisdiction for the appointment of a successor trustee.

       

      If
        at any
        time the Trustee shall cease to be eligible in accordance with the provisions
        of
Section
        8.06
        and
        shall fail to resign after written request therefor by the Depositor, or
        if at
        any time the Trustee shall become incapable of acting, or shall be adjudged
        bankrupt or insolvent, or a receiver of the Trustee or of its property shall
        be
        appointed, or any public officer shall take charge or control of the Trustee
        or
        of its property or affairs for the purpose of rehabilitation, conservation
        or
        liquidation, then the Depositor may remove the Trustee and appoint a successor
        trustee by written instrument, in duplicate, which instrument shall be delivered
        to the Trustee so removed and to the successor trustee. A copy of such
        instrument shall be delivered to the Certificateholders and the Servicer
        by the
        Depositor.

       

      The
        Holders of Certificates entitled to at least 66% of the Voting Rights may
        at any
        time remove the Trustee and appoint a successor trustee by written instrument
        or
        instruments, in triplicate, signed by such Holders or their attorneys-in-fact
        duly authorized, one complete set of which instruments shall be delivered
        to the
        Depositor, one complete set to the Trustee so removed and one complete set
        to
        the successor so appointed. A copy of such instrument shall be delivered
        to the
        Certificateholders and the Servicer by the Depositor.

       

      Any
        resignation or removal of the Trustee and appointment of a successor trustee
        pursuant to any of the provisions of this Section shall not become effective
        until acceptance of appointment by the successor trustee as provided in
Section
        8.08.
        Any
        costs associated with removing and replacing the Trustee shall be payable
        by the
        Trustee being removed or replaced if such Trustee is being removed or replaced
        for cause.

       

      SECTION
        8.08  Successor
        Trustee.
        Any
        successor trustee appointed as provided in Section
        8.07
        shall
        execute, acknowledge and deliver to the Depositor and to its predecessor
        trustee
        an instrument accepting such appointment hereunder, and thereupon the
        resignation or removal of the predecessor trustee shall become effective
        and
        such successor trustee without any further act, deed or conveyance, shall
        become
        fully vested with all the rights, powers, duties and obligations of its
        predecessor hereunder, with the like effect as if originally named as trustee
        herein. The predecessor trustee shall deliver to the successor trustee all
        Mortgage Files and related documents and statements, as well as all moneys,
        held
        by it hereunder (other than any Mortgage Files at the time held by a custodian,
        which custodian shall become the agent of any successor trustee hereunder),
        and
        the Depositor and the predecessor trustee shall execute and deliver such
        instruments and do such other things as may reasonably be required for more
        fully and certainly vesting and confirming in the successor trustee all such
        rights, powers, duties and obligations.

      
        
          
          

        

        
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      No
        successor trustee shall accept appointment as provided in this Section unless
        at
        the time of such acceptance such successor trustee shall be eligible under
        the
        provisions of Section 8.06
        and the
        appointment of such successor trustee shall not result in a downgrading of
        any
        Class of Certificates by either Rating Agency, as evidenced by a letter from
        each Rating Agency.

       

      Upon
        acceptance of appointment by a successor trustee as provided in this Section,
        the Depositor shall mail notice of the succession of such trustee hereunder
        to
        all Holders of Certificates at their addresses as shown in the Certificate
        Register. If the Depositor fails to mail such notice within 10 days after
        acceptance of appointment by the successor trustee, the successor trustee
        shall
        cause such notice to be mailed at the expense of the Depositor.

       

      SECTION
        8.09  Merger
        or Consolidation of Trustee.
        Any
        corporation or association into which the Trustee may be merged or converted
        or
        with which it may be consolidated or any corporation or association resulting
        from any merger, conversion or consolidation to which the Trustee shall be
        a
        party, or any corporation or association succeeding to the business of the
        Trustee shall be the successor of the Trustee hereunder, provided such
        corporation or association shall be eligible under the provisions of
Section
        8.06,
        without
        the execution or filing of any paper or any further act on the part of any
        of
        the parties hereto, anything herein to the contrary
        notwithstanding.

       

      SECTION
        8.10  Appointment
        of Co-Trustee or Separate Trustee.
        (a)
        Notwithstanding any other provisions hereof, at any time, for the purpose
        of
        meeting any legal requirements of any jurisdiction in which any part of REMIC
        I
        or property securing the same may at the time be located, the 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 to act
        as
        co-trustee or co-trustees, jointly with the Trustee, or separate trustee
        or
        separate trustees, of all or any part of REMIC I, and to vest in such Person
        or
        Persons, in such capacity, such title to REMIC I, or any part thereof, and,
        subject to the other provisions of this Section
        8.10,
        such
        powers, duties, obligations, rights and trusts as the Servicer and the Trustee
        may consider necessary or desirable. Any such co-trustee or separate trustee
        shall be subject to the written approval of the Servicer. If the Servicer
        shall
        not have joined in such appointment within 15 days after the receipt by it
        of a
        request so to do, or in case a Servicer Event of Default shall have occurred
        and
        be continuing, the Trustee alone shall have the power to make such appointment.
        No co-trustee or separate trustee hereunder shall be required to meet the
        terms
        of eligibility as a successor trustee under Section
        8.06
        hereunder and no notice to Holders of Certificates of the appointment of
        co-trustee(s) or separate trustee(s) shall be required under Section
        8.08
        hereof.
        The Servicer shall be responsible for the fees of any co-trustee or separate
        trustee appointed under this Section
        8.10.

       

      (b) In
        the
        case of any appointment of a co-trustee or separate trustee pursuant to this
        Section
        8.10,
        all
        rights, powers, duties and obligations conferred or imposed upon the Trustee
        shall be conferred or imposed upon and exercised or performed by the Trustee
        and
        such separate trustee or co-trustee jointly, except to the extent that under
        any
        law of any jurisdiction in which any particular act or acts are to be performed
        by the Trustee (whether as Trustee hereunder or as successor to the Servicer
        hereunder), the Trustee shall be incompetent or unqualified to perform such
        act
        or acts, in which event such rights, powers, duties and obligations (including
        the holding of title to REMIC I 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.

      
        
          
          

        

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

       

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

       

      SECTION
        8.11  Trustee
        to Execute Swap Agreement.
        The
        Depositor hereby directs the Trustee to execute, deliver and perform its
        obligations under the Swap Agreement on the Closing Date and thereafter on
        behalf of the Holders of the Class A Certificates and the Mezzanine
        Certificates. The Depositor and the Holders of the Class A Certificates and
        the
        Mezzanine Certificates by their acceptance of such Certificates acknowledge
        and
        agree that the Trustee shall execute, deliver and perform its obligations
        under
        the Swap Agreement and shall do so solely in its capacity as Trustee of the
        Trust Fund and not in its individual capacity.

       

      SECTION
        8.12  Appointment
        of Office or Agency.
        The
        Trustee shall maintain an office or agency in the United States where the
        Certificates may be surrendered for registration of transfer or exchange,
        and
        presented for final distribution. As of the Closing Date, the Trustee designates
        its Corporate Trust Office in Minneapolis, Minnesota for such purposes. Notices
        and demands to or upon the Trustee in respect of the Certificates and this
        Agreement may be delivered at the Corporate Trust Office in Columbia, Maryland.
        

       

      SECTION
        8.13  Representations
        and Warranties of the Trustee.
        The
        Trustee hereby represents and warrants, solely as to itself, to the Servicer
        and
        the Depositor, as of the Closing Date, that:

       

      (i) It
        is a
        national banking association duly organized, validly existing and in good
        standing under the laws of the United States.

      
        
          
          

        

        
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      (ii) The
        execution and delivery of this Agreement by it, and the performance and
        compliance with the terms of this Agreement by it, will not violate its charter
        or bylaws.

       

      (iii) It
        has
        the full power and authority to enter into and consummate all transactions
        contemplated by this Agreement, has duly authorized the execution, delivery
        and
        performance of this Agreement, and has duly executed and delivered this
        Agreement.

       

      (iv) This
        Agreement, assuming due authorization, execution and delivery by the other
        parties hereto, constitutes a valid, legal and binding obligation of it,
        enforceable against it in accordance with the terms hereof, subject to (A)
        applicable bankruptcy, insolvency, receivership, reorganization, moratorium
        and
        other laws affecting the enforcement of creditors’ rights generally, and (B)
        general principles of equity, regardless of whether such enforcement is
        considered in a proceeding in equity or at law.

       

      ARTICLE
        IX 

       

      TERMINATION

       

      SECTION
        9.01  Termination
        Upon Repurchase or Liquidation of All Mortgage Loans.
        (a)
        Subject to Section
        9.02,
        the
        respective obligations and responsibilities under this Agreement of the
        Depositor, the Servicer and the Trustee (other than the obligations of the
        Servicer to the Trustee pursuant to Section
        8.05
        and of
        the Servicer to make remittances to the Trustee and the Trustee to make payments
        in respect of the REMIC I Regular Interests and the Classes of Certificates
        as
        hereinafter set forth) shall terminate upon payment to the Certificateholders
        and the deposit of all amounts held by or on behalf of the Trustee and required
        hereunder to be so paid or deposited on the Distribution Date coinciding
        with or
        following the earlier to occur of (i) the purchase by the Terminator (as
        defined below) of all Mortgage Loans and each REO Property remaining in REMIC
        I
        and (ii) the final payment or other liquidation (or any advance with respect
        thereto) of the last Mortgage Loan or REO Property remaining in REMIC I;
        provided,
        however,
        that in
        no event shall the trust created hereby continue beyond the earlier of
        (a) 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 and (b) the latest possible
        Maturity Date. Subject to Section
        3.10
        hereof,
        the purchase by the Terminator of all Mortgage Loans and each REO Property
        remaining in REMIC I shall be at a price equal to the greater of (i) the
        Stated
        Principal Balance of the Mortgage Loans and the appraised value of any REO
        Properties (such appraisal to be conducted by an Independent appraiser mutually
        agreed upon by the Terminator and, to the extent that the Class A Certificates
        or a Class of Mezzanine Certificates will not receive all amounts owed to
        it as
        a result of the termination, the Trustee, in their reasonable discretion)
        and
        (ii) the fair market value of the Mortgage Loans and the REO Properties (as
        determined by the Terminator and, to the extent that the Class A Certificates
        or
        a Class of Mezzanine Certificates will not receive all amounts owed to it
        as a
        result of the termination, the Trustee (it being understood and agreed that
        any
        determination by the Trustee shall be made solely in reliance on an appraisal
        by
        an Independent appraiser as provided above)), 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 the related Certificateholders pursuant to
Section
        9.01(c),
        in each
        case plus
        accrued
        and unpaid interest thereon at the weighted average of the Mortgage Rates
        through the end of the Due Period preceding the final Distribution Date
plus
        unreimbursed Servicing Advances, any Swap Termination Payment payable to
        the
        Swap Counterparty then remaining unpaid or which is due to the exercise of
        such
        option, Advances, any unpaid Servicing Fees allocable to such Mortgage Loans
        and
        REO Properties and any accrued and unpaid Net WAC Rate Carryover Amounts
        (the
“Termination
        Price”);
        provided,
        however,
        such
        option may only be exercised if the Termination Price is sufficient to pay
        all
        interest accrued on, as well as amounts necessary to retire the principal
        balance of, each class of notes issued pursuant to the Indenture. If the
        determination of the fair market value of the Mortgage Loans and REO Properties
        shall be required to be made by the Terminator and an Independent appraiser
        as
        provided above, (A) such appraisal shall be obtained at no expense to the
        Trustee and (B) the Trustee may conclusively rely on, and shall be protected
        in
        relying on, such appraisal.

      
        
          
          

        

        
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      (b) The
        majority Holder of the Class CE Certificates shall have the right (the party
        exercising such right, the “Terminator”)
        to
        purchase all of the Mortgage Loans and each REO Property remaining in REMIC
        I
        pursuant to clause
        (i)
        of the
        preceding paragraph in the manner set forth in Section
        9.01(c)
        below if
        the aggregate Stated Principal Balance of the Mortgage Loans and each REO
        Property remaining in the Trust Fund at the time of such election is reduced
        to
        less than 10% of the aggregate Stated Principal Balance of the Mortgage Loans
        as
        of the Cut-off Date. By acceptance of a Residual Certificate, the Holders
        of the
        Residual Certificates agree, in connection with any termination hereunder,
        to
        assign and transfer any amounts in excess of par, and to the extent received
        in
        respect of such termination, to pay any such amounts to the Holders of the
        Class
        CE Certificates.

       

      (c) Notice
        of
        the liquidation of the Certificates shall be given promptly by the Trustee
        by
        letter to Certificateholders mailed (a) in the event such notice is given
        in
        connection with the purchase of the Mortgage Loans and each REO Property
        by the
        Terminator, not earlier than the 10th
        day and
        not later than the 20th
        day of
        the month next preceding the month of the final distribution on the related
        Certificates or (b) otherwise during the month of such final distribution
        on or
        before the Determination Date in such month, in each case specifying (i)
        the
        Distribution Date upon which the Trust Fund will terminate and the final
        payment
        in respect of the REMIC I Regular Interests, as applicable and the related
        Certificates will be made upon presentation and surrender of the related
        Certificates at the office of the Trustee therein designated, (ii) the amount
        of
        any such final payment, (iii) that no interest shall accrue in respect of
        the
        REMIC I Regular Interests or the related Certificates from and after the
        Interest Accrual Period relating to the final Distribution Date therefor
        and
        (iv) that the Record Date otherwise applicable to such Distribution Date
        is not
        applicable, payments being made only upon presentation and surrender of the
        related Certificates at the office of the Trustee. In the event such notice
        is
        given in connection with the purchase of all of the Mortgage Loans and each
        REO
        Property remaining in REMIC I by the Terminator, the Terminator shall deliver
        to
        the Trustee for deposit in the Certificate Account, not later than the third
        Business Day preceding the date for such final payment, an amount in immediately
        available funds equal to the above-described purchase price. The Trustee
        shall
        remit to the Servicer from such funds deposited in the Certificate Account
        (i)
        any amounts which the Servicer would be permitted to withdraw and retain
        from
        the Custodial Account pursuant to Section
        3.11
        and (ii)
        any other amounts otherwise payable by the Trustee to the Servicer from amounts
        on deposit in the Certificate Account pursuant to the terms of this Agreement,
        in each case prior to making any final distributions pursuant to Section
        10.01(d)
        below.
        Upon certification to the Trustee by the Terminator of the making of such
        final
        deposit, the Trustee shall promptly release to the Terminator the Mortgage
        Files
        for the remaining Mortgage Loans, and the Trustee shall execute all assignments,
        endorsements and other instruments necessary to effectuate such
        transfer.

      
        
          
          

        

        
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      Immediately
        following the deposit of funds in trust hereunder in respect of the
        Certificates, the Trust Fund shall terminate.

       

      SECTION
        9.02  Additional
        Termination Requirements.
        (a) In
        the event that the Terminator purchases all the Mortgage Loans and each REO
        Property or the final payment on or other liquidation of the last Mortgage
        Loan
        or REO Property remaining in REMIC I pursuant to Section
        9.01,
        the
        Trust Fund (or the applicable Trust REMIC) shall be terminated in accordance
        with the following additional requirements:

       

      (i) The
        Trustee shall specify the first day in the 90-day liquidation period in a
        statement attached to each Trust REMIC’s final Tax Return pursuant to Treasury
        regulation Section 1.860F-1 and shall satisfy all requirements of a qualified
        liquidation under Section 860F of the Code and any regulations thereunder,
        as
        evidenced by an Opinion of Counsel obtained at the expense of the
        Terminator;

       

      (ii) During
        such 90-day liquidation period and, at or prior to the time of making of
        the
        final payment on the Certificates, the Trustee shall sell all of the assets
        of
        REMIC I to the Terminator for cash; and

       

      (iii) At
        the
        time of the making of the final payment on the Certificates, the Trustee
        shall
        distribute or credit, or cause to be distributed or credited, to the Holders
        of
        the Residual Certificates in respect of the Class R-I Interest all cash on
        hand
        in the Trust Fund (other than cash retained to meet claims), and the Trust
        Fund
        shall terminate at that time.

       

      (b) At
        the
        expense of the requesting Terminator (or, if the Trust Fund is being terminated
        as a result of the occurrence of the event described in clause
        (ii)
        of the
first
        paragraph
        of
Section
        9.01,
        at the
        expense of the Depositor without the right of reimbursement from the Trust
        Fund), the Terminator shall prepare or cause to be prepared the documentation
        required in connection with the adoption of a plan of liquidation of each
        Trust
        REMIC pursuant to this Section
        9.02.

       

      (c) By
        their
        acceptance of Certificates, the Holders thereof hereby agree to authorize
        the
        Trustee to specify the 90-day liquidation period for each Trust REMIC, which
        authorization shall be binding upon all successor
        Certificateholders.

      
        
          
          

        

        
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      ARTICLE
        X 

       

      REMIC
        PROVISIONS

       

      SECTION
        10.01  REMIC
        Administration.
        (a) The
        Trustee shall elect to treat each Trust REMIC as a REMIC under the Code and,
        if
        necessary, under applicable state law. Each such election will be made by
        the
        Trustee on Form 1066 or other appropriate federal tax or information return
        or
        any appropriate state return for the taxable year ending on the last day
        of the
        calendar year in which the Certificates are issued. For the purposes of the
        REMIC election in respect of REMIC I, the REMIC I Regular Interests shall
        be
        designated as the Regular Interests in REMIC I and the Class R-I Interest
        shall
        be designated as the sole class of Residual Interests in REMIC I. The REMIC
        regular interest components of the Class A Certificates, the Mezzanine
        Certificates and the Class CE Certificates shall be designated as the Regular
        Interests in REMIC II and the Class R-II Interest shall be designated as
        the
        sole class of Residual Interests in REMIC II. The Trustee shall not permit
        the
        creation of any “interests” in any Trust REMIC (within the meaning of Section
        860G of the Code) other than the REMIC I Regular Interests and the interests
        represented by the Certificates.

       

      (b) The
        Closing Date is hereby designated as the “Startup Day” of each Trust REMIC
        within the meaning of Section 860G(a)(9) of the Code.

       

      (c) The
        Trustee shall be reimbursed for any and all expenses relating to any tax
        audit
        of the Trust Fund (including, but not limited to, any professional fees or
        any
        administrative or judicial proceedings with respect to each Trust REMIC that
        involve the Internal Revenue Service or state tax authorities), including
        the
        expense of obtaining any tax related Opinion of Counsel required to be obtained
        hereunder. The Trustee, as agent for each Trust REMIC’s tax matters person shall
        (i) act on behalf of the Trust Fund in relation to any tax matter or controversy
        involving any Trust REMIC and (ii) represent the Trust Fund in any
        administrative or judicial proceeding relating to an examination or audit
        by any
        governmental taxing authority with respect thereto. The holder of the largest
        Percentage Interest of each Class of Residual Certificates shall be designated,
        in the manner provided under Treasury regulations section 1.860F-4(d) and
        Treasury regulations section 301.6231(a)(7)-1, as the tax matters person
        of the
        Trust REMICs created hereunder. By their acceptance thereof, the holder of
        the
        largest Percentage Interest of the Residual Certificates hereby agrees to
        irrevocably appoint the Trustee or an Affiliate as its agent to perform all
        of
        the duties of the tax matters person for the Trust Fund.

       

      (d) The
        Trustee shall prepare, sign and file all of the Tax Returns (including Form
        8811, which must be filed within 30 days following the Closing Date) in respect
        of each Trust REMIC created hereunder. The expenses of preparing and filing
        such
        returns shall be borne by the Trustee without any right of reimbursement
        therefor.

       

      (e) The
        Trustee shall perform on behalf of each Trust REMIC all reporting and other
        tax
        compliance duties that are the responsibility of such REMIC under the Code,
        the
        REMIC Provisions or other compliance guidance issued by the Internal Revenue
        Service or any state or local taxing authority. Among its other duties, as
        required by the Code, the REMIC Provisions or other such compliance guidance,
        the Trustee shall provide (i) to any Transferor of a Residual Certificate
        such
        information as is necessary for the application of any tax relating to the
        transfer of a Residual Certificate to any Person who is not a Permitted
        Transferee, (ii) to the Certificateholders such information or reports as
        are
        required by the Code or the REMIC Provisions including reports relating to
        interest, original issue discount and market discount or premium (using the
        Prepayment Assumption as required) and (iii) to the Internal Revenue Service
        the
        name, title, address and telephone number of the person who will serve as
        the
        representative of each Trust REMIC. The Depositor shall provide or cause
        to be
        provided to the Trustee, within ten (10) days after the Closing Date, all
        information or data that the Trustee reasonably determines to be relevant
        for
        tax purposes as to the valuations and issue prices of the Certificates,
        including, without limitation, the price, yield, prepayment assumption and
        projected cash flow of the Certificates.

      
        
          
          

        

        
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      (f) The
        Trustee shall take such action and shall cause each Trust REMIC created
        hereunder to take such action as shall be necessary to create or maintain
        the
        status thereof as a REMIC under the REMIC Provisions. The Trustee shall not
        take
        any action or cause the Trust Fund to take any action or fail to take (or
        fail
        to cause to be taken) any action that, under the REMIC Provisions, if taken
        or
        not taken, as the case may be, could (i) endanger the status of each Trust
        REMIC
        as a REMIC or (ii) result in the imposition of a tax upon the Trust Fund
        (including but not limited to the tax on prohibited transactions as defined
        in
        Section 860F(a)(2) of the Code and the tax on contributions to a REMIC set
        forth
        in Section 860G(d) of the Code) (either such event, an “Adverse
        REMIC Event”)
        unless
        the Trustee has received an Opinion of Counsel, addressed to the Trustee
        (at the
        expense of the party seeking to take such action but in no event at the expense
        of the Trustee) to the effect that the contemplated action will not, with
        respect to any Trust REMIC, endanger such status or result in the imposition
        of
        such a tax, nor shall the Servicer take or fail to take any action (whether
        or
        not authorized hereunder) as to which the Trustee has advised it in writing
        that
        it has received an Opinion of Counsel to the effect that an Adverse REMIC
        Event
        could occur with respect to such action; provided that the Servicer may
        conclusively rely on such Opinion of Counsel and shall incur no liability
        for
        its action or failure to act in accordance with such Opinion of Counsel.
        In
        addition, prior to taking any action with respect to any Trust REMIC or the
        respective assets of each, or causing any Trust REMIC to take any action,
        which
        is not contemplated under the terms of this Agreement, the Servicer will
        consult
        with the Trustee or its designee, in writing, with respect to whether such
        action could cause an Adverse REMIC Event to occur with respect to any Trust
        REMIC and the Servicer shall not take any such action or cause any Trust
        REMIC
        to take any such action as to which the Trustee has advised it in writing
        that
        an Adverse REMIC Event could occur; provided that the Servicer may conclusively
        rely on such writing and shall incur no liability for its action or failure
        to
        act in accordance with such writing. The Trustee may consult with counsel
        to
        make such written advice, and the cost of same shall be borne by the party
        seeking to take the action not permitted by this Agreement, but in no event
        shall such cost be an expense of the Trustee. At all times as may be required
        by
        the Code, the Trustee will ensure that substantially all of the assets of
        REMIC
        I will consist of “qualified mortgages” as defined in Section 860G(a)(3) of the
        Code and “permitted investments” as defined in Section 860G(a)(5) of the Code,
        to the extent such obligations are within the Trustee’s control and not
        otherwise inconsistent with the terms of this Agreement.

      
        
          
          

        

        
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      (g) In
        the
        event that any tax is imposed on “prohibited transactions” of any Trust REMIC
        created hereunder as defined in Section 860F(a)(2) of the Code, on the “net
        income from foreclosure property” of such REMIC as defined in Section 860G(c) of
        the Code, on any contributions to any such REMIC after the Startup Day therefor
        pursuant to Section 860G(d) of the Code, or any other tax is imposed by the
        Code
        or any applicable provisions of state or local tax laws, such tax shall be
        charged (i) to the Trustee pursuant to Section
        10.03
        hereof,
        if such tax arises out of or results from a breach by the Trustee of any
        of its
        obligations under this Article
        X,
        (ii) to
        the Servicer pursuant to Section
        10.03
        hereof,
        if such tax arises out of or results from a breach by the Servicer of any
        of its
        obligations under Article
        III
        or this
Article
        X,
        or
        (iii) in all other cases, against amounts on deposit in the Certificate Account
        and shall be paid by withdrawal therefrom.

       

      (h) On
        or
        before April 15 of each calendar year, commencing April 15, 2007, the Trustee
        shall deliver to each Rating Agency an Officer’s Certificate of the Trustee
        stating the Trustee’s compliance with this Article
        X.

       

      (i) The
        Trustee shall, for federal income tax purposes, maintain books and records
        with
        respect to each Trust REMIC on a calendar year and on an accrual
        basis.

       

      (j) Following
        the Startup Day, neither the Servicer nor the Trustee shall accept any
        contributions of assets to any Trust REMIC other than in connection with
        any
        Qualified Substitute Mortgage Loan delivered in accordance with Section
        2.03
        unless
        it shall have received an Opinion of Counsel to the effect that the inclusion
        of
        such assets in the Trust Fund will not cause any Trust REMIC to fail to qualify
        as a REMIC at any time that any Certificates are outstanding or subject any
        Trust REMIC to any tax under the REMIC Provisions or other applicable provisions
        of federal, state and local law or ordinances.

       

      (k) Neither
        the Trustee nor the Servicer shall enter into any arrangement by which any
        Trust
        REMIC will receive a fee or other compensation for services nor knowingly
        permit
        any Trust REMIC to receive any income from assets other than “qualified
        mortgages” as defined in Section 860G(a)(3) of the Code or “permitted
        investments” as defined in Section 860G(a)(5) of the Code.

       

      SECTION
        10.02  Prohibited
        Transactions and Activities.
        None of
        the Depositor, the Servicer or the Trustee shall sell, dispose of or substitute
        for any of the Mortgage Loans (except in connection with (i) the foreclosure
        of
        a Mortgage Loan, including but not limited to, the acquisition or sale of
        a
        Mortgaged Property acquired by deed in lieu of foreclosure, (ii) the bankruptcy
        of REMIC I, (iii) the termination of REMIC I pursuant to Article
        IX
        of this
        Agreement, (iv) a substitution pursuant to Article
        II
        of this
        Agreement or (v) a purchase of Mortgage Loans pursuant to Article
        II
        or
III
        of this
        Agreement), nor acquire any assets for any Trust REMIC (other than REO Property
        acquired in respect of a defaulted Mortgage Loan), nor sell or dispose of
        any
        investments in the Custodial Account or the Certificate Account for gain,
        nor
        accept any contributions to any Trust REMIC after the Closing Date (other
        than a
        Qualified Substitute Mortgage Loan delivered in accordance with Section
        2.03),
        unless
        it has received an Opinion of Counsel, addressed to the Trustee (at the expense
        of the party seeking to cause such sale, disposition, substitution, acquisition
        or contribution but in no event at the expense of the Trustee) that such
        sale,
        disposition, substitution, acquisition or contribution will not (a) affect
        adversely the status of any Trust REMIC as a REMIC or (b) cause any Trust
        REMIC
        to be subject to a tax on “prohibited transactions” or “contributions” pursuant
        to the REMIC Provisions.

      
        
          
          

        

        
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      SECTION
        10.03  Servicer
        and Trustee Indemnification.
        (a) The
        Trustee agrees to indemnify the Trust Fund, the Depositor and the Servicer
        for
        any taxes and costs including, without limitation, any reasonable attorneys’
fees imposed on or incurred by the Trust Fund, the Depositor or the Servicer
        as
        a result of a breach of the Trustee’s covenants set forth in this Article
        X.

       

      (b) The
        Servicer agrees to indemnify the Trust Fund, the Depositor and the Trustee
        for
        any taxes and costs including, without limitation, any reasonable attorneys’
fees imposed on or incurred by the Trust Fund, the Depositor or the Trustee,
        as
        a result of a breach of the Servicer’s covenants set forth in Article
        III
        or this
Article
        X.

       

      ARTICLE
        XI 

       

      TRUSTEE
        COMPLIANCE WITH REGULATION AB

       

      SECTION
        11.01  Intent
        of the Parties; Reasonableness.
        The
        Seller, the Trustee, the Depositor and the Servicer acknowledge and agree
        that
        the purpose of Article XI of this Agreement is to facilitate compliance by
        the
        Seller and the Depositor with the provisions of Regulation AB and related
        rules
        and regulations of the Commission. Neither the Seller nor the Depositor shall
        exercise its right to request delivery of information or other performance
        under
        these provisions other than in good faith, or for purposes other than compliance
        with the Securities Act, the Exchange Act and the rules and regulations of
        the
        Commission thereunder. Each of the Depositor, the Seller, the Servicer and
        the
        Trustee acknowledges 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 agrees to comply
        with
        requests made by the Seller or the Depositor in good faith for delivery of
        information under these provisions on the basis of evolving interpretations
        of
        Regulation AB. Each of the Servicer and the Trustee shall cooperate fully
        with
        the Seller to deliver to the Seller (including any of its assignees or
        designees) and the Depositor, any and all statements, reports, certifications,
        records and any other information necessary in the good faith determination
        of
        the Seller or the Depositor to permit the Seller or the Depositor to comply
        with
        the provisions of Regulation AB, together with such disclosures relating
        to the
        Servicer, the Trustee and the Mortgage Loans, or the servicing of the Mortgage
        Loans, reasonably believed by the Seller or the Depositor to be necessary
        in
        order to effect such compliance.

       

      SECTION
        11.02  Additional
        Representations and Warranties of the Trustee.
        For so
        long as the Trust is subject to the reporting requirements of the Exchange
        Act,
        the Trustee agrees that: 

       

       

      
        
          
          

        

        
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      (a) The
        Trustee shall be deemed to represent to the Seller and to the Depositor,
        as of
        the date hereof and the date on which information is provided to the Seller
        or
        the Depositor under Sections
        11.01,
        11.02(b)
        or
11.03
        that,
        except as disclosed in writing to the Seller or the Depositor prior to such
        date: (i) it is not aware and has not received notice that any default, early
        amortization or other performance triggering event has occurred as to any
        other
        Securitization Transaction due to any act or failure to act of the Trustee;
        (ii)
        it has not been terminated as trustee in a securitization of mortgage loans,
        (iii) there are no aspects of its financial condition that could have a material
        adverse effect on its performance of its trustee obligations under this
        Agreement or any other Securitization Transaction as to which it is the trustee;
        (iv) there are no material legal or governmental proceedings pending (or
        known
        to be contemplated) against it that would be material to Certificateholders;
        and
        (v) there are no affiliations, relationships or transactions outside the
        ordinary course of business relating to the Trustee, with respect to the
        Depositor or any sponsor, issuing entity, servicer, trustee, originator,
        significant obligor, enhancement or support provider or other material
        transaction party (as such terms are used in Regulation AB) relating to the
        Securitization Transaction contemplated by the Agreement (the “Transaction
        Parties”).

        

      (b) If
        so
        requested by the Seller or the Depositor on any date following the date on
        which
        information is first provided to the Seller or the Depositor under Section
        11.03,
        the
        Trustee shall, within five Business Days following such request, confirm
        in
        writing the accuracy of the representations and warranties set forth in
        paragraph (a) of this Section or, if any such representation and warranty
        is not
        accurate as of the date of such request or such confirmation, provide reasonably
        adequate disclosure of the pertinent facts, in writing, to the requesting
        party.

       

      SECTION
        11.03  Information
        to Be Provided by the Trustee.
        

       

      (a) For
        so
        long as the Trust is subject to the reporting requirements of the Exchange
        Act,
        for the purpose of satisfying the Depositor’s and the Seller’s reporting
        obligation under the Exchange Act with respect to any class of asset-backed
        securities, the Trustee shall provide to the Servicer and the Seller a written
        description of (A) any litigation or governmental proceedings pending against
        the Trustee as of the last day of the calendar month that would be material
        to
        Certificateholders, and (B) any affiliations or relationships (as described
        in
        Item 1119 of Regulation AB) that develop following the Closing Date between
        the
        Trustee and any Transaction Party of the type described in Section
        11.02(a)(iv)
        or
11.02(a)(v)
        as of
        the last day of each calendar year. Any descriptions required with respect
        to
        legal proceedings, as well as updates to previously provided descriptions,
        under
        this Section
        11.03
        shall be
        given no later than five Business Days prior to the Determination Date following
        the month in which the relevant event occurs, and any notices and descriptions
        required with respect to affiliations, as well as updates to previously provided
        descriptions, under this Section
        11.03
        shall be
        given no later than January 31 of the calendar year following the year in
        which
        the relevant event occurs. As of the date the Depositor or the Trustee files
        each Report on Form 10-D and Report on Form 10-K with respect to the
        Certificates, the Trustee will be deemed to represent that any information
        previously provided under this Article
        XI
        is
        materially correct and does not have any material omissions unless the Trustee
        has provided an update to such information.

       

      (b) In
        addition to such information as the Trustee is obligated to provide pursuant
        to
        other provisions of this Agreement, if so requested by the Servicer or the
        Seller in its reasonable good faith determination, the Trustee shall provide
        such information regarding the performance or servicing of the Mortgage Loans
        as
        is reasonably required to facilitate preparation of distribution reports
        in
        accordance with Item 1121 of Regulation AB. 

      
        
          
          

        

        
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      SECTION
        11.04  Report
        on Assessment of Compliance and Attestation.
        On or
        before March 1 of each calendar year, the Trustee shall:

       

      (a) deliver
        to the Seller and the Depositor a report (in form and substance reasonably
        satisfactory to the Seller and the Depositor) regarding the Trustee’s assessment
        of compliance with the applicable Servicing Criteria during the immediately
        preceding calendar year, as required under Rules 13a-18 and 15d-18 of the
        Exchange Act and Item 1122 of Regulation AB. Such report shall be addressed
        to
        the Seller and the Depositor and signed by an authorized officer of the Trustee,
        and shall address each of the Servicing Criteria specified on a certification
        substantially in the form of Exhibit J hereto;

       

      (b) deliver
        to the Seller and the Depositor a report of a registered public accounting
        firm
        reasonably acceptable to the Seller and the Depositor that attests to, and
        reports on, the assessment of compliance made by the Trustee and delivered
        pursuant to the preceding paragraph. Such attestation shall be in accordance
        with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities
        Act and
        the Exchange Act; 

       

      SECTION
        11.05  Indemnification;
        Remedies.
        (a) The
        Trustee shall indemnify the Seller, each affiliate of the Seller, the Depositor,
        the Servicer, each broker dealer acting as underwriter, placement agent or
        initial purchaser, each Person who controls any of such parties (within the
        meaning of Section 15 of the Securities Act and Section 20 of the Exchange
        Act);
        and the respective present and former directors, officers, employees and
        agents
        of each of the foregoing, and shall hold each of them harmless from and against
        any losses, damages, penalties, fines, forfeitures, legal fees and expenses
        and
        related costs, judgments, and any other costs, fees and expenses that any
        of
        them may sustain arising out of or based upon:

       

      (i) (A)
        any
        untrue statement of a material fact contained or alleged to be contained
        in any
        (w) compliance certificate or report regarding the Trustee’s assessment of
        compliance delivered by the Trustee or any Subcontractor of the Trustee pursuant
        to Section
        11.04(a),
        (x) any
        report of a registered public accounting firm delivered by or on behalf of
        the
        Trustee or any Subcontractor of the Trustee pursuant to Section 11.04(b),
        or (y)
        any information about the Trustee provided by it pursuant to Section
        11.01,
        11.02
        or
11.03
        (collectively, the “Trustee
        Information”),
        or
        (B) the omission or alleged omission to state in the Trustee Information
        a
        material fact required to be stated in the Trustee Information or necessary
        in
        order to make the statements therein, in the light of the circumstances under
        which they were made, not misleading;

       

      (ii) any
        failure by the Trustee to deliver any information, report, certification,
        accountants’ letter or other material when and as required under this
Article
        XI;
        or

       

      (iii) any
        breach by the Trustee of a representation or warranty set forth in Section
        11.02(a)
        or in a
        writing furnished pursuant to Section
        11.02(b).

      
        
          
          

        

        
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      (b) In
        the
        case of any failure of performance described in clause
        (ii)
        of this
Section
        11.05(a),
        the
        Trustee shall promptly reimburse the Seller or the Depositor, as applicable,
        for
        all costs reasonably incurred by each such party in order to obtain the
        information, report, certification, accountants’ attestation or other material
        not delivered as required by the Trustee and cooperate with the Depositor
        and
        the Seller to mitigate any damages that may result.

       

      ARTICLE
        XII 

       

      SERVICER
        COMPLIANCE WITH REGULATION AB

       

      SECTION
        12.01  Intent
        of the Parties; Reasonableness.
        The
        Seller, the Depositor and the Servicer acknowledge and agree that the purpose
        of
Article
        XII
        of this
        Agreement is to facilitate compliance by the Seller and the Depositor with
        the
        provisions of Regulation AB and related rules and regulations of the Commission.
        Although Regulation AB is applicable by its terms only to offerings of
        asset-backed securities that are registered under the Securities Act, the
        Servicer acknowledges that investors in privately offered securities may
        require
        that the Seller or the Depositor provide comparable disclosure in unregistered
        offerings. References in this Agreement to compliance with Regulation AB
        include
        provision of comparable disclosure in private offerings.

       

      Neither
        the Seller nor the Depositor shall exercise its right to request delivery
        of
        information or other performance under these provisions other than in good
        faith, or for purposes other than compliance with the Securities Act, the
        Exchange Act and the rules and regulations of the Commission thereunder (or
        the
        provision in a private offering of disclosure comparable to that required
        under
        the Securities Act). The Servicer acknowledges 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
        agrees to comply with requests made by the Seller or 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 transactions
        contemplated by this Agreement, the Servicer shall cooperate fully with the
        Seller to deliver to the Seller (including any of its assignees or designees)
        and the Depositor, any and all statements, reports, certifications, records
        and
        any other information necessary in the good faith determination of the Seller
        or
        the Depositor to permit the Seller or the Depositor to comply with the
        provisions of Regulation AB, together with such disclosures relating to the
        Servicer, any Sub-Servicer, any Third-Party Originator and the Mortgage Loans,
        or the servicing of the Mortgage Loans, reasonably believed by the Seller
        or the
        Depositor to be necessary in order to effect such compliance.

       

      The
        Seller (including any of its assignees or designees) shall cooperate with
        the
        Servicer by providing timely notice of requests for information under these
        provisions and by reasonably limiting such requests to information required,
        in
        the Seller’s reasonable judgment, to comply with Regulation AB.

       

      SECTION
        12.02  Additional
        Representations and Warranties of the Servicer.
        (a) The
        Servicer shall be deemed to represent to the Seller and to the Depositor,
        as of
        the date on which information is first provided to the Seller or the Depositor
        under Section
        12.03
        that,
        except as disclosed in writing to the Seller or the Depositor prior to such
        date: (i) the Servicer is not aware and has not received notice that any
        default, early amortization or other performance triggering event has occurred
        as to any other securitization due to any default of the Servicer as servicer;
        (ii) the Servicer has not been terminated as servicer in a residential mortgage
        loan securitization, either due to a servicing default or to application
        of a
        servicing performance test or trigger; (iii) no material noncompliance with
        the
        applicable servicing criteria with respect to other securitizations of
        residential mortgage loans involving the Servicer as servicer has been disclosed
        or reported by the Servicer; (iv) no material changes to the Servicer’s policies
        or procedures with respect to the servicing function it will perform under
        this
        Agreement for mortgage loans of a type similar to the Mortgage Loans have
        occurred during the three-year period immediately preceding the Closing Date;
        (v) there are no changes to the Servicer’s financial condition that could have a
        material adverse effect on the performance by the Servicer of its servicing
        obligations under this Agreement; (vi) there are no legal or governmental
        proceedings pending (or governmental proceedings known to be contemplated)
        against the Servicer, any Sub-Servicer or any Third-Party Originator that
        are
        material to Certificateholders; and (vii) there are no affiliations,
        relationships or transactions relating to the Servicer, any Sub-Servicer
        or any
        Third-Party Originator with respect to the transactions contemplated by this
        Agreement and any party thereto identified by the Depositor of a type required
        to be described in Item 1119 of Regulation AB.

      
        
          
          

        

        
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      (b) If
        so
        requested by the Seller or the Depositor on any date following the date on
        which
        information is first provided to the Seller or the Depositor under Section
        12.03,
        the
        Servicer shall, within five Business Days following such request, confirm
        in
        writing the accuracy of the representations and warranties set forth in
paragraph
        (a)
        of this
        Section or, if any such representation and warranty is not accurate as of
        the
        date of such request, provide reasonably adequate disclosure of the pertinent
        facts, in writing, to the requesting party.

       

      SECTION
        12.03  Information
        to Be Provided by the Servicer.
        The
        Servicer shall (i) within five Business Days following a request by the Seller
        or the Depositor, provide to the Seller and the Depositor (or, as applicable,
        cause each Third-Party Originator and each Sub-Servicer to provide), in writing
        and in form and substance reasonably satisfactory to the Seller and the
        Depositor, the information and materials specified in paragraphs
        (a),
        (b),
        (c)
        and
(f)
        of this
        Section, and (ii) as promptly as practicable following notice to or discovery
        by
        the Servicer, provide to the Seller and the Depositor (in writing and in
        form
        and substance reasonably satisfactory to the Seller and the Depositor) the
        information specified in paragraph
        (d)
        of this
        Section.

       

      (a) If
        so
        requested by the Seller or the Depositor, the Servicer shall provide such
        information regarding (i) the Servicer, as originator of the Mortgage Loans
        (including as an acquirer of Mortgage Loans from a Qualified Correspondent),
        or
        (ii) each Third-Party Originator, and (iii) as applicable, each Sub-Servicer,
        as
        is requested for the purpose of compliance with Items 1103(a)(1), 1105, 1110,
        1117 and 1119 of Regulation AB. Such information shall include, at a
        minimum:

       

      (A) the
        originator’s form of organization;

      
        
          
          

        

        
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      (B) a
        description of the originator’s origination program and how long the originator
        has been engaged in originating residential mortgage loans, which description
        shall include a discussion of the originator’s experience in originating
        mortgage loans of a similar type as the Mortgage Loans; information regarding
        the size and composition of the originator’s origination portfolio; and
        information that may be material to an analysis of the performance of the
        Mortgage Loans, including the originators’ credit-granting or underwriting
        criteria for mortgage loans of similar type(s) as the Mortgage Loans and
        such
        other information as the Seller or the Depositor may reasonably request for
        the
        purpose of compliance with Item 1110(b)(2) of Regulation AB;

       

      (C) a
        description of any legal or governmental proceedings pending (or governmental
        proceedings known to be contemplated) against the Servicer, any Sub-Servicer
        or
        any Third-Party Originator that would be material to Certificateholders;
        and

       

      (D) a
        description of any affiliation or relationship that is required to be described
        in Item 1119 of Regulation AB between the Servicer, each Third-Party Originator,
        each Sub-Servicer and any of the following parties to a Securitization
        Transaction, as such parties are identified to the Servicer by the Seller
        or the
        Depositor in writing in advance of such Securitization Transaction:

       

      (i) the
        sponsor;

       

      (ii) the
        depositor;

       

      (iii) the
        issuing entity;

       

      (iv) any
        servicer;

       

      (v) any
        trustee;

       

      (vi) any
        originator;

       

      (vii) any
        significant obligor;

       

      (viii) any
        enhancement or support provider; and

       

      (ix) any
        other
        material transaction party.

       

      (b) If
        so
        requested by the Seller or the Depositor, the Servicer shall provide (or,
        as
        applicable, cause each Third-Party Originator to provide) Static Pool
        Information with respect to the mortgage loans (of a similar type as the
        Mortgage Loans) originated by (i) the Servicer, if the Servicer is an originator
        of Mortgage Loans (including as an acquirer of Mortgage Loans from a Qualified
        Correspondent), and/or (ii) each Third-Party Originator. Such Static Pool
        Information shall be prepared by the Servicer (or Third-Party Originator)
        on the
        basis of its reasonable, good faith interpretation of the requirements of
        Item
        1105(a)(1)-(3) of Regulation AB. The content of such Static Pool Information
        may
        be in the form customarily provided by the Servicer, and need not be customized
        for the Seller or the Depositor. Such Static Pool Information for each vintage
        origination year or prior securitized pool, as applicable, shall be presented
        in
        increments no less frequently than quarterly over the life of the mortgage
        loans
        included in the vintage origination year or prior securitized pool. The most
        recent periodic increment must be as of a date no later than 135 days prior
        to
        the date of the prospectus or other offering document in which the Static
        Pool
        Information is to be included or incorporated by reference. The Static Pool
        Information shall be provided in an electronic format that provides a permanent
        record of the information provided, such as a portable document format (pdf)
        file, or other such electronic format reasonably required by the Seller or
        the
        Depositor, as applicable.

      
        
          
          

        

        
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      Promptly
        following notice or discovery of a material error in Static Pool Information
        provided pursuant to the immediately preceding paragraph (including an omission
        to include therein information required to be provided pursuant to such
        paragraph), the Servicer shall provide corrected Static Pool Information
        to the
        Seller or the Depositor, as applicable, in the same format in which Static
        Pool
        Information was previously provided to such party by the Servicer.

       

      If
        so
        requested by the Seller or the Depositor, the Servicer shall provide (or,
        as
        applicable, cause each Third-Party Originator to provide), at the expense
        of the
        requesting party (to the extent of any additional incremental expense associated
        with delivery pursuant to this Agreement), such agreed-upon procedures letters
        of certified public accountants reasonably acceptable to the Seller or
        Depositor, as applicable, pertaining to Static Pool Information relating
        to
        prior securitized pools for securitizations closed on or after January 1,
        2006
        or, in the case of Static Pool Information with respect to the Servicer’s or
        Third-Party Originator’s originations or purchases, to calendar months
        commencing January 1, 2006, as the Seller or the Depositor shall reasonably
        request. Such letters shall be addressed to and be for the benefit of such
        parties as the Seller or the Depositor shall designate, which may include,
        by
        way of example, the Seller as sponsor, the Depositor and any broker dealer
        acting as underwriter, placement agent or initial purchaser with respect
        to the
        transactions contemplated by this Agreement. Any such statement or letter
        may
        take the form of a standard, generally applicable document accompanied by
        a
        reliance letter authorizing reliance by the addressees designated by the
        Seller
        or the Depositor.

       

      (c) If
        so
        requested by the Seller or the Depositor, the Servicer shall provide such
        information regarding the Servicer, as servicer of the Mortgage Loans, and
        each
        Sub-Servicer (each of the Servicer and each Sub-Servicer, for purposes of
        this
        paragraph, a “Servicer”),
        as is
        requested for the purpose of compliance with Item 1108 of Regulation AB.
        Such
        information shall include, at a minimum:

       

      (A) the
        Servicer’s form of organization;

       

      (B) a
        description of how long the Servicer has been servicing residential mortgage
        loans; a general discussion of the Servicer’s experience in servicing assets of
        any type as well as a more detailed discussion of the Servicer’s experience in,
        and procedures for, the servicing function it will perform under this Agreement;
        information regarding the size, composition and growth of the Servicer’s
        portfolio of residential mortgage loans of a type similar to the Mortgage
        Loans
        and information on factors related to the Servicer that may be material,
        in the
        good faith judgment of the Seller or the Depositor, to any analysis of the
        servicing of the Mortgage Loans or the related asset-backed securities, as
        applicable, including, without limitation:

      
        
          
          

        

        
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      (i) whether
        any prior securitizations of mortgage loans of a type similar to the Mortgage
        Loans involving the Servicer have defaulted or experienced an early amortization
        or other performance triggering event because of servicing during the three-year
        period immediately preceding the Closing Date;

       

      (ii) the
        extent of outsourcing the Servicer utilizes;

       

      (iii) whether
        there has been previous disclosure of material noncompliance with the applicable
        servicing criteria with respect to other securitizations of residential mortgage
        loans involving the Servicer as a servicer during the three-year period
        immediately preceding the Closing Date;

       

      (iv) whether
        the Servicer has been terminated as servicer in a residential mortgage loan
        securitization, either due to a servicing default or to application of a
        servicing performance test or trigger; and

       

      (v) such
        other information as the Seller or the Depositor may reasonably request for
        the
        purpose of compliance with Item 1108(b)(2) and Item 1108(c) of Regulation
        AB;

       

      (C) a
        description of any material changes during the three-year period immediately
        preceding the Closing Date to the Servicer’s policies or procedures with respect
        to the servicing function it will perform under this Agreement for mortgage
        loans of a type similar to the Mortgage Loans;

       

      (D) information
        regarding the Servicer’s financial condition, to the extent that there is a
        material risk that an adverse financial event or circumstance involving the
        Servicer could have a material adverse effect on the performance by the Servicer
        of its servicing obligations under this Agreement;

       

      (E) a
        statement by an authorized officer of the Servicer to the effect that the
        Servicer has made all advances required to be made on residential mortgage
        loans
        serviced by it during such period, or, if such statement would not be accurate,
        information regarding the percentage and type of advances not made as required,
        and the reasons for such failure to advance;

       

      (F) a
        description of the Servicer’s processes and procedures designed to address any
        special or unique factors involved in servicing loans of a similar type as
        the
        Mortgage Loans;

       

      (G) a
        description of the Servicer’s processes for handling delinquencies, losses,
        bankruptcies and recoveries, such as through liquidation of mortgaged
        properties, sale of defaulted mortgage loans or workouts; and

      
        
          
          

        

        
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      (H) information
        as to how the Servicer defines or determines delinquencies and charge-offs,
        including the effect of any grace period, re-aging, restructuring, partial
        payments considered current or other practices with respect to delinquency
        and
        loss experience.

       

      (d) For
        the
        purpose of satisfying its reporting obligation under the Exchange Act with
        respect to any class of Certificates for so long as the Depositor is required
        to
        file reports under the Exchange Act with respect to the Certificates, the
        Servicer shall (or shall cause each Sub-Servicer and Third-Party Originator
        to)
        (i) notify the Seller and the Depositor in writing of (A) any litigation
        or
        governmental proceedings pending against the Servicer, any Sub-Servicer or
        any
        Third-Party Originator that would be material to Certificateholders and (B)
        any
        affiliations or relationships of the type required to be disclosed under
        Item
        1119 of Regulation AB that develop following the Closing Date between the
        Servicer, any Sub-Servicer or any Third-Party Originator and any of the parties
        specified in clause (D) of paragraph (a) of this Section (and any other parties
        identified in writing by the requesting party) with respect to the issuing
        of
        the Certificates, and (ii) provide to the Seller and the Depositor a description
        of such proceedings, affiliations or relationships.

       

      (e) As
        a
        condition to the succession to the Servicer or any Sub-Servicer as servicer
        or
        subservicer of at least 10% of the Mortgage Loans under this Agreement by
        any
        Person (i) into which the Servicer or such Sub-Servicer may be merged or
        consolidated, or (ii) which may be appointed as a successor to the Servicer
        or
        any Sub-Servicer, the Servicer shall provide to the Seller and the Depositor,
        at
        least 15 calendar days prior to the effective date of such succession or
        appointment, (x) written notice to the Seller and the Depositor of such
        succession or appointment and (y) in writing and in form and substance
        reasonably satisfactory to the Seller and the Depositor, all information
        reasonably requested by the Seller or the Depositor in order to comply with
        its
        reporting obligation under Item 6.02 of Form 8-K with respect to any class
        of
        Certificates.

       

      (f) In
        addition to such information as the Servicer, as servicer, is obligated to
        provide pursuant to other provisions of this Agreement, if so requested by
        the
        Seller or the Depositor, the Servicer shall provide such information regarding
        the performance or servicing of the Mortgage Loans as is reasonably required
        to
        facilitate preparation of distribution reports in accordance with Item 1121
        of
        Regulation AB. Such information shall be provided concurrently with the monthly
        reports otherwise required to be delivered by the Trustee pursuant to
Section
        4.02
        of this
        Agreement, commencing with the first such report due not less than ten Business
        Days following such request.

       

      SECTION
        12.04  Servicer
        Compliance Statement.
        The
        Servicer shall deliver on or before March 15, commencing in 2008, to the
        Seller,
        the Trustee and the Depositor a statement of compliance addressed to the
        Seller
        and the Depositor and signed by an authorized officer of the Servicer, to
        the
        effect that (i) a review of the Servicer’s activities during the immediately
        preceding calendar year (or applicable portion thereof) and of its performance
        under this Agreement during such period has been made under such officer’s
        supervision, and (ii) to the best of such officers’ knowledge, based on such
        review, the Servicer has fulfilled all of its obligations under this Agreement
        in all material respects throughout such calendar year (or applicable portion
        thereof) or, if there has been a failure to fulfill any such obligation in
        any
        material respect, specifically identifying each such failure known to such
        officer and the nature and the status thereof.

      
        
          
          

        

        
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      SECTION
        12.05  Report
        on Assessment of Compliance and Attestation.
        (a) The
        Servicer shall on or before March 15, commencing in 2008:

       

      (i) deliver
        to the Seller, the Trustee and the Depositor a report regarding the Servicer’s
        assessment of compliance with the Servicing Criteria during the immediately
        preceding calendar year, as required under Rules 13a-18 and 15d-18 of the
        Exchange Act and Item 1122 of Regulation AB. Such report shall be signed
        by an
        authorized officer of the Servicer, and shall address each of the Servicing
        Criteria specified on a certification substantially in the form of Exhibit
        J
        hereto delivered to the Seller concurrently with the execution of this
        Agreement;

       

      (ii) deliver
        to the Seller, the Trustee and the Depositor a report of a registered public
        accounting firm that attests to, and reports on, the assessment of compliance
        made by the Servicer and delivered pursuant to the preceding paragraph. Such
        attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of
        Regulation S-X under the Securities Act and the Exchange Act; immediately
        upon
        receipt of such report, the Servicer shall, at its own expense, furnish a
        copy
        of such report to each Rating Agency. Copies of such statement shall be provided
        by the Trustee to any Certificateholder upon request, provided that such
        statement is delivered by the Servicer to the Trustee;

       

      (iii) cause
        each Sub-Servicer, and each Subcontractor determined by the Servicer pursuant
        to
        Section 12.06(b) to be “participating in the servicing function” within the
        meaning of Item 1122 of Regulation AB, to deliver to the Seller, the Trustee
        and
        the Depositor an assessment of compliance and accountants’ attestation as and
        when provided in paragraphs (a) and (b) of this Section; and

       

      (iv) not
        later
        than March 1 of the calendar year in which such certification is to be
        delivered, deliver to the Seller and the Depositor a backup certification
        in the
        form attached hereto as Exhibit
        I-1.

       

      The
        Servicer acknowledges that the parties identified in clause
        (a)(iv)
        above
        may rely on the certification provided by the Servicer pursuant to such clause
        in signing a Sarbanes Certification and filing such with the Commission.
        Neither
        the Seller nor the Depositor will request delivery of a certification under
        clause
        (a)(iv)
        above
        unless the Depositor is required under the Exchange Act to file an annual
        report
        on Form 10-K with respect to the Certificates.

       

      (b) Each
        assessment of compliance provided by a Sub-Servicer pursuant to Section
        12.05(a)(i)
        shall
        address each of the Servicing Criteria specified on a certification
        substantially in the form of Exhibit
        J
        hereto
        delivered to the Seller concurrently with the execution of this Agreement
        or, in
        the case of a Sub-Servicer subsequently appointed as such, on or prior to
        the
        date of such appointment. An assessment of compliance provided by a
        Subcontractor pursuant to Section
        12.05(a)(iii)
        need not
        address any elements of the Servicing Criteria other than those specified
        by the
        Servicer pursuant to Section
        12.06.

      
        
          
          

        

        
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      SECTION
        12.06  Use
        of
        Sub-Servicers and Subcontractors.
        The
        Servicer shall not hire or otherwise utilize the services of any Sub-Servicer
        to
        fulfill any of the obligations of the Servicer as servicer under this Agreement
        unless the Servicer complies with the provisions of paragraph
        (a)
        of this
        Section. The Servicer shall not hire or otherwise utilize the services of
        any
        Subcontractor, and shall not permit any Sub-Servicer to hire or otherwise
        utilize the services of any Subcontractor, to fulfill any of the obligations
        of
        the Servicer as servicer under this Agreement unless the Servicer complies
        with
        the provisions of paragraph
        (b)
        of this
        Section.

       

      (a) Subject
        to Section 14.01(d), it shall not be necessary for the Servicer to seek the
        consent of the Seller or the Depositor to the utilization of any Sub-Servicer.
        The Servicer shall cause any Sub-Servicer used by the Servicer (or by any
        Sub-Servicer) for the benefit of the Seller and the Depositor to comply with
        the
        provisions of this Section and with Sections 12.02, 12.03(c) and (e), 12.04,
        12.05 and 12.07 of this Agreement to the same extent as if such Sub-Servicer
        were the Servicer, and to provide the information required with respect to
        such
        Sub-Servicer under Section 12.03(d) of this Agreement. The Servicer shall
        be
        responsible for obtaining from each Sub-Servicer and delivering to the Seller
        and the Depositor any servicer compliance statement required to be delivered
        by
        such Sub-Servicer under Section 12.04, any assessment of compliance and
        attestation required to be delivered by such Sub-Servicer under Section 12.05
        and any certification required to be delivered to the Depositor as and when
        required to be delivered under Section 12.05.

       

      (b) It
        shall
        not be necessary for the Servicer to seek the consent of the Seller or the
        Depositor to the utilization of any Subcontractor. The Servicer shall promptly
        upon request provide to the Seller and the Depositor (or any designee of
        the
        Depositor, such as a master servicer or administrator) a written description
        (in
        form and substance satisfactory to the Seller and the Depositor) of the role
        and
        function of each Subcontractor utilized by the Servicer or any Sub-Servicer,
        specifying (i) the identity of each such Subcontractor, (ii) which (if any)
        of
        such Subcontractors are “participating in the servicing function” within the
        meaning of Item 1122 of Regulation AB, and (iii) which elements of the Servicing
        Criteria will be addressed in assessments of compliance provided by each
        Subcontractor identified pursuant to clause
        (ii)
        of this
        paragraph.

       

      As
        a
        condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB, the Servicer shall cause any such Subcontractor used by the
        Servicer (or by any Sub-Servicer) for the benefit of the Seller and the
        Depositor to comply with the provisions of Sections
        12.05
        and
12.07
        of this
        Agreement to the same extent as if such Subcontractor were the Servicer
        performing the servicing functions of the Subcontractor. The Servicer shall
        be
        responsible for obtaining from each Subcontractor and delivering to the Seller
        and the Depositor any assessment of compliance and attestation required to
        be
        delivered by such Subcontractor under Section
        12.05,
        in each
        case as and when required to be delivered.

      
        
          
          

        

        
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      SECTION
        12.07  Indemnification;
        Remedies.
        (a) The
        Servicer shall indemnify the Trustee, the Depositor, the Seller, each affiliate
        of the Seller, and each of the following parties participating in the
        transactions contemplated by this Agreement: each sponsor and issuing entity;
        each Person responsible for the preparation, execution or filing of any report
        required to be filed with the Commission with respect to such transactions,
        or
        for execution of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d)
        under the Exchange Act with respect to such transactions; each broker dealer
        acting as underwriter, placement agent or initial purchaser, each Person
        who
        controls any of such parties or the Depositor (within the meaning of Section
        15
        of the Securities Act and Section 20 of the Exchange Act); and the respective
        present and former directors, officers, employees and agents of each of the
        foregoing and of the Depositor, and shall hold each of them harmless from
        and
        against any losses, damages, penalties, fines, forfeitures, reasonable legal
        fees and expenses and related costs, judgments, and any other costs, fees
        and
        expenses (other than consequential or punitive damages) that any of them
        may
        sustain arising out of or based upon:

       

      (i) (A)
        any
        untrue statement of a material fact contained or alleged to be contained
        in any
        information, report, certification, accountants’ letter or other material
        provided in written or electronic form under this Article
        XII
        by or on
        behalf of the Servicer, or provided under this Article
        XII
        by or on
        behalf of any Sub-Servicer, Subcontractor or Third-Party Originator
        (collectively, the “Servicer
        Information”),
        or
        (B) the omission or alleged omission to state in the Servicer Information a
        material fact required to be stated in the Servicer Information or necessary
        in
        order to make the statements therein, in the light of the circumstances under
        which they were made, not misleading; provided,
        by way
        of clarification, that clause
        (B)
        of this
        paragraph shall be construed solely by reference to the Servicer Information
        and
        not to any other information communicated in connection with a sale or purchase
        of securities, without regard to whether the Servicer Information or any
        portion
        thereof is presented together with or separately from such other information;
        

       

      (ii) any
        failure by the Servicer, any Sub-Servicer, any Subcontractor or any Third-Party
        Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Article
        XII,
        including any failure by the Servicer to identify pursuant to Section
        12.06(b)
        any
        Subcontractor “participating in the servicing function” within the meaning of
        Item 1122 of Regulation AB; or

       

      (iii) any
        breach by the Servicer of a representation or warranty set forth in Section
        12.02(a)
        or in a
        writing furnished pursuant to Section
        12.02(b)
        and made
        as of a date prior to the Closing Date, to the extent that such breach is
        not
        cured by such closing date, or any breach by the Servicer of a representation
        or
        warranty in a writing furnished pursuant to Section
        12.02(b)
        to the
        extent made as of a date subsequent to such closing date.

       

      In
        the
        case of any failure of performance described in clause
        (a)(ii)
        of this
        Section, the Servicer shall promptly reimburse the Seller, the Depositor,
        as
        applicable, and each Person responsible for the preparation, execution or
        filing
        of any report required to be filed with the Commission with respect to the
        transactions contemplated hereunder, or for execution of a certification
        pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act with
        respect
        to the transactions contemplated by this Agreement, for all costs reasonably
        incurred by each such party in order to obtain the information, report,
        certification, accountants’ letter or other material not delivered as required
        by the Servicer, any Sub-Servicer, any Subcontractor or any Third-Party
        Originator.

      
        
          
          

        

        
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      (b) (i)
        Any
        failure by the Servicer, any Sub-Servicer, any Subcontractor or any Third-Party
        Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Article
        XII,
        or any
        breach by the Servicer of a representation or warranty set forth in Section
        12.02(a)
        or in a
        writing furnished pursuant to Section
        12.02(b)
        and made
        as of a date prior to the Closing Date, to the extent that such breach is
        not
        cured by such closing date, or any breach by the Servicer of a representation
        or
        warranty in a writing furnished pursuant to Section
        12.02(b)
        to the
        extent made as of a date subsequent to such closing date, shall, except as
        provided in clause
        (ii)
        of this
        paragraph, immediately and automatically, without notice or grace period,
        constitute an Event of Default with respect to the Servicer under this Agreement
        and shall entitle the Depositor, in its sole discretion, to terminate the
        rights
        and obligations of the Servicer as servicer under this Agreement without
        payment
        (notwithstanding anything in this Agreement to the contrary) of any compensation
        to the Servicer; provided
        that to
        the extent that any provision of this Agreement expressly provides for the
        survival of certain rights or obligations following termination of the Servicer
        as servicer, such provision shall be given effect. 

       

      (ii) Any
        failure by the Servicer, any Sub-Servicer or any Subcontractor to deliver
        any
        information, report, certification or accountants’ letter when and as required
        under Section
        12.04
        or
12.05,
        including (except as provided below) any failure by the Servicer to identify
        pursuant to Section
        12.06(b)
        any
        Subcontractor “participating in the servicing function” within the meaning of
        Item 1122 of Regulation AB, which continues unremedied for ten calendar days
        after the date on which such information, report, certification or accountants’
letter was required to be delivered shall constitute an Event of Default
        with
        respect to the Servicer under this Agreement, and shall entitle Depositor,
        as
        applicable, in its sole discretion to terminate the rights and obligations
        of
        the Servicer as servicer under this Agreement without payment (notwithstanding
        anything in this Agreement to the contrary) of any compensation to the Servicer;
provided
        that to
        the extent that any provision of this Agreement expressly provides for the
        survival of certain rights or obligations following termination of the Servicer
        as servicer, such provision shall be given effect.

       

      Neither
        the Seller nor the Depositor shall be entitled to terminate the rights and
        obligations of the Servicer pursuant to this subparagraph
        (b)(ii)
        if a
        failure of the Servicer to identify a Subcontractor “participating in the
        servicing function” within the meaning of Item 1122 of Regulation AB was
        attributable solely to the role or functions of such Subcontractor with respect
        to mortgage loans other than the Mortgage Loans.

       

      (iii) The
        Servicer shall promptly reimburse the Seller (or any designee of the Seller,
        such as a master servicer) and the Depositor, as applicable, for all reasonable
        expenses incurred by the Seller (or such designee) or the Depositor, as such
        are
        incurred, in connection with the termination of the Servicer as servicer
        and the
        transfer of servicing of the Mortgage Loans to a successor servicer. The
        provisions of this paragraph shall not limit whatever rights the Seller or
        the
        Depositor may have under other provisions of this Agreement or otherwise,
        whether in equity or at law, such as an action for damages, specific performance
        or injunctive relief.

      
        
          
          

        

        
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      ARTICLE
        XIII 

       

      MISCELLANEOUS
        PROVISIONS

       

      SECTION
        13.01  Amendment.
        This
        Agreement may be amended from time to time by the Depositor, the Servicer
        and
        the Trustee without the consent of any of the Certificateholders, (i) to
        cure
        any ambiguity or defect, (ii) to correct, modify or supplement any provisions
        herein (including to give effect to the expectations of Certificateholders),
        (iii) to amend the provisions of Section
        4.06,
        (iv) to
        change the timing and/or nature of deposits into the Custodial Account or
        the
        Certificate Account or to change the name in which the Custodial Account
        is
        maintained, provided
        that (A)
        the Servicer Remittance Date shall in no event be later than the related
        Distribution Date, (B) such change shall not, as evidenced by an Opinion
        of
        Counsel, adversely affect in any material respect the interests of any
        Certificateholder and (C) such change shall not result in a reduction of
        the
        rating assigned to any Class of Certificates below the lower of the then-current
        rating or the rating assigned to such Certificates as of the Closing Date,
        as
        evidenced by a letter from each Rating Agency to such effect, (v) to modify,
        eliminate or add to any of its provisions to such extent as shall be necessary
        or desirable to maintain the qualification of any Trust REMIC created hereunder
        as a Trust REMIC at all times that any Certificate is outstanding or to avoid
        or
        minimize the risk of the imposition of any tax on the Trust Fund pursuant
        to the
        Code that would be a claim against the Trust Fund, provided
        that the
        Trustee has received an Opinion of Counsel to the effect that (A) 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 will not
        adversely affect in any material respect the interests of any Certificateholder,
        (vi) such amendment is made to conform the terms of this Agreement to the
        terms
        described in the Prospectus dated October 4, 2006 together with the Prospectus
        Supplement dated January 22, 2007, or (vii) to make any other provisions
        with
        respect to matters or questions arising under this Agreement which shall
        not be
        inconsistent with the provisions of this Agreement, provided
        that any such action pursuant to clauses (i), (ii), (iii), (vi) or
        (vii),
        as
        evidenced by either (a) an Opinion of Counsel delivered to the Trustee that
        such action will not adversely affect in any material respect the interests
        of
        any Certificateholder or (b) written notice to the Depositor, the Servicer
        and the Trustee from the Rating Agencies that such action will not result
        in the
        reduction or withdrawal of the rating of any outstanding Class of Certificates
        with respect to which it is a Rating Agency). No amendment shall be deemed
        to
        adversely affect in any material respect the interests of any Certificateholder
        who shall have consented thereto, and no Opinion of Counsel or Rating Agency
        confirmation shall be required to address the effect of any such amendment
        on
        any such consenting Certificateholder. Notwithstanding the foregoing, neither
        an
        Opinion of Counsel nor written notice to the Depositor, the Servicer and
        the
        Trustee from the Rating Agencies will be required in connection with an
        amendment to the provisions of Section
        4.06.

      
        
          
          

        

        
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      This
        Agreement may also be amended from time to time by the Depositor, the Servicer
        and the Trustee with the consent of the Holders of Certificates entitled
        to at
        least 66% of the Voting Rights for the purpose of adding any provisions to
        or
        changing in any manner or eliminating any of the provisions of this Agreement
        or
        of modifying in any manner the rights of the Holders of Certificates;
provided,
        however,
        that no
        such amendment shall (i) reduce in any manner the amount of, or delay the
        timing
        of, payments received on Mortgage Loans which are required to be distributed
        on
        any Certificate without the consent of the Holder of such Certificate, (ii)
        adversely affect in any material respect the interests of the Holders of
        any
        Class of Certificates (as evidenced by either (a) an Opinion of Counsel
        delivered to the Trustee or (b) written notice to the Depositor, the
        Servicer and the Trustee from the Rating Agencies that such action will not
        result in the reduction or withdrawal of the rating of any outstanding Class
        of
        Certificates with respect to which it is a Rating Agency) in a manner, other
        than as described in (i) or (iii) modify the consents required by the
        immediately preceding clauses
        (i)
        and
(ii)
        without
        the consent of the Holders of all Certificates then outstanding. Notwithstanding
        any other provision of this Agreement, for purposes of the giving or withholding
        of consents pursuant to this Section
        13.01,
        Certificates registered in the name of the Depositor or the Servicer or any
        Affiliate thereof shall be entitled to Voting Rights with respect to matters
        affecting such Certificates.

       

      Notwithstanding
        any contrary provision of this Agreement, the Trustee shall not consent to
        any
        amendment to this Agreement unless it shall have first received an Opinion
        of
        Counsel to the effect that such amendment (i) will not result in the imposition
        of any tax on any Trust REMIC pursuant to the REMIC Provisions or cause any
        Trust REMIC to fail to qualify as a REMIC at any time that any Certificates
        are
        outstanding and (ii) is authorized or permitted hereunder. Notwithstanding
        any
        of the other provisions of this Section 13.01,
        none of
        the Depositor, the Servicer or the Trustee shall enter into any amendment
        to
Section 4.07
        or
Section 4.01(a)(4)(v)
        of this
        Agreement without the prior written consent of the Swap
        Counterparty.

       

      Promptly
        after the execution of any such amendment the Trustee shall furnish a copy
        of
        such amendment to each Certificateholder and the Swap Counterparty.

       

      It
        shall
        not be necessary for the consent of Certificateholders under this Section
        13.01
        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 regulations
        as
        the Trustee may prescribe.

       

      The
        cost
        of any Opinion of Counsel to be delivered pursuant to this Section
        13.01
        shall be
        borne by the Person seeking the related amendment, but in no event shall
        such
        Opinion of Counsel be an expense of the Trustee.

       

      The
        Trustee may, but shall not be obligated to enter into any amendment pursuant
        to
        this Section that affects its rights, duties and immunities under this Agreement
        or otherwise.

      
        
          
          

        

        
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      Notwithstanding
        any of the other provisions of this Section
        13.01,
        none of
        the Depositor, the Servicer and the Trustee shall enter into any amendment
        to
Section
        3.11(b),
        Section
        4.07,
        this
Section
        13.01,
        Section
        13.09,
        or
Section
        13.14
        of this
        Agreement which would adversely affect in any material aspect the Swap
        Counterparty’s rights under this Agreement without the prior written consent of
        the Swap Counterparty, which consent shall not be unreasonably
        withheld.

       

      SECTION
        13.02  Recordation
        of Agreement; Counterparts.
        To the
        extent permitted by applicable law, this Agreement is subject to recordation
        in
        all appropriate public offices for real property records in all of the counties
        or other comparable jurisdictions in which any or all of the Mortgaged
        Properties are situated, and in any other appropriate public recording office
        or
        elsewhere. The Servicer shall effect such recordation at the Trust’s expense
        upon the request in writing of a Certificateholder, but only if such direction
        is accompanied by an Opinion of Counsel (provided at the expense of the
        Certificateholder requesting recordation) to the effect that such recordation
        would materially and beneficially affect the interests of the Certificateholders
        or is required by law.

       

      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
        13.03  Limitation
        on Rights of Certificateholders.
        The
        death or incapacity of any Certificateholder shall not operate to terminate
        this
        Agreement or the Trust Fund, nor entitle such Certificateholder’s legal
        representative or heirs to claim an accounting or to take any action or commence
        any proceeding in any court for a petition or winding up of the Trust Fund,
        or
        otherwise affect the rights, obligations and liabilities of the parties hereto
        or any of them.

       

      No
        Certificateholder shall have any right to vote (except as provided herein)
        or in
        any manner otherwise control the operation and management of the Trust Fund,
        or
        the obligations of the parties hereto, nor shall anything herein set forth
        or
        contained in the terms of the Certificates be construed so as to constitute
        the
        Certificateholders from time to time as partners or members of an association;
        nor shall any Certificateholder be under any liability to any third party
        by
        reason of any action taken by the parties to this Agreement pursuant to any
        provision hereof.

       

      No
        Certificateholder shall have any right by virtue or by availing itself of
        any
        provisions of this Agreement to institute any suit, action or proceeding
        in
        equity or at law upon or under or with respect to this Agreement, unless
        such
        Holder previously shall have given to the Trustee a written notice of an
        Event
        of Default and of the continuance thereof, as hereinbefore provided, the
        Holders
        of Certificates evidencing not less than 25% of the Voting Rights evidenced
        by
        the Certificates shall also have made written request to the Trustee to
        institute such action, suit or proceeding in its own name as Trustee hereunder
        and shall have offered to the Trustee such reasonable indemnity as it may
        require against the costs, expenses, and liabilities to be incurred therein
        or
        thereby, and the Trustee for 60 days after its receipt of such notice, request
        and offer of indemnity shall have neglected or refused to institute any such
        action, suit or proceeding; it being understood and intended, and being
        expressly covenanted by each Certificateholder with every other
        Certificateholder and the Trustee that no one or more Holders of Certificates
        shall have any right in any manner whatever by virtue or by availing itself
        or
        themselves of any provisions of this Agreement to affect, disturb or prejudice
        the rights of the Holders of any other of the Certificates, or to obtain
        or seek
        to obtain priority over or preference to any other such Holder or to enforce
        any
        right under this Agreement, except in the manner herein provided and for
        the
        common benefit of all Certificateholders. For the protection and enforcement
        of
        the provisions of this Section
        13.03,
        each
        and every Certificateholder, the Trustee shall be entitled to such relief
        as can
        be given either at law or in equity.

      
        
          
          

        

        
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      SECTION
        13.04  Governing
        Law.
        THIS
        AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE
        LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
        IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
        PARTIES
        HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH
        SUCH
        LAWS WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN
        SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAWS).

       

      SECTION
        13.05  Notices.
        All
        directions, demands and notices hereunder shall be in writing and shall be
        deemed to have been duly given when received if personally delivered at or
        mailed by first class mail, postage prepaid, or by express delivery service
        or
        delivered in any other manner specified herein, to (a) in the case of the
        Depositor, Stanwich Asset Acceptance Company, L.L.C., Seven Greenwich Office
        Park, 599 West Putnam Avenue, Greenwich, Connecticut 06830, Attention:
        President, or such other address or telecopy number as may hereafter be
        furnished to the Servicer and the Trustee in writing by the Depositor, (b)
        in
        the case of the Servicer, Residential Funding Company, LLC as Servicer, 2255
        North Ontario Street, Burbank, California 91504-3120, Attention: Bond
        Administration, with a copy to Homecomings Financial LLC, 2711 N. Haskell
        Avenue, Suite 900, Dallas, Texas 75204, Attention: Nancy Marks, or such other
        address or telecopy number as may hereafter be furnished to the Trustee and
        the
        Depositor in writing by the Servicer and (c) in the case of the Trustee,
        at its
        Corporate Trust Office in Columbia, Maryland, or such other address or telecopy
        number as may hereafter be furnished to the Servicer and the Depositor in
        writing by the Trustee. Any notice required or permitted to be given 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 so
        mailed within the time prescribed in this Agreement shall be conclusively
        presumed to have been duly given when mailed, whether or not the
        Certificateholder receives such notice. A copy of any notice required to
        be
        telecopied hereunder also shall be mailed to the appropriate party in the
        manner
        set forth above.

       

      SECTION
        13.06  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.

      
        
          
          

        

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

       

      Any
        material change or amendment to this Agreement;

       

      The
        occurrence of any Servicer Event of Default that has not been cured or
        waived;

       

      The
        resignation or termination of the Servicer or the Trustee;

       

      The
        repurchase or substitution of Mortgage Loans pursuant to or as contemplated
        by
Section 2.03;

       

      The
        final
        payment to the Holders of any Class of Certificates;

       

      Any
        change in the location of the Custodial Account or the Certificate Account;
        and

       

      Any
        event
        that would result in the inability of the Trustee, as successor servicer,
        to
        make advances regarding delinquent Mortgage Loans.

       

      In
        addition, the Trustee shall make available to each Rating Agency copies of
        each
        report to Certificateholders described in Section
        4.02
        and the
        Servicer shall promptly furnish to each Rating Agency copies of the
        following:

       

      Each
        annual statement as to compliance described in Section
        12.05(i);
        and

       

      Each
        annual independent public accountants’ servicing report described in
Section
        12.05(ii).

       

      Any
        such
        notice pursuant to this Section
        13.07
        shall be
        in writing and shall be deemed to have been duly given if personally delivered
        at or mailed by first class mail, postage prepaid, or by express delivery
        service to Fitch Ratings, One State Street Plaza, New, York, New York 10004,
        facsimile number: (212) 344-1986; Moody’s Investors Service, Inc., 99 Church
        Street, New York, New York 10007 and to Standard & Poor’s Ratings Services,
        a division of the McGraw-Hill Companies, Inc., 55 Water Street, New York,
        New
        York 10007 or such other addresses as the Rating Agencies may designate in
        writing to the parties hereto.

       

      SECTION
        13.08  Article
        and Section References.
        All
        article and section references used in this Agreement, unless otherwise
        provided, are to articles and sections in this Agreement.

      
        
          
          

        

        
          156

          
            

          

        

        
          
          

        

      

       

      SECTION
        13.09  Grant
        of Security Interest.
        It is
        the express intent of the parties hereto that the conveyance of the Mortgage
        Loans by the Depositor to the Trustee, be, and be construed as, a sale of
        the
        Mortgage Loans by the Depositor and not a pledge of the Mortgage Loans to
        secure
        a debt or other obligation of the Depositor. However, in the event that,
        notwithstanding the aforementioned intent of the parties, the Mortgage Loans
        are
        held to be property of the Depositor, then, (a) it is the express intent
        of the
        parties that such conveyance be deemed a pledge of the Mortgage Loans by
        the
        Depositor to the Trustee to secure a debt or other obligation of the Depositor
        and (b) (1) this Agreement shall also be deemed to be a security agreement
        within the meaning of Articles 8 and 9 of the Uniform Commercial Code as
        in
        effect from time to time in the State of New York; (2) the conveyance provided
        for in Section
        2.01
        hereof
        shall be deemed to be a grant by the Depositor to the Trustee of a security
        interest in all of the Depositor’s right, title and interest in and to (i) such
        Mortgage Loans and all amounts payable to the holders of the Mortgage Loans
        in
        accordance with the terms thereof and all proceeds of the conversion voluntary
        or involuntary, of the foregoing into cash, instruments, securities or other
        property and Prepayment Charges related thereto 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
        Depositor’s rights with respect to the Mortgage Loans under all insurance
        policies required to be maintained pursuant to this Agreement and any proceeds
        thereof; (iv) the Depositor’s rights under the Mortgage Loan Purchase Agreement
        (including any security interest created thereby); (v) the Custodial Account
        (other than any amounts representing any Servicer Prepayment Charge Payment
        Amount), the Certificate Account (other than any amounts representing any
        Servicer Prepayment Charge Payment Amount) and any REO Account, and such
        assets
        that are deposited therein from time to time and any investments thereof,
        together with any and all income, proceeds and payments with respect thereto;
        and (vi) the Swap Account and all amounts payable pursuant to the Swap
        Agreement in accordance with the terms thereof; (3) the obligations secured
        by
        such security agreement shall be deemed to be all of the Depositor’s obligations
        under this Agreement, including the obligation to provide to the
        Certificateholders the benefits of this Agreement relating to the Mortgage
        Loans
        and the Trust Fund and to provide the Swap Counterparty the benefit of
Section 4.07
        and
4.01(a)(4)(v);
        and (4)
        notifications to persons holding such property, and acknowledgments, receipts
        or
        confirmations from persons holding such property, shall be deemed notifications
        to, or acknowledgments, receipts or confirmations from, financial
        intermediaries, bailees or agents (as applicable) of the Trustee for the
        purpose
        of perfecting such security interest under applicable law. Accordingly, the
        Depositor hereby grants to the Trustee a security interest in the Mortgage
        Loans
        and all other property described in clause
        (2)
        of the
preceding
        sentence,
        for the
        purpose of securing to the Trustee the performance by the Depositor of the
        obligations described in clause
        (3)
        of the
preceding
        sentence.
        Notwithstanding the foregoing, the parties hereto intend the conveyance pursuant
        to Section
        2.01
        to be a
        true, absolute and unconditional sale of the Mortgage Loans and assets
        constituting the Trust Fund by the Depositor to the Trustee.

       

      SECTION
        13.10  Intention
        of Parties.
        It is
        the express intent of the parties hereto that the conveyance of the Mortgage
        Notes, Mortgages, assignments of Mortgages, title insurance policies and
        any
        modifications, extensions and/or assumption agreements and private mortgage
        insurance policies relating to the Mortgage Loans by the Seller to the
        Depositor, and by the Depositor to the Trustee be, and be construed as, an
        absolute sale thereof to the Depositor or the Trustee, as applicable. It
        is,
        further, not the intention of the parties that such conveyance be deemed
        a
        pledge thereof by the Seller to the Depositor, or by the Depositor to the
        Trustee. However, in the event that, notwithstanding the intent of the parties,
        such assets are held to be the property of the Seller or the Depositor, as
        applicable, or if for any other reason the Mortgage Loan Purchase Agreement
        or
        this Agreement is held or deemed to create a security interest in such assets,
        then (i) the Mortgage Loan Purchase Agreement and this Agreement shall each
        be
        deemed to be a security agreement within the meaning of the Uniform Commercial
        Code of the State of New York and (ii) the conveyance provided for in the
        Mortgage Loan Purchase Agreement from the Seller to the Depositor, and the
        conveyance provided for in this Agreement from the Depositor to the Trustee,
        shall be deemed to be an assignment and a grant by the Seller or the Depositor,
        as applicable, for the benefit of the Certificateholders, of a security interest
        in all of the assets that constitute the Trust Fund, whether now owned or
        hereafter acquired.

      
        
          
          

        

        
          157

          
            

          

        

        
          
          

        

      

       

      The
        Depositor for the benefit of the Certificateholders shall, to the extent
        consistent with this Agreement, take such actions as may be necessary to
        ensure
        that, if this Agreement were deemed to create a security interest in the
        assets
        of the Trust Fund, such security interest would be deemed to be a perfected
        security interest of first priority under applicable law and will be maintained
        as such throughout the term of the Agreement.

       

      SECTION
        13.11  Assignment.
        Notwithstanding anything to the contrary contained herein, except as provided
        pursuant to Section
        6.02,
        this
        Agreement may not be assigned by the Servicer or the Depositor.

       

      SECTION
        13.12  Inspection
        and Audit Rights.
        The
        Servicer agrees that, on reasonable prior notice, it will permit any
        representative of the Depositor or the Trustee during the Servicer’s normal
        business hours, to examine all the books of account, records, reports and
        other
        papers of the Servicer relating to the Mortgage Loans, to make copies and
        extracts therefrom, to cause such books to be audited by independent certified
        public accountants selected by the Depositor or the Trustee and to discuss
        its
        affairs, finances and accounts relating to such Mortgage Loans with its
        officers, employees and independent public accountants (and by this provision
        the Servicer hereby authorizes such accountants to discuss with such
        representative such affairs, finances and accounts), all at such reasonable
        times and as often as may be reasonably requested. Any out-of-pocket expense
        incident to the exercise by the Depositor or the Trustee of any right under
        this
Section
        13.12
        shall be
        borne by the party requesting such inspection, subject to such party’s right to
        reimbursement hereunder (in the case of the Trustee, pursuant to Section
        8.05
        hereof).

       

      SECTION
        13.13  Certificates
        Nonassessable and Fully Paid.
        It is
        the intention of the Depositor that Certificateholders shall not be personally
        liable for obligations of the Trust Fund, that the interests in the Trust
        Fund
        represented by the Certificates shall be nonassessable for any reason
        whatsoever, and that the Certificates, upon due authentication thereof by
        the
        Trustee pursuant to this Agreement, are and shall be deemed fully
        paid.

       

      SECTION
        13.14  Third-Party
        Beneficiaries.
        The
        Swap Counterparty is an express third-party beneficiary of this Agreement,
        and
        shall have the right to enforce the provisions of this Agreement.

       

      SECTION
        13.15  Perfection
        Representations.
        The
        Perfection Representations shall be a part of this Agreement for all
        purposes.

       

      SECTION
        13.16  Notice
        to Holder of Class CE Certificate.
        Upon
        actual knowledge by a Servicing Officer of an event which constitutes a Servicer
        Event of Default under Section
        7.01
        of this
        Agreement or gives rise to an indemnity claim under Sections
        3.25,
        8.05(b),
        10.03(b)
        or
14.02(g)
        of this
        Agreement, such Servicing Officer shall promptly (but in no event later than
        two
        Business Days following such knowledge) provide written notice to the Holder
        of
        the Class CE Certificate of such event.

      
        
          
          

        

        
          158

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        XIV 

       

      RIGHTS
        OF
        THE CLASS CE CERTIFICATEHOLDER

       

      SECTION
        14.01  Reports
        and Notices.
        (a) In
        connection with the performance of its duties under this Agreement relating
        to,
        among other things, the collection of Mortgage Loans, the Servicer shall
        provide, or cause an approved Sub-Servicer to provide, to the Class CE
        Certificateholder the following notices and reports in a timely manner and
        using
        the same methodology and calculations used in its standard servicing reports
        to
        the Trustee. The Servicer shall send all such notices and reports to the
        Class
        CE Certificateholder in electronic format unless otherwise specified herein
        or
        agreed to in writing by the Class CE Certificateholder.

       

      (i) The
        Servicer shall, within ten Business Days after each Distribution Date (or
        such
        later period as approved by the Class CE Certificateholder in writing with
        respect to such Distribution Date), commencing in February 2007, provide
        to the
        Class CE Certificateholder a report of each Mortgage Loan in the Trust Fund,
        indicating the information contained in Exhibit
        L
        for the
        Due Period relating to such Distribution Date and to the extent such information
        is reasonably available to the Servicer.

       

      (ii) Within
        ten Business Days after each Distribution Date (or such later period as approved
        by the Class CE Certificateholder in writing with respect to such Distribution
        Date) commencing in February 2007, the Servicer shall provide the Class CE
        Certificateholder with a report listing each Mortgage Loan that has liquidated
        or paid off. Such report shall specify, if applicable and to the extent the
        information is reasonably available to the Servicer: (a) mortgage loan
        number; (b) outstanding Stated Principal Balance of the mortgage loan upon
        its
        liquidation; (c) Realized Loss or gain; (d) Liquidation Proceeds; (e) payoff
        date; (f) Prepayment Charges collected.

       

      (iii) Where
        applicable, the Servicer shall provide the Class CE Certificateholder with
        copies of all primary mortgage insurance claims filed, as well as the actual
        amount paid in respect of any claim. Copies of any primary mortgage insurance
        claims will be provided to the Class CE Certificateholder within ten Business
        Days of their filing with the mortgage insurance company.

       

      (iv) The
        Servicer shall provide the Class CE Certificateholder with a copy of the
        monthly
        reporting to the Trustee, and of any notice submitted to the Trustee regarding
        a
        loan modification. Such notice shall be provided to the Class CE
        Certificateholder simultaneous with its delivery to the Trustee.

       

      (v) On
        a
        monthly basis, the Servicer shall provide the Class CE Certificateholder
        with a
        delinquency report detailing at a minimum the percentages of 30-day, 60-day
        and
        90-day delinquencies in the Servicer’s total portfolio that move into
        foreclosure and the percentage of foreclosed loans the Servicer’s total
        portfolio that remain in foreclosure.

      
        
          
          

        

        
          159

          
            

          

        

        
          
          

        

      

       

      (vi) The
        Servicer shall provide the Class CE Certificateholder with written notice
        at
        least five Business Days in advance of the Servicer’s intention to (i) institute
        foreclosure proceedings, (ii) accept a Short Pay-off, (iii) make any
        modification pursuant to Section
        3.07
        material
        to the terms of the Mortgage Loan, or (iii) obtain a deed-in-lieu of foreclosure
        in respect of any Mortgaged Property.

       

      (b) The
        Servicer shall make its servicing personnel available during their normal
        business hours to respond to reasonable inquiries, either orally or in writing
        by facsimile transmission, express mail, or electronic mail, transmitted
        by the
        Class CE Certificateholder in connection with any Mortgage Loan identified
        in a
        report under subsection
        14.01(a)(i)
        through
        (iv) which has been given to the Class CE Certificateholder; provided that
        the
        Servicer shall only be required to provide information that is reasonably
        accessible to its servicing personnel.

       

      (c) If
        reasonably requested by the Class CE Certificateholder, the Servicer shall
        make
        available to the Class CE Certificateholder access to the underwriting files
        for
        defaulted Mortgage Loans, in original, photocopied or imaged form, to the
        extent
        such files have been provided to the Servicer. The Class CE Certificateholder
        agrees to protect the confidentiality of the documents and information contained
        in underwriting files from all parties other than the Depositor and Trustee,
        and
        agrees not to remove, mark or destroy any of the documents contained
        therein.

       

      (d) With
        respect to all Mortgage Loans which are serviced at any time by the Servicer
        through a Sub-Servicer which has been approved by the Class CE Certificateholder
        pursuant to the next succeeding sentence, the Servicer shall be entitled
        to rely
        for all purposes hereunder, including for purposes of fulfilling its reporting
        obligations under this Section
        14.01,
        on the
        accuracy and completeness of any information provided to it by the applicable
        subservicer. The Servicer shall not allow any Mortgage Loan to be serviced
        by a
        Sub-Servicer without the prior written consent of the Class CE Certificateholder
        to such Sub-Servicer (other than Homecomings Financial LLC, which shall be
        an
        approved Sub-Servicer for purposes of this Agreement) and the Servicer will
        not
        allow its Sub-Servicing Agreement with Homecomings Financial LLC to terminate
        without the prior written consent of the Class CE Certificatholder.

       

      (e) The
        Servicer shall permit the Class CE Certificateholder to conduct an on-site
        review and evaluation of the Servicer’s operations as they relate to the
        Mortgage Loans no more than annually, unless circumstances warrant special
        review. Such review and evaluation will be conducted upon at least 30 days
        written notice to the Servicer by the Class CE Certificateholder, and shall
        be
        conducted at the Class CE Certificateholder’s expense. The review is intended to
        benefit the Servicer, as well as to assist the Class CE Certificateholder
        in
        adjusting its monitoring approach to fit the default procedures in place.
        The
        Class CE Certificateholder will conduct such review and evaluation during
        normal
        business hours and use its best efforts to cause the least practicable
        interruption to the Servicer’s business. During the course of the on-site
        evaluation, the Servicer will make available to the Class CE Certificateholder
        access to the Servicer’s policies and procedures regarding the management and
        liquidation of defaulted Mortgage Loans. The written findings of such review
        and
        evaluation will be presented to the Servicer for review and comment. Other
        than
        a comfort letter to the Depositor summarizing the review and evaluation of
        the
        Servicer, the Class CE Certificateholder will not divulge the written findings
        of such review to any party without the prior written consent of the
        Servicer.

      
        
          
          

        

        
          160

          
            

          

        

        
          
          

        

      

       

      SECTION
        14.02  Class
        CE Certificateholder’s Directions With Respect to Defaulted Mortgage
        Loans.
        (a) All
        parties to this Agreement acknowledge that the Class CE Certificateholder’s
        advice is made in the form of directions, and that the Class CE
        Certificateholder has the right to direct the Servicer in performing its
        duties
        under this Agreement. The Servicer must accept such advice, subject to the
        duties of the Servicer set forth in this Agreement.

       

      (b) The
        Class
        CE Certificateholder may provide the Servicer with advice regarding the
        management of specific defaulted Mortgage Loans. Such advice may be made
        in
        writing, in the form of electronic mail. The advice provided to the Servicer
        may
        be based on observations made in conjunction with the data provided pursuant
        to
        the Section
        14.01
        of this
        Agreement, or in conjunction with the Class CE Certificateholder’s periodic
        review of the Servicer’s operations. The advice may include comparable analysis
        of the performance of the Mortgage Loans in the Trust Fund with similar mortgage
        loans serviced by other mortgage loan servicers. Such advice also may take
        the
        form of benchmark comparisons that identify and interpret the Servicer’s
        strengths and weaknesses relative to similar, unidentified servicers in the
        industry.

       

      (c) In
        all
        cases where the Class CE Certificateholder makes directions to the Servicer,
        the
        Class CE Certificateholder will protect the confidentiality of the Servicer
        and
        other servicers in the industry whose work is monitored by the Class CE
        Certificateholder. Under no circumstances will the Class CE Certificateholder
        divulge any materials confidential of the Servicer, whether a party to this
        Agreement or not, or the details of any Servicer’s proprietary system or
        approaches.

       

      (d) All
        advice offered to the Servicer by the Class CE Certificateholder will be
        kept
        confidential by the Class CE Certificateholder, except as disclosed as a
        finding
        in the Class CE Certificateholder’s review and evaluation of the Servicer, as
        discussed in Section
        13.01(e),
        or in
        reports to the Depositor.

       

      (e) The
        Servicer’s obligations under this Article
        XIV
        shall
        terminate upon the termination of the Trust Fund pursuant to Section
        9.01.

       

      (f) Neither
        the Servicer nor the Class CE Certificateholder nor any of their respective
        directors, officers, employees or agents shall be under any liability for
        any
        action taken or for refraining from the taking of any action in good faith
        pursuant to this Article
        XIV
        or for
        errors in judgment; provided,
        however,
        that
        this provision shall not protect the Servicer or the Class CE Certificateholder
        or any such Person against any liability which would otherwise be imposed
        by
        reason of willful malfeasance or bad faith. The Servicer and the Class CE
        Certificateholder and any director, officer, employee or agent thereof 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.

      
        
          
          

        

        
          161

          
            

          

        

        
          
          

        

      

       

      (g) The
        Servicer or the Class CE Certificateholder, as applicable, (“Indemnitor”)
        shall
        indemnify, defend and hold harmless the other (“Indemnitee”)
        and
        its officers, directors, agents and employees from and against all claims,
        losses, expenses, fees (including attorneys’ and expert witnesses’ fees), costs
        and judgments involving the rights and obligations of this Article XIV
        that may
        be asserted against Indemnitee (a) that result from the acts or omissions
        of the
        Indemnitor (including, without limitation, any advice or directions provided
        pursuant to this Section
        14.02),
        or (b)
        result from third party claims of intellectual property
        infringement.

       

      (h) The
        Class
        CE Certificateholder agrees that all information supplied by or on behalf
        of the
        Servicer shall be used by the Class CE Certificateholder only for the benefit
        of
        the Certificateholders of the Trust Fund. Notwithstanding anything to the
        contrary in this Agreement, the Class CE Certificateholder shall be entitled
        to
        retain all records or other information supplied to Class CE Certificateholder
        pursuant to this Agreement.

       

      

      [Signatures
        follow]

       

    

    
      
        
        

      

      
        162

        
          

        

      

      
        
        

      

    

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

    
      	 	 	 
	 	STANWICH
              ASSET
              ACCEPTANCE COMPANY L.L.C., 
as Depositor
	 
 	 
 	 
 
	 	By:  	/s/ Bruce
              M.
              Rose
	 	
              

              Name:
                Bruce M. Rose

              Title:
                President

            
	 	 

    

     

    
      	 	 	 
	 	
              RESIDENTIAL
                FUNDING COMPANY, LLC,

              as
                Servicer

            
	 
 	 
 	 
 
	 	By:  	/s/ Joseph
              Orning
	 	
              

              Name:
                Joseph Orning

              Title:
                Associate

            
	 	 

    

    
      	 	 	 
	 	WELLS
              FARGO BANK,
              N.A., as Trustee
	 
 	 
 	 
 
	 	By:  	/s/ Darron
              C.
              Woodus
	 	
              

              Name:
                Darron C. Woodus

              Title:
                Assistant Vice President

            
	 	 

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF CONNECTICUT

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF FAIRFIELD 

            	
              )

            
	 	 

    

    On
      the
      25th
      day of
      January, 2007, before me, a notary public in and for said State, personally
      appeared Bruce M. Rose, known to me to be President of Stanwich Asset Acceptance
      Company, L.L.C., one of the entities that executed the within instrument, and
      also known to me to be the person who executed it on behalf of said entity,
      and
      acknowledged to me that such entity executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 	 
	 
 	 
 	 
 
	 	   	/s/
              Katharine Miller 
	 	
              
Notary
              Public
	 	 

    

    [Notarial
      Seal]

     

    
      
        
        

      

      
        165

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF MINNESOTA

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF HENNEPIN

            	
              )

            

    

     

    On
      the
      25th
      day of
      January 2007, before me, a notary public in and for said State, personally
      appeared Joseph Orning, known to me to be an Associate of Residential Funding
      Company, LLC, one of the entities that executed the within instrument, and
      also
      known to me to be the person who executed it on behalf of said entity, and
      acknowledged to me that such entity executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

    
       

      
        	 	 	 
	 
 	 
 	 
 
	 	   	/s/
                Amy
                Sue Olson
	 	
                
Notary
                Public
	 	 

      

    

    [Notarial
      Seal]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF MARYLAND

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF HOWARD

            	
              )

            

    

     

    On
      the
      25th
      day of
      January 2007, before me, a notary public in and for said State, personally
      appeared Darron
      C.
      Woodus, known to me to be an Assistant Vice President
      of Wells
      Fargo Bank, N.A., one of the entities that executed the within instrument,
      and
      also known to me to be the person who executed it on behalf of said entity,
      and
      acknowledged to me that such entity executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

    
      
         

        
          	 	 	 
	 
 	 
 	 
 
	 	   	/s/
                  Kathleen A. Dean
	 	
                  
Notary
                  Public
	 	 

        

      

      [Notarial
        Seal]

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