Document:

Exhibit
      10.3

    

    COMMON
      STOCK PURCHASE AGREEMENT

    

    AGREEMENT
      entered
      into as of the 18th
      day of
      December, 2006, by and between Morlex,
      Inc., a Colorado corporation with an address at c/o Resource Management
      Partners, Inc., 1690 Washington Avenue, Bohemia, NY 11716 (the “Company”) and
      Michelle Kaplan, an individual with an address at 401 East 86th Street, Apt
      3H,
      New York, NY 10028 (the “Purchaser”).

    

    WHEREAS,
      the Purchaser desires to purchase, and the Company desires to sell, an aggregate
      of 75,000 shares (the “Shares”) of the Company’s common stock, par value $.001
      per share (the “Common Stock”) upon the terms and conditions
      hereof.

    

    NOW,
      THEREFORE, in consideration of the premises and the mutual agreements herein
      contained, the Purchaser and the Company hereby agree as follows:

    

    SECTION
      1: SALE OF THE SHARES

    

    1.1
      Sale
      of the Shares.
      Subject
      to the terms and conditions hereof, the Company will sell and deliver to the
      Purchaser and the Purchaser will purchase from the Company, upon the execution
      and delivery hereof, the Shares for a purchase price equal to
      $7,500.

     

    SECTION
      2: CLOSING DATE; DELIVERY

    

    2.1
      Closing
      Date.
      The
      closing of the purchase and sale of the Shares hereunder (the “Closing”) shall
      be held immediately following the execution and delivery of this
      Agreement.

    

    2.2
      Delivery
      at Closing.
      At the
      Closing, the Company will deliver to the Purchaser a stock certificate
      registered in the Purchaser’s name, representing the number of Shares to be
      purchased by Purchaser hereunder, against payment of the purchase price therefor
      as indicated above. 

    

    SECTION
      3: REPRESENTATIONS AND WARRANTIES OF PURCHASER

    

    The
      undersigned Purchaser hereby represents and warrants to the Company as
      follows:

     

    3.1
      Transfer
      of Shares.
      The
      Shares have not been registered under the Securities Act and cannot be sold
      or
      otherwise transferred without an effective registration or an exemption
      therefrom, but may not be sold pursuant to the exemptions provided by Section
      4(1) of the Securities Act or Rule 144 under the Securities Act, in accordance
      with the letter from Richard K. Wulff, Chief
      of
      the Office of Small Business Policy of the Securities and Exchange Commission’s
      Division of Corporation Finance,
      to Ken
      Worm of NASD Regulation, Inc., dated January 21, 2000.

    

    3.2
      Experience.
      The
      undersigned has such knowledge and experience in financial and business matters
      that the undersigned is capable of evaluating the merits and risks of investment
      in the Company and of making an informed investment decision. The undersigned
      has adequate means of providing for the undersigned's current needs and possible
      future contingencies and the undersigned has no need, and anticipates no need
      in
      the foreseeable future, to sell the Shares for which the undersigned subscribes.
      The undersigned is able to bear the economic risks of this investment and,
      consequently, without limiting the generality of the foregoing, the undersigned
      is able to hold the Shares for an indefinite period of time and has sufficient
      net worth to sustain a loss of the undersigned's entire investment in the
      Company in the event such loss should occur. Except as otherwise indicated
      herein, the undersigned is the sole party in interest as to its investment
      in
      the Company, and it is acquiring the Shares solely for investment for the
      undersigned's own account and has no present agreement, understanding or
      arrangement to subdivide, sell, assign, transfer or otherwise dispose of all
      or
      any part of the Shares subscribed for to any other person. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.3
      Investment; Access to Data. The undersigned has carefully reviewed and
      understands the risks of, and other considerations relating to, a purchase
      of
      the Common Stock and an investment in the Company. The undersigned has been
      furnished materials relating to the Company, the private placement of the Common
      Stock or anything else that it has requested and has been afforded the
      opportunity to ask questions and receive answers concerning the terms and
      conditions of the offering and obtain any additional information which the
      Company possesses or can acquire without unreasonable effort or expense.
      Representatives of the Company have answered all inquiries that the undersigned
      has made of them concerning the Company, or any other matters relating to the
      formation and operation of the Company and the offering and sale of the Common
      Stock. The undersigned has not been furnished any offering literature other
      than the materials that the Company may have provided at the request of the
      undersigned; and the undersigned has relied only on such information furnished
      or made available to the undersigned by the Company as described in this
      Section. The undersigned is acquiring the Shares for investment for the
      undersigned's own account, not as a nominee or agent and not with the view
      to,
      or for resale in connection with, any distribution thereof. The undersigned
      acknowledges that the Company is a start-up company with no current operations,
      assets or operating history, which may possibly cause a loss of Purchaser’s
      entire investment in the Company. The undersigned acknowledges significant
      knowledge concerning the Company by virtue of being a director of the
      Company.

    

    3.4
      Authorization.
      (a)
      This Agreement, upon execution and delivery thereof, will be a valid and binding
      obligation of Purchaser, enforceable in accordance with its terms, subject
      to
      applicable bankruptcy, insolvency, reorganization and moratorium laws and other
      laws of general application affecting enforcement of creditors' rights
      generally.

    

    (b)
      The
      execution, delivery and performance by Purchaser of this Agreement and
      compliance therewith and the purchase and sale of the Shares will not result
      in
      a violation of and will not conflict with, or result in a breach of, any of
      the
      terms of, or constitute a default under, any provision of state or Federal
      law
      to which Purchaser is subject, or any mortgage, indenture, agreement,
      instrument, judgment, decree, order, rule or regulation or other restriction
      to
      which the Purchaser is a party or by which the undersigned Purchaser is bound,
      or result in the creation of any mortgage, pledge, lien, encumbrance or charge
      upon any of the properties or assets of Purchaser pursuant to any such
      term.

    

    3.5
      Accredited
      Investor.
      Purchaser is an accredited investor as defined in Rule 501(a) of Regulation
      D
      under the Securities Act of 1933, as amended.

     

    SECTION
      4: MISCELLANEOUS

    

    4.1
      Governing
      Law.
      This
      Agreement shall be governed in all respects by the laws of the State of New
      York, without regard to conflicts of laws principles thereof.

    

    4.2
      Survival.
      The
      terms, conditions and agreements made herein shall survive the Closing.

    

    4.3
      Successors
      and Assigns.
      Except
      as otherwise expressly provided herein, the provisions hereof shall inure to
      the
      benefit of, and be binding upon, the successors, assigns, heirs, executors
      and
      administrators of the parties hereto.

    

    4.4
      Entire
      Agreement; Amendment; Waiver.
      This
      Agreement constitutes the entire and full understanding and agreement between
      the parties with regard to the subject matter hereof. Neither this Agreement
      nor
      any term hereof may be amended, waived, discharged or terminated, except by
      a
      written instrument signed by all the parties hereto.

    

    4.5
      Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      an original, but all of which together, shall constitute one
      instrument.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      undersigned have hereunto set their hands as of the day and year first above
      written.

    

    
      	 	
              MORLEX,
                INC.

            
	 	 	 
	 	
              By: 

            	
              /s/
                Donald
                Barrick                           
                

            
	 	
              Name:
                

            	
              Donald
                Barrick

            
	 	
              Title:
                

            	
              President

            
	 	 	 
	 	 	 
	 	
              PURCHASER

            
	 	 	 
	 	/s/
              Michelle
              Kaplan                                            
              
	
               

            	Michelle
              KaplanACE
      SECURITIES CORP.

    Depositor

     

    COUNTRYWIDE
      HOME LOANS SERVICING LP

    a
      Servicer

    

    WELLS
      FARGO BANK, N.A.

    Master
      Servicer and Securities Administrator

     

    

    HSBC
      BANK
      USA, NATIONAL ASSOCIATION

    Trustee

     

    

    POOLING
      AND SERVICING AGREEMENT

    Dated
      as
      of November 1, 2006

     

    

     

    ACE
      Securities Corp. Home Equity Loan Trust, Series 2006-NC3

    Asset
      Backed Pass-Through Certificates

     

     

     

    
      

      

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF
      CONTENTS

     

    
      	 	 	 
	
              ARTICLE
                I DEFINITIONS

            	
              13

            
	
              SECTION
                1.01.

            	
              Defined
                Terms.

            	
              13

            
	
              SECTION
                1.02.

            	
              Allocation
                of Certain Interest Shortfalls.

            	
              104

            
	 	 	 
	
              ARTICLE
                II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF
                CERTIFICATES

            	
              107

            
	
              SECTION
                2.01.

            	
              Conveyance
                of the Mortgage Loans.

            	
              107

            
	
              SECTION
                2.02.

            	
              Acceptance
                of REMIC I by Trustee.

            	
              108

            
	
              SECTION
                2.03.

            	
              Repurchase
                or Substitution of Mortgage Loans.

            	
              108

            
	
              SECTION
                2.04.

            	
              Representations
                and Warranties of the Master Servicer.

            	
              111

            
	
              SECTION
                2.05.

            	
              Representations,
                Warranties and Covenants of the Servicer.

            	
              113

            
	
              SECTION
                2.06.

            	
              Issuance
                of the REMIC I Regular Interests and the Class R-I
                Interest.

            	
              115

            
	
              SECTION
                2.07.

            	
              Conveyance
                of the REMIC I Regular Interests; Acceptance of REMIC II and REMIC
                III by
                the Trustee.

            	
              115

            
	
              SECTION
                2.08.

            	
              Issuance
                of the Residual Certificates.

            	
              116

            
	
              SECTION
                2.09.

            	
              Establishment
                of the Trust.

            	
              116

            
	
              SECTION
                2.10.

            	
              Purpose
                and Powers of the Trust.

            	
              116

            
	
              SECTION
                2.11.

            	
              Representations
                and Warranties of the Trustee.

            	
              117

            
	 	 	 
	
              ARTICLE
                III ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS;
                ACCOUNTS

            	
              118

            
	
              SECTION
                3.01.

            	
              The
                Servicer to Act as Servicer.

            	
              118

            
	
              SECTION
                3.02.

            	
              Sub-Servicing
                Agreements Between the Servicer and Sub-Servicers.

            	
              121

            
	
              SECTION
                3.03.

            	
              Successor
                Sub-Servicers.

            	
              123

            
	
              SECTION
                3.04.

            	
              No
                Contractual Relationship Between Sub-Servicer, Subcontractor, Master
                Servicer, Trustee or the Certificateholders.

            	
              123

            
	
              SECTION
                3.05.

            	
              Assumption
                or Termination of Sub-Servicing Agreement by Successor
                Servicer.

            	
              123

            
	
              SECTION
                3.06.

            	
              Collection
                of Certain Mortgage Loan Payments.

            	
              124

            
	
              SECTION
                3.07.

            	
              Collection
                of Taxes, Assessments and Similar Items; Servicing
                Accounts.

            	
              124

            
	
              SECTION
                3.08.

            	
              Collection
                Account and Distribution Account.

            	
              125

            
	
              SECTION
                3.09.

            	
              Withdrawals
                from the Collection Account and Distribution Account.

            	
              128

            
	
              SECTION
                3.10.

            	
              Investment
                of Funds in the Investment Accounts.

            	
              130

            
	
              SECTION
                3.11.

            	
              Maintenance
                of Hazard Insurance, Errors and Omissions and Fidelity Coverage and
                Primary Mortgage Insurance.

            	
              132

            
	
              SECTION
                3.12.

            	
              Enforcement
                of Due-on-Sale Clauses; Assumption Agreements.

            	
              134

            
	
              SECTION
                3.13.

            	
              Realization
                Upon Defaulted Mortgage Loans.

            	
              135

            
	
              SECTION
                3.14.

            	
              Trustee
                to Cooperate; Release of Mortgage Files.

            	
              137

            
	
              SECTION
                3.15.

            	
              Servicing
                Compensation.

            	
              138

            
	
              SECTION
                3.16.

            	
              Collection
                Account Statements.

            	
              139

            
	
              SECTION
                3.17.

            	
              Annual
                Statement as to Compliance.

            	
              139

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                3.18.

            	
              Assessments
                of Compliance and Attestation Reports.

            	
              140

            
	
              SECTION
                3.19.

            	
              Annual
                Certification; Indemnification and Remedies; Additional
                Information.

            	
              141

            
	
              SECTION
                3.20.

            	
              Access
                to Certain Documentation.

            	
              145

            
	
              SECTION
                3.21.

            	
              Title,
                Management and Disposition of REO Property.

            	
              145

            
	
              SECTION
                3.22.

            	
              Obligations
                of the Servicer in Respect of Prepayment Interest Shortfalls; Relief
                Act
                Interest Shortfalls.

            	
              148

            
	
              SECTION
                3.23.

            	
              Obligations
                of the Servicer in Respect of Mortgage Rates and Monthly
                Payments.

            	
              149

            
	
              SECTION
                3.24.

            	
              Reserve
                Fund.

            	
              149

            
	
              SECTION
                3.25.

            	
              Advance
                Facility.

            	
              150

            
	
              SECTION
                3.26.

            	
              Indemnification.

            	
              152

            
	
              SECTION
                3.27.

            	
              Additional
                Representations and Warranties.

            	
              153

            
	 	 	 
	
              ARTICLE
                IV ADMINISTRATION AND MASTER SERVICING OF THE MORTGAGE LOANS BY THE
                MASTER
                SERVICER

            	
              154

            
	
              SECTION
                4.01.

            	
              Master
                Servicer.

            	
              154

            
	
              SECTION
                4.02.

            	
              REMIC-Related
                Covenants.

            	
              155

            
	
              SECTION
                4.03.

            	
              Monitoring
                of Servicer.

            	
              155

            
	
              SECTION
                4.04.

            	
              Fidelity
                Bond.

            	
              156

            
	
              SECTION
                4.05.

            	
              Power
                to Act; Procedures.

            	
              156

            
	
              SECTION
                4.06.

            	
              Due-on-Sale
                Clauses; Assumption Agreements.

            	
              157

            
	
              SECTION
                4.07.

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

            	
              158

            
	
              SECTION
                4.08.

            	
              Standard
                Hazard Insurance and Flood Insurance Policies.

            	
              158

            
	
              SECTION
                4.09.

            	
              Presentment
                of Claims and Collection of Proceeds.

            	
              158

            
	
              SECTION
                4.10.

            	
              Maintenance
                of Primary Mortgage Insurance Policies.

            	
              159

            
	
              SECTION
                4.11.

            	
              Trustee
                to Retain Possession of Certain Insurance Policies and
                Documents.

            	
              159

            
	
              SECTION
                4.12.

            	
              Realization
                Upon Defaulted Mortgage Loans.

            	
              160

            
	
              SECTION
                4.13.

            	
              Compensation
                for the Master Servicer.

            	
              160

            
	
              SECTION
                4.14.

            	
              REO
                Property.

            	
              160

            
	
              SECTION
                4.15.

            	
              Master
                Servicer Annual Statement of Compliance.

            	
              161

            
	
              SECTION
                4.16.

            	
              Master
                Servicer Assessments of Compliance.

            	
              161

            
	
              SECTION
                4.17.

            	
              Master
                Servicer Attestation Reports.

            	
              163

            
	
              SECTION
                4.18.

            	
              Annual
                Certification.

            	
              164

            
	
              SECTION
                4.19.

            	
              Obligation
                of the Master Servicer in Respect of Prepayment Interest
                Shortfalls.

            	
              164

            
	
              SECTION
                4.20.

            	
              Prepayment
                Penalty Verification.

            	
              165

            
	 	 	 
	
              ARTICLE
                V PAYMENTS TO CERTIFICATEHOLDERS

            	
              166

            
	
              SECTION
                5.01.

            	
              Distributions.

            	
              166

            
	
              SECTION
                5.02.

            	
              Statements
                to Certificateholders.

            	
              182

            
	
              SECTION
                5.03.

            	
              Servicer
                Reports; P&I Advances.

            	
              186

            
	
              SECTION
                5.04.

            	
              Allocation
                of Realized Losses.

            	
              187

            
	
              SECTION
                5.05.

            	
              Compliance
                with Withholding Requirements.

            	
              190

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                5.06.

            	
              Reports
                Filed with Securities and Exchange Commission.

            	
              191

            
	
              SECTION
                5.07.

            	
              Supplemental
                Interest Trust.

            	
              196

            
	
              SECTION
                5.08.

            	
              Tax
                Treatment of Swap Payments and Swap Termination Payments.

            	
              198

            
	
              SECTION
                5.09.

            	
              Supplemental
                Interest Trust Posted Collateral Account

            	
              199

            
	
              ARTICLE
                VI

            	
              THE
                CERTIFICATES

            	
              201

            
	
              SECTION
                6.01.

            	
              The
                Certificates.

            	
              201

            
	
              SECTION
                6.02.

            	
              Registration
                of Transfer and Exchange of Certificates.

            	
              203

            
	
              SECTION
                6.03.

            	
              Mutilated,
                Destroyed, Lost or Stolen Certificates.

            	
              210

            
	
              SECTION
                6.04.

            	
              Persons
                Deemed Owners.

            	
              210

            
	
              SECTION
                6.05.

            	
              Certain
                Available Information.

            	
              211

            
	 	 	 
	
              ARTICLE
                VII THE DEPOSITOR, THE SERVICER AND THE MASTER SERVICER

            	
              212

            
	
              SECTION
                7.01.

            	
              Liability
                of the Depositor, the Servicer and the Master Servicer.

            	
              212

            
	
              SECTION
                7.02.

            	
              Merger
                or Consolidation of the Depositor, the Servicer or the Master
                Servicer.

            	
              212

            
	
              SECTION
                7.03.

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

            	
              213

            
	
              SECTION
                7.04.

            	
              Limitation
                on Resignation of the Servicer.

            	
              214

            
	
              SECTION
                7.05.

            	
              Limitation
                on Resignation of the Master Servicer.

            	
              215

            
	
              SECTION
                7.06.

            	
              Assignment
                of Master Servicing.

            	
              215

            
	
              SECTION
                7.07.

            	
              Rights
                of the Depositor in Respect of the Servicer and the Master
                Servicer.

            	
              216

            
	
              SECTION
                7.08.

            	
              Duties
                of the Credit Risk Manager.

            	
              217

            
	
              SECTION
                7.09.

            	
              Limitation
                Upon Liability of the Credit Risk Manager.

            	
              217

            
	
              SECTION
                7.10.

            	
              Removal
                of the Credit Risk Manager.

            	
              218

            
	 	 	 
	
              ARTICLE
                VIII DEFAULT

            	
              219

            
	
              SECTION
                8.01.

            	
              Servicer
                Events of Default.

            	
              219

            
	
              SECTION
                8.02.

            	
              Master
                Servicer to Act; Appointment of Successor.

            	
              224

            
	
              SECTION
                8.03.

            	
              Notification
                to Certificateholders.

            	
              225

            
	
              SECTION
                8.04.

            	
              Waiver
                of Servicer Events of Default.

            	
              226

            
	 	 	 
	
              ARTICLE
                IX CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

            	
              227

            
	
              SECTION
                9.01.

            	
              Duties
                of Trustee and Securities Administrator.

            	
              227

            
	
              SECTION
                9.02.

            	
              Certain
                Matters Affecting Trustee and Securities Administrator.

            	
              228

            
	
              SECTION
                9.03.

            	
              Trustee
                and Securities Administrator not Liable for Certificates or Mortgage
                Loans.

            	
              231

            
	
              SECTION
                9.04.

            	
              Trustee
                and Securities Administrator May Own Certificates.

            	
              231

            
	
              SECTION
                9.05.

            	
              Fees
                and Expenses of Trustee, Custodian and Securities
                Administrator.

            	
              231

            
	
              SECTION
                9.06.

            	
              Eligibility
                Requirements for Trustee and Securities Administrator.

            	
              232

            
	
              SECTION
                9.07.

            	
              Resignation
                and Removal of Trustee and Securities Administrator.

            	
              233

            
	
              SECTION
                9.08.

            	
              Successor
                Trustee or Securities Administrator.

            	
              234

            
	
              SECTION
                9.09.

            	
              Merger
                or Consolidation of Trustee or Securities Administrator.

            	
              235

            
	
              SECTION
                9.10.

            	
              Appointment
                of Co-Trustee or Separate Trustee.

            	
              235

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                9.11.

            	
              Appointment
                of Office or Agency.

            	
              236

            
	
              SECTION
                9.12.

            	
              Representations
                and Warranties.

            	
              236

            
	 	 	 
	
              ARTICLE
                X TERMINATION

            	
              238

            
	
              SECTION
                10.01.

            	
              Termination
                Upon Repurchase or Liquidation of All Mortgage Loans.

            	
              238

            
	
              SECTION
                10.02.

            	
              Additional
                Termination Requirements.

            	
              241

            
	 	 	 
	
              ARTICLE
                XI REMIC PROVISIONS

            	
              243

            
	
              SECTION
                11.01.

            	
              REMIC
                Administration.

            	
              243

            
	
              SECTION
                11.02.

            	
              Prohibited
                Transactions and Activities.

            	
              245

            
	
              SECTION
                11.03.

            	
              Indemnification.

            	
              246

            
	 	 	 
	
              ARTICLE
                XII MISCELLANEOUS PROVISIONS

            	
              247

            
	
              SECTION
                12.01.

            	
              Amendment.

            	
              247

            
	
              SECTION
                12.02.

            	
              Recordation
                of Agreement; Counterparts.

            	
              248

            
	
              SECTION
                12.03.

            	
              Limitation
                on Rights of Certificateholders.

            	
              249

            
	
              SECTION
                12.04.

            	
              Governing
                Law.

            	
              249

            
	
              SECTION
                12.05.

            	
              Notices.

            	
              249

            
	
              SECTION
                12.06.

            	
              Severability
                of Provisions.

            	
              250

            
	
              SECTION
                12.07.

            	
              Notice
                to Rating Agencies.

            	
              250

            
	
              SECTION
                12.08.

            	
              Article
                and Section References.

            	
              251

            
	
              SECTION
                12.09.

            	
              Grant
                of Security Interest.

            	
              251

            
	
              SECTION
                12.10.

            	
              Survival
                of Indemnification.

            	
              252

            
	
              SECTION
                12.11.

            	
              Intention
                of the Parties and Interpretation.

            	
              252

            
	
              SECTION
                12.12.

            	
              Indemnification.

            	
              253

            

    

    

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    

    Exhibits

     

    
      	
              Exhibit
                A-1

            	
              Form
                of Class A Certificate

            
	
              Exhibit
                A-2

            	
              Form
                of Class M-[1][2][3][4][5][6][7][8][9] Certificate

            
	
              Exhibit
                A-3

            	
              Form
                of Class M-[10][11] Certificate

            
	
              Exhibit
                A-4

            	
              Form
                of Class CE Certificate

            
	
              Exhibit
                A-5

            	
              Form
                of Class P Certificate

            
	
              Exhibit
                A-6

            	
              Form
                of Class R Certificate

            
	
              Exhibit
                B-1

            	
              Form
                of Transferor Representation Letter and Form of Transferee Representation
                Letter in Connection with Transfer of the Class M-10 Certificates,
                Class
                M-11 Certificates, Class P Certificates, Class CE Certificates and
                Residual Certificates Pursuant to Rule 144A Under the Securities
                Act

            
	
              Exhibit
                B-2

            	
              Form
                of Transferor Representation Letter and Form of Transferee Representation
                Letter in Connection with Transfer of the Class M-10 Certificates,
                Class
                M-11 Certificates, Class P Certificates, Class CE Certificates and
                Residual Certificates Pursuant to Rule 501(a) Under the Securities
                Act

            
	
              Exhibit
                B-3

            	
              Form
                of Transfer Affidavit and Agreement and Form of Transferor Affidavit
                in
                Connection with Transfer of Residual Certificates

            
	
              Exhibit
                C

            	
              Form
                of Back-Up Certification

            
	
              Exhibit
                D

            	
              Form
                of Power of Attorney

            
	
              Exhibit
                E

            	
              Servicing
                Criteria

            
	
              Exhibit
                F

            	
              Mortgage
                Loan Purchase Agreement

            
	
              Exhibit
                G

            	
              Form
                10-D, Form 8-K and Form 10-K Reporting Responsibility

            
	
              Exhibit
                H

            	
              Additional
                Disclosure Notification

            
	
              Exhibit
                I

            	
              Swap
                Agreement

            
	
              Exhibit
                J

            	
              Assignment,
                Assumption and Recognition Agreement

            
	 	 
	
              Schedule
                1

            	
              Mortgage
                Loan Schedule

            
	
              Schedule
                2

            	
              Prepayment
                Charge Schedule

            
	
              Schedule
                3

            	
              Reserved

            
	
              Schedule
                4

            	
              Standard
                File Layout - Delinquency Reporting and Realized Losses and
                Gains

            
	
              Schedule
                5

            	
              Standard
                File Layout - Master Servicing

            
	
              Schedule
                6

            	
              Data
                Requirements of Servicing Advances Incurred Prior to Cut-off
                Date

            

    

    

     

    
      
        
        

      

      
        v

        
          

        

      

      
        
        

      

    

     

    This
      Pooling and Servicing Agreement, is dated and effective as of November 1, 2006,
      among ACE SECURITIES CORP., as Depositor, COUNTRYWIDE HOME LOANS SERVICING
      LP,
      as a Servicer, WELLS FARGO BANK, N.A., Master Servicer and Securities
      Administrator and HSBC BANK USA, NATIONAL ASSOCIATION, 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 of the Trust Fund created hereunder. The Trust Fund 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 Securities Administrator will elect to treat the segregated
      pool of assets consisting of the Mortgage Loans and certain other related assets
      subject to this Agreement (other than the Reserve Fund and, for the avoidance
      of
      doubt, the Supplemental Interest Trust and the Swap 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 will be 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)

              	 
	
                IA

              	 	
                Variable(2)

              	 	 	
                $                                0.10

              	 	
                December 2036

              	 
	
                IA-1-A

              	 	
                Variable(2)

              	 	 	
                $                  3,281,484.45

              	 	
                December 2036

              	 
	
                IA-1-B

              	 	
                Variable(2)

              	 	 	
                $                  3,281,484.45

              	 	
                December 2036

              	 
	
                IA-2-A

              	 	
                Variable(2)

              	 	 	
                $                  3,942,669.22

              	 	
                December 2036

              	 
	
                IA-2-B

              	 	
                Variable(2)

              	 	 	
                $                  3,942,669.22

              	 	
                December 2036

              	 
	
                IA-3-A

              	 	
                Variable(2)

              	 	 	
                $                  4,595,570.25

              	 	
                December 2036

              	 
	
                IA-3-B

              	 	
                Variable(2)

              	 	 	
                $                  4,595,570.25

              	 	
                December 2036

              	 
	
                IA-4-A

              	 	
                Variable(2)

              	 	 	
                $                  5,235,044.42

              	 	
                December 2036

              	 
	
                IA-4-B

              	 	
                Variable(2)

              	 	 	
                $                  5,235,044.42

              	 	
                December 2036

              	 
	
                IA-5-A

              	 	
                Variable(2)

              	 	 	
                $                  5,855,845.80

              	 	
                December 2036

              	 
	
                IA-5-B

              	 	
                Variable(2)

              	 	 	
                $                  5,855,845.80

              	 	
                December 2036

              	 
	
                IA-6-A

              	 	
                Variable(2)

              	 	 	
                $                  6,452,684.72

              	 	
                December 2036

              	 
	
                IA-6-B

              	 	
                Variable(2)

              	 	 	
                $                  6,452,684.72

              	 	
                December 2036

              	 
	
                IA-7-A

              	 	
                Variable(2)

              	 	 	
                $                  7,020,233.34

              	 	
                December 2036

              	 
	
                IA-7-B

              	 	
                Variable(2)

              	 	 	
                $                  7,020,233.34

              	 	
                December 2036

              	 
	
                IA-8-A

              	 	
                Variable(2)

              	 	 	
                $                  7,552,140.84

              	 	
                December 2036

              	 
	
                IA-8-B

              	 	
                Variable(2)

              	 	 	
                $                  7,552,140.84

              	 	
                December 2036

              	 
	
                IA-9-A

              	 	
                Variable(2)

              	 	 	
                $                  8,033,838.42

              	 	
                December 2036

              	 
	
                IA-9-B

              	 	
                Variable(2)

              	 	 	
                $                  8,033,838.42

              	 	
                December 2036

              	 
	
                IA-10-A

              	 	
                Variable(2)

              	 	 	
                $                  8,174,108.68

              	 	
                December 2036

              	 
	
                IA-10-B

              	 	
                Variable(2)

              	 	 	
                $                  8,174,108.68

              	 	
                December 2036

              	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

         

        
          	
                  Designation

                	 	
                  REMIC I

                  Remittance Rate

                	 	
                  Initial

                  Uncertificated Balance

                	 	
                  Latest Possible

                  Maturity Date(1)

                	 
	
                  IA-11-A

                	 	
                  Variable(2)

                	 	 	
                  $                  7,845,052.28

                	 	
                  December 2036

                	 
	
                  IA-11-B

                	 	
                  Variable(2)

                	 	 	
                  $                  7,845,052.28

                	 	
                  December 2036

                	 
	
                  IA-12-A

                	 	
                  Variable(2)

                	 	 	
                  $                  7,523,731.53

                	 	
                  December 2036

                	 
	
                  IA-12-B

                	 	
                  Variable(2)

                	 	 	
                  $                  7,523,731.53

                	 	
                  December 2036

                	 
	
                  IA-13-A

                	 	
                  Variable(2)

                	 	 	
                  $                  7,215,630.39

                	 	
                  December 2036

                	 
	
                  IA-13-B

                	 	
                  Variable(2)

                	 	 	
                  $                  7,215,630.39

                	 	
                  December 2036

                	 
	
                  IA-14-A

                	 	
                  Variable(2)

                	 	 	
                  $                  6,920,202.30

                	 	
                  December 2036

                	 
	
                  IA-14-B

                	 	
                  Variable(2)

                	 	 	
                  $                  6,920,202.30

                	 	
                  December 2036

                	 
	
                  IA-15-A

                	 	
                  Variable(2)

                	 	 	
                  $                  6,636,924.42

                	 	
                  December 2036

                	 
	
                  IA-15-B

                	 	
                  Variable(2)

                	 	 	
                  $                  6,636,924.42

                	 	
                  December 2036

                	 
	
                  IA-16-A

                	 	
                  Variable(2)

                	 	 	
                  $                  6,365,294.77

                	 	
                  December 2036

                	 
	
                  IA-16-B

                	 	
                  Variable(2)

                	 	 	
                  $                  6,365,294.77

                	 	
                  December 2036

                	 
	
                  IA-17-A

                	 	
                  Variable(2)

                	 	 	
                  $                  6,104,831.88

                	 	
                  December 2036

                	 
	
                  IA-17-B

                	 	
                  Variable(2)

                	 	 	
                  $                  6,104,831.88

                	 	
                  December 2036

                	 
	
                  IA-18-A

                	 	
                  Variable(2)

                	 	 	
                  $                  5,855,075.50

                	 	
                  December 2036

                	 
	
                  IA-18-B

                	 	
                  Variable(2)

                	 	 	
                  $                  5,855,075.50

                	 	
                  December 2036

                	 
	
                  IA-19-A

                	 	
                  Variable(2)

                	 	 	
                  $                  5,638,602.07

                	 	
                  December 2036

                	 
	
                  IA-19-B

                	 	
                  Variable(2)

                	 	 	
                  $                  5,638,602.07

                	 	
                  December 2036

                	 
	
                  IA-20-A

                	 	
                  Variable(2)

                	 	 	
                  $                  5,533,528.65

                	 	
                  December 2036

                	 
	
                  IA-20-B

                	 	
                  Variable(2)

                	 	 	
                  $                  5,533,528.65

                	 	
                  December 2036

                	 
	
                  IA-21-A

                	 	
                  Variable(2)

                	 	 	
                  $                  8,556,766.58

                	 	
                  December 2036

                	 
	
                  IA-21-B

                	 	
                  Variable(2)

                	 	 	
                  $                  8,556,766.58

                	 	
                  December 2036

                	 
	
                  IA-22-A

                	 	
                  Variable(2)

                	 	 	
                  $                15,983,603.78

                	 	
                  December 2036

                	 
	
                  IA-22-B

                	 	
                  Variable(2)

                	 	 	
                  $                15,983,603.78

                	 	
                  December 2036

                	 
	
                  IA-23-A

                	 	
                  Variable(2)

                	 	 	
                  $                13,434,717.57

                	 	
                  December 2036

                	 
	
                  IA-23-B

                	 	
                  Variable(2)

                	 	 	
                  $                13,434,717.57

                	 	
                  December 2036

                	 
	
                  IA-24-A

                	 	
                  Variable(2)

                	 	 	
                  $                11,186,031.64

                	 	
                  December 2036

                	 
	
                  IA-24-B

                	 	
                  Variable(2)

                	 	 	
                  $                11,186,031.64

                	 	
                  December 2036

                	 
	
                  IA-25-A

                	 	
                  Variable(2)

                	 	 	
                  $                  7,937,094.66

                	 	
                  December 2036

                	 
	
                  IA-25-B

                	 	
                  Variable(2)

                	 	 	
                  $                  7,937,094.66

                	 	
                  December 2036

                	 
	
                  IA-26-A

                	 	
                  Variable(2)

                	 	 	
                  $                  3,068,771.01

                	 	
                  December 2036

                	 
	
                  IA-26-B

                	 	
                  Variable(2)

                	 	 	
                  $                  3,068,771.01

                	 	
                  December 2036

                	 
	
                  IA-27-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,881,177.08

                	 	
                  December 2036

                	 
	
                  IA-27-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,881,177.08

                	 	
                  December 2036

                	 
	
                  IA-28-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,753,634.88

                	 	
                  December 2036

                	 
	
                  IA-28-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,753,634.88

                	 	
                  December 2036

                	 
	
                  IA-29-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,630,638.28

                	 	
                  December 2036

                	 
	
                  IA-29-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,630,638.28

                	 	
                  December 2036

                	 
	
                  IA-30-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,514,639.17

                	 	
                  December 2036

                	 
	
                  IA-30-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,514,639.17

                	 	
                  December 2036

                	 
	
                  IA-31-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,403,876.22

                	 	
                  December 2036

                	 
	
                  IA-31-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,403,876.22

                	 	
                  December 2036

                	 
	
                  IA-32-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,298,090.54

                	 	
                  December 2036

                	 
	
                  IA-32-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,298,090.54

                	 	
                  December 2036

                	 
	
                  IA-33-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,197,045.10

                	 	
                  December 2036

                	 
	
                  IA-33-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,197,045.10

                	 	
                  December 2036

                	 

        

         

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        
 

        
          	
                  Designation

                	 	
                  REMIC I

                  Remittance Rate

                	 	
                  Initial

                  Uncertificated Balance

                	 	
                  Latest Possible

                  Maturity Date(1)

                	 
	
                  IA-34-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,100,447.86

                	 	
                  December 2036

                	 
	
                  IA-34-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,100,447.86

                	 	
                  December 2036

                	 
	
                  IA-35-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,008,106.88

                	 	
                  December 2036

                	 
	
                  IA-35-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,008,106.88

                	 	
                  December 2036

                	 
	
                  IA-36-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,920,082.89

                	 	
                  December 2036

                	 
	
                  IA-36-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,920,082.89

                	 	
                  December 2036

                	 
	
                  IA-37-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,836,002.08

                	 	
                  December 2036

                	 
	
                  IA-37-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,836,002.08

                	 	
                  December 2036

                	 
	
                  IA-38-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,755,680.43

                	 	
                  December 2036

                	 
	
                  IA-38-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,755,680.43

                	 	
                  December 2036

                	 
	
                  IA-39-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,678,943.82

                	 	
                  December 2036

                	 
	
                  IA-39-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,678,943.82

                	 	
                  December 2036

                	 
	
                  IA-40-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,605,611.24

                	 	
                  December 2036

                	 
	
                  IA-40-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,605,611.24

                	 	
                  December 2036

                	 
	
                  IA-41-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,535,545.75

                	 	
                  December 2036

                	 
	
                  IA-41-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,535,545.75

                	 	
                  December 2036

                	 
	
                  IA-42-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,468,631.46

                	 	
                  December 2036

                	 
	
                  IA-42-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,468,631.46

                	 	
                  December 2036

                	 
	
                  IA-43-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,404,695.92

                	 	
                  December 2036

                	 
	
                  IA-43-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,404,695.92

                	 	
                  December 2036

                	 
	
                  IA-44-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,343,603.88

                	 	
                  December 2036

                	 
	
                  IA-44-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,343,603.88

                	 	
                  December 2036

                	 
	
                  IA-45-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,285,225.82

                	 	
                  December 2036

                	 
	
                  IA-45-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,285,225.82

                	 	
                  December 2036

                	 
	
                  IA-46-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,229,437.24

                	 	
                  December 2036

                	 
	
                  IA-46-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,229,437.24

                	 	
                  December 2036

                	 
	
                  IA-47-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,176,123.92

                	 	
                  December 2036

                	 
	
                  IA-47-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,176,123.92

                	 	
                  December 2036

                	 
	
                  IA-48-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,125,175.00

                	 	
                  December 2036

                	 
	
                  IA-48-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,125,175.00

                	 	
                  December 2036

                	 
	
                  IA-49-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,076,481.81

                	 	
                  December 2036

                	 
	
                  IA-49-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,076,481.81

                	 	
                  December 2036

                	 
	
                  IA-50-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,029,942.24

                	 	
                  December 2036

                	 
	
                  IA-50-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,029,942.24

                	 	
                  December 2036

                	 
	
                  IA-51-A

                	 	
                  Variable(2)

                	 	 	
                  $                     985,459.21

                	 	
                  December 2036

                	 
	
                  IA-51-B

                	 	
                  Variable(2)

                	 	 	
                  $                     985,459.21

                	 	
                  December 2036

                	 
	
                  IA-52-A

                	 	
                  Variable(2)

                	 	 	
                  $                     942,940.38

                	 	
                  December 2036

                	 
	
                  IA-52-B

                	 	
                  Variable(2)

                	 	 	
                  $                     942,940.38

                	 	
                  December 2036

                	 
	
                  IA-53-A

                	 	
                  Variable(2)

                	 	 	
                  $                     902,296.58

                	 	
                  December 2036

                	 
	
                  IA-53-B

                	 	
                  Variable(2)

                	 	 	
                  $                     902,296.58

                	 	
                  December 2036

                	 
	
                  IA-54-A

                	 	
                  Variable(2)

                	 	 	
                  $                     863,444.21

                	 	
                  December 2036

                	 
	
                  IA-54-B

                	 	
                  Variable(2)

                	 	 	
                  $                     863,444.21

                	 	
                  December 2036

                	 
	
                  IA-55-A

                	 	
                  Variable(2)

                	 	 	
                  $                     826,302.01

                	 	
                  December 2036

                	 
	
                  IA-55-B

                	 	
                  Variable(2)

                	 	 	
                  $                     826,302.01

                	 	
                  December 2036

                	 
	
                  IA-56-A

                	 	
                  Variable(2)

                	 	 	
                  $                     790,800.00

                	 	
                  December 2036

                	 
	
                  IA-56-B

                	 	
                  Variable(2)

                	 	 	
                  $                     790,800.00

                	 	
                  December 2036

                	 

        

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        
 

        
          	
                  Designation

                	 	
                  REMIC I

                  Remittance Rate

                	 	
                  Initial

                  Uncertificated Balance

                	 	
                  Latest Possible

                  Maturity Date(1)

                	 
	
                  IA-57-A

                	 	
                  Variable(2)

                	 	 	
                  $                     756,862.49

                	 	
                  December 2036

                	 
	
                  IA-57-B

                	 	
                  Variable(2)

                	 	 	
                  $                     756,862.49

                	 	
                  December 2036

                	 
	
                  IA-58-A

                	 	
                  Variable(2)

                	 	 	
                  $                     725,167.07

                	 	
                  December 2036

                	 
	
                  IA-58-B

                	 	
                  Variable(2)

                	 	 	
                  $                     725,167.07

                	 	
                  December 2036

                	 
	
                  IA-59-A

                	 	
                  Variable(2)

                	 	 	
                  $                     694,281.49

                	 	
                  December 2036

                	 
	
                  IA-59-B

                	 	
                  Variable(2)

                	 	 	
                  $                     694,281.49

                	 	
                  December 2036

                	 
	
                  IA-60-A

                	 	
                  Variable(2)

                	 	 	
                  $                15,875,624.79

                	 	
                  December 2036

                	 
	
                  IA-60-B

                	 	
                  Variable(2)

                	 	 	
                  $                15,875,624.79

                	 	
                  December 2036

                	 
	
                  IB

                	 	
                  Variable(2)

                	 	 	
                  $                                  .08

                	 	
                  December 2036

                	 
	
                  IB-1-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,478,803.65

                	 	
                  December 2036

                	 
	
                  IB-1-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,478,803.65

                	 	
                  December 2036

                	 
	
                  IB-2-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,978,256.63

                	 	
                  December 2036

                	 
	
                  IB-2-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,978,256.63

                	 	
                  December 2036

                	 
	
                  IB-3-A

                	 	
                  Variable(2)

                	 	 	
                  $                  3,471,452.16

                	 	
                  December 2036

                	 
	
                  IB-3-B

                	 	
                  Variable(2)

                	 	 	
                  $                  3,471,452.16

                	 	
                  December 2036

                	 
	
                  IB-4-A

                	 	
                  Variable(2)

                	 	 	
                  $                  3,954,505.16

                	 	
                  December 2036

                	 
	
                  IB-4-B

                	 	
                  Variable(2)

                	 	 	
                  $                  3,954,505.16

                	 	
                  December 2036

                	 
	
                  IB-5-A

                	 	
                  Variable(2)

                	 	 	
                  $                  4,423,452.90

                	 	
                  December 2036

                	 
	
                  IB-5-B

                	 	
                  Variable(2)

                	 	 	
                  $                  4,423,452.90

                	 	
                  December 2036

                	 
	
                  IB-6-A

                	 	
                  Variable(2)

                	 	 	
                  $                  4,874,299.62

                	 	
                  December 2036

                	 
	
                  IB-6-B

                	 	
                  Variable(2)

                	 	 	
                  $                  4,874,299.62

                	 	
                  December 2036

                	 
	
                  IB-7-A

                	 	
                  Variable(2)

                	 	 	
                  $                  5,303,020.71

                	 	
                  December 2036

                	 
	
                  IB-7-B

                	 	
                  Variable(2)

                	 	 	
                  $                  5,303,020.71

                	 	
                  December 2036

                	 
	
                  IB-8-A

                	 	
                  Variable(2)

                	 	 	
                  $                  5,704,818.82

                	 	
                  December 2036

                	 
	
                  IB-8-B

                	 	
                  Variable(2)

                	 	 	
                  $                  5,704,818.82

                	 	
                  December 2036

                	 
	
                  IB-9-A

                	 	
                  Variable(2)

                	 	 	
                  $                  6,068,688.81

                	 	
                  December 2036

                	 
	
                  IB-9-B

                	 	
                  Variable(2)

                	 	 	
                  $                  6,068,688.81

                	 	
                  December 2036

                	 
	
                  IB-10-A

                	 	
                  Variable(2)

                	 	 	
                  $                  6,174,647.70

                	 	
                  December 2036

                	 
	
                  IB-10-B

                	 	
                  Variable(2)

                	 	 	
                  $                  6,174,647.70

                	 	
                  December 2036

                	 
	
                  IB-11-A

                	 	
                  Variable(2)

                	 	 	
                  $                  5,926,081.47

                	 	
                  December 2036

                	 
	
                  IB-11-B

                	 	
                  Variable(2)

                	 	 	
                  $                  5,926,081.47

                	 	
                  December 2036

                	 
	
                  IB-12-A

                	 	
                  Variable(2)

                	 	 	
                  $                  5,683,358.68

                	 	
                  December 2036

                	 
	
                  IB-12-B

                	 	
                  Variable(2)

                	 	 	
                  $                  5,683,358.68

                	 	
                  December 2036

                	 
	
                  IB-13-A

                	 	
                  Variable(2)

                	 	 	
                  $                  5,450,621.87

                	 	
                  December 2036

                	 
	
                  IB-13-B

                	 	
                  Variable(2)

                	 	 	
                  $                  5,450,621.87

                	 	
                  December 2036

                	 
	
                  IB-14-A

                	 	
                  Variable(2)

                	 	 	
                  $                  5,227,458.17

                	 	
                  December 2036

                	 
	
                  IB-14-B

                	 	
                  Variable(2)

                	 	 	
                  $                  5,227,458.17

                	 	
                  December 2036

                	 
	
                  IB-15-A

                	 	
                  Variable(2)

                	 	 	
                  $                  5,013,472.62

                	 	
                  December 2036

                	 
	
                  IB-15-B

                	 	
                  Variable(2)

                	 	 	
                  $                  5,013,472.62

                	 	
                  December 2036

                	 
	
                  IB-16-A

                	 	
                  Variable(2)

                	 	 	
                  $                  4,808,286.04

                	 	
                  December 2036

                	 
	
                  IB-16-B

                	 	
                  Variable(2)

                	 	 	
                  $                  4,808,286.04

                	 	
                  December 2036

                	 
	
                  IB-17-A

                	 	
                  Variable(2)

                	 	 	
                  $                  4,611,534.73

                	 	
                  December 2036

                	 
	
                  IB-17-B

                	 	
                  Variable(2)

                	 	 	
                  $                  4,611,534.73

                	 	
                  December 2036

                	 
	
                  IB-18-A

                	 	
                  Variable(2)

                	 	 	
                  $                  4,422,871.02

                	 	
                  December 2036

                	 
	
                  IB-18-B

                	 	
                  Variable(2)

                	 	 	
                  $                  4,422,871.02

                	 	
                  December 2036

                	 
	
                  IB-19-A

                	 	
                  Variable(2)

                	 	 	
                  $                  4,259,348.95

                	 	
                  December 2036

                	 

        

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        
 

        
          	
                  Designation

                	 	
                  REMIC I

                  Remittance Rate

                	 	
                  Initial

                  Uncertificated Balance

                	 	
                  Latest Possible

                  Maturity Date(1)

                	 
	
                  IB-19-B

                	 	
                  Variable(2)

                	 	 	
                  $                  4,259,348.95

                	 	
                  December 2036

                	 
	
                  IB-20-A

                	 	
                  Variable(2)

                	 	 	
                  $                  4,179,977.45

                	 	
                  December 2036

                	 
	
                  IB-20-B

                	 	
                  Variable(2)

                	 	 	
                  $                  4,179,977.45

                	 	
                  December 2036

                	 
	
                  IB-21-A

                	 	
                  Variable(2)

                	 	 	
                  $                  6,463,704.01

                	 	
                  December 2036

                	 
	
                  IB-21-B

                	 	
                  Variable(2)

                	 	 	
                  $                  6,463,704.01

                	 	
                  December 2036

                	 
	
                  IB-22-A

                	 	
                  Variable(2)

                	 	 	
                  $                12,073,869.59

                	 	
                  December 2036

                	 
	
                  IB-22-B

                	 	
                  Variable(2)

                	 	 	
                  $                12,073,869.59

                	 	
                  December 2036

                	 
	
                  IB-23-A

                	 	
                  Variable(2)

                	 	 	
                  $                10,148,464.02

                	 	
                  December 2036

                	 
	
                  IB-23-B

                	 	
                  Variable(2)

                	 	 	
                  $                10,148,464.02

                	 	
                  December 2036

                	 
	
                  IB-24-A

                	 	
                  Variable(2)

                	 	 	
                  $                  8,449,827.03

                	 	
                  December 2036

                	 
	
                  IB-24-B

                	 	
                  Variable(2)

                	 	 	
                  $                  8,449,827.03

                	 	
                  December 2036

                	 
	
                  IB-25-A

                	 	
                  Variable(2)

                	 	 	
                  $                  5,995,609.45

                	 	
                  December 2036

                	 
	
                  IB-25-B

                	 	
                  Variable(2)

                	 	 	
                  $                  5,995,609.45

                	 	
                  December 2036

                	 
	
                  IB-26-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,318,121.84

                	 	
                  December 2036

                	 
	
                  IB-26-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,318,121.84

                	 	
                  December 2036

                	 
	
                  IB-27-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,176,415.08

                	 	
                  December 2036

                	 
	
                  IB-27-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,176,415.08

                	 	
                  December 2036

                	 
	
                  IB-28-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,080,070.86

                	 	
                  December 2036

                	 
	
                  IB-28-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,080,070.86

                	 	
                  December 2036

                	 
	
                  IB-29-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,987,160.34

                	 	
                  December 2036

                	 
	
                  IB-29-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,987,160.34

                	 	
                  December 2036

                	 
	
                  IB-30-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,899,535.66

                	 	
                  December 2036

                	 
	
                  IB-30-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,899,535.66

                	 	
                  December 2036

                	 
	
                  IB-31-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,815,866.33

                	 	
                  December 2036

                	 
	
                  IB-31-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,815,866.33

                	 	
                  December 2036

                	 
	
                  IB-32-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,735,956.79

                	 	
                  December 2036

                	 
	
                  IB-32-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,735,956.79

                	 	
                  December 2036

                	 
	
                  IB-33-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,659,627.98

                	 	
                  December 2036

                	 
	
                  IB-33-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,659,627.98

                	 	
                  December 2036

                	 
	
                  IB-34-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,586,659.30

                	 	
                  December 2036

                	 
	
                  IB-34-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,586,659.30

                	 	
                  December 2036

                	 
	
                  IB-35-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,516,905.76

                	 	
                  December 2036

                	 
	
                  IB-35-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,516,905.76

                	 	
                  December 2036

                	 
	
                  IB-36-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,450,413.23

                	 	
                  December 2036

                	 
	
                  IB-36-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,450,413.23

                	 	
                  December 2036

                	 
	
                  IB-37-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,386,899.35

                	 	
                  December 2036

                	 
	
                  IB-37-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,386,899.35

                	 	
                  December 2036

                	 
	
                  IB-38-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,326,225.10

                	 	
                  December 2036

                	 
	
                  IB-38-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,326,225.10

                	 	
                  December 2036

                	 
	
                  IB-39-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,268,258.96

                	 	
                  December 2036

                	 
	
                  IB-39-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,268,258.96

                	 	
                  December 2036

                	 
	
                  IB-40-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,212,864.19

                	 	
                  December 2036

                	 
	
                  IB-40-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,212,864.19

                	 	
                  December 2036

                	 
	
                  IB-41-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,159,937.36

                	 	
                  December 2036

                	 
	
                  IB-41-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,159,937.36

                	 	
                  December 2036

                	 
	
                  IB-42-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,109,390.91

                	 	
                  December 2036

                	 

        

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        
 

        
          	
                  Designation

                	 	
                  REMIC I

                  Remittance Rate

                	 	
                  Initial

                  Uncertificated Balance

                	 	
                  Latest Possible

                  Maturity Date(1)

                	 
	
                  IB-42-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,109,390.91

                	 	
                  December 2036

                	 
	
                  IB-43-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,061,094.58

                	 	
                  December 2036

                	 
	
                  IB-43-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,061,094.58

                	 	
                  December 2036

                	 
	
                  IB-44-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,014,946.21

                	 	
                  December 2036

                	 
	
                  IB-44-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,014,946.21

                	 	
                  December 2036

                	 
	
                  IB-45-A

                	 	
                  Variable(2)

                	 	 	
                  $                     970,847.95

                	 	
                  December 2036

                	 
	
                  IB-45-B

                	 	
                  Variable(2)

                	 	 	
                  $                     970,847.95

                	 	
                  December 2036

                	 
	
                  IB-46-A

                	 	
                  Variable(2)

                	 	 	
                  $                     928,705.76

                	 	
                  December 2036

                	 
	
                  IB-46-B

                	 	
                  Variable(2)

                	 	 	
                  $                     928,705.76

                	 	
                  December 2036

                	 
	
                  IB-47-A

                	 	
                  Variable(2)

                	 	 	
                  $                     888,433.36

                	 	
                  December 2036

                	 
	
                  IB-47-B

                	 	
                  Variable(2)

                	 	 	
                  $                     888,433.36

                	 	
                  December 2036

                	 
	
                  IB-48-A

                	 	
                  Variable(2)

                	 	 	
                  $                     849,947.01

                	 	
                  December 2036

                	 
	
                  IB-48-B

                	 	
                  Variable(2)

                	 	 	
                  $                     849,947.01

                	 	
                  December 2036

                	 
	
                  IB-49-A

                	 	
                  Variable(2)

                	 	 	
                  $                     813,164.62

                	 	
                  December 2036

                	 
	
                  IB-49-B

                	 	
                  Variable(2)

                	 	 	
                  $                     813,164.62

                	 	
                  December 2036

                	 
	
                  IB-50-A

                	 	
                  Variable(2)

                	 	 	
                  $                     778,009.04

                	 	
                  December 2036

                	 
	
                  IB-50-B

                	 	
                  Variable(2)

                	 	 	
                  $                     778,009.04

                	 	
                  December 2036

                	 
	
                  IB-51-A

                	 	
                  Variable(2)

                	 	 	
                  $                     744,406.97

                	 	
                  December 2036

                	 
	
                  IB-51-B

                	 	
                  Variable(2)

                	 	 	
                  $                     744,406.97

                	 	
                  December 2036

                	 
	
                  IB-52-A

                	 	
                  Variable(2)

                	 	 	
                  $                     712,288.62

                	 	
                  December 2036

                	 
	
                  IB-52-B

                	 	
                  Variable(2)

                	 	 	
                  $                     712,288.62

                	 	
                  December 2036

                	 
	
                  IB-53-A

                	 	
                  Variable(2)

                	 	 	
                  $                     681,586.67

                	 	
                  December 2036

                	 
	
                  IB-53-B

                	 	
                  Variable(2)

                	 	 	
                  $                     681,586.67

                	 	
                  December 2036

                	 
	
                  IB-54-A

                	 	
                  Variable(2)

                	 	 	
                  $                     652,237.94

                	 	
                  December 2036

                	 
	
                  IB-54-B

                	 	
                  Variable(2)

                	 	 	
                  $                     652,237.94

                	 	
                  December 2036

                	 
	
                  IB-55-A

                	 	
                  Variable(2)

                	 	 	
                  $                     624,181.06

                	 	
                  December 2036

                	 
	
                  IB-55-B

                	 	
                  Variable(2)

                	 	 	
                  $                     624,181.06

                	 	
                  December 2036

                	 
	
                  IB-56-A

                	 	
                  Variable(2)

                	 	 	
                  $                     597,363.16

                	 	
                  December 2036

                	 
	
                  IB-56-B

                	 	
                  Variable(2)

                	 	 	
                  $                     597,363.16

                	 	
                  December 2036

                	 
	
                  IB-57-A

                	 	
                  Variable(2)

                	 	 	
                  $                     571,727.07

                	 	
                  December 2036

                	 
	
                  IB-57-B

                	 	
                  Variable(2)

                	 	 	
                  $                     571,727.07

                	 	
                  December 2036

                	 
	
                  IB-58-A

                	 	
                  Variable(2)

                	 	 	
                  $                     547,784.64

                	 	
                  December 2036

                	 
	
                  IB-58-B

                	 	
                  Variable(2)

                	 	 	
                  $                     547,784.64

                	 	
                  December 2036

                	 
	
                  IB-59-A

                	 	
                  Variable(2)

                	 	 	
                  $                     524,453.95

                	 	
                  December 2036

                	 
	
                  IB-59-B

                	 	
                  Variable(2)

                	 	 	
                  $                     524,453.95

                	 	
                  December 2036

                	 
	
                  IB-60-A

                	 	
                  Variable(2)

                	 	 	
                  $                11,992,303.24

                	 	
                  December 2036

                	 
	
                  IB-60-B

                	 	
                  Variable(2)

                	 	 	
                  $                11,992,303.24

                	 	
                  December 2036

                	 
	
                  II

                	 	
                  Variable(2)

                	 	 	
                  $                                  .13

                	 	
                  December 2036

                	 
	
                  II-1-A

                	 	
                  Variable(2)

                	 	 	
                  $                  3,992,980.40

                	 	
                  December 2036

                	 
	
                  II-1-B

                	 	
                  Variable(2)

                	 	 	
                  $                  3,992,980.40

                	 	
                  December 2036

                	 
	
                  II-2-A

                	 	
                  Variable(2)

                	 	 	
                  $                  4,797,524.15

                	 	
                  December 2036

                	 
	
                  II-2-B

                	 	
                  Variable(2)

                	 	 	
                  $                  4,797,524.15

                	 	
                  December 2036

                	 
	
                  II-3-A

                	 	
                  Variable(2)

                	 	 	
                  $                  5,591,988.08

                	 	
                  December 2036

                	 
	
                  II-3-B

                	 	
                  Variable(2)

                	 	 	
                  $                  5,591,988.08

                	 	
                  December 2036

                	 
	
                  II-4-A

                	 	
                  Variable(2)

                	 	 	
                  $                  6,370,113.92

                	 	
                  December 2036

                	 
	
                  II-4-B

                	 	
                  Variable(2)

                	 	 	
                  $                  6,370,113.92

                	 	
                  December 2036

                	 

        

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        
 

        
          	
                  Designation

                	 	
                  REMIC I

                  Remittance Rate

                	 	
                  Initial

                  Uncertificated Balance

                	 	
                  Latest Possible

                  Maturity Date(1)

                	 
	
                  II-5-A

                	 	
                  Variable(2)

                	 	 	
                  $                  7,125,518.30

                	 	
                  December 2036

                	 
	
                  II-5-B

                	 	
                  Variable(2)

                	 	 	
                  $                  7,125,518.30

                	 	
                  December 2036

                	 
	
                  II-6-A

                	 	
                  Variable(2)

                	 	 	
                  $                  7,851,764.65

                	 	
                  December 2036

                	 
	
                  II-6-B

                	 	
                  Variable(2)

                	 	 	
                  $                  7,851,764.65

                	 	
                  December 2036

                	 
	
                  II-7-A

                	 	
                  Variable(2)

                	 	 	
                  $                  8,542,369.94

                	 	
                  December 2036

                	 
	
                  II-7-B

                	 	
                  Variable(2)

                	 	 	
                  $                  8,542,369.94

                	 	
                  December 2036

                	 
	
                  II-8-A

                	 	
                  Variable(2)

                	 	 	
                  $                  9,189,606.35

                	 	
                  December 2036

                	 
	
                  II-8-B

                	 	
                  Variable(2)

                	 	 	
                  $                  9,189,606.35

                	 	
                  December 2036

                	 
	
                  II-9-A

                	 	
                  Variable(2)

                	 	 	
                  $                  9,775,746.26

                	 	
                  December 2036

                	 
	
                  II-9-B

                	 	
                  Variable(2)

                	 	 	
                  $                  9,775,746.26

                	 	
                  December 2036

                	 
	
                  II-10-A

                	 	
                  Variable(2)

                	 	 	
                  $                  9,946,430.12

                	 	
                  December 2036

                	 
	
                  II-10-B

                	 	
                  Variable(2)

                	 	 	
                  $                  9,946,430.12

                	 	
                  December 2036

                	 
	
                  II-11-A

                	 	
                  Variable(2)

                	 	 	
                  $                  9,546,027.25

                	 	
                  December 2036

                	 
	
                  II-11-B

                	 	
                  Variable(2)

                	 	 	
                  $                  9,546,027.25

                	 	
                  December 2036

                	 
	
                  II-12-A

                	 	
                  Variable(2)

                	 	 	
                  $                  9,155,037.29

                	 	
                  December 2036

                	 
	
                  II-12-B

                	 	
                  Variable(2)

                	 	 	
                  $                  9,155,037.29

                	 	
                  December 2036

                	 
	
                  II-13-A

                	 	
                  Variable(2)

                	 	 	
                  $                  8,780,133.24

                	 	
                  December 2036

                	 
	
                  II-13-B

                	 	
                  Variable(2)

                	 	 	
                  $                  8,780,133.24

                	 	
                  December 2036

                	 
	
                  II-14-A

                	 	
                  Variable(2)

                	 	 	
                  $                  8,420,650.03

                	 	
                  December 2036

                	 
	
                  II-14-B

                	 	
                  Variable(2)

                	 	 	
                  $                  8,420,650.03

                	 	
                  December 2036

                	 
	
                  II-15-A

                	 	
                  Variable(2)

                	 	 	
                  $                  8,075,951.46

                	 	
                  December 2036

                	 
	
                  II-15-B

                	 	
                  Variable(2)

                	 	 	
                  $                  8,075,951.46

                	 	
                  December 2036

                	 
	
                  II-16-A

                	 	
                  Variable(2)

                	 	 	
                  $                  7,745,426.69

                	 	
                  December 2036

                	 
	
                  II-16-B

                	 	
                  Variable(2)

                	 	 	
                  $                  7,745,426.69

                	 	
                  December 2036

                	 
	
                  II-17-A

                	 	
                  Variable(2)

                	 	 	
                  $                  7,428,489.88

                	 	
                  December 2036

                	 
	
                  II-17-B

                	 	
                  Variable(2)

                	 	 	
                  $                  7,428,489.88

                	 	
                  December 2036

                	 
	
                  II-18-A

                	 	
                  Variable(2)

                	 	 	
                  $                  7,124,580.98

                	 	
                  December 2036

                	 
	
                  II-18-B

                	 	
                  Variable(2)

                	 	 	
                  $                  7,124,580.98

                	 	
                  December 2036

                	 
	
                  II-19-A

                	 	
                  Variable(2)

                	 	 	
                  $                  6,861,171.48

                	 	
                  December 2036

                	 
	
                  II-19-B

                	 	
                  Variable(2)

                	 	 	
                  $                  6,861,171.48

                	 	
                  December 2036

                	 
	
                  II-20-A

                	 	
                  Variable(2)

                	 	 	
                  $                  6,733,315.90

                	 	
                  December 2036

                	 
	
                  II-20-B

                	 	
                  Variable(2)

                	 	 	
                  $                  6,733,315.90

                	 	
                  December 2036

                	 
	
                  II-21-A

                	 	
                  Variable(2)

                	 	 	
                  $                10,412,056.42

                	 	
                  December 2036

                	 
	
                  II-21-B

                	 	
                  Variable(2)

                	 	 	
                  $                10,412,056.42

                	 	
                  December 2036

                	 
	
                  II-22-A

                	 	
                  Variable(2)

                	 	 	
                  $                19,449,190.63

                	 	
                  December 2036

                	 
	
                  II-22-B

                	 	
                  Variable(2)

                	 	 	
                  $                19,449,190.63

                	 	
                  December 2036

                	 
	
                  II-23-A

                	 	
                  Variable(2)

                	 	 	
                  $                16,347,651.41

                	 	
                  December 2036

                	 
	
                  II-23-B

                	 	
                  Variable(2)

                	 	 	
                  $                16,347,651.41

                	 	
                  December 2036

                	 
	
                  II-24-A

                	 	
                  Variable(2)

                	 	 	
                  $                13,611,402.33

                	 	
                  December 2036

                	 
	
                  II-24-B

                	 	
                  Variable(2)

                	 	 	
                  $                13,611,402.33

                	 	
                  December 2036

                	 
	
                  II-25-A

                	 	
                  Variable(2)

                	 	 	
                  $                  9,658,026.39

                	 	
                  December 2036

                	 
	
                  II-25-B

                	 	
                  Variable(2)

                	 	 	
                  $                  9,658,026.39

                	 	
                  December 2036

                	 
	
                  II-26-A

                	 	
                  Variable(2)

                	 	 	
                  $                  3,734,146.14

                	 	
                  December 2036

                	 
	
                  II-26-B

                	 	
                  Variable(2)

                	 	 	
                  $                  3,734,146.14

                	 	
                  December 2036

                	 
	
                  II-27-A

                	 	
                  Variable(2)

                	 	 	
                  $                  3,505,877.84

                	 	
                  December 2036

                	 
	
                  II-27-B

                	 	
                  Variable(2)

                	 	 	
                  $                  3,505,877.84

                	 	
                  December 2036

                	 

        

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        
 

        
          	
                  Designation

                	 	
                  REMIC I

                  Remittance Rate

                	 	
                  Initial

                  Uncertificated Balance

                	 	
                  Latest Possible

                  Maturity Date(1)

                	 
	
                  II-28-A

                	 	
                  Variable(2)

                	 	 	
                  $                  3,350,681.76

                	 	
                  December 2036

                	 
	
                  II-28-B

                	 	
                  Variable(2)

                	 	 	
                  $                  3,350,681.76

                	 	
                  December 2036

                	 
	
                  II-29-A

                	 	
                  Variable(2)

                	 	 	
                  $                  3,201,016.87

                	 	
                  December 2036

                	 
	
                  II-29-B

                	 	
                  Variable(2)

                	 	 	
                  $                  3,201,016.87

                	 	
                  December 2036

                	 
	
                  II-30-A

                	 	
                  Variable(2)

                	 	 	
                  $                  3,059,866.67

                	 	
                  December 2036

                	 
	
                  II-30-B

                	 	
                  Variable(2)

                	 	 	
                  $                  3,059,866.67

                	 	
                  December 2036

                	 
	
                  II-31-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,925,087.95

                	 	
                  December 2036

                	 
	
                  II-31-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,925,087.95

                	 	
                  December 2036

                	 
	
                  II-32-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,796,365.67

                	 	
                  December 2036

                	 
	
                  II-32-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,796,365.67

                	 	
                  December 2036

                	 
	
                  II-33-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,673,411.42

                	 	
                  December 2036

                	 
	
                  II-33-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,673,411.42

                	 	
                  December 2036

                	 
	
                  II-34-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,555,869.84

                	 	
                  December 2036

                	 
	
                  II-34-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,555,869.84

                	 	
                  December 2036

                	 
	
                  II-35-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,443,507.36

                	 	
                  December 2036

                	 
	
                  II-35-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,443,507.36

                	 	
                  December 2036

                	 
	
                  II-36-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,336,397.88

                	 	
                  December 2036

                	 
	
                  II-36-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,336,397.88

                	 	
                  December 2036

                	 
	
                  II-37-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,234,086.57

                	 	
                  December 2036

                	 
	
                  II-37-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,234,086.57

                	 	
                  December 2036

                	 
	
                  II-38-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,136,349.47

                	 	
                  December 2036

                	 
	
                  II-38-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,136,349.47

                	 	
                  December 2036

                	 
	
                  II-39-A

                	 	
                  Variable(2)

                	 	 	
                  $                  2,042,974.72

                	 	
                  December 2036

                	 
	
                  II-39-B

                	 	
                  Variable(2)

                	 	 	
                  $                  2,042,974.72

                	 	
                  December 2036

                	 
	
                  II-40-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,953,742.07

                	 	
                  December 2036

                	 
	
                  II-40-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,953,742.07

                	 	
                  December 2036

                	 
	
                  II-41-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,868,484.89

                	 	
                  December 2036

                	 
	
                  II-41-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,868,484.89

                	 	
                  December 2036

                	 
	
                  II-42-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,787,062.14

                	 	
                  December 2036

                	 
	
                  II-42-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,787,062.14

                	 	
                  December 2036

                	 
	
                  II-43-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,709,264.01

                	 	
                  December 2036

                	 
	
                  II-43-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,709,264.01

                	 	
                  December 2036

                	 
	
                  II-44-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,634,925.91

                	 	
                  December 2036

                	 
	
                  II-44-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,634,925.91

                	 	
                  December 2036

                	 
	
                  II-45-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,563,890.24

                	 	
                  December 2036

                	 
	
                  II-45-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,563,890.24

                	 	
                  December 2036

                	 
	
                  II-46-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,496,005.50

                	 	
                  December 2036

                	 
	
                  II-46-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,496,005.50

                	 	
                  December 2036

                	 
	
                  II-47-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,431,132.72

                	 	
                  December 2036

                	 
	
                  II-47-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,431,132.72

                	 	
                  December 2036

                	 
	
                  II-48-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,369,136.99

                	 	
                  December 2036

                	 
	
                  II-48-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,369,136.99

                	 	
                  December 2036

                	 
	
                  II-49-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,309,886.07

                	 	
                  December 2036

                	 
	
                  II-49-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,309,886.07

                	 	
                  December 2036

                	 
	
                  II-50-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,253,255.72

                	 	
                  December 2036

                	 
	
                  II-50-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,253,255.72

                	 	
                  December 2036

                	 

        

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        
 

        
          	
                  Designation

                	 	
                  REMIC I

                  Remittance Rate

                	 	
                  Initial

                  Uncertificated Balance

                	 	
                  Latest Possible

                  Maturity Date(1)

                	 
	
                  II-51-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,199,127.82

                	 	
                  December 2036

                	 
	
                  II-51-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,199,127.82

                	 	
                  December 2036

                	 
	
                  II-52-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,147,390.00

                	 	
                  December 2036

                	 
	
                  II-52-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,147,390.00

                	 	
                  December 2036

                	 
	
                  II-53-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,097,933.76

                	 	
                  December 2036

                	 
	
                  II-53-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,097,933.76

                	 	
                  December 2036

                	 
	
                  II-54-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,050,657.36

                	 	
                  December 2036

                	 
	
                  II-54-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,050,657.36

                	 	
                  December 2036

                	 
	
                  II-55-A

                	 	
                  Variable(2)

                	 	 	
                  $                  1,005,461.94

                	 	
                  December 2036

                	 
	
                  II-55-B

                	 	
                  Variable(2)

                	 	 	
                  $                  1,005,461.94

                	 	
                  December 2036

                	 
	
                  II-56-A

                	 	
                  Variable(2)

                	 	 	
                  $                     962,262.34

                	 	
                  December 2036

                	 
	
                  II-56-B

                	 	
                  Variable(2)

                	 	 	
                  $                     962,262.34

                	 	
                  December 2036

                	 
	
                  II-57-A

                	 	
                  Variable(2)

                	 	 	
                  $                     920,966.45

                	 	
                  December 2036

                	 
	
                  II-57-B

                	 	
                  Variable(2)

                	 	 	
                  $                     920,966.45

                	 	
                  December 2036

                	 
	
                  II-58-A

                	 	
                  Variable(2)

                	 	 	
                  $                     882,398.79

                	 	
                  December 2036

                	 
	
                  II-58-B

                	 	
                  Variable(2)

                	 	 	
                  $                     882,398.79

                	 	
                  December 2036

                	 
	
                  II-59-A

                	 	
                  Variable(2)

                	 	 	
                  $                     844,816.55

                	 	
                  December 2036

                	 
	
                  II-59-B

                	 	
                  Variable(2)

                	 	 	
                  $                     844,816.55

                	 	
                  December 2036

                	 
	
                  II-60-A

                	 	
                  Variable(2)

                	 	 	
                  $                19,317,799.48

                	 	
                  December 2036

                	 
	
                  II-60-B

                	 	
                  Variable(2)

                	 	 	
                  $                19,317,799.48

                	 	
                  December 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.

            

    

    

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    REMIC
      II

     

    As
      provided herein, the Securities Administrator 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 will evidence the sole class
      of “residual interests” in REMIC II for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the designation, the REMIC II Remittance
      Rate, the initial aggregate 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 II Regular Interests. None of the
      REMIC II Regular Interests will be certificated.

    
      

        
          	
                  Designation

                	 	
                  REMIC II 

                  Remittance Rate

                	 	
                  Initial

                  Uncertificated Balance

                	 	
                  Latest Possible

                  Maturity Date (1)

                
	
                  AA

                	 	
                  Variable(2)

                	 	
                  $              735,682,142.38

                	 	
                  December 2036

                
	
                  A-1A

                	 	
                  Variable(2)

                	 	
                  $                  2,055,930.00

                	 	
                  December 2036

                
	
                  A-1B

                	 	
                  Variable(2)

                	 	
                  $                  1,553,030.00

                	 	
                  December 2036

                
	
                  A-2A

                	 	
                  Variable(2)

                	 	
                  $                  1,190,075.00

                	 	
                  December 2036

                
	
                  A-2B

                	 	
                  Variable(2)

                	 	
                  $                     473,395.00

                	 	
                  December 2036

                
	
                  A-2C

                	 	
                  Variable(2)

                	 	
                  $                     390,785.00

                	 	
                  December 2036

                
	
                  A-2D

                	 	
                  Variable(2)

                	 	
                  $                     447,445.00

                	 	
                  December 2036

                
	
                  M-1

                	 	
                  Variable(2)

                	 	
                  $                     247,730.00

                	 	
                  December 2036

                
	
                  M-2

                	 	
                  Variable(2)

                	 	
                  $                     225,210.00

                	 	
                  December 2036

                
	
                  M-3

                	 	
                  Variable(2)

                	 	
                  $                     135,125.00

                	 	
                  December 2036

                
	
                  M-4

                	 	
                  Variable(2)

                	 	
                  $                     123,865.00

                	 	
                  December 2036

                
	
                  M-5

                	 	
                  Variable(2)

                	 	
                  $                     120,110.00

                	 	
                  December 2036

                
	
                  M-6

                	 	
                  Variable(2)

                	 	
                  $                     108,850.00

                	 	
                  December 2036

                
	
                  M-7

                	 	
                  Variable(2)

                	 	
                  $                     105,095.00

                	 	
                  December 2036

                
	
                  M-8

                	 	
                  Variable(2)

                	 	
                  $                       60,055.00

                	 	
                  December 2036

                
	
                  M-9

                	 	
                  Variable(2)

                	 	
                  $                       67,565.00

                	 	
                  December 2036

                
	
                  M-10

                	 	
                  Variable(2)

                	 	
                  $                       37,535.00

                	 	
                  December 2036

                
	
                  M-11

                	 	
                  Variable(2)

                	 	
                  $                       71,315.00

                	 	
                  December 2036

                
	
                  ZZ

                	 	
                  Variable(2)

                	 	
                  $                  7,600,806.27

                	 	
                  December 2036

                
	
                  P

                	 	
                  Variable(2)

                	 	
                  $                            100.00

                	 	
                  December 2036

                
	
                  IO

                	 	
                  Variable(2)

                	 	
                                           (3)

                	 	
                  December 2036

                
	
                  IA-SUB

                	 	
                  Variable(2)

                	 	
                  $                         9,395.70

                	 	
                  December 2036

                
	
                  IA-GRP

                	 	
                  Variable(2)

                	 	
                  $                       50,514.30

                	 	
                  December 2036

                
	
                  IB-SUB

                	 	
                  Variable(2)

                	 	
                  $                         7,097.44

                	 	
                  December 2036

                
	
                  IB-GRP

                	 	
                  Variable(2)

                	 	
                  $                       38,158.04

                	 	
                  December 2036

                
	
                  II-SUB

                	 	
                  Variable(2)

                	 	
                  $                       11,432.88

                	 	
                  December 2036

                
	
                  II-GRP

                	 	
                  Variable(2)

                	 	
                  $                       61,466.88

                	 	
                  December 2036

                
	
                  XX

                	 	
                  Variable(2)

                	 	
                  $              750,517,998.41

                	 	
                  December 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 II Regular
                Interest.

            

    

    
      	(2)	
              Calculated
                in accordance with the definition of “REMIC II Remittance Rate”
                herein.

            

    

    
      	(3)	
              REMIC
                II Regular Interest IO will not have an Uncertificated Balance, but
                will
                accrue interest on its Uncertificated Notional
                Amount.

            

    

    
      	(4)	
              REMIC
                II Regular
                Interest P will be entitled to 100% of the Prepayment
                Charges.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    REMIC
      III

     

    As
      provided herein, the Securities Administrator will elect to treat the segregated
      pool of assets consisting of the REMIC II Regular Interests as a REMIC for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC III.” The Class R-III Interest will evidence the sole class
      of “residual interests” in REMIC III for purposes of the REMIC Provisions. 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-1A

            	 	
              Variable(2)

            	 	
              $              411,186,000.00

            	 	
              December 2036

            
	
              Class A-1B

            	 	
              Variable(2)

            	 	
              $              310,606,000.00

            	 	
              December 2036

            
	
              Class A-2A

            	 	
              Variable(2)

            	 	
              $              238,015,000.00

            	 	
              December 2036

            
	
              Class A-2B

            	 	
              Variable(2)

            	 	
              $                94,679,000.00

            	 	
              December 2036

            
	
              Class A-2C

            	 	
              Variable(2)

            	 	
              $                78,157,000.00

            	 	
              December 2036

            
	
              Class A-2D

            	 	
              Variable(2)

            	 	
              $                89,489,000.00

            	 	
              December 2036

            
	
              Class M-1

            	 	
              Variable(2)  

            	 	
              $                49,546,000.00

            	 	
              December 2036

            
	
              Class M-2

            	 	
              Variable(2)

            	 	
              $                45,042,000.00

            	 	
              December 2036

            
	
              Class M-3

            	 	
              Variable(2)

            	 	
              $                27,025,000.00

            	 	
              December 2036

            
	
              Class M-4

            	 	
              Variable(2)

            	 	
              $                24,773,000.00

            	 	
              December 2036

            
	
              Class M-5

            	 	
              Variable(2)

            	 	
              $                24,022,000.00

            	 	
              December 2036

            
	
              Class M-6

            	 	
              Variable(2)

            	 	
              $                21,770,000.00

            	 	
              December 2036

            
	
              Class M-7 

            	 	
              Variable(2)

            	 	
              $                21,019,000.00

            	 	
              December 2036

            
	
              Class M-8 

            	 	
              Variable(2)

            	 	
              $                12,011,000.00

            	 	
              December 2036

            
	
              Class M-9 

            	 	
              Variable(2)

            	 	
              $                13,513,000.00

            	 	
              December 2036

            
	
              Class M-10

            	 	
              Variable(2)

            	 	
              $                  7,507,000.00

            	 	
              December 2036

            
	
              Class M-11

            	 	
              Variable(2)

            	 	
              $                14,263,000.00

            	 	
              December 2036

            
	
              Class P 

            	 	
              N/A(3)

            	 	
              $                            100.00

            	 	
              December 2036

            
	
              Class CE

            	 	
              N/A(4)

            	 	
              $                18,769,127.31

            	 	
              December 2036

            
	
              Class IO Interest 

            	 	
              N/A(5)

            	 	
              (5)

            	 	
              December 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 Class of
                Certificates.

            

    

    
      	(2)	
              Calculated
                in accordance with the definition of “Pass-Through Rate”
                herein.

            

    

    
      	(3)	
              The
                Class P Certificates will not accrue interest. The Class P Certificates
                will entitled to 100% of Prepayment
                Charges.

            

    

    
      	(4)	
              The
                Class CE Certificates will accrue interest at their variable Pass-Through
                Rate on the Notional Amount of the Class CE Certificates outstanding
                from
                time to time which shall equal the Uncertificated Balance of the
                REMIC II
                Regular Interests (other than REMIC II Regular Interest P). The Class
                CE
                Certificates will not accrue interest on their Certificate Principal
                Balance.

            

    

    
      	(5)	
              The
                Class IO Interest will not have a Pass-Through Rate or a Certificate
                Principal Balance, but will be entitled to 100% of amounts distributed
                on
                REMIC II Regular Interest IO.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    The
      Mortgage Loans had an aggregate Scheduled Principal Balance as of the Cut-off
      Date, after deducting all Monthly Payments due on or before the Cut-off Date,
      of
      $1,501,392,227.31. As of the Cut-off Date, the Group IA Mortgage Loans had
      an
      aggregate Scheduled Principal Balance equal to $505,142,993.85, the Group IB
      Mortgage Loans had an aggregate Scheduled Principal Balance equal to
      $381,580,444.40 and the Group II Mortgage Loans had an aggregate Scheduled
      Principal Balance equal to $614,668,789.06.

     

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

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    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
      Master Servicing Practices”: With respect to any Mortgage Loan, as applicable,
      either (x) those customary mortgage master servicing practices of prudent
      mortgage servicing institutions that master service mortgage loans of the same
      type and quality as such Mortgage Loan in the jurisdiction where the related
      Mortgaged Property is located, to the extent applicable to the Master Servicer
      or (y) as provided in Section 3.01 hereof, but in no event below the
      standard set forth in clause (x) above.

     

    “Accepted
      Servicing Practices”: As defined in Section 3.01.

     

    “Account”:
      The Collection Accounts and the Distribution Account, as the context may
      require.

     

    “Accrued
      Certificate Interest”: With respect to any Class A Certificate, Mezzanine
      Certificate or Class CE Certificate 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 Class CE Certificate shall be reduced by an amount equal to
      the
      portion allocable to such Certificate pursuant to Section 1.02 hereof, if
      any, 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 3.22 or Section 4.19 of this Agreement or pursuant to
      corresponding provisions of the Servicing Agreement 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 any Class CE Certificate, shall be reduced by an amount equal to the
      portion allocable to such Class CE Certificate of Realized Losses, if any,
      pursuant to Section 1.02 and Section 5.04 hereof. 

     

    
      
        
        

      

      
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    “Additional
      Disclosure Notification”: Has the meaning set forth in Section 5.06(a)(ii).

     

    “Additional
      Form 10-D Disclosure”: Either has the meaning set forth in Section 5.06(a)(i) of
      this Agreement or with respect to a Servicer, shall be limited to the
      information set forth in Section 3.19(f)(iii) of this Agreement or the
      Servicing Agreement, as applicable.

     

    “Additional
      Form 10-K Disclosure”: Either has the meaning set forth in Section 5.06(d)(i) of
      this Agreement or with respect to a Servicer, shall be limited to the
      information set forth in Section 3.19(f)(ii) of this Agreement or the
      Servicing Agreement, as applicable.

     

    “Additional
      Servicer”: Means each affiliate of a Servicer that Services any of the Mortgage
      Loans and each Person who is not an affiliate of such Servicer. For
      clarification purposes, the Master Servicer and the Securities Administrator
      are
      Additional Servicers.

     

    “Adjustable
      Rate Mortgage Loan”: Each of the Mortgage Loans identified in the Mortgage Loan
      Schedule as having a Mortgage Rate that is subject to adjustment.

     

    “Adjustment
      Date”: With respect to each Adjustable Rate Mortgage Loan, the first day of the
      month in which the Mortgage Rate of an Adjustable Rate 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.

     

    “Administration
      Fees: The sum of (i) the Servicing Fees, (ii) the Master Servicing Fee and
      (iii)
      the Credit Risk Management Fee.

     

    “Administration
      Fee Rate”: The sum of (i) the Servicing Fee Rate, (ii) the Master Servicing Fee
      Rate and (iii) the Credit Risk Management Fee Rate. 

     

    “Advance
      Facility”: As defined in Section 3.25(a).

     

    “Advance
      Financing Person”: As defined in Section 3.25(a).

     

    “Advance
      Reimbursement Amounts”: As defined in Section 3.25(b).

     

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

     

    “Aggregate
      Loss Severity 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 on any Mortgage Loans from the Cut-off Date to the
      last
      day of the preceding calendar month and the denominator of which is the
      aggregate principal balance of such Mortgage Loans immediately prior to the
      liquidation of such Mortgage Loans.

     

    
      
        
        

      

      
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    “Agreement”:
      This Pooling and Servicing Agreement, including all exhibits and schedules
      hereto and all amendments hereof and supplements hereto.

     

    “Allocated
      Realized Loss Amount”: With respect to any Class of Mezzanine Certificates and
      any Distribution Date, an amount equal to the sum of any Realized Loss allocated
      to that Class of Certificates on the Distribution Date and any Allocated
      Realized Loss Amount for that Class remaining unpaid from the previous
      Distribution Date.

     

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

     

    “Ancillary
      Income”: All income derived from the Mortgage Loans, other than Servicing Fees
      and Prepayment Charges, including but not limited to, late charges, fees
      received with respect to checks or bank drafts returned by the related bank
      for
      non-sufficient funds, assumption fees, optional insurance administrative fees
      and all other incidental fees and charges.

     

    “Annual
      Statement of Compliance”: As defined in Section 3.17.

     

    “Assignment”:
      An assignment of Mortgage, notice of transfer or equivalent instrument, in
      recordable form, which is sufficient under the laws of the jurisdiction where
      the related Mortgaged Property is located to reflect of record the sale and
      assignment 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.

     

    “Assignment
      Agreement”: The Assignment, Assumption and Recognition Agreement, dated as of
      November 30, 2006, by and among the Sponsor, the Depositor and New Century
      evidencing the assignment of the New Century Servicing Agreement to the
      Depositor.

     

    “Authorized
      Officers”: A managing director of the whole loan trading desk and a managing
      director in global markets.

     

    “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 Collection
      Accounts and Distribution Account as of the close of business on the Servicer
      Remittance Date, (b) the aggregate of any amounts deposited in the Distribution
      Account by the Servicers or the Master Servicer in respect of Prepayment
      Interest Shortfalls for such Distribution Date pursuant to Section 3.22 or
      Section 4.19 of this Agreement or pursuant the Servicing Agreement, as
      applicable, (c) the aggregate of any P&I Advances for such Distribution Date
      made by the Servicers pursuant to Section 5.03 of this Agreement or
      pursuant the Servicing Agreement, as applicable, and (d) the aggregate of any
      P&I Advances made by a successor Servicer (including the Master Servicer)
      for such Distribution Date pursuant to Section 8.02 of this Agreement
      reduced (to an amount not less than zero) by (2) the portion of the amount
      described in clause (1)(a) above that represents (i) Amounts Held for Future
      Distribution, (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), (iii) Liquidation Proceeds, Insurance Proceeds and
      Subsequent Recoveries received in respect of the Mortgage Loans after the
      related Prepayment Period, (iv) amounts reimbursable or payable to the
      Depositor, the Servicers, the Trustee, the Master Servicer, the Securities
      Administrator or the Custodian pursuant to Section 3.09 or 9.05 of this
      Agreement or otherwise payable in respect of Extraordinary Trust Fund Expenses,
      (v) the Credit Risk Management Fee, (vi) amounts deposited in the Collection
      Accounts or the Distribution Account in error, (vii) the amount of any
      Prepayment Charges collected by a Servicer in connection with the Principal
      Prepayment of any of the related Mortgage Loans and (viii) amounts reimbursable
      to a successor Servicer (including the Master Servicer) pursuant to
      Section 8.02 of this Agreement.

     

    
      
        
        

      

      
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    “Back-up
      Certification”: As defined in Section 3.19(a) of this Agreement.

     

    “Balloon
      Mortgage Loan”: A Mortgage Loan that provides for the payment of the unamortized
      principal balance of such Mortgage Loan in a single payment, that is
      substantially greater than the preceding monthly payment at the maturity of
      such
      Mortgage Loan.

     

    “Balloon
      Payment”: A payment of the unamortized principal balance of a Mortgage Loan in a
      single payment, that is substantially greater than the preceding Monthly Payment
      at the maturity of such Mortgage Loan.

     

    “Bankruptcy
      Code”: The Bankruptcy Reform Act of 1978 (Title 11 of the United States Code),
      as amended.

     

    “Book-Entry
      Certificates”: 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 6.01.

     

    “Business
      Day”: Any day other than a Saturday, a Sunday or a day on which banking or
      savings and loan institutions in the States of New York, California, Maryland,
      Minnesota or Texas or in the city in which the Corporate Trust Office of the
      Trustee is located, are authorized or obligated by law or executive order to
      be
      closed.

     

    “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
      plus any subordinate mortgage on the related Mortgaged Property and related
      closing costs.

     

    “Certificate”:
      Any one of ACE Securities Corp., Asset Backed Pass-Through Certificates, Series
      2006-NC3, Class A-1A, Class A-1B, Class A-2A, Class A-2B, Class A-2C, Class
      A-2D, 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 M-11, Class P, Class CE and Class
      R
      Certificates issued under this Agreement. 

     

    
      
        
        

      

      
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    “Certificate
      Factor”: With respect to any Class of Certificates (other than the Residual
      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 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 allocations of Realized Losses resulting
      in
      reduction of the Certificate Principal Balance (or 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 Notional Amount, in the case of the Class
      CE
      Certificates) of such Class of Certificates as of the Closing Date.

     

    “Certificate
      Margin”: With respect to the Class A-1A Certificates and, for purposes of the
      definition of “Marker Rate”, REMIC II Regular Interest A-1A, 0.130% in the case
      of each Distribution Date through and including the Optional Termination Date
      and 0.260%in the case of each Distribution Date thereafter.

     

    With
      respect to the Class A-1B Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-1B, 0.130% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.260%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class A-2A Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-2A, 0.050% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.100%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class A-2B Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-2B, 0.110% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.220%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class A-2C Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-2C, 0.160% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.320%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class A-2D Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-2D, 0.200% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.400%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-1 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-1, 0.240% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.360%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-2 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-2, 0.280% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.420%
      in the case of each Distribution Date thereafter.

     

    
      
        
        

      

      
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    With
      respect to the Class M-3 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-3, 0.330% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.495%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-4 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-4, 0.380% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.570%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-5 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-5, 0.400% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.600%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-6 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-6, 0.470% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.705%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-7 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-7, 0.850% in the case of each
      Distribution Date through and including the Optional Termination Date and 1.275%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-8 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-8, 1.300% in the case of each
      Distribution Date through and including the Optional Termination Date and 1.800%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-9 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-9, 2.400% in the case of each
      Distribution Date through and including the Optional Termination Date and 2.900%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-10 Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest M-10, 2.500% in the case of each
      Distribution Date through and including the Optional Termination Date and 3.000%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-11 Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest M-11, 2.500% in the case of each
      Distribution Date through and including the Optional Termination Date and 3.000%
      in the case of each Distribution Date thereafter.

     

    
      
        
        

      

      
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    “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 purposes
      hereof, and solely for the purposes of giving any consent pursuant to this
      Agreement, any Certificate registered in the name of or beneficially owned
      by
      the Depositor, the Sponsor, a Servicer, the Master Servicer, the Securities
      Administrator, the Trustee 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 12.01 of this Agreement. The Trustee and the Securities
      Administrator may conclusively rely upon a certificate of the Depositor, the
      Sponsor, the Master Servicer, the Securities Administrator or a 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 and the Securities Administrator
      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.

     

    “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 (other than
      a
      Class P Certificate) pursuant to Section 5.04 of this Agreement, minus (i)
      all distributions allocable to principal made thereon and (ii) Realized Losses
      allocated thereto, if any, 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 each Class CE Certificate 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
      Balances of the REMIC II Regular Interests over (B) the then aggregate
      Certificate Principal Balances of the Class A Certificates, the Mezzanine
      Certificates and the Class P Certificates then outstanding. The aggregate
      initial Certificate Principal Balance of each Class of Regular Certificates
      is
      set forth in the Preliminary Statement hereto.

     

    “Certificate
      Register”: The register maintained pursuant to Section 6.02 of this
      Agreement.

     

    “Certification
      Parties”: Has the meaning set forth in Section 3.19 and Section 4.18 of this
      Agreement.

     

    “Certifying
      Person”: Has the meaning set forth in Section 3.19 and Section 4.18 of this
      Agreement.

     

    
      
        
        

      

      
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    “Class”:
      Collectively, all of the Certificates bearing the same class
      designation.

     

    “Class
      A
      Certificate”: Any Class A-1A, Class A-1B, Class A-2A, Class A-2B, Class A-2C or
      Class A-2D Certificate.

     

    “Class
      A
      Principal Distribution Amount”: The Class A Principal Distribution Amount is an
      amount equal to the sum of: (i) the Class A-1A Principal Distribution Amount,
      the Class A-1B Principal Distribution Amount and (ii) the Class A-2 Principal
      Distribution Amount.

     

    “Class
      A-1A Allocation Percentage”: With respect to any Distribution Date is the
      percentage equivalent of a fraction, the numerator of which is (x) the Group
      IA
      Principal Remittance Amount for such Distribution Date and the denominator
      of
      which is (y) the Principal Remittance Amount for such Distribution
      Date.

     

    “Class
      A-1A Certificate”: Any one of the Class A-1A Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-1 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      A-1A Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the Certificate Principal Balance of the Class A-1A Certificates
      immediately prior to such Distribution Date over (y) the lesser of (A) the
      product of (i) 62.80% and (ii) the aggregate Stated Principal Balance of the
      Group IA 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) and (B) the aggregate
      Stated Principal Balance of the Group IA 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) minus the product of (i) 0.50% and (ii) the aggregate principal balance
      of the Group IA Mortgage Loans as of the Cut-off Date.

     

    “Class
      A-1B Allocation Percentage”: With respect to any Distribution Date is the
      percentage equivalent of a fraction, the numerator of which is (x) the Group
      IB
      Principal Remittance Amount for such Distribution Date and the denominator
      of
      which is (y) the Principal Remittance Amount for such Distribution
      Date.

     

    “Class
      A-1B Certificate”: Any one of the Class A-1B Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-1 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      A-1B Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the Certificate Principal Balance of the Class A-1B Certificates
      immediately prior to such Distribution Date over (y) the lesser of (A) the
      product of (i) 62.80% and (ii) the aggregate Stated Principal Balance of the
      Group IB 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) and (B) the aggregate
      Stated Principal Balance of the Group IB 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) minus the product of (i) 0.50% and (ii) the aggregate principal balance
      of the Group IB Mortgage Loans as of the Cut-off Date.

     

    
      
        
        

      

      
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    “Class
      A-2 Allocation Percentage”: With respect to any Distribution Date is the
      percentage equivalent of a fraction, the numerator of which is (x) the Group
      II
      Principal Remittance Amount for such Distribution Date and the denominator
      of
      which is (y) the Principal Remittance Amount for such Distribution
      Date.

     

    “Class
      A-2 Certificate”: Any Class A-2A, Class A-2B, Class A-2C or Class A-2D
      Certificate.

     

    “Class
      A-2 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of the Certificate Principal Balances of the Class A-2A,
      Class A-2B, Class A-2C and Class A-2D Certificates immediately prior to such
      Distribution Date over (y) the lesser of (A) the product of (i) 62.80% and
      (ii)
      the aggregate Stated Principal Balance of the Group II 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) and (B) the aggregate Stated Principal Balance of the Group II 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) minus the product of (i) 0.50% and (ii) the
      aggregate principal balance of the Group II Mortgage Loans as of the Cut-off
      Date.

     

    “Class
      A-2A Certificate”: Any one of the Class A-2A Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-1 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      A-2B Certificate”: Any one of the Class A-2B Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-1 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      A-2C Certificate”: Any one of the Class A-2C Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-1 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    
      
        
        

      

      
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    “Class
      A-2D Certificate”: Any one of the Class A-2D Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-1 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      CE
      Certificate”: Any one of the Class CE Certificates executed and authenticated by
      the Securities Administrator and delivered by the Trustee, substantially in
      the
      form annexed hereto as Exhibit A-4 and evidencing (i) a Regular Interest in
      REMIC III, (ii) beneficial ownership of the Reserve Fund and (iii) beneficial
      ownership of the Supplemental Interest Trust.

     

    “Class
      IO Distribution Amount”: As defined in Section 5.07(e) hereof. For
      purposes of clarity, the Class IO Distribution Amount for any Distribution
      Date
      shall equal the amount payable to the Supplemental Interest Trust on such
      Distribution Date in excess of the amount payable on the Class IO Interest
      on
      such Distribution Date, all as further provided in Section 5.07(e)
      hereof.

     

    “Class
      IO
      Interest”: An uncertificated interest in the Trust Fund held by the Trustee,
      evidencing a REMIC Regular Interest in REMIC III for purposes of the REMIC
      Provisions.

     

    “Class
      M-1 Certificate”: Any one of the Class M-1 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-1/M-2/M-3 Principal Distribution Amount”: With respect to any Distribution
      Date on or after the Stepdown Date and on which a Trigger Event is not in
      effect, the excess of (x) the sum of (i) the aggregate Certificate Principal
      Balance of the Class A Certificates after taking into account the payment of
      the
      Class A Principal Distribution Amount on such Distribution Date and (ii)
      aggregate the Certificate Principal Balance of the Class M-1/M-2/M-3
      Certificates immediately prior to such Distribution Date over (y) the lesser
      of
      (A) the product of (i) 79.00% and (ii) 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) and (B) 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) minus
      the product of (i) 0.50% and (ii) the aggregate principal balance of the
      Mortgage Loans as of the Cut-off Date.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    “Class
      M-2 Certificate”: Any one of the Class M-2 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-3 Certificate”: Any one of the Class M-3 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-4 Certificate”: Any one of the Class M-4 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-4 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of (i) the aggregate Certificate Principal Balance of
      the
      Class A Certificates (after taking into account the payment of the Class A
      Principal Distribution Amount on such Distribution Date), (ii) the aggregate
      Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
      Certificates (after taking into account the payment of the Class M-1/M-2/M-3
      Principal Distribution Amount on such Distribution Date) and (iii) 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) 82.30%
      and
      (ii) 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) and (B) 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) minus the product of (i) 0.50% and (ii) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date.

     

    “Class
      M-5 Certificate”: Any one of the Class M-5 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-5 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of (i) the aggregate Certificate Principal Balance of
      the
      Class A Certificates (after taking into account the payment of the Class A
      Principal Distribution Amount on such Distribution Date), (ii) the aggregate
      Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
      Certificates (after taking into account the payment of the Class M-1/M-2/M-3
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-4 Certificates (after taking into account
      the
      payment of the Class M-4 Principal Distribution Amount on such Distribution
      Date) and (iv) 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) 85.50% and (ii) 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) and (B) 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) minus the product
      of
      (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as
      of
      the Cut-off Date.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    “Class
      M-6 Certificate”: Any one of the Class M-6 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-6 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of (i) the aggregate Certificate Principal Balance of
      the
      Class A Certificates (after taking into account the payment of the Class A
      Principal Distribution Amount on such Distribution Date), (ii) the aggregate
      Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
      Certificates (after taking into account the payment of the Class M-1/M-2/M-3
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-4 Certificates (after taking into account
      the
      payment of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the payment of the Class M-5 Principal Distribution
      Amount on such Distribution Date) and (v) 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) 88.40% and (ii) 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) and
      (B)
      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) minus the product of (i) 0.50% and (ii) the aggregate principal balance
      of the Mortgage Loans as of the Cut-off Date.

     

    “Class
      M-7 Certificate”: Any one of the Class M-7 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    “Class
      M-7 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of (i) the aggregate Certificate Principal Balance of
      the
      Class A Certificates (after taking into account the payment of the Class A
      Principal Distribution Amount on such Distribution Date), (ii) the aggregate
      Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
      Certificates (after taking into account the payment of the Class M-1/M-2/M-3
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-4 Certificates (after taking into account
      the
      payment of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the payment of the Class M-5 Principal Distribution
      Amount on such Distribution Date), (v) the Certificate Principal Balance of
      the
      Class M-6 Certificates (after taking into account the payment of the Class
      M-6
      Principal Distribution Amount on such Distribution Date) and (vi) 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) 91.20%
      and
      (ii) 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) and (B) 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) minus the product of (i) 0.50% and (ii) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date.

     

    “Class
      M-8 Certificate”: Any one of the Class M-8 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-8 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of (i) the aggregate Certificate Principal Balance of
      the
      Class A Certificates (after taking into account the payment of the Class A
      Principal Distribution Amount on such Distribution Date), (ii) the aggregate
      Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
      Certificates (after taking into account the payment of the Class M-1/M-2/M-3
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-4 Certificates (after taking into account
      the
      payment of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the payment of the Class M-5 Principal Distribution
      Amount on such Distribution Date), (v) the Certificate Principal Balance of
      the
      Class M-6 Certificates (after taking into account the payment of the Class
      M-6
      Principal Distribution Amount on such Distribution Date), (vi) the Certificate
      Principal Balance of the Class M-7 Certificates (after taking into account
      the
      payment of the Class M-7 Principal Distribution Amount on such Distribution
      Date) and (vii) 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) 92.80% and (ii) 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) and (B) 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) minus the product of
      (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as
      of
      the Cut-off Date.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    “Class
      M-9 Certificate”: Any one of the Class M-9 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-9 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of (i) the aggregate Certificate Principal Balance of
      the
      Class A Certificates (after taking into account the payment of the Class A
      Principal Distribution Amount on such Distribution Date), (ii) the aggregate
      Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
      Certificates (after taking into account the payment of the Class M-1/M-2/M-3
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-4 Certificates (after taking into account
      the
      payment of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the payment of the Class M-5 Principal Distribution
      Amount on such Distribution Date), (v) the Certificate Principal Balance of
      the
      Class M-6 Certificates (after taking into account the payment of the Class
      M-6
      Principal Distribution Amount on such Distribution Date). (vi) the Certificate
      Principal Balance of the Class M-7 Certificates (after taking into account
      the
      payment of the Class M-7 Principal Distribution Amount on such Distribution
      Date), (vii) the Certificate Principal Balance of the Class M-8 Certificates
      (after taking into account the payment of the Class M-8 Principal Distribution
      Amount on such Distribution Date) and (viii) 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) 94.60% and (ii) 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) and
      (B)
      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) minus the product of (i) 0.50% and (ii) the aggregate principal balance
      of the Mortgage Loans as of the Cut-off Date.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    “Class
      M-10 Certificate”: Any one of the Class M-10 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-10 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of (i) the aggregate Certificate Principal Balance of
      the
      Class A Certificates (after taking into account the payment of the Class A
      Principal Distribution Amount on such Distribution Date), (ii) the aggregate
      Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
      Certificates (after taking into account the payment of the Class M-1/M-2/M-3
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-4 Certificates (after taking into account
      the
      payment of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the payment of the Class M-5 Principal Distribution
      Amount on such Distribution Date), (v) the Certificate Principal Balance of
      the
      Class M-6 Certificates (after taking into account the payment of the Class
      M-6
      Principal Distribution Amount on such Distribution Date). (vi) the Certificate
      Principal Balance of the Class M-7 Certificates (after taking into account
      the
      payment of the Class M-7 Principal Distribution Amount on such Distribution
      Date), (vii) the Certificate Principal Balance of the Class M-8 Certificates
      (after taking into account the payment of the Class M-8 Principal Distribution
      Amount on such Distribution Date), (viii) the Certificate Principal Balance
      of
      the Class M-9 Certificates (after taking into account the payment of the Class
      M-9 Principal Distribution Amount on such Distribution Date) and (ix) 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) 95.60%
      and (ii) 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) and (B) 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) minus the product of (i) 0.50% and (ii) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date.

     

    “Class
      M-11 Certificate”: Any one of the Class M-11 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-3 and evidencing (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-11 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of (i) the aggregate Certificate Principal Balance of
      the
      Class A Certificates (after taking into account the payment of the Class A
      Principal Distribution Amount on such Distribution Date), (ii) the aggregate
      Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
      Certificates (after taking into account the payment of the Class M-1/M-2/M-3
      Principal Distribution Amount on such Distribution Date), (iii) the Certificate
      Principal Balance of the Class M-4 Certificates (after taking into account
      the
      payment of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the payment of the Class M-5 Principal Distribution
      Amount on such Distribution Date), (v) the Certificate Principal Balance of
      the
      Class M-6 Certificates (after taking into account the payment of the Class
      M-6
      Principal Distribution Amount on such Distribution Date). (vi) the Certificate
      Principal Balance of the Class M-7 Certificates (after taking into account
      the
      payment of the Class M-7 Principal Distribution Amount on such Distribution
      Date), (vii) the Certificate Principal Balance of the Class M-8 Certificates
      (after taking into account the payment of the Class M-8 Principal Distribution
      Amount on such Distribution Date), (viii) the Certificate Principal Balance
      of
      the Class M-9 Certificates (after taking into account the payment of the Class
      M-9 Principal Distribution Amount on such Distribution Date), (ix) the
      Certificate Principal Balance of the Class M-10 Certificates (after taking
      into
      account the payment of the Class M-10 Principal Distribution Amount on such
      Distribution Date) and (x) the Certificate Principal Balance of the Class M-11
      Certificates immediately prior to such Distribution Date over (y) the lesser
      of
      (A) the product of (i) 97.50% and (ii) 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) and (B) 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) minus
      the product of (i) 0.50% and (ii) the aggregate principal balance of the
      Mortgage Loans as of the Cut-off Date.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    “Class
      P
      Certificate”: Any one of the Class P Certificates executed and authenticated by
      the Securities Administrator and delivered by the Trustee, substantially in
      the
      form annexed hereto as Exhibit A-5 and evidencing a Regular Interest in REMIC
      III for purposes of the REMIC Provisions.

     

    “Class
      R
      Certificates”: Any one of the Class R Certificates executed and authenticated by
      the Securities Administrator and delivered by the Trustee, substantially in
      the
      form annexed hereto as Exhibit A-6, and evidencing the Class R-I Interest,
      the
      Class R-II Interest and the Class R-III Interest.

     

    “Class
      R-I Interest”: The uncertificated residual interest in REMIC I.

     

    “Class
      R-II Interest”: The uncertificated residual interest in REMIC II.

     

    “Class
      R-III Interest”: The uncertificated residual interest in REMIC III.

     

    “Closing
      Date”: November 30, 2006.

     

    “Code”:
      The Internal Revenue Code of 1986 as amended from time to time.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    “Collection
      Account”: The separate account or accounts created and maintained, or caused to
      be created and maintained, by a Servicer pursuant to Section 3.08(a) of
      this Agreement or pursuant to the Servicing Agreement, as applicable, in each
      case for the benefit of the Certificateholders. The Collection Account
      established by Countrywide which shall be entitled “Countrywide Home Loans
      Servicing LP, as the Servicer for HSBC Bank USA, National Association as
      Trustee, in trust for the registered holders of ACE Securities Corp., Home
      Equity Loan Trust, Series 2006-NC3, Asset Backed Pass-Through Certificates”. The
      Collection Account established by New Century shall be in accordance with the
      terms of the Servicing Agreement. The Collection Account must be an Eligible
      Account.

     

    “Commission”:
      The Securities and Exchange Commission.

     

    “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 or the
      Securities Administrator, as the case may be, at which, at any particular time,
      its corporate trust business in connection with this Agreement shall be
      administered, which office at the date of the execution of this instrument
      is
      located at (i) with respect to the Trustee, HSBC Bank USA, National Association,
      452 Fifth Avenue, New York, New York 10018, Attention: CLTA Structured
      Finance/ACE Securities Corp., 2006-NC3, or at such other address as the Trustee
      may designate from time to time by notice to the Certificateholders, the
      Depositor, the Master Servicer, the Securities Administrator and the Servicer
      and (ii) with respect to the Securities Administrator, (A) for purposes of
      Certificate transfers and surrender, Wells Fargo Bank, National Association,
      Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479, Attention:
      Corporate Trust (ACE 2006-NC3), and (B) for all other purposes, Wells Fargo
      Bank, National Association, P.O. Box 98, Columbia, Maryland 21046, Attention:
      Corporate Trust (ACE 2006-NC3) (or for overnight deliveries, at 9062 Old
      Annapolis Road, Columbia, Maryland 21045, Attention: Corporate Trust (ACE
      2006-NC3)), 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, the Servicer and the Trustee.

     

    “Corresponding
      Certificate”: With respect to each REMIC II Regular Interest, as
      follows:

     

    
      	
              REMIC
                II Regular Interest

            	 	
              Class

            
	
              REMIC
                II Regular Interest A-1A

            	 	
              A-1A

            
	
              REMIC
                II Regular Interest A-1B

            	 	
              A-1B

            
	
              REMIC
                II Regular Interest A-2A

            	 	
              A-2A

            
	
              REMIC
                II Regular Interest A-2B

            	 	
              A-2B

            
	
              REMIC
                II Regular Interest A-2C

            	 	
              A-2C

            
	
              REMIC
                II Regular Interest A-2D

            	 	
              A-2D

            
	
              REMIC
                II Regular Interest M-1

            	 	
              M-1

            
	
              REMIC
                II Regular Interest M-2

            	 	
              M-2

            
	
              REMIC
                II Regular Interest M-3

            	 	
              M-3

            
	
              REMIC
                II Regular Interest M-4

            	 	
              M-4

            
	
              REMIC
                II Regular Interest M-5

            	 	
              M-5

            
	
              REMIC
                II Regular Interest M-6

            	 	
              M-6

            
	
              REMIC
                II Regular Interest M-7

            	 	
              M-7

            
	
              REMIC
                II Regular Interest M-8

            	 	
              M-8

            
	
              REMIC
                II Regular Interest M-9

            	 	
              M-9

            
	
              REMIC
                II Regular Interest M-10

            	 	
              M-10

            
	
              REMIC
                II Regular Interest M-11

            	 	
              M-11

            
	
              REMIC
                II Regular Interest P

            	 	
              P

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    
 

    “Countrywide”:
      Countrywide Home Loans Servicing LP or any successor thereto appointed hereunder
      in connection with the servicing and administration of the Mortgage
      Loans.

     

    “Countrywide
      Mortgage Loans”: The Mortgage Loans being serviced by Countrywide pursuant to
      the terms of this Agreement as specified on the Mortgage Loan Schedule (which
      shall include the New Century Mortgage Loans on and after the Servicing Transfer
      Date).

     

    “Credit
      Enhancement Percentage”: For any Distribution Date, the percentage equivalent of
      a fraction, the numerator of which is the sum of the aggregate Certificate
      Principal Balances of the Mezzanine Certificates and the Class CE Certificates,
      and the denominator of which is the aggregate Stated Principal Balance of the
      Mortgage Loans, calculated after taking into account distributions of principal
      on the Mortgage Loans and distribution of the Principal Distribution Amount
      to
      the Certificates then entitled to distributions of principal on such
      Distribution Date.

     

    “Credit
      Risk Management Agreements”: The agreements between the Credit Risk Manager and
      each Servicer and/or Master Servicer, each regarding the loss mitigation and
      advisory services to be provided by the Credit Risk Manager.

     

    “Credit
      Risk Management Fee”: The amount payable to the Credit Risk Manager on each
      Distribution Date as compensation for all services rendered by it in the
      exercise and performance of any and all powers and duties of the Credit Risk
      Manager under the Credit Risk Management Agreements, which amount shall equal
      one twelfth of the product of (i) the Credit Risk Management Fee Rate multiplied
      by (ii) the Stated Principal Balance of the Mortgage Loans and any related
      REO
      Properties as of the first day of the related Due Period.

     

    “Credit
      Risk Management Fee Rate”: 0.0135% per annum.

     

    “Credit
      Risk Manager”: Clayton Fixed Income Services Inc. (formerly known as The
      Murrayhill Company), a Colorado corporation, and its successors and
      assigns.

     

    “Custodial
      Agreement”: The Custodial Agreement dated as of November 1, 2006, among the
      Trustee, DBNTC and the Servicers, as may be amended or supplemented from time
      to
      time, or any other custodial agreement entered into after the date hereof with
      respect to any Mortgage Loan subject to this Agreement.

     

    
      
        
        

      

      
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    “Custodian”:
      DBNTC or any other custodian appointed under any custodial agreement entered
      into after the date of this Agreement.

     

    “Cut-off
      Date”: With respect to each Mortgage Loan, November 1, 2006. 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 such Mortgage
      Loans.

     

    “DBNTC”:
      Deutsche Bank National Trust Company, a national banking association, or its
      successor in interest.

     

    “DBRS”:
      Dominion Bond Rating Service, or any successor in interest.

     

    “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.

     

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

     

    “Definitive
      Certificates”: As defined in Section 6.01(b) of this
      Agreement.

     

    “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 Stated
      Principal Balance of all Mortgage Loans that, as of the last day of the previous
      calendar month, are sixty (60) or more days delinquent, are in foreclosure,
      have
      been converted to REO Properties or have been discharged by reason of
      bankruptcy, and the denominator of which is the aggregate Stated Principal
      Balance of the Mortgage Loans and REO Properties as of the last day of the
      previous calendar month.

     

    “Depositor”:
      ACE Securities Corp., a Delaware corporation, or its successor in
      interest.

     

    “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(3) 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 A-1+ by S&P, F-1+ by Fitch and P-1 by
      Moody’s(or, if such Rating Agencies are no longer rating the Offered
      Certificates, comparable ratings by any other nationally recognized statistical
      rating agency then rating the Offered Certificates).

     

    
      
        
        

      

      
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    “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 18th day of the calendar
      month in which such Distribution Date occurs, or if such 18th day is not a
      Business Day, the Business Day immediately preceding such 18th day. The
      Determination Date for purposes of Article X hereof shall mean the
      15th
      day of
      the month or, if such 15th
      day is
      not a Business Day, the first Business Day following 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 a Servicers, on behalf of the Trustee,
      shall
      not be considered to Directly Operate an REO Property solely because such
      Servicer establishes rental terms, chooses tenants, enters into or renews
      leases, deals with taxes and insurance, or makes decisions as to repairs or
      capital expenditures with respect to such REO Property.

     

    “Disqualified
      Organization”: 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 so designated by the Trustee based upon an Opinion of
      Counsel 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.

     

    
      
        
        

      

      
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    “Distribution
      Account”: The separate trust account or accounts created and maintained by the
      Securities Administrator pursuant to Section 3.08(b) of this Agreement in
      the name of the Securities Administrator for the benefit of the
      Certificateholders and designated “Wells Fargo Bank, National Association, in
      trust for registered holders of ACE Securities Corp. Home Equity Loan Trust,
      Series 2006-NC3”. Funds in the Distribution Account shall be held in trust for
      the Certificateholders for the uses and purposes set forth in this Agreement.
      The Distribution Account must be an Eligible Account.

     

    “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 October
      2006.

     

    “Due
      Date”: With respect to each Distribution Date, the day of the month on which the
      Monthly Payment is due on a Mortgage Loan during the related Due Period,
      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 in which
      such
      Distribution Date occurs. 

     

    “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, (iii) a trust account or accounts maintained with a federal
      depository institution or state chartered depository institution acting in
      its
      fiduciary capacity or (iv) an account or accounts acceptable to each Rating
      Agency as confirmed and approved in writing by each Rating Agency. Eligible
      Accounts may bear interest.

     

    “ERISA”:
      The Employee Retirement Income Security Act of 1974, as amended from time to
      time.

     

    “Estate
      in Real Property”: A fee simple estate in a parcel of land.

     

    “Excess
      Liquidation Proceeds”: To the extent that such amount is not required by law to
      be paid to the related Mortgagor, the amount, if any, by which Liquidation
      Proceeds with respect to a liquidated Mortgage Loan exceed the sum of (i) the
      outstanding principal balance of such Mortgage Loan and accrued but unpaid
      interest at the related Net Mortgage Rate through the last day of the month
      in
      which the related Liquidation Event occurs, plus (ii) related liquidation
      expenses or other amounts to which the related Servicer is entitled to be
      reimbursed from Liquidation Proceeds with respect to such liquidated Mortgage
      Loan pursuant to Section 3.09 of this Agreement or pursuant to the
      Servicing Agreement, as applicable.

     

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

     

    “Extraordinary
      Trust Fund Expense”: Any amounts payable or reimbursable to the Trustee, the
      Master Servicer, the Securities Administrator, the Custodian or any director,
      officer, employee or agent of any such Person from the Trust Fund pursuant
      to
      the terms of this Agreement and any amounts payable from the Distribution
      Account in respect of taxes pursuant to Section 11.01(g)(v) of this
      Agreement.

     

    
      
        
        

      

      
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    “Fannie
      Mae”: Fannie Mae, formerly known as the Federal National Mortgage Association,
      or any successor thereto.

     

    “FDIC”:
      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, the Sponsor or the Master Servicer pursuant to or as contemplated
      by
      Section 2.03, 3.13(c) or Section 10.01 of this Agreement), a
      determination made by the related Servicer that all Insurance Proceeds,
      Liquidation Proceeds and other payments or recoveries which such Servicer,
      in
      its reasonable good faith judgment, expects to be finally recoverable in respect
      thereof have been so recovered, which determination shall be evidenced by a
      certificate of a Servicing Officer of the related Servicer delivered to the
      Master Servicer and maintained in its records.

     

    “Fitch”:
      Fitch Ratings or any successor in interest.

     

    “Form
      8-K
      Disclosure Information”: Either has the meaning set forth in
      Section 5.06(b) of this Agreement or with respect to the Servicer, shall be
      limited to the information set forth in Section 3.19(f)(i) and 3.19(g) of
      this Agreement as set forth in the Servicing Agreement, as
      applicable.

     

    “Freddie
      Mac”: Freddie Mac, formerly known as the Federal Home Loan Mortgage Corporation,
      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.

     

    “Group
      IA
      Allocation Percentage”: The aggregate principal balance of the Group IA Mortgage
      Loans divided by the sum of the aggregate principal balance of the Group IA
      Mortgage Loans, Group
      IB
      Mortgage Loans and
      Group
      II Mortgage Loans.

     

    “Group
      IA
      Interest Remittance Amount”: With respect to any Distribution Date, that portion
      of the Available Distribution Amount for such Distribution Date that represents
      interest received or advanced on the Group IA Mortgage Loans (net of the
      Administration Fees and any Prepayment Charges and after taking into account
      amounts payable or reimbursable to the Trustee, the Custodian, the Securities
      Administrator, the Credit Risk Manager, the Master Servicer or the Servicer
      pursuant to this Agreement or the Custodial Agreement with respect to the Group
      IA Mortgage Loans).

     

    “Group
      IA
      Mortgage Loans”: Those Mortgage Loans identified on the Mortgage Loan Schedule
      as Group IA Mortgage Loans.

     

    
      
        
        

      

      
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    “Group
      IA
      Principal Distribution Amount”: With respect to any Distribution Date, the sum
      of (i) the principal portion of all Monthly Payments on the Group IA Mortgage
      Loans due during the related Due Period, whether or not received on or prior
      to
      the related Determination Date; (ii) the principal portion of all proceeds
      received in respect of the repurchase of a Group IA Mortgage Loan or, in the
      case of a substitution, certain amounts representing a principal adjustment,
      during the related Prepayment Period pursuant to or as contemplated by
      Section 2.03, Section 3.13(c) and Section 10.01 of this
      Agreement; (iii) the principal portion of all other unscheduled collections,
      including Insurance Proceeds, Liquidation Proceeds and all Principal Prepayments
      in full and in part, received during the related Prepayment Period, to the
      extent applied as recoveries of principal on the Group IA Mortgage Loans, net
      in
      each case of payments or reimbursements to the Trustee, the Custodian, the
      Credit Risk Manager, the Master Servicer, the Securities Administrator or the
      Servicers and (iv) the Class A-1A Allocation Percentage of the amount of any
      Overcollateralization Increase Amount for such Distribution Date minus
      (v) the
      Class A-1A Allocation Percentage of the amount of any Overcollateralization
      Reduction Amount for such Distribution Date.

     

    “Group
      IA
      Principal Remittance Amount”: With respect to any Distribution Date, the sum of
      (a) the amounts described in clauses (i) through (iii) of the definition of
      Group IA Principal Distribution Amount.

     

    “Group
      IB
      Allocation Percentage”: The aggregate principal balance of the Group IB Mortgage
      Loans divided by the sum of the aggregate principal balance of the Group IA
      Mortgage Loans, Group IB Mortgage Loans and Group II Mortgage
      Loans.

     

    “Group
      IB
      Interest Remittance Amount”: With respect to any Distribution Date is that
      portion of the Available Distribution Amount for such Distribution Date that
      represents interest received or advanced on the Group IB Mortgage Loans (net
      of
      the Administration Fees and any Prepayment Charges and after taking into account
      amounts payable or reimbursable to the Trustee, the Custodians, the Securities
      Administrator, the Master Servicer, the Servicers or the Credit Risk Manager
      pursuant to this Agreement or the Custodial Agreements with respect to the
      Group
      IB Mortgage Loans).

     

    “Group
      IB
      Mortgage Loans”: Those Mortgage Loans identified on the Mortgage Loan Schedule
      as Group IB Mortgage Loans.

     

    “Group
      IB
      Principal Distribution Amount”: With respect to any Distribution Date the sum of
      (i) the principal portion of all Monthly Payments on the Group IB Mortgage
      Loans
      due during the related Due Period, whether or not received on or prior to the
      related Determination Date; (ii) the principal portion of all proceeds received
      in respect of the repurchase of a Group IB Mortgage Loan or, in the case of
      a
      substitution, certain amounts representing a principal adjustment, during the
      related Prepayment Period pursuant to or as contemplated by Section 2.03,
      Section 3.13(c) and Section 10.01 of this Agreement; (iii) the principal portion
      of all other unscheduled collections, including Insurance Proceeds, Liquidation
      Proceeds and all Principal Prepayments in full and in part, received during
      the
      related Prepayment Period, to the extent applied as recoveries of principal
      on
      the Group IB Mortgage Loans, net in each case of payments or reimbursements
      to
      the Trustee, the Custodians, the Master Servicer, the Securities Administrator,
      the Servicers or the Credit Risk Manager and (iv) the Class A-1B Allocation
      Percentage of the amount of any Overcollateralization Increase Amount for such
      Distribution Date minus
      (v) the
      Class A-1B Allocation Percentage of the amount of any Overcollateralization
      Reduction Amount for such Distribution Date.

     

    
      
        
        

      

      
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    “Group
      IB
      Principal Remittance Amount”: With respect to any Distribution Date the sum of
      the amounts described in clauses (i) through (iii) of the definition of
      Group IB Principal Distribution Amount.

     

    “Group
      II
      Allocation Percentage”: The aggregate principal balance of the Group II Mortgage
      Loans divided by the sum of the aggregate principal balance of the Group
      IA
      Mortgage Loans, Group IB Mortgage Loans and Group II Mortgage Loans.

     

    “Group
      II
      Interest Remittance Amount”: With respect to any Distribution Date, that portion
      of the Available Distribution Amount for such Distribution Date that represents
      interest received or advanced on the Group II Mortgage Loans (net of the
      Administration Fees and any Prepayment Charges and after taking into account
      amounts payable or reimbursable to the Trustee, the Custodian, the Securities
      Administrator, the Credit Risk Manager, the Master Servicer or the Servicers
      pursuant to this Agreement or the Custodial Agreement with respect to the Group
      II Mortgage Loans).

     

    “Group
      II
      Mortgage Loans”: Those Mortgage Loans identified on the Mortgage Loan Schedule
      as Group II Mortgage Loans.

     

    “Group
      II
      Principal Distribution Amount”: With respect to any Distribution Date, the sum
      of (i) the principal portion of all Monthly Payments on the Group II Mortgage
      Loans due during the related Due Period, whether or not received on or prior
      to
      the related Determination Date; (ii) the principal portion of all proceeds
      received in respect of the repurchase of a Group II Mortgage Loan or, in the
      case of a substitution, certain amounts representing a principal adjustment,
      during the related Prepayment Period pursuant to or as contemplated by
      Section 2.03, Section 3.13(c) and Section 10.01 of this
      Agreement; (iii) the principal portion of all other unscheduled collections,
      including Insurance Proceeds, Liquidation Proceeds and all Principal Prepayments
      in full and in part, received during the related Prepayment Period, to the
      extent applied as recoveries of principal on the Group II Mortgage Loans, net
      in
      each case of payments or reimbursements to the Trustee, the Custodian, the
      Credit Risk Manager, the Master Servicer, the Securities Administrator or the
      Servicers and (iv) the Class A-2 Allocation Percentage of the amount of any
      Overcollateralization Increase Amount for such Distribution Date minus
      (v) the
      Class A-2 Allocation Percentage of the amount of any Overcollateralization
      Reduction Amount for such Distribution Date.

     

    “Group
      II
      Principal Remittance Amount”: With respect to any Distribution Date, the sum of
      the amounts described in clauses (i) through (iii) of the definition of Group
      II
      Principal Distribution Amount.

     

    “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. When used with
      respect to any specified Person, any such Person who (a) is in fact independent
      of the Depositor, the Master Servicer, the Securities Administrator, the
      Servicers, the Sponsor, the originator and their respective Affiliates, (b)
      does
      not have any direct financial interest in or any material indirect financial
      interest in the Depositor, the Master Servicer, the Securities Administrator,
      the Servicers, the Sponsor, the originator or any Affiliate thereof, (c) is
      not
      connected with the Depositor, the Master Servicer, the Securities Administrator,
      the Servicers, the Sponsor, the originator or any Affiliate thereof 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 on clause (b) or (c) above.

     

    
      
        
        

      

      
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    “Independent
      Contractor”: Either (i) any Person (other than a 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 any
      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.

     

    “Index”:
      As of any Adjustment Date, the index applicable to the determination of the
      Mortgage Rate on each Adjustable Rate Mortgage Loan will generally be the
      average of the interbank offered rates for six-month United States dollar
      deposits in the London market as published in The
      Wall Street Journal and
      as
      most recently available either (a) as of the first Business Day forty-five
      (45)
      days prior to such Adjustment Date or (b) as of the first Business Day of the
      month preceding the month of such Adjustment Date, as specified in the related
      Mortgage Note.

     

    “Institutional
      Accredited Investor”: As defined in Section 6.01(c).

     

    “Insurance
      Proceeds”: Proceeds of any title policy, hazard policy or other insurance
      policy, covering a Mortgage Loan or the related Mortgaged Property, to the
      extent such proceeds are not to be applied to the restoration of the related
      Mortgaged Property or released to the Mortgagor or a senior lienholder in
      accordance with Accepted Servicing Practices, 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 immediately preceding the month in which
      such
      Distribution Date occurs.

     

    
      
        
        

      

      
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    “Interest
      Carry Forward Amount”: With respect to any Distribution Date and any Class A
      Certificate or Mezzanine Certificate, the sum of (i) the amount, if any, by
      which (a) the Interest Distribution Amount for such Class as of the immediately
      preceding Distribution Date exceeded (b) the actual amount distributed on such
      Class in respect of interest on such immediately preceding Distribution Date
      and
      (ii) the amount of any Interest Carry Forward Amount for such Class remaining
      unpaid from the previous Distribution Date, plus accrued interest on such sum
      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 Interests and REMIC II Regular Interests (other
      than REMIC II Regular Interest P) 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 any Class A
      Certificates, any Mezzanine Certificates and any Class CE Certificates, the
      aggregate Accrued Certificate Interest on the Certificates of such Class for
      such Distribution Date.

     

    “Interest
      Remittance Amount”: With respect to any Distribution Date, the sum of: (i) the
      Group IA Interest Remittance Amount, (ii) the Group IB Interest Remittance
      Amount and (iii) the Group II Interest Remittance Amount.

     

    “Last
      Scheduled Distribution Date”: The Distribution Date in December 2036, which is
      the Distribution Date immediately following the maturity date for the Mortgage
      Loan with the latest maturity date.

     

    “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 with respect to such Mortgage Loan, 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 3.13(c) or Section 10.01 of this Agreement.
      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 10.01 of this Agreement.

     

    “Liquidation
      Proceeds”: The amount (other than Insurance Proceeds, amounts received in
      respect of the rental of any REO Property prior to REO Disposition, or required
      to be released to a Mortgagor or a senior lienholder in accordance with
      applicable law or the terms of the related Mortgage Loan Documents) received
      by
      a 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 (other
      than
      amounts required to be released to the Mortgagor or a senior lienholder), (ii)
      the liquidation of a defaulted Mortgage Loan through a trustee’s sale,
      foreclosure sale or otherwise, (iii) the repurchase, substitution or sale of
      a
      Mortgage Loan or an REO Property pursuant to or as contemplated by
      Section 2.03, Section 3.13(c), Section 3.21 or Section 10.01
      of this Agreement or the Servicing Agreement or (iv) any Subsequent Recoveries.
      

     

    
      
        
        

      

      
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    “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 Cities of London and New York are
      open and conducting transactions in United States dollars.

     

    “Loss
      Severity Percentage”: With respect to any Distribution Date, the percentage
      equivalent of a fraction, the numerator of which is the amount of Realized
      Losses incurred on a Mortgage Loan and the denominator of which is the principal
      balance of such Mortgage Loan immediately prior to the liquidation of such
      Mortgage Loan.

     

    “Marker
      Rate”: With respect to the Class CE Certificates and any Distribution Date, a
      per annum rate equal to two (2) times the weighted average of the REMIC II
      Remittance Rate for each of REMIC II Regular Interest A-1A, REMIC II Regular
      Interest A-1B, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B,
      REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular
      Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3,
      REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular
      Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest M-8,
      REMIC II Regular Interest M-9, REMIC II Regular Interest M-10, REMIC II Regular
      Interest M-11 and REMIC II Regular Interest ZZ, with the rate on each such
      REMIC
      II Regular Interest (other than REMIC II Regular Interest ZZ) subject to a
      cap
      equal to the lesser of (i) the related One-Month LIBOR Pass-Through Rate and
      (ii) the related Net WAC Pass-Through Rate for the Corresponding Certificate
      for
      the purpose of this calculation for such Distribution Date and with the rate
      on
      REMIC II Regular Interest ZZ subject to a cap of zero for the purpose of this
      calculation; provided however, each such cap for each REMIC II Regular Interest
      (other than REMIC II Regular Interest ZZ) shall be multiplied by a fraction
      the
      numerator of which is the actual number of days in the related Interest Accrual
      Period and the denominator of which is 30.

     

    “Master
      Servicer”: As of the Closing Date, Wells Fargo Bank, National Association and
      thereafter, its respective successors in interest who meet the qualifications
      of
      this Agreement. The Master Servicer and the Securities Administrator shall
      at
      all times be the same Person or an Affiliate.

     

    “Master
      Servicer Event of Default”: One or more of the events described in
      Section 8.01(b) of this Agreement.

     

    “Master
      Servicing Fee”: With respect to each Mortgage Loan and for any calendar month,
      an amount equal to one-twelfth of the product of the Master Servicing Fee Rate
      multiplied by the Scheduled Principal Balance of the Mortgage Loans as of the
      Due Date in the preceding calendar month.

     

    
      
        
        

      

      
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    “Master
      Servicing Fee Rate”: 0.00% per annum.

     

    “Maximum
      ZZ Uncertificated Interest Deferral Amount”: With respect to any Distribution
      Date, the excess of (i) accrued interest at the REMIC II Remittance Rate
      applicable to REMIC II Regular Interest ZZ for such Distribution Date on a
      balance equal to the Uncertificated Balance of REMIC II Regular Interest ZZ
      minus the REMIC II Overcollateralization Amount, in each case for such
      Distribution Date, over (ii) Uncertificated Interest on REMIC II Regular
      Interest A-1A, REMIC II Regular Interest A-1B, REMIC II Regular Interest A-2A,
      REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular
      Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2,
      REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular
      Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest M-7,
      REMIC II Regular Interest M-8, REMIC II Regular Interest M-9, REMIC II Regular
      Interest M-10 and REMIC II Regular Interest M-11 for such Distribution Date,
      with the rate on each such REMIC II Regular Interest subject to a cap equal
      to
      the lesser of (i) the related One-Month LIBOR Pass-Through Rate and (ii) the
      related Net WAC Pass-Through Rate for the Corresponding Certificate for the
      purpose of this calculation for such Distribution Date; provided however, each
      such cap for each REMIC II Regular Interest shall be multiplied by a fraction
      the numerator of which is the actual number of days in the related Interest
      Accrual Period and the denominator of which is 30.

     

    “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.

     

    “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
      Certificate”: Any 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 or Class M-11
      Certificate.

     

    “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 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.

     

    
      
        
        

      

      
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    “Monthly
      Payment”: With respect to any Mortgage Loan, the scheduled monthly payment of
      principal and interest on such Mortgage Loan which is payable by the related
      Mortgagor from time to time under the related Mortgage Note, determined: (a)
      after giving effect to (i) any Deficient Valuation and/or Debt Service Reduction
      with respect to such Mortgage Loan and (ii) any reduction in the amount of
      interest collectible from the related Mortgagor pursuant to the Relief Act
      or
      similar state or local laws; (b) without giving effect to any extension granted
      or agreed to by the related Servicer pursuant to Section 3.01 of this
      Agreement or pursuant to the Servicing Agreement, as applicable; 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 any successor in interest.

     

    “Mortgage”:
      The mortgage, deed of trust or other instrument creating a first or second
      lien
      on, or first or second priority security interest in, a Mortgaged Property
      securing a Mortgage Note.

     

    “Mortgage
      File”: The Mortgage Loan Documents pertaining to a particular Mortgage
      Loan.

     

    “Mortgage
      Loan”: Each mortgage loan transferred and assigned to the Trustee and the
      Mortgage Loan Documents for which have been delivered to the Custodian pursuant
      to Section 2.01 of this Agreement and pursuant to the Custodial 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 Documents”: The documents evidencing or relating to each Mortgage Loan
      delivered to the Custodian under the Custodial Agreement on behalf of the
      Trustee.

     

    “Mortgage
      Loan Purchase Agreement”: Shall mean the Mortgage Loan Purchase Agreement dated
      as of November 30, 2006, between the Depositor and the Sponsor a copy of which
      is attached hereto as Exhibit
      F.

     

    “Mortgage
      Loan Schedule”: As of any date, the list of Mortgage Loans included in REMIC I
      on such date, separately identifying the Group IA Mortgage Loans, Group IB
      Mortgage Loans and the Group II Mortgage Loans, attached hereto as Schedule
      1.
      The Depositor shall deliver or cause the delivery of the initial Mortgage Loan
      Schedule to the related Servicer, the Master Servicer, the Custodian and the
      Trustee on the Closing Date. The Mortgage Loan Schedule shall set forth the
      following information with respect to each Mortgage Loan:

     

    (i) the
      Mortgage Loan identifying number;

     

    (ii) the
      Mortgagor’s first and last name;

     

    (iii) the
      street address of the Mortgaged Property including the state and zip
      code;

     

    
      
        
        

      

      
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    (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) the
      Mortgage Rate in effect immediately following the Cut-off Date;

     

    (x) the
      date
      on which the first Monthly Payment was due on the Mortgage Loan;

     

    (xi) the
      stated maturity date;

     

    (xii) the
      amount of the Monthly Payment at origination;

     

    (xiii) the
      amount of the Monthly Payment as of the Cut-off Date;

     

    (xiv) the
      last
      Due Date on which a Monthly Payment was actually applied to the unpaid Stated
      Principal Balance;

     

    (xv) the
      original principal amount of the Mortgage Loan;

     

    (xvi) the
      Stated Principal Balance of the Mortgage Loan as of the close of business on
      the
      Cut-off Date;

     

    (xvii) with
      respect to each Adjustable Rate Mortgage Loan, the first Adjustment
      Date;

     

    (xviii) with
      respect to each Adjustable Rate Mortgage Loan, the Gross Margin;

     

    (xix) a
      code
      indicating the purpose of the loan (i.e., purchase financing, rate/term
      refinancing, cash-out refinancing);

     

    (xx) with
      respect to each Adjustable Rate Mortgage Loan, the Maximum Mortgage Rate under
      the terms of the Mortgage Note;

     

    (xxi) with
      respect to each Adjustable Rate Mortgage Loan, the Minimum Mortgage Rate under
      the terms of the Mortgage Note;

     

    (xxii) the
      Mortgage Rate at origination;

     

    
      
        
        

      

      
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    (xxiii) with
      respect to each Adjustable Rate Mortgage Loan, the Periodic Rate
      Cap;

     

    (xxiv) with
      respect to each Adjustable Rate Mortgage Loan, the first Adjustment Date
      immediately following the Cut-off Date;

     

    (xxv) with
      respect to each Adjustable Rate Mortgage Loan, the Index;

     

    (xxvi) the
      date
      on which the first Monthly Payment was due on the Mortgage Loan and, if such
      date is not consistent with the Due Date currently in effect, such Due
      Date;

     

    (xxvii) a
      code
      indicating whether the Mortgage Loan is an Adjustable Rate Mortgage Loan or
      a
      fixed rate Mortgage Loan;

     

    (xxviii) 
      a code
      indicating the documentation style (i.e., full, stated or limited);

     

    (xxix) a
      code
      indicating if the Mortgage Loan is subject to a primary insurance policy or
      lender paid mortgage insurance policy and the name of the insurer and, if
      applicable, the rate payable in connection therewith;

     

    (xxx) the
      Appraised Value of the Mortgaged Property;

     

    (xxxi) the
      sale
      price of the Mortgaged Property, if applicable;

     

    (xxxii) 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;

     

    (xxxiii) the
      product type (e.g., 2/28, 15 year fixed, 30 year fixed, 15/30 balloon,
      etc.);

     

    (xxxiv) the
      Mortgagor’s debt to income ratio; 

     

    (xxxv) the
      FICO
      score at origination; 

     

    (xxxvi) with
      respect to each Mortgage Loan registered on MERS, the MIN;

     

    (xxxvii) a
      code
      indicating whether the Mortgage Loan is secured by a first or second lien;
      

     

    (xxxviii) the
      related Servicer; and

     

    (xxxix) the
      Custodian.

     

    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; (2) the current principal balance of the Mortgage Loans; (3)
      the
      weighted average Mortgage Rate of the Mortgage Loans; and (4) the weighted
      average maturity of the Mortgage Loans. The Mortgage Loan Schedule shall be
      amended from time to time by the 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.

     

    
      
        
        

      

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

     

    “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 with respect to each
      Adjustable Rate Mortgage Loan (A) as of any date of determination until the
      first Adjustment Date following the Cut-off Date shall be the rate set forth
      in
      the Mortgage Loan Schedule as the Mortgage 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
      to
      the nearest 0.125% 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”: The underlying property securing a Mortgage Loan, including any REO
      Property, consisting of an Estate in Real Property improved by a Residential
      Dwelling.

     

    “Mortgagor”:
      The obligor on a Mortgage Note.

     

    “Net
      Monthly Excess Cashflow”: With respect to any Distribution Date, the sum of (i)
      any Overcollateralization Reduction Amount for such Distribution Date 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 aggregate Senior Interest
      Distribution Amounts payable to the Holders of the Class A Certificates, (B)
      the
      aggregate Interest Distribution Amounts payable to the holders of the Mezzanine
      Certificates, (C) the Principal Remittance Amount and (D) any Net Swap Payment
      or Swap Termination Payment (not caused by the occurrence of a Swap Provider
      Trigger Event) owed to the Swap Provider.

     

    “Net
      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 for such Mortgage Loan minus the Administration Fee
      Rate.

     

    
      
        
        

      

      
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    “Net
      Swap
      Payment”: With respect to each Distribution Date, the net payment required to be
      made pursuant to the terms of the Swap Agreement by either the Swap Provider
      or
      the Securities Administrator from the Supplemental Interest Trust, which net
      payment shall not take into account any Swap Termination Payment.

     

    “Net
      WAC
      Pass-Through Rate”: With respect to the Class A-1A Certificates and any
      Distribution Date, a rate per annum (adjusted for the actual number of days
      elapsed in the related Interest Accrual Period) equal to the product of (i)
      twelve and (ii) a fraction, expressed as a percentage, the numerator of which
      is
      the amount of interest which accrued on the Group IA Mortgage Loans in the
      related Due Period minus the fees payable to the Servicers, the Master Servicer
      and the Credit Risk Manager with respect to the Group IA Mortgage Loans for
      such
      Distribution Date and the Group IA Allocation Percentage of any Net Swap Payment
      payable to the Swap Provider and Swap Termination Payment payable to the Swap
      Provider which was not caused by the occurrence of a Swap Provider Trigger
      Event, in each case for such Distribution Date and the denominator of which
      is
      the aggregate principal balance of the Group IA Mortgage Loans as of the last
      day of the immediately preceding Due Period (or as of the Cut-off Date with
      respect to the first Distribution Date). For federal income tax purposes, such
      rate shall be a rate per annum (adjusted for the actual number of days elapsed
      in the related Interest Accrual Period) equal to the weighted average of the
      REMIC II Remittance Rate on REMIC II Regular Interest I-GRP, weighted on the
      basis of the Uncertificated Balance of such REMIC II Regular
      Interest.

     

    With
      respect to the Class A-1B Certificates and any Distribution Date, a rate per
      annum (adjusted for the actual number of days elapsed in the related Interest
      Accrual Period) equal to the product of (i) twelve and (ii) a fraction,
      expressed as a percentage, the numerator of which is the amount of interest
      which accrued on the Group IB Mortgage Loans in the related Due Period minus
      the
      fees payable to the Servicer, the Master Servicer and the Credit Risk Manager
      with respect to the Group IB Mortgage Loans for such Distribution Date and
      the
      Group IB Allocation Percentage of any Net Swap Payment payable to the Swap
      Provider and Swap Termination Payment payable to the Swap Provider which was
      not
      caused by the occurrence of a Swap Provider Trigger Event (to the extent such
      amount has not been paid by the Securities Administrator from any upfront
      payment received pursuant to any related replacement interest rate swap
      agreement that may be entered into by the Trustee on behalf of the Supplemental
      Interest Trust), in each case for such Distribution Date and the denominator
      of
      which is the aggregate principal balance of the Group IB Mortgage Loans as
      of
      the last day of the immediately preceding Due Period (or as of the Cut-off
      Date
      with respect to the first Distribution Date) after giving effect to principal
      prepayments received during the related Prepayment Period which were distributed
      on the immediately preceding Distribution Date. For federal income tax purposes,
      such rate shall be expressed as the weighted average of (adjusted for the actual
      number of days elapsed in the related Interest Accrual Period) the REMIC II
      Remittance Rate on REMIC II Regular Interest IB-GRP, weighted on the basis
      of
      the Uncertificated Balance of such REMIC II Regular Interest.

     

    With
      respect to the Class A-2 Certificates and any Distribution Date, a rate per
      annum (adjusted for the actual number of days elapsed in the related Interest
      Accrual Period) equal to the product of (i) twelve and (ii) a fraction,
      expressed as a percentage, the numerator of which is the amount of interest
      which accrued on the Group II Mortgage Loans in the related Due Period minus
      the
      fees payable to the Servicers, the Master Servicer and the Credit Risk Manager
      with respect to the Group II Mortgage Loans for such Distribution Date and
      the
      Group II Allocation Percentage of any Net Swap Payment payable to the Swap
      Provider and Swap Termination Payment payable to the Swap Provider which was
      not
      caused by the occurrence of a Swap Provider Trigger Event, in each case for
      such
      Distribution Date and the denominator of which is the aggregate principal
      balance of the Group II Mortgage Loans as of the last day of the immediately
      preceding Due Period (or as of the Cut-off Date with respect to the first
      Distribution Date). For federal income tax purposes, such rate shall be a rate
      per annum (adjusted for the actual number of days elapsed in the related
      Interest Accrual Period) equal to the weighted average of the REMIC II
      Remittance Rate on REMIC II Regular Interest II-GRP, weighted on the basis
      of
      the Uncertificated Balance of such REMIC II Regular Interest.

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    With
      respect to the Mezzanine Certificates and any Distribution Date a rate per
      annum
      equal to the weighted average (weighted in proportion to the results of
      subtracting from the Scheduled Principal Balance of each loan group, the
      Certificate Principal Balance of the related Class A Certificates), of (i)
      the
      Net WAC Pass-Through Rate for the Class A-1A Certificates, (ii) the Net WAC
      Pass-Through Rate for the Class A-1B Certificates and (iii) the Net WAC
      Pass-Through Rate for the Class A-2 Certificates. For federal income tax
      purposes, such rate shall be a rate per annum (adjusted for the actual number
      of
      days elapsed in the related Interest Accrual Period) equal to the weighted
      average of the REMIC II Remittance Rates on (a) REMIC II Regular Interest
      IA-SUB, subject to a cap and a floor equal to the REMIC II Remittance Rate
      on
      REMIC II Regular Interest IA-GRP, (b) REMIC II Regular Interest IB-SUB, subject
      to a cap and a floor equal to the REMIC II Remittance Rate on REMIC II Regular
      Interest IB-GRP and (c) REMIC II Regular Interest II-SUB, subject to a cap
      and a
      floor equal to the REMIC II Remittance Rate on REMIC II Regular Interest II-GRP,
      weighted on the basis of the Uncertificated Balance of each such REMIC II
      Regular Interest.

     

    “Net
      WAC
      Rate Carryover Amount”: With respect to any Class A Certificate or Mezzanine
      Certificate and any Distribution Date on which the Pass-Through Rate is limited
      to the applicable Net WAC Pass-Through Rate, an amount equal to the sum of
      (i)
      the excess of (x) the amount of interest such Class would have been entitled
      to
      receive on such Distribution Date if the applicable Net WAC Pass-Through Rate
      would not have been applicable to such Class on such Distribution Date over
      (y)
      the amount of interest paid to such Class on such Distribution Date at the
      applicable Net WAC Pass-Through Rate plus (ii) the related Net WAC Rate
      Carryover Amount for the previous Distribution Date not previously distributed
      to such Class together with interest thereon at a rate equal to the Pass-Through
      Rate for such Class for the most recently ended Interest Accrual Period without
      taking into account the applicable Net WAC Pass-Through Rate.

     

    “New
      Century”: New Century Mortgage Corporation, and any successor thereto appointed
      in accordance with the provisions of the Servicing Agreement in connection
      with
      the servicing of the New Century Mortgage Loans.

     

    “New
      Century Mortgage Loans”: The Mortgage Loans being serviced by New Century from
      the period beginning on the Closing Date and ending on the Servicing Transfer
      Date.

     

    
      
        
        

      

      
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    “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.

     

    “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 of the related Servicer or a successor to the Servicer (including
      the
      Master Servicer) will not or, in the case of a proposed P&I 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 related Servicer or a successor to 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 Uncertificated Balance of the REMIC II Regular Interests (other than REMIC
      II Regular Interest P) for such Distribution Date. As of the Closing Date,
      the
      Notional Amount of the Class CE Certificates is equal to
      $1,501,392,227.31.

     

    “Offered
      Certificates”: The Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class
      M-5, Class M-6, Class M-7, Class M-8 and Class M-9 Certificates,
      collectively.

     

    “Officer’s
      Certificate”: With respect to any Person, a certificate signed by the Chairman
      of the Board, the Vice Chairman of the Board, the President or a vice president
      (however denominated), or by the Treasurer, the Secretary, or one of the
      assistant treasurers or assistant secretaries of such Person (or, in the case
      of
      a Person that is not a corporation, signed by a person or persons having like
      responsibilities.

     

    “One-Month
      LIBOR”: With respect to the Class A Certificates, the Mezzanine Certificates,
      REMIC II Regular Interests (other than REMIC II Regular Interest P) and any
      Interest Accrual Period therefor, the rate determined by the Securities
      Administrator 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 Securities
      Administrator 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 Securities Administrator shall select an alternative comparable index
      (over which the Securities Administrator 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 Securities Administrator and the Securities
      Administrator’s subsequent calculation of the One-Month LIBOR Pass-Through Rates
      for the relevant Interest Accrual Period, shall, in the absence of manifest
      error, be final and binding.

     

    
      
        
        

      

      
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    “One-Month
      LIBOR Pass-Through Rate”: With respect to the Class A-1A Certificates and, for
      purposes of the definition of “Marker Rate”, REMIC II Regular Interest A-1A, a
      per annum rate equal to One-Month LIBOR plus the related Certificate
      Margin.

     

    With
      respect to the Class A-1B Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-1B, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class A-2A Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-2A, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class A-2B Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-2B, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class A-2C Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-2C, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class A-2D Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-2D, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-1 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-1, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-2 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-2, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-3 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-3, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    
      
        
        

      

      
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    With
      respect to the Class M-4 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-4, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-5 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-5, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-6 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-6, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-7 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-7, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-8 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-8, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-9 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-9, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-10 Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest M-10, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-11 Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest M-11, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    “Opinion
      of Counsel”: A written opinion of counsel, who may, without limitation, be
      salaried counsel for the Depositor, a Servicer, the Securities Administrator
      or
      the Master Servicer, acceptable to the Trustee, except that any opinion of
      counsel relating to (a) the qualification of any REMIC as a REMIC or (b)
      compliance with the REMIC Provisions must be an opinion of Independent
      counsel.

     

    “Optional
      Termination Date”: The Distribution Date on which the aggregate principal
      balance of the Mortgage Loans (and properties acquired in respect thereof)
      remaining in the Trust Fund as of the last day of the related Due Period has
      been reduced to less than or equal to 10% of the aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off 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
      immediately following such Distribution Date over (b) the sum of the aggregate
      Certificate Principal Balances of the Class A Certificates, the Mezzanine
      Certificates and the Class P Certificates as of such Distribution Date (after
      taking into account the payment of the Principal Remittance Amount on such
      Distribution Date).

     

    
      
        
        

      

      
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    “Overcollateralization
      Increase Amount”: With respect to any Distribution Date, the amount of Net
      Monthly Excess Cashflow actually applied as an accelerated payment of principal
      to the Class A Certificates and the Mezzanine Certificates then entitled to
      distributions of principal to the extent the Required Overcollateralization
      Amount exceeds the Overcollateralization Amount.

     

    “Overcollateralization
      Reduction Amount”: With respect to any Distribution Date, the lesser of (i) the
      amount by which the Overcollateralization Amount exceeds the Required
      Overcollateralization Amount and (ii) the Principal Remittance Amount; provided
      however that on any Distribution Date on which a Trigger Event is in effect,
      the
      Overcollateralization Reduction Amount shall equal zero.

     

    “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.

     

    “P&I
      Advance”: As to any Mortgage Loan or REO Property, any advance made by a
      Servicer in respect of any Determination Date pursuant to Section 5.03 of
      this Agreement, an Advance Financing Person pursuant to Section 3.25 of
      this Agreement or in respect of any Distribution Date by a successor Servicer
      pursuant to Section 8.02 of this Agreement or pursuant to the Servicing
      Agreement, as applicable, (which advances shall not include principal or
      interest shortfalls due to bankruptcy proceedings or application of the Relief
      Act or similar state or local laws).

     

    “Pass-Through
      Rate”: With respect to the Class A Certificates and the Mezzanine Certificates,
      and any Distribution Date, a rate per annum equal to the lesser of (i) the
      related One-Month LIBOR Pass-Through Rate for such Distribution Date and (ii)
      the related Net WAC Pass-Through Rate for such Distribution Date.

     

    With
      respect to the Class CE Certificates and any Distribution Date, a rate per
      annum
      equal to the percentage equivalent of a fraction, the numerator of which is
      the
      sum of the amounts calculated pursuant to clauses (i) through (xx) below, and
      the denominator of which is the aggregate Uncertificated Balances of REMIC
      II
      Regular Interest AA, REMIC II Regular Interest A-1A, REMIC II Regular Interest
      A-1B, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC
      II
      Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest
      M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II
      Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest
      M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest M-8, REMIC II
      Regular Interest M-9, REMIC II Regular Interest M-10, REMIC II Regular Interest
      M-11 and REMIC II Regular Interest ZZ. For purposes of calculating the
      Pass-Through Rate for the Class CE Certificates, the numerator is equal to
      the
      sum of the following components:

     

    
      
        
        

      

      
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    (i) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest AA minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest AA;

     

    (ii) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest A-1A minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest A-1A;

     

    (iii) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest A-1B minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest A-1B;

     

    (iv) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest A-2A minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest A-2A;

     

    (v) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest A-2B minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest A-2B;

     

    (vi) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest A-2C minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest A-2C;

     

    (vii) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest A-2D minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest A-2D;

     

    (viii) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest M-1 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest M-1;

     

    (ix) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest M-2 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest M-2;

     

    (x) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest M-3 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest M-3;

     

    (xi) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest M-4 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest M-4;

     

    (xii) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest M-5 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest M-5;

     

    
      
        
        

      

      
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    (xiii) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest M-6 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest M-6;

     

    (xiv) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest M-7 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest M-7;

     

    (xv) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest M-8 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest M-8;

     

    (xvi) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest M-9 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest M-9;

     

    (xvii) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest M-10 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest M-10;

     

    (xviii) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest M-11 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest M-11;

     

    (xix) the
      REMIC
      II Remittance Rate for REMIC II Regular Interest ZZ minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest ZZ; and

     

    (xx) 100%
      of
      the interest on REMIC II Regular Interest P.

     

    The
      Class
      IO Interest shall not have a Pass-Through Rate, but current interest for the
      Class IO Interest and each Distribution Date shall be an amount equal to 100%
      of
      the amounts distributable to REMIC II Regular Interest IO for such Distribution
      Date.

     

    “PCAOB”:
      Means the Public Company Accounting Oversight Board.

     

    “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 represented by such Certificate and the
      denominator of which is the aggregate initial Certificate Principal Balance
      or
      Notional Amount of all of the Certificates of such Class. The Class A
      Certificates and the Mezzanine Certificates are issuable only in minimum
      Percentage Interests corresponding to minimum initial Certificate Principal
      Balances of $25,000 and integral multiples of $1.00 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 Notional Balances of $10,000 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 Notional
      Balance 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 integral multiples of 5% in excess
      thereof.

     

    
      
        
        

      

      
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    “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 Adjustable
      Rate
      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 by the Depositor, the Servicers, the Master 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) (A)
      demand and time deposits in, certificates of deposit of, bankers’ acceptances
      issued by or federal funds sold by any depository institution or trust company
      (including the Trustee or its agent acting in their respective commercial
      capacities) incorporated under the laws of the United States of America or
      any
      state thereof and subject to supervision and examination by federal and/or
      state
      authorities, so long as, at the time of such investment or contractual
      commitment providing for such investment, such depository institution or trust
      company (or, if the only Rating Agency is S&P, in the case of the principal
      depository institution in a depository institution holding company, debt
      obligations of the depository institution holding company) or its ultimate
      parent has a short-term uninsured debt rating in the highest available rating
      category of Moody’s, Fitch and S&P and provided that each such investment
      has an original maturity of no more than 365 days; and provided further that,
      if
      the only Rating Agency is S&P and if the depository or trust company is a
      principal subsidiary of a bank holding company and the debt obligations of
      such
      subsidiary are not separately rated, the applicable rating shall be that of
      the
      bank holding company; and, provided further that, if the original maturity
      of
      such short-term obligations of a domestic branch of a foreign depository
      institution or trust company shall exceed 30 days, the short-term rating of
      such
      institution shall be A-1+ in the case of S&P if S&P is the Rating
      Agency; and (B) any other demand or time deposit or deposit which is fully
      insured by the FDIC;

     

    (iii) repurchase
      obligations with a term not to exceed 30 days with respect to any security
      described in clause (i) above and entered into with a depository institution
      or
      trust company (acting as principal) rated A-1+ or higher by S&P, F-1 or
      higher by Fitch and P-1 or higher by Moody’s, provided, however, that collateral
      transferred pursuant to such repurchase obligation must be of the type described
      in clause (i) above and must (A) be valued daily at current market prices plus
      accrued interest, (B) pursuant to such valuation, be equal, at all times, to
      105% of the cash transferred by a party in exchange for such collateral and
      (C)
      be delivered to such party or, if such party is supplying the collateral, an
      agent for such party, in such a manner as to accomplish perfection of a security
      interest in the collateral by possession of certificated
      securities;

     

    
      
        
        

      

      
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    (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;

     

    (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 that have been rated “AAA” by Fitch (if rated by Fitch),
“AAA” by S&P or “Aaa” by Moody’s including any such money market fund
      managed or advised by the Master Servicer, the Trustee or any of their
      Affiliates; 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.

     

    “Permitted
      Transferee”: Any Transferee of a Residual Certificate other than a Disqualified
      Organization or Non-United States Person.

     

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

     

    “Plan”:
      Any employee benefit plan or certain other retirement plans and arrangements,
      including individual retirement accounts and annuities, Keogh plans and bank
      collective investment funds and insurance company general or separate accounts
      in which such plans, accounts or arrangements are invested, that are subject
      to
      ERISA or Section 4975 of the Code.

     

    
      
        
        

      

      
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    “Prepayment
      Assumption”: A prepayment rate for (a) the Adjustable Rate Mortgage Loans of
      100% PPC, which represents (i) a per annum prepayment rate of 5% of the then
      outstanding principal balance of the Adjustable Rate Mortgage Loans in the
      first
      month of the life of the Adjustable Rate Mortgage Loans, (ii) an additional
      2%
      per annum in each month thereafter through the eleventh month, (iii) building
      to
      a constant prepayment rate of 27% per annum beginning in the twelfth month
      and
      remaining constant until the twenty-third month, (iv) increasing to and
      remaining constant at a prepayment rate of 60% per annum beginning in the
      twenty-fourth month until the twenty-seventh month and (v) decreasing and
      remaining constant at a prepayment rate of 30% per annum from the twenty-eighth
      month and thereafter; provided, however, the prepayment rate will not exceed
      85%
      per annum in any period for any percentage of PPC; and (b) the fixed-rate
      Mortgage Loans of 100% PPC, which represents (i) a per annum prepayment rate
      of
      4% of the then outstanding principal balance of the fixed rate Mortgage Loans
      in
      the first month of the life of such Mortgage Loans, (ii) an additional 1.72727%
      per annum in each month thereafter through the eleventh month and (iii) a
      constant prepayment rate of 23% per annum beginning in the twelfth month and
      in
      each month thereafter during the life of the fixed rate Mortgage Loans;
      provided, however, the prepayment rate will not exceed 85% per annum in any
      period for any percentage of PPC. The Prepayment Assumption is used solely
      for
      determining the accrual of original issue discount on the Certificates for
      federal income tax purposes.

     

    “Prepayment
      Charge”: With respect to any Principal Prepayment, 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.

     

    “Prepayment
      Charge Schedule”: As of any date, the list of Mortgage Loans providing for a
      Prepayment Charge included in the Trust Fund on such date, attached hereto
      as
      Schedule 2 (including the prepayment charge summary attached thereto). The
      Depositor shall deliver or cause the delivery of the Prepayment Charge Schedule
      to the related Servicer, the Master Servicer and the Trustee on the Closing
      Date. 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) the
      Stated Principal Balance of the related Mortgage Loan as of the Cut-off
      Date.

     

    “Prepayment
      Interest Excess”: With respect to each Mortgage Loan that was the subject of a
      Principal Prepayment in full during the portion of the related Prepayment Period
      occurring between the first day of the calendar month in which such Distribution
      Date occurs and the fifteenth (15th)
      day of
      the calendar month in which such Distribution Date occurs, an amount equal
      to
      interest (to the extent received) at the applicable Net Mortgage Rate on the
      amount of such Principal Prepayment for the number of days commencing on the
      first day of the calendar month in which such Distribution Date occurs and
      ending on the last date through which interest is collected from the related
      Mortgagor. The related Servicer may withdraw such Prepayment Interest Excess
      from the related Collection Account in accordance with Section 3.09(a)(x)
      of this Agreement or the Servicing Agreement. 

     

    
      
        
        

      

      
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    “Prepayment
      Interest Shortfall”: With respect to any Distribution Date, for each such
      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 that was applied
      by
      the related Servicer to reduce the outstanding principal balance of such
      Mortgage Loan on a date preceding the Due Date in the succeeding Prepayment
      Period, an amount equal to interest at the applicable Net 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 such Distribution Date. The obligations of the related
      Servicer and the Master Servicer in respect of any Prepayment Interest Shortfall
      are set forth in the Servicing Agreement or in Section 3.22 and
      Section 4.19, respectively of this Agreement, as applicable. 

     

    “Prepayment
      Period”: For any Distribution Date, the period beginning on the 16th day of the
      month preceding the month in which the related Distribution Date occurs (or
      with
      respect to the first Prepayment Period, the period commencing on the Cut-off
      Date) and ending on the 15th day of the month in which such Distribution Date
      occurs.

     

    “Principal
      Prepayment”: Any voluntary payment of principal made by the Mortgagor on a
      Mortgage Loan which is received in advance of its scheduled Due Date and which
      is not accompanied by an amount of interest representing the full amount of
      scheduled interest due on any Due Date in any month or months subsequent to
      the
      month of prepayment.

     

    “Principal
      Distribution Amount”: With respect to any Distribution Date is the sum of the
      Group IA Principal Distribution Amount, Group IB Principal Distribution Amount
      and the Group II Principal Distribution Amount.

     

    “Principal
      Remittance Amount”: With respect to any Distribution Date is the sum of the
      Group IA Principal Remittance Amount, Group IB Principal Remittance Amount
      and
      the Group II Principal Remittance Amount.

     

    “Purchase
      Price”: With respect to any Mortgage Loan or REO Property to be purchased
      pursuant to or as contemplated by Section 2.03, Section 3.13(c) or
      Section 10.01 of this Agreement, and as confirmed by a certification of a
      Servicing Officer of the related Servicer 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 10.01 of this
      Agreement), (ii) in the case of (x) a Mortgage Loan, accrued interest on such
      Stated Principal Balance at the applicable Net 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 a P&I Advance by the related Servicer, which payment or
      P&I Advance had as of the date of purchase been distributed pursuant to
      Section 5.01 of this Agreement, through the end of the calendar month in
      which the purchase is to be effected and (y) an REO Property, the sum of (1)
      accrued interest on such Stated Principal Balance at the applicable Net 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 a P&I Advance by the related
      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 P&I Advances
      that as of the date of purchase had been distributed as or to cover REO Imputed
      Interest pursuant to Section 5.01 of this Agreement, (iii) any unreimbursed
      Servicing Advances and P&I Advances (including Nonrecoverable P&I
      Advances and Nonrecoverable Servicing Advances) and any unpaid Servicing Fees
      allocable to such Mortgage Loan or REO Property and (iv) in the case of a
      Mortgage Loan required to be purchased pursuant to Section 2.03 of this
      Agreement, expenses reasonably incurred or to be incurred by the related
      Servicer or the Trustee in respect of the breach or defect giving rise to the
      purchase obligation and any costs and damages incurred by the Trust Fund and
      the
      Trustee in connection with any violation by any such Mortgage Loan of any
      predatory or abusive lending law.

     

    
      
        
        

      

      
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    “QIB”:
      As
      defined in Section 6.01(c).

     

    “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 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 Scheduled 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) if the mortgage loan is an Adjustable Rate Mortgage Loan, have
      a
      Maximum Mortgage Rate not less than the Maximum Mortgage Rate on the Deleted
      Mortgage Loan, (iv) if the mortgage loan is an Adjustable Rate Mortgage Loan,
      have a Minimum Mortgage Rate not less than the Minimum Mortgage Rate of the
      Deleted Mortgage Loan, (v) if the mortgage loan is an Adjustable Rate Mortgage
      Loan, have a Gross Margin equal to the Gross Margin of the Deleted Mortgage
      Loan, (vi) if the mortgage loan is an 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) be
      secured by the same lien priority on the related Mortgaged Property as the
      Deleted Mortgage Loan, (xi) have a credit grade at least equal to the credit
      grading assigned on the Deleted Mortgage Loan, (xii) be a “qualified mortgage”
as defined in the REMIC Provisions and (xiii) 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 credit grades
      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 (xii) 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”: Moody’s, S&P or DBRS 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 Servicers.

     

    “Realized
      Loss”: With respect to each Mortgage Loan as to which a Final Recovery
      Determination has been made, an amount (not less than zero), as reported by
      the
      related Servicer to the Master Servicer (in substantially the form of Schedule
      4
      hereto), 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 related Collection Account in respect
      of
      such Mortgage Loan pursuant to Section 3.09(a)(ix) and Section 3.13(b)
      of this Agreement or pursuant to the Servicing Agreement, as applicable, 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 related Servicer with respect to
      such
      Mortgage Loan pursuant to Section 3.09(a)(iii) of this Agreement or
      pursuant to the Servicing Agreement, as applicable.

     

    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 related Collection
      Account in respect of the related Mortgage Loan pursuant to
      Section 3.09(a)(ix) and Section 3.13(b) of this Agreement or pursuant
      to the Servicing Agreement, as applicable, minus (v) the aggregate of all
      P&I 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
      related Servicer in respect of such REO Property or the related Mortgage Loan
      for which the related Servicer has been or, in connection with such Final
      Recovery Determination, will be reimbursed pursuant to Section 3.21 of this
      Agreement or pursuant to the Servicing Agreement, as applicable, 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 Distribution Account pursuant to Section 3.21 of this Agreement or
      pursuant to the Servicing Agreement, as applicable.

     

    
      
        
        

      

      
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    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.

     

    To
      the
      extent the related Servicer receives Subsequent Recoveries, with respect to
      any
      Mortgage Loan, the amount of Realized Loss with respect to that Mortgage Loan
      will be reduced to the extent such recoveries are applied to reduce the
      Certificate Principal Balance of any Class of Certificates on any Distribution
      Date.

     

    “Record
      Date”: With respect to each Distribution Date and the Class A Certificates and
      the Mezzanine Certificates, the Business Day immediately preceding such
      Distribution Date for so long as such Certificates are Book-Entry Certificates.
      With respect to each Distribution Date and any other Class of Certificates,
      including any Definitive Certificates, the last day of the calendar month
      immediately preceding the month in which such Distribution Date
      occurs.

     

    “Reference
      Banks”: 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 Securities Administrator which are engaged in transactions
      in Eurodollar deposits in the International Eurocurrency market (i) with an
      established place of business in London, (ii) not controlling, under the control
      of or under common control with the Depositor or any Affiliate thereof and
      (iii)
      which have been designated as such by the Securities Administrator.

     

    
      
        
        

      

      
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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”: Means 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 Temporary Global Certificate”: As defined in Section 6.01(c).

     

    “Regulation
      S Permanent Global Certificate”: As defined in Section 6.01(c).

     

    “Release
      Date”: The fortieth (40th) day after the later of (i) commencement of the
      offering of the Class M-10, Class M-11 or Class CE Certificates and (ii) the
      Closing Date.

     

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

     

    “Relief
      Act”: The Servicemembers Civil Relief Act, as amended, or similar state or local
      laws.

     

    “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
      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, 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 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 related Collection Accounts, the Distribution Account
      and
      any REO Account, and such assets that are deposited therein from time to time
      and any investments thereof, together with any and all income, proceeds and
      payments with respect thereto. Notwithstanding the foregoing, however, REMIC
      I
      specifically excludes (i) 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 made before
      the Cut-off Date; (ii) the Reserve Fund and any amounts on deposit therein
      from
      time to time and any proceeds thereof; (iii) the Swap Agreement; and (iv) the
      Supplemental Interest Trust.

     

    
      
        
        

      

      
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    “REMIC
      I
      Group IA Regular Interests”: REMIC I Regular Interest IA and REMIC I Regular
      Interest IA-1-A through REMIC I Regular Interest IA-60-B as designated in the
      Preliminary Statement hereto.

     

    “REMIC
      I
      Group IB Regular Interests”: REMIC I Regular Interest IB and REMIC I Regular
      Interest IB-1-A through REMIC I Regular Interest IB-60-B as designated in the
      Preliminary Statement hereto.

     

    “REMIC
      I
      Group II Regular Interests”: REMIC I Regular Interest II and REMIC I Regular
      Interest II-1-A through REMIC II Regular Interest II-60-B as designated in
      the
      Preliminary Statement hereto.

     

    “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, 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. 

     

    “REMIC
      I
      Remittance Rate”:
      With
      respect to REMIC I Regular Interest IA, a per annum rate equal to the weighted
      average of the Net Mortgage Rates of the Group IA Mortgage Loans. With respect
      to each REMIC I Group IA Regular Interest ending with the designation “A”, a per
      annum rate equal to the weighted average of the Net Mortgage Rates of the Group
      IA Mortgage Loans multiplied by 2, subject to a maximum rate of 10.1000%. With
      respect to each REMIC I Group IA Regular Interest ending with the designation
      “B”, the greater of (x) a per annum rate equal to the excess, if any, of (i) 2
      multiplied by the weighted average of the Net Mortgage Rates of the Group IA
      Mortgage Loans over (ii) 10.1000% and (y) 0.00%. With respect to REMIC I Regular
      Interest IB, a per annum rate equal to the weighted average of the Net Mortgage
      Rates of the Group IB Mortgage Loans. With respect to each REMIC I Group IB
      Regular Interest ending with the designation “A”, a per annum rate equal to the
      weighted average of the Net Mortgage Rates of the Group IB Mortgage Loans
      multiplied by 2, subject to a maximum rate of 10.1000%. With respect to each
      REMIC I Group IB Regular Interest ending with the designation “B”, the greater
      of (x) a per annum rate equal to the excess, if any, of (i) 2 multiplied by
      the
      weighted average of the Net Mortgage Rates of the Group IB Mortgage Loans over
      (ii) 10.1000% and (y) 0.00%. With respect to REMIC I Regular Interest II, a
      per
      annum rate equal to the weighted average of the Net Mortgage Rates of the Group
      II Mortgage Loans. With respect to each REMIC I Group II Regular Interest ending
      with the designation “A”, a per annum rate equal to the weighted average of the
      Net Mortgage Rates of the Group II Mortgage Loans multiplied by 2, subject
      to a
      maximum rate of 10.1000%. With respect to each REMIC I Group II Regular Interest
      ending with the designation “B”, the greater of (x) a per annum rate equal to
      the excess, if any, of (i) 2 multiplied by the weighted average of the Net
      Mortgage Rates of the Group II Mortgage Loans over (ii) 10.1000% and (y)
      0.00%.

     

    
      
        
        

      

      
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    “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 REMIC II
      Regular Interests pursuant to Section 2.07, and all amounts deposited
      therein, with respect to which a separate REMIC election is to be
      made.

     

    “REMIC
      II
      Interest Loss Allocation Amount”: With respect to any Distribution Date, an
      amount equal to (a) the product of (i) 50% of the aggregate Stated Principal
      Balance of the Mortgage Loans and REO Properties then outstanding and (ii)
      the
      REMIC II Remittance Rate for REMIC II Regular Interest AA minus the Marker
      Rate,
      divided by (b) 12.

     

    “REMIC
      II
      Marker Allocation Percentage”: 50% of any amount payable or loss attributable
      from the Mortgage Loans, which shall be allocated to REMIC II Regular Interest
      AA, REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B, REMIC II
      Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest
      A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC
      II
      Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest
      M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II
      Regular Interest M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest
      M-9, REMIC II Regular Interest M-10, REMIC II Regular Interest M-11, REMIC
      II
      Regular Interest ZZ and REMIC II Regular Interest P.

     

    “REMIC
      II
      Overcollateralization Amount”: With respect to any date of determination, (i)
      0.50% of the aggregate Uncertificated Balances of the REMIC II Regular Interests
      (other than REMIC II Regular Interest P) minus (ii) the aggregate of the
      Uncertificated Balances of REMIC II Regular Interest A-1A, REMIC II Regular
      Interest A-1B, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B,
      REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular
      Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3,
      REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular
      Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest M-8,
      REMIC II Regular Interest M-9, REMIC II Regular Interest M-10 and REMIC II
      Regular Interest M-11, in each case as of such date of
      determination.

     

    “REMIC
      II
      Principal Loss Allocation Amount”: With respect to any Distribution Date, an
      amount equal to (a) the product of (i) 50% of 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 of the
      Uncertificated Balances of REMIC II Regular Interest A-1A, REMIC II Regular
      Interest A-1B, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B,
      REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular
      Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3,
      REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular
      Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest M-8,
      REMIC II Regular Interest M-9, REMIC II Regular Interest M-10 and REMIC II
      Regular Interest M-11 and the denominator of which is the aggregate of the
      Uncertificated Balances of REMIC II Regular Interest A-1A, REMIC II Regular
      Interest A-1B, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B,
      REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular
      Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3,
      REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular
      Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest M-8,
      REMIC II Regular Interest M-9, REMIC II Regular Interest M-10, REMIC II Regular
      Interest M-11 and REMIC II Regular Interest ZZ.

     

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

     

    “REMIC
      II
      Regular Interest”: Any of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a “regular interest” in
      REMIC II. Each REMIC II Regular Interest shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time, 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 designations for the respective REMIC II
      Regular Interests are set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      II
      Regular Interest AA”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest AA shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest A-1A”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest A-1A shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest A-1B”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest A-1B shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest A-2A”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest A-2A shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

     

    “REMIC
      II
      Regular Interest A-2B”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest A-2B shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest A-2C”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest A-2C shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest A-2D”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest A-2D shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest IO”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest IO shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time and shall not be entitled
      to distributions of principal. 

     

    “REMIC
      II
      Regular Interest M-1”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-1 shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest M-2”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-2 shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest M-3”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-3 shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time, 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.

     

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

     

    “REMIC
      II
      Regular Interest M-4”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-4 shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest M-5”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-5 shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest M-6”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-6 shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest M-7”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-7 shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest M-8”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-8 shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest M-9”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-9 shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest M-10”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest M-10 shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

     

    “REMIC
      II
      Regular Interest M-11”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest M-11 shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest P”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest P shall accrue interest at the related
      REMIC
      II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest XX”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest XX shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest ZZ”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest ZZ shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest IA-SUB”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest IA-SUB shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest IA-GRP”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest IA-GRP shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

     

    “REMIC
      II
      Regular Interest IB-SUB”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest IB-SUB shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest IB-GRP”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest IB-GRP shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest II-SUB”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest II-SUB shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Regular Interest II-GRP”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest II-GRP shall accrue interest
      at
      the related REMIC II Remittance Rate in effect from time to time, 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.

     

    “REMIC
      II
      Remittance Rate”: With respect to REMIC II Regular Interest AA, REMIC II Regular
      Interest A-1A, REMIC II Regular Interest A-1B, REMIC II Regular Interest A-2A,
      REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular
      Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2,
      REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular
      Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest M-7,
      REMIC II Regular Interest M-8, REMIC II Regular Interest M-9, REMIC II Regular
      Interest M-10, REMIC II Regular Interest M-11, REMIC II Regular Interest ZZ,
      REMIC II Regular Interest P, REMIC II Regular Interest IA-SUB, REMIC II Regular
      Interest IB-SUB, REMIC II Regular Interest II-SUB and REMIC II Regular Interest
      XX, a per annum rate (but not less than zero) equal to the weighted average
      of:
      (w) with respect to REMIC I Regular Interest IA, REMIC I Regular Interest IB
      and
      REMIC I Regular Interest II, the REMIC I Remittance Rate for each such REMIC
      I
      Regular Interest for each such Distribution Date, (x) with respect to each
      REMIC
      I Regular Interest ending with the designation “B”, the weighted average of the
      REMIC I Remittance Rates for such REMIC I Regular Interests, weighted on the
      basis of the Uncertificated Balances of such REMIC I Regular Interests for
      each
      such Distribution Date and (y) with respect to REMIC I Regular Interests ending
      with the designation “A”, for each Distribution Date listed below, the weighted
      average of the rates listed below for each such REMIC I Regular Interest listed
      below, weighted on the basis of the Uncertificated Balances of each such REMIC
      I
      Regular Interest for each such Distribution Date:

     

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

     

    

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            
	
              1

            	
              IA-1-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-1-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-1-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	
              2

            	
              IA-2-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-2-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate REMIC I Remittance
                Rate

            
	 	
              II-2-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate REMIC I Remittance
                Rate

            
	 	
              IA-1-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A

            	
              REMIC
                I Remittance Rate

            
	
              3

            	
              IA-3-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-3-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-3-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                and IA-2-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                and IB-2-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                and II-2-A

            	
              REMIC
                I Remittance Rate

            
	
              4

            	
              IA-4-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-4-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-4-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-3-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-3-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-3-A

            	
              REMIC
                I Remittance Rate

            
	
              5

            	
              IA-5-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-5-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-5-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-4-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-4-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-4-A

            	
              REMIC
                I Remittance Rate

            
	
              6

            	
              IA-6-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-6-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-6-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-5-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-5-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-5-A

            	
              REMIC
                I Remittance Rate

            
	
              7

            	
              IA-7-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-7-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-7-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-6-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-6-A

            	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            

    

    
      	 	
               

              IB-1-A
                through IB-6-A

            	
              REMIC
                I Remittance Rate

            
	
              8

            	
              IA-8-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-8-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-8-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-7-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-7-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-7-A

            	
              REMIC
                I Remittance Rate

            
	
              9

            	
              IA-9-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-9-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-9-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-8-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-8-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-8-A

            	
              REMIC
                I Remittance Rate

            
	
              10

            	
              IA-10-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-10-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-10-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-9-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-9-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-9-A

            	
              REMIC
                I Remittance Rate

            
	
              11

            	
              IA-11-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-11-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-11-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-10-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-10-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-10-A

            	
              REMIC
                I Remittance Rate

            
	
              12

            	
              IA-12-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-12-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-12-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-11-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-11-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-11-A

            	
              REMIC
                I Remittance Rate

            
	
              13

            	
              IA-13-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-13-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-13-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            

    

     

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            

    

    
      	 	
              IA-1-A
                through IA-12-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-12-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-12-A

            	
              REMIC
                I Remittance Rate

            
	
              14

            	
              IA-14-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-14-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
               

              II-14-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-13-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-13-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-13-A

            	
              REMIC
                I Remittance Rate

            
	
              15

            	
              IA-15-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-15-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-15-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-14-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-14-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-14-A

            	
              REMIC
                I Remittance Rate

            
	
              16

            	
              IA-16-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-16-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-16-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-15-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-15-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-15-A

            	
              REMIC
                I Remittance Rate

            
	
              17

            	
              IA-17-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-17-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-17-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-16-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-16-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-16-A

            	
              REMIC
                I Remittance Rate

            
	
              18

            	
              IA-18-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-18-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-18-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-17-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-17-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-17-A

            	
              REMIC
                I Remittance Rate

            
	
              19

            	
              IA-19-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-19-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-19-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-18-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-18-A

            	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            

    

    
      	 	
               

              II-1-A
                through II-18-A

            	
              REMIC
                I Remittance Rate

            
	
              20

            	
              IA-20-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-20-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-20-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-19-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-19-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-19-A

            	
              REMIC
                I Remittance Rate

            
	
              21

            	
              IA-21-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-21-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-21-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-20-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-20-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-20-A

            	
              REMIC
                I Remittance Rate

            
	
              22

            	
              IA-22-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-22-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-22-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-21-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-21-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-21-A

            	
              REMIC
                I Remittance Rate

            
	
              23

            	
              IA-23-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-23-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-23-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-22-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-22-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-22-A

            	
              REMIC
                I Remittance Rate

            
	
              24

            	
              IA-24-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-24-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-24-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-23-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-23-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-23-A

            	
              REMIC
                I Remittance Rate

            
	
              25

            	
              IA-25-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-25-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-25-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-24-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-24-A

            	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            

 

    
      	 	
              II-1-A
                through II-24-A

            	
              REMIC
                I Remittance Rate

            
	
              26

            	
              IA-26-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-26-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-26-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-25-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-25-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-25-A

            	
              REMIC
                I Remittance Rate

            
	
              27

            	
              IA-27-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-27-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-27-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-26-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-26-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-26-A

            	
              REMIC
                I Remittance Rate

            
	
              28

            	
              IA-28-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-28-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-28-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-27-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-27-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-27-A

            	
              REMIC
                I Remittance Rate

            
	
              29

            	
              IA-29-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-29-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-29-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-28-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-28-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-1-A
                through II-28-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	
              30

            	
              IA-30-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-30-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-30-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-29-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-29-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-29-A

            	
              REMIC
                I Remittance Rate

            
	
              31

            	
              IA-31-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-31-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-31-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-30-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-30-A

            	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            

    

    
      	 	
              II-1-A
                through II-30-A

            	
              REMIC
                I Remittance Rate

            
	
              32

            	
              IA-32-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-32-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-32-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-31-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-31-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-31-A

            	
              REMIC
                I Remittance Rate

            
	
              33

            	
              IA-33-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-33-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-33-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-32-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-32-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-32-A

            	
              REMIC
                I Remittance Rate

            
	
              34

            	
              IA-34-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-34-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-34-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-33-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-33-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-33-A

            	
              REMIC
                I Remittance Rate

            
	
              35

            	
              IA-35-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-35-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-35-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-34-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-34-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-34-A

            	
              REMIC
                I Remittance Rate

            
	
              36

            	
              IA-36-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-36-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-36-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-35-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-35-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-35-A

            	
              REMIC
                I Remittance Rate

            
	
              37

            	
              IA-37-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-37-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-37-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-36-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-36-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-36-A

            	
              REMIC
                I Remittance Rate

            
	
              38

            	
              IA-38-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-38-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-38-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-37-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-37-A

            	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            

    

    
      	 	
               

              II-1-A
                through II-37-A

            	
              REMIC
                I Remittance Rate

            
	
              39

            	
              IA-39-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-39-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-39-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-38-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-38-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-38-A

            	
              REMIC
                I Remittance Rate

            
	
              40

            	
              IA-40-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-40-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-40-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-39-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-39-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-39-A

            	
              REMIC
                I Remittance Rate

            
	
              41

            	
              IA-41-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-41-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-41-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-40-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-40-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-40-A

            	
              REMIC
                I Remittance Rate

            
	
              42

            	
              IA-42-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-42-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-42-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-41-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-41-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-41-A

            	
              REMIC
                I Remittance Rate

            
	
              43

            	
              IA-43-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-43-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-43-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-42-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-42-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-42-A

            	
              REMIC
                I Remittance Rate

            
	 	 	 
	
              44

            	
              IA-44-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-44-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-44-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-43-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-43-A

            	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            

    

    
      	 	
               

              II-1-A
                through II-43-A

            	
              REMIC
                I Remittance Rate

            
	
              45

            	
              IA-45-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-45-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-45-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-44-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-44-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-44-A

            	
              REMIC
                I Remittance Rate

            
	
              46

            	
              IA-46-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-46-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-46-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-45-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-45-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-45-A

            	
              REMIC
                I Remittance Rate

            
	
              47

            	
              IA-47-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-47-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-47-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-46-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-46-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-46-A

            	
              REMIC
                I Remittance Rate

            
	
              48

            	
              IA-48-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-48-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-48-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-47-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-47-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-47-A

            	
              REMIC
                I Remittance Rate

            
	
              49

            	
              IA-49-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-49-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-49-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-48-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-48-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-1-A
                through II-48-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	
              50

            	
              IA-50-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-50-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-50-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-49-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-49-A

            	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            

    

    
      	 	
               

              II-1-A
                through II-49-A

            	
              REMIC
                I Remittance Rate

            
	
              51

            	
              IA-51-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-51-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-51-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-50-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-50-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-50-A

            	
              REMIC
                I Remittance Rate

            
	
              52

            	
              IA-52-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-52-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-52-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-51-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-51-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-51-A

            	
              REMIC
                I Remittance Rate

            
	
              53

            	
              IA-53-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-53-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-53-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-52-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-52-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-52-A

            	
              REMIC
                I Remittance Rate

            
	
              54

            	
              IA-54-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-54-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-54-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-53-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-53-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-53-A

            	
              REMIC
                I Remittance Rate

            
	
              55

            	
              IA-55-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-55-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-55-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-54-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-54-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-54-A

            	
              REMIC
                I Remittance Rate

            
	
              56

            	
              IA-56-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-56-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-56-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-55-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-55-A

            	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            

    

    
      	 	
              II-1-A
                through II-55-A

            	
              REMIC
                I Remittance Rate

            
	
              57

            	
              IA-57-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-57-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-57-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-56-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-56-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-56-A

            	
              REMIC
                I Remittance Rate

            
	
              58

            	
              IA-58-A
                through IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-58-A
                through IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-58-A
                through II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-57-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-57-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-57-A

            	
              REMIC
                I Remittance Rate

            
	
              59

            	
              IA-59-A
                and IA-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-59-A
                and IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-59-A
                and II-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-58-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-58-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-58-A

            	
              REMIC
                I Remittance Rate

            
	
              60

            	
              IA-60-A
                

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IB-60-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              II-60-A
                

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	
              IA-1-A
                through IA-59-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-59-A

            	
              REMIC
                I Remittance Rate

            
	 	
               

              II-1-A
                through II-59-A

            	
              REMIC
                I Remittance Rate

            
	
              thereafter

            	
              IA-1-A
                through IA-60-A

            	
              REMIC
                I Remittance Rate

            
	 	
              IB-1-A
                through IB-60-A

            	
              REMIC
                I Remittance Rate

            
	 	
              II-1-A
                through II-60-A

            	
              REMIC
                I Remittance Rate

            

    

    

    With
      respect to REMIC II Regular Interest IA-GRP, a per annum rate (but not less
      than
      zero) equal to the weighted average of: (w) with respect to REMIC I Regular
      Interest IA, the REMIC I Remittance Rate for such REMIC I Regular Interest
      for
      each such Distribution Date, (x) with respect to REMIC I Group IA Regular
      Interests ending with the designation “B”, the weighted average of the REMIC I
      Remittance Rates for such REMIC I Regular Interests, weighted on the basis
      of
      the Uncertificated Balances of each such REMIC I Regular Interest for each
      such
      Distribution Date and (y) with respect to REMIC I Group IA Regular Interests
      ending with the designation “A”, for each Distribution Date listed below, the
      weighted average of the rates listed below for such REMIC I Regular Interests
      listed below, weighted on the basis of the Uncertificated Balances of each
      such
      REMIC I Regular Interest for each such Distribution Date:

     

    
      
        
        

      

      
        77

        
          

        

      

      
        
        

      

    

     

    
      

        
          	
                  Distribution
                    Date

                	
                  REMIC
                    I Regular Interest

                	
                  Rate

                
	
                  1

                	
                  IA-1-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	 	 
	
                  2

                	
                  IA-2-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  3

                	
                  IA-3-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    and IA-2-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  4

                	
                  IA-4-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-3-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  5

                	
                  IA-5-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-4-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  6

                	
                  IA-6-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-5-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  7

                	
                  IA-7-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-6-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  8

                	
                  IA-8-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-7-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  9

                	
                  IA-9-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-8-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  10

                	
                  IA-10-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-9-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  11

                	
                  IA-11-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-10-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  12

                	
                  IA-12-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-11-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  13

                	
                  IA-13-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-12-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  14

                	
                  IA-14-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-13-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  15

                	
                  IA-15-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-14-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  16

                	
                  IA-16-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-15-A

                	
                  REMIC
                    I Remittance Rate

                

        

         

        
          
            
            

          

          
            78

            
              

            

          

          
            
            

          

        

         

        
          	
                  Distribution
                    Date

                	
                  REMIC
                    I Regular Interest

                	
                  Rate

                

        

        
          	
                  17

                	
                  IA-17-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-16-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  18

                	
                  IA-18-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-17-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  19

                	
                  IA-19-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-18-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  20

                	
                  IA-20-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-19-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  21

                	
                  IA-21-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-20-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  22

                	
                  IA-22-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-21-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  23

                	
                  IA-23-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-22-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  24

                	
                  IA-24-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-23-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  25

                	
                  IA-25-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-24-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  26

                	
                  IA-26-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-25-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  27

                	
                  IA-27-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-26-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  28

                	
                  IA-28-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-27-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  29

                	
                  IA-29-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-28-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  30

                	
                  IA-30-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-29-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  31

                	
                  IA-31-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-30-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  32

                	
                  IA-32-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-31-A

                	
                  REMIC
                    I Remittance Rate

                

        

         

        
          
            
            

          

          
            79

            
              

            

          

          
            
            

          

        

         

        
          	
                  Distribution
                    Date

                	
                  REMIC
                    I Regular Interest

                	
                  Rate

                

        

        
          	
                  33

                	
                  IA-33-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-32-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  34

                	
                  IA-34-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-33-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  35

                	
                  IA-35-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-34-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  36

                	
                  IA-36-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-35-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  37

                	
                  IA-37-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-36-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  38

                	
                  IA-38-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-37-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  39

                	
                  IA-39-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-38-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  40

                	
                  IA-40-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-39-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  41

                	
                  IA-41-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-40-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  42

                	
                  IA-42-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-41-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  43

                	
                  IA-43-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-42-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  44

                	
                  IA-44-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-43-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  45

                	
                  IA-45-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-44-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  46

                	
                  IA-46-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-45-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  47

                	
                  IA-47-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-46-A

                	
                  REMIC
                    I Remittance Rate

                

        

         

        
          
            
            

          

          
            80

            
              

            

          

          
            
            

          

        

         

        
          	
                  Distribution
                    Date

                	
                  REMIC
                    I Regular Interest

                	
                  Rate

                

        

        
          	
                  48

                	
                  IA-48-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-47-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  49

                	
                  IA-49-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-48-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  50

                	
                  IA-50-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-49-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  51

                	
                  IA-51-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-50-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  52

                	
                  IA-52-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-51-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  53

                	
                  IA-53-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-52-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  54

                	
                  IA-54-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-53-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  55

                	
                  IA-55-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-54-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  56

                	
                  IA-56-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-55-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  57

                	
                  IA-57-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-56-A

                	
                  REMIC
                    I Remittance Rate

                
	
                  58

                	
                  IA-58-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-57-A

                	
                  REMIC
                    I Remittance Rate

                
	
                  59

                	
                  IA-59-A
                    through IA-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-58-A

                	
                  REMIC
                    I Remittance Rate

                
	
                  60

                	
                  IA-60-A
                    

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  IA-1-A
                    through IA-59-A

                	
                  REMIC
                    I Remittance Rate

                
	
                  thereafter

                	
                  IA-1-A
                    through IA-60-A

                	
                  REMIC
                    I Remittance Rate

                

        

      

    

    

    

      With
        respect to REMIC II Regular Interest IB-GRP, a per annum rate (but not less
        than
        zero) equal to the weighted average of: (w) with respect to REMIC I Regular
        Interest IB, the REMIC I Remittance Rate for such REMIC I Regular Interest
        for
        each such Distribution Date, (x) with respect to REMIC I Group IB Regular
        Interests ending with the designation “B”, the weighted average of the REMIC I
        Remittance Rates for such REMIC I Regular Interests, weighted on the basis
        of
        the Uncertificated Balances of each such REMIC I Regular Interest for each
        such
        Distribution Date and (y) with respect to REMIC I Group IB Regular Interests
        ending with the designation “A”, for each Distribution Date listed below, the
        weighted average of the rates listed below for such REMIC I Regular Interests
        listed below, weighted on the basis of the Uncertificated Balances of each
        such
        REMIC I Regular Interest for each such Distribution Date:

    

     

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

     

    

      
        	
                Distribution
                  Date

              	
                REMIC
                  I Regular Interest

              	
                Rate

              
	
                1

              	
                IB-1-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	 
	
                2

              	
                IB-2-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                3

              	
                IB-3-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  and IB-2-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                4

              	
                IB-4-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-3-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                5

              	
                IB-5-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-4-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                6

              	
                IB-6-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-5-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                7

              	
                IB-7-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-6-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                8

              	
                IB-8-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-7-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                9

              	
                IB-9-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-8-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                10

              	
                IB-10-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-9-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                11

              	
                IB-11-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-10-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                12

              	
                IB-12-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-11-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                13

              	
                IB-13-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-12-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                14

              	
                IB-14-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-13-A

              	
                REMIC
                  I Remittance Rate

              

      

       

      
        
          
          

        

        
          82

          
            

          

        

        
          
          

        

      

       

      
        	
                Distribution
                  Date

              	
                REMIC
                  I Regular Interest

              	
                Rate

              

      

      
        	
                15

              	
                IB-15-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-14-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                16

              	
                IB-16-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-15-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                17

              	
                IB-17-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-16-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                18

              	
                IB-18-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-17-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                19

              	
                IB-19-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-18-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                20

              	
                IB-20-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-19-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                21

              	
                IB-21-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-20-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                22

              	
                IB-22-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-21-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                23

              	
                IB-23-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-22-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                24

              	
                IB-24-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-23-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                25

              	
                IB-25-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-24-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                26

              	
                IB-26-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-25-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                27

              	
                IB-27-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-26-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                28

              	
                IB-28-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-27-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                29

              	
                IB-29-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-28-A

              	
                REMIC
                  I Remittance Rate

              

      

       

      
        
          
          

        

        
          83

          
            

          

        

        
          
          

        

      

       

      
        	
                Distribution
                  Date

              	
                REMIC
                  I Regular Interest

              	
                Rate

              

      

      
        	
                30

              	
                IB-30-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-29-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                31

              	
                IB-31-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-30-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                32

              	
                IB-32-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-31-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                33

              	
                IB-33-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-32-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                34

              	
                IB-34-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-33-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                35

              	
                IB-35-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-34-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                36

              	
                IB-36-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-35-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                37

              	
                IB-37-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-36-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                38

              	
                IB-38-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-37-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                39

              	
                IB-39-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-38-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                40

              	
                IB-40-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-39-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                41

              	
                IB-41-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-40-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                42

              	
                IB-42-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-41-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                43

              	
                IB-43-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-42-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                44

              	
                IB-44-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-43-A

              	
                REMIC
                  I Remittance Rate

              

      

       

      
        
          
          

        

        
          84

          
            

          

        

        
          
          

        

      

       

      
        	
                Distribution
                  Date

              	
                REMIC
                  I Regular Interest

              	
                Rate

              

      

      
        	
                45

              	
                IB-45-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-44-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                46

              	
                IB-46-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-45-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                47

              	
                IB-47-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-46-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                48

              	
                IB-48-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-47-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                49

              	
                IB-49-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-48-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                50

              	
                IB-50-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-49-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                51

              	
                IB-51-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-50-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                52

              	
                IB-52-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-51-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                53

              	
                IB-53-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-52-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                54

              	
                IB-54-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-53-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                55

              	
                IB-55-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-54-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                56

              	
                IB-56-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-55-A

              	
                REMIC
                  I Remittance Rate

              
	 	 	 
	
                57

              	
                IB-57-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-56-A

              	
                REMIC
                  I Remittance Rate

              
	
                58

              	
                IB-58-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-57-A

              	
                REMIC
                  I Remittance Rate

              
	
                59

              	
                IB-59-A
                  through IB-60-A

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-58-A

              	
                REMIC
                  I Remittance Rate

              
	
                60

              	
                IB-60-A
                  

              	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	
                IB-1-A
                  through IB-59-A

              	
                REMIC
                  I Remittance Rate

              
	
                thereafter

              	
                IB-1-A
                  through IB-60-A

              	
                REMIC
                  I Remittance Rate

              

      

    

     

    
      
        
        

      

      
        85

        
          

        

      

      
        
        

      

    

     

    

      With
        respect to REMIC II Regular Interest II-GRP, a per annum rate (but not less
        than
        zero) equal to the weighted average of: (w) with respect to REMIC I Regular
        Interest II, the REMIC I Remittance Rate for such REMIC I Regular Interest
        for
        each such Distribution Date, (x) with respect to REMIC I Group II Regular
        Interests ending with the designation “B”, the weighted average of the REMIC I
        Remittance Rates for such REMIC I Regular Interests, weighted on the basis
        of
        the Uncertificated Balances of each such REMIC I Regular Interest for each
        such
        Distribution Date and (y) with respect to REMIC I Group II Regular Interests
        ending with the designation “A”, for each Distribution Date listed below, the
        weighted average of the rates listed below for such REMIC I Regular Interests
        listed below, weighted on the basis of the Uncertificated Balances of each
        such
        REMIC I Regular Interest for each such Distribution Date:

      

        
          	
                  Distribution
                    Date

                	
                  REMIC
                    I Regular Interest

                	
                  Rate

                
	
                  1

                	
                  II-1-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	 	 
	
                  2

                	
                  II-2-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  3

                	
                  II-3-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    and II-2-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  4

                	
                  II-4-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-3-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  5

                	
                  II-5-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-4-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  6

                	
                  II-6-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-5-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  7

                	
                  II-7-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-6-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  8

                	
                  II-8-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-7-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  9

                	
                  II-9-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-8-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  10

                	
                  II-10-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-9-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  11

                	
                  II-11-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-10-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  12

                	
                  II-12-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-11-A

                	
                  REMIC
                    I Remittance Rate

                

        

         

        
          
            
            

          

          
            86

            
              

            

          

          
            
            

          

        

         

        
          	
                  Distribution
                    Date

                	
                  REMIC
                    I Regular Interest

                	
                  Rate

                

        

        
          	
                  13

                	
                  II-13-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-12-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  14

                	
                  II-14-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-13-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  15

                	
                  II-15-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-14-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  16

                	
                  II-16-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-15-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  17

                	
                  II-17-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-16-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  18

                	
                  II-18-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-17-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  19

                	
                  II-19-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-18-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  20

                	
                  II-20-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-19-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  21

                	
                  II-21-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-20-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  22

                	
                  II-22-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-21-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  23

                	
                  II-23-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-22-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  24

                	
                  II-24-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-23-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  25

                	
                  II-25-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-24-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  26

                	
                  II-26-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-25-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  27

                	
                  II-27-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-26-A

                	
                  REMIC
                    I Remittance Rate

                

        

         

        
          
            
            

          

          
            87

            
              

            

          

          
            
            

          

        

         

        
          	
                  Distribution
                    Date

                	
                  REMIC
                    I Regular Interest

                	
                  Rate

                

        

        
          	
                  28

                	
                  II-28-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-27-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  29

                	
                  II-29-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-28-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  30

                	
                  II-30-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-29-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  31

                	
                  II-31-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-30-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  32

                	
                  II-32-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-31-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  33

                	
                  II-33-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-32-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  34

                	
                  II-34-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-33-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  35

                	
                  II-35-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-34-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  36

                	
                  II-36-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-35-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  37

                	
                  II-37-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-36-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  38

                	
                  II-38-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-37-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  39

                	
                  II-39-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-38-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  40

                	
                  II-40-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-39-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  41

                	
                  II-41-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-40-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  42

                	
                  II-42-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-41-A

                	
                  REMIC
                    I Remittance Rate

                

        

         

        
          
            
            

          

          
            88

            
              

            

          

          
            
            

          

        

         

        
          	
                  Distribution
                    Date

                	
                  REMIC
                    I Regular Interest

                	
                  Rate

                

        

        
          	
                  43

                	
                  II-43-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-42-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  44

                	
                  II-44-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-43-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  45

                	
                  II-45-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-44-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  46

                	
                  II-46-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-45-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  47

                	
                  II-47-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-46-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  48

                	
                  II-48-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-47-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  49

                	
                  II-49-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-48-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  50

                	
                  II-50-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-49-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  51

                	
                  II-51-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-50-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  52

                	
                  II-52-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-51-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  53

                	
                  II-53-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-52-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  54

                	
                  II-54-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-53-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  55

                	
                  II-55-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-54-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  56

                	
                  II-56-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-55-A

                	
                  REMIC
                    I Remittance Rate

                
	 	 	 
	
                  57

                	
                  II-57-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-56-A

                	
                  REMIC
                    I Remittance Rate

                
	
                  58

                	
                  II-58-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-57-A

                	
                  REMIC
                    I Remittance Rate

                

        

         

        
          
            
            

          

          
            89

            
              

            

          

          
            
            

          

        

         

        
          	
                  Distribution
                    Date

                	
                  REMIC
                    I Regular Interest

                	
                  Rate

                

        

        
          	
                  59

                	
                  II-59-A
                    through II-60-A

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-58-A

                	
                  REMIC
                    I Remittance Rate

                
	
                  60

                	
                  II-60-A
                    

                	
                  2
                    multiplied by Swap LIBOR, subject to a maximum rate of REMIC
                    I Remittance
                    Rate

                
	 	
                  II-1-A
                    through II-59-A

                	
                  REMIC
                    I Remittance Rate

                
	
                  thereafter

                	
                  II-1-A
                    through II-60-A

                	
                  REMIC
                    I Remittance Rate

                

        

      

    

    
 

    
      With
        respect to REMIC II Regular Interest IO, and (i) the 1st Distribution Date
        through the 60th
        Distribution Date, the excess of (x) the weighted average of the REMIC I
        Remittance Rates for REMIC I Regular Interests including the designation
“A”,
        over (y) 2 multiplied by Swap LIBOR and (ii) thereafter,
        0.00%.

    

     

    “REMIC
      II
      Sub WAC Allocation Percentage”: 50% of any amount payable or loss attributable
      from the Mortgage Loans, which shall be allocated to REMIC II Regular Interest
      IA-SUB, REMIC II Regular Interest IA-GRP, REMIC II Regular Interest IB-SUB,
      REMIC II Regular Interest IB-GRP, REMIC II Regular Interest II-SUB, REMIC II
      Regular Interest II-GRP and REMIC II Regular Interest XX.

     

    “REMIC
      II
      Subordinated Balance Ratio”: The ratio among the Uncertificated Balances of each
      REMIC II Regular Interest ending with the designation “SUB,”, equal to the ratio
      between, with respect to each such REMIC II Regular Interest, the excess of
      (x)
      the aggregate Stated Principal Balance of the Group IA Mortgage Loans, the
      Group
      IB Mortgage Loans or Group II Mortgage Loans, as applicable over (y) the current
      Certificate Principal Balance of related Class A Certificates.

     

    “REMIC
      II
      Required Overcollateralization Amount”: 0.50% of the Required
      Overcollateralization Amount.

     

    “REMIC
      III”: The segregated pool of assets consisting of all of the REMIC II Regular
      Interests conveyed in trust to the Trustee, for the benefit of the REMIC III
      Certificateholders pursuant to Section 2.07, and all amounts deposited
      therein, with respect to which a separate REMIC election is to be
      made.

     

    “REMIC
      III Certificate”: Any Regular Certificate or Class R Certificate.

     

    “REMIC
      III Certificateholder”: The Holder of any REMIC III Certificate.

     

    “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.

     

    “REMIC
      Regular Interest”: Any REMIC I Regular Interest or REMIC II Regular
      Interest.

     

    
      
        
        

      

      
        90

        
          

        

      

      
        
        

      

    

     

    “REMIC
      Remittance Rate”: The REMIC I Remittance Rate or the REMIC II Remittance
      Rate.

     

    “Remittance
      Report”: A report by the related Servicer pursuant to Section 5.03(a) of
      this Agreement or pursuant to the Servicing Agreement, as
      applicable.

     

    “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
      Servicers in respect of an REO Property pursuant to Section 3.21 of this
      Agreement or pursuant to the Servicing Agreement, as applicable.

     

    “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 Net 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 10.01 of this Agreement that
      is allocable to such REO Property) or otherwise, net of any portion of such
      amounts (i) payable in respect of the proper operation, management and
      maintenance of such REO Property or (ii) payable or reimbursable to the
      Servicers pursuant to Section 3.21(d) of this Agreement or pursuant to the
      Servicing Agreement, as applicable, for unpaid Servicing Fees in respect of
      the
      related Mortgage Loan and unreimbursed Servicing Advances and P&I 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 related Servicer or its nominee
      on behalf of REMIC I through foreclosure or deed-in-lieu of foreclosure, as
      described in Section 3.21 of this Agreement or pursuant to the Servicing
      Agreement, as applicable.

     

    “Reportable
      Event”: Has the meaning set forth in Section 5.06(b) of this
      Agreement.

     

    “Required
      Overcollateralization Amount”: With respect to any Distribution Date (i) prior
      to the Stepdown Date, the product of (A) 1.25% and (B) the aggregate 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)
      2.50% of the aggregate Stated Principal Balance of the Mortgage Loans as of
      the
      last day of the related Due Period and (y) an amount equal to the product of
      (A)
      0.50% and (B) the aggregate principal balance of the Mortgage Loans as of the
      Cut-off Date, and (iii) on or after the Stepdown Date and a Trigger Event is
      in
      effect, the Required Overcollateralization 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 and Mezzanine Certificates to zero, the Required
      Overcollateralization Amount shall be zero.

     

    
      
        
        

      

      
        91

        
          

        

      

      
        
        

      

    

     

    “Reserve
      Fund”: A fund created pursuant to Section 3.24 which shall be an asset of
      the Trust Fund but which shall not be an asset of any Trust REMIC.

     

    “Reserve
      Interest Rate”: With respect to any Interest Determination Date, the rate per
      annum that the Securities Administrator 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 Securities Administrator, 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 Securities Administrator can determine no such arithmetic mean, the
      lowest one-month U.S. dollar lending rate which New York City banks selected
      by
      the Securities Administrator are quoting on such Interest Determination Date
      to
      leading European banks.

     

    “Residential
      Dwelling”: Any one of the following: (i) a detached one-family dwelling, (ii) a
      detached two- to four-family dwelling, (iii) a one-family dwelling unit in
      a
      Fannie Mae eligible condominium project, (iv) a manufactured home or (v) a
      detached one-family dwelling in a planned unit development, none of which is
      a
      co-operative or mobile home.

     

    “Residual
      Certificate”: Any one of the Class R Certificates.

     

    “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 officer of the Trustee
      having direct responsibility for the administration of this Agreement 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.

     

    “Rule
      144A”: As defined in Section 6.01(c).

     

    “S&P”:
      Standard and Poor’s, a division of the McGraw-Hill Companies, Inc.

     

    “Sarbanes-Oxley
      Act”: Means 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 of 2002, as amended
      from
      time to time, 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 of 2002 is amended, (b) the Rules referred to in clause
      (ii)
      are modified or superceded 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 of 2002, 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, the Depositor and the Sponsor following a negotiation in good
      faith to determine how to comply with any such new requirements.

     

    
      
        
        

      

      
        92

        
          

        

      

      
        
        

      

    

     

    “Scheduled
      Principal Balance”: With respect to any Mortgage Loan: (a) as of the Cut-off
      Date, the outstanding principal balance of such Mortgage Loan as of such date,
      net of the principal portion of all unpaid Monthly Payments, if any, due on
      or
      before such date; (b) as of any Due Date subsequent to the Cut-off Date up
      to
      and including the Due Date in the calendar month in which a Liquidation Event
      occurs with respect to such Mortgage Loan, the Scheduled Principal Balance
      of
      such Mortgage Loan as of the Cut-off Date, minus the sum of (i) the principal
      portion of each Monthly Payment due on or before such Due Date but subsequent
      to
      the Cut-off Date, whether or not received, (ii) all Principal Prepayments
      received before such Due Date but after the Cut-off Date, (iii) the principal
      portion of all Liquidation Proceeds and Insurance Proceeds received before
      such
      Due Date but after the Cut-off Date, net of any portion thereof that represents
      principal due (without regard to any acceleration of payments under the related
      Mortgage and Mortgage Note) on a Due Date occurring on or before the date on
      which such proceeds were received and (iv) any Realized Loss incurred with
      respect thereto as a result of a Deficient Valuation occurring before such
      Due
      Date, but only to the extent such Realized Loss represents a reduction in the
      portion of principal of such Mortgage Loan not yet due (without regard to any
      acceleration of payments under the related Mortgage and Mortgage Note) as of
      the
      date of such Deficient Valuation; and (c) as of any Due Date subsequent to
      the
      occurrence of a Liquidation Event with respect to such Mortgage Loan, zero.
      With
      respect to any REO Property: (a) as of any Due Date subsequent to the date
      of
      its acquisition on behalf of the Trust Fund up to and including the Due Date
      in
      the calendar month in which a Liquidation Event occurs with respect to such
      REO
      Property, an amount (not less than zero) equal to the Scheduled Principal
      Balance of the related Mortgage Loan as of the Due Date in the calendar month
      in
      which such REO Property was acquired, minus the aggregate amount of REO
      Principal Amortization, if any, in respect of REO Property for all previously
      ended calendar months; and (b) as of any Due Date subsequent to the occurrence
      of a Liquidation Event with respect to such REO Property, zero.

     

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

     

    “Securities
      Administrator”: As of the Closing Date, Wells Fargo Bank, National Association
      and thereafter, its respective successors in interest that meet the
      qualifications of this Agreement. The Securities Administrator and the Master
      Servicer shall at all times be the same Person or Affiliates.

     

    “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.

     

    
      
        
        

      

      
        93

        
          

        

      

      
        
        

      

    

     

    “Servicer”:
      Countrywide or New Century, as applicable, or any successor thereto appointed
      hereunder or under the Servicing Agreement in connection with the servicing
      and
      administration of the related Mortgage Loans.

     

    “Servicer
      Event of Default”: One or more of the events described in Section 8.01(a)
      of this Agreement.

     

    “Servicer
      Remittance Date”: With respect to any Distribution Date, the 22nd day of the
      month in which such Distribution Date occurs; provided that if such 22nd day
      of
      a given month is not a Business Day, the Servicer Remittance Date for such
      month
      shall be the Business Day immediately preceding such 22nd day; provided further,
      that if the Servicer Remittance Date falls on a Friday, the Servicer Remittance
      Date shall be the Business Day immediately preceding such Friday.

     

    “Servicer
      Report”: A report (substantially in the form of Schedule 5 hereto) or otherwise
      in form and substance acceptable to the Master Servicer and Securities
      Administrator on an electronic data file or tape prepared by the related
      Servicer pursuant to Section 5.03(a) of this Agreement or pursuant to the
      Servicing Agreement, as applicable, with such additions, deletions and
      modifications as agreed to by the Master Servicer, the Securities Administrator
      and the related Servicer.

     

    “Service(s)(ing)”:
      Means, in accordance with Regulation AB, the act of servicing and administering
      the Mortgage Loans or any other assets of the Trust 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 shall have
      the
      meaning commonly understood by participants in the residential mortgage-backed
      securitization market.

     

    “Servicing
      Advances”: The customary and reasonable “out-of-pocket” costs and expenses
      incurred prior to or on or after the Cut-off Date (the amounts incurred prior
      to
      the Cut-off Date shall be identified on the Servicing Advance Schedule by (a)
      the related Servicer with respect to any Mortgage Loans that were transferred
      to
      the related Servicer prior to the Cut-off Date and/or (b) the Depositor with
      respect to any Mortgage Loans that were transferred to the related Servicer
      after the Cut-off Date) by the Servicer in connection with a default,
      delinquency or other unanticipated event by such Servicer in the performance
      of
      its servicing obligations, including, but not limited to, the cost of (i) the
      preservation, restoration and protection of a Mortgaged Property, (ii) any
      enforcement or judicial proceedings, including but not limited to foreclosures,
      in respect of a particular Mortgage Loan, including any expenses incurred in
      relation to any such proceedings that result from the Mortgage Loan being
      registered on the MERS® System, (iii) the management (including reasonable fees
      in connection therewith) and liquidation of any REO Property, (iv) the
      performance of its obligations under Section 3.01, Section 3.07, Section 3.11,
      Section 3.13 and Section 3.21 of this Agreement or under corresponding Sections
      of the Servicing Agreement and (v) obtaining any legal documentation required
      to
      be included in the Mortgage File and/or correcting any outstanding title issues
      (i.e., any lien or encumbrance on the Mortgaged Property that prevents the
      effective enforcement of the intended lien position) reasonably necessary for
      the related Servicer perform its obligations under this Agreement. Servicing
      Advances also include any reasonable “out-of-pocket” cost and expenses
      (including legal fees) incurred by the Servicers in connection with executing
      and recording instruments of satisfaction, deeds of reconveyance or Assignments
      to the extent not recovered from the Mortgagor or otherwise payable under this
      Agreement. The Servicers shall not be required to make any Nonrecoverable
      Servicing Advances.

     

    
      
        
        

      

      
        94

        
          

        

      

      
        
        

      

    

     

    “Servicing
      Advance Schedule”: With respect to any Servicing Advances incurred prior to the
      Cut-off Date, the schedule or schedules provided by (a) the related Servicer
      with respect to any Mortgage Loans that were transferred to such Servicer prior
      to the Cut-off Date and/or (b) the Depositor with respect to any Mortgage Loans
      that were transferred to any Servicer after the Cut-off Date, as applicable,
      to
      the Master Servicer and, if such schedule is provided by the Depositor, to
      the
      related Servicer, to the Servicer, on the date on which the Servicer seeks
      reimbursement for a Servicing Advance made by the Servicer, which schedule
      or
      schedules shall contain the information set forth on Schedule 6.

     

    “Servicing
      Agreement”: The Master Mortgage Loan Purchase and Interim Servicing Agreement
      dated as of March 1, 2005, as amended by Amendment Number One, dated as of
      May
      1, 2005, Amendment Number Two, dated as of September 12, 2005, and Amendment
      Number Three, dated as of June 15, 2006, each among the Sponsor, New Century
      and
      NC Capital Corporation, as modified by the New Century Assignment
      Agreement.

     

    “Servicing
      Criteria”: Means 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-twelfth of the product of the Servicing Fee Rate multiplied by
      the
      Scheduled Principal Balance of the Mortgage Loans as of the Due Date in the
      preceding calendar month. The Servicing Fee is payable solely from collections
      of interest on the related Mortgage Loans.

     

    “Servicing
      Fee Rate”: 0.50% per annum.

     

    “Servicing
      Function Participant”: Means any Sub-Servicer, Subcontractor, other than the
      Servicers, the Master Servicer, the Custodian, the Trustee and the Securities
      Administrator, that is determined by the related Servicer to be “participating
      in the servicing function” within the meaning of Item 1122 of Regulation
      AB.

     

    “Servicing
      Officer”: Any officer of the Servicers or the Master Servicer involved in, or
      responsible for, the administration and servicing of the related Mortgage Loans,
      whose name and specimen signature appear on a list of Servicing Officers
      furnished by the Servicers or the Master Servicer to the Trustee, the Master
      Servicer (in the case of the Servicers), the Securities Administrator and the
      Depositor on the Closing Date, as such list may from time to time be
      amended.

     

    “Servicing
      Transfer Date”: December 30, 2006.

     

    
      
        
        

      

      
        95

        
          

        

      

      
        
        

      

    

     

    “Single
      Certificate”: With respect to any Class of Certificates (other than 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 Residual Certificates, a hypothetical
      Certificate of such Class evidencing a 100% Percentage Interest in such Class.
      

     

    “Sponsor”:
      DB Structured Products, Inc. or its successor in interest, in its capacity
      as
      seller under the Mortgage Loan Purchase Agreement.

     

    “Startup
      Day”: With respect to each Trust REMIC, the day designated as such pursuant to
      Section 11.01(b) hereof.

     

    “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 Scheduled Principal Balance of such Mortgage Loan
      as
      of the Cut-off Date, as shown in 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 related Servicer or a successor to the related Servicer and distributed
      pursuant to Section 5.01 of this Agreement on or before such date of
      determination, (ii) all Principal Prepayments received after the Cut-off Date,
      to the extent distributed pursuant to Section 5.01 of this Agreement on or
      before such date of determination, (iii) all Liquidation Proceeds and Insurance
      Proceeds applied by the related Servicer as recoveries of principal in
      accordance with the provisions of Section 3.13 of this Agreement or the
      corresponding provisions of the Servicing Agreement, as applicable, to the
      extent distributed pursuant to Section 5.01 of this Agreement 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 related Servicer or a successor
      to
      the Servicer and distributed pursuant to Section 5.01 of this Agreement, 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 5.01 of this
      Agreement 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 earlier to occur of (i) the later to occur of (x) the Distribution
      Date occurring in December 2009 and (y) the first Distribution Date on which
      the
      Credit Enhancement Percentage (calculated for this purpose only after taking
      into account distributions of principal on the Mortgage Loans, but 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 greater than or equal to approximately 37.20% and (ii) the first
      Distribution Date following the Distribution Date on which the aggregate
      Certificate Principal Balance of the Class A Certificates has been reduced
      to
      zero.

     

    
      
        
        

      

      
        96

        
          

        

      

      
        
        

      

    

     

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

     

    “Subordinate
      Certificates”: Collectively, the Mezzanine Certificates and the Class CE
      Certificates.

     

    “Subsequent
      Recoveries”: As of any Distribution Date, amounts received during the related
      Prepayment Period by a Servicer specifically related to a defaulted Mortgage
      Loan or disposition of an REO Property prior to the related Prepayment Period
      that resulted in a Realized Loss, after the liquidation or disposition of such
      defaulted Mortgage Loan, net of any amounts reimbursable to the Servicer related
      to such Mortgage Loan or REO Property.

     

    “Sub-Servicer”:
      Means any Person that (i) is a Servicing Function Participant, (ii) services
      Mortgage Loans on behalf of any Servicer, the Master Servicer, the Securities
      Administrator or the Trustee, and (iii) is responsible for the performance
      (whether directly or through sub-servicers or Subcontractors) of a substantial
      portion of the material servicing functions required to be performed under
      this
      Agreement or any related Sub-Servicing Agreement that is identified in Item
      1122(d) of Regulation AB.

     

    “Sub-Servicing
      Agreement”: The written contract between the related Servicer and a Sub-Servicer
      relating to servicing and administration of certain Mortgage Loans as provided
      in Section 3.02 of this Agreement or the Servicing Agreement.

     

    “Substitution
      Shortfall Amount”: As defined in Section 2.03 of this
      Agreement.

     

    “Supplemental
      Interest Trust”: The corpus of a trust created pursuant to Section 5.07 of
      this Agreement and designated as the “Supplemental Interest Trust,” consisting
      of the Swap Agreement, the Class IO Interest and the right to receive payments
      in respect of the Class IO Distribution Amount. For the avoidance of doubt,
      the
      Supplemental Interest Trust does not constitute a part of the Trust
      Fund.

     

    “Supplemental
      Interest Trust Trustee”: HSBC Bank USA, National Association a national banking
      association, or its successor in interest, or any successor supplemental
      interest trust trustee appointed as provided herein or in the Swap Agreement
      provided.

     

    “Swap
      Agreement”: The interest rate swap agreement, dated as of November 30, 2006,
      between the Supplemental Interest Trust Trustee and the Swap Provider, including
      any schedule, confirmations, credit support annex or other credit support
      document relating thereto, and attached hereto as Exhibit I.

     

    
      
        
        

      

      
        97

        
          

        

      

      
        
        

      

    

     

    “Swap
      Collateral Account”: Shall mean the segregated non-interest bearing trust
      account created and maintained by the Securities Administrator pursuant to
      Section 5.09 hereof.

     

    “Swap
      Credit Support Annex”: The credit support annex, dated as of November 30, 2006,
      between the Supplemental Interest Trust Trustee and the Swap Provider, which
      is
      annexed to and forms part of the Swap Agreement. 

     

    “Swap
      LIBOR”: LIBOR as determined pursuant to the Swap Agreement.

     

    “Swap
      Notional Amount”: For each calculation period as defined in the Swap Agreement,
      the amount set forth below:

     

    
      	
              Distribution
                Date

            	 	
              Swap
                Notional Amount ($)

            	 
	
              December
                2006

            	 	 	
              1,501,392,227.00

            	 
	
              January
                2007

            	 	 	
              1,481,885,690.00

            	 
	
              February
                2007

            	 	 	
              1,458,448,790.00

            	 
	
              March
                2007

            	 	 	
              1,431,130,769.00

            	 
	
              April
                2007

            	 	 	
              1,400,011,442.00

            	 
	
              May
                2007

            	 	 	
              1,365,201,808.00

            	 
	
              June
                2007

            	 	 	
              1,326,844,310.00

            	 
	
              July
                2007

            	 	 	
              1,285,113,062.00

            	 
	
              August
                2007

            	 	 	
              1,240,219,930.00

            	 
	
              September
                2007

            	 	 	
              1,192,463,383.00

            	 
	
              October
                2007

            	 	 	
              1,143,873,010.00

            	 
	
              November
                2007

            	 	 	
              1,097,238,688.00

            	 
	
              December
                2007

            	 	 	
              1,052,514,433.00

            	 
	
              January
                2008

            	 	 	
              1,009,621,662.00

            	 
	
              February
                2008

            	 	 	
              968,485,041.00

            	 
	
              March
                2008

            	 	 	
              929,032,344.00

            	 
	
              April
                2008

            	 	 	
              891,194,329.00

            	 
	
              May
                2008

            	 	 	
              854,904,616.00

            	 
	
              June
                2008

            	 	 	
              820,099,561.00

            	 
	
              July
                2008

            	 	 	
              786,581,316.00

            	 
	
              August
                2008

            	 	 	
              753,687,672.00

            	 
	
              September
                2008

            	 	 	
              702,822,618.00

            	 
	
              October
                2008

            	 	 	
              607,809,290.00

            	 
	
              November
                2008

            	 	 	
              527,947,624.00

            	 
	
              December
                2008

            	 	 	
              461,453,102.00

            	 
	
              January
                2009

            	 	 	
              414,271,641.00

            	 
	
              February
                2009

            	 	 	
              396,029,563.00

            	 
	
              March
                2009

            	 	 	
              378,902,623.00

            	 
	
              April
                2009

            	 	 	
              362,533,848.00

            	 
	
              May
                2009

            	 	 	
              346,896,217.00

            	 
	
              June
                2009

            	 	 	
              331,948,134.00

            	 

    

     

     

     

    
      
        
        

      

      
        98

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              Swap
                Notional Amount ($)

            	 
	
              July
                2009

            	 	 	
              317,658,473.00

            	 
	
              August
                2009

            	 	 	
              303,997,647.00

            	 
	
              September
                2009

            	 	 	
              290,937,478.00

            	 
	
              October
                2009

            	 	 	
              278,451,524.00

            	 
	
              November
                2009

            	 	 	
              266,514,484.00

            	 
	
              December
                2009

            	 	 	
              255,100,696.00

            	 
	
              January
                2010

            	 	 	
              244,186,720.00

            	 
	
              February
                2010

            	 	 	
              233,750,210.00

            	 
	
              March
                2010

            	 	 	
              223,769,855.00

            	 
	
              April
                2010

            	 	 	
              214,225,420.00

            	 
	
              May
                2010

            	 	 	
              205,097,484.00

            	 
	
              June
                2010

            	 	 	
              196,367,315.00

            	 
	
              July
                2010

            	 	 	
              188,017,206.00

            	 
	
              August
                2010

            	 	 	
              180,030,254.00

            	 
	
              September
                2010

            	 	 	
              172,390,326.00

            	 
	
              October
                2010

            	 	 	
              165,082,029.00

            	 
	
              November
                2010

            	 	 	
              158,090,649.00

            	 
	
              December
                2010

            	 	 	
              151,402,131.00

            	 
	
              January
                2011

            	 	 	
              145,003,066.00

            	 
	
              February
                2011

            	 	 	
              138,880,652.00

            	 
	
              March
                2011

            	 	 	
              133,022,664.00

            	 
	
              April
                2011

            	 	 	
              127,417,426.00

            	 
	
              May
                2011

            	 	 	
              122,053,792.00

            	 
	
              June
                2011

            	 	 	
              116,921,113.00

            	 
	
              July
                2011

            	 	 	
              112,009,223.00

            	 
	
              August
                2011

            	 	 	
              107,308,372.00

            	 
	
              September
                2011

            	 	 	
              102,809,260.00

            	 
	
              October
                2011

            	 	 	
              98,498,559.00

            	 
	
              November
                2011

            	 	 	
              94,371,455.00

            	 

    

    

     

    “Swap
      Provider”: The swap provider under the Swap Agreement. Initially, the Swap
      Provider shall be Deutsche Bank AG New York Branch.

     

    “Swap
      Provider Trigger Event”: A Swap Provider Trigger Event shall have occurred if
      any of the following has occurred: (i) an Event of Default under the Swap
      Agreement with respect to which the Swap Provider is a Defaulting Party (as
      defined in the Swap Agreement), (ii) a Termination Event under the Swap
      Agreement with respect to which the Swap Provider is the sole Affected Party
      (as
      defined in the Swap Agreement) or (iii) an Additional Termination Event under
      the Swap Agreement with respect to which the Swap Provider is the sole Affected
      Party.

     

    “Swap
      Termination Payment”: Upon the designation of an “Early Termination Date” as
      defined in the Swap Agreement, the payment to be made by the Securities
      Administrator on behalf of the Supplemental Interest Trust Trustee from the
      Supplemental Interest Trust to the Swap Provider, or by the Swap Provider to
      the
      Supplemental Interest Trust, as applicable, pursuant to the terms of the Swap
      Agreement.

     

    
      
        
        

      

      
        99

        
          

        

      

      
        
        

      

    

     

    “Targeted
      Credit Enhancement Test”: With respect to any Distribution Date and (i) the
      Class A-1A Certificates, shall be satisfied if on such Distribution Date the
      percentage obtained by dividing the Certificate Principal Balance of the Class
      A-1A Certificates by the aggregate principal balance of the Group IA Mortgage
      Loans (as of the end of the related Due Period) is equal to or less than
      approximately 62.80%, (ii) the Class A-1B Certificates, shall be satisfied
      if on
      such Distribution Date the percentage obtained by dividing the Certificate
      Principal Balance of the Class A-1B Certificates by the aggregate principal
      balance of the Group IB Mortgage Loans (as of the end of the related Due Period)
      is equal to or less than 62.80% and (iii) the Class A-2 Certificates, shall
      be
      satisfied if on such Distribution Date the percentage obtained by dividing
      the
      sum of the Certificate Principal Balances of the Class A-2 Certificates by
      the
      aggregate principal balance of the Group II Mortgage Loans (as of the end of
      the
      related Due Period) is equal to or less than 62.80%.

     

    “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 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 10.01.

     

    “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 has occurred with respect to a Distribution Date if
      either (x) the Delinquency Percentage exceeds 39.60% of the Credit Enhancement
      Percentage with respect to such Distribution Date or (y) the aggregate amount
      of
      Realized Losses incurred since the Cut-off Date through the last day of the
      related Due Period divided by the aggregate 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:

     

    
      
        
        

      

      
        100

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              Percentage

            
	
              December
                2008 to November 2009

            	 	
              1.25%
                plus 1/12 of 1.50% for each month thereafter

            
	
              December
                2009 to November 2010

            	 	
              2.75%
                plus 1/12 of 1.60% for each month thereafter

            
	
              December
                2010 to November 2011

            	 	
              4.35%
                plus 1/12 of 1.25% for each month thereafter

            
	
              December
                2011 to November 2012

            	 	
              5.60%
                plus 1/12 of 0.70% for each month thereafter

            
	
              December
                2012 to November 2013

            	 	
              6.30%
                plus 1/12 of 0.05% for each month thereafter

            
	
              December
                2013 and thereafter

            	 	
              6.35%

            

    

    

    “Trust”:
      ACE Securities Corp., Home Equity Loan Trust, Series 2006-NC3, the trust created
      hereunder.

     

    “Trust
      Fund”: Collectively, all of the assets of REMIC I, REMIC II, REMIC III and the
      Reserve Fund and any amounts on deposit therein and any proceeds thereof. For
      avoidance of doubt, the Trust Fund does not include the Supplemental Interest
      Trust.

     

    “Trust
      REMIC”: REMIC I, REMIC II or REMIC III.

     

    “Trustee”:
      HSBC Bank USA, National Association a national banking association, or its
      successor in interest, or any successor trustee appointed as herein
      provided.

     

    “Uncertificated
      Balance”: The amount of the REMIC Regular Interests outstanding as of any date
      of determination. As of the Closing Date, the Uncertificated Balance of each
      REMIC 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 the REMIC Regular Interest shall be reduced
      by all distributions of principal made on such REMIC Regular Interest on such
      Distribution Date pursuant to Section 5.01 of this Agreement and, if and to
      the extent necessary and appropriate, shall be further reduced on such
      Distribution Date by Realized Losses as provided in Section 5.04 of this
      Agreement and the Uncertificated Balance of REMIC II Regular Interest ZZ shall
      be increased by interest deferrals as provided in Section 5.01 of this
      Agreement. The Uncertificated Balance of each REMIC Regular Interest shall
      never
      be less than zero.

     

    “Uncertificated
      Interest”: With respect to any REMIC Regular Interest for any Distribution Date,
      one month’s interest at the related REMIC Remittance Rate applicable to such
      REMIC Regular Interest for such Distribution Date, accrued on the Uncertificated
      Balance thereof immediately prior to such Distribution Date. Uncertificated
      Interest in respect of the REMIC Regular Interests 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 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 3.22 or Section 4.19 of this Agreement or
      pursuant to the Servicing Agreement, as applicable, and (b) the aggregate amount
      of any Relief Act Interest Shortfall, if any allocated, in each case, to such
      REMIC Regular Interest or REMIC Regular Interest pursuant to Section 1.02
      of this Agreement. In addition, Uncertificated Interest with respect to each
      Distribution Date, as to any REMIC Regular Interest, shall be reduced by
      Realized Losses, if any, allocated to such REMIC Regular Interest pursuant
      to
      Section 1.02 and Section 5.04 of this Agreement.

     

    
      
        
        

      

      
        101

        
          

        

      

      
        
        

      

    

     

    “Uncertificated
      Notional Amount”: With respect to REMIC II Regular Interest IO and each
      Distribution Date listed below, the aggregate Uncertificated Balance of the
      REMIC I Regular Interests ending with the designation “A” listed
      below:

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interests

            
	
              1

            	 	
              IA-1-A
                through IA-60-A, IB-1-A through IB-60-A and II-1-A through II-60-A
                

            
	
              2

            	 	
              IA-2-A
                through IA-60-A, IB-2-A through IB-60-A and II-2-A through II-60-A
                

            
	
              3

            	 	
              IA-3-A
                through IA-60-A, IB-3-A through IB-60-A and II-3-A through II-60-A
                

            
	
              4

            	 	
              IA-4-A
                through IA-60-A, IB-4-A through IB-60-A and II-4-A through II-60-A
                

            
	
              5

            	 	
              IA-5-A
                through IA-60-A, IB-5-A through IB-60-A and II-5-A through II-60-A
                

            
	
              6

            	 	
              IA-6-A
                through IA-60-A, IB-6-A through IB-60-A and II-6-A through II-60-A
                

            
	
              7

            	 	
              IA-7-A
                through IA-60-A, IB-7-A through IB-60-A and II-7-A through II-60-A
                

            
	
              8

            	 	
              IA-8-A
                through IA-60-A, IB-8-A through IB-60-A and II-8-A through II-60-A
                

            
	
              9

            	 	
              IA-9-A
                through IA-60-A, IB-9-A through IB-60-A and II-9-A through II-60-A
                

            
	
              10

            	 	
              IA-10-A
                through IA-60-A, IB-10-A through IB-60-A and II-10-A through II-60-A
                

            
	
              11

            	 	
              IA-11-A
                through IA-60-A, IB-11-A through IB-60-A and II-11-A through II-60-A
                

            
	
              12

            	 	
              IA-12-A
                through IA-60-A, IB-12-A through IB-60-A and II-12-A through II-60-A
                

            
	
              13

            	 	
              IA-13-A
                through IA-60-A, IB-13-A through IB-60-A and II-13-A through II-60-A
                

            
	
              14

            	 	
              IA-14-A
                through IA-60-A, IB-14-A through IB-60-A and II-14-A through II-60-A
                

            
	
              15

            	 	
              IA-15-A
                through IA-60-A, IB-15-A through IB-60-A and II-15-A through II-60-A
                

            
	
              16

            	 	
              IA-16-A
                through IA-60-A, IB-16-A through IB-60-A and II-16-A through II-60-A
                

            
	
              17

            	 	
              IA-17-A
                through IA-60-A, IB-17-A through IB-60-A and II-17-A through II-60-A
                

            
	
              18

            	 	
              IA-18-A
                through IA-60-A, IB-18-A through IB-60-A and II-18-A through II-60-A
                

            
	
              19

            	 	
              IA-19-A
                through IA-60-A, IB-19-A through IB-60-A and II-19-A through II-60-A
                

            
	
              20

            	 	
              IA-20-A
                through IA-60-A, IB-20-A through IB-60-A and II-20-A through II-60-A
                

            
	
              21

            	 	
              IA-21-A
                through IA-60-A, IB-21-A through IB-60-A and II-21-A through II-60-A
                

            
	
              22

            	 	
              IA-22-A
                through IA-60-A, IB-22-A through IB-60-A and II-22-A through II-60-A
                

            
	
              23

            	 	
              IA-23-A
                through IA-60-A, IB-23-A through IB-60-A and II-23-A through II-60-A
                

            
	
              24

            	 	
              IA-24-A
                through IA-60-A, IB-24-A through IB-60-A and II-24-A through II-60-A
                

            
	
              25

            	 	
              IA-25-A
                through IA-60-A, IB-25-A through IB-60-A and II-25-A through II-60-A
                

            
	
              26

            	 	
              IA-26-A
                through IA-60-A, IB-26-A through IB-60-A and II-26-A through II-60-A
                

            
	
              27

            	 	
              IA-27-A
                through IA-60-A, IB-27-A through IB-60-A and II-27-A through II-60-A
                

            
	
              28

            	 	
              IA-28-A
                through IA-60-A, IB-28-A through IB-60-A and II-28-A through II-60-A
                

            
	
              29

            	 	
              IA-29-A
                through IA-60-A, IB-29-A through IB-60-A and II-29-A through II-60-A
                

            
	
              30

            	 	
              IA-30-A
                through IA-60-A, IB-30-A through IB-60-A and II-30-A through II-60-A
                

            
	
              31

            	 	
              IA-31-A
                through IA-60-A, IB-31-A through IB-60-A and II-31-A through II-60-A
                

            
	
              32

            	 	
              IA-32-A
                through IA-60-A, IB-32-A through IB-60-A and II-32-A through II-60-A
                

            
	
              33

            	 	
              IA-33-A
                through IA-60-A, IB-33-A through IB-60-A and II-33-A through II-60-A
                

            
	
              34

            	 	
              IA-34-A
                through IA-60-A, IB-34-A through IB-60-A and II-34-A through II-60-A
                

            
	
              35

            	 	
              IA-35-A
                through IA-60-A, IB-35-A through IB-60-A and II-35-A through II-60-A
                

            
	
              36

            	 	
              IA-36-A
                through IA-60-A, IB-36-A through IB-60-A and II-36-A through II-60-A
                

            
	
              37

            	 	
              IA-37-A
                through IA-60-A, IB-37-A through IB-60-A and II-37-A through II-60-A
                

            
	
              38

            	 	
              IA-38-A
                through IA-60-A, IB-38-A through IB-60-A and II-38-A through II-60-A
                

            
	
              39

            	 	
              IA-39-A
                through IA-60-A, IB-39-A through IB-60-A and II-39-A through II-60-A
                

            
	
              40

            	 	
              IA-40-A
                through IA-60-A, IB-40-A through IB-60-A and II-40-A through II-60-A
                

            
	
              41

            	 	
              IA-41-A
                through IA-60-A, IB-41-A through IB-60-A and II-41-A through II-60-A
                

            
	
              42

            	 	
              IA-42-A
                through IA-60-A, IB-42-A through IB-60-A and II-42-A through II-60-A
                

            
	
              43

            	 	
              IA-43-A
                through IA-60-A, IB-43-A through IB-60-A and II-43-A through II-60-A
                

            
	
              44

            	 	
              IA-44-A
                through IA-60-A, IB-44-A through IB-60-A and II-44-A through II-60-A
                

            
	
              45

            	 	
              IA-45-A
                through IA-60-A, IB-45-A through IB-60-A and II-45-A through II-60-A
                

            
	
              46

            	 	
              IA-46-A
                through IA-60-A, IB-46-A through IB-60-A and II-46-A through II-60-A
                

            
	
              47

            	 	
              IA-47-A
                through IA-60-A, IB-47-A through IB-60-A and II-47-A through II-60-A
                

            
	
              48

            	 	
              IA-48-A
                through IA-60-A, IB-48-A through IB-60-A and II-48-A through II-60-A
                

            
	
              49

            	 	
              IA-49-A
                through IA-60-A, IB-49-A through IB-60-A and II-49-A through II-60-A
                

            
	
              50

            	 	
              IA-50-A
                through IA-60-A, IB-50-A through IB-60-A and II-50-A through II-60-A
                

            
	
              51

            	 	
              IA-51-A
                through IA-60-A, IB-51-A through IB-60-A and II-51-A through II-60-A
                

            
	
              52

            	 	
              IA-52-A
                through IA-60-A, IB-52-A through IB-60-A and II-52-A through II-60-A
                

            
	
              53

            	 	
              IA-53-A
                through IA-60-A, IB-53-A through IB-60-A and II-53-A through II-60-A
                

            
	
              54

            	 	
              IA-54-A
                through IA-60-A, IB-54-A through IB-60-A and II-54-A through II-60-A
                

            
	
              55

            	 	
              IA-55-A
                through IA-60-A, IB-55-A through IB-60-A and II-55-A through II-60-A
                

            
	
              56

            	 	
              IA-56-A
                through IA-60-A, IB-56-A through IB-60-A and II-56-A through II-60-A
                

            
	
              57

            	 	
              IA-57-A
                through IA-60-A, IB-57-A through IB-60-A and II-57-A through II-60-A
                

            
	
              58

            	 	
              IA-58-A
                through IA-60-A, IB-58-A through IB-60-A and II-58-A through II-60-A
                

            
	
              59

            	 	
              IA-59-A
                and IA-60-A, IB-59-A and IB-60-A and II-59-A and II-60-A
                

            
	
              60

            	 	
              IA-60-A,
                IB-60-A and II-60-A

            
	
              thereafter

            	 	
              $0.00

            

    

     

    
      
        
        

      

      
        102

        
          

        

      

      
        
        

      

    

    
 

    With
      respect to the Class IO Interest and any Distribution Date, an amount equal
      to
      the Uncertificated Notional Amount of the REMIC II Regular Interest
      IO.

     

    “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 3.11 of this
      Agreement or pursuant to the Servicing Agreement.

     

    “United
      States Person”: A citizen or resident of the United States, a corporation,
      partnership or other entity created or organized in, or under the laws of,
      the
      United States or any political subdivision thereof (except, in the case of
      a
      partnership, to the extent provided in regulations) provided that, for purposes
      solely of the restrictions on the transfer of any Class R Certificate, 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 to be United States Persons, or an estate whose income is subject
      to United States federal income tax regardless of its source, or a trust if
      a
      court within the United States is able to exercise primary supervision over
      the
      administration of the trust and one or more United States persons have the
      authority to control all substantial decisions of the trust. To the extent
      prescribed in regulations by the Secretary of the Treasury, a trust which was
      in
      existence on August 20, 1996 (other than a trust treated as owned by the grantor
      under subpart E of part I of subchapter J of chapter I of the Code), and which
      was treated as a United States person on August 20, 1996 may elect to continue
      to be treated as a United States person notwithstanding the previous sentence.
      The term “United States” shall have the meaning set forth in Section 7701
      of the Code.

     

    “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 the originator of the
      Mortgage Loan 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 the originator of
      the
      Mortgage Loan in accordance with the originator’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 the lesser of (1) the value determined by an appraisal made for the
      originator of the Mortgage Loan of such Refinanced Mortgage Loan at the time
      of
      origination of such Refinanced Mortgage Loan by an appraiser who met the minimum
      requirements of Fannie Mae and Freddie Mac and (2) the value thereof as
      determined by a review appraisal conducted by the originator of the Mortgage
      Loan in accordance with the originator’s underwriting guidelines, and (B) in the
      case of a Mortgage Loan originated in connection with a “lease-option purchase,”
such value of the Mortgaged Property is based on the lower of the value
      determined by an appraisal made for the originator of such Mortgage Loan at
      the
      time of origination or the sale price of such Mortgaged Property if the “lease
      option purchase price” was set less than twelve (12) months prior to
      origination, and is based on the value determined by an appraisal made for
      the
      originator of such Mortgage Loan at the time of origination if the “lease option
      purchase price” was set twelve (12) months or more prior to
      origination.

     

    
      
        
        

      

      
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    “Verification
      Report”: As defined in Section 4.20. 

     

    “Voting
      Rights”: The portion of the voting rights of all of the Certificates which is
      allocated to any such 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 among the
      holders of the Class P Certificates and 1% of all Voting Rights will be
      allocated among the holders of the Class R 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. 

     

    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 Servicers pursuant to Section 3.22 of this
      Agreement or pursuant to the Servicing Agreement or by the Master Servicer
      pursuant to Section 4.19 of this Agreement) and any Relief Act Interest
      Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date
      shall be allocated first, to the Class CE Certificates, second, to the Class
      M-11 Certificates, third, to the Class M-10 Certificates, fourth, to the Class
      M-9 Certificates, fifth, to the Class M-8 Certificates, sixth, to the Class
      M-7
      Certificates, seventh, to the Class M-6 Certificates, eighth, to the Class
      M-5
      Certificates, ninth, to the Class M-4 Certificates, tenth, to the Class M-3
      Certificates, eleventh, to the Class M-2 Certificates, twelfth, to the Class
      M-1
      Certificates and thirteenth, to the Class A Certificates, on a pro
      rata
      basis,
      in each case 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 or Notional Amount, as applicable, of each such Certificate and (2)
      the
      aggregate amount of any Realized Losses allocated to the Mezzanine Certificates
      and Net WAC Rate Carryover Amounts paid to the Class A Certificates and the
      Mezzanine Certificates incurred for any Distribution Date shall be allocated
      to
      the Class CE 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
      or
      Notional Amount thereof, as applicable.

     

    
      
        
        

      

      
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    For
      purposes of calculating the amount of Uncertificated Interest for the REMIC
      I
      Group IA Regular Interests for any Distribution Date, the aggregate amount
      of
      any Prepayment Interest Shortfalls (to the extent not covered by payments by
      the
      Servicers pursuant to Section 3.22 of this Agreement, or pursuant to the
      Servicing Agreement, as applicable, or the Master Servicer pursuant to Section
      4.19 of this Agreement) and any Relief Act Interest Shortfalls incurred in
      respect of Group IA Mortgage Loans shall be allocated first, to REMIC I Regular
      Interest IA and to the REMIC I Group IA Regular Interests ending with the
      designation “B”, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      REMIC I Remittance Rates on the respective Uncertificated Principal Balances
      of
      each such REMIC I Regular Interest, and then, to REMIC I Group IA Regular
      Interests ending with the designation “A”, pro rata based on, and to the extent
      of, one month’s interest at the then applicable respective REMIC I Remittance
      Rates on the respective Uncertificated Balances of each such REMIC I Regular
      Interest.

     

    For
      purposes of calculating the amount of Uncertificated Interest for the REMIC
      I
      Group IB Regular Interests for any Distribution Date, the aggregate amount
      of
      any Prepayment Interest Shortfalls (to the extent not covered by payments by
      the
      Servicers pursuant to Section 3.22 of this Agreement, or pursuant to the
      Servicing Agreement, as applicable, or the Master Servicer pursuant to Section
      4.19 of this Agreement) and any Relief Act Interest Shortfalls incurred in
      respect of Group IB Mortgage Loans shall be allocated first, to REMIC I Regular
      Interest IB and to the REMIC I Group IB Regular Interests ending with the
      designation “B”, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      REMIC I Remittance Rates on the respective Uncertificated Principal Balances
      of
      each such REMIC I Regular Interest, and then, to REMIC I Group IB Regular
      Interests ending with the designation “A”, pro rata based on, and to the extent
      of, one month’s interest at the then applicable respective REMIC I Remittance
      Rates on the respective Uncertificated Balances of each such REMIC I Regular
      Interest.

     

    For
      purposes of calculating the amount of Uncertificated Interest for the REMIC
      I
      Group II Regular Interests for any Distribution Date, the aggregate amount
      of
      any Prepayment Interest Shortfalls (to the extent not covered by payments by
      the
      Servicers pursuant to Section 3.22 of this Agreement, or pursuant to the
      Servicing Agreement, as applicable, or the Master Servicer pursuant to Section
      4.19 of this Agreement) and any Relief Act Interest Shortfalls incurred in
      respect of Group II Mortgage Loans shall be allocated first, to REMIC I Regular
      Interest II and to the REMIC I Group II Regular Interests ending with the
      designation “B”, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      REMIC I Remittance Rates on the respective Uncertificated Principal Balances
      of
      each such REMIC I Regular Interest , and then, to REMIC I Group II Regular
      Interests ending with the designation “A”, pro rata based on, and to the extent
      of, one month’s interest at the then applicable respective REMIC I Remittance
      Rates on the respective Uncertificated Balances of each such REMIC I Regular
      Interest. 

     

    For
      purposes of calculating the amount of Uncertificated Interest for the REMIC
      II
      Regular Interests for any Distribution Date:

     

    (A) The
      REMIC
      II Marker Allocation Percentage of the aggregate amount of any Prepayment
      Interest Shortfalls (to the extent not covered by payments by the Servicers
      pursuant to Section 3.22 of this Agreement, or pursuant to the Servicing
      Agreement, as applicable, or the Master Servicer pursuant to Section 4.19 of
      this Agreement) and the REMIC II Marker Allocation Percentage of any Relief
      Act
      Interest Shortfalls incurred in respect of the Mortgage Loans for any
      Distribution Date shall be allocated among REMIC II Regular Interest AA, REMIC
      II Regular Interest A-1A, REMIC II Regular Interest A-1B, REMIC II Regular
      Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C,
      REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular
      Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4,
      REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular
      Interest M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest M-9,
      REMIC II Regular Interest M-10, REMIC II Regular Interest M-11, REMIC II Regular
      Interest ZZ and REMIC II Regular Interest P pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      REMIC II Remittance Rate on the respective Uncertificated Balance of each such
      REMIC II Regular Interest; and

     

    
      
        
        

      

      
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    (B) The
      REMIC
      II Sub WAC Allocation Percentage of the aggregate amount of any Prepayment
      Interest Shortfalls (to the extent not covered by payments by the Servicer
      pursuant to Section 3.23 of this Agreement or by the Master Servicer pursuant
      to
      Section 4.19 of this Agreement) and the REMIC II Sub WAC Allocation Percentage
      of any Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans
      for any Distribution Date shall be allocated first, to Uncertificated Interest
      payable to REMIC II Regular Interest IA-SUB, REMIC II Regular Interest IA-GRP,
      REMIC II Regular Interest IB-SUB, REMIC II Regular Interest IB-GRP, REMIC II
      Regular Interest II-SUB, REMIC II Regular Interest II-GRP and REMIC II Regular
      Interest XX, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      REMIC II Remittance Rate on the respective Uncertificated Balance of each such
      REMIC II Regular Interest.

     

    
      
        
        

      

      
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    ARTICLE
      II

     

    CONVEYANCE
      OF MORTGAGE LOANS;

    ORIGINAL
      ISSUANCE OF CERTIFICATES

     

    SECTION
      2.01. Conveyance
      of the Mortgage Loans.

     

    The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, on behalf of
      the
      Trust, without recourse, for the benefit of the Certificateholders, all the
      right, title and interest of the Depositor, including any security interest
      therein for the benefit of the Depositor, in and to the Mortgage Loans
      identified on the Mortgage Loan Schedule, the rights of the Depositor under
      the
      Mortgage Loan Purchase Agreement (including, without limitation the right to
      enforce the obligations of the other parties thereto thereunder), the right
      to
      any Net Swap Payment and any Swap Termination Payment made by the Swap Provider
      and all other assets included or to be included in REMIC I. Such assignment
      includes all interest and principal received by the Depositor and the Servicer
      and the Servicing Agreement 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). A copy of the Mortgage Loan Purchase Agreement is attached hereto
      as Exhibit F.

     

    In
      connection with such transfer and assignment, the Depositor does hereby deliver
      to, and deposit with the Custodian pursuant to the Custodial Agreement the
      documents with respect to each Mortgage Loan as described under Section 2
      of the Custodial Agreement (the “Mortgage Loan Documents”). In connection with
      such delivery and as further described in the Custodial Agreement, the Custodian
      will be required to review such Mortgage Loan Documents and deliver to the
      Trustee, the Depositor, the related Servicer and the Sponsor certifications
      (in
      the forms attached to the Custodial Agreement) with respect to such review
      with
      exceptions noted thereon. In addition, under the Custodial Agreement the
      Depositor will be required to cure certain defects with respect to the Mortgage
      Loan Documents for the related Mortgage Loans after the delivery thereof by
      the
      Depositor to the Custodian as more particularly set forth therein.

     

    Notwithstanding
      anything to the contrary contained herein, the parties hereto acknowledge that
      the functions of the Trustee with respect to the custody, acceptance, inspection
      and release of the Mortgage Files, including, but not limited to certain
      insurance policies and documents contemplated by Section 4.11 of this
      Agreement, and preparation and delivery of the certifications shall be performed
      by the Custodian pursuant to the terms and conditions of the Custodial
      Agreement.

     

    The
      Depositor shall deliver or cause the originator to deliver to the related
      Servicer copies of all trailing documents required to be included in the related
      Mortgage File at the same time the originals or certified copies thereof are
      delivered to the Trustee or Custodian, such documents including the mortgagee
      policy of title insurance and any Mortgage Loan Documents upon return from
      the
      recording office. The Servicers shall not be responsible for any custodian
      fees
      or other costs incurred in obtaining such documents and the Depositor shall
      cause the Servicers to be reimbursed for any such costs the Servicers may incur
      in connection with performing its obligations under this Agreement or under
      the
      Servicing Agreement, as applicable.

     

    
      
        
        

      

      
        107

        
          

        

      

      
        
        

      

    

     

    The
      Mortgage Loans permitted by the terms of this Agreement to be included in the
      Trust are limited to (i) Mortgage Loans (which the Depositor acquired pursuant
      to the Mortgage Loan Purchase Agreement, which contains, among other
      representations and warranties, a representation and warranty of the Sponsor
      that no Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey
      Home Ownership Act effective November 27, 2003 or as defined in the New Mexico
      Home Loan Protection Act effective January 1, 2004, as defined in the
      Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
      (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices
      Act,
      effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9))
      or a
“high risk home loan” under the Illinois High Risk Home Loan Act, effective as
      of January 1, 2004, and (ii) Qualified Substitute Mortgage Loans (which, by
      definition as set forth herein and referred to in the Mortgage Loan Purchase
      Agreement, are required to conform to, among other representations and
      warranties, the representation and warranty of the Sponsor that no Qualified
      Substitute Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey
      Home Ownership Act effective November 27, 2003 or as defined in the New Mexico
      Home Loan Protection Act effective January 1, 2004, as defined in the
      Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
      (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices
      Act,
      effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9)).
      The
      Depositor and the Trustee on behalf of the Trust understand and agree that
      it is
      not intended that any Mortgage Loan be included in the Trust that is a
“High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective
      November 27, 2003, as defined in the New Mexico Home Loan Protection Act
      effective January 1, 2004, as defined in the Massachusetts Predatory Home Loan
      Practices Act, effective November 7, 2004 (Mass. Ann. Laws Ch. 183C) or as
      defined in the Indiana Home Loan Practices Act, effective January 1, 2005 (Ind.
      Code Ann. Sections 24-9-1 through 24-9-9) or a “high risk home loan” under the
      Illinois High Risk Home Loan Act, effective as of January 1, 2004. 

     

    SECTION
      2.02. Acceptance
      of REMIC I by Trustee.

     

    The
      Trustee acknowledges receipt, subject to the provisions of Section 2.01
      hereof and Section 2 of the Custodial Agreement, of the Mortgage Loan
      Documents and all other assets included in the definition of “REMIC I” under
      clauses (i), (iii), (iv) and (v) (to the extent of amounts deposited into the
      Distribution Account) and declares that it holds (or the Custodian on its behalf
      holds) and will hold such documents and the other documents delivered to it
      constituting a Mortgage Loan Document, and that it holds (or the Custodian
      on
      its behalf 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.

     

    SECTION
      2.03. Repurchase
      or Substitution of Mortgage Loans.

     

    (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 a breach by the Sponsor of
      any
      representation, warranty or covenant under the Mortgage Loan Purchase Agreement
      in respect of any Mortgage Loan that materially and adversely affects the value
      of such Mortgage Loan or the interest therein of the Certificateholders, the
      Trustee shall promptly notify the Sponsor and the related Servicer of such
      defect, missing document or breach and request that the Sponsor deliver such
      missing document, cure such defect or breach within sixty (60) days from the
      date the Sponsor was notified of such missing document, defect or breach, and
      if
      the Sponsor 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 the Sponsor under the Mortgage Loan Purchase Agreement to
      repurchase such Mortgage Loan from REMIC I at the Purchase Price within ninety
      (90) days after the date on which the Sponsor was notified of such missing
      document, defect or breach, if and to the extent that the Sponsor is obligated
      to do so under the Mortgage Loan Purchase Agreement. The Purchase Price for
      the
      repurchased Mortgage Loan shall be remitted to the related Servicer for deposit
      in the related Collection Account, and the Trustee, upon receipt of written
      certification from the related Servicer of such deposit, shall release or cause
      the Custodian (upon receipt of a request for release in the form attached to
      the
      Custodial Agreement) to release to the Sponsor the related Mortgage File and
      the
      Trustee shall execute and deliver such instruments of transfer or assignment,
      in
      each case without recourse, representation or warranty, as the Sponsor shall
      furnish to it and as shall be necessary to vest in the Sponsor any Mortgage
      Loan
      released pursuant hereto, and 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, the Sponsor 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) of this Agreement. It is
      understood and agreed that the obligation of the Sponsor 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.

     

    
      
        
        

      

      
        108

        
          

        

      

      
        
        

      

    

     

    In
      addition, promptly upon the earlier of discovery by a Servicer or receipt of
      notice by a Servicer of the breach of the representation or covenant of the
      Sponsor set forth in Section 5(xii) of the Mortgage Loan Purchase Agreement
      which materially and adversely affects the interests of the Holders of the
      Class
      P Certificates in any Prepayment Charge, such Servicer shall promptly notify
      the
      Sponsor and the Trustee of such breach. The Trustee shall enforce the
      obligations of the Sponsor under the Mortgage Loan Purchase Agreement to remedy
      such breach to the extent and in the manner set forth in the Mortgage Loan
      Purchase Agreement.

     

    (b) Any
      substitution of Qualified Substitute Mortgage Loans for Deleted Mortgage Loans
      made pursuant to Section 2.03(a) of this Agreement must be effected prior
      to the date which is two years after the Startup Day for REMIC I.

     

    As
      to any
      Deleted Mortgage Loan for which the Sponsor substitutes a Qualified Substitute
      Mortgage Loan or Loans, such substitution shall be effected by the Sponsor
      delivering to the Trustee or the Custodian on behalf of 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 of the
      Custodial Agreement, as applicable, 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 Custodian
      on
      behalf of the Trustee shall acknowledge receipt of such Qualified Substitute
      Mortgage Loan or Loans and, within ten (10) Business Days thereafter, review
      such documents and deliver to the Depositor, the Trustee and the related
      Servicer, with respect to such Qualified Substitute Mortgage Loan or Loans,
      an
      initial certification pursuant to the Custodial Agreement, with any applicable
      exceptions noted thereon. Within one year of the date of substitution, the
      Custodian on behalf of the Trustee shall deliver to the Depositor, the Trustee
      and the related Servicer a final certification pursuant to the Custodial
      Agreement 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 the Sponsor. 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 the Sponsor 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 and the
      related Servicer. Upon such substitution, such Qualified Substitute Mortgage
      Loan or Loans shall constitute part of the Trust Fund 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 herein or in the Mortgage Loan Purchase Agreement.

     

    
      
        
        

      

      
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    For
      any
      month in which the Sponsor substitutes one or more Qualified Substitute Mortgage
      Loans for one or more Deleted Mortgage Loans, the related 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 Scheduled
      Principal Balance thereof as of the date of substitution, together with one
      month’s interest on such Scheduled Principal Balance at the applicable Net
      Mortgage Rate, plus all outstanding P&I Advances and Servicing Advances
      (including Nonrecoverable P&I Advances and Nonrecoverable Servicing
      Advances) related thereto. On the date of such substitution, the Sponsor will
      deliver or cause to be delivered to the related Servicer for deposit in the
      related Collection Account an amount equal to the Substitution Shortfall Amount,
      if any, and the Trustee or the Custodian on behalf of the Trustee, upon receipt
      of the related Qualified Substitute Mortgage Loan or Loans, upon receipt of
      a
      request for release in the form attached to the Custodial Agreement and
      certification by the related Servicer of such deposit, shall release to the
      Sponsor the related Mortgage File or Files and the Trustee shall execute and
      deliver such instruments of transfer or assignment, in each case without
      recourse, representation or warranty, as the Sponsor shall deliver to it and
      as
      shall be necessary to vest therein any Deleted Mortgage Loan released pursuant
      hereto.

     

    In
      addition, the Sponsor 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.

     

    
      
        
        

      

      
        110

        
          

        

      

      
        
        

      

    

     

    (c) Upon
      discovery by the Depositor, the Sponsor, a 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 (2) Business Days give written notice thereof to the other parties.
      In connection therewith, the Sponsor shall repurchase or substitute one or
      more
      Qualified Substitute Mortgage Loans for the affected Mortgage Loan within ninety
      (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) the Sponsor 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 the Sponsor under the Mortgage Loan Purchase Agreement or (ii) the
      Depositor, if the affected Mortgage Loan’s status as a non-qualified mortgage
      does not result from a breach of a representation or warranty. Any such
      repurchase or substitution shall be made in the same manner as set forth in
      Section 2.03(a) of this Agreement. The Trustee shall reconvey to the
      Sponsor 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.

     

    (d) With
      respect to a breach of the representations made pursuant to Section 5(xii)
      of the Mortgage Loan Purchase Agreement that materially and adversely affects
      the value of such Mortgage Loan or the interest therein of the
      Certificateholders, the Sponsor shall be required to take the actions set forth
      in this Section 2.03 of this Agreement.

     

    (e) Within
      ninety (90) days of the earlier of discovery by Countrywide or receipt of notice
      by Countrywide of the breach of any representation, warranty or covenant of
      Countrywide set forth in Section 2.05 of this Agreement which materially
      and adversely affects the interests of the Certificateholders in any Mortgage
      Loan or Prepayment Charge with respect to a Mortgage Loan, Countrywide shall
      cure such breach in all material respects.

     

    SECTION
      2.04. Representations
      and Warranties of the Master Servicer.

     

    The
      Master Servicer hereby represents, warrants and covenants to Countrywide, the
      Depositor and the Trustee, for the benefit of each of the Trustee and the
      Certificateholders, that as of the Closing Date or as of such date specifically
      provided herein:

     

    (i) The
      Master Servicer is a national banking association duly formed, validly existing
      and in good standing under the laws of the United States of America and is
      duly
      authorized and qualified to transact any and all business contemplated by this
      Agreement to be conducted by the Master Servicer;

     

    (ii) The
      Master Servicer has the full power and authority to conduct its business as
      presently conducted by it and to execute, deliver and perform, and to enter
      into
      and consummate, all transactions contemplated by this Agreement. The Master
      Servicer has duly authorized the execution, delivery and performance of this
      Agreement, has duly executed and delivered this Agreement, and this Agreement,
      assuming due authorization, execution and delivery by the other parties hereto,
      constitutes a legal, valid and binding obligation of the Master Servicer,
      enforceable against it in accordance with its terms except as the enforceability
      thereof may be limited by bankruptcy, insolvency, reorganization or similar
      laws
      affecting the enforcement of creditors’ rights generally and by general
      principles of equity;

     

    
      
        
        

      

      
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    (iii) The
      execution and delivery of this Agreement by the Master Servicer, the
      consummation by the Master 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 Master Servicer and will not (A) result
      in a breach of any term or provision of the charter and by-laws of the Master
      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 Master Servicer is a party or by which it may be bound,
      or any statute, order or regulation applicable to the Master Servicer of any
      court, regulatory body, administrative agency or governmental body having
      jurisdiction over the Master Servicer; and the Master Servicer is not 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 Master
      Servicer’s knowledge, would in the future materially and adversely affect, (x)
      the ability of the Master Servicer to perform its obligations under this
      Agreement or (y) the business, operations, financial condition, properties
      or
      assets of the Master Servicer taken as a whole;

     

    (iv) The
      Master Servicer does not believe, nor does it have any reason or cause to
      believe, that it cannot perform each and every covenant made by it and contained
      in this Agreement;

     

    (v) No
      litigation is pending against the Master Servicer that would materially and
      adversely affect the execution, delivery or enforceability of this Agreement
      or
      the ability of the Master Servicer to perform any of its other obligations
      hereunder in accordance with the terms hereof;

     

    (vi) There
      are
      no actions or proceedings against, or investigations known to it of, the Master
      Servicer before any court, administrative or other tribunal (A) that might
      prohibit its entering into this Agreement, (B) seeking to prevent the
      consummation of the transactions contemplated by this Agreement or (C) that
      might prohibit or materially and adversely affect the performance by the Master
      Servicer of its obligations under, or validity or enforceability of, 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 by it 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;

     

    
      
        
        

      

      
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    (viii) There
      are
      no affiliations, relationships or transactions relating to the Master Servicer
      of a type that are described under Item 1119 of Regulation AB with DBNTC, the
      Depositor, the Sponsor, the Servicer, the Credit Risk Manager, the Swap
      Provider, the Trustee or New Century Mortgage Corporation.

     

    It
      is
      understood and agreed that the representations, warranties and covenants set
      forth in this Section 2.04 shall survive the resignation or termination of
      the parties hereto and the termination of this Agreement and shall inure to
      the
      benefit of the Trustee, the Depositor and the Certificateholders.

     

    SECTION
      2.05. Representations,
      Warranties and Covenants of the Servicer.

     

    Countrywide,
      referred to in this Section 2.05 as (the “Servicer”) hereby represents,
      warrants and covenants to the Master Servicer, the Securities Administrator,
      the
      Depositor and the Trustee, for the benefit of each of such Persons and the
      Certificateholders that as of the Closing Date or as of such date specifically
      provided herein:

     

    (i) The
      Servicer is a limited partnership duly organized and validly existing under
      the
      laws of the jurisdiction of its formation, 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 related to 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 the Mortgage Loans in accordance with the terms
      of
      this Agreement;

     

    (ii) The
      Servicer has the full power and authority to conduct its business as presently
      conducted by it and to execute, deliver and perform, and to enter into and
      consummate, all transactions contemplated by this Agreement. The Servicer has
      duly authorized the execution, delivery and performance of this Agreement,
      has
      duly executed and delivered this Agreement, and this Agreement, assuming due
      authorization, execution and delivery by the other parties hereto, constitutes
      a
      legal, valid and binding obligation of the Servicer, enforceable against it
      in
      accordance with its terms, except as the enforceability thereof may be limited
      by bankruptcy, insolvency, reorganization or similar laws affecting the
      enforcement of creditors’ rights generally and by general principles of
      equity;

     

    (iii) 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
      formation 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,
      (y)
      the business, operations, financial condition, properties or assets of the
      Servicer taken as a whole or (z) the legality, validity or enforceability of
      this Agreement;

     

    
      
        
        

      

      
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    (iv) The
      Servicer does not believe, nor does it have any reason or cause to believe,
      that
      it cannot perform each and every covenant made by it and contained in this
      Agreement;

     

    (v) No
      litigation is pending against the Servicer that would materially and adversely
      affect the execution, delivery or enforceability of this Agreement or the
      ability of the Servicer to service the Mortgage Loans or to perform any of
      its
      other obligations hereunder in accordance with the terms hereof;

     

    (vi) There
      are
      no actions or proceedings against, or investigations known to it of, the
      Servicer before any court, administrative or other tribunal (A) that might
      prohibit its entering into this Agreement, (B) seeking to prevent the
      consummation of the transactions contemplated by this Agreement or (C) that
      might prohibit or materially and adversely affect the performance by the
      Servicer of its obligations under, or the validity or enforceability of, 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 Servicer
      of,
      or compliance by the Servicer with, this Agreement or the consummation by it
      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;

     

    (viii) The
      Servicer has fully furnished and will continue 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 its borrower
      credit files to Equifax, Experian and Trans Union Credit Information Company
      or
      their successors on a monthly basis; 

     

    (ix) The
      Servicer is a member of MERS in good standing, and will comply in all material
      respects with the rules and procedures of MERS in connection with the servicing
      of the Mortgage Loans that are registered with MERS; and

     

    (x) The
      Servicer will not waive any Prepayment Charge other than in accordance with
      the
      standard set forth in Section 3.01.

     

    Notwithstanding
      anything to the contrary contained in this Agreement, if the covenant of the
      Servicer set forth in Section 2.05(x) above is breached, the Servicer will
      pay
      the amount of such waived Prepayment Charge, from its own funds without any
      right of reimbursement, for the benefit of the Holders of the Class P
      Certificates, by depositing such amount into the Collection Account within
      90
      days of the earlier of discovery by the Servicer or receipt of notice by the
      Servicer of such breach; provided, however, the Servicer shall not have any
      obligation to pay the amount of any uncollected Prepayment Charge under this
      Section 2.05 if the Servicer did not have a copy of the related Mortgage Note,
      the Servicer requested a copy of the same from the Custodian in accordance
      with
      the terms of the Custodial Agreement and the Custodian failed to provide such
      a
      copy within the time frame set forth in the Custodial Agreement. Furthermore,
      notwithstanding any other provisions of this Agreement, any payments made by
      the
      Servicer in respect of any waived Prepayment Charges pursuant to this paragraph
      shall be deemed to be paid outside of the Trust Fund.

     

    
      
        
        

      

      
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    It
      is
      understood and agreed that the representations, warranties and covenants set
      forth in this Section 2.05 shall survive the resignation or termination of
      the
      parties hereto, the termination of this Agreement and the delivery of the
      Mortgage Files to the Custodian and shall inure to the benefit of the Trustee,
      the Master Servicer, the Securities Administrator, the Depositor, the
      Certificateholders. Upon discovery by any such Person or the Servicer of a
      breach of any of the foregoing representations, warranties and covenants which
      materially and adversely affects the value of any Mortgage Loan, Prepayment
      Charge or the interests therein of the Certificateholders, the party discovering
      such breach shall give prompt written notice (but in no event later than two
      (2)
      Business Days following such discovery) to the Trustee. Subject to Section
      8.01,
      unless such breach shall not be susceptible of cure within ninety (90) days,
      the
      obligation of the Servicer set forth in Section 2.03(e) to cure breaches shall
      constitute the sole remedy against the Servicer available to the
      Certificateholders, the Depositor or the Trustee on behalf of the
      Certificateholders respecting a breach of the representations, warranties and
      covenants contained in this Section 2.05.

     

    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 the Custodian on its behalf of the Mortgage Loan Documents, subject to the
      provisions of Section 2.01 and Section 2.02 hereof and Section 2
      of the Custodial Agreement, together with the assignment to it of all other
      assets included in REMIC I, the receipt of which is hereby acknowledged. 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 Holders of the Class R-I Interest and REMIC I (as holder of the
      REMIC I Regular Interests) to receive distributions from the proceeds of REMIC
      I
      in respect of the Class R-I Interest and the REMIC I Regular Interests,
      respectively, 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 and REMIC III 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 Holder 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 the 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. The Class R-II Interest and the REMIC II Regular Interests shall
      constitute the entire beneficial ownership interest in REMIC II. The Trustee
      acknowledges receipt of the REMIC II 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-III Interest and REMIC III (as holder
      of the REMIC II Regular Interests). The rights of the Holder of the Class R-III
      Interest and REMIC III (as holder of the REMIC II Regular Interests) to receive
      distributions from the proceeds of REMIC III in respect of the Class R-III
      Interest, the Class IO Interest and the Regular Certificates, respectively,
      and
      all ownership interests evidenced or constituted by the Class R-III Interest,
      the Class IO Interest and the Regular Certificates, shall be as set forth in
      this Agreement. The Class R-III Interest, the Class IO Interest and the Regular
      Certificates shall constitute the entire beneficial ownership interest in REMIC
      III.

     

    
      
        
        

      

      
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    SECTION
      2.08. Issuance
      of the Residual Certificates.

     

    The
      Trustee acknowledges the assignment to it of the REMIC I 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 Securities
      Administrator has executed and authenticated and the Trustee has delivered
      to or
      upon the order of the Depositor, the Class R Certificates in authorized
      denominations. The Class R Certificates evidence ownership in the Class R-I
      Interest, the Class R-II Interest and the Class R-III Interest.

     

    SECTION
      2.09. Establishment
      of the Trust.

     

    The
      Depositor does hereby establish, pursuant to the further provisions of this
      Agreement and the laws of the State of New York, an express trust to be known,
      for convenience, as “ACE Securities Corp. Home Equity Loan Trust, Series
      2006-NC3” and does hereby appoint HSBC Bank USA, National Association as Trustee
      in accordance with the provisions of this Agreement.

     

    SECTION
      2.10. Purpose
      and Powers of the Trust.

     

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

     

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

     

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

     

    
      
        
        

      

      
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    (c) to
      make
      payments on the Certificates;

     

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

     

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

     

    The
      trust
      is hereby authorized to engage in the foregoing activities. The Trustee shall
      not cause the trust to engage in any activity other than in connection with
      the
      foregoing or other than as required or authorized by the terms of this Agreement
      (or those ancillary thereto) while any Certificate is outstanding, and this
      Section 2.10 may not be amended, without the consent of the Certificateholders
      evidencing 51% or more of the aggregate voting rights of the
      Certificates.

     

    SECTION
      2.11. Representations
      and Warranties of the Trustee.

     

    The
      Trustee hereby represents and warrants to the Sponsor and the Depositor, for
      the
      benefit of each of the Certificateholders, that as of the Closing
      Date:

     

    (a) There
      are
      no affiliations relating to the Trustee of a type that are described under
      Item
      1119(a) of Regulation AB; and

     

    (b) There
      are
      no legal proceedings pending or contemplated, including legal proceedings
      pending or contemplated by governmental authorities, against the Trustee that
      could be material to the Certificateholders.

     

    
      
        
        

      

      
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    ARTICLE
      III

     

    ADMINISTRATION
      AND SERVICING

    OF
      THE
      MORTGAGE LOANS; ACCOUNTS

     

    SECTION
      3.01. The
      Servicer to Act as Servicer.

     

    The
      obligations of Countrywide hereunder to service and administer the Mortgage
      Loans shall be limited to the Countrywide Mortgage Loans, and with respect
      to
      the duties and obligations of Countrywide, references in this Article III to
      the
      Mortgage Loans or related Mortgage Loans shall be limited to the Countrywide
      Mortgage Loans (and the related proceeds thereof and related REO Properties).
      In
      addition, references in this Article III to the Servicer shall be deemed to
      refer to Countrywide unless the context indicates otherwise, and references
      to
      the Collection Account or related Collection Account shall be deemed to refer
      to
      the Collection Account established hereunder by Countrywide. From and after
      the
      Closing Date to the Servicing Transfer Date, the New Century Mortgage Loans
      will
      be serviced and administered by New Century pursuant to the terms and provisions
      of the Servicing Agreement, and Countrywide shall not have any responsibility
      to
      service or administer the New Century Mortgage Loans during that period.

     

    On
      and
      after the Closing Date with respect to the Countrywide Mortgage Loans and from
      and after the Servicing Transfer Date with respect to the New Century Mortgage
      Loans, 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 the terms of this Agreement and the respective Mortgage Loans
      and all applicable law and regulations 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, giving due consideration to customary and usual
      standards of practice of prudent mortgage lenders and loan servicers
      administering similar mortgage loans but without regard to:

     

    (i) any
      relationship that the Servicer or any of its Affiliates may have with the
      related Mortgagor;

     

    (ii) the
      ownership of any Certificate by the Servicer or any of its
      Affiliates;

     

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

     

    (iv) the
      Servicer’s right to receive compensation for its services
      hereunder.

    

     

    provided,
      however, that with respect to the New Century Mortgage Loans serviced pursuant
      to the Servicing Agreement, Countrywide will be entitled to seek indemnification
      in accordance with Section 7.03 hereof for any liability attributable to
      it as a result of the acts and omissions of New Century or any other
      prior servicer or the failure of New Century or any other prior servicer to
      service the New Century Mortgage Loans in accordance with the Servicing
      Agreement.

     

    
      
        
        

      

      
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    To
      the
      extent consistent with the foregoing, the Servicer shall also seek to maximize
      the timely and complete recovery of principal and interest on the related
      Mortgage Notes and 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 and such waiver is related to
      a
      default or 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 and, if such
      waiver is made in connection with a refinancing of the related Mortgage Loan,
      such refinancing is related to a default or a reasonably foreseeable default,
      (ii) such Prepayment Charge is unenforceable in accordance with applicable
      law
      or the collection of such related Prepayment Charge would otherwise violate
      applicable law or (iii) the collection of such Prepayment Charge would be
      considered “predatory” pursuant to written guidance published or issued by any
      applicable federal, state or local regulatory authority acting in its official
      capacity and having jurisdiction over such matters. Notwithstanding any
      provision in this Agreement to the contrary, in the event the Prepayment Charge
      payable under the terms of the Mortgage Note is less than the amount of the
      Prepayment Charge set forth in the Prepayment Charge Schedule or other
      information provided to the Servicer, the Servicer and the Master Servicer
      shall
      not have any liability or obligation with respect to such difference (including
      any obligation to recalculate any Prepayment Charges), and in addition shall
      not
      have any liability or 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 Prepayment Charge Schedule.

     

    Subject
      only to the above-described servicing standards (the “Accepted Servicing
      Practices”) and the terms of this Agreement and of the related Mortgage Loans,
      the Servicer shall have full power and authority, 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 with the goal of maximizing proceeds of the Mortgage
      Loan. Without limiting the generality of the foregoing, the Servicer in its
      own
      name is hereby authorized and empowered by the Trustee when the Servicer
      believes it appropriate in its best judgment, 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 or subordination,
      and
      all other comparable instruments, with respect to the related Mortgage Loans
      and
      the related 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, for the benefit of the Trust Fund and the Certificateholders.
      The Servicer shall service and administer the related 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 3.14, the Trustee shall execute, at the written request
      of
      the Servicer, and furnish to the Servicer a power of attorney in the form of
      Exhibit D hereto and other documents necessary or appropriate to enable the
      Servicer to carry out its servicing and administrative duties hereunder, and
      furnished to the Trustee by the Servicer, and the Trustee shall not be liable
      for the actions of the Servicer under such powers of attorney and shall be
      indemnified by the Servicer for any cost, liability or expense incurred by
      the
      Trustee in connection with the Servicer’s use or misuse of any such power of
      attorney.

     

    
      
        
        

      

      
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    The
      Servicer is hereby authorized and empowered in its own name or in the name
      of a
      Sub-Servicer, when the Servicer or such 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 incurred in connection with
      the
      actions described in the preceding sentence or as a result of MERS discontinuing
      or becoming unable to continue operations in connection with the MERS® System,
      shall be reimbursable by the Trust Fund to the Servicer.

     

    In
      accordance with Accepted Servicing Practices, the Servicer shall make or cause
      to be made Servicing Advances as necessary for the purpose of effecting the
      payment of taxes and assessments on the Mortgaged Properties, which Servicing
      Advances shall be reimbursable in the first instance from related collections
      from the related Mortgagors pursuant to Section 3.07 of this Agreement, and
      further as provided in Section 3.09 of this Agreement; provided, however, the
      Servicer shall only make such Servicing Advance if the related Mortgagor has
      not
      made such payment and if the failure to make such Servicing Advance would result
      in the loss of the related Mortgaged Property due to a tax sale or foreclosure
      as result of a tax lien; provided, however, that the Servicer shall be required
      to make such Servicing Advances only to the extent that such Servicing Advances,
      in the good faith judgment of the Servicer, will be recoverable by the Servicer
      out of Insurance Proceeds, Liquidation Proceeds, or otherwise out of the
      proceeds of the related Mortgage Loan. Any cost incurred by the Servicer in
      effecting the payment of taxes and assessments on a Mortgaged Property shall
      not, for the purpose of calculating the Stated Principal Balance of such
      Mortgage Loan or 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 parties to this Agreement acknowledge
      that
      Servicing Advances shall be reimbursable pursuant to Section 3.09 of this
      Agreement, and agree that no Servicing Advance shall be rejected or disallowed
      by any party unless it has been shown that such Servicing Advance was not made
      in accordance with
      the
      terms of this Agreement. 

     

    Notwithstanding
      the foregoing, the parties understand and agree that, with respect to any
      Mortgage Loan (1) the Master Servicer shall not approve the reimbursement of
      any
      Servicing Advance made with respect to such Mortgage Loan prior to the Cut-off
      Date (each, a “Pre-Cut-off Date Advance”) unless and until it has received a
      Servicing Advance Schedule listing the amount of Pre-Cut-off Date Advances
      made
      in respect of such Mortgage Loan from (a) the Servicer with respect to any
      Mortgage Loans that were transferred to the Servicer prior to the Cut-off Date
      and/or (b) the Depositor with respect to any Mortgage Loans that were
      transferred to the Servicer after the Cut-off Date, (2) the aggregate
      Pre-Cut-off Date Advances reimbursable hereunder with respect to such Mortgage
      Loan shall not exceed the amount of Pre-Cut-off Date Advances for such Mortgage
      Loan shown on the Servicing Advance Schedule delivered to the Master Servicer,
      (3) the Depositor shall be deemed to have agreed with and approved the
      Pre-Cut-off Date Advances shown on any Servicing Advance Schedule furnished
      to
      the Master Servicer, and (4) the Master Servicer will have no liability to
      the
      Depositor, the Servicer or any other Person, including any Certificateholder,
      for approving reimbursement of related Pre-Cut-off Date Advances so long as
      the
      aggregate amount of such advances reimbursed hereunder does not exceed of the
      amount of Pre-Cut-off Date Advances for such Mortgage Loan shown on the
      Servicing Advance Schedule.

     

    
      
        
        

      

      
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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 and shall not permit any modification
      with respect to any related 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 related
      Mortgage Loan (unless, as provided in Section 3.06 of this Agreement, the
      related Mortgagor is in default with respect to the related Mortgage Loan or
      such default is, in the judgment of the Servicer, reasonably foreseeable) or
      any
      modification, waiver or amendment of any term of any related 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 Trust REMIC created
      hereunder 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.

     

    In
      the
      event that the Mortgage Loan Documents relating to a Mortgage Loan contain
      provisions requiring the related Mortgagor to arbitrate disputes (at the option
      of the Trustee, on behalf of the Trust), the Trustee hereby authorizes the
      Servicer to waive the Trustee’s right or option to arbitrate disputes and to
      send written notice of such waiver to the Mortgagor, although the Mortgagor
      may
      still require arbitration at its option.

     

    The
      Servicer will fully furnish, in accordance with the Fair Credit Reporting Act
      and its implementing regulations, accurate and complete information (e.g.,
      favorable and unfavorable) on its borrower credit files to Equifax, Experian
      and
      Trans Union Credit Information Company or their successors on a monthly
      basis.

     

    SECTION
      3.02. Sub-Servicing
      Agreements Between the Servicer and Sub-Servicers.

     

    (a) The
      Servicer may arrange for the subservicing of any Mortgage Loan by a Sub-
      Servicer pursuant to a Sub-Servicing Agreement; provided that such sub-servicing
      arrangement and the terms of the related Sub-Servicing Agreement must provide
      for the servicing of such Mortgage Loans in a manner consistent with the
      servicing arrangements contemplated hereunder. If required by Regulation AB,
      the
      Servicer shall cause any Sub-Servicer used by the Servicer (or by any
      Sub-Servicer) for the benefit of the Master Servicer and the Depositor to comply
      with the provisions of this Section and with Sections 3.17, 3.18, 3.19(g) and
      3.27 of this Agreement (provided, however, that the Servicer acknowledges that
      it shall cause any Sub-Servicer to comply with Section 3.19(a) although it
      is
      not required by Regulation AB to comply with Section 3.19(a)), and to provide
      the information required with respect to such Sub-Servicer under Section 3.19(f)
      of this Agreement. The Servicer shall be responsible for obtaining from each
      Sub-Servicer and delivering to the Master Servicer any annual statement of
      compliance, assessment of compliance, attestation report and Sarbanes-Oxley
      related certification as and when required to be delivered. 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. Notwithstanding the provisions of any
      Sub-Servicing Agreement, any of the provisions of this Agreement relating to
      agreements or arrangements between the Servicer or a Sub-Servicer or reference
      to actions taken through the Servicer or otherwise, the Servicer shall remain
      obligated and liable to the Depositor, the Trustee and the Certificateholders
      for the servicing and administration of the Mortgage Loans in accordance with
      the provisions of this Agreement without diminution of such obligation or
      liability by virtue of 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. Every Sub-Servicing 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.
      All
      actions of each Sub-Servicer performed pursuant to the related Sub-Servicing
      Agreement shall be performed as an agent of the Servicer with the same force
      and
      effect as if performed directly by the Servicer.

     

    
      
        
        

      

      
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    (b) If
      required by Regulation AB, the Servicer shall promptly, upon request, provide
      to
      the Master Servicer, the Trustee and the Depositor a written description 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 Servicing Function Participants, 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 subsection; provided, however, that the Servicer shall not be required
      to
      provide the information in clauses (i) or (ii) of this subsection until such
      time that the applicable assessment of compliance is due pursuant to Section
      3.18 of this Agreement. The use by the Servicer of any such Subcontractor shall
      not release the Servicer from any of its obligations hereunder and the Servicer
      shall remain responsible hereunder for all acts and omissions of such
      Subcontractor as fully as if such acts and omissions were those of the Servicer,
      and the Servicer shall pay all fees and expenses of the Subcontractor from
      the
      Servicer’s own funds.

     

    (c) The
      Servicer shall cause any Servicing Function Participant for the benefit of
      the
      Master Servicer, the Trustee and the Depositor to comply with the provisions
      of
      Sections 3.18 and 3.19 of this Agreement. The Servicer shall be responsible
      for
      obtaining from each such Servicing Function Participant and delivering to the
      Master Servicer, the Trustee and the Depositor any assessment of compliance,
      attestation report and Sarbanes-Oxley related certification required to be
      delivered by such Subcontractor under Sections 3.18 and 3.19, in each case
      as
      and when required to be delivered.

     

    (d) For
      purposes of this Agreement, the related Servicer shall be deemed to have
      received any collections, recoveries or payments with respect to the Mortgage
      Loans that are received by a Sub-Servicer regardless of whether such payments
      are remitted by the Sub-Servicer to the Servicer. 

     

    
      
        
        

      

      
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    SECTION
      3.03. Successor
      Sub-Servicers.

     

    Any
      Sub-Servicing Agreement shall provide that the Servicer shall be entitled to
      terminate any Sub-Servicing Agreement and to either itself directly service
      the
      related Mortgage Loans or 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
      as
      soon as is reasonably possible by any successor to the Servicer without fee
      or,
      in the event a termination fee exists, such fee shall be payable by the Servicer
      from its own funds without reimbursement therefor, in accordance with the terms
      of this Agreement, in the event that the Servicer (or any successor to the
      Servicer) shall, for any reason, no longer be the Servicer of the related
      Mortgage Loans (including termination due to the Servicer Event of Default).
      The
      Servicer shall be entitled to enter into an agreement with its Sub-Servicer
      and
      Subcontractor for indemnification of the Servicer or Subcontractor, as
      applicable by such Sub-Servicer and nothing contained in this Agreement shall
      be
      deemed to limit or modify such indemnification.

     

    SECTION
      3.04. No
      Contractual Relationship Between Sub-Servicer, Subcontractor, Master Servicer,
      Trustee or the Certificateholders.

     

    Any
      Sub-Servicing Agreement and any other transactions or services relating to
      the
      Mortgage Loans involving a Sub-Servicer or a Subcontractor, as applicable shall
      be deemed to be between the Sub-Servicer and the Servicer or Subcontractor,
      as
      applicable, alone and the Master Servicer, the Trustee and the
      Certificateholders shall not be deemed parties thereto and shall have no claims,
      rights, obligations, duties or liabilities with respect to any Sub-Servicer
      or
      Subcontractor except as set forth in Section 3.05 of this
      Agreement.

     

    SECTION
      3.05. Assumption
      or Termination of Sub-Servicing Agreement by Successor Servicer.

     

    In
      connection with the assumption of the responsibilities, duties and liabilities
      and of the authority, power and rights of the Servicer hereunder by a successor
      servicer pursuant to Section 8.02, it is understood and agreed that the
      Servicer’s rights and obligations under any Sub-Servicing Agreement then in
      force between the Servicer and a Sub-Servicer shall be assumed simultaneously
      by
      such successor servicer without act or deed on the part of such successor
      servicer; provided, however, that any successor servicer may terminate the
      Sub-Servicer.

     

    The
      Servicer shall, upon the reasonable request of the Master Servicer, but at
      its
      own expense, deliver to the assuming party documents and records relating to
      each Sub-Servicing Agreement and an accounting of amounts collected and held
      by
      it and otherwise use its best efforts to effect the orderly and efficient
      transfer of the Sub-Servicing Agreements to the assuming party.

     

    The
      Servicing Fee payable to any such successor servicer shall be payable from
      payments received on the related Mortgage Loans in the amount and in the manner
      set forth in this Agreement.

     

    
      
        
        

      

      
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    SECTION
      3.06. 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 related Mortgage Loans, and shall, to the extent
      such procedures shall be consistent with this Agreement and Accepted Servicing
      Practices, 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, penalty interest or (ii) extend the
      due
      dates for the Monthly Payments due on a Mortgage Note related to a Mortgage
      Loan
      for a period of not greater than 180 days; provided that any extension pursuant
      to this clause shall not affect the amortization schedule of any Mortgage Loan
      for purposes of any computation hereunder. 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 Accepted
      Servicing Practices may waive, modify or vary any term of such Mortgage Loan
      (including, but not limited to, modifications that change the Mortgage Rate,
      forgive the payment of principal or interest 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, or consent to the postponement of strict compliance with any such term
      or
      otherwise grant indulgence to any Mortgagor if in the Servicer’s determination
      such waiver, modification, postponement or indulgence is not materially adverse
      to the interests of the Certificateholders (taking into account any estimated
      Realized Loss that might result absent such action). The Servicer shall not
      be
      required to institute or join in litigation with respect to collection of any
      payment (whether under a Mortgage, Mortgage Note or otherwise or against any
      public or governmental authority with respect to a taking or condemnation)
      if it
      reasonably believes that enforcing the provision of the Mortgage or other
      instrument pursuant to which such payment is required is prohibited by
      applicable law.

     

    SECTION
      3.07. Collection
      of Taxes, Assessments and Similar Items; Servicing Accounts.

     

    To
      the
      extent the terms of a Mortgage provide for Escrow Payments, the Servicer shall
      establish and maintain 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, fire, flood, and 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 (1) Business Day after the Servicer’s receipt thereof, all Escrow
      Payments collected on account of the related Mortgage Loans and shall thereafter
      deposit such Escrow Payments in the Servicing Accounts, in no event later than
      the second Business Day after the deposit of good funds into the clearing
      account, and retain therein, all Escrow Payments collected on account of the
      related 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 by the Servicer only to (i) effect timely
      payment of taxes, assessments, fire, flood, and hazard insurance premiums,
      and
      comparable items; (ii) reimburse itself out of related collections for any
      Servicing Advances made pursuant to Section 3.01 (with respect to taxes and
      assessments) and Section 3.11 (with respect to fire, flood and hazard
      insurance); (iii) refund to Mortgagors any sums as may be determined to be
      overages; (iv) for application to restore or repair the related Mortgaged
      Property in accordance with Section 3.11; (v) pay interest, if required and
      as
      described below, to Mortgagors on balances in the Servicing Account; or, only
      to
      the extent not required to be paid to the related Mortgagors, to pay itself
      interest on balances in the Servicing Account; or (vi) clear and terminate
      the
      Servicing Account at the termination of the Servicer’s obligations and
      responsibilities in respect of the related Mortgage Loans under this Agreement
      in accordance with Article X. As part of its servicing duties, the Servicer
      shall pay to the Mortgagors interest on funds in 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 own funds,
      without any reimbursement therefor. Notwithstanding the foregoing, the Servicer
      shall not be obligated to collect Escrow Payments if the related Mortgage Loan
      does not require such payments but the Servicer shall nevertheless be obligated
      to make Servicing Advances as provided in Section 3.01 and Section 3.11. In
      the
      event the Servicer shall deposit in the Servicing Accounts any amount not
      required to be deposited therein, it may at any time withdraw such amount from
      the Servicing Accounts, any provision to the contrary
      notwithstanding.

     

    
      
        
        

      

      
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    To
      the
      extent that a Mortgage does not provide for Escrow Payments, the Servicer (i)
      shall determine whether any such payments are made by the Mortgagor in a manner
      and at a time that is necessary to avoid the loss of the Mortgaged Property
      due
      to a tax sale or the foreclosure as a result of a tax lien and (ii) shall ensure
      that all insurance required to be maintained on the Mortgaged Property pursuant
      to this Agreement is maintained. If any such payment has not been made and
      the
      Servicer receives notice of a tax lien with respect to the Mortgage Loan being
      imposed, the Servicer shall, promptly and to the extent required to avoid loss
      of the Mortgaged Property, advance or cause to be advanced funds necessary
      to
      discharge such lien on the Mortgaged Property unless the Servicer determines
      the
      advance to be nonrecoverable. The Servicer assumes full responsibility for
      the
      payment of all such bills 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 Servicing Advances to effect
      such payments subject to its determination of recoverability.

     

    SECTION
      3.08. Collection
      Account and Distribution Account.

     

    (a) On
      behalf
      of the Trust Fund, the Servicer shall establish and maintain one or more
“Collection Accounts”, 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
      Collection Account, in no event later than two Business Days after the deposit
      of good funds into the clearing account, as and when received or as otherwise
      required hereunder, the following payments and collections received or made
      by
      it on or subsequent to the Cut-off Date other than amounts attributable to
      a Due
      Date on or prior to the Cut-off Date:

     

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

     

    
      
        
        

      

      
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    (ii) all
      payments on account of interest (net of the related Servicing Fee and any
      Prepayment Interest Excess) on each related Mortgage Loan;

     

    (iii) all
      Insurance Proceeds and Liquidation Proceeds (other than proceeds collected
      in
      respect of any particular REO Property) and all Subsequent Recoveries with
      respect to the related Mortgage Loans;

     

    (iv) any
      amounts required to be deposited by the Servicer pursuant to Section 3.10
      of this Agreement 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 3.11(a) of this Agreement in respect of any blanket
      policy deductibles;

     

    (vi) any
      Purchase Price or Substitution Shortfall Amount delivered to the Servicer and
      all proceeds (net of amounts payable or reimbursable to the Servicer, the Master
      Servicer, the Trustee, the Custodian or the Securities Administrator) of
      Mortgage Loans purchased in accordance with Section 2.03, Section 3.13
      or Section 10.01 of this Agreement; and

     

    (vii) any
      Prepayment Charges collected by the Servicer in connection with the Principal
      Prepayment of any of the Mortgage Loans or amounts required to be deposited
      by
      the Servicer in connection with a breach of its obligations under Section
      2.05.

     

    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, Ancillary Income need not be deposited by the Servicer in the
      Collection Account and may be retained by the Servicer as additional servicing
      compensation. 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) On
      behalf
      of the Trust Fund, the Securities Administrator shall establish and maintain
      one
      or more accounts (such account or accounts, the “Distribution 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 Securities
      Administrator in immediately available funds for deposit in the Distribution
      Account 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 Distribution
      Account) for the related Distribution Date then on deposit in the Collection
      Account and the amount of all Prepayment Charges collected by the Servicer
      in
      connection with the Principal Prepayment of any of the Mortgage Loans then
      on
      deposit in the Collection Account and the amount of any funds reimbursable
      to an
      Advance Financing Person pursuant to Section 3.25 of this Agreement. If the
      balance on deposit in the Collection Account exceeds $100,000 as of the
      commencement of business on any Business Day and the Collection Account
      constitutes an Eligible Account solely pursuant to clause (ii) of the definition
      of “Eligible Account,” the Servicer shall, on or before 5:00 p.m. New York time
      on such Business Day, withdraw from the Collection Account any and all amounts
      payable or reimbursable to the Depositor, the Servicer, the Trustee, the Master
      Servicer, the Securities Administrator or the Sponsor pursuant to Section 3.09
      of this Agreement and shall pay such amounts to the Persons entitled thereto
      or
      shall establish a separate Collection Account (which shall also be an Eligible
      Account) and withdraw from the existing Collection Account the amount on deposit
      therein in excess of $100,000 and deposit such excess in the newly created
      Collection Account.

     

    
      
        
        

      

      
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    With
      respect to any remittance received by the Securities Administrator on or after
      the first Business Day following the Business Day on which such payment was
      due,
      the Securities Administrator shall send written notice thereof to the Servicer.
      The Servicer shall pay to the Securities Administrator interest on any such
      late
      payment by the Servicer at an annual rate equal to Prime Rate (as defined in
      The
      Wall Street Journal)
      plus
      one percentage point, but in no event greater than the maximum amount permitted
      by applicable law. Such interest shall be paid by the Servicer to the Securities
      Administrator on the date such late payment is made and shall cover the period
      commencing with the day following the Servicer Remittance Date and ending with
      the Business Day on which such payment is made, both inclusive. The payment
      by
      the Servicer of any such interest, or the failure of the Securities
      Administrator to notify the Servicer of such interest, shall not be deemed
      an
      extension of time for payment or a waiver of any Event of Default by the
      Servicer.

     

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

     

    (d) Funds
      held in the Collection Accounts at any time may be delivered by Countrywide
      or
      New Century in immediately available funds to the Securities Administrator
      for
      deposit in the Distribution Account. In the event Countrywide or New Century
      shall deliver to the Securities Administrator for deposit in the Distribution
      Account any amount not required to be deposited therein, it may at any time
      request that the Securities Administrator withdraw such amount from the
      Distribution Account and remit to it any such amount, any provision herein
      to
      the contrary notwithstanding. In no event shall the Securities Administrator
      incur liability as a result of withdrawals from the Distribution Account at
      the
      direction of such Servicer in accordance with the immediately preceding
      sentence. In addition, Countrywide shall deliver to the Securities Administrator
      no later than the Servicer Remittance Date the amounts set forth in clauses
      (i)
      through (iv) below:

     

    (i) any
      P&I Advances, as required pursuant to Section 5.03 of this
      Agreement;

     

    (ii) any
      amounts required to be deposited pursuant to Section 3.21(d) or 3.21(f) of
      this
      Agreement in connection with any related REO Property;

     

    
      
        
        

      

      
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    (iii) any
      amounts to be paid in connection with a purchase of Mortgage Loans and REO
      Properties pursuant to Section 10.01 of this Agreement; and

     

    (iv) any
      amounts required to be deposited pursuant to Section 3.22 of this Agreement
      in
      connection with any Prepayment Interest Shortfalls.

     

    SECTION
      3.09. Withdrawals
      from the Collection Account and Distribution Account.

     

    (a) The
      Servicer shall, from time to time, make withdrawals from the Collection Account
      for any of the following purposes or as described in Section 5.03 of this
      Agreement:

     

    (i) to
      remit
      to the Securities Administrator for deposit in the Distribution Account the
      amounts required to be so remitted pursuant to Section 3.08(b) of this
      Agreement or permitted to be so remitted pursuant to the first sentence of
      Section 3.08(d) of this Agreement;

     

    (ii) subject
      to Section 3.13(d) of this Agreement, to reimburse itself (including any
      successor Servicer) for P&I Advances made by it, but only to the extent of
      amounts received which represent Late Collections (net of the related Servicing
      Fees) of Monthly Payments on related Mortgage Loans with respect to which such
      P&I Advances were made in accordance with the provisions of
      Section 5.03;

     

    (iii) subject
      to Section 3.13(d) of this Agreement, to pay itself any unpaid Servicing
      Fees and reimburse itself any unreimbursed Servicing Advances with respect
      to
      each related Mortgage Loan, but only to the extent of any Liquidation Proceeds
      and Insurance Proceeds received with respect to such related Mortgage Loan
      or
      rental or other income from the related REO Property;

     

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

     

    (v) to
      pay to
      itself or the Sponsor, as the case may be, with respect to each related Mortgage
      Loan that has previously been purchased or replaced pursuant to
      Section 2.03 or Section 3.13(c) of this Agreement all amounts received
      thereon not included in the Purchase Price or the Substitution Shortfall
      Amount;

     

    (vi) to
      reimburse itself (including any successor to the Servicer) for

     

    (A) any
      P&I Advance or Servicing Advance previously made by it which the Servicer
      has determined to be a Nonrecoverable P&I Advance or a Nonrecoverable
      Servicing Advance in accordance with the provisions of Section 5.03 of this
      Agreement provided however, that the Servicer shall not be entitled to
      reimbursement for any Servicing Advance made prior to the Cut-off Date if the
      Servicer determines that such Servicing Advance constitutes a Nonrecoverable
      Servicing Advance of this Agreement; 

     

    
      
        
        

      

      
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    (B) any
      unpaid Servicing Fees to the extent not recoverable from Liquidation Proceeds,
      Insurance Proceeds or other amounts received with respect to the related
      Mortgage Loan under Section 3.06(a)(iii) of this Agreement; or

     

    (C) any
      P&I Advance or Servicing Advance made with respect to a delinquent Mortgage
      Loan which Mortgage Loan has been modified by the Servicer in accordance with
      the terms of this Agreement; provided that the Servicer shall only reimburse
      itself for such P&I Advances and Servicing Advances at the time of such
      modification or as otherwise provided in this Section 3.09;

     

    (vii) to
      reimburse itself or the Depositor for expenses incurred by or reimbursable
      to
      itself or the Depositor, as the case may be, pursuant to Section 3.01 or Section
      7.03 of this Agreement;

     

    (viii) to
      reimburse itself or the Trustee, as the case may be, for 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 related Mortgage Loan, including any expenses arising
      out
      of the enforcement of the purchase obligation;

     

    (ix) to
      pay,
      or to reimburse itself for advances in respect of, expenses incurred in
      connection with any related Mortgage Loan pursuant to Section 3.13(b) of this
      Agreement; 

     

    (x) to
      pay to
      itself any Prepayment Interest Excess on the related Mortgage Loans to the
      extent not retained pursuant to Section 3.08(a)(ii)) of this Agreement;
      and

     

    (xi) to
      clear
      and terminate the Collection Account pursuant to Section 10.01 of this
      Agreement.

     

    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 (ii), (iii), (v), (vi), (vii), (viii), (ix) and (x)
      above.

     

    (b) The
      Securities Administrator shall, from time to time, make withdrawals from the
      Distribution Account, for any of the following purposes, without
      priority:

     

    (i) to
      make
      distributions to Certificateholders in accordance with Section 5.01 of this
      Agreement;

     

    
      
        
        

      

      
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    (ii) to
      pay to
      itself, the Custodian and the Master Servicer amounts to which it is entitled
      pursuant to Section 9.05 of this Agreement or any other provision of this
      Agreement and any Extraordinary Trust Fund Expenses;

     

    (iii) to
      reimburse itself or the Master Servicer pursuant to Section 8.02 of this
      Agreement;

     

    (iv) to
      pay
      any Net Swap Payment or Swap Termination Payment payable to the Supplemental
      Interest Trust (unless the Swap Provider is the sole Defaulting Party or the
      sole Affected Party (as defined in the Swap Agreement)) owed to the Swap
      Provider;

     

    (v) to
      pay
      any amounts in respect of taxes pursuant to Section 11.01(g)(v) of this
      Agreement;

     

    (vi) to
      pay
      the Master Servicing Fee to the Master Servicer;

     

    (vii) to
      pay
      the Credit Risk Management Fee to the Credit Risk Manager; and

     

    (viii) to
      clear
      and terminate the Distribution Account pursuant to Section 10.01 of this
      Agreement.

     

    SECTION
      3.10. Investment
      of Funds in the Investment Accounts.

     

    (a) The
      Servicer may direct, by means of written directions (which may be standing
      directions), any Depository Institution maintaining the Collection Account
      to
      invest the funds in the Collection Account (for purposes of this Section 3.10,
      an “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 Securities Administrator 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 Securities Administrator is the obligor
      on
      such Permitted Investment. Amounts in the Distribution Account may be invested
      in Permitted Investments as directed in writing by the Master Servicer 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
      Securities Administrator 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 Securities Administrator is the obligor thereon. All
      such
      Permitted Investments shall be held to maturity, unless payable on demand.
      Any
      investment of funds shall be made in the name of the Trustee (in its capacity
      as
      such) or in the name of a nominee of the Trustee. The Securities Administrator
      shall be entitled to sole possession over each such investment in the
      Distribution Account and, subject to subsection (b) below, the income thereon,
      and any certificate or other instrument evidencing any such investment shall
      be
      delivered directly to the Securities Administrator or its agent, together with
      any document of transfer necessary to transfer title to such investment to
      the
      Trustee or its nominee. In the event amounts on deposit in the Collection
      Account are at any time invested in a Permitted Investment payable on demand,
      the 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 receipt by such party of
      written notice from the Servicer 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
      Collection Account shall be for the benefit of the Servicer and shall be subject
      to its withdrawal in accordance with Section 3.09. The Servicer shall deposit
      in
      the Collection Account the amount of any loss incurred in respect of any such
      Permitted Investment made with funds in such account immediately upon
      realization of such loss. All earnings and gain realized from the investment
      of
      funds deposited in the Distribution Account shall be for the benefit of the
      Master Servicer. The Master Servicer shall remit from its own funds for deposit
      into the Distribution Account the amount of any loss incurred on Permitted
      Investments in the Distribution Account.

     

    (c) Except
      as
      otherwise expressly provided in this Agreement, if any default occurs in the
      making of a payment due under any Permitted Investment, or if a default occurs
      in any other performance required under any Permitted Investment, the Trustee
      may and, subject to Section 9.01 and Section 9.02(a)(v), shall, at the written
      direction of the Servicer, take such action as may be appropriate to enforce
      such payment or performance, including the institution and prosecution of
      appropriate proceedings.

     

    (d) The
      Trustee, the Master Servicer or their respective Affiliates are permitted to
      receive additional compensation that could be deemed to be in the Trustee’s or
      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 or payable to the Trustee or the
      Master Servicer pursuant to Section 3.09 or 3.10 or otherwise payable in respect
      of Extraordinary Trust Fund Expenses. Such additional compensation shall not
      be
      an expense of the Trust Fund.

     

    SECTION
      3.11. Maintenance
      of Hazard Insurance, Errors and Omissions and Fidelity Coverage and Primary
      Mortgage Insurance.

     

    
      
        
        

      

      
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    (a) The
      terms
      of each Mortgage Note require the related Mortgagor to maintain fire, flood
      and
      hazard insurance policies. To the extent such policies are not maintained,
      the
      Servicer shall cause to be maintained for each Mortgaged Property fire and
      hazard insurance with extended coverage as is customary in the area where the
      Mortgaged Property is located in an amount which is at least equal to the lesser
      of the current principal balance of the related Mortgage Loan and the amount
      necessary to compensate fully for any damage or loss to the improvements which
      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 and hazard insurance on each
      REO
      Property with extended coverage as is customary in the area where the Mortgaged
      Property is located in an amount which is at least equal to the lesser of (i)
      the maximum insurable value of the improvements which are a part of such
      property and (ii) the outstanding principal balance of the related Mortgage
      Loan
      (including, with respect to each second lien mortgage loan, the outstanding
      principal balance of the related first lien) at the time it became an REO
      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 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 Accepted Servicing Practices, 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 3.09, if received
      in respect of a Mortgage Loan, or in the REO Account, subject to withdrawal
      pursuant to Section 3.21, 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, 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 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.

     

    In
      the
      event that the Servicer shall obtain and maintain a blanket policy with an
      insurer having a General Policy Rating of B:VI or better in Best’s Key Rating
      Guide or otherwise acceptable to Fannie Mae or Freddie Mac insuring against
      hazard losses on all of the related Mortgage Loans, it shall conclusively be
      deemed to have satisfied its obligations to cause fire and hazard insurance
      to
      be maintained on the Mortgaged Properties, 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 this Section 3.11, 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 related
      Mortgage Loans, the Servicer agrees to prepare and present, on behalf of itself,
      the Trustee, the Trust Fund, the 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 its respective 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 related Mortgage
      Loans, unless the Servicer, has obtained a waiver of such requirements from
      Fannie Mae or Freddie Mac. The Servicer shall also maintain a fidelity bond
      in
      the form and amount that would meet the requirements of Fannie Mae or Freddie
      Mac, unless the Servicer, has obtained a waiver of such requirements from 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.

     

    (c) The
      Servicer shall not take any action that would result in noncoverage under any
      applicable primary mortgage insurance policy of any loss which, but for the
      actions of the Servicer would have been covered thereunder. The Servicer shall
      use its best efforts to keep in force and effect any applicable primary mortgage
      insurance policy and, to the extent that the related Mortgage Loan requires
      the
      Mortgagor to maintain such insurance, any other primary mortgage insurance
      applicable to any Mortgage Loan. Except as required by applicable law or the
      related Mortgage Loan Documents, the Servicer shall not cancel or refuse to
      renew any such primary mortgage insurance policy that is in effect at the date
      of the initial issuance of the related Mortgage Note and is required to be
      kept
      in force hereunder.

     

    The
      Servicer agrees to present on behalf of the Trustee and the Certificateholders
      claims to the applicable insurer under any primary mortgage insurance policies
      and, in this regard, to take such reasonable action as shall be necessary to
      permit recovery under any primary mortgage insurance policies respecting
      defaulted Mortgage Loans. Pursuant to Section 3.08 of this Agreement, any
      amounts collected by the Servicer under any primary mortgage insurance policies
      shall be deposited in the Collection Account, subject to withdrawal pursuant
      to
      Section 3.09 of this Agreement. Notwithstanding any provision to the
      contrary, the Servicer shall not have any responsibility with respect to a
      primary mortgage insurance policy unless the Servicer has been made aware of
      such policy, as reflected on the Mortgage Loan Schedule or otherwise and have
      been provided with adequate information to administer such policy.

     

    (d) The
      Servicer need not obtain the approval of the Master Servicer prior to releasing
      any Insurance Proceeds to the Mortgagor to be applied to the restoration or
      repair of the Mortgaged Property if such release is in accordance with Accepted
      Servicing Practices. At a minimum, the Servicer shall comply with the following
      conditions in connection with any such release of Insurance Proceeds in excess
      of $10,000:

     

    (i) the
      Servicer shall receive satisfactory independent verification of completion
      of
      repairs and issuance of any required approvals with respect
      thereto;

     

    
      
        
        

      

      
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    (ii) the
      Servicer shall take all steps necessary to preserve the priority of the lien
      of
      the Mortgage, including, but not limited to requiring waivers with respect
      to
      mechanics’ and materialmen’s liens; and

     

    (iii) pending
      repairs or restoration, the Servicer shall place the Insurance Proceeds in
      the
      related Escrow Account, if any.

     

    (e) The
      Servicer agrees to present on behalf of the Trustee and the Certificateholders
      claims to the applicable insurer under any primary mortgage insurance policies
      and, in this regard, to take such reasonable action as shall be necessary to
      permit recovery under any primary mortgage insurance policies respecting
      defaulted Mortgage Loans. Pursuant to Section 3.08, any amounts collected by
      the
      Servicer under any primary mortgage insurance policies shall be deposited in
      the
      Collection Account, subject to withdrawal pursuant to Section 3.09.
      Notwithstanding any provision to the contrary, the Servicer shall not have
      any
      responsibility with respect to a primary mortgage insurance policy unless the
      Servicer has been made aware of such policy, as reflected on the Mortgage Loan
      Schedule or otherwise and have been provided with adequate information to
      administer such policy. The Servicer shall provide the Master Servicer with
      a
      certificate of insurance of the fidelity bond or errors and omissions policy
      upon request.

     

    SECTION
      3.12. Enforcement
      of Due-on-Sale Clauses; Assumption Agreements.

     

    The
      Servicer shall, to the extent it has knowledge of any conveyance of any related
      Mortgaged Property by any related 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. If the Servicer reasonably
      believes that 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 shall 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 then current underwriting criteria of the Servicer for mortgage
      loans similar to the related Mortgage Loans. In connection with any assumption
      or substitution, the Servicer shall apply such 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 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
      Monthly Payment) may be amended or modified, except as otherwise required
      pursuant to the terms thereof. The Servicer shall notify the Trustee (or the
      Custodian) that any such substitution or assumption agreement has been completed
      by forwarding to the Trustee (or 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.

     

    
      
        
        

      

      
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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 3.12, 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
      3.13. Realization
      Upon Defaulted Mortgage Loans.

     

    (a) The
      Servicer shall use commercially reasonable 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 3.06. 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 Sections 3.09 and
      3.21.
      The foregoing is subject to the provision that, in any case in which a 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 3.13 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 Trust Fund, the
      Trustee 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 prudent 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 3.13 shall be
      advanced by the Servicer, subject to the Servicer’s right to be reimbursed
      therefor from the Collection Account as provided in Section 3.09(a)(ix), such
      right of reimbursement being prior to the rights of Certificateholders to
      receive any amount in the Collection Account received in respect of the affected
      Mortgage Loan or other Mortgage Loans serviced by the Servicer.

     

    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.
      The cost of any such compliance, containment, cleanup or remediation shall
      be
      advanced by the Servicer, subject to the Servicer’s right to be reimbursed
      therefor from the Collection Account as provided in Sections 3.09(a)(iii) or
      3.09(a)(ix), such right of reimbursement being prior to the rights of
      Certificateholders to receive any amount in the Collection Account received
      in
      respect of the affected Mortgage Loan or other Mortgage Loans serviced by the
      Servicer.

     

    (c) The
      Servicer shall have the right to purchase from REMIC I any defaulted Mortgage
      Loan serviced by it that is 90 days or more delinquent, which the Servicer
      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 Servicer and the Trustee
      prior to purchase), at a price equal to the Purchase Price. The Purchase Price
      for any Mortgage Loan purchased hereunder shall be deposited in the Collection
      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
      the related Mortgage File and the Trustee shall execute and deliver such
      instruments of transfer or assignment, in each case without recourse,
      representation or warranty, as the Servicer shall furnish and as shall be
      necessary to vest in the Servicer title to any Mortgage Loan 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 or
      Liquidation Proceeds, in respect of any Mortgage Loan, will be applied in the
      following order of priority: first, to reimburse the Servicer for any related
      unreimbursed P&I Advances and Servicing Advances, pursuant to Section
      3.09(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 pursuant to Section
      3.09(a)(iii). The portion of the recovery allocated to interest (net of unpaid
      Servicing Fees) and the portion of the recovery allocated to principal of the
      Mortgage Loan shall be applied as follows: first, to reimburse the Servicer
      for
      any related unreimbursed Servicing Advances or P&I Advances in accordance
      with Section 3.09(a)(ii) and any other amounts reimbursable to the Servicer
      pursuant to Section 3.09, and second, as part of the amounts to be transferred
      to the Distribution Account in accordance with Section 3.08(b). Excess proceeds,
      if any, from the liquidation of a Liquidated Mortgage Loan will be retained
      by
      the Servicer as additional servicing compensation pursuant to Section
      3.15.

     

    
      
        
        

      

      
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    SECTION
      3.14. Trustee
      to Cooperate; Release of Mortgage Files.

     

    (a) Upon
      becoming aware of the payment in full of any Mortgage Loan, or the receipt
      by
      the Servicer of a notification that payment in full has been escrowed in a
      manner customary for such purposes for payment to Certificateholders on the
      next
      Distribution Date, the Servicer will promptly furnish to the Custodian, on
      behalf of the Trustee, two copies of a request for release substantially in
      the
      form attached to the Custodial Agreement signed by a Servicing Officer or in
      a
      mutually agreeable electronic format which will, in lieu of a signature on
      its
      face, originate from a Servicing Officer (which certification shall include
      a
      statement to the effect that all amounts received in connection with such
      payment that are required to be deposited in the Collection Account have been
      or
      will be so deposited) and shall request that the Custodian, on behalf of the
      Trustee, deliver to the Servicer the related Mortgage File. Upon receipt of
      such
      certification and request, the Custodian, on behalf of the Trustee, shall within
      five (5) Business Days release the related Mortgage File to the Servicer and
      the
      Trustee and the Custodian shall have no further responsibility with regard
      to
      such Mortgage File. Upon any such payment in full, the Servicer is authorized,
      to give, as agent for the Trustee, as the mortgagee under the Mortgage that
      secured the Mortgage Loan, an instrument of satisfaction (or assignment of
      mortgage without recourse) regarding the Mortgaged Property subject to the
      Mortgage, which instrument of satisfaction or assignment, as the case may be,
      shall be delivered to the Person or Persons entitled thereto against receipt
      therefor of such payment, it being understood and agreed that no expenses
      incurred in connection with such instrument of satisfaction or assignment,
      as
      the case may be, shall be chargeable to the Collection Account, unless it shall
      represent a Servicing Advance.

     

    (b) From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan, the Trustee shall execute such documents as shall be prepared and
      furnished to the Trustee by Countrywide or New Century (in form reasonably
      acceptable to the Trustee) and as are necessary to the prosecution of any such
      proceedings. The Custodian, on behalf of the Trustee, shall, upon the request
      of
      the related Servicer, and delivery to the Custodian, on behalf of the Trustee,
      of two copies of a request for release signed by a Servicing Officer
      substantially in the form attached to the Custodial Agreement (or in a mutually
      agreeable electronic format which will, in lieu of a signature on its face,
      originate from a Servicing Officer), release within five (5) Business Days
      the
      related Mortgage File held in its possession or control to the related Servicer.
      Such trust receipt shall obligate the related Servicer to return the Mortgage
      File to the Custodian on behalf of the Trustee, when the need therefor by the
      related Servicer no longer exists unless the Mortgage Loan shall be liquidated,
      in which case, upon receipt of a certificate of a Servicing Officer similar
      to
      that hereinabove specified, the Mortgage File shall be released by the
      Custodian, on behalf of the Trustee, to the related Servicer.

     

    
      
        
        

      

      
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    Notwithstanding
      the foregoing, in connection with a Principal Prepayment in full of any Mortgage
      Loan, the Master Servicer may request release of the related Mortgage File
      from
      the Custodian, in accordance with the provisions of the Custodial Agreement,
      in
      the event the related Servicer fails to do so.

     

    Upon
      written certification of a Servicing Officer, the Trustee shall execute and
      deliver to the related Servicer, any court pleadings, requests for trustee’s
      sale or other documents prepared and delivered to the Trustee and reasonably
      acceptable to it and 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. So long as no Servicer Event of Default shall have occurred and
      be continuing, the related Servicer shall have the right to execute any and
      all
      such court pleadings, requests and other documents as attorney-in-fact for,
      and
      on behalf of the Trustee. Notwithstanding the preceding sentence, the Trustee
      shall in no way be liable or responsible for the willful malfeasance of any
      Servicer, or for any wrongful or negligent actions taken by such Servicer,
      while
      such Servicer is acting in its capacity as attorney in fact for and on behalf
      of
      the Trustee.

     

    SECTION
      3.15. Servicing
      Compensation.

     

    As
      compensation for its activities 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 3.22. In
      addition, the Servicer shall be entitled to recover unpaid Servicing Fees out
      of
      Insurance Proceeds or Liquidation Proceeds to the extent permitted by
      Section 3.09(a)(iii) and out of amounts derived from the operation and sale
      of an REO Property to the extent permitted by Section 3.21. 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 to the extent permitted herein.

     

    Additional
      servicing compensation in the form of Ancillary Income (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 3.09(a)(iv) to withdraw from the Collection Account and
      pursuant to Section 3.21(b) to withdraw from any REO Account, as additional
      servicing compensation, interest or other income earned on deposits therein,
      subject to Section 3.10. In addition, the Servicer shall be entitled to
      retain or withdraw from the Collection Account, pursuant to
      Section 3.09(a)(x), any Prepayment Interest Excess with respect to the
      Mortgage Loans serviced by it as additional servicing compensation. The Servicer
      shall be required to pay all expenses incurred by it in connection with its
      servicing activities hereunder and shall not be entitled to reimbursement
      therefor except as specifically provided herein.

     

    
      
        
        

      

      
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    SECTION
      3.16. Collection
      Account Statements.

     

    Upon
      request, not later than fifteen (15) days after each Distribution Date, the
      Servicer shall forward to the Master Servicer and the Securities Administrator,
      the Trustee and the Depositor, a statement prepared by the institution at which
      the Collection Account is maintained setting forth the status of the Collection
      Account as of the close of business on such Distribution Date and showing,
      for
      the period covered by such statement, the aggregate amount of deposits into
      and
      withdrawals from the Collection Account. Copies of such statement and any
      similar statements provided by the Servicer 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
      request at the expense of the requesting party, provided such statement is
      delivered by the Servicer to the Securities Administrator.

     

    SECTION
      3.17. Annual
      Statement as to Compliance.

     

    The
      Servicer shall deliver (and shall cause any Servicing Function Participant
      engaged by it to deliver) to the Master Servicer and to the Depositor on or
      before March 5 of each year, commencing in March 2007, an Officer’s Certificate
      (an “Annual Statement of Compliance”) stating, as to the signer thereof, that
      (A) a review of such party’s activities during the immediately preceding
      calendar year or applicable portion thereof and of the Servicer’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 or such other applicable
      agreement in the case of a Servicing Function Participant, based on such review,
      such party has fulfilled all its obligations under this Agreement, 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.
      Promptly after receipt of each such Officer’s Certificate from the Servicer, any
      Servicing Function Participant engaged by the Servicer, the Depositor shall
      review such Officer’s Certificate and, if applicable, consult with each such
      party, as applicable, as to the nature of any failures by such party, in the
      fulfillment of any of the Servicer’s obligations hereunder or, in the case of a
      Servicing Function Participant, under such other applicable
      agreement.

     

    
      
        
        

      

      
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    SECTION
      3.18. Assessments
      of Compliance and Attestation Reports.

     

    (a) On
      or
      before March 5 of each calendar year, commencing in 2007, the Servicer
      shall:

     

    (i) deliver
      to the Master Servicer and the Depositor a report regarding the Servicer’s
      assessment of compliance with the Relevant 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 Master Servicer and the Depositor and signed by an authorized
      officer of the Servicer, and shall address each of the applicable Relevant
      Servicing Criteria (wherein
      “investor” shall mean the Master Servicer).
      Notwithstanding the foregoing, neither Servicer nor any Servicing Function
      Participant engaged by the Servicer shall be required to deliver any assessments
      until March 31st in any given year so long as it has not received written
      confirmation from the Depositor that a Form 10-K is required to be filed in
      respect of the Trust for the preceding calendar year; provided however that,
      notwithstanding the foregoing, no Subcontractor will be required to deliver
      any
      assessments in any given year in which the Form 10-K is not required to be
      filed;

     

    (ii) deliver
      to the Master Servicer 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. Notwithstanding
      the foregoing, neither Servicer nor any Servicing Function Participant engaged
      by the Servicer shall be required to deliver or cause the delivery of such
      reports until March 31st in any given year so long as the Servicer has received
      written confirmation from the Depositor that a Form 10-K is not required to
      be
      filed in respect of the Trust for the preceding fiscal year provided however
      that, notwithstanding the foregoing, no Subcontractor will be required to
      deliver any reports in any given year in which the Form 10-K is not required
      to
      be filed; and 

     

    (iii) if
      required by Regulation AB, cause each Sub-Servicer and each Subcontractor
      determined by the Servicer to be a Servicing Function Participant, to deliver
      to
      the Master Servicer and the Depositor an assessment of compliance and
      accountants’ attestation as and when provided in subsections (a) and (b) of this
      Section 3.18.

     

    (b) Each
      assessment of compliance provided by a Sub-Servicer pursuant to Section
      3.18(a)(i) shall address each of the applicable Relevant Servicing Criteria
      (wherein “investor” shall mean the Master Servicer) delivered to the Master
      Servicer 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 Servicing Function
      Participant pursuant to Section 3.18(a)(iii) need not address any elements
      of
      the Relevant Servicing Criteria other than those specified by the Servicer
      pursuant to Section 3.02.

     

    
      
        
        

      

      
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    If
      reasonably requested by the Master Servicer, the Servicer shall provide to
      the
      Master Servicer, evidence of the authorization of the person signing the
      certificate or statement provided pursuant to Sections 3.17, 3.18 or 3.19(a)
      of
      this Agreement.

     

    SECTION
      3.19. Annual
      Certification; Indemnification and Remedies; Additional
      Information.

     

    (a) On
      or
      before March 5 of each calendar year, commencing in 2007, the Servicer shall
      deliver, and cause each Sub-Servicer and Subcontractor described in Section
      3.18(a)(iii) above to deliver, to the Master Servicer, Depositor or any other
      Person that will be responsible for signing the certification (each, a
“Back-Up
      Certification”)
      required by Rules 13a-14(d) and 15d-14(d) under the Exchange Act (pursuant
      to
      Section 302 of the Sarbanes-Oxley Act of 2002), signed by the appropriate
      officer of the Servicer or such Sub-Servicer or Subcontractor, in the form
      attached hereto as Exhibit
      C;
      provided that such certification delivered by the Servicer may not be filed
      as
      an exhibit to, or included in, any filing with the Commission. The Servicer
      acknowledges that the party identified in the preceding sentence may rely on
      the
      certification provided by the Servicer in signing a Back-up Certification and
      filing such with the Commission.

     

    (b) The
      Servicer
      shall
      indemnify the Master Servicer and each of the following parties:
      the
      Sponsor
      and the Trust; each Person responsible for the execution or filing of any report
      required to be filed with the Commission, or for execution of a certification
      pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act; 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 and employees 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, 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
      written information, written report, certification or other material
      provided
under
      this Agreement by
      or on
      behalf of the Servicer,
      or provided under this Agreement by or on behalf of any Sub-Servicer, Servicing
      Function Participant (collectively, the “Servicer Information”),
      or (2)
      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 (2) 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;

     

    (B) any
      failure by the Servicer, any Sub-Servicer or any Servicing
      Function Participant to
      deliver any information, report, certification, accountants’ letter or other
      material when and as required under this Agreement, including any failure by
      the
      Servicer to identify pursuant to Section 3.02(b) any Servicing Function
      Participant; or

     

    
      
        
        

      

      
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    (C) any
      breach by the Servicer of a representation or warranty set forth in Section
      3.27(a) or in a writing furnished pursuant to Section 3.27(b) and made as of
      a
      date prior to the Closing Date, to the extent that such breach was not cured
      by
      the Closing Date, or any breach by the Servicer of a representation or warranty
      in a writing furnished pursuant to Section 3.27(b) to the extent made as of
      a
      date subsequent to the Closing Date.

     

    In
      the
      case of any failure of performance described in clause (b)(i)(B) of this
      Section, the Servicer shall promptly reimburse the Master Servicer, the
      Depositor, as applicable, and each Person responsible for the execution or
      filing of any report required to be filed with the Commission, or for execution
      of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the
      Exchange Act, 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 or any Servicing Function Participant.

     

    (ii) (A) Any
      failure by the Servicer, any Sub-Servicer or any Servicing Function Participant
      to
      deliver any information, report, certification, accountants’ letter or other
      material when and as required under this Agreement, which continues unremedied
      for three Business Days after receipt by the Servicer and the applicable
      Sub-Servicer or Subcontractor, of written notice of such failure from the Master
      Servicer or Depositor shall, except as provided in clause (B) of this paragraph,
      constitute an Event of Default with respect to the Servicer under this
      Agreement, and shall entitle the Master Servicer or Depositor, as applicable,
      in
      its sole discretion to terminate the rights and obligations of the Servicer
      as
      servicer under this Agreement and/or any applicable Reconstitution Agreement
      related thereto without payment (notwithstanding anything in this Agreement
      related thereto to the contrary) of any compensation to the Servicer (and
      appoint a successor servicer reasonably acceptable to the Master Servicer);
      provided,
      however,
      it is
      understood that the Servicer shall remain entitled to receive reimbursement
      for
      all unreimbursed Monthly Advances and Servicing Advances made by the Servicer
      under this Agreement. Notwithstanding anything to the contrary set forth herein,
      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.

     

    (B) Any
      failure by the Servicer, any Sub-Servicer or any Servicing Function Participant
      to
      deliver any information, report, certification or accountants’ letter required
      under Regulation AB when and as required under Sections 3.17, 3.18 or 3.19(a),
      including any failure by the Servicer to identify a Servicing
      Function Participant,
      which
      continues unremedied for nine calendar days after receipt by the Servicer of
      written notice of such failure from the Master Servicer or Depositor shall
      constitute an Event of Default with respect to the Servicer under this
      Agreement, and shall entitle the Master Servicer or 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, however
      it is
      understood that the Servicer shall remain entitled to receive reimbursement
      for
      all unreimbursed Monthly Advances and Servicing Advances made by the Servicer
      under this Agreement. Notwithstanding anything to the contrary set forth herein,
      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.

     

    
      
        
        

      

      
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    (C) The
      Servicer shall promptly reimburse the Master Servicer and the Depositor, as
      applicable, for all reasonable expenses incurred by the Master Servicer (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 Servicer, the Master Servicer 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.

     

    (c) The
      Trust
      will indemnify and hold harmless Countrywide, New Century, any Sub-Servicer,
      any
      Servicing Function Participant, and, 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 and employees of each of
      the
      foregoing 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
any
      untrue statement or alleged untrue statement of any material fact contained
      in
      any filing with the Commission or the omission or alleged omission to state
      in
      any filing with the Commission a
      material fact required to be stated or necessary to be stated in order to make
      the statements therein, in the light of the circumstances under which they
      were
      made, not misleading,
      in each
      case to the extent, but only to the extent, that such untrue statement, alleged
      untrue statement, omission, or alleged omission relates to any filing with
      the
      Commission other than the Servicer Information.

     

    (d) If
      the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless the indemnified party, then the indemnifying party agrees that it
      shall
      contribute to the amount paid or payable by such indemnified party as a result
      of any claims, losses, damages or liabilities incurred by such indemnified
      party
      in such proportion as is appropriate to reflect the relative fault of such
      indemnified party on the one hand and the indemnifying party on the
      other.

     

    (e) The
      indemnifications provided for in Sections 3.19(b)
      and
      3.19(c) shall survive the termination of this Agreement or the termination
      of
      any party to this Agreement.

     

    (f) 1597.  As
      promptly as practicable following notice to or discovery by the Servicer, for
      the purpose of satisfying its reporting obligations under the Exchange Act,
      the
      Servicer shall (or shall cause each Sub-Servicer to) provide to the Master
      Servicer and the Depositor (as required by Regulation AB) prompt written notice
      of the occurrence of any of the following: (1) any Servicer Event of
      Default under the terms of this Agreement to the extent not known by the Master
      Servicer or the Depositor, (2) any merger, consolidation or sale of
      substantially all of the assets of the Servicer, (3) the Servicer’s entry
      into a written agreement with any Sub-Servicer and (4) any material litigation
      or governmental proceedings involving the Servicer that is material to the
      Certificateholders;

     

    
      
        
        

      

      
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    (ii) Within
      ten (10) Business Days following request by the Master Servicer or the
      Depositor, the Servicer shall (or shall cause each Sub-Servicer to) provide
      to
      the Master Servicer and the Depositor, in writing reasonably required for
      compliance with Regulation AB, a description of any affiliation or relationship
      required to be disclosed under Item 1119 between the Servicer
      and any of the parties listed in Items 1119
      (a)(1)-(6) of
      Regulation AB that develops following the Closing Date (other than an
      affiliation or relationship that the Master Servicer, the Depositor or the
      issuing entity is required to disclose under Item 1119 of Regulation AB) no
      later than 15 calendar days prior to the date the Depositor is required to
      file
      its Form 10-K disclosing such affiliation or relationship. For purposes of
      the
      foregoing, the Servicer
      (1) shall be entitled to assume that the parties with whom affiliations or
      relations must be disclosed are the Sponsor, the Depositor, the Master Servicer,
      the Securities Administrator, the Trustee, the Custodian, the Swap Provider,
      and
      New Century Mortgage Corporation if it provides a written request (which may
      be
      by e-mail)
      to the Depositor or Master Servicer, as applicable, requesting such confirmation
      and either obtains such confirmation or receives no response within three (3)
      Business Days, (2) shall not be obligated to disclose any affiliations or
      relationships that may develop after the Closing Date with any parties not
      identified to the Servicer
      in writing within ten days in advance of the Securitization Transaction, and
      (3)
      shall be entitled to rely upon any written identification of parties provided
      by
      the Depositor, the Master Servicer or any master servicer or provided in (1)
      above;

     

    (iii) If
      the
      Servicer has knowledge of the occurrence of any of the events described in
      this
      clause (iii), then no later than ten days prior to the deadline for the filing
      of any Distribution Report on Form 10-D in respect of the Trust, the Servicer
      shall provide to the Master Servicer notice of the occurrence of any of the
      following events along with all information, data, and materials related thereto
      as may be required to be included in the related Distribution Report on Form
      10-D: 

     

    (A) any
      modifications, extensions or waivers of Mortgage Loan terms, fees, penalties
      or
      payments during the distribution period;

     

    (B) material
      breaches of Mortgage Loan representations or warranties or servicer transaction
      covenants; and

     

    (C) information
      regarding any Mortgage Loan changes (such as, additions, substitutions or
      repurchases).

     

    (g) As
      a
      condition to the succession to the Servicer or any Sub-Servicer as servicer
      or
      sub-servicer 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 Master Servicer and the Depositor, at least 15 calendar days prior to
      the
      effective date of such succession or appointment, (x) written notice to the
      Master Servicer and the Depositor of such succession or appointment and (y)
      in
      writing, all information reasonably requested by the Master Servicer or the
      Depositor in order to comply with its reporting obligation under Item 6.02
      of
      Form 8-K with respect to any of the Certificates.

     

    
      
        
        

      

      
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    SECTION
      3.20. 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 Certificate Owner, access to the documentation
      regarding the related 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. Nothing in this Section 3.20 shall limit the
      obligation of the Servicer to comply with any applicable law prohibiting
      disclosure of information regarding the Mortgagors and the failure of the
      Servicer 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 3.20 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 ship documents
      to any Person unless provisions have been made for the reimbursement of the
      costs thereof. 

     

    SECTION
      3.21. Title,
      Management and Disposition of REO Property.

     

    (a) The
      deed
      or certificate of sale of any REO Property related to a Mortgage Loan 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 by the close of the third calendar year
      following the calendar year in which REMIC I acquires ownership of such REO
      Property for purposes of Section 860(a)(8) of the Code or request from the
      Internal Revenue Service, no later than sixty (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 had 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 (3) years
      after its acquisition will not result in the imposition on any Trust REMIC
      created hereunder of taxes on “prohibited transactions” thereof, as defined in
      Section 860F of the Code, or cause any Trust REMIC hereunder 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 created hereunder of any “income from
      non-permitted assets” within the meaning of Section 860F(a)(2)(B) of the Code,
      or any “net income from foreclosure property” which is subject to taxation under
      the REMIC Provisions.

     

    (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 with respect to REO Properties
      an account held in trust for the Trustee, on behalf of the Trust Fund and for
      the benefit of the Certificateholders (the “REO Account”), which shall be an
      Eligible Account. The Servicer shall be permitted to allow the Collection
      Account to serve as the REO Account, subject to the maintenance of separate
      ledgers for each REO Property. The Servicer shall be entitled to retain or
      withdraw any interest income paid on funds deposited in the related REO
      Account.

     

    
      
        
        

      

      
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    (c) 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 related to a Mortgage Loan serviced by it
      as
      are consistent with the manner in which the Servicer manages and operates
      similar property owned by it 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 (1)
      Business Day after the Servicer’s receipt thereof, and shall thereafter deposit
      in the REO Account in no event more than two (2) Business Days after the deposit
      of good funds into the clearing account, all revenues received by it with
      respect to an REO Property related to a Mortgage Loan serviced by it and shall
      withdraw therefrom funds necessary for the proper operation, management and
      maintenance of such REO Property including, without limitation:

     

    (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.

     

    Subject
      to compliance with applicable laws and regulations as shall at any time be
      in
      force, and notwithstanding the foregoing, the Servicer, on behalf of the Trust
      Fund, shall not:

     

    (iv) 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;

     

    (v) permit
      any amount to be received or accrued under any New Lease other than amounts
      that
      will constitute Rents from Real Property;

     

    (vi) authorize
      or permit 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

     

    
      
        
        

      

      
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    (vii) allow
      any
      Person to Directly Operate any REO Property on any date more than ninety (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:

     

    (viii) the
      terms
      and conditions of any such contract shall not be inconsistent
      herewith;

     

    (ix) 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 (30) days following
      the receipt thereof by such Independent Contractor;

     

    (x) none
      of
      the provisions of this Section 3.21(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 Trust Fund and for the benefit of the Certificateholders with respect to
      the
      operation and management of any such REO Property; and

     

    (xi) 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 3.15 is sufficient to pay such fees. Any such
      agreement shall include a provision that such agreement may be immediately
      terminated by any successor Servicer without fee, in the event the Servicer
      shall for any reason, no longer be the Servicer of the Mortgage Loans (including
      termination due to the Servicer Event of Default).

     

    (d) In
      addition to the withdrawals permitted under Section 3.21(c), the Servicer may
      from time to time make withdrawals from the REO Account for any REO Property:
      (i) to pay itself unpaid Servicing Fees in respect of the related Mortgage
      Loan;
      and (ii) to reimburse itself or any Sub-Servicer for unreimbursed Servicing
      Advances and other 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 and deposit into the Distribution Account in accordance with
      Section 3.08(d)(ii), for distribution on the related Distribution Date in
      accordance with Section 5.01, the income from the related REO Property received
      during the prior calendar month, net of any withdrawals made pursuant to Section
      3.21(c) or this Section 3.21(d).

     

    
      
        
        

      

      
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    (e) Subject
      to the time constraints set forth in Section 3.21(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 accordance with Accepted Servicing Practices.

     

    (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 as provided above, shall be deposited in the
      Distribution Account in accordance with Section 3.08(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 5.01. 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 (and shall provide a certification
      of a
      Servicing Officer to the Master Servicer that such filings have been made)
      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
      3.22. Obligations
      of the Servicer in Respect of Prepayment Interest Shortfalls; Relief Act
      Interest Shortfalls.

     

    The
      Servicer shall deliver to the Securities Administrator for deposit into the
      Distribution Account on the Servicer Remittance Date from its own funds an
      amount equal to the lesser of (i) the aggregate amount of the Prepayment
      Interest Shortfalls attributable to prepayments in full on the related Mortgage
      Loans for the related Distribution Date resulting solely from voluntary
      Principal Prepayments received by the Servicer during the portion of the related
      Prepayment Period occurring between the sixteenth (16th)
      day of
      the month preceding the month in which the related Distribution Date occurs
      and
      ending on the last day of such month and (ii) the aggregate amount of the
      related Servicing Fees payable to Servicer on such Distribution Date with
      respect to the related Mortgage Loans. The Servicer shall not have the right
      to
      reimbursement for any amounts remitted to the Securities Administrator in
      respect of this Section 3.22. The Servicer shall not be obligated to pay
      the amounts set forth in this Section 3.22 with respect to shortfalls
      resulting from the application of the Relief Act.

     

    
      
        
        

      

      
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    SECTION
      3.23. 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 and this
      Agreement, the Servicer, upon discovery or receipt of notice thereof,
      immediately shall deliver to the Securities Administrator for deposit in the
      Distribution Account from its own funds the amount of any such shortfall and
      shall indemnify and hold harmless the Trust Fund, the Trustee, the Securities
      Administrator, the Master Servicer, 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 3.23 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 and Mortgage, to the extent permitted by applicable
      law.

     

    SECTION
      3.24. Reserve
      Fund.

     

    (a) No
      later
      than the Closing Date, the Securities Administrator shall establish and maintain
      a separate, segregated trust account entitled, “Reserve Fund, Wells Fargo Bank,
      N.A., in trust for the registered holders of ACE Securities Corp. Home Equity
      Loan Trust, Series 2006-NC3, Asset Backed Pass-Through Certificates.” On the
      Closing Date, the Depositor will deposit, or cause to be deposited, into the
      Reserve Fund $1,000. 

     

    (b) On
      each
      Distribution Date, the Securities Administrator shall deposit into the Reserve
      Fund the amounts described in Section 5.01(c)(8)(vi), rather than
      distributing such amounts to the Class CE Certificateholders pursuant to
      Section 5.01(c)(8)(viii). On each such Distribution Date, the Securities
      Administrator shall hold all such amounts for the benefit of the Holders of
      the
      Class A Certificates and the Mezzanine Certificates and will distribute such
      amounts to the Holders of the Class A Certificates and the Mezzanine
      Certificates, in the amounts and priorities set forth in Section 5.01(c).
      If no Net WAC Rate Carryover Amounts are payable on a Distribution Date, the
      Securities Administrator shall deposit, into the Reserve Fund on behalf of
      the
      Class CE Certificateholders, from amounts otherwise distributable to the Class
      CE Certificateholders, an amount such that when added to other amounts already
      on deposit in the Reserve Fund, the aggregate amount on deposit therein is
      equal
      to $1,000.

     

    (c) It
      is the
      intention of the parties hereto that, for federal and state income and state
      and
      local franchise tax purposes, the Reserve Fund be disregarded as an entity
      separate from the Holder of the Class CE Certificates unless and until the
      date
      when either (a) there is more than one Class CE Certificateholder or (b) any
      Class of Certificates in addition to the Class CE Certificates is
      recharacterized as an equity interest in the Reserve Fund for federal income
      tax
      purposes, in which case it is the intention of the parties hereto that, for
      federal and state income and state and local franchise tax purposes, the Reserve
      Fund be treated as a partnership. The Master Servicer shall not be required
      to
      prepare and file partnership tax returns in respect of such partnership unless
      it receives additional reasonable compensation (not to exceed $10,000 per year)
      for the preparation of such filings, written notification recognizing the
      creation of a partnership agreement or comparable documentation evidencing
      the
      partnership. All amounts deposited into the Reserve Fund (other than the initial
      deposit therein of $1,) shall be treated as amounts distributed by REMIC III
      to
      the Holders of the Class CE Certificates. Upon the termination of the Trust
      Fund, or the payment in full of the Class A Certificates and the Mezzanine
      Certificates, all amounts remaining on deposit in the Reserve Fund will be
      released by the Trust Fund and distributed to the Class CE Certificateholders
      or
      their designees. The Reserve Fund constitutes an “outside reserve fund” within
      the meaning of Treasury Regulation § 1.860G-2(h). The Reserve Fund will be part
      of the Trust Fund but not part of any REMIC and any payments to the Holders
      of
      the Class A Certificates or the Mezzanine Certificates of Net WAC Rate Carryover
      Amounts will not be payments with respect to a “regular interest” in a REMIC
      within the meaning of Code Section 860(G)(a)(1).

     

    
      
        
        

      

      
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    (d) By
      accepting a Class CE Certificate, each Class CE Certificateholder hereby agrees
      that the Securities Administrator will deposit into the Reserve Fund the amounts
      described above on each Distribution Date rather than distributing such amounts
      to the Class CE Certificateholders. By accepting a Class CE Certificate, each
      Class CE Certificateholder further agrees that its agreement to such action
      by
      the Securities Administrator is given for good and valuable consideration,
      the
      receipt and sufficiency of which is acknowledged by such
      acceptance.

     

    (e) At
      the
      direction of the Holders of a majority in Percentage Interest in the Class
      CE
      Certificates, the Securities Administrator shall direct any Depository
      Institution maintaining the Reserve Fund to invest the funds in such 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
      Securities Administrator or an Affiliate manages or advises such investment,
      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 Securities Administrator
      or
      an Affiliate manages or advises such investment. All income and gain earned
      upon
      such investment shall be deposited into the Reserve Fund. In no event shall
      the
      Securities Administrator be liable for any investments made pursuant to this
      clause (e). If the Holders of a majority in Percentage Interest in the Class
      CE
      Certificates fail to provide investment instructions, funds on deposit in the
      Reserve Fund shall be held uninvested by the Securities Administrator without
      liability for interest or compensation.

     

    (f) For
      federal tax return and information reporting, the right of the holders of the
      Class A Certificates and the Mezzanine Certificates to receive payments from
      the
      Reserve Fund and the Supplemental Interest Trust in respect of any Net WAC
      Rate
      Carryover Amount shall be assigned a value of $2,407,686.

     

    SECTION
      3.25. Advance
      Facility.

     

    (a) Notwithstanding
      anything to the contrary contained herein, (i) the Servicer is hereby authorized
      to enter into an advance facility (“Advance Facility”) but no more than two
      Advance Facilities, without the prior written consent of the Trustee, which
      consent shall not be unreasonably withheld, under which (A) the Servicer sells,
      assigns or pledges to an advancing person (an “Advance Financing Person”) its
      rights under this Agreement to be reimbursed for any P&I Advances or
      Servicing Advances and/or (B) an Advance Financing Person agrees to finance
      some
      or all P&I Advances or Servicing Advances required to be made by the
      Servicer pursuant to this Agreement and (ii) the Servicer is hereby authorized
      to assign its rights to the Servicing Fee (which rights shall terminate upon
      the
      resignation, termination or removal of the Servicer pursuant to the terms of
      this Agreement); it being understood that neither the Trust Fund nor any party
      hereto shall have a right or claim (including without limitation any right
      of
      offset) to any amounts for reimbursement of P&I Advances or Servicing
      Advances so assigned or to the portion of the Servicing Fee so assigned. Subject
      to the provisions of the first sentence of this Section 3.25(a), no consent
      of
      the Depositor, Trustee, Master Servicer, Certificateholders or any other party
      is required before the Servicer may enter into an Advance Facility, but the
      Servicer shall provide notice to the Depositor, Master Servicer and the Trustee
      of the existence of any such Advance Facility promptly upon the consummation
      thereof stating (a) the identity of the Advance Financing Person and (b) the
      identity of any Person (“Servicer’s Assignee”) who has the right to receive
      amounts in reimbursement of previously unreimbursed P&I Advances or
      Servicing Advances. Notwithstanding the existence of any Advance Facility under
      which an advancing person agrees to finance P&I Advances and/or Servicing
      Advances on the Servicer’s behalf, the Servicer shall remain obligated pursuant
      to this Agreement to make P&I Advances and Servicing Advances pursuant to
      and as required by this Agreement, and shall not be relieved of such obligations
      by virtue of such Advance Facility.

     

    
      
        
        

      

      
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    (b) Reimbursement
      amounts (“Advance Reimbursement Amounts”) shall consist solely of amounts in
      respect of P&I Advances and/or Servicing Advances made with respect to the
      related Mortgage Loans for which the Servicer would be permitted to reimburse
      itself in accordance with this Agreement, assuming the Servicer had made the
      related P&I Advance(s) and/or Servicing Advance(s).

     

    (c) The
      Servicer shall maintain and provide to any successor Servicer (with, upon
      request, a copy to the Trustee) a detailed accounting on a loan-by-loan basis
      as
      to amounts advanced by, pledged or assigned to, and reimbursed to any Advance
      Financing Person. The successor Servicer shall be entitled to rely on any such
      information provided by the predecessor Servicer, and the successor Servicer
      shall not be liable for any errors in such information.

     

    (d) Reimbursement
      amounts distributed with respect to each Mortgage Loan shall be allocated to
      outstanding unreimbursed P&I Advances or Servicing Advances (as the case may
      be) made with respect to that Mortgage Loan on a “first-in, first out” (FIFO)
      basis. The documentation establishing any Advance Facility shall require the
      Servicer to provide to the related Advance Financing Person or its designee
      loan-by-loan information with respect to each such reimbursement amount
      distributed to such Advance Financing Person or Advance Facility trustee on
      each
      Distribution Date, to enable the Advance Financing Person or Advance Facility
      trustee to make the FIFO allocation of each such reimbursement amount with
      respect to each Mortgage Loan. The Servicer shall remain entitled to be
      reimbursed by the Advance Financing Person or Advance Facility trustee for
      all
      P&I Advances and Servicing Advances funded by the Servicer to the extent the
      related rights to be reimbursed therefor have not been sold, assigned or pledged
      to an Advance Financing Person.

     

    (e) Any
      amendment to this Section 3.25 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 3.25, including amendments to add provisions
      relating to a successor Servicer, may be entered into by the Trustee, the
      Depositor, and the Servicer without the consent of any Certificateholder,
      notwithstanding anything to the contrary in this Agreement, provided, that
      the
      Trustee has been provided an Opinion of Counsel that such amendment is
      authorized hereunder and has no material adverse effect on the
      Certificateholders, 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; provided, further, that the amendment 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
      (instead of obtaining an Opinion of Counsel to such effect) 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 rating 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. Prior to entering into an
      Advance Facility, the Servicer shall notify the lender under such facility
      in
      writing that: (a) the P&I Advances and/or Servicing Advances financed by
      and/or pledged to the lender are obligations owed to the Servicer on a
      non-recourse basis payable only from the cash flows and proceeds received under
      this Agreement for reimbursement of P&I Advances and/or Servicing Advances
      only to the extent provided herein, and neither the Master Servicer, the
      Securities Administrator, the Trustee nor the Trust are otherwise obligated
      or
      liable to repay any P&I Advances and/or Servicing Advances financed by the
      lender; (b) the Servicer will be responsible for remitting to the lender the
      applicable amounts collected by it as Servicing Fees and as reimbursement for
      P&I Advances and/or Servicing Advances funded by the lender, as applicable,
      subject to the restrictions and priorities created in this Agreement; and (c)
      neither the Master Servicer, the Securities Administrator nor the Trustee shall
      have any responsibility to calculate any amount payable under an Advance
      Facility or to track or monitor the administration of the financing arrangement
      between the Servicer and the lender or the payment of any amount under an
      Advance Facility.

     

    
      
        
        

      

      
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    (f) The
      Servicer shall indemnify the Master Servicer, the Securities Administrator,
      the
      Trustee and the Trust Fund for any cost, liability or expense relating to the
      Advance Facility including, without limitation, a claim, pending or threatened,
      by an Advance Financing Person.

     

    SECTION
      3.26. Indemnification.

     

    The
      Servicer agrees to indemnify the Trustee, Master Servicer and the Securities
      Administrator, from, and hold the Trustee, Master Servicer and the Securities
      Administrator harmless against, any loss, liability or expense (including
      reasonable attorney’s fees and expenses) incurred by any such Person by reason
      of the Servicer’s willful misfeasance, bad faith or gross negligence in the
      performance of its duties under this Agreement or by reason of the Servicer’s
      reckless disregard of its obligations and duties under this Agreement. Such
      indemnity shall survive the termination or discharge of this Agreement and
      the
      resignation or removal of the Servicer, the Trustee, the Master Servicer and
      the
      Securities Administrator. Any payment hereunder made by the Servicer to any
      such
      Person shall be from the Servicer’s own funds, without reimbursement from REMIC
      I therefor.

     

    
      
        
        

      

      
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    SECTION
      3.27. Additional
      Representations and Warranties.

     

    (a) The
      Servicer shall be deemed to represent to the Master Servicer and to the
      Depositor, as of the date on which information is first provided to the Master
      Servicer or the Depositor under Section 3.19(f) that, except as disclosed in
      writing to the Master Servicer or such 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 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 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 aspects of 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 material
      legal or governmental proceedings pending (or known to be contemplated) against
      the Servicer or any Sub-Servicer.

     

    (b) If
      so requested by the Master Servicer or the Depositor on any date following
      the
      date
      on which information is first provided to the Master Servicer or the Depositor
      under Section 3.19(f),
      the Servicer shall, within ten Business Days following such request, confirm
      in
      writing the accuracy of the representations and warranties set forth in
      subsection (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.

     

    
      
        
        

      

      
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    ARTICLE
      IV

     

    ADMINISTRATION
      AND MASTER SERVICING

    OF
      THE
      MORTGAGE LOANS BY THE MASTER SERVICER

     

    SECTION
      4.01. Master
      Servicer.

     

    The
      Master Servicer shall, from and after the Closing Date supervise, monitor and
      oversee the obligations of the Servicers under this Agreement and the Servicing
      Agreement, as applicable, to service and administer the related Mortgage Loans
      in accordance with the terms of this Agreement or the Servicing Agreement,
      as
      applicable, and shall have full power and authority to do any and all things
      which it may deem necessary or desirable in connection with such master
      servicing and administration. In performing its obligations hereunder, the
      Master Servicer shall act in a manner consistent with Accepted Master Servicing
      Practices. Furthermore, the Master Servicer shall oversee and consult with
      the
      Servicers as necessary from time-to-time to carry out the Master Servicer’s
      obligations hereunder, shall receive, review and evaluate all reports,
      information and other data provided to the Master Servicer by the Servicers
      and
      shall cause the Servicers to perform and observe the covenants, obligations
      and
      conditions to be performed or observed by the Servicer under this Agreement
      and
      the Servicing Agreement, as applicable. The Master Servicer shall independently
      and separately monitor each Servicer’s servicing activities with respect to each
      Mortgage Loan, reconcile the results of such monitoring with such information
      provided in the previous sentence on a monthly basis and coordinate corrective
      adjustments to the related Servicer’s and Master Servicer’s records, and based
      on such reconciled and corrected information, prepare the statements specified
      in Section 5.03 and any other information and statements required to be provided
      by the Master Servicer hereunder. The Master Servicer shall reconcile the
      results of its Mortgage Loan monitoring with the actual remittances of each
      Servicer to the Distribution Account pursuant to the terms hereof based on
      information provided to the Master Servicer by the Servicers.

     

    The
      Trustee shall furnish the Servicers and the Master Servicer with any limited
      powers of attorney and other documents in form acceptable to it necessary or
      appropriate to enable the Servicers and the Master Servicer to service and
      administer the related Mortgage Loans and REO Properties. The Trustee shall
      have
      no responsibility for any action of the Master Servicer or the Servicers
      pursuant to any such limited power of attorney and shall be indemnified by
      the
      Master Servicer or the related Servicer, as applicable, for any cost, liability
      or expense incurred by the Trustee in connection with such Person’s misuse of
      any such power of attorney.

     

    The
      Trustee, the Custodian and the Securities Administrator shall provide access
      to
      the records and documentation in possession of the Trustee, the Custodian or
      the
      Securities Administrator regarding the Mortgage Loans and REO Property and
      the
      servicing thereof to the Certificateholders, the FDIC, and the supervisory
      agents and examiners of the FDIC, such access being afforded only upon
      reasonable prior written request and during normal business hours at the office
      of the Trustee, the Custodian or the Securities Administrator; provided,
      however, that, unless otherwise required by law, none of the Trustee, the
      Custodian or the Securities Administrator shall be required to provide access
      to
      such records and documentation if the provision thereof would violate the legal
      right to privacy of any Mortgagor. The Trustee, the Custodian and the Securities
      Administrator shall allow representatives of the above entities to photocopy
      any
      of the records and documentation and shall provide equipment for that purpose
      at
      a charge that covers the Trustee’s, the Custodian’s or the Securities
      Administrator’s actual costs.

     

    
      
        
        

      

      
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    The
      Trustee shall execute and deliver to the related Servicer or the Master Servicer
      upon request any court pleadings, requests for trustee’s sale or other documents
      necessary or desirable to (i) the foreclosure or trustee’s sale with respect to
      a Mortgaged Property; (ii) any legal action brought to obtain judgment against
      any Mortgagor on the Mortgage Note or any other Mortgage Loan Document; (iii)
      obtain a deficiency judgment against the Mortgagor; or (iv) enforce any other
      rights or remedies provided by the Mortgage Note or any other Mortgage Loan
      Document or otherwise available at law or equity.

     

    SECTION
      4.02. REMIC-Related
      Covenants.

     

    For
      as
      long as each REMIC shall exist, the Trustee and the Securities Administrator
      shall act in accordance herewith to treat such REMIC as a REMIC, and the Trustee
      and the Securities Administrator shall comply with any directions of the
      Sponsor, the Servicer or the Master Servicer to assure such continuing
      treatment. In particular, the Trustee shall not (a) sell or permit the sale
      of
      all or any portion of the Mortgage Loans or of any investment of deposits in
      an
      Account unless such sale is as a result of a repurchase of the Mortgage Loans
      pursuant to this Agreement or the Trustee has received a REMIC Opinion prepared
      at the expense of the Trust Fund; and (b) other than with respect to a
      substitution pursuant to the Mortgage Loan Purchase Agreement or
      Section 2.03 of this Agreement, as applicable, accept any contribution to
      any REMIC after the Startup Day without receipt of an Opinion of Counsel stating
      that such contribution will not result in an Adverse REMIC Event as defined
      in
      Section 11.01(f).

     

    SECTION
      4.03. Monitoring
      of Servicer.

     

    (a) The
      Master Servicer shall be responsible for monitoring the compliance by each
      Servicer with its duties under this Agreement or the Servicing Agreement, as
      applicable. In the review of the related Servicer’s activities, the Master
      Servicer may rely upon an Officer’s Certificate of such Servicer with regard to
      the related Servicer’s compliance with the terms of this Agreement or the
      Servicing Agreement, as applicable. In the event that the Master Servicer,
      in
      its judgment, determines that Servicer should be terminated in accordance with
      the terms hereof, or that a notice should be sent pursuant to the terms hereof
      or the Servicing Agreement, as applicable, with respect to the occurrence of
      an
      event that, unless cured, would constitute the Servicer Event of Default, the
      Master Servicer shall notify the related Servicer, the Sponsor and the Trustee
      thereof and the Master Servicer shall issue such notice or take such other
      action as it deems appropriate.

     

    (b) The
      Master Servicer, for the benefit of the Trustee and the Certificateholders,
      shall enforce the obligations of the Servicers under this Agreement or the
      Servicing Agreement, as applicable, and shall, in the event that the Servicer
      fails to perform its obligations in accordance with this Agreement, subject
      to
      this Section and Article VIII, notify the Trustee and the Trustee shall
      terminate the rights and obligations of the related Servicer hereunder or under
      the Servicing Agreement, as applicable, in accordance with the provisions of
      Article VIII. In the event the rights and obligations of a Servicer (or any
      successor thereto) are terminated, the Master Servicer shall act as servicer
      of
      the related Mortgage Loans or a successor servicer shall be appointed in
      accordance with the provisions of Article VIII or in accordance with the terms
      of the Servicing Agreement, as applicable. Such enforcement, including, without
      limitation, the legal prosecution of claims and the pursuit of other appropriate
      remedies, shall be in such form and carried out to such an extent and at such
      time as the Master Servicer, in its good faith business judgment, would require
      were it the owner of the related Mortgage Loans. The Master Servicer shall
      pay
      the costs of such enforcement at its own expense, provided that the Master
      Servicer shall not be required to prosecute or defend any legal action except
      to
      the extent that the Master Servicer shall have received reasonable indemnity
      for
      its costs and expenses in pursuing such action.

     

    
      
        
        

      

      
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    (c) The
      Master Servicer shall be entitled to be reimbursed by the related Servicer
      (or
      from amounts on deposit in the Distribution Account if such Servicer is unable
      to fulfill its obligations hereunder) for all reasonable out-of-pocket or third
      party costs associated with the transfer of servicing from the predecessor
      Servicer (or if the predecessor Servicer is the Master Servicer, from the
      Servicer immediately preceding the Master Servicer), including without
      limitation, any reasonable out-of-pocket or third party 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
      successor servicer to correct any errors or insufficiencies in the servicing
      data or otherwise to enable the successor servicer to service the Mortgage
      Loans
      properly and effectively, upon presentation of reasonable documentation of
      such
      costs and expenses.

     

    (d) The
      Master Servicer shall require the Servicers to comply with the remittance
      requirements and other obligations set forth in this Agreement and the Servicing
      Agreement, as applicable.

     

    (e) If
      the
      Master Servicer acts as successor to any Servicer, it will not assume any
      liability for the representations and warranties of the terminated
      Servicer.

     

    SECTION
      4.04. Fidelity
      Bond.

     

    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, 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
      4.05. Power
      to
      Act; Procedures.

     

    The
      Master Servicer shall master service the Mortgage Loans and shall have full
      power and authority, subject to the REMIC Provisions and the provisions of
      Article XI, to do any and all things that it may deem necessary or desirable
      in
      connection with the master servicing and administration of the Mortgage Loans,
      including but not limited to the power and authority (i) to execute and deliver,
      on behalf of the Certificateholders and the Trustee, customary consents or
      waivers and other instruments and documents, (ii) to consent to transfers of
      any
      Mortgaged Property and assumptions of the Mortgage Notes and related Mortgages,
      (iii) to collect any Insurance Proceeds and Liquidation Proceeds, and (iv)
      to
      effectuate foreclosure or other conversion of the ownership of the Mortgaged
      Property securing any Mortgage Loan, in each case, in accordance with the
      provisions of this Agreement; provided, however, that the Master Servicer shall
      not (and, consistent with its responsibilities under Section 4.03, shall not
      permit any Servicer to) knowingly or intentionally 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, would cause REMIC I,
      REMIC II or REMIC III to fail to qualify as a REMIC or 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) unless the
      Master Servicer has received an Opinion of Counsel (but not at the expense
      of
      the Master Servicer) to the effect that the contemplated action will not cause
      REMIC I, REMIC II or REMIC III to fail to qualify as a REMIC or result in the
      imposition of a tax upon REMIC I, REMIC II or REMIC III, as the case may be.
      The
      Trustee shall furnish the Master Servicer, upon written request from a Servicing
      Officer, with any powers of attorney prepared and delivered to it and reasonably
      acceptable to it by empowering the Master Servicer or the related Servicer
      to
      execute and deliver instruments of satisfaction or cancellation, or of partial
      or full release or discharge, and to foreclose upon or otherwise liquidate
      Mortgaged Property, and to appeal, prosecute or defend in any court action
      relating to the Mortgage Loans or the Mortgaged Property, in accordance with
      this Agreement and the Trustee shall execute and deliver such other documents
      prepared and delivered to it and reasonably acceptable to it, as the Master
      Servicer, the related Servicer may request, to enable the Master Servicer to
      master service and administer the Mortgage Loans and carry out its duties
      hereunder, in each case in accordance with Accepted Master Servicing Practices
      (and the Trustee shall have no liability for misuse of any such powers of
      attorney by the Master Servicer or the related Servicer and shall be indemnified
      by the Master Servicer or the related Servicer, as applicable, for any cost,
      liability or expense incurred by the Trustee in connection with such Person’s
      use or misuse of any such power of attorney). If the Master Servicer or the
      Trustee has been advised that it is likely that the laws of the state in which
      action is to be taken prohibit such action if taken in the name of the Trustee
      or that the Trustee would be adversely affected under the “doing business” or
      tax laws of such state if such action is taken in its name, the Master Servicer
      shall join with the Trustee in the appointment of a co-trustee pursuant to
      Section 9.10. In the performance of its duties hereunder, the Master Servicer
      shall be an independent contractor and shall not, except in those instances
      where it is taking action in the name of the Trustee, be deemed to be the agent
      of the Trustee.

     

    
      
        
        

      

      
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    SECTION
      4.06. Due-on-Sale
      Clauses; Assumption Agreements.

     

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

     

    
      
        
        

      

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

     

    (a) The
      Master Servicer shall transmit to the Trustee or the Custodian such documents
      and instruments coming into the possession of the Master Servicer from time
      to
      time as are required by the terms hereof to be delivered to the Trustee or
      the
      Custodian. Any funds received by the Master Servicer in respect of any Mortgage
      Loan or which otherwise are collected by the Master Servicer as Liquidation
      Proceeds or Insurance Proceeds in respect of any Mortgage Loan shall be remitted
      to the Securities Administrator for deposit in the Distribution Account. The
      Master Servicer shall, and, subject to Section 3.20 of this Agreement and
      corresponding provision of the Servicing Agreement, shall cause the related
      Servicer to provide access to information and documentation regarding the
      related Mortgage Loans to the Trustee, its agents and accountants at any time
      upon reasonable request and during normal business hours, and to
      Certificateholders that are savings and loan associations, banks or insurance
      companies, the Office of Thrift Supervision, the FDIC and the supervisory agents
      and examiners of such Office and Corporation or examiners of any other federal
      or state banking or insurance regulatory authority if so required by applicable
      regulations of the Office of Thrift Supervision or other regulatory authority,
      such access to be afforded without charge but only upon reasonable request
      in
      writing and during normal business hours at the offices of the Master Servicer
      designated by it. In fulfilling such a request the Master Servicer shall not
      be
      responsible for determining the sufficiency of such information.

     

    (b) All
      Mortgage Files and funds collected or held by, or under the control of, the
      Master Servicer, in respect of any Mortgage Loans, whether from the collection
      of principal and interest payments or from Liquidation Proceeds or Insurance
      Proceeds, shall be remitted to the Securities Administrator for deposit in
      the
      Distribution Account.

     

    SECTION
      4.08. Standard
      Hazard Insurance and Flood Insurance Policies.

     

    For
      each
      Mortgage Loan, the Master Servicer shall enforce the obligation of the Servicers
      under this Agreement and the Servicing Agreement, as applicable, to maintain
      or
      cause to be maintained standard fire and casualty insurance and, where
      applicable, flood insurance, all in accordance with the provisions of this
      Agreement or the requirements of the Servicing Agreement, as applicable. It
      is
      understood and agreed that such insurance shall be with insurers meeting the
      eligibility requirements set forth in Section 3.11 of this Agreement and that
      no
      earthquake or other additional insurance is to be required of any Mortgagor
      or
      to be maintained on property acquired in respect of a defaulted loan, other
      than
      pursuant to such applicable laws and regulations as shall at any time be in
      force and as shall require such additional insurance.

     

    SECTION
      4.09. Presentment
      of Claims and Collection of Proceeds.

     

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

     

    
      
        
        

      

      
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    SECTION
      4.10. Maintenance
      of Primary Mortgage Insurance Policies.

     

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

     

    (b) The
      Master Servicer agrees to cause the Servicers to present, on behalf of the
      Trustee and the Certificateholders, claims to the insurer under any primary
      mortgage insurance policies and, in this regard, to take such reasonable action
      as shall be necessary to permit recovery under any primary mortgage insurance
      policies respecting defaulted Mortgage Loans.

     

    SECTION
      4.11. Trustee
      to Retain Possession of Certain Insurance Policies and Documents.

     

    The
      Trustee or the Custodian, shall retain possession and custody of the originals
      (to the extent available) of any primary mortgage insurance policies, or
      certificate of insurance if applicable, and any certificates of renewal as
      to
      the foregoing as may be issued from time to time as contemplated by this
      Agreement. Until all amounts distributable in respect of the Certificates have
      been distributed in full and the Master Servicer and the related Servicer have
      otherwise fulfilled their respective obligations under this Agreement or the
      Servicing Agreement, as applicable, the Trustee or the Custodian shall also
      retain possession and custody of each Mortgage File in accordance with and
      subject to the terms and conditions of this Agreement and the Custodial
      Agreement. The Master Servicer shall promptly deliver or cause to be delivered
      to the Trustee or the Custodian, upon the execution or receipt thereof the
      originals of any primary mortgage insurance policies, any certificates of
      renewal, and such other documents or instruments that constitute Mortgage Loan
      Documents that come into the possession of the Master Servicer from time to
      time.

     

    
      
        
        

      

      
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    SECTION
      4.12. Realization
      Upon Defaulted Mortgage Loans.

     

    The
      Master Servicer shall cause the Servicers to foreclose upon, repossess or
      otherwise comparably convert the ownership of Mortgaged Properties securing
      such
      of the Mortgage Loans as come into and continue in default and as to which
      no
      satisfactory arrangements can be made for collection of delinquent payments,
      all
      in accordance with this Agreement.

     

    SECTION
      4.13. Compensation
      for the Master Servicer.

     

    As
      compensation for the activities of the Master Servicer hereunder, the Master
      Servicer shall be entitled to the Master Servicing Fee and the income from
      investment of or earnings on the funds from time to time in the Distribution
      Account, as provided in Section 3.10. The compensation payable to the
      Master Servicer in respect of any Distribution Date shall be reduced in
      accordance with Section 4.19. The Master Servicer shall be required to pay
      all expenses incurred by it in connection with its activities hereunder and
      shall not be entitled to reimbursement therefor except as provided in this
      Agreement.

     

    SECTION
      4.14. REO
      Property.

     

    (a) In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      Mortgage Loan, the deed or certificate of sale shall be issued to the Trustee,
      or to its nominee, on behalf of the related Certificateholders. The Master
      Servicer shall cause the Servicers to sell, any REO Property as expeditiously
      as
      possible and in accordance with the provisions of this Agreement or the
      Servicing Agreement, as applicable. Further, the Master Servicer shall cause
      the
      Servicers to sell any REO Property prior to three years after the end of the
      calendar year of its acquisition by REMIC I unless (i) the Trustee shall have
      been supplied by the related Servicer with an Opinion of Counsel to the effect
      that the holding by the Trust Fund of such REO Property subsequent to such
      three-year period will not result in the imposition of taxes on “prohibited
      transactions” of any REMIC hereunder as defined in section 860F of the Code or
      cause any REMIC hereunder to fail to qualify as a REMIC at any time that any
      Certificates are outstanding, in which case the Trust Fund may continue to
      hold
      such Mortgaged Property (subject to any conditions contained in such Opinion
      of
      Counsel) or (ii) the related Servicer shall have applied for, prior to the
      expiration of such three-year period, an extension of such three-year period
      in
      the manner contemplated by Section 856(e)(3) of the Code, in which case the
      three-year period shall be extended by the applicable extension period. The
      Master Servicer shall cause the Servicers to protect and conserve, such REO
      Property in the manner and to the extent required by this Agreement or the
      Servicing Agreement, as applicable, in accordance with the REMIC Provisions
      and
      in a manner that does not result in a tax on “net income from foreclosure
      property” or cause such REO Property to fail to qualify as “foreclosure
      property” within the meaning of Section 860G(a)(8) of the Code.

     

    (b) The
      Master Servicer shall cause the Servicers to deposit all funds collected and
      received in connection with the operation of any REO Property in the related
      REO
      Account.

     

    
      
        
        

      

      
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    SECTION
      4.15. Master
      Servicer Annual Statement of Compliance.

     

    (a) The
      Master Servicer and the Securities Administrator shall deliver (or otherwise
      make available) (and the Master Servicer and Securities Administrator shall
      cause any Additional Servicer or Servicing Function Participant engaged by
      it to
      deliver) to the Depositor and the Securities Administrator, and in the case
      of
      the Master Servicer, to the Trustee, on or before March 15 of each year,
      commencing in March 2007, an Officer’s Certificate 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 an Additional
      Servicer or 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 an Additional Servicer or
      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. 

     

    (b) The
      Master Servicer shall include all annual statements of compliance received
      by it
      from the Servicer with its own annual statement of compliance to be submitted
      to
      the Securities Administrator pursuant to this Section.

     

    (c) In
      the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by such parties is terminated, assigns its rights
      and obligations under 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 pursuant to this
      Section 4.15(c) or to such other applicable agreement, as the case may be,
      notwithstanding any such termination, assignment or resignation.

     

    (d) Failure
      of the Master Servicer to comply timely with this Section 4.15 shall be deemed
      a
      Master Servicer Event of Default, automatically, without notice and without
      any
      cure period, and the Trustee may, in addition to whatever rights the Trustee
      may
      have under this Agreement and at law or in equity or to damages, including
      injunctive relief and specific performance, terminate all the rights and
      obligations of the Master Servicer under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Master Servicer
      for the same. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    (e) Copies
      of
      such Master Servicer annual statements of compliance shall be provided to any
      Certificateholder upon request, by the Master Servicer or by the Trustee at
      the
      Master Servicer’s expense if the Master Servicer failed to provide such copies
      (unless (i) the Master Servicer shall have failed to provide the Trustee with
      such statement or (ii) the Trustee shall be unaware of the Master Servicer’s
      failure to provide such statement).

     

    SECTION
      4.16. Master
      Servicer Assessments of Compliance.

     

    (a) By
      March
      15 of each year, commencing in March 2007, the Master Servicer and the
      Securities Administrator, 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 Securities
      Administrator and the Depositor, a report on an assessment of compliance with
      the Relevant Servicing Criteria 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
      5.06(d), 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.
      

     

    
      
        
        

      

      
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    (b) No
      later
      than the end of each fiscal year for the Trust for which a 10-K is required
      to
      be filed, the Master Servicer shall forward to the Securities Administrator
      and
      the Depositor the name of each Servicing Function Participant engaged by it
      and
      what Relevant Servicing Criteria will be addressed in the report on assessment
      of compliance prepared by such Servicing Function Participant (provided,
      however,
      that
      the Master Servicer need not provide such information to the Securities
      Administrator so long as the Master Servicer and the Securities Administer
      are
      the same Person). When the Master Servicer and the Securities Administrator
      (or
      any Servicing Function Participant engaged by them) submit their assessments
      to
      the Securities Administrator, such parties will also at such time include the
      assessment (and attestation pursuant to Section 4.17) of each Servicing Function
      Participant engaged by it. 

     

    (c) 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 and any Servicing Function Participant
      engaged by such parties as to the nature of any material instance of
      noncompliance with the Relevant Servicing Criteria by each such party, and
      (ii)
      the Securities Administrator 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
      E
      and on
      any similar exhibit set forth in each servicing agreement in respect of the
      Servicer and notify the Depositor of any exceptions. 

     

    (d) The
      Master Servicer shall include all annual reports on assessment of compliance
      received by it from the Servicer with its own assessment of compliance to be
      submitted to the Securities Administrator pursuant to this Section.

     

    (e) In
      the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by such parties is terminated, assigns its rights
      and obligations under, 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 a report on assessment of compliance
      pursuant to this Section 4.16(e) or to such other applicable agreement,
      notwithstanding any such termination, assignment or resignation.

     

    (f) Failure
      of the Master Servicer to comply timely with this Section 4.16 shall be deemed
      a
      Master Servicer Event of Default, automatically, without notice and without
      any
      cure period, and the Trustee may, in addition to whatever rights the Trustee
      may
      have under this Agreement and at law or in equity or to damages, including
      injunctive relief and specific performance, terminate all the rights and
      obligations of the Master Servicer under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Master Servicer
      for the same. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    
      
        
        

      

      
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    (g) Delivery
      under this Section 4.16 of such reports, information and documents to the
      Trustee is for informational purposes only, and the Trustee’s receipt of such
      shall not constitute constructive notice of any information contained therein
      or
      determinable from information contained therein, including the Master Servicer’s
      compliance with any of its covenants hereunder (as to which the Trustee is
      entitled to conclusively rely exclusively on an Officer’s
      Certificate).

     

    SECTION
      4.17. Master
      Servicer Attestation Reports.

     

    (a) By
      March
      15 of each year, commencing in March 2007, the Master Servicer and the
      Securities Administrator, 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 Master Servicer, the Securities Administrator,
      or
      such other Servicing Function Participants, as the case may be) and that is
      a
      member of the American Institute of Certified Public Accountants to furnish
      an
      attestation report to the Securities Administrator and the Depositor, to the
      effect that (i) it has obtained a representation regarding certain matters
      from
      the management of such party, which includes an assertion that such party has
      complied with the Relevant Servicing Criteria, and (ii) on the basis of an
      examination conducted by such firm in accordance with standards for attestation
      engagements issued or adopted by the PCAOB, 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. 

     

    (b) Promptly
      after receipt of such assessment of compliance and attestation report from
      the
      Master Servicer, the Securities Administrator or any Servicing Function
      Participant engaged by such parties, the Securities Administrator shall confirm
      that each assessment submitted pursuant to Section 4.16 is coupled with an
      attestation meeting the requirements of this Section and notify the Depositor
      of
      any exceptions. 

     

    (c) The
      Master Servicer shall include each such attestation furnished to it from the
      Servicer with its own attestation to be submitted to the Securities
      Administrator pursuant to this Section.

     

    (d) In
      the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by such parties is terminated, assigns its rights
      and duties under, or resigns pursuant to the terms of this Agreement, or any
      applicable custodial agreement or servicing or sub-servicing agreement in the
      case of a Servicing Function Participant, as the case may be, such party shall
      cause a registered public accounting firm to provide an attestation pursuant
      to
      this Section 4.17 or such other applicable agreement notwithstanding any such
      termination, assignment or resignation.

     

    
      
        
        

      

      
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    (e) Failure
      of the Master Servicer to comply timely with this Section 4.17 shall be deemed
      a
      Master Servicer Event of Default, automatically, without notice and without
      any
      cure period, and the Trustee may, in addition to whatever rights the Trustee
      may
      have under this Agreement and at law or in equity or to damages, including
      injunctive relief and specific performance, terminate all the rights and
      obligations of the Master Servicer under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Master Servicer
      for the same. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    SECTION
      4.18. Annual
      Certification.

     

    Each
      Form
      10-K required to be filed for the Trust pursuant to Section 5.06 shall include
      a
      certification (the “Sarbanes-Oxley
      Certification”)
      required to be included therewith pursuant to the Sarbanes-Oxley Act. Each
      of
      the Master Servicer and the Securities Administrator shall provide, and shall
      cause any Servicing Function Participant engaged by it to, provide to the Person
      who signs the Sarbanes-Oxley Certification (the “Certifying
      Person”),
      by
      March 15 of each year in which the Trust is subject to the reporting
      requirements of the Exchange Act and otherwise within a reasonable period of
      time upon request, a certification (each, a “Back-Up
      Certification”),
      in
      the form attached hereto as Exhibit
      C,
      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 officer of the Master Servicer in charge of the master
      servicing function shall serve as the senior Certifying Person on behalf of
      the
      Trust. Such officer of the Certifying Person can be contacted by e-mail at
      cts.sec.notifications@wellsfargo.com or by facsimile at 410-715-2380. In the
      event any such party or any Servicing Function Participant engaged by such
      party
      is terminated, assigns its rights or duties under, or resigns pursuant to the
      terms of this Agreement, or any applicable sub-servicing agreement, as the
      case
      may be, such party shall provide a Back-Up Certification to the Certifying
      Person pursuant to this Section 4.18 with respect to the period of time it
      was
      subject to this Agreement or any applicable sub-servicing agreement, as the
      case
      may be. Notwithstanding the foregoing, (i) the Master Servicer and the
      Securities Administrator shall not be required to deliver a Back-Up
      Certification to each other if both are the same Person and the Master Servicer
      is the Certifying Person and (ii) the Master Servicer shall not be obligated
      to
      sign the Sarbanes-Oxley Certification in the event that it does not receive
      any
      Back-Up Certification required to be furnished to it pursuant to this section.
      

     

    SECTION
      4.19. Obligation
      of the Master Servicer in Respect of Prepayment Interest
      Shortfalls.

     

    In
      the
      event of any Prepayment Interest Shortfalls, the Master Servicer shall deposit
      into the Distribution Account not later than the related Distribution Date
      an
      amount equal to the lesser of (i) the aggregate amounts required to be paid
      by
      the related Servicer with respect to Prepayment Interest Shortfalls attributable
      to Principal Prepayments in full on the Mortgage Loans for the related
      Distribution Date, and not so paid by such Servicer and (ii) the aggregate
      amount of the compensation payable to the Master Servicer for such Distribution
      Date in accordance with Section 4.13, without reimbursement
      therefor.

     

    
      
        
        

      

      
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    SECTION
      4.20. Prepayment
      Penalty Verification.

     

    On
      or
      prior to each Servicer Remittance Date, Countrywide shall provide in an
      electronic format acceptable to the Master Servicer the data necessary for
      the
      Master Servicer to perform its verification duties set forth in this Section
      4.20. The Master Servicer or a third party reasonably acceptable to the Master
      Servicer and the Depositor (the “Verification Agent”) will perform such
      verification duties and will use its best efforts to issue its findings in
      a
      report (the “Verification Report”) delivered to the Master Servicer and the
      Depositor within ten (10) Business Days following the related Distribution
      Date;
      provided, however, that if the Verification Agent is unable to issue the
      Verification Report within ten (10) Business Days following the Distribution
      Date, the Verification Agent may issue and deliver to the Master Servicer and
      the Depositor the Verification Report upon the completion of its verification
      duties. The Master Servicer shall forward the Verification Report to Countrywide
      and shall notify Countrywide if the Master Servicer has determined that
      Countrywide did not deliver the appropriate Prepayment Charge to the Securities
      Administrator in accordance with this Agreement. Such written notification
      from
      the Master Servicer shall include the loan number, prepayment penalty code
      and
      prepayment penalty amount as calculated by the Master Servicer or the
      Verification Agent, as applicable, of each Mortgage Loan for which there is
      a
      discrepancy. If Countrywide agrees with the verified amounts, Countrywide shall
      adjust the immediately succeeding Servicer Report and the amount remitted to
      the
      Securities Administrator with respect to prepayments accordingly. If Countrywide
      disagrees with the determination of the Master Servicer, Countrywide shall,
      within five (5) Business Days of its receipt of the Verification Report, notify
      the Master Servicer of such disagreement and provide the Master Servicer with
      detailed information to support its position. Countrywide and the Master
      Servicer shall cooperate to resolve any discrepancy on or prior to the
      immediately succeeding Servicer Remittance Date, and Countrywide will indicate
      the effect of such resolution on the Servicer Report and shall adjust the amount
      remitted with respect to prepayments on such Servicer Remittance Date
      accordingly.

     

    During
      such time as Countrywide and the Master Servicer are resolving discrepancies
      with respect to the Prepayment Charges, no payments in respect of any disputed
      Prepayment Charges will be remitted to the Securities Administrator for deposit
      in the Distribution Account and the Master Servicer shall not be obligated
      to
      deposit such payments, unless otherwise required pursuant to Section 8.01
      hereof. In connection with such duties, the Master Servicer shall be able to
      rely solely on the information provided to it by Countrywide in accordance
      with
      this Section. The Master Servicer shall not be responsible for verifying the
      accuracy of any of the information provided to it by Countrywide.

     

    
      
        
        

      

      
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    ARTICLE
      V

     

    PAYMENTS
      TO CERTIFICATEHOLDERS

     

    SECTION
      5.01. Distributions.

     

    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 and distributed to the holders of the Class R Certificates (in respect
      of the Class R-I Interest), as the case may be: 

     

    (a) (1) With
      respect to the Group IA Mortgage Loans:

     

    (i) to
      Holders of REMIC I Regular Interest IA and REMIC I Regular Interest IA-1-A
      through IA-60-B, pro
      rata,
      in an
      amount equal to (A) Uncertificated Interest for such REMIC I Regular Interests
      for such Distribution Date, plus (B) any amounts payable in respect thereof
      remaining unpaid from previous Distribution Dates;

     

    (ii) to
      the
      extent of amounts remaining after the distributions made pursuant to clause
      (i)
      above, to the Holders of REMIC I Regular Interest IA, an amount of principal
      shall be distributed to such Holders until the Uncertificated Balance of REMIC
      I
      Regular Interest IA is reduced to zero; and

     

    (iii) to
      the
      extent of amounts remaining after distributions made pursuant to clauses (i)
      and
      (ii) above, payments of principal shall be allocated to REMIC I Regular
      Interests IA-1-A through IA-60-B starting with the lowest numerical denomination
      until the Uncertificated Balance of each such REMIC I Regular Interest is
      reduced to zero, provided that, for REMIC I Regular Interests with the same
      numerical denomination, such payments of principal shall be allocated
pro
      rata
      between
      such REMIC I Regular Interests.

     

    (2) With
      respect to the Group IB Mortgage Loans:

     

    (i) to
      Holders of REMIC I Regular Interest IB and REMIC I Regular Interest IB-1-A
      through IB-60-B, pro
      rata,
      in an
      amount equal to (A) Uncertificated Interest for such REMIC I Regular Interests
      for such Distribution Date, plus (B) any amounts payable in respect thereof
      remaining unpaid from previous Distribution Dates; and

     

    (ii) to
      the
      extent of amounts remaining after the distributions made pursuant to clause
      (i)
      above, to the Holders of REMIC I Regular Interest IB, an amount of principal
      shall be distributed to such Holders until the Uncertificated Balance of REMIC
      I
      Regular Interest IB is reduced to zero; and

     

    (iii) to
      the
      extent of amounts remaining after distributions made pursuant to clauses (i)
      and
      (ii) above, payments of principal shall be allocated to REMIC I Regular
      Interests IB-1-A through IB-60-B starting with the lowest numerical denomination
      until the Uncertificated Balance of each such REMIC I Regular Interest is
      reduced to zero, provided that, for REMIC I Regular Interests with the same
      numerical denomination, such payments of principal shall be allocated
pro
      rata
      between
      such REMIC I Regular Interests.

     

    
      
        
        

      

      
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    (3) With
      respect to the Group II Mortgage Loans:

     

    (i) to
      Holders of REMIC I Regular Interest II and each of REMIC I Regular Interest
      II-1-A through II-60-B, pro
      rata,
      in an
      amount equal to (A) Uncertificated Interest for such REMIC I Regular Interests
      for such Distribution Date, plus (B) any amounts payable in respect thereof
      remaining unpaid from previous Distribution Dates; 

     

    (ii) to
      the
      extent of amounts remaining after the distributions made pursuant to clause
      (i)
      above, to the Holders of REMIC I Regular Interest II, an amount of principal
      shall be distributed to such Holders until the Uncertificated Balance of REMIC
      I
      Regular Interest II is reduced to zero; and 

     

    (iii) to
      the
      extent of amounts remaining after distributions made pursuant to clauses (i)
      and
      (ii) above, payments of principal shall be allocated to REMIC I Regular
      Interests II-1-A through II-60-B starting with the lowest numerical denomination
      until the Uncertificated Balance of each such REMIC I Regular Interest is
      reduced to zero, provided that, for REMIC I Regular Interests with the same
      numerical denomination, such payments of principal shall be allocated
pro
      rata
      between
      such REMIC I Regular Interests.

     

    (b) to
      the
      Holders of REMIC I Regular Interest IA-60-B, all amounts representing Prepayment
      Charges in respect of the Group IA Mortgage Loans received during the related
      Prepayment Period, to the Holders of REMIC I Regular Interest IB-60-B, all
      amounts representing Prepayment Charges in respect of the Group IB Mortgage
      Loans received during the related Prepayment Period and to the Holders of REMIC
      I Regular Interest II-60-B, all amounts representing Prepayment Charges in
      respect of the Group II Mortgage Loans received during the related Prepayment
      Period.

     

    (c) 
      (1) On
      each Distribution Date, the following amounts, in the following order of
      priority, shall be distributed by REMIC II to REMIC III on account of the REMIC
      II Regular Interests or withdrawn from the Distribution Account and distributed
      to the Holders of the Class R Certificates (in respect of the Class R-II
      Interest), as the case may be:

     

    (i) first
      to
      the Holders of REMIC II Regular Interest IO, in an amount equal to (A)
      Uncertificated Interest for such REMIC II Regular Interest for such Distribution
      Date, plus (B) any amounts in respect thereof remaining unpaid from previous
      Distribution Dates and second, to the Holders of REMIC II Regular Interest
      AA,
      REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B, REMIC II Regular
      Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C,
      REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular
      Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4,
      REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular
      Interest M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest M-9,
      REMIC II Regular Interest M-10, REMIC II Regular Interest M-11, REMIC II Regular
      Interest ZZ and REMIC II Regular Interest P, pro
      rata,
      in an
      amount equal to (A) the Uncertificated 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 II Regular
      Interest ZZ shall be reduced when the REMIC II Overcollateralization Amount
      is
      less than the REMIC II Required Overcollateralization Amount, by the lesser
      of
      (x) the amount of such difference and (y) the Maximum ZZ Uncertificated Interest
      Deferral Amount and such amount will be payable to the Holders of REMIC II
      Regular Interest A-1A, REMIC II Regular Interest A-1B, REMIC II Regular Interest
      A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC
      II
      Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest
      M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II
      Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest
      M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest M-9, REMIC II
      Regular Interest M-10 and REMIC II Regular Interest M-11 in the same proportion
      as the Overcollateralization Increase Amount is allocated to the Corresponding
      Certificates and the Uncertificated Balance of REMIC II Regular Interest ZZ
      shall be increased by such amount;

     

    
      
        
        

      

      
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    (ii) to
      Holders of REMIC II Regular Interest IA-SUB, REMIC II Regular Interest IA-GRP,
      REMIC II Regular Interest IB-SUB, REMIC II Regular Interest IB-GRP, REMIC II
      Regular Interest II-SUB, REMIC II Regular Interest II-GRP, and REMIC II Regular
      Interest XX, pro
      rata,
      in an
      amount equal to (A) the Uncertificated Interest for such Distribution Date,
      plus
      (B) any amounts in respect thereof remaining unpaid from previous Distribution
      Dates;

     

    (iii) to
      the
      Holders of REMIC II Regular Interests, in an amount equal to the remainder
      of
      the REMIC II Marker Allocation Percentage of the available funds for such
      Distribution Date after the distributions made pursuant to clause (i) above,
      allocated as follows:

     

    (A) 98.00%
      of
      such remainder to the Holders of REMIC II Regular Interest AA, until the
      Uncertificated Balance of such REMIC II Regular Interest is reduced to
      zero;

     

    (B) 2.00%
      of
      such remainder, first, to the Holders of REMIC II Regular Interest A-1A, REMIC
      II Regular Interest A-1B, REMIC II Regular Interest A-2A, REMIC II Regular
      Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D,
      REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular
      Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5,
      REMIC II Regular Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular
      Interest M-8, REMIC II Regular Interest M-9, REMIC II Regular Interest M-10
      and
      REMIC II Regular Interest M-11, 1% of and in the same proportion as principal
      payments are allocated to the Corresponding Certificates, until the
      Uncertificated Balances of such REMIC II Regular Interests are reduced to zero
      and second to the Holders of REMIC II Regular Interest ZZ, until the
      Uncertificated Balance of such REMIC II Regular Interest is reduced to
      zero;

     

    
      
        
        

      

      
        168

        
          

        

      

      
        
        

      

    

     

    (C) to
      the
      Holders of REMIC II Regular Interest P, (1) 100% of the Prepayment Charges
      deemed distributed on REMIC I Regular Interest IA-60-B, REMIC I Regular Interest
      IB-60-B and REMIC I Regular Interest II-60-B and (2) 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; then

     

    (D) any
      remaining amount to the Holders of the Class R Certificate, in respect of the
      Class R-II 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
      II
      Regular Interest AA and REMIC II Regular Interest ZZ, respectively.

     

    (iv) to
      the
      Holders of REMIC II Regular Interests, in an amount equal to the remainder
      of
      the REMIC II Sub WAC Allocation Percentage of available funds for such
      Distribution Date after the distributions made pursuant to clause (c)(ii) above,
      such that distributions of principal shall be deemed to be made to the REMIC
      II
      Regular Interests first, so as to keep the Uncertificated Balance of each REMIC
      II Regular Interest ending with the designation “GRP” equal to 0.01% of the
      aggregate Stated Principal Balance of the Mortgage Loans in the related loan
      group; second, to each REMIC II Regular Interest ending with the designation
      “SUB,” so that the Uncertificated Balance of each such REMIC II Regular Interest
      is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance
      of
      the Mortgage Loans in the related loan group over (y) the current Certificate
      Principal Balance of the Class A Certificate in the related loan group (except
      that if any such excess is a larger number than in the preceding distribution
      period, the least amount of principal shall be distributed to such REMIC II
      Regular Interests such that the REMIC II Subordinated Balance Ratio is
      maintained); and third, any remaining principal to REMIC II Regular Interest
      XX.

     

    (v) Notwithstanding
      the distributions described in Section 5.01(c)(1), distributions of funds shall
      be made to Certificateholders only in accordance with Section 5.01(c)(2) through
      (8) and Section 5.01(e).

     

    (2) On
      each
      Distribution Date, the Securities Administrator shall withdraw from the
      Distribution Account to the extent on deposit therein an amount equal to the
      Group IA Interest Remittance Amount and make the following disbursements and
      transfers in the order of priority described below, in each case to the extent
      of the Group IA Interest Remittance Amount remaining for such Distribution
      Date:

     

    first,
      to the
      Supplemental Interest Trust, an amount equal to the Group IA Allocation
      Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any
      Swap Termination Payment owed to the Swap Provider not due to a Swap Provider
      Trigger Event (to the extent such amount has not been paid by the Securities
      Administrator from any upfront payment received pursuant to any related
      replacement interest rate swap agreement that may be entered into by the Trustee
      on behalf of the Supplemental Interest Trust);

     

    
      
        
        

      

      
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    second,
      to the
      Holders of the Class A-1A Certificates, the Senior Interest Distribution Amount
      allocable to the Class A-1A Certificates; and

     

    third,
      concurrently, to the Holders of the Class A-1B, Class A-2A, Class A-2B, Class
      A-2C and Class A-2D Certificates, the Senior Interest Distribution Amount
      allocable to each such Class, to the extent remaining unpaid after the
      distribution of the Group IB Interest Remittance Amount as set forth in Section
      5.01(c)(3) below and to the extent remaining unpaid after the distribution
      of
      the Group II Interest Remittance Amount as set forth in Section 5.01(c)(4)
      below, on a pro rata basis, based on the entitlement of each such
      Class.

     

    (3) On
      each
      Distribution Date, the Securities Administrator shall withdraw from the
      Distribution Account to the extent on deposit therein an amount equal to the
      Group IB Interest Remittance Amount and make the following disbursements and
      transfers in the order of priority described below, in each case to the extent
      of the Group IB Interest Remittance Amount remaining for such Distribution
      Date:

     

    first,
      to the
      Supplemental Interest Trust, an amount equal to the Group IB Allocation
      Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any
      Swap Termination Payment owed to the Swap Provider not due to a Swap Provider
      Trigger Event (to the extent such amount has not been paid by the Securities
      Administrator from any upfront payment received pursuant to any related
      replacement interest rate swap agreement that may be entered into by the Trustee
      on behalf of the Supplemental Interest Trust);

     

    second,
      to the
      Holders of the Class A-1B Certificates, the Senior Interest Distribution Amount
      allocable to the Class A-1B Certificates; and

     

    third,
      concurrently, to the Holders of the Class A-1A, Class A-2A, Class A-2B, Class
      A-2C and Class A-2D Certificates, the Senior Interest Distribution Amount
      allocable to each such Class, to the extent remaining unpaid after the
      distribution of the Group IA Interest Remittance Amount as set forth in Section
      5.01(c)(2) above and to the extent remaining unpaid after the distribution
      of
      the Group II Interest Remittance Amount as set forth in Section 5.01(c)(4)
      below, on a pro rata basis, based on the entitlement of each such
      Class.

     

    (4) On
      each
      Distribution Date, the Securities Administrator shall withdraw from the
      Distribution Account to the extent on deposit therein an amount equal to the
      Group II Interest Remittance Amount and make the following disbursements and
      transfers in the order of priority described below, in each case to the extent
      of the Group II Interest Remittance Amount remaining for such Distribution
      Date:

     

    
      
        
        

      

      
        170

        
          

        

      

      
        
        

      

    

     

    first,
      to the
      Supplemental Interest Trust, an amount equal to the Group II Allocation
      Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any
      Swap Termination Payment owed to the Swap Provider not due to a Swap Provider
      Trigger Event (to the extent such amount has not been paid by the Securities
      Administrator from any upfront payment received pursuant to any related
      replacement interest rate swap agreement that may be entered into by the Trustee
      on behalf of the Supplemental Interest Trust);

     

    second,
      concurrently, to the Holders of the Class A-2A, Class A-2B, Class A-2C and
      Class
      A-2D Certificates, the Senior Interest Distribution Amount allocable to each
      such Class, on a pro rata basis, based on the entitlement of each such Class;
      and

     

    third,
      to the
      Holders of the Class A-1A Certificates and Class A-1B Certificates, the Senior
      Interest Distribution Amount allocable to each such Class, to the extent
      remaining unpaid after the distribution of the Group IA Interest Remittance
      Amount as set forth in Section 5.01(c)(2) above and to the extent remaining
      unpaid after the distribution of the Group IB Interest Remittance Amount as
      set
      forth in Section 5.01(c)(3) above, on a pro rata basis, based on the entitlement
      of each such Class.

     

    (5) On
      each
      Distribution Date, the Securities Administrator shall withdraw from the
      Distribution Account to the extent on deposit therein an amount equal to the
      Group IA Interest Remittance Amount, the Group IB Interest Remittance Amount
      and
      the Group II Interest Remittance Amount remaining after the distributions
      required by clauses (2), (3) and (4) above and make the following disbursements
      and transfers in the order of priority described below, in each case to the
      extent of the Group IA Interest Remittance Amount, the Group IB Interest
      Remittance Amount and Group II Interest Remittance Amount remaining for such
      Distribution Date:

     

    sequentially,
      to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
      Certificates, in that order, to the extent of the Interest Distribution Amount
      allocable to each such Class.

     

    (6) On
      each
      Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger
      Event
      is in effect, the Securities Administrator shall withdraw from the Distribution
      Account to the extent on deposit therein an amount equal to the Group IA
      Principal Distribution Amount, Group IB Principal Distribution Amount and Group
      II Principal Distribution Amount and distribute to the Certificateholders the
      following amounts, in the following order of priority:

     

    (i) The
      Group
      IA Principal Distribution Amount shall be distributed in the following order
      of
      priority:

     

    first,
      to the
      Supplemental Interest Trust, an amount equal to the Group IA Allocation
      Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any
      Swap Termination Payment owed to the Swap Provider not due to a Swap Provider
      Trigger Event to the extent not paid from the Interest Remittance Amount on
      such
      Distribution Date;

     

    
      
        
        

      

      
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    second,
      to the
      Holders of the Class A-1A Certificates, until the Certificate Principal Balance
      of the Class A-1A Certificates has been reduced to zero; and

     

    third,
      concurrently, (i) to the Holders of the Class A-1B Certificates and (ii) to
      the
      Holders of the Class A-2 Certificates, after taking into account the
      distribution of the Group IB Principal Distribution Amount as described in
      Section 5.01(c)(6)(ii) below and the Group II Principal Distribution Amount
      as
      described in Section 5.01(c)(6)(iii) below, on a pro rata basis, based on the
      Certificate Principal Balance of each such Class, until the Certificate
      Principal Balance of each such Class has been reduced to zero; provided, however
      that the pro rata allocation to the Class A-2 Certificates pursuant to this
      clause third shall be based on the total Certificate Principal Balance of the
      Class A-2 Certificates, but shall be distributed sequentially to the Class
      A-2A,
      Class A-2B, Class A-2C and Class A-2D Certificates, in that order, until the
      Certificate Principal Balance of each such Class has been reduced to
      zero.

     

    (ii) The
      Group
      IB Principal Distribution Amount shall be distributed in the following order
      of
      priority:

     

    first,
      to the
      Supplemental Interest Trust, an amount equal to the Group IB Allocation
      Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any
      Swap Termination Payment owed to the Swap Provider not due to a Swap Provider
      Trigger Event to the extent not paid from the Interest Remittance Amount on
      such
      Distribution Date;

     

    second,
      to the
      Holders of the Class A-1B Certificates until the Certificate Principal Balance
      of the Class A-1B Certificates has been reduced to zero; and

     

    third,
      concurrently, (i) to the Holders of the Class A-1A Certificates and (ii) to
      the
      Holders of the Class A-2 Certificates, after taking into account the
      distribution of the Group IA Principal Distribution Amount as described in
      Section 5.01(c)(6)(i) above and the Group II Principal Distribution Amount
      as
      described in Section 5.01(c)(6)(iii) below, on a pro rata basis, based on the
      Certificate Principal Balance of each such Class, until the Certificate
      Principal Balance of each such Class has been reduced to zero; provided, however
      that the pro rata allocation to the Class A-2 Certificates pursuant to this
      clause third shall be based on the total Certificate Principal Balance of the
      Class A-2 Certificates, but shall be distributed sequentially to the Class
      A-2A,
      Class A-2B, Class A-2C and Class A-2D Certificates, in that order, until the
      Certificate Principal Balance of each such Class has been reduced to
      zero.

     

    
      
        
        

      

      
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    (iii) The
      Group
      II Principal Distribution Amount shall be distributed in the following order
      of
      priority:

     

    first,
      to the
      Supplemental Interest Trust, an amount equal to the Group II Allocation
      Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any
      Swap Termination Payment owed to the Swap Provider not due to a Swap Provider
      Trigger Event to the extent not paid from the Interest Remittance Amount on
      such
      Distribution Date;

     

    second,
      sequentially, to the Holders of the Class A-2A Class A-2B, Class A-2C and Class
      A-2D Certificates, in that order, until the Certificate Principal Balance of
      each such Class has been reduced to zero; and

     

    third,
      concurrently, (i) to the Holders of the Class A-1A Certificates and (ii) to
      the
      Holders of the Class A-1B Certificates after taking into account the
      distribution of the Group IA Principal Distribution Amount as described in
      Section 5.01(c)(6)(i) above and the Group IB Principal Distribution Amount
      as
      described in Section 5.01(c)(6)(ii) above, on a pro rata basis based on the
      Certificate Principal Balance of each such Class, until the Certificate
      Principal Balance of each such Class has been reduced to zero.

     

    (iv) The
      Group
      IA Principal Distribution Amount, Group IB Principal Distribution Amount and
      Group II Principal Distribution Amount remaining after distributions pursuant
      to
      Sections 5.01(c)(6)(i), (ii) and (iii) above shall be distributed in the
      following order of priority:

     

    sequentially,
      to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
      Certificates, in that order, until the Certificate Principal Balance of each
      such Class has been reduced to zero.

     

    (7) On
      each
      Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger
      Event is not in effect, the Securities Administrator shall withdraw from the
      Distribution Account to the extent on deposit therein an amount equal to the
      Group IA Principal Distribution Amount, Group IB Principal Distribution Amount
      and Group II Principal Distribution Amount and distribute to the
      Certificateholders the following amounts, in the following order of
      priority:

     

    (i) The
      Group
      IA Principal Distribution Amount shall be distributed in the following order
      of
      priority:

     

    first,
      to the
      Supplemental Interest Trust, an amount equal to the Group IA Allocation
      Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any
      Swap Termination Payment owed to the Swap Provider not due to a Swap Provider
      Trigger Event to the extent not paid from the Interest Remittance Amount on
      such
      Distribution Date;

     

    
      
        
        

      

      
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    second,
      to the
      Holders of the Class A-1A Certificates, the Class A-1A Principal Distribution
      Amount, until the Certificate Principal Balance of such Class has been reduced
      to zero; and

     

    third,
      concurrently, (i) to the Holders of the Class A-1B Certificates and (ii) to
      the
      Holders of the Class A-2 Certificates, after taking into account the
      distribution of the Group IB Principal Distribution Amount on such Distribution
      Date pursuant to Section 5.01(c)(7)(ii) below and the Group II Principal
      Distribution Amount pursuant to Section 5.01(c)(7)(iii) below on such
      Distribution Date, on a pro rata basis based on the amount required to satisfy
      the Targeted Credit Enhancement Test with respect to Class A-1B Certificates
      on
      the one hand and the Class A-2 Certificates on the other; provided, however
      that
      the distribution to the Class A-2 Certificates pursuant to this clause third
      shall be made on a sequential basis to the Class A-2A, Class A-2B, Class A-2C
      and Class A-2D Certificates, in that order.

     

    (ii) The
      Group
      IB Principal Distribution Amount shall be distributed in the following order
      of
      priority:

     

    first,
      to the
      Supplemental Interest Trust, an amount equal to the Group IB Allocation
      Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any
      Swap Termination Payment owed to the Swap Provider not due to a Swap Provider
      Trigger Event to the extent not paid from the Interest Remittance Amount on
      such
      Distribution Date;

     

    second,
      to the
      Holders of the Class A-1B Certificates, the Class A-1B Principal Distribution
      Amount until the Certificate Principal Balance of the Class A-1B Certificates
      has been reduced to zero; and

     

    third,
      concurrently, (i) to the Holders of the Class A-1A Certificates and (ii) to
      the
      Holders of the Class A-2 Certificates, after taking into account the
      distribution of the Group IA Principal Distribution Amount on such Distribution
      Date pursuant to Section 5.01(c)(7)(i) above and the Group II Principal
      Distribution Amount on such Distribution Date pursuant to Section
      5.01(c)(7)(iii) below, on a pro rata basis based on the amount required to
      satisfy the Targeted Credit Enhancement Test with respect to Class A-1A
      Certificates on the one hand and the Class A-2 Certificates on the other;
      provided, however that the distribution to the Class A-2 Certificates pursuant
      to this clause third shall be made on a sequential basis to the Class A-2A,
      Class A-2B, Class A-2C and Class A-2D Certificates, in that order.

     

    (iii) The
      Group
      II Principal Distribution Amount shall be distributed in the following order
      of
      priority:

     

    first,
      to the
      Supplemental Interest Trust, an amount equal to the Group II Allocation
      Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any
      Swap Termination Payment owed to the Swap Provider not due to a Swap Provider
      Trigger Event to the extent not paid from the Interest Remittance Amount on
      such
      Distribution Date;

     

    
      
        
        

      

      
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    second,
      sequentially, to the Holders of the Class A-2A, Class A-2B, Class A-2C and
      Class
      A-2D Certificates, in that order, the Class A-2 Principal Distribution Amount,
      until the Certificate Principal Balance of each such Class has been reduced
      to
      zero; and

     

    third,
      concurrently, (i) to the Holders of the Class A-1A Certificates and (ii) to
      the
      Holders of the Class A-1B Certificates, after taking into account the
      distribution of the Group IA Principal Distribution Amount on such Distribution
      Date pursuant to Section 5.01(c)(7)(i) above and the Group IB Principal
      Distribution Amount on such Distribution Date pursuant to Section 5.01(c)(7)(ii)
      above, on a pro rata basis based on the amount required to satisfy the Target
      Credit Enhancement Test with respect to the A-1A Certificates on the one hand
      and the Class A-1B Certificates on the other.

     

    (iv) The
      Principal Distribution Amount remaining after distributions pursuant to Sections
      5.01(c)(7)(i), (ii) and (iii) above shall be distributed in the following order
      of priority:

     

    first,
      sequentially, to the Holders of the Class M-1, Class M-2 and Class M-3
      Certificates, the lesser of (x) the remaining Principal Distribution Amount
      and
      (y) the Class M-1/M-2/M-3 Principal Distribution Amount, in each case, until
      the
      Certificate Principal Balance of each such Class has been reduced to
      zero;

     

    second,
      to the
      Holders of the Class M-4 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1, Class M-2 and M-3 Certificates
      under clause first
      above
      and (y) the Class M-4 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-4 Certificates has been reduced to
      zero;

     

    third,
      to the
      Holders of the Class M-5 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1 Certificates and Class M-2
      Certificates under clause first above, to the Holders of the Class M-3
      Certificates under clause second above and to the Holders of the Class M-4
      Certificates under clause third
      above,
      and (y) the Class M-5 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-5 Certificates has been reduced to
      zero;

     

    fourth,
      to the
      Holders of the Class M-6 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1, Class M-2 and Class M-3
      Certificates under clause first
      above,
      to the Holders of the Class M-4 Certificates under clause second
      above
      and to the Holders of the Class M-5 Certificates under clause third
      above,
      and (y) the Class M-6 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-6 Certificates has been reduced to zero;

     

    
      
        
        

      

      
        175

        
          

        

      

      
        
        

      

    

     

    fifth,
      to the
      Holders of the Class M-7 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1, Class M-2, Class M-3 Certificates
      under clause first
      above,
      to the Holders of the Class M-4 Certificates under clause second
      above,
      to the Holders of the Class M-5 Certificates under clause third
      above
      and to the Holders of the Class M-6 Certificates under clause fourth
      above,
      and (y) the Class M-7 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-7 Certificates has been reduced to
      zero;

     

    sixth,
      to the
      Holders of the Class M-8 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1, Class M-2 and Class M-3
      Certificates under clause first
      above,
      to the Holders of the Class M-4 Certificates under clause second
      above,
      to the Holders of the Class M-5 Certificates under clause third
      above,
      to the Holders of the Class M-6 Certificates under clause fourth
      above
      and to the Holders of the Class M-7 Certificates under clause fifth,
      and (y)
      the Class M-8 Principal Distribution Amount, until the Certificate Principal
      Balance of the Class M-8 Certificates has been reduced to zero; 

     

    seventh,
      to the
      Holders of the Class M-9 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1, Class M-2 and Class M-3
      Certificates under clause first
      above,
      to the Holders of the Class M-4 Certificates under clause second
      above,
      to the Holders of the Class M-5 Certificates under clause third
      above,
      to the Holders of the Class M-6 Certificates under clause fourth
      above,
      to the Holders of the Class M-7 Certificates under clause fifth
      above
      and to the Holders of the Class M-8 Certificates under clause sixth
      above,
      and (y) the Class M-9 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-9 Certificates has been reduced to
      zero;

     

    eighth,
      to the
      Holders of the Class M-10 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1, Class M-2 and Class M-3
      Certificates under clause first
      above,
      to the Holders of the Class M-4 Certificates under clause second
      above,
      to the Holders of the Class M-5 Certificates under clause third
      above,
      to the Holders of the Class M-6 Certificates under clause fourth
      above,
      to the Holders of the Class M-7 Certificates under clause fifth
      above,
      to the Holders of the Class M-8 Certificates under clause sixth
      above
      and to the Holders of the Class M-9 Certificates under clause seventh
      above,
      and (y) the Class M-10 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-10 Certificates has been reduced to zero;
      and

     

    ninth,
      to the
      Holders of the Class M-11 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1, Class M-2, Class M-3 Certificates
      under clause first
      above,
      to the Holders of the Class M-4 Certificates under clause second
      above,
      to the Holders of the Class M-5 Certificates under clause third
      above,
      to the Holders of the Class M-6 Certificates under clause fourth
      above,
      to the Holders of the Class M-7 Certificates under clause fifth
      above,
      to the Holders of the Class M-8 Certificates under clause sixth
      above,
      to the Holders of the Class M-9 Certificates under clause seventh
      above
      and to the Holders of the Class M-10 Certificates under clause eighth
      above
      and, and (y) the Class M-11 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-11 Certificates has been reduced to zero.
      

     

    
      
        
        

      

      
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    Notwithstanding
      the priority of distributions described in this Section 5.01(c) with respect
      to
      the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, on any
      Distribution Date which occurs after the Certificate Principal Balances of
      the
      Mezzanine Certificates have been reduced to zero, distributions in respect
      of
      principal to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates
      will be made on a pro rata basis, based on the Certificate Principal Balance
      of
      each such Class, until the Certificate Principal Balance of each such Class
      has
      been reduced to zero.

     

    (8) On
      each
      Distribution Date, the Net Monthly Excess Cashflow (or, in the case of clause
      (i) below, the Net Monthly Excess Cashflow exclusive of any
      Overcollateralization Reduction Amount) shall be distributed as
      follows:

     

    (i) to
      the
      Holders of the Class or Classes of Certificates then entitled to receive
      distributions in respect of principal, in an amount equal to the
      Overcollateralization Increase Amount, payable as part of the Principal
      Distribution Amount;

     

    (ii) sequentially,
      to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
      Certificates, in that order, in an amount equal to the Interest Carry Forward
      Amount allocable to each such Class;

     

    (iii) sequentially,
      to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
      Certificates, in that order, in an amount equal to the Allocated Realized Loss
      Amount allocable to each such Class;

     

    (iv) concurrently,
      to the Holders of the Class A Certificates, in an amount equal to such
      Certificates’ allocated share of any Prepayment Interest Shortfalls on the
      Mortgage Loans to the extent not covered by payments pursuant to Section 3.22
      or
      4.19 of this Agreement or pursuant to corresponding sections of the Servicing
      Agreement and any shortfalls resulting from the application of the Relief Act
      or
      similar state or local law or the bankruptcy code with respect to the Mortgage
      Loans to the extent not previously reimbursed pursuant to Section
      1.02;

     

    (v) sequentially,
      to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
      Certificates, in that order, in an amount equal to such certificates’ share of
      any Prepayment Interest Shortfalls on the Mortgage Loans to the extent not
      covered by payments pursuant to Sections 3.22 or Section 4.19 of this Agreement
      or pursuant to corresponding sections of the Servicing Agreement and any Relief
      Act Interest Shortfall, in each case that were allocated to such Class for
      such
      Distribution Date and for any prior Distribution Date, to the extent not
      previously reimbursed pursuant to Section 1.02;

     

    
      
        
        

      

      
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    (vi) to
      the
      Reserve Fund, the amount by which the Net WAC Rate Carryover Amounts, if any,
      with respect to the Class A Certificate and Mezzanine Certificates exceeds
      any
      amount in the Reserve Fund that was not distributed on prior Distribution
      Dates;

     

    (vii) to
      the
      Supplemental Interest Trust, an amount equal to any Swap Termination Payment
      owed to the Swap Provider due to a Swap Provider Trigger Event pursuant to
      the
      Swap Agreement (to the extent such amount has not been paid by the Securities
      Administrator from any upfront payment received pursuant to any related
      replacement interest rate swap agreement that may be entered into by the Trustee
      on behalf of the Supplemental Interest Trust); 

     

    (viii) to
      the
      Holders of the Class CE Certificates the Interest Distribution Amount and any
      Overcollateralization Reduction Amount for such Distribution Date;
      and

     

    (ix) to
      the
      Holders of the Class R Certificates, in respect of the Class R-III Interest,
      any
      remaining amounts; provided that if such Distribution Date is the Distribution
      Date immediately following the expiration of the latest Prepayment Charge term
      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.

     

    The
      Class
      CE Certificates are intended to receive all principal and interest received
      by
      the Trust on the Mortgage Loans that is not otherwise distributable to any
      other
      Class of Regular Certificates or REMIC Regular Interests. If the Securities
      Administrator determines that the Residual Certificates are entitled to any
      distributions on any Distribution Date other than the final Distribution Date,
      the Securities Administrator, prior to any such distribution to any Residual
      Certificate, shall notify the Depositor of such impending distribution. Upon
      such notification, the Depositor will prepare and request that the other parties
      hereto enter into an amendment to the Pooling and Servicing Agreement pursuant
      to Section 12.01, to revise such mistake in the distribution
      provisions.

     

    With
      respect to any amounts deposited in the Reserve Fund from the Net Monthly Excess
      Cashflow under Section 5.01(c)(8)(vi) above, first, concurrently, (i) to the
      Holders of the Class A-1A Certificates, the related Net WAC Rate Carryover
      Amount remaining unpaid for such Distribution Date, (ii) (i) to the Holders
      of
      the Class A-1B Certificates, the related Net WAC Rate Carryover Amount remaining
      unpaid for such Distribution Date and (iii) to the Holders of the Class A-2A,
      Class A-2B, Class A-2C and Class A-2D Certificates, the related Net WAC Rate
      Carryover Amount remaining unpaid for such Distribution Date, on a pro rata
      basis, based on the entitlement of each such Class; second, 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 and Class M-11 Certificates, in that
      order, in respect of the related Net WAC Rate Carryover Amount remaining unpaid
      for each such Class for such Distribution Date and third to the Class CE
      Certificates.

     

    
      
        
        

      

      
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    (d) As
      described in Section 5.01(c)(2), (3), (4), (6) and (7) above, Net Swap Payments
      and Swap Termination Payments (other than Swap Termination Payments resulting
      from a Swap Provider Trigger Event) payable by the Supplemental Interest Trust
      to the Swap Provider pursuant to the Swap Agreement (to the extent not paid
      by
      the Securities Administrator from any upfront payment received pursuant to
      any
      replacement interest rate swap agreement that may be entered into by the
      Supplemental Interest Trust Trustee) shall be deducted from the Interest
      Remittance Amount, and to the extent of any such remaining amounts due, from
      the
      Principal Remittance Amount, prior to any distributions to the
      Certificateholders. Any Swap Termination Payment triggered by a Swap Provider
      Trigger Event owed to the Swap Provider pursuant to the Swap Agreement will
      be
      subordinated to distributions to the Holders of the Offered Certificates and
      shall be paid pursuant to Section 5.01(c)(8)(vii).

     

    (e) On
      each
      Distribution Date commencing on the Distribution Date, to the extent required,
      following the distribution of the Net Monthly Excess Cashflow and withdrawals
      from the Reserve Fund, any Net Swap Payments payable to the Securities
      Administrator on behalf of the Supplemental Interest Trust by the Swap Provider
      will be distributed on the related Distribution Date in the following order
      of
      priority: 

     

    (i) first,
      concurrently, to each Class of Class A Certificates, the related Senior Interest
      Distribution Amount remaining undistributed after the distributions of the
      Group
      IA Interest Remittance Amount, the Group IB Interest Remittance Amount and
      the
      Group II Interest Remittance Amount, on a pro rata basis based on such
      respective remaining Senior Interest Distribution Amounts;

     

    (ii) second,
      sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
      Certificates, in that order, the related Interest Distribution Amount and
      Interest Carry Forward Amount, to the extent remaining undistributed after
      the
      distributions of the Group IA Interest Remittance Amount, the Group IB Interest
      Remittance Amount, the Group II Interest Remittance Amount and the Net Monthly
      Excess Cashflow;

     

    (iii) third,
      to the
      Holders of the Class or Classes of Certificates then entitled to receive
      distributions in respect of principal, in an amount necessary to maintain the
      Required Overcollateralization Amount after taking into account distributions
      made pursuant to Section 5.01(c)(8)(i) above;

     

    (iv) fourth,
      sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class
      M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11 Certificates,
      in
      that order, in each case up to the related Allocated Realized Loss Amount
      related to such Certificates for such Distribution Date remaining undistributed
      after distribution of the Net Monthly Excess Cashflow;

     

    
      
        
        

      

      
        179

        
          

        

      

      
        
        

      

    

     

    (v) fifth,
      concurrently, to each class of Class A Certificates, the related Net WAC Rate
      Carryover Amount, to the extent remaining undistributed after distributions
      of
      Net Monthly Excess Cashflow on deposit in the Reserve Fund, on a pro rata basis
      based on such respective Net WAC Rate Carryover Amounts remaining
      unpaid;

     

    (vi) sixth,
      sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
      Certificates, in that order, the related Net WAC Rate Carryover Amount, to
      the
      extent remaining undistributed after distributions are made from the Reserve
      Fund;

     

    (vii) seventh,
      to the
      Swap Provider, an amount equal to any Swap Termination Payment owed to the
      Swap
      Provider due to a Swap Provider Trigger Event pursuant to the Swap Agreement
      (to
      the extent such amount has not been paid by the Securities Administrator from
      any upfront payment received pursuant to any related replacement interest rate
      swap agreement that may be entered into by the Trustee on behalf of the
      Supplemental Interest Trust); and

     

    (viii) eighth,
      to the
      Class CE Certificates, any remaining amounts.

     

    (f) On
      each
      Distribution Date, the Securities Administrator shall withdraw any amounts
      then
      on deposit in the Distribution Account that represent Prepayment Charges and
      shall distribute such amounts to the Class P Certificateholders as described
      above.

     

    (g) 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 will be made
      to
      the Holders of the respective Class of record on the related Record Date (except
      as otherwise provided in Section 5.01(i) or Section 10.01 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 have
      so notified the Securities Administrator in writing at least five (5) Business
      Days prior to the Record Date immediately prior to such Distribution Date and
      is
      the registered owner of Certificates having an initial aggregate Certificate
      Principal Balance that is in excess of the lesser of (i) $5,000,000 or (ii)
      two-thirds of the initial Certificate Principal Balance of such Class of
      Certificates, 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 will be made in like manner, but only upon presentment and
      surrender of such Certificate at the Corporate Trust Office of the Securities
      Administrator or such other location specified in the notice to
      Certificateholders of such final distribution.

     

    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, the Servicer, the Securities Administrator or the Master Servicer
      shall have any responsibility therefor except as otherwise provided by this
      Agreement or applicable law.

     

    
      
        
        

      

      
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    (h) 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, the Servicer, the Securities Administrator or the
      Master 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.

     

    (i) Except
      as
      otherwise provided in Section 10.01, whenever the Securities Administrator
      expects that the final distribution with respect to any Class of Certificates
      will be made on the next Distribution Date, the Securities Administrator shall,
      no later than three (3) days before the related Distribution Date, mail to
      each
      Holder on such date of such Class of Certificates a notice to the effect
      that:

     

    
      	 	
              (i)

            	
              the
                Securities Administrator 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 Securities Administrator 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
      Securities Administrator 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 5.01(i) shall not have been surrendered for
      cancellation within six months after the time specified in such notice, the
      Securities Administrator 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 Securities Administrator shall, directly
      or through an agent, mail a final notice to the remaining non-tendering
      Certificateholders concerning surrender of their Certificates but 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 remaining in such trust
      fund.
      If within one year after the final notice any such Certificates shall not have
      been surrendered for cancellation, the Securities Administrator shall pay to
      the
      Depositor 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 Securities
      Administrator as a result of such Certificateholder’s failure to surrender its
      Certificate(s) on the final Distribution Date for final payment thereof in
      accordance with this Section 5.01(i). Any such amounts held in trust by the
      Securities Administrator shall be held uninvested in an Eligible
      Account.

     

    
      
        
        

      

      
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    (j) 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 both (a) allocated to such Certificate
      in respect of Realized Losses pursuant to Section 5.04 and (b) distributed
      to
      the Holder of such Certificate in reduction of the Certificate Principal Balance
      thereof pursuant to this Section 5.01 from Net Monthly Excess Cashflow and
      (ii)
      in no event shall the Uncertificated Balance of a REMIC Regular Interest be
      reduced more than once in respect of any particular amount both (a) allocated
      to
      such REMIC Regular Interest in respect of Realized Losses pursuant to Section
      5.04 and (b) distributed on such REMIC Regular Interest in reduction of the
      Uncertificated Balance thereof pursuant to this Section 5.01.

     

    SECTION
      5.02. Statements
      to Certificateholders.

     

    On
      each
      Distribution Date, the Securities Administrator (based on the information set
      forth in the Servicer Reports for such Distribution Date, information provided
      by the Swap Provider under the Swap Agreement with respect to payments made
      pursuant to the Swap Agreement) shall make available to each Holder of the
      Certificates and the Credit Risk Manager, a statement as to the distributions
      made on such Distribution Date setting forth:

     

    (i) applicable
      Interest Accrual Periods and general Distribution Dates;

     

    (ii) with
      respect to each loan group, the total cash flows received and the general
      sources thereof; 

     

    (iii) the
      aggregate Servicing Fee received by the Servicers during the related Due
      Period;

     

    (iv) the
      amount, if any, of other fees or expenses accrued and paid, with an
      identification of the payee and the general purpose of such fees; 

     

    (v) with
      respect to each loan group, the amount of the related distribution to Holders
      of
      the Certificates (by class) allocable to principal, separately identifying
      (A)
      the aggregate amount of any Principal Prepayments included therein, (B) the
      aggregate of all scheduled payments of principal included therein and (C) any
      Overcollateralization Increase Amount included therein;

     

    (vi) with
      respect to each loan group, the amount of such distribution to Holders of the
      Certificates (by class) allocable to interest and the portion thereof, if any,
      provided by the Swap Agreement;

     

    (vii) with
      respect to each loan group, the Interest Carry Forward Amounts and any Net
      WAC
      Rate Carryover Amounts for the related Certificates (if any);

     

    (viii) the
      aggregate amount of Advances included in the distributions on the Distribution
      Date (including the general purpose of such Advances);

     

    
      
        
        

      

      
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    (ix) with
      respect to each loan group, the number and aggregate principal balance of any
      Mortgage Loans (not including any Liquidated Mortgage Loans as of the end of
      the
      Prepayment Period) that were (A) delinquent (exclusive of Mortgage Loans in
      foreclosure) using the “OTS” method (1) one scheduled payment is delinquent, (2)
      two scheduled payments are delinquent, (3) three scheduled payments are
      delinquent and (4) foreclosure proceedings have been commenced, and loss
      information for the period;

     

    (x) 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;

     

    (xi) with
      respect to each loan group and any Mortgage Loan that was liquidated during
      the
      preceding calendar month, the loan number and Scheduled Principal Balance of,
      and Realized Loss on, such Mortgage Loan as of the end of the related Prepayment
      Period;

     

    (xii) the
      total
      number and principal balance of any real estate owned, or REO Properties, as
      of
      the end of the related Prepayment Period;

     

    (xiii) with
      respect to each loan group, whether the Stepdown Date has occurred and whether
      Trigger Event is in effect;

     

    (xiv) with
      respect to each loan group, the cumulative Realized Losses through the end
      of
      the preceding month;

     

    (xv) the
      aggregate amount of Extraordinary Trust Fund Expenses withdrawn from the
      Distribution Account for such Distribution Date;

     

    (xvi) with
      respect to each loan group, the Certificate Principal Balance of the related
      Certificates before and after giving effect to the distribution of principal
      and
      allocation of Allocated Realized Loss Amounts on such Distribution
      Date;

     

    (xvii) with
      respect to each loan group, the number and Scheduled Principal Balance of all
      the Mortgage Loans for the following Distribution Date;

     

    (xviii) with
      respect to each loan group, the three-month rolling average of the percent
      equivalent of a fraction, the numerator of which is the aggregate Scheduled
      Principal Balance of the Mortgage Loans in such loan group that are 60 days
      or
      more delinquent or are in bankruptcy or foreclosure or are REO Properties,
      and
      the denominator of which is the Scheduled Principal Balances of all of the
      Mortgage Loans in such loan group;

     

    (xix) the
      Certificate Factor for each such Class of Certificates applicable to such
      Distribution Date;

     

    (xx) 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 and the Mezzanine Certificates separately
      identifying any reduction thereof due to allocations of Prepayment Interest
      Shortfalls and interest shortfalls including the following Realized Losses:
      Relief Act Interest Shortfalls and Net WAC Rate Carryover Amounts;

     

    
      
        
        

      

      
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    (xxi) 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 3.22 of this Agreement, the Master Servicer pursuant to
      Section 4.19 of this Agreement; 

     

    (xxii) the
      aggregate amount of Relief Act Interest Shortfalls for such Distribution
      Date;

     

    (xxiii) the
      amount of, if any, of Net Monthly Excess Cashflow or excess spread and the
      application of such Net Monthly Excess Cashflow;

     

    (xxiv) the
      Required Overcollateralization Amount and the Credit Enhancement Percentage
      for
      such Distribution Date;

     

    (xxv) the
      Overcollateralization Increase Amount, if any, for such Distribution
      Date;

     

    (xxvi) the
      Overcollateralization Reduction Amount, if any, for such Distribution
      Date;

     

    (xxvii) the
      Pass-Through Rate for each class of Certificates for such Distribution
      Date;

     

    (xxviii)
      the
      amount of any deposit to the Reserve Fund contemplated by
      Section 3.24(b);

     

    (xxix) the
      balance of the Reserve Fund prior to the deposit or withdrawal of any amounts
      on
      such Distribution Date;

     

    (xxx) the
      amount of any deposit to the Reserve Fund pursuant to
      Section 5.01(c)(8)(vi);

     

    (xxxi) the
      Loss
      Severity Percentage with respect to each Mortgage Loan;

     

    (xxxii) the
      Aggregate Loss Severity Percentage;

     

    (xxxiii)
      with
      respect to each loan group, the amount of the Prepayment Charges remitted by
      the
      related Servicer; and

     

    
      
        
        

      

      
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    (xxxiv)
      the
      amount of any Net Swap Payment payable to the Trust, any related Net Swap
      Payment payable to the Swap Provider, any Swap Termination Payment payable
      to
      the Trust and any related Swap Termination Payment payable to the Swap
      Provider.

     

    The
      Securities Administrator will make such statement (and, at its option, any
      additional files containing the same information in an alternative format)
      available each month to the Certificateholders and the Rating Agencies via
      the
      Securities Administrator’s internet website. The Securities Administrator’s
      internet website shall initially be located at http:\\www.ctslink.com and
      assistance in using the website can be obtained by calling the Securities
      Administrator’s customer service 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 customer service desk and indicating
      such. The Securities Administrator shall have the right to change the way such
      statements are distributed in order to make such distribution more convenient
      and/or more accessible to the above parties and the Securities Administrator
      shall provide timely and adequate notification to all above parties regarding
      any such changes.

     

    In
      the
      case of information furnished pursuant to subclauses (i) and (ii) 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 Securities
      Administrator shall furnish upon request 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 (i) through (iii) above, aggregated
      for
      such calendar year or applicable portion thereof during which such person was
      a
      Certificateholder. Such obligation of the Securities Administrator shall be
      deemed to have been satisfied to the extent that substantially comparable
      information shall be provided by the Securities Administrator pursuant to any
      requirements of the Code as from time to time are in force.

     

    Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall furnish upon request 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
      Securities Administrator 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.

     

    On
      each
      Distribution Date the Securities Administrator 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 Securities Administrator and Bloomberg.

     

    
      
        
        

      

      
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    SECTION
      5.03. Servicer
      Reports; P&I Advances.

     

    (a) On
      or
      before the second Business Day following the last day of each Prepayment Period,
      the Servicer shall deliver to the Master Servicer and the Securities
      Administrator by telecopy or electronic mail (or by such other means as the
      Servicer, the Master Servicer and the Securities Administrator may agree from
      time to time) a remittance report containing such information with respect
      to
      the related Mortgage Loans and the related Distribution Date as is reasonably
      available to the Servicer as the Master Servicer or the Securities Administrator
      may reasonably require so as to enable the Master Servicer to master service
      the
      Mortgage Loans and oversee the servicing by the Servicer and the Securities
      Administrator to fulfill its obligations hereunder with respect to securities
      and tax reporting.

     

    (b) The
      amount of P&I Advances to be made by Countrywide on any Distribution Date
      shall equal, subject to Section 5.03(d), (i) the aggregate amount of Monthly
      Payments (net of the related Servicing Fees), due during the related Due Period
      in respect of the Mortgage Loans serviced by Countrywide, 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 was acquired during or prior
      to the related Prepayment Period and as to which 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 deposited
      in
      the related Collection Account pursuant to Section 3.21 of this Agreement for
      distribution on such Distribution Date; provided, however, no Servicer shall
      be
      required to make P&I Advances with respect to Relief Act Interest
      Shortfalls, shortfalls due to bankruptcy proceedings, or with respect to
      Prepayment Interest Shortfalls in excess of its obligations under Section 3.22
      or the Servicing Agreement, as applicable. For purposes of the preceding
      sentence, the Monthly Payment on each Balloon Mortgage Loan with a delinquent
      Balloon Payment is equal to the assumed monthly payment that would have been
      due
      on the related Due Date based on the original principal amortization schedule
      for such Balloon Mortgage Loan.

     

    On
      the
      Servicer Remittance Date, Countrywide shall remit in immediately available
      funds
      to the Securities Administrator for deposit in the Distribution Account an
      amount equal to the aggregate amount of P&I Advances, if any, to be made in
      respect of the related Mortgage Loans for the related Distribution Date either
      (i) from its own funds or (ii) from the Related Collection Account, to the
      extent of any Amounts Held For Future Distribution on deposit therein (in which
      case it will cause to be made an appropriate entry in the records of the Related
      Collection Account that Amounts Held For Future Distribution have been, as
      permitted by this Section 5.03, used by Countrywide 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 Countrywide with
      respect to the related Mortgage Loans. In addition, Countrywide shall have
      the
      right to reimburse itself for any outstanding P&I Advance made from its own
      funds from Amounts Held for Future Distribution. Any Amounts Held For Future
      Distribution used by Countrywide to make P&I Advances or to reimburse itself
      for outstanding P&I Advances shall be appropriately reflected in
      Countrywide’s records and replaced by Countrywide by deposit in the related
      Collection Account no later than the close of business on the Servicer
      Remittance Date immediately following the Due Period or Prepayment Period for
      which such amounts relate. The Securities Administrator will notify the
      Countrywide and the Master Servicer 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 Securities Administrator on such date pursuant to this Agreement
      or the Servicing Agreement, as applicable, is less than the P&I Advances
      required to be made by such Servicer for the related Distribution
      Date.

     

    
      
        
        

      

      
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    (c) The
      obligation of Countrywide 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 related 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 or the Servicing Agreement, as applicable, 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 any Servicer if such P&I Advance or
      Servicing Advance would, if made, constitute a Nonrecoverable P&I Advance or
      Nonrecoverable Servicing Advance, respectively. The determination by any
      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 Nonrecoverable
      Servicing Advance, respectively, shall be evidenced by a certification of a
      Servicing Officer delivered to the Master Servicer.

     

    (e) In
      the
      event that any Servicer (or any successor thereto) fails to make a required
      P&I Advance, the Master Servicer (in its capacity as successor to such
      Servicer) will be required to make such P&I Advance on the Distribution Date
      on which the related Servicer was required to make such P&I Advance, subject
      to its determination of recoverability.

     

    SECTION
      5.04. Allocation
      of Realized Losses.

     

    (a) Prior
      to
      the Determination Date, the Servicers shall determine as to each Mortgage Loan
      serviced by such Servicer and any related REO Property and include in the
      monthly remittance report provided to the Master Servicer and the Securities
      Administrator (substantially in the form of Schedule 4 hereto or as set forth
      in
      the Servicing Agreement) such information as is reasonably available to the
      related Servicer as the Master Servicer or the Securities Administrator may
      reasonably require so as to enable the Master Servicer to master service the
      Mortgage Loans and oversee the servicing by the related Servicer and the
      Securities Administrator to fulfill its obligations hereunder with respect
      to
      securities and tax reporting, which shall include, but not be limited to: (i)
      the total amount of Realized Losses, if any, incurred in connection with any
      Final Recovery Determinations made during the related Prepayment Period; and
      (ii) the respective portions of such Realized Losses allocable to interest
      and
      allocable to principal. Prior to each Determination Date, the related 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.

     

    (b) All
      Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest
      pursuant to Section 5.04(c) on the Mortgage Loans shall be allocated by the
      Securities Administrator on each Distribution Date as follows: first,
      to Net
      Monthly Excess Cashflow and to Net Swap Payments received from the Swap Provider
      under the Swap Agreement for that purpose; second,
      to the
      Class CE Certificates; third,
      to the
      Class M-11 Certificates, until the Certificate Principal Balance of the Class
      M-11 Certificates has been reduced to zero; fourth,
      to the
      Class M-10 Certificates, until the Certificate Principal Balance of the Class
      M-10 Certificates has been reduced to zero; fifth,
      to the
      Class M-9 Certificates, until the Certificate Principal Balance of the Class
      M-9
      Certificates has been reduced to zero; sixth,
      to the
      Class M-8 Certificates, until the Certificate Principal Balance of the Class
      M-8
      Certificates has been reduced to zero; seventh,
      to the
      Class M-7 Certificates, until the Certificate Principal Balance of the Class
      M-7
      Certificates has been reduced to zero; eighth,
      to the
      Class M-6 Certificates, until the Certificate Principal Balance of the Class
      M-6
      Certificates has been reduced to zero; ninth,
      to the
      Class M-5 Certificates, until the Certificate Principal Balance of the Class
      M-5
      Certificates has been reduced to zero; tenth,
      to the
      Class M-4 Certificates, until the Certificate Principal Balance of the Class
      M-4
      Certificates has been reduced to zero; eleventh,
      to the
      Class M-3 Certificates, until the Certificate Principal Balance of the Class
      M-3
      Certificates has been reduced to zero, twelfth,
      to the
      Class M-2 Certificates, until the Certificate Principal Balance of the Class
      M-2
      Certificates has been reduced to zero; and thirteenth,
      to the
      Class M-1 Certificates, until the Certificate Principal Balance of the Class
      M-1
      Certificates has been reduced to zero. 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.

     

    
      
        
        

      

      
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    Any
      allocation of Realized Losses to a Mezzanine Certificate on any Distribution
      Date shall be made by reducing the Certificate Principal Balance thereof by
      the
      amount so allocated; any allocation of Realized Losses to a Class CE Certificate
      shall be made by reducing the amount otherwise payable in respect thereof
      pursuant to Section 5.01(c)(8)(viii). No allocations of any Realized Losses
      shall be made to the Certificate Principal Balances of the Class A Certificates
      or 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.

     

    In
      addition, in the event that a Servicer receives any Subsequent Recoveries with
      respect to a Mortgage Loan serviced by it, the related Servicer shall deposit
      such funds into the related Collection Account pursuant to Section 3.08 or
      the
      Servicing Agreement, as applicable. If, after taking into account such
      Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount
      of
      such Subsequent Recoveries will be applied to increase the Certificate Principal
      Balance of the Class of Subordinate Certificates with the highest payment
      priority to which Realized Losses have been allocated, but not by more than
      the
      amount of Realized Losses previously allocated to that Class of Subordinate
      Certificates pursuant to this Section 5.04 and not previously reimbursed to
      such
      Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant
      to
      Section 5.01(c)(8). The amount of any remaining Subsequent Recoveries will
      be
      applied to sequentially increase the Certificate Principal Balance of the
      Subordinate Certificates, beginning with the Class of Subordinate Certificates
      with the next highest payment priority, up to the amount of such Realized Losses
      previously allocated to such Class of Subordinate Certificates pursuant to
      this
      Section 5.04 and not previously reimbursed to such Class of Subordinate
      Certificates with Net Monthly Excess Cashflow pursuant to Section
      5.01(c)(8)(iii). Holders of such Certificates will not be entitled to any
      payment in respect of current 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 Subordinate Certificate of such Class in accordance with its respective
      Percentage Interest.

     

    
      
        
        

      

      
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    (c)(i) All
      Realized Losses on the Group IA Mortgage Loans shall be allocated on each
      Distribution Date first to REMIC I Regular Interest IA until the Uncertificated
      Balance of such REMIC I Regular Interest has been reduced to zero and second,
      to
      REMIC I Regular Interest IA-1-A through REMIC I Regular Interest IA-60-B,
      starting with the lowest numerical denomination until such REMIC I Regular
      Interest has been reduced to zero, provided that, for REMIC I Regular Interests
      with the same numerical denomination, such Realized Losses shall be allocated
      pro
      rata
      between
      such REMIC I Regular Interests. All Realized Losses on the Group IB Mortgage
      Loans shall be allocated on each Distribution Date first to REMIC I Regular
      Interest IB until the Uncertificated Balance of such REMIC I Regular Interest
      has been reduced to zero and second, to REMIC I Regular Interest IB-1-A through
      REMIC I Regular Interest IB-60-B, starting with the lowest numerical
      denomination until such REMIC I Regular Interest has been reduced to zero,
      provided that, for REMIC I Regular Interests with the same numerical
      denomination, such Realized Losses shall be allocated pro
      rata
      between
      such REMIC I Regular Interests. All Realized Losses on the Group II Mortgage
      Loans shall be allocated on each Distribution Date first, to REMIC I Regular
      Interest II until the Uncertificated Balance of such REMIC I Regular Interest
      has been reduced to zero and second, to REMIC I Regular Interest II-1-A through
      REMIC I Regular Interest II-60-B, starting with the lowest numerical
      denomination until such REMIC I Regular Interest has been reduced to zero,
      provided that, for REMIC I Regular Interests with the same numerical
      denomination, such Realized Losses shall be allocated pro
      rata
      between
      such REMIC I Regular Interests. 

     

    (ii) REMIC
      II
      Marker Allocation Percentage of all Realized Losses on the Mortgage Loans shall
      be allocated by the Securities Administrator on each Distribution Date to the
      following REMIC II Regular Interests in the specified percentages, as follows:
      first, to Uncertificated Interest payable to the REMIC II Regular Interest
      AA
      and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC
      II
      Interest Loss Allocation Amount, 98.00% and 2.00%, respectively; second, to the
      Uncertificated Balances of the REMIC II Regular Interest AA and REMIC II Regular
      Interest ZZ up to an aggregate amount equal to the REMIC II Principal Loss
      Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated
      Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-11 and
      REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until
      the
      Uncertificated Balance of REMIC II Regular Interest M-11 has been reduced to
      zero; fourth, to the Uncertificated Balances of REMIC II Regular Interest AA,
      REMIC II Regular Interest M-10 and REMIC II Regular Interest ZZ, 98.00%, 1.00%
      and 1.00%, respectively, until the Uncertificated Balance of REMIC II Regular
      Interest M-10 has been reduced to zero; fifth, to the Uncertificated Balances
      of
      REMIC II Regular Interest AA, REMIC II Regular Interest M-9 and REMIC II Regular
      Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated
      Balance of REMIC II Regular Interest M-9 has been reduced to zero; sixth, to
      the
      Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
      Interest M-8 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Balance of REMIC II Regular Interest
      M-8
      has been reduced to zero; seventh, to the Uncertificated Balances of REMIC
      II
      Regular Interest AA, REMIC II Regular Interest M-7 and REMIC II Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance
      of
      REMIC II Regular Interest M-7 has been reduced to zero; eighth, to the
      Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
      Interest M-6 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Balance of REMIC II Regular Interest
      M-6
      has been reduced to zero; ninth, to the Uncertificated Balances of REMIC II
      Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance
      of
      REMIC II Regular Interest M-5 has been reduced to zero; tenth, to the
      Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
      Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Balance of REMIC II Regular Interest
      M-4
      has been reduced to zero; eleventh, to the Uncertificated Balances of REMIC
      II
      Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance
      of
      REMIC II Regular Interest M-3 has been reduced to zero; twelfth, to the
      Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
      Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Balance of REMIC II Regular Interest
      M-2
      has been reduced to zero; and thirteenth, to the Uncertificated Balances of
      REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular
      Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated
      Balance of REMIC II Regular Interest M-1 has been reduced to zero.

     

    
      
        
        

      

      
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    (iii) The
      REMIC
      II Sub WAC Allocation Percentage of all Realized Losses shall be applied after
      all distributions have been made on each Distribution Date first, so as to
      keep
      the Uncertificated Balance of each REMIC II Regular Interest ending with the
      designation “GRP” equal to 0.01% of the aggregate Stated Principal Balance of
      the Mortgage Loans in the related loan group; second, to each REMIC II Regular
      Interest ending with the designation “SUB,” so that the Uncertificated Balance
      of each such REMIC II Regular Interest is equal to 0.01% of the excess of (x)
      the aggregate Stated Principal Balance of the Mortgage Loans in the related
      loan
      group over (y) the current Certificate Principal Balance of the Class A
      Certificate in the related loan group (except that if any such excess is a
      larger number than in the preceding distribution period, the least amount of
      Realized Losses shall be applied to such REMIC II Regular Interests such that
      the REMIC II Subordinated Balance Ratio is maintained); and third, any remaining
      Realized Losses shall be allocated to REMIC II Regular Interest XX.

     

    SECTION
      5.05. Compliance
      with Withholding Requirements.

     

    Notwithstanding
      any other provision of this Agreement, the Trustee and the Securities
      Administrator 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
      Securities Administrator does withhold any amount from interest or original
      issue discount payments or advances thereof to any Certificateholder pursuant
      to
      federal withholding requirements, the Securities Administrator shall indicate
      the amount withheld to such Certificateholders.

     

    
      
        
        

      

      
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    SECTION
      5.06. Reports
      Filed with Securities and Exchange Commission.

     

    (a)(i)
      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 G to the Depositor and the Securities Administrator
      and directed and approved by the Depositor pursuant to the following paragraph,
      and the Securities Administrator will have no duty or liability for any failure
      hereunder to determine or prepare any Additional Form 10-D Disclosure, except
      as
      set forth in the next paragraph. 

     

    (ii) As
      set
      forth on Exhibit G hereto, no later than 10 calendar days prior to the deadline
      for the filing of any distribution report on Form 10-D, (A) certain parties
      to
      the ACE Securities Corp. Home Equity Loan Trust, Series 2006-NC3 transaction
      shall be required to provide to the Securities Administrator and the Depositor,
      to the extent known by a responsible officer thereof, in EDGAR compatible form,
      or in such other form as otherwise 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 in the form
      of Exhibit H hereto (an “Additional Disclosure Notification”) or such other
      format as agreed upon by the Securities Administrator and the reporting party
      and (B) 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 Depositor will be responsible for any reasonable fees and expenses
      assessed or incurred by the Securities Administrator in connection with
      including any Additional Form 10-D Disclosure on Form 10-D pursuant to this
      paragraph. 

     

    (iii) After
      preparing the Form 10-D, the Securities Administrator shall 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
      by
      the due date specified herein, 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
      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 Section 5.06(c)(ii).
      Promptly (but no later than 1 Business Day) after filing with the Commission,
      the Securities Administrator will make available on its internet website a
      final
      executed copy of each Form 10-D filed by the Securities Administrator. Neither
      the Securities Administrator nor the Master Servicer 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 needed
      to prepare, arrange for execution or file such Form 10-D, not resulting from
      its
      own negligence, bad faith or willful misconduct. Notwithstanding any other
      provisions of this Agreement, the obligations of the Servicer with respect
      to
      Additional Form 10-D Disclosure and any Additional Disclosure Notification
      shall
      be limited to those set forth in Section 3.19(f)(iii) of this
      Agreement.

     

    
      
        
        

      

      
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    (b)(i)
      Within
      four (4) Business Days after the occurrence of an event requiring disclosure
      on
      Form 8-K (each such event, a “Reportable Event”), and if requested by the
      Depositor, the Securities Administrator shall prepare and file on behalf of
      the
      Trust a 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 other than the initial
      Form 8K (“Form 8-K Disclosure Information”) shall be reported by the parties set
      forth on Exhibit G 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 as set forth in the next paragraph. 

     

    (ii) As
      set
      forth on Exhibit G 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 to the ACE Securities Corp. Home Equity Loan Trust, Series 2006-NC3
      transaction shall be required to provide to the Securities Administrator and
      the
      Depositor, to the extent known by a responsible officer thereof, in EDGAR
      compatible form, or in such other form as otherwise 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. 

     

    (iii) 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 by the third
      Business Day, 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 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 Section 5.06(c)(ii). Promptly (but no later
      than 1 Business Day) after filing with the Commission, the Securities
      Administrator will, make available on its internet website a final executed
      copy
      of each Form 8-K that has been prepared and filed by the Securities
      Administrator. 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 8-K, where such failure results from the Securities Administrator’s
      inability or failure to receive, on a timely basis, any information from any
      other party hereto needed to prepare, execute or arrange for execution or file
      such Form 8-K, not resulting from its own negligence, bad faith or willful
      misconduct. Notwithstanding any other provisions of this Agreement, the
      obligations of the Servicer with respect to Form 8-K Disclosure information
      shall be limited to those set forth in Sections 3.19(f)(i) and 3.19(g) of
      this Agreement.

     

    
      
        
        

      

      
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    (c)(i)
      On
      or
      prior to January 30th 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 suspension notification 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 electronically notify 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
      and such amendment includes any Additional Form 10-D Disclosure (other than
      for
      the purposes of restating any Monthly Report), any Additional Form 10-K
      Disclosure or any Form 8-K Disclosure Information or any amendment to such
      disclosure, the Securities Administrator will electronically notify the
      Depositor only if the amendment pertains to an additional reporting item being
      revised and/or amended on such form, but not if an amendment is being filed
      as a
      result of a Remittance Report revision, and the Depositor will cooperate with
      the Securities Administrator in preparing 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. 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 receive, on a timely basis, any
      information from any other party hereto needed to prepare, execute or 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.

     

    
      
        
        

      

      
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    (d)(i)
      On
      or
      prior to the 90th day after the end of each fiscal year of the Trust or such
      earlier date as may be required by the Exchange Act (the “10-K Filing Deadline”)
      (it being understood that the fiscal year for the Trust ends on December 31st
      of
      each year), commencing in March 2007, the Securities Administrator shall prepare
      and file on behalf of the Trust a Form 10-K, in form and substance as required
      by the Exchange Act. Each such Form 10-K shall include the following items,
      in
      each case to the extent they have been delivered to the Securities Administrator
      within the applicable time frames set forth in this Agreement and the Custodial
      Agreement, (i) an annual compliance statement for each Servicer, each Additional
      Servicer, the Master Servicer, the Securities Administrator and any Servicing
      Function Participant engaged by such parties (each, a “Reporting Servicer”) as
      described under Section 3.17 and Section 4.15 of this Agreement or pursuant
      to
      the Servicing Agreement, as applicable, and in such other agreements, (ii)(A)
      the annual reports on assessment of compliance with servicing criteria for
      each
      Reporting Servicer, as described under Section 3.18 and Section 4.16 of this
      Agreement or the Servicing Agreement, as applicable, and in such other
      agreements, and (B) if each Reporting Servicer’s report on assessment of
      compliance with servicing criteria described under Section 3.18 and Section
      4.16
      identifies any material instance of noncompliance, disclosure identifying such
      instance of noncompliance, or if each Reporting Servicer’s report on assessment
      of compliance with servicing criteria described under Section 3.18 and Section
      4.16 of this Agreement or the Servicing Agreement, as applicable, 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 each Reporting
      Servicer, as described under Section 3.18 and Section 4.17 of this Agreement
      or
      the Servicing Agreement, as applicable, and (B) if any registered public
      accounting firm attestation report described under Section 3.18 and Section
      4.17
      of this Agreement or the Servicing Agreement, as applicable, 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 (“Sarbanes-Oxley Certification”) as
      described in Section 3.19 and Section 4.18 of this Agreement or the Servicing
      Agreement, as applicable; provided that such certification delivered by the
      Servicer may not be filed as an exhibit to, or included in, any filing with
      the
      Commission. 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”)
      reported by the parties set forth on Exhibit G 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 as set forth in the next paragraph. 

     

    (ii) As
      set
      forth on Exhibit G hereto, no later than March 15 of each year that the Trust
      is
      subject to the Exchange Act reporting requirements, commencing in 2007, (i)
      the
      parties to the ACE Securities Corp. Home Equity Loan Trust, Series 2006-NC3
      transaction shall be required to provide to the Securities Administrator and
      the
      Depositor, to the extent known by a responsible officer thereof, in
      EDGAR-compatible form, or in such other form as otherwise 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 Depositor will be responsible for any
      reasonable fees and expenses assessed or incurred by the Securities
      Administrator in connection with including any Additional Form 10-K Disclosure
      on Form 10-K pursuant to this paragraph.

     

    
      
        
        

      

      
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    (iii) 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 in no event later than March
      25th
      of each year that the Trust is subject to Exchange Act reporting requirements,
      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 by March 25th, 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 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 Section 5.06(c)(ii).
      Promptly (but no later than 1 Business Day) after filing with the Commission,
      the Securities Administrator will make available on its internet website a
      final
      executed copy of each Form 10-K filed by the Securities Administrator. Neither
      the Master Servicer nor the Securities Administrator shall have any liability
      for any loss, expense, damage or 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
      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. Notwithstanding any other
      provisions of this Agreement, the obligations of the Servicer with respect
      to
      Additional Form 10-K Disclosure shall be limited to those set forth in
      Section 3.19(f)(ii) of this Agreement.

     

    (e) Each
      of
      Form 10-D and Form 10-K requires the registrant to indicate (by checking “yes”
or “no”) that it “(1) has filed all reports required to be filed by Section 13
      or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter
      period that the registrant was required to file such reports), and (2) has
      been
      subject to such filing requirements for the past 90 days.” The Depositor hereby
      represents to the Securities Administrator that the Depositor has filed all
      such
      required reports during the preceding 12 months and that it has been subject
      to
      such filing requirement for the past 90 days. The Depositor shall notify the
      Securities Administrator in writing, no later than the fifth calendar day after
      the related Distribution Date with respect to the filing of a report on Form
      10-D and no later than March 15th
      with
      respect to the filing of a report on Form 10-K, if the answer to the question
      should be “no” as a result of filings that relate to other securitization
      transactions of the Depositor for which the Securities Administrator does not
      have the obligation to prepare and file Exchange Act reports.

     

    (f) The
      Securities Administrator shall indemnify and hold harmless the Depositor, the
      Trustee and their respective officers, directors and Affiliates from and against
      any losses, damages, penalties, fines, forfeitures, reasonable and necessary
      legal fees and related costs, judgments and other costs and expenses arising
      out
      of or based upon a breach of the Master Servicer’s obligations under this
      Section 5.06 or the Master Servicer’s negligence, bad faith or willful
      misconduct in connection therewith. 

     

    
      
        
        

      

      
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    (g) Notwithstanding
      the provisions of Section 12.01, this Section 5.06 may be amended without the
      consent of the Certificateholders.

     

    SECTION
      5.07. Supplemental
      Interest Trust.

     

    (a) On
      the
      Closing Date, the Securities Administrator shall establish and maintain in
      the
      name of the Trustee a separate account for the benefit of the holders of the
      Class A Certificates and the Mezzanine Certificates (the “Supplemental Interest
      Trust”). The Supplemental Interest Trust shall be an Eligible Account, and funds
      on deposit therein shall be held separate and apart from, and shall not be
      commingled with, any other moneys, including, without limitation, other moneys
      of the Trustee or of the Securities Administrator held pursuant to this
      Agreement. 

     

    (b) On
      each
      Distribution Date, the Securities Administrator shall deposit into the
      Supplemental Interest Trust amounts distributable to the Swap Provider by the
      Supplemental Interest Trust pursuant to Section 5.01(c)(2), (3), (4), (6)
      and (7) and Section 5.01(c)(8)(vii)
      of this
      Agreement. On each Distribution Date, the Securities Administrator shall
      distribute any such amounts to the Swap Provider pursuant to the Swap Agreement,
      first to pay any Net Swap Payment owed to the Swap Provider for such
      Distribution Date, and second to pay any Swap Termination Payment owed to the
      Swap Provider not due to a Swap Provider Trigger Event.

     

    (c) The
      Supplemental Interest Trust constitutes an “outside reserve fund” within the
      meaning of Treasury Regulation § 1.860G-2(h) and is not an asset of any REMIC.
      The Holders of the Class CE Certificates shall be the beneficial owner of the
      Supplemental Interest Trust, subject to the power of the Securities
      Administrator to transfer amounts under this Agreement. The Securities
      Administrator shall keep records that accurately reflect the funds on deposit
      in
      the Supplemental Interest Trust. The Securities Administrator shall, at the
      written direction of the majority of the Class CE Certificateholders, invest
      amounts on deposit in the Supplemental Interest Trust in Permitted Investments.
      In the absence of written direction to the Securities Administrator from the
      majority of the Class CE Certificateholders, all funds in the Supplemental
      Interest Trust shall remain uninvested. On each Distribution Date, the
      Securities Administrator shall distribute, not in respect of any REMIC, any
      interest earned on the Supplemental Interest Trust to the Holders of the Class
      CE Certificates.

     

    (d) For
      federal income tax purposes, amounts paid to the Supplemental Interest Trust
      on
      each Distribution Date pursuant to Section 5.01(c)(2), (3), (4), (6) and
      (7) and Section 5.01(c)(8)(vii) shall first be deemed paid to the
      Supplemental Interest Trust in respect of the Class IO Interest to the extent
      of
      the amount distributable on such Class IO Interest on such Distribution Date,
      and any remaining amount shall be deemed paid to the Supplemental Interest
      Trust
      in respect of a Class IO Distribution Amount. 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 CE Certificates unless and until the date when
      either (a) there is more than one Class CE Certificateholder or (b) any Class
      of
      Certificates in addition to the Class CE Certificates is recharacterized as
      an
      equity interest in the Supplemental Interest Trust for federal income tax
      purposes, in which case 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 treated as a partnership. The Master Servicer
      shall not be required to prepare and file partnership tax returns in respect
      of
      such partnership unless it receives additional reasonable compensation (not
      to
      exceed $10,000 per year) for the preparation of such filings, written
      notification recognizing the creation of a partnership agreement or comparable
      documentation evidencing the partnership. 

     

    
      
        
        

      

      
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    (e) The
      Securities Administrator shall treat the Holders of Certificates (other than
      the
      Class P, Class CE and Residual Certificates) as having entered into a notional
      principal contract with respect to the Holders of the Class CE Certificates.
      Pursuant to each such notional principal contract, all Holders of Certificates
      (other than the Class P, Class CE and Residual 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 Regular Interest ownership of which
      is
      represented by 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”). A Class IO Distribution Amount payable from interest
      collections shall be allocated pro rata among such Certificates based on the
      amount of interest otherwise payable to such Certificates, and a Class IO
      Distribution Amount payable from principal collections shall be allocated to
      the
      most subordinate Class of such Certificates with an outstanding principal
      balance to the extent of such balance. In addition, pursuant to such notional
      principal contract, the Holder of the Class CE Certificates shall be treated
      as
      having agreed to pay Net WAC Rate Carryover Amounts to the Holders of the
      Certificates (other than the Class CE, Class P and Residual Certificates) in
      accordance with the terms of this Agreement. Any payments to such 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, Class P and Residual 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 Regular Interest ownership
      of
      which is represented by such Certificates, and as having been paid by such
      Holders to the Supplemental Interest Trust pursuant to the notional principal
      contract. Thus, each Certificate (other than the Class P Certificates and
      Residual Certificates) shall be treated as representing not only ownership
      of a
      Regular Interest in REMIC III, but also ownership of an interest in, and
      obligations with respect to, a notional principal contract.

     

    (f) For
      federal tax return and information reporting, the right of the holders of the
      Class A Certificates and the Mezzanine Certificates to receive payments from
      the
      Supplemental Interest Trust and the Reserve Fund in respect of any Net WAC
      Rate
      Carryover Amount shall be assigned a value of $2,407,686.

     

    (g) Upon
      a
      Swap Early Termination other than in connection with the optional termination
      of
      the trust, the Securities Administrator on behalf of the Supplemental Interest
      Trust, at the direction f the Depositor, will use reasonable efforts to appoint
      a successor swap provider to enter into a new interest rate swap agreement
      on
      terms substantially similar to the Swap Agreement, with a successor swap
      provider meeting all applicable eligibility requirements. If the Securities
      Administrator receives a Swap Termination Payment from the Swap Provider in
      connection with such Swap Early Termination, the Securities Administrator will
      apply such Swap Termination Payment to any upfront payment required to appoint
      the successor swap provider. If the Securities Administrator is required to
      pay
      a Swap Termination Payment to the Swap Provider in connection with such Swap
      Early Termination, the Securities Administrator will apply any upfront payment
      received from the successor swap provider to pay such Swap Termination Payment.
      

     

    
      
        
        

      

      
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    If
      the
      Securities Administrator is unable to appoint a successor swap provider within
      30 days of the Swap Early Termination, then the Securities Administrator will
      deposit any Swap Termination Payment received from the original Swap Provider
      into a separate, non-interest bearing reserve account and will, on each
      subsequent Distribution Date, withdraw from the amount then remaining on deposit
      in such reserve account an amount equal to the Net Swap Payment, if any, that
      would have been paid to the Securities Administrator by the original Swap
      Provider calculated in accordance with the terms of the original Swap Agreement,
      and distribute such amount in accordance with the terms of this
      Agreement.

    

    (h) In
      the
      event that the Swap Provider fails to perform any of its obligations under
      the
      Swap Agreement (including, without limitation, its obligation to make any
      payment or transfer collateral), or breaches any of its representations and
      warranties thereunder, or in the event that an Event of Default, Termination
      Event, or Additional Termination Event (each as defined in the Swap Agreement)
      occurs with respect to the Swap Agreement, the Securities Administrator on
      behalf of the Supplemental Interest Trust Trustee shall immediately, but no
      later than the next Business Day following such failure or breach, notify the
      Depositor and send any notices and make any demands, on behalf of the
      Supplemental Interest Trust, in accordance with the Swap Agreement.

     

    (i) In
      the
      event that the Swap Provider’s obligations are guaranteed by a third party under
      a guaranty relating to the Swap Agreement (such guaranty the “Guaranty” and such
      third party the “Guarantor”), then to the extent that the Swap Provider fails to
      make any payment by the close of business on the day it is required to make
      payment under the terms of the Swap Agreement, the Securities Administrator
      on
      behalf of the Supplemental Interest Trust Trustee shall, as soon as practicable,
      but no later than two (2) business days after the Swap Provider’s failure to
      pay, demand that the Guarantor make any and all payments then required to be
      made by the Guarantor pursuant to such Guaranty; provided, that the Securities
      Administrator shall in no event be liable for any failure or delay in the
      performance by the Swap Provider or any Guarantor of its obligations hereunder
      or pursuant to the Swap Agreement and the Guaranty, nor for any special,
      indirect or consequential loss or damage of any kind whatsoever (including
      but
      not limited to lost profits) in connection therewith.

     

    SECTION
      5.08. Tax
      Treatment of Swap Payments and Swap Termination Payments.

     

    For
      federal income tax purposes, each holder of a Class A Certificate or Mezzanine
      Certificate is deemed to own an undivided beneficial ownership interest in
      a
      REMIC regular interest and the right to receive payments from either the Reserve
      Fund or the Supplemental Interest Trust in respect of any Net WAC Rate Carryover
      Amounts or the obligation to make payments to the Supplemental Interest Trust.
      For federal income tax purposes, the Securities Administrator will account
      for
      payments to each Class A Certificate or Mezzanine Certificate as follows: each
      Class A Certificate or Mezzanine Certificate will be treated as receiving their
      entire payment from REMIC III (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’s 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 shortfall in 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
      Certificate or Mezzanine Certificate. 

     

    
      
        
        

      

      
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    The
      REMIC
      Regular Interest corresponding to an Class A Certificate 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 Swap Notional Amount of the Swap Agreement to the aggregate Stated
      Principal Balance of the Mortgage Loans and (ii) any Swap Termination Payment
      will be treated as being payable solely from amounts otherwise payable to the
      Class CE Certificates. As a result of the foregoing, the amount of distributions
      and taxable income on the REMIC Regular Interest corresponding to a Class A
      Certificate or Mezzanine Certificate may exceed the actual amount of
      distributions on the Class A Certificate or Mezzanine Certificate.

     

    SECTION
      5.09. Swap
      Collateral Account

     

    The
      Securities Administrator is hereby directed to perform the obligations of the
      Custodian as defined under the Swap Credit Support Annex (the “Swap Custodian”).

     

    On
      or
      before the Closing Date, the Swap Custodian shall establish a Swap Collateral
      Account. The Swap Collateral Account shall be held in the name of the Swap
      Custodian in trust for the benefit of the Class A Certificates and Mezzanine
      Certificates on the Closing Date. The Swap Collateral Account shall be an
      Eligible Account and shall be entitled “Supplemental Interest Trust Posted
      Collateral Account, Wells Fargo Bank, National Association for the benefit
      of
      holders of ACE Securities Corp., Home Equity Loan Trust, Series 2006-NC3, Asset
      Backed Pass-Through Certificates”. 

     

    The
      Swap
      Custodian shall credit to Swap Collateral Account all collateral (whether in
      the
      form of cash or securities) posted by the Swap Provider to secure the
      obligations of the Swap Provider in accordance with the terms of the Swap
      Agreement. Except for investment earnings, the Swap Provider shall not have
      any
      legal, equitable or beneficial interest in the Swap Collateral Account other
      than in accordance with this Agreement, the Swap Agreement and applicable law.
      The Swap Custodian shall maintain and apply all collateral and earnings thereon
      on deposit in the Swap Collateral Account in accordance with Swap Credit Support
      Annex.

     

    Cash
      collateral posted by the Swap Provider in accordance with the Swap Credit
      Support Annex shall be invested at the direction of the Depositor in Permitted
      Investments that mature no later than the Business Day prior to the next
      succeeding Distribution Date. If no investment direction is received or
      provided, the Securities Administrator shall invest the funds in the Wells
      Fargo
      Advantage Prime Investment Money Market Fund. All amounts earned on amounts
      on
      deposit in the Swap Collateral Account (whether cash collateral or securities)
      shall be taxable to the Swap Provider. 

     

    
      
        
        

      

      
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    Upon
      the
      occurrence of an Event of Default, a Termination Event, or an Additional
      Termination Event (each as defined in the Swap Agreement), amounts in the Swap
      Collateral Account shall be withdrawn by the Swap Custodian and applied to
      the
      payment of any termination payment due to Party B (as defined in the Swap
      Agreement) in accordance with the Swap Credit Support Annex. Any excess amounts
      held in such Swap Collateral Account after payment of all amounts owing to
      Party
      B under the Swap Agreement shall be withdrawn from the Swap Collateral Account
      and paid to the Swap Provider in accordance with the Swap Credit Support Annex.
      

     

    
      
        
        

      

      
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    ARTICLE
      VI

     

    THE
      CERTIFICATES

     

    SECTION
      6.01. 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, REMIC
      II and REMIC III.

     

    The
      Certificates will be substantially in the forms annexed hereto as Exhibits
      A-1
      through A-6. 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 and authenticated by the
      Securities Administrator and delivered by the Trustee to and upon the written
      order of the Depositor. The Certificates shall be executed by manual or
      facsimile signature on behalf of the Trust by the Securities Administrator
      by an
      authorized signatory. Certificates bearing the manual or facsimile signatures
      of
      individuals who were at any time the proper officers of the Securities
      Administrator shall bind the Trust, 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 Securities Administrator 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.

     

    (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 Securities Administrator 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 Securities Administrator 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 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 Securities Administrator resigns or is removed in accordance
      with the terms hereof, the successor Securities Administrator 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.

     

    
      
        
        

      

      
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    (c) The
      Class
      M-10, Class M-11 and Class CE Certificates initially offered and sold in
      offshore transactions in reliance on Regulation S shall be issued in the form
      of
      a temporary global certificate in definitive, fully registered form (each,
      a
“Regulation S Temporary Global Certificate”), which shall be deposited with the
      Securities Administrator or an agent of the Securities Administrator as
      custodian for the Depository and registered in the name of Cede & Co. as
      nominee of the Depository for the account of designated agents holding on behalf
      of Euroclear or Clearstream. Beneficial interests in each Regulation S Temporary
      Global Certificate may be held only through Euroclear or Clearstream; provided,
      however, that such interests may be exchanged for interests in a Definitive
      Certificate in accordance with the requirements described in Section 6.02.
      After
      the expiration of the Release Date, a beneficial interest in a Regulation S
      Temporary Global Certificate may be exchanged for a beneficial interest in
      the
      related permanent global certificate of the same Class (each, a “Regulation S
      Permanent Global Certificate”), in accordance with the procedures set forth in
      Section 6.02. Each Regulation S Permanent Global Certificate shall be deposited
      with the Securities Administrator or an agent of the Securities Administrator
      as
      custodian for the Depository and registered in the name of Cede & Co. as
      nominee of the Depository.

     

    The
      Class
      M-10 Certificates and Class M-11 Certificates offered and sold to Qualified
      Institutional Buyers (“QIBs”) in reliance on Rule 144A under the Securities Act
      (“Rule 144A”) or institutional investors that are accredited investors within
      the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
      Securities Act (“Institutional Accredited Investors”) will be issued in the form
      of Book-Entry Certificates.

     

    The
      Class
      CE Certificates and Class P Certificates offered and sold to QIBs in reliance
      on
      Rule 144A will be issued in the form of Definitive Certificates.

     

    (d) The
      Trustee, the Servicers, the Securities Administrator, the Master Servicer and
      the Depositor may for all purposes (including the making of payments due on
      the
      Book-Entry Certificates and Global Certificates) deal with the Depository as
      the
      authorized representative of the Certificate Owners with respect to the
      Book-Entry Certificates and Global Certificates for the purposes of exercising
      the rights of Certificateholders hereunder. The rights of Certificate Owners
      with respect to the Book-Entry Certificates and Global 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 the Book-Entry Certificates and Global Certificates
      with
      respect to any particular matter shall not be deemed inconsistent if they are
      made with respect to different Certificate Owners. The Securities Administrator
      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.

     

    
      
        
        

      

      
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    If
      (i)(A)
      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 (B) the Depositor is unable to locate a
      qualified successor, (ii) the Depositor at its option advises the Securities
      Administrator in writing that it elects to terminate the book-entry system
      through the Depository or (iii) after the occurrence of the Servicer Event
      of
      Default, Certificate Owners representing in the aggregate not less than 51%
      of
      the Ownership Interests of the Book-Entry Certificates advise the Securities
      Administrator 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 Securities Administrator 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. With respect to a Global Certificate, the related
      Certificate Owner (other than a Holder of a Regulation S Temporary Global
      Certificate) may request that its interest in a Global Certificate be exchanged
      for a Definitive Certificate. Upon surrender to the Securities Administrator
      of
      the Book-Entry Certificates by the Book-Entry Custodian or the Depository,
      as
      applicable, or the Global Certificates by the Depository accompanied by
      registration instructions from the Depository for registration of transfer,
      the
      Securities Administrator shall cause the Definitive Certificates to be issued.
      Such Definitive Certificates will be issued in minimum denominations of $10,000
      except that any beneficial ownership that was represented by a Book-Entry
      Certificate, or a Global Certificate, as applicable, in an amount less than
      $10,000 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 or a Global Certificate, as applicable. None of the
      Depositor, the Servicers, the Master Servicer, the Securities Administrator
      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 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.

     

    SECTION
      6.02. Registration
      of Transfer and Exchange of Certificates.

     

    (a) The
      Securities Administrator shall cause to be kept at one of the offices or
      agencies to be appointed by the Securities Administrator in accordance with
      the
      provisions of Section 9.11, a Certificate Register for the Certificates in
      which, subject to such reasonable regulations as it may prescribe, the
      Securities Administrator shall provide for the registration of Certificates
      and
      of transfers and exchanges of Certificates as herein provided.

     

    (b) No
      transfer of any Class M-10 Certificate, Class M-11 Certificate, Class CE
      Certificate, Class P Certificate or Residual Certificate shall be made unless
      that transfer is made pursuant to an effective registration statement under
      the
      Securities 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. 

     

    
      
        
        

      

      
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    In
      the
      event that such a transfer of a Class M-10 Certificate, Class M-11 Certificate,
      Class CE Certificate or Class P Certificate is to be made without registration
      or qualification (other than in connection with the initial transfer of any
      such
      Certificate by the Depositor), the Securities Administrator shall require
      receipt of: (i) if such transfer is purportedly being made in reliance upon
      Rule
      144A under the Securities Act, written certifications from the Certificateholder
      desiring to effect the transfer and from such Certificateholder’s prospective
      transferee, substantially in the form attached hereto as Exhibit
      B-1;
      (ii) if
      such transfer is purportedly being made in reliance upon Rule 501(a) under
      the
      Securities Act, written certifications from the Certificateholder desiring
      to
      effect the transfer and from such Certificateholder’s prospective transferee,
      substantially in the form attached hereto as Exhibit
      B-3,
      (iii)
      if such transfer is purportedly being made in reliance on Regulation S, a
      written certification from the prospective transferee, substantially in the
      form
      attached hereto as Exhibit
      B-2
      and
      (iv)
      in
      all
      other cases, an Opinion of Counsel satisfactory to the Securities Administrator
      that such transfer may be made without such registration or qualification (which
      Opinion of Counsel shall not be an expense of the Trust Fund or of the
      Depositor, the Trustee, the Master Servicer, the Securities Administrator or
      the
      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. 

     

    A
      holder
      of a beneficial interest in a Regulation S Temporary Global Certificate must
      provide Euroclear or Clearstream, as the case may be, with a certificate in
      the
      form of Annex A to Exhibit B-2 hereto certifying that the beneficial owner
      of
      the interest in such Global Certificate is not a U.S. Person (as defined in
      Regulation S), and Euroclear or Clearstream, as the case may be, must provide
      to
      the Trustee and Securities Administrator a certificate in the form of Exhibit
      B-2 hereto prior to (i) the payment of interest or principal with respect to
      such holder’s beneficial interest in the Regulation S Temporary Global
      Certificate and (ii) any exchange of such beneficial interest for a beneficial
      interest in a Regulation S Permanent Global Certificate.

     

    In
      the
      event that such a transfer of a Residual Certificate is to be made without
      registration or qualification (other than in connection with the initial
      transfer of any such Certificate by the Depositor), the Securities Administrator
      shall require receipt of: (i) if such transfer is purportedly being made in
      reliance upon Rule 144A under the Securities Act, written certifications from
      the Certificateholder desiring to effect the transfer and from such
      Certificateholder’s prospective transferee, substantially in the form attached
      hereto as Exhibit
      B-1;
      (ii) if
      such transfer is purportedly being made in reliance upon Rule 501(a) under
      the
      Securities Act, written certifications from the Certificateholder desiring
      to
      effect the transfer and from such Certificateholder’s prospective transferee,
      substantially in the form attached hereto as Exhibit
      B-3,
      and
      (iv)
      in
      all
      other cases, an Opinion of Counsel satisfactory to the Securities Administrator
      that such transfer may be made without such registration or qualification (which
      Opinion of Counsel shall not be an expense of the Trust Fund or of the
      Depositor, the Trustee, the Master Servicer, the Securities Administrator or
      the
      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.

     

    
      
        
        

      

      
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    Neither
      of the Depositor nor the Securities Administrator is obligated to register
      or
      qualify any such Certificates under the Securities 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, the Master
      Servicer, the Securities Administrator 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.

     

    (c) No
      transfer of a Class CE Certificate, Class P Certificate or a Residual
      Certificate 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” of a Plan within the meaning of
      the Department of Labor regulation promulgated at 29 C.F.R. § 2510.3-101 (“Plan
      Assets”) unless the Securities Administrator is provided with an Opinion of
      Counsel on which the Depositor, the Master Servicer, the Securities
      Administrator, the Trustee and the Servicers may rely, which establishes to
      the
      satisfaction of the Securities Administrator that the purchase of such
      Certificates is permissible under applicable law, will not constitute or result
      in any prohibited transaction under ERISA or Section 4975 of the Code and
      will not subject the Depositor, the Servicers, the Trustee, the Master Servicer,
      the Securities Administrator 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 Servicers, the Trustee,
      the Master Servicer, the Securities Administrator or the Trust Fund. An Opinion
      of Counsel will not be required in connection with the initial transfer of
      any
      such Certificate by the Depositor to an affiliate of the Depositor (in which
      case, the Depositor or any affiliate thereof shall have deemed to have
      represented that such affiliate is not a Plan or a Person investing Plan Assets)
      and the Securities Administrator shall be entitled to conclusively rely upon
      a
      representation (which, upon the request of the Securities Administrator, shall
      be a written representation) from the Depositor of the status of such transferee
      as an affiliate of the Depositor.

     

    For
      so
      long as the Supplemental Interest Trust is in existence, each beneficial owner
      of an Offered Certificate,
      or
      any
      interest therein, shall be deemed to have represented, by virtue of its
      acquisition or holding of the Offered Certificate, or interest therein, that
      either (i) it is not a Plan or (ii)(A) it is an accredited investor within
      the
      meaning of Prohibited Transaction Exemption 2002-41, as amended from time to
      time (the “Exemption”) and (B) the acquisition and holding of such Certificate
      and the separate right to receive payments from the Supplemental Interest Trust
      are eligible for the exemptive relief available under Prohibited Transaction
      Class Exemption (“PTCE”) 84-14 (for transactions by independent “qualified
      professional asset managers”), 91-38 (for transactions by bank collective
      investment funds), 90-1 (for transactions by insurance company pooled separate
      accounts), 95-60 (for transactions by insurance company general accounts) or
      96-23 (for transactions effected by “in-house asset managers”) in
      the
      case of an Offered Certificate or PTCE 95-60 in the case of a Class M-10
      Certificate
      or Class
      M-11 Certificate.

     

    Each
      Transferee of a Mezzanine Certificate or any interest therein that is acquired
      after the termination of the Supplemental Interest Trust will be deemed to
      have
      represented by virtue of its purchase or holding of such Certificate (or
      interest therein) that either (a) such Transferee is not a Plan or purchasing
      such Certificate with Plan Assets, (b) except in the case of a Class M-10
      Certificate or Class M-11 Certificate, it has acquired and is holding such
      Certificate in reliance on the Exemption, and that it understands that there
      are
      certain conditions to the availability of the Exemption including that such
      Certificate must be rated, at the time of purchase, not lower than “BBB-” (or
      its equivalent) by a Rating Agency or (c) the following conditions are
      satisfied: (i) such Transferee is an insurance company, (ii) the source of
      funds
      used to purchase or hold such Certificate (or interest therein) is an “insurance
      company general account” (as defined in PTCE 95-60, and (iii) the conditions set
      forth in Sections I and III of PTCE 95-60 have been satisfied.

     

    
      
        
        

      

      
        205

        
          

        

      

      
        
        

      

    

     

    If
      any
      Certificate or any interest therein is acquired or held in violation of the
      conditions described in this Section 6.02(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 certificate
      or
      interest therein was effected in violation of the conditions described in this
      Section 6.02(c) shall indemnify and hold harmless the Depositor, the
      Trustee, the Servicer, the Master Servicer, the Securities Administrator 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 Securities Administrator 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:

     

    (A) 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.

     

    (B) In
      connection with any proposed Transfer of any Ownership Interest in a Residual
      Certificate, the Securities Administrator 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
      B-4)
      from
      the proposed Transferee, in form and substance satisfactory to the Securities
      Administrator, 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 6.02(d) and agrees to be bound by
      them.

     

    
      
        
        

      

      
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    (C) Notwithstanding
      the delivery of a Transfer Affidavit and Agreement by a proposed Transferee
      under clause (B) above, if an authorized officer of the Securities Administrator
      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 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 B-2)
      to
      the Securities Administrator 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
      Securities Administrator 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
      Securities Administrator 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 Securities
      Administrator as a condition to such registration. In addition, no Transfer
      of a
      Residual Certificate shall be made unless the Securities Administrator shall
      have received a representation letter from the Transferee of such Certificate
      to
      the effect that such Transferee is a Permitted Transferee.

     

    (iii) (A)
      If
      any purported Transferee shall become a Holder of a Residual Certificate in
      violation of the provisions of this Section 6.02(d), 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 Securities Administrator shall
      be under no liability to any Person for any registration of Transfer of a
      Residual Certificate that is in fact not permitted by this Section 6.02(d)
      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 6.02(d) 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 Securities Administrator shall have the right, without
      notice to the holder or any prior holder of such Residual Certificate, to sell
      such Residual Certificate to a purchaser selected by the Securities
      Administrator on such terms as the Securities Administrator may choose. Such
      purported Transferee shall promptly endorse and deliver each Residual
      Certificate in accordance with the instructions of the Securities Administrator.
      Such purchaser may be the Securities Administrator itself or any Affiliate
      of
      the Securities Administrator. The proceeds of such sale, net of the commissions
      (which may include commissions payable to the Securities Administrator or its
      Affiliates), expenses and taxes due, if any, will be remitted by the Securities
      Administrator 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
      Securities Administrator, and the Securities Administrator shall not be liable
      to any Person having an Ownership Interest in a Residual Certificate as a result
      of its exercise of such discretion.

     

    
      
        
        

      

      
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    (iv) The
      Securities Administrator 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 charged or collected by
      the
      Securities Administrator.

     

    (v) The
      provisions of this Section 6.02(d) set forth prior to this subsection (v)
      may be modified, added to or eliminated, provided that there shall have been
      delivered to the Securities Administrator at the expense of the party seeking
      to
      modify, add to or eliminate any such provision the following:

     

    (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 Securities
      Administrator, 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, as the case may be,
      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.

     

    
      
        
        

      

      
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    (e) No
      transfer of the Class CE Certificates shall be made unless the transferee of
      such Certificates provides to the Securities Administrator the appropriate
      tax
      certification form (i.e., IRS Form W-9 or IRS Form W-8BEN, W-8IMY, W-8EXP or
      W-8ECI, as applicable (or any successor form thereto)), as a condition to such
      transfer and agrees to update such forms (i) upon expiration of any such form,
      (ii) as required under then applicable U.S. Treasury regulations and (iii)
      promptly upon learning that any IRS Form W-9 or IRS Form W-8BEN, W-8IMY, W-8EXP
      or W-8ECI, as applicable (or any successor form thereto), has become obsolete
      or
      incorrect, each as a condition to such transfer so long as they are in physical
      form. Upon receipt of any such tax certification form from a transferee of
      any
      Class CE Certificate, the Securities Administrator shall provide a copy of
      such
      tax certification form to the Supplemental Interest Trust Trustee so long as
      the
      Securities Administrator is permitted to provide such tax certification. The
      Supplemental Interest Trust Trustee shall provide to the Swap Provider a copy
      of
      any such tax certification form received from the Securities Administrator
      so
      long as the Securities Administrator is permitted to provide such tax
      certification. The
      initial Holder of the Class CE Certificates shall provide to the Securities
      Administrator on the Closing Date an IRS Form W-9.

     

    (f) Subject
      to the preceding subsections, upon surrender for registration of transfer of
      any
      Certificate at any office or agency of the Securities Administrator maintained
      for such purpose pursuant to Section 9.11, the Securities Administrator
      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.

     

    (g) 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 Securities Administrator maintained
      for
      such purpose pursuant to Section 9.11. 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 transfer or exchange shall (if so required by the Securities Administrator)
      be duly endorsed by, or be accompanied by a written instrument of transfer
      in
      the form satisfactory to the Securities Administrator 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 three separate
      certificates, each representing such holder's respective Percentage Interest
      in
      the Class R-I Interest, the Class R-II Interest and the Class R-III Interest,
      respectively, in each case that was evidenced by the Class R Certificate being
      exchanged.

     

    (h) No
      service charge to the Certificateholders shall be made for any transfer or
      exchange of 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 Certificates.

     

    (i) All
      Certificates surrendered for transfer and exchange shall be canceled and
      destroyed by the Securities Administrator in accordance with its customary
      procedures.

     

    
      
        
        

      

      
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    SECTION
      6.03. Mutilated,
      Destroyed, Lost or Stolen Certificates.

     

    If
      (i)
      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 of the ownership thereof,
      and
      (ii) there is delivered to the Securities Administrator such security or
      indemnity as may be required by it to save it harmless, then, in the absence
      of
      actual knowledge by the Securities Administrator that such Certificate has
      been
      acquired by a protected 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 the same Class
      and
      of like denomination and Percentage Interest. Upon the issuance of any new
      Certificate under this Section, the Securities Administrator may require the
      payment of a sum sufficient to cover any tax or other governmental charge that
      may be imposed in relation thereto and any other expenses (including the fees
      and expenses of the Securities Administrator) 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.

     

    SECTION
      6.04. Persons
      Deemed Owners.

     

    The
      Depositor, the Servicers, the Trustee, the Master Servicer, the Securities
      Administrator 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 5.01 and for all other
      purposes whatsoever, and none of the Depositor, the Servicers, the Trustee,
      the
      Master Servicer, the Securities Administrator or any agent of any of them shall
      be affected by notice to the contrary.

     

    SECTION
      6.05. Certain
      Available Information.

     

    
      
        
        

      

      
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    On
      or
      prior to the date of the first sale of any Class M-10 Certificate, Class M-11
      Certificate, Class CE Certificate, Class P Certificate or Residual Certificate
      to an Independent third party, the Depositor shall provide to the Securities
      Administrator ten copies of any private placement memorandum or other disclosure
      document used by the Depositor in connection with the offer and sale of such
      Certificate. 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 Securities Administrator, the Depositor promptly shall inform
      the
      Securities Administrator of such event and shall deliver to the Securities
      Administrator ten copies of the private placement memorandum or disclosure
      document, as revised, amended or supplemented. The Securities Administrator
      shall maintain at its office as set forth in Section 12.05 hereof and shall
      make available free of charge during normal business hours for review by any
      Holder of a Certificate or any Person identified to the Securities Administrator
      as a prospective transferee of a Certificate, originals or copies of the
      following items: (i) in the case of a Holder or prospective transferee of a
      Class M-10 Certificate, Class M-11 Certificate, Class CE Certificate, Class
      P
      Certificate or Residual Certificate, the related private placement memorandum
      or
      other disclosure document relating to such Class of Certificates, in the form
      most recently provided to the Securities Administrator; 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 5.02 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 and (C) any copies of all
      Officers’ Certificates of the Servicer since the Closing Date delivered to the
      Master Servicer to evidence such Person’s determination that any P&I Advance
      or Servicing Advance was, or if made, would be a Nonrecoverable P&I Advance
      or Nonrecoverable Servicing Advance. Copies and mailing of any and all of the
      foregoing items will be available from the Securities Administrator upon request
      at the expense of the Person requesting the same.

     

    
      
        
        

      

      
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    ARTICLE
      VII

     

    THE
      DEPOSITOR, THE SERVICER AND THE MASTER SERVICER

     

    SECTION
      7.01. Liability
      of the Depositor, the Servicer and the Master Servicer.

     

    The
      Depositor, the Servicer and the Master 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,
      Servicer and Master Servicer and undertaken hereunder by the Depositor, the
      Servicer and the Master Servicer herein. References to the Servicer in this
      Article VII (other than with respect to Sections 7.08, 7.09 and 7.10) shall
      be
      deemed to refer to Countrywide.

     

    SECTION
      7.02. Merger
      or
      Consolidation of the Depositor, the Servicer or the Master 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 partnership under the laws of the jurisdiction of its formation. Subject
      to the following paragraph, the Master Servicer will keep in full effect its
      existence, rights and franchises as a national banking association. The
      Depositor, the Servicer and the Master 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, the Servicer or the Master 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, the Servicer or the Master Servicer shall be a party,
      or
      any Person succeeding to the business of the Depositor, the Servicer or the
      Master Servicer, shall be the successor of the Depositor, the Servicer or the
      Master Servicer, as the case may be, hereunder, without the execution or filing
      of any paper or any further act on the part of any of the parties hereto,
      anything herein to the contrary notwithstanding; provided, however, that any
      successor to the Servicer or the Master Servicer shall meet the eligibility
      requirements set forth in clauses (i) and (iii) of the last paragraph of
      Section 8.02(a) or Section 7.06 of this Agreement.

     

    SECTION
      7.03. Limitation
      on Liability of the Depositor, the Servicer, the Master Servicer and
      Others.

     

    
      
        
        

      

      
        212

        
          

        

      

      
        
        

      

    

     

    None
      of
      the Depositor, the Servicer, the Securities Administrator, the Master Servicer
      or any of the directors, officers, employees or agents of the Depositor, the
      Servicer or the Master Servicer shall be under any liability to the Trust Fund
      or the Certificateholders for any action taken or for refraining from the taking
      of any action in good faith pursuant to this Agreement or for errors in
      judgment; provided, however, that this provision shall not protect the
      Depositor, the Servicer, the Securities Administrator, the Master Servicer
      or
      any such person against any breach of warranties, representations or covenants
      made herein or against any specific liability imposed on any such Person
      pursuant hereto or against any liability which would otherwise be imposed by
      reason of willful misfeasance, bad faith or gross negligence in the performance
      of duties or by reason of reckless disregard of obligations and duties
      hereunder. The Depositor, the Servicer, the Securities Administrator, the Master
      Servicer and any director, officer, employee or agent of the Depositor, the
      Servicer, the Securities Administrator and the Master 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,
      Countrywide, the Securities Administrator, the Master Servicer and any director,
      officer, employee or agent of the Depositor, Countrywide, the Securities
      Administrator or the Master Servicer shall be indemnified and held harmless
      by
      the Trust Fund against any loss, liability or expense incurred in connection
      with any legal action relating to this Agreement, the Certificates or any Credit
      Risk Management Agreement or any loss, liability or expense incurred (including,
      without limitation, any liability attributable to it as a result of the acts
      or
      omissions of New Century or any prior servicer or the failure of New Century
      or
      any prior servicer to perform in accordance with the Servicing Agreement;
      provided, however, that the Trust Fund shall have no obligation to indemnify
      Countrywide for any such acts or omissions of New Century or any prior servicer
      unless and until the Countrywide has first sought (employing commercially
      reasonable efforts) indemnification from New Century or such prior servicer)
      other than by reason of willful misfeasance, bad faith or gross negligence
      in
      the performance of duties hereunder or by reason of reckless disregard of
      obligations and duties hereunder. None of the Depositor, the Servicer, the
      Securities Administrator or the Master Servicer shall be under any obligation
      to
      appear in, prosecute or defend any legal action unless such action is related
      to
      its respective duties under this Agreement and, in its opinion, does not involve
      it in any expense or liability; provided, however, that each of the Depositor,
      the Servicer, the Securities Administrator and the Master 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 (except
      any loss, liability or expense incurred by reason of willful misfeasance, bad
      faith or gross negligence in the performance of duties hereunder or by reason
      of
      reckless disregard of obligations and duties hereunder) shall be expenses,
      costs
      and liabilities of the Trust Fund, and the Depositor, the Servicer, the
      Securities Administrator and the Master Servicer shall be entitled to be
      reimbursed therefor from the Collection Accounts or the Distribution Account
      as
      and to the extent provided in Article III and Article IV, any such right of
      reimbursement being prior to the rights of the Certificateholders to receive
      any
      amount in the Collection Accounts and the Distribution Account.

     

    Notwithstanding
      anything to the contrary contained herein, the Servicer shall not be liable
      for
      any actions or inactions prior to the Cut-off Date of any prior servicer of
      the
      related Mortgage Loans and the Master Servicer shall not be liable for any
      action or inaction of the Servicer, except to the extent expressly provided
      herein, or the Credit Risk Management Agreement.

     

    
      
        
        

      

      
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    SECTION
      7.04. Limitation
      on Resignation of the Servicer.

     

    (a) Except
      as
      expressly provided herein, the Servicer shall neither assign all or
      substantially all of its rights under this Agreement or the servicing hereunder
      nor delegate all or substantially all of its duties hereunder nor sell or
      otherwise dispose of all or substantially all of its property or assets without,
      in each case, the prior written consent of the Master Servicer, which consent
      shall not be unreasonably withheld; provided, that in each case, there must
      be
      delivered to the Trustee and the Master Servicer a letter from each Rating
      Agency to the effect that such transfer of servicing or sale or disposition
      of
      assets will not result in a qualification, withdrawal or downgrade of the
      then-current rating of any of the Certificates. Notwithstanding the foregoing,
      the Servicer, without the consent of the Trustee or the Master Servicer, may
      retain third-party contractors to perform certain servicing and loan
      administration functions, including without limitation hazard insurance
      administration, tax payment and administration, flood certification and
      administration, collection services and similar functions, provided, however,
      that the retention of such contractors by the Servicer shall not limit the
      obligation of the Servicer to service the related Mortgage Loans pursuant to
      the
      terms and conditions of this Agreement. The Servicer shall not resign from
      the
      obligations and duties hereby imposed on it except (i) upon determination that
      its duties hereunder are no longer permissible under applicable law, or (ii)
      upon the Servicer’s written proposal of a successor servicer reasonably
      acceptable to each of the Sponsor, the Depositor and the Master Servicer. No
      such resignation under clause (i) above shall become effective unless evidenced
      by an Opinion of Counsel to such effect obtained at the expense of the Servicer
      and delivered to the Trustee and the Rating Agencies. No such resignation of
      the
      Servicer under clause (ii) shall be effective unless:

     

    (i) the
      proposed successor Servicer is (1) an affiliate of the Master Servicer that
      services mortgage loans similar to the Mortgage Loans in the jurisdictions
      in
      which the related Mortgaged Properties are located or (2) the proposed successor
      Servicer has a rating of at least “Above Average” by S&P and either a rating
      of at least “RPS2” by Fitch or a rating of at least “SQ2” by
      Moody’s;

     

    (ii) the
      Rating Agencies have confirmed to the Trustee that the appointment of the
      proposed successor servicer as the servicer under this Agreement will not result
      in the reduction or withdrawal of the then current ratings of any of the
      Certificates; and

     

    (iii) the
      proposed successor Servicer has a net worth of at least
      $25,000,000.

     

    Notwithstanding
      anything to the contrary, no resignation of the Servicer shall become effective
      until the Master Servicer or a successor Servicer shall have assumed the
      Servicer’s responsibilities, duties, liabilities (other than those liabilities
      arising prior to the appointment of such successor) and obligations under this
      Agreement.

     

    (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 3.02, 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.

     

    
      
        
        

      

      
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    (c) Notwithstanding
      anything to the contrary herein, the Servicer may pledge or assign as collateral
      all its rights, title and interest under this Agreement to a lender (the
“Servicing Rights Lender”), provided, that:

     

    (i) upon
      a
      Servicer Event of Default and receipt of a notice of termination by the
      Servicer, the Servicing Rights Lender may direct the Servicer or its designee
      to
      appoint a successor Servicer pursuant to the provisions, and subject to the
      conditions, set forth in Section 8.02 regarding such appointment of a
      successor Servicer;

     

    (ii) the
      Servicing Rights Lender’s rights are subject to this Agreement; and

     

    (iii) the
      Servicer shall remain subject to termination as servicer under this Agreement
      pursuant to the terms hereof.

     

    SECTION
      7.05. Limitation
      on Resignation of the Master Servicer.

     

    The
      Master Servicer shall not resign from the obligations and duties hereby imposed
      on it except upon determination that its duties hereunder are no longer
      permissible under applicable law. Any such determination pursuant to the
      preceding sentence permitting the resignation of the Master Servicer shall
      be
      evidenced by an Opinion of Counsel to such effect obtained at the expense of
      the
      Master Servicer and delivered to the Trustee and the Rating Agencies. No
      resignation of the Master Servicer shall become effective until the Trustee
      or a
      successor Master Servicer meeting the criteria specified in Section 7.06
      shall have assumed the Master Servicer’s responsibilities, duties, liabilities
      (other than those liabilities arising prior to the appointment of such
      successor) and obligations under this Agreement.

     

    SECTION
      7.06. Assignment
      of Master Servicing.

     

    The
      Master Servicer may sell and assign its rights and delegate its duties and
      obligations in its entirety as Master Servicer under this Agreement; provided,
      however, that: (i) the purchaser or transferee accept in writing such assignment
      and delegation and assume the obligations of the Master Servicer hereunder
      (a)
      shall have a net worth of not less than $25,000,000 (unless otherwise approved
      by each Rating Agency pursuant to clause (ii) below); (b) shall be reasonably
      satisfactory to the Trustee (as evidenced in a writing signed by the Trustee);
      and (c) shall execute and deliver to the Trustee an agreement, in form and
      substance reasonably satisfactory to the Trustee, which contains an assumption
      by such Person of the due and punctual performance and observance of each
      covenant and condition to be performed or observed by it as master servicer
      under this Agreement, any custodial agreement from and after the effective
      date
      of such agreement; (ii) each Rating Agency shall be given prior written notice
      of the identity of the proposed successor to the Master Servicer and each Rating
      Agency’s rating of the Certificates in effect immediately prior to such
      assignment, sale and delegation will not be downgraded, qualified or withdrawn
      as a result of such assignment, sale and delegation, as evidenced by a letter
      to
      such effect delivered to the Master Servicer and the Trustee; and (iii) the
      Master Servicer assigning and selling the master servicing shall deliver to
      the
      Trustee an Officer’s Certificate and an Opinion of Independent counsel, each
      stating that all conditions precedent to such action under this Agreement have
      been completed and such action is permitted by and complies with the terms
      of
      this Agreement. No such assignment or delegation shall affect any liability
      of
      the Master Servicer arising out of acts or omissions prior to the effective
      date
      thereof.

     

    
      
        
        

      

      
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    SECTION
      7.07. Rights
      of
      the Depositor in Respect of the Servicer and the Master Servicer.

     

    Each
      of
      the Master Servicer and the Servicer shall afford (and any Sub-Servicing or
      Sub-Contracting Agreement shall provide that each Sub-Servicer or Subcontractor,
      as applicable, shall afford) the Depositor and the Trustee, upon reasonable
      notice, during normal business hours, access to all records maintained by the
      Master Servicer or the Servicer (and any such Sub-Servicer or Subcontractor,
      as
      applicable) in respect of the Servicer’s rights and obligations hereunder and
      access to officers of the Master Servicer or the Servicer (and those of any
      such
      Sub-Servicer or Subcontractor, as applicable) responsible for such obligations,
      and the Master Servicer shall have access to all such records maintained by
      the
      Servicer and any Sub-Servicers or Subcontractors. Upon request, each of the
      Master Servicer and 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 Master Servicer’s or the Servicer’s capacity
      to perform its obligations under this Agreement as it possesses (and that any
      such Sub-Servicer or Subcontractor 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 Master Servicer’s or the Servicer’s written consent, except as
      required pursuant to this Agreement or to the extent that it is appropriate
      to
      do so (i) to its legal counsel, auditors, taxing authorities or other
      governmental agencies and the Certificateholders, (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) disclosure
      of any and all information that is or becomes publicly known, or information
      obtained by the Trustee from sources other than the Depositor, the Servicer
      or
      the Master Servicer, (iv) disclosure as required pursuant to this Agreement
      or
      (v) 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, the Servicer or the Master 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, shall use its
      best efforts to assure the confidentiality of any such disseminated non-public
      information. Nothing in this Section 7.07 shall limit the obligation of the
      Servicer to comply with any applicable law prohibiting disclosure of information
      regarding the Mortgagors and the failure of the Servicer to provide access
      as
      provided in this Section 7.07 as a result of such obligation shall not
      constitute a breach of this Section. Nothing in this Section 7.07 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 ship documents to any party
      unless provisions have been made for the reimbursement of the costs thereof.
      The
      Depositor may, but is not obligated to, enforce the obligations of the Master
      Servicer or the Servicer under this Agreement, and may, but is not obligated
      to,
      perform, or cause a designee to perform, any defaulted obligation of the Master
      Servicer or the Servicer under this Agreement, or exercise the rights of the
      Master Servicer or the Servicer under this Agreement; provided that neither
      the
      Master Servicer nor the Servicer shall be relieved of any of its obligations
      under this Agreement, as applicable, 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 Master Servicer or the
      Servicer and is not obligated to supervise the performance of the Master
      Servicer or the Servicer under this Agreement or otherwise.

     

    
      
        
        

      

      
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    SECTION
      7.08. Duties
      of
      the Credit Risk Manager. 

     

    For
      and
      on behalf of the Depositor, 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
      to the Credit Risk Manager pursuant to the Credit Risk Management Agreements,
      and the Credit Risk Manager shall look solely to the Servicers and/or Master
      Servicer for all information and data (including loss and delinquency
      information and data) relating to the servicing of the related Mortgage Loans.
      Upon any termination of the Credit Risk Manager or the appointment of a
      successor Credit Risk Manager, the Depositor shall give written notice thereof
      to the related Servicer, the Master Servicer, the Securities Administrator,
      the
      Trustee, and each Rating Agency. Notwithstanding the foregoing, the termination
      of the Credit Risk Manager pursuant to this Section shall not become
      effective until the appointment of a successor Credit Risk Manager. Each of
      the
      Trustee and the Servicers is hereby authorized to enter into any Credit Risk
      Management Agreement necessary to effect the foregoing.

     

    SECTION
      7.09. Limitation
      Upon Liability of the Credit Risk Manager. 

     

    Neither
      the Credit Risk Manager, nor any of its directors, officers, employees, or
      agents shall be under any liability to the Trustee, the Certificateholders,
      or
      the Depositor for any action taken or for refraining from the taking of any
      action made in good faith pursuant to this Agreement, in reliance upon
      information provided by the related Servicer under the related 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
      or
      bad faith in its performance of its duties. 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 related Servicer
      pursuant to the related Credit Risk Management Agreement in the performance
      of
      its duties thereunder and hereunder.

     

    SECTION
      7.10. Removal
      of the Credit Risk Manager. 

     

    
      
        
        

      

      
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    The
      Credit Risk Manager may be removed as Credit Risk Manager by Certificateholders
      holding not less than 66 2/3% of the
      Voting Rights in the Trust Fund, in the exercise of its or their sole
      discretion. The Certificateholders shall provide written notice of the Credit
      Risk Manager’s removal to the Trustee. Upon receipt of such notice, the Trustee
      shall provide written notice to the Credit Risk Manager of its removal, which
      shall be effective upon receipt of such notice by the Credit Risk Manager,
      with
      a copy to the Securities Administrator and the Master Servicer.

     

    
      
        
        

      

      
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    ARTICLE
      VIII

     

    DEFAULT

     

    SECTION
      8.01. Servicer
      Events of Default.

     

    (a) “Servicer
      Event of Default,” wherever used herein, means with respect to Countrywide or
      any successor, any one of the following events:

     

    (i) any
      failure by such Servicer to remit to the Securities Administrator for
      distribution to the Certificateholders any payment (other than a P&I Advance
      required to be made from its own funds on any Servicer Remittance Date pursuant
      to Section 5.03 of this Agreement) required to be made by such Servicer under
      the terms of the Certificates and this Agreement which continues unremedied
      for
      a period of one (1) Business Day after the date upon which written notice of
      such failure, requiring the same to be remedied, shall have been given to such
      Servicer by the Securities Administrator or the Master Servicer (in which case
      notice shall be provided by telecopy), or to such Servicer, the Securities
      Administrator and the Master Servicer by the Holders of Certificates entitled
      to
      at least 25% of the Voting Rights; or

     

    (ii) any
      failure on the part of such Servicer duly to observe or perform in any material
      respect any other of the covenants or agreements on the part of such Servicer
      contained in this Agreement, or the material breach by such Servicer of any
      representation and warranty contained in Section 2.05 of this Agreement, which
      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 Servicer by the Depositor or the Trustee or to such Servicer,
      the Depositor and the Trustee by the Holders of Certificates entitled to at
      least 25% of the Voting Rights; provided, however, that in the case of a failure
      that cannot be cured within thirty (30) days, the cure period may be extended
      for an additional thirty (30) days if such Servicer can demonstrate to the
      reasonable satisfaction of the Trustee that such Servicer is diligently pursuing
      remedial action; 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 such Servicer and
      such decree or order shall have remained in force undischarged or unstayed
      for a
      period of ninety (90) days; or

     

    (iv) such
      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

     

    
      
        
        

      

      
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    (v) such
      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) failure
      by such Servicer to duly perform its obligations under Sections 3.17, 3.18
      or 3.19(a) as set forth in those Sections which continues unremedied for the
      period set forth in such sections; or

     

    (vii) any
      failure of such Servicer to make any P&I Advance on any Servicer Remittance
      Date required to be made from its own funds pursuant to Section 5.03 which
      continues unremedied until 3:00 p.m. New York time on the Business Day
      immediately following the Servicer Remittance Date; or

     

    (viii) in
      the
      event that Countrywide is no longer Servicer of any of the Mortgage Loans,
      failure of the Servicer to maintain at least an “average” rating from the Rating
      Agencies; or

     

    (ix) with
      respect to New Century, an Event of Default under the Servicing
      Agreement.

     

    If
      the
      Servicer Event of Default described in clauses (i) through (vi) or (viii) of
      this Section shall occur, then, and in each and every such case, so long as
      the
      Servicer Event of Default shall not have been remedied, the Depositor or the
      Trustee may, and at the written direction of the Holders of Certificates
      entitled to at least 51% of Voting Rights, the Trustee shall, by notice in
      writing to the defaulting Servicer (and to the Depositor if given by the Trustee
      or to the Trustee if given by the Depositor) with a copy to the Master Servicer
      and each Rating Agency, terminate all of the rights and obligations of the
      defaulting Servicer in its capacity as Servicer under this Agreement, to the
      extent permitted by law, and in and to the related Mortgage Loans and the
      proceeds thereof. If the Servicer Event of Default described in clause (vii)
      hereof shall occur, the Trustee shall, by notice in writing to the defaulting
      Servicer, the Depositor and the Master Servicer, terminate all of the rights
      and
      obligations of the defaulting Servicer in its capacity as Servicer under this
      Agreement and in and to the related Mortgage Loans and the proceeds thereof.
      Subject to Section 8.02 of this Agreement, on or after the receipt by the
      defaulting Servicer of such written notice, all authority and power of the
      defaulting Servicer under this Agreement whether with respect to the
      Certificates (other than as a Holder of any Certificate) or the related Mortgage
      Loans or otherwise, shall pass to and be vested in the Master Servicer, pursuant
      to and under this Section, and, without limitation, the Master Servicer is
      hereby authorized and empowered, as attorney-in-fact or otherwise, to execute
      and deliver, on behalf of and at the expense of the defaulting 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 related Mortgage Loans and related documents, or otherwise. The defaulting
      Servicer agrees promptly (and in any event no later than ten (10) Business
      Days
      subsequent to such notice) to provide the Master Servicer with all documents
      and
      records requested by it to enable it to assume the defaulting Servicer’s
      functions under this Agreement, and to cooperate with the Master Servicer in
      effecting the termination of the defaulting Servicer’s responsibilities and
      rights under this Agreement, including, without limitation, the transfer within
      one (1) Business Day to the Master Servicer for administration by it of all
      cash
      amounts which at the time shall be or should have been credited by the
      defaulting Servicer to the Related Collection Account held by or on behalf
      of
      the defaulting Servicer or thereafter be received with respect to the related
      Mortgage Loans or any related REO Property (provided, however, that the
      defaulting 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 P&I Advances, Servicing Advances, accrued and unpaid
      Servicing Fees or otherwise, and shall continue to be entitled to the benefits
      of Section 7.03 of this Agreement, notwithstanding any such termination,
      with respect to events occurring prior to such termination). Reimbursement
      of
      unreimbursed P&I Advances, Servicing Advances and accrued and unpaid
      Servicing Fees shall be made on a first in, first out (“FIFO”) basis no later
      than the Servicer Remittance Date. For purposes of this Section 8.01(a),
      the Trustee shall not be deemed to have knowledge of the 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 the Servicer Event of Default
      is received by the Trustee at its Corporate Trust Office and such notice
      references the Certificates, the Trust or this Agreement. The Trustee shall
      promptly notify the Master Servicer and the Rating Agencies of the occurrence
      of
      the Servicer Event of Default of which it has knowledge as provided
      above.

     

    
      
        
        

      

      
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    The
      Master Servicer shall be entitled to be reimbursed by the defaulting Servicer
      (or from amounts on deposit in the Distribution Account if the defaulting
      Servicer is unable to fulfill its obligations hereunder) for all reasonable
      out-of-pocket or third party costs associated with the transfer of servicing
      from the defaulting Servicer, including without limitation, any reasonable
      out-of-pocket or third party 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 to correct any
      errors or insufficiencies in the servicing data or otherwise to enable the
      Master Servicer to service the related Mortgage Loans properly and effectively,
      upon presentation of reasonable documentation of such costs and
      expenses.

     

    (b) “Master
      Servicer Event of Default,” wherever used herein, means any one of the following
      events:

     

    (i) any
      failure on the part of the Master Servicer duly to observe or perform in any
      material respect any other of the covenants or agreements on the part of the
      Master Servicer contained in this Agreement, or the breach by the Master
      Servicer of any representation and warranty contained in Section 2.04,
      which continues unremedied for a period of 30 days after the date on which
      written notice of such failure, or as otherwise set forth in this Agreement
      requiring the same to be remedied, shall have been given to the Master Servicer
      by the Depositor or the Trustee or to the Master Servicer, the Depositor and
      the
      Trustee by the Holders of Certificates entitled to at least 25% of the Voting
      Rights; or

     

    (ii) 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 Master Servicer
      and such decree or order shall have remained in force undischarged or unstayed
      for a period of ninety (90) days; or

     

    
      
        
        

      

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

     

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

     

    (v) failure
      by the Master Servicer to duly perform, within the required time period, its
      obligations under Sections 4.15, 4.16, 4.17 or 4.18.

     

    If
      a
      Master Servicer Event of Default shall occur, then, and in each and every such
      case, so long as such Master Servicer Event of Default shall not have been
      remedied, the Depositor or the Trustee may, and at the written direction of
      the
      Holders of Certificates entitled to at least 51% of Voting Rights, the Trustee
      shall, by notice in writing to the Master Servicer (and to the Depositor if
      given by the Trustee or to the Trustee if given by the Depositor) with a copy
      to
      each Rating Agency, terminate all of the rights and obligations of the Master
      Servicer in its capacity as Master Servicer under this Agreement, to the extent
      permitted by law, and in and to the Mortgage Loans and the proceeds thereof.
      On
      or after the receipt by the Master Servicer of such written notice, all
      authority and power of the Master Servicer under this Agreement, whether with
      respect to the Certificates (other than as a Holder of any Certificate) or
      the
      Mortgage Loans or otherwise including, without limitation, the compensation
      payable to the Master Servicer under this Agreement, 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 Master 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. The Master 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 Master Servicer’s functions under this Agreement,
      and to cooperate with the Trustee in effecting the termination of the Master
      Servicer’s responsibilities and rights under this Agreement (provided, however,
      that the Master 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 and shall continue to be entitled to the benefits of
      Section 7.03 of this Agreement, notwithstanding any such termination, with
      respect to events occurring prior to such termination). For purposes of this
      Section 8.01(b), the Trustee shall not be deemed to have knowledge of a
      Master 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
      Master Servicer Event of Default is received by the Trustee and such notice
      references the Certificates, the Trust or this Agreement. The Trustee shall
      promptly notify the Rating Agencies of the occurrence of a Master Servicer
      Event
      of Default of which it has knowledge as provided above.

     

    
      
        
        

      

      
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    On
      and
      after the time the Master Servicer receives a notice of termination, the Trustee
      shall be the successor in all respects to the Master Servicer (and, if
      applicable, the Securities Administrator) in its capacity as Master Servicer
      (and, if applicable, the Securities Administrator) 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 Master
      Servicer under this Agreement, the responsibilities, duties and liabilities
      contained in Section 2.03 and the obligation to deposit amounts in respect
      of
      losses pursuant to Section 3.10) by the terms and provisions hereof including,
      without limitation, the Master Servicer’s obligations to make P&I Advances
      no later than each Distribution Date pursuant to Section 5.03; 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 P&I Advances pursuant to Section 5.03; and
      provided further, that any failure to perform such duties or responsibilities
      caused by the Master Servicer’s failure to provide information required by
      Section 8.01 shall not be considered a default by the Trustee as successor
      to
      the Master Servicer hereunder and neither the Trustee nor any other successor
      master servicer shall be liable for any acts or omissions of the terminated
      servicer. As compensation therefor, the Trustee shall be entitled to the Master
      Servicing Fee and all funds relating to the Loans, investment earnings on the
      Distribution Account and all other remuneration to which the Master Servicer
      would have been entitled if it had continued to act hereunder.

     

    Notwithstanding
      the foregoing, the Trustee may, if it shall be unwilling to continue to act,
      or
      shall, if it is unable to so act, petition a court of competent jurisdiction
      to
      appoint, or appoint on its own behalf, any established housing and home finance
      institution servicer, master servicer, servicing or mortgage servicing
      institution having a net worth of not less than $25,000,000 and meeting such
      other standards for a successor master servicer as are set forth in this
      Agreement, as the successor to such Master Servicer in the assumption of all
      of
      the responsibilities, duties or liabilities of a master servicer.

     

    To
      the
      extent that the costs and expenses of the Trustee related to the termination
      of
      the Master Servicer, appointment of a successor Master Servicer or the transfer
      and assumption of the master servicing by the Trustee (including, without
      limitation, (i) all legal costs and expenses and all due diligence costs and
      expenses associated with an evaluation of the potential termination of the
      Master Servicer as a result of a Master Servicer Event of Default and (ii)
      all
      costs and expenses associated with the complete transfer of the master
      servicing, including all servicing files and all servicing data and the
      completion, correction or manipulation of such servicing data as may be required
      by the successor Master Servicer to correct any errors or insufficiencies in
      the
      servicing data or otherwise to enable the successor Master Servicer to master
      service the Mortgage Loans in accordance with this Agreement) are not fully
      and
      timely reimbursed by the terminated Master Servicer, the Trustee shall be
      entitled to reimbursement of such costs and expenses from the Distribution
      Account.

     

    
      
        
        

      

      
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    Neither
      the Trustee nor any other successor master servicer shall be deemed to be in
      default hereunder by reason of any failure to make, or any delay in making,
      any
      distribution hereunder or any portion thereof or any failure to perform, or
      any
      delay in performing, any duties or responsibilities hereunder, in either case
      caused by the failure of the Master Servicer to deliver or provide, or any
      delay
      in delivering or providing, any cash, information, documents or records to
      it.

     

    SECTION
      8.02. Master
      Servicer to Act; Appointment of Successor.

     

    (a) On
      and
      after the time a Servicer receives a notice of termination, the Master Servicer
      shall be the successor in all respects to the related Servicer in its capacity
      as the Servicer under this Agreement or the Servicing Agreement, as applicable,
      and the transactions set forth or provided for herein or therein, and all the
      responsibilities, duties and liabilities relating thereto and arising thereafter
      shall be assumed by the Master Servicer (except for any representations or
      warranties of the Servicer under this Agreement or the Servicing Agreement,
      as
      applicable, the responsibilities, duties and liabilities contained in Section
      2.03 of this Agreement and the obligation of the related Servicer to deposit
      amounts in respect of losses pursuant to Section 3.10(b) of this Agreement
      or
      the Servicing Agreement, as applicable) by the terms and provisions hereof
      including, without limitation, the related Servicer’s obligations to make
      P&I Advances pursuant to Section 5.03 of this Agreement or the Servicing
      Agreement, as applicable; provided, however, that if the Master Servicer is
      prohibited by law or regulation from obligating itself to make advances
      regarding delinquent mortgage loans, then the Master Servicer shall not be
      obligated to make P&I Advances pursuant to Section 5.03 of this Agreement;
      and provided further, that any failure to perform such duties or
      responsibilities caused by the related Servicer’s failure to provide information
      required by Section 8.01 of this Agreement or the Servicing Agreement, as
      applicable, shall not be considered a default by the Master Servicer as
      successor to the related Servicer hereunder or under the Servicing Agreement,
      as
      applicable; provided, however, that (1) it is understood and acknowledged by
      the
      parties hereto that there will be a period of transition (not to exceed ninety
      (90) days) before the actual servicing functions can be fully transferred to
      the
      Master Servicer or any successor Servicer appointed in accordance with the
      following provisions and (2) any failure to perform such duties or
      responsibilities caused by the related Servicer’s failure to provide information
      required by Section 8.01 of this Agreement or the Servicing Agreement shall
      not
      be considered a default by the Master Servicer as successor to the related
      Servicer. As compensation therefor, the Master Servicer shall be entitled to
      the
      Servicing Fee and all funds relating to the related Mortgage Loans to which
      the
      terminated Servicer would have been entitled if it had continued to act
      hereunder. Notwithstanding the above and subject to the immediately following
      paragraph, the Master Servicer may, if it shall be unwilling to so act, or
      shall, if it is unable to so act promptly appoint or petition a court of
      competent jurisdiction to appoint, a Person that satisfies the eligibility
      criteria set forth below as the successor to the terminated Servicer under
      this
      Agreement or the Servicing Agreement, as applicable, in the assumption of all
      or
      any part of the responsibilities, duties or liabilities of the terminated
      Servicer under this Agreement.

     

    Notwithstanding
      anything herein to the contrary, in no event shall the Trustee or the Master
      Servicer be liable for any Servicing Fee or Master Servicing Fee, as applicable,
      or for any differential in the amount of the Servicing Fee or Master Servicing
      Fee, as applicable, or paid hereunder and the amount necessary to induce any
      successor Servicer or successor Master Servicer to act as successor Servicer
      or
      successor Master Servicer under this Agreement and the transactions set forth
      or
      provided for herein.

     

    
      
        
        

      

      
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    Any
      successor Servicer appointed under this Agreement must (i) be an established
      mortgage loan servicing institution that is a Fannie Mae and Freddie Mac
      approved seller/servicer, (ii) be approved by each Rating Agency by a written
      confirmation from each Rating Agency that the appointment of such successor
      Servicer would not result in the reduction or withdrawal of the then current
      ratings of any outstanding Class of Certificates, (iii) have a net worth of
      not
      less than $25,000,000 and (iv) assume all the responsibilities, duties or
      liabilities of the Servicer (other than liabilities of the Servicer hereunder
      incurred prior to termination of the Servicer under Section 8.01 herein)
      under this Agreement as if originally named as a party to this
      Agreement.

     

    (b) 
      (1) All
      servicing transfer costs (including, without limitation, servicing transfer
      costs of the type described in Section 8.02(a) of this Agreement and
      incurred by the Trustee, the Master Servicer and any successor Servicer under
      paragraph (b)(2) below) in connection with the termination of a Servicer shall
      be paid by the terminated Servicer upon presentation of reasonable documentation
      of such costs, and if such predecessor or initial Servicer, as applicable,
      defaults in its obligation to pay such costs, the successor Servicer, the Master
      Servicer and the Trustee shall be entitled to reimbursement therefor from the
      assets of the Trust Fund.

     

    (2)
      No
      appointment of a successor to the Servicer under this Agreement or the Servicing
      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 the
      related 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 or thereunder. 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 related
      Servicer under this Agreement, the Master Servicer shall act in such capacity
      as
      hereinabove provided.

     

    SECTION
      8.03. Notification
      to Certificateholders.

     

    (a) Upon
      any
      termination of the Master Servicer or a Servicer pursuant to
      Section 8.01(a) or (b) of this Agreement, or any appointment of a successor
      to the Master Servicer or a Servicer pursuant to Section 8.02 of this
      Agreement, the Trustee shall give prompt written notice thereof to the
      Certificateholders at their respective addresses appearing in the Certificate
      Register.

     

    (b) Not
      later
      than the later of sixty (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 a Master Servicer Event of Default or five (5)
      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
      or Master Servicer Event of Default shall have been cured or
      waived.

     

    
      
        
        

      

      
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    SECTION
      8.04. Waiver
      of
      Servicer Events of Default.

     

    The
      Holders representing at least 66% of the Voting Rights evidenced by all Classes
      of Certificates affected by any default, Servicer Event of Default or Master
      Servicer Event of Default hereunder may waive such default, Servicer Event
      of
      Default or Master Servicer Event of Default; provided, however, that the
      Servicer Event of Default under clause (i) or (vii) of Section 8.01(a) of
      this Agreement may be waived only by all of the Holders of the Regular
      Certificates. Upon any such waiver of a default, Servicer Event of Default
      or
      Master Servicer Event of Default, such default, Servicer Event of Default or
      Master 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, Servicer Event of Default or Master Servicer
      Event of Default or impair any right consequent thereon except to the extent
      expressly so waived.

     

    
      
        
        

      

      
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    ARTICLE
      IX

     

    CONCERNING
      THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

     

    SECTION
      9.01. Duties
      of
      Trustee and Securities Administrator.

     

    The
      Trustee, prior to the occurrence of a Master Servicer Event of Default and
      after
      the curing or waiver of all Master Servicer Events of Default which may have
      occurred, and the Securities Administrator each undertake to perform such duties
      and only such duties as are specifically set forth in this Agreement as duties
      of the Trustee and the Securities Administrator, respectively. During the
      continuance of a Master Servicer Event of Default, 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 its 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.

     

    Each
      of
      the Trustee and the Securities Administrator, upon receipt of all resolutions,
      certificates, statements, opinions, reports, documents, orders or other
      instruments furnished to it, which are specifically required to be furnished
      pursuant to any provision of this Agreement, shall examine them to determine
      whether they conform to the requirements of this Agreement. If any such
      instrument is found not to conform to the requirements of this Agreement in
      a
      material manner, the Trustee or the Securities Administrator, as the case may
      be, shall take such action as it deems appropriate to have the instrument
      corrected, and if the instrument is not corrected to its satisfaction, the
      Securities Administrator will provide notice to the Trustee thereof and the
      Trustee will provide notice to the Certificateholders.

     

    The
      Trustee shall promptly remit to the related Servicer any complaint, claim,
      demand, notice or other document (collectively, the “Notices”) delivered to the
      Trustee as a consequence of the assignment of any Mortgage Loan hereunder and
      relating to the servicing of the Mortgage Loans; provided than any such notice
      (i) is delivered to the Trustee at its Corporate Trust Office, (ii) contains
      information sufficient to permit the Trustee to make a determination that the
      real property to which such document relates is a Mortgaged Property. The
      Trustee shall have no duty hereunder with respect to any Notice it may receive
      or which may be alleged to have been delivered to or served upon it unless
      such
      Notice is delivered to it or served upon it at its Corporate Trust Office and
      such Notice contains the information required pursuant to clause (ii) of the
      preceding sentence.

     

    No
      provision of this Agreement shall be construed to relieve the Trustee or the
      Securities Administrator from liability for its own negligent action, its own
      negligent failure to act or its own misconduct; provided, however,
      that:

     

    (i) Prior
      to
      the occurrence of a Master Servicer Event of Default, and after the curing
      or
      waiver of all such Master Servicer Events of Default which may have occurred
      with respect to the Trustee and at all times with respect to the Securities
      Administrator, the duties and obligations of the Trustee shall be determined
      solely by the express provisions of this Agreement, neither the Trustee nor
      the
      Securities Administrator shall 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 or the Securities Administrator and, in the absence of bad faith on
      the
      part of the Trustee or the Securities Administrator, respectively, the Trustee
      or the Securities Administrator, respectively, 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 or the Securities
      Administrator, respectively, that conform to the requirements of this
      Agreement;

     

    
      
        
        

      

      
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    (ii) Neither
      the Trustee nor the Securities Administrator shall be liable for an error of
      judgment made in good faith by a Responsible Officer or Responsible Officers
      of
      the Trustee or an officer or officers of the Securities Administrator,
      respectively, unless it shall be proved that the Trustee or the Securities
      Administrator, respectively, was negligent in ascertaining the pertinent facts;
      and

     

    (iii) Neither
      the Trustee nor the Securities Administrator shall 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 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 the Securities
      Administrator or exercising any trust or power conferred upon the Trustee or
      the
      Securities Administrator under this Agreement.

     

    SECTION
      9.02. Certain
      Matters Affecting Trustee and Securities Administrator.

     

    (a) Except
      as
      otherwise provided in Section 9.01 of this Agreement:

     

    (i) Before
      taking any action hereunder, the Trustee and the Securities Administrator may
      request and rely upon and shall be 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 and the Securities Administrator may consult with counsel of its
      selection and any advice of such counsel or 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;

     

    (iii) Neither
      the Trustee nor the Securities Administrator shall be under any obligation
      to
      exercise any of the trusts or powers vested in it by this Agreement or to
      institute, conduct or defend any litigation hereunder or in relation hereto
      at
      the request, order or direction of any of the Certificateholders, pursuant
      to
      the provisions of this Agreement, unless such Certificateholders shall have
      offered to the Trustee or the Securities Administrator, as the case may be,
      reasonable security or indemnity satisfactory to it against the costs, expenses
      and liabilities which may be incurred therein or thereby; nothing contained
      herein shall, however, relieve the Trustee of the obligation, upon the
      occurrence of a Master 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;

     

    
      
        
        

      

      
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    (iv) Neither
      the Trustee nor the Securities Administrator shall 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;

     

    (v) Prior
      to
      the occurrence of a Master Servicer Event of Default hereunder and after the
      curing or waiver of all Master Servicer Events of Default which may have
      occurred with respect to the Trustee and at all times with respect to the
      Securities Administrator, neither the Trustee nor the Securities Administrator
      shall be bound to make any investigation into the facts or matters stated in
      any
      resolution, certificate, statement, instrument, opinion, report, notice,
      request, consent, order, approval, bond or other paper or document, unless
      requested in writing 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 or the Securities Administrator of the costs,
      expenses or liabilities likely to be incurred by it in the making of such
      investigation is, in the opinion of the Trustee or the Securities Administrator,
      as applicable, not reasonably assured to the Trustee or the Securities
      Administrator by such Certificateholders, the Trustee or the Securities
      Administrator, as applicable, may require reasonable indemnity 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 or attorneys and the Trustee
      shall not be responsible for any misconduct or negligence on the part of any
      agent or attorney appointed with due care by it hereunder;

     

    (vii) The
      Trustee shall not be liable for any loss resulting from (a) the investment
      of
      funds held in the Collection Accounts, (b) the investment of funds held in
      the
      Distribution Account, (c) the investment of funds held in the Reserve Fund
      or
      (d) the redemption or sale of any such investment as therein
      authorized;

     

    (viii) The
      Trustee shall not be deemed to have notice of any default, Master Servicer
      Event
      of Default or Servicer Event of Default unless a Responsible Officer of the
      Trustee has actual knowledge thereof or unless written notice of any event
      which
      is in fact such a default is received by a Responsible Officer of the Trustee
      at
      the Corporate Trust Office of the Trustee, and such notice references the
      Certificates and this Agreement;

     

    (ix) The
      rights, privileges, protections, immunities and benefits given to the Trustee,
      including, without limitation, its right to be indemnified, are extended to,
      and
      shall be enforceable by, each agent, custodian and other Person employed to
      act
      hereunder; and

     

    
      
        
        

      

      
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    (x) Should
      the Trustee or the Securities Administrator deem the nature of any action
      required on its part to be unclear, the Trustee or the Securities Administrator
      may require, prior to taking such action, that it be provided by the Depositor
      with reasonable further instructions.

     

    (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 its name for the benefit of all the Holders of
      such
      Certificates, subject to the provisions of this Agreement.

     

    (c) The
      Supplemental Interest Trust Trustee is hereby directed to execute and deliver
      the Swap Agreement on behalf of Party B (as defined therein) and to exercise
      the
      rights, perform the obligations, and make the representations thereunder on
      behalf of Party B (as defined therein) and shall do so solely in its capacity
      as
      Supplemental Interest Trust Trustee and not in its individual capacity.

     

    The
      Trustee, in its capacity as Supplemental Interest Trust Trustee pursuant to
      the
      Swap Agreement, hereby directs the Securities Administrator and the Securities
      Administrator is hereby empowered under this Agreement to act on behalf of
      the
      Supplemental Interest Trust Trustee. Any funds payable by the Securities
      Administrator on behalf of the Supplemental Interest Trust Trustee and in
      connection with its obligations in respect of the Supplemental Interest Trust
      under the Swap Agreement, shall be paid from funds of the Supplemental Interest
      Trust in accordance with the terms and provisions of the Swap Agreement.
      Notwithstanding anything to the contrary contained herein or in the Swap
      Agreement, neither the Supplemental Interest Trust Trustee nor the Securities
      Administrator shall be required to make any payments from its own funds to
      the
      Swap Provider under the Swap Agreement. 

     

    The
      Securities Administrator, the Master Servicer, the Servicer, the Sponsor, the
      Depositor, the Trustee and the Certificateholders (by acceptance of their
      Certificates) acknowledge and agree that: (i) the Supplemental Interest Trust
      Trustee shall execute and deliver the Swap Agreement on behalf of Party B (as
      defined therein), (ii) the Supplemental Interest Trust Trustee shall exercise
      the rights, perform the obligations, and make the representations of Party
      B
      thereunder, solely in its capacity as Supplemental Interest Trust Trustee on
      behalf of Party B (as defined therein) and not in its individual capacity,
      and
      (iii) the Securities Administrator shall also be entitled to exercise the rights
      and obligated to perform the obligations of Party B under the Swap Agreement.
      

     

    (d) None
      of
      the Securities Administrator, the Master Servicer, the Servicers, the Sponsor,
      the Depositor, the Custodian or the Trustee shall be responsible for the acts
      or
      omissions of the others or the Swap Provider, it being understood that this
      Agreement shall not be construed to render those partners joint venturers or
      agents of one another.

     

    
      
        
        

      

      
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    SECTION
      9.03. Trustee
      and Securities Administrator not Liable for Certificates or Mortgage
      Loans.

     

    The
      recitals contained herein and in the Certificates (other than the signature
      of
      the Securities Administrator, the authentication of the Securities Administrator
      on the Certificates, the acknowledgments of the Trustee contained in Article
      II
      and the representations and warranties of the Trustee in Section 9.12 of
      this Agreement) shall be taken as the statements of the Depositor and neither
      the Trustee nor the Securities Administrator assumes any responsibility for
      their correctness. Neither the Trustee nor the Securities Administrator makes
      any representations or warranties as to the validity or sufficiency of this
      Agreement (other than as specifically set forth in Sections 2.11 and 9.12
      of this Agreement), the Swap Agreement or of the Certificates (other than the
      signature of the Securities Administrator and authentication of the Securities
      Administrator on the Certificates) or of any Mortgage Loan or related document.
      The Trustee and the Securities Administrator 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 Master Servicer in respect of the Mortgage Loans or
      deposited in or withdrawn from the related Collection Account by the Servicer,
      other than with respect to the Securities Administrator any funds held by it
      or
      on behalf of the Trustee in accordance with Sections 3.23, 3.24, and 5.07
      of this Agreement.

     

    SECTION
      9.04. Trustee
      and Securities Administrator May Own Certificates.

     

    Each
      of
      the Trustee and the Securities Administrator in its individual capacity or
      any
      other capacity may become the owner or pledgee of Certificates and may transact
      business with other interested parties and their Affiliates with the same rights
      it would have if it were not Trustee or the Securities
      Administrator.

     

    SECTION
      9.05. Fees
      and
      Expenses of Trustee, Custodian and Securities Administrator.

     

    The
      fees
      of the Trustee and the Securities Administrator hereunder, and of the Custodian
      under the Custodial Agreement shall be paid in accordance with a side letter
      agreement with the Master Servicer and at the sole expense of the Master
      Servicer. In addition, the Trustee, the Securities Administrator, the Custodian
      and any director, officer, employee or agent of the Trustee, the Securities
      Administrator and the Custodian shall be indemnified by the Trust and held
      harmless against any loss, liability or expense (including reasonable attorney’s
      fees and expenses) incurred by the Trustee, the Custodian or the Securities
      Administrator in connection with any 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 respective obligations and duties under
      this
      Agreement, including the Swap Agreement and any and all other agreements related
      hereto, other than any loss, liability or expense (i) solely with respect to
      the
      Trustee, for which the Trustee is indemnified by the Master Servicer or the
      related Servicer, (ii) that constitutes a specific liability of the Trustee
      or
      the Securities Administrator, as applicable, pursuant to Section 11.01(g)
      of this Agreement or (iii) any loss, liability or expense incurred by reason
      of
      willful misfeasance, bad faith or negligence in the performance of duties
      hereunder by the Trustee or the Securities Administrator, as applicable, or
      by
      reason of reckless disregard of its obligations and duties hereunder. In no
      event shall the Trustee, Custodian, Master Servicer or the Securities
      Administrator be liable for special, indirect or consequential loss or damage
      of
      any kind whatsoever (including but not limited to lost profits), even if it
      has
      been advised of the likelihood of such loss or damage and regardless of the
      form
      of action. The Master Servicer agrees to indemnify the Trustee, from, and hold
      the Trustee harmless against, any loss, liability or expense (including
      reasonable attorney’s fees and expenses) incurred by the Trustee by reason of
      the Master Servicer’s willful misfeasance, bad faith or gross negligence in the
      performance of its duties under this Agreement or by reason of the Master
      Servicer’s reckless disregard of its obligations and duties under this
      Agreement. In addition, the Sponsor agrees to indemnify the Trustee for, and
      to
      hold the Trustee harmless against, any loss, liability or expense arising out
      of, or in connection with, the provisions set forth in the last paragraph of
      Section 2.01 of this Agreement, including, without limitation, all costs,
      liabilities and expenses (including reasonable legal fees and expenses) of
      investigating and defending itself against any claim, action or proceeding,
      pending or threatened, relating to the provisions of such paragraph. The
      indemnities in this Section 9.05 shall survive the termination or discharge
      of this Agreement and the resignation or removal of the Master Servicer, the
      Trustee, the Securities Administrator or the Custodian. Any payment under this
      Section 9.05 made by the Master Servicer to the Trustee in respect of the
      Trustee’s fees or the Master Servicer’s indemnification obligation to the
      Trustee shall be from the Master Servicer’s own funds, without reimbursement
      from REMIC I therefor.

     

    
      
        
        

      

      
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    SECTION
      9.06. Eligibility
      Requirements for Trustee and Securities Administrator.

     

    The
      Trustee and the Securities Administrator shall at all times be a corporation
      or
      an association (other than the Depositor, the Sponsor, the Master 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 (or a member of a bank holding company whose capital and
      surplus is at least $50,000,000) and subject to supervision or examination
      by
      federal or state authority. If such corporation or association publishes reports
      of conditions at least annually, pursuant to law or to the requirements of
      the
      aforesaid supervising or examining authority, then for the purposes of this
      Section the combined capital and surplus of such corporation or association
      shall be deemed to be its combined capital and surplus as set forth in its
      most
      recent report of conditions so published. In case at any time the Trustee or
      the
      Securities Administrator, as applicable, shall cease to be eligible in
      accordance with the provisions of this Section, the Trustee or the Securities
      Administrator, as applicable, shall resign immediately in the manner and with
      the effect specified in Section 9.07 of this Agreement.

     

    Additionally,
      the Securities Administrator (i) may not be an originator, Master Servicer,
      Servicer, the Depositor or an affiliate of the Depositor unless the Securities
      Administrator is in an institutional trust department, (ii) must be authorized
      to exercise corporate trust powers under the laws of its jurisdiction of
      organization, and (iii) must be rated at least "A/F1" by Fitch, if Fitch is
      a
      Rating Agency, or the equivalent rating by S&P (or such rating acceptable to
      Fitch pursuant to a rating confirmation). If no successor securities
      administrator shall have been appointed and shall have accepted appointment
      within 60 days after Wells Fargo Bank, National Association, as Securities
      Administrator, ceases to be the securities administrator pursuant to this
      Section 9.06, then the Trustee shall petition any court of competent
      jurisdiction, at the expense of the Trust, for the appointment of a successor
      securities administrator which satisfies the eligibility criteria set forth
      herein. The Trustee shall notify the Rating Agencies of any change of Securities
      Administrator.

     

    
      
        
        

      

      
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    SECTION
      9.07. Resignation
      and Removal of Trustee and Securities Administrator.

     

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

     

    If
      at any
      time the Trustee or the Securities Administrator shall cease to be eligible
      in
      accordance with the provisions of Section 9.06 of this Agreement and shall
      fail to resign after written request therefor by the Depositor, or if at any
      time the Trustee or the Securities Administrator shall become incapable of
      acting, or shall be adjudged bankrupt or insolvent, or a receiver of the Trustee
      or the Securities Administrator or of its property shall be appointed, or any
      public officer shall take charge or control of the Trustee or the Securities
      Administrator or of its property or affairs for the purpose of rehabilitation,
      conservation or liquidation, then the Depositor may remove the Trustee or the
      Securities Administrator, as applicable, and appoint a successor trustee or
      successor securities administrator, as applicable, by written instrument, in
      duplicate, which instrument shall be delivered to the Trustee or the Securities
      Administrator so removed and to the successor trustee or successor securities
      administrator. A copy of such instrument shall be delivered to the
      Certificateholders, the Trustee, the Securities Administrator and the Master
      Servicer by the Depositor.

     

    The
      Holders of Certificates entitled to at least 51% of the Voting Rights may at
      any
      time remove the Trustee or the Securities Administrator and appoint a successor
      trustee or 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 to
      the
      Depositor, one complete set to the Trustee or the Securities Administrator
      so
      removed and one complete set to the successor so appointed. A copy of such
      instrument shall be delivered to the Certificateholders, the Trustee (in the
      case of the removal of the Securities Administrator), the Securities
      Administrator (in the case of the removal of the Trustee) and the Master
      Servicer by the Depositor.

     

    
      
        
        

      

      
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    Any
      resignation or removal of the Trustee or the Securities Administrator and
      appointment of a successor trustee or successor securities administrator
      pursuant to any of the provisions of this Section shall not become
      effective until acceptance of appointment by the successor trustee or successor
      securities administrator, as applicable, as provided in
      Section 9.08.

     

    Any
      Person appointed as successor trustee pursuant to this Section 9.07 shall also
      be required to serve as successor supplemental interest trust trustee hereunder
      and under the Swap Agreement.

     

    Notwithstanding
      anything to the contrary contained herein, the Master Servicer and the
      Securities Administrator shall at all times be the same Person.

     

    SECTION
      9.08. Successor
      Trustee or Securities Administrator.

     

    Any
      successor trustee or successor securities administrator appointed as provided
      in
      Section 9.07 of this Agreement shall execute, acknowledge and deliver to
      the Depositor and its predecessor trustee or predecessor securities
      administrator an instrument accepting such appointment hereunder, and thereupon
      the resignation or removal of the predecessor trustee or predecessor securities
      administrator shall become effective and such successor trustee or 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 trustee
      or
      securities administrator herein. The predecessor trustee or predecessor
      securities administrator shall deliver to the successor trustee or successor
      securities administrator all Mortgage Loan Documents and related documents
      and
      statements to the extent held by it hereunder, as well as all monies, held
      by it
      hereunder, and the Depositor and the predecessor trustee or 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 trustee or successor securities administrator
      all such rights, powers, duties and obligations.

     

    No
      successor trustee or successor securities administrator shall accept appointment
      as provided in this Section unless at the time of such acceptance such
      successor trustee or successor securities administrator shall be eligible under
      the provisions of Section 9.06 and the appointment of such successor
      trustee or successor securities administrator shall not result in a downgrading
      of any Class of Certificates by any Rating Agency, as evidenced by a letter
      from
      each Rating Agency.

     

    Upon
      acceptance of appointment by a successor trustee or successor securities
      administrator 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 ten (10) days after acceptance of appointment by the
      successor trustee or successor securities administrator, the successor trustee
      or successor securities administrator shall cause such notice to be mailed
      at
      the expense of the Depositor.

     

    
      
        
        

      

      
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    SECTION
      9.09. Merger
      or
      Consolidation of Trustee or Securities Administrator.

     

    Any
      corporation or association into which the Trustee or the Securities
      Administrator 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 or the Securities Administrator shall be
      a
      party, or any corporation or association succeeding to the business of the
      Trustee or the Securities Administrator shall be the successor of the Trustee
      or
      the Securities Administrator hereunder, provided such corporation or association
      shall be eligible under the provisions of Section 9.06 of this Agreement,
      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
      9.10. Appointment
      of Co-Trustee or Separate Trustee.

     

    Notwithstanding
      any other provisions hereof, at any time, for the purpose of meeting any legal
      requirements of any jurisdiction in which any part of the REMIC I or property
      securing the same 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 REMIC
      I, and to vest in such Person or Persons, in such capacity, and for the benefit
      of the Holders of the Certificates, such title to REMIC I, or any part thereof,
      and, subject to the other provisions of this Section 9.10, such powers,
      duties, obligations, rights and trusts as the Trustee may consider necessary
      or
      desirable. No co-trustee or separate trustee hereunder shall be required to
      meet
      the terms of eligibility as a successor trustee under Section 9.06
      hereunder and no notice to Holders of Certificates of the appointment of
      co-trustee(s) or separate trustee(s) shall be required under Section 9.08
      hereof.

     

    In
      the
      case of any appointment of a co-trustee or separate trustee pursuant to this
      Section 9.10 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 a defaulting 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 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.

     

    Any
      notice, request or other writing given to the Trustee shall be deemed to have
      been given to each of the then separate trustees and co-trustees, as effectively
      as if given to each of them. Every instrument appointing any separate trustee
      or
      co-trustee shall refer to this Agreement and the conditions of this Article
      IX.
      Each separate trustee and co-trustee, upon its acceptance of the 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.

     

    
      
        
        

      

      
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    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 or co-trustee.

     

    SECTION
      9.11. Appointment
      of Office or Agency.

     

    The
      Certificates may be surrendered for registration of transfer or exchange at
      the
      Securities Administrator’s office located at Sixth Street and Marquette Avenue,
      Minneapolis, Minnesota 55479, and presented for final distribution at the
      Corporate Trust Office of the Securities Administrator where notices and demands
      to or upon the Securities Administrator in respect of the Certificates and
      this
      Agreement may be served.

     

    SECTION
      9.12. Representations
      and Warranties.

     

    The
      Trustee hereby represents and warrants to the Master Servicer, the Securities
      Administrator, Countrywide and the Depositor as applicable, 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 of America.

     

    (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 articles
      of association or bylaws or 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 agreement or other instrument to which it is a party
      or
      which is applicable to it or any of its assets.

     

    (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.

     

    
      
        
        

      

      
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    (v) It
      is not
      in violation of, and its execution and delivery of this Agreement and its
      performance and compliance with the terms of this Agreement will not constitute
      a violation of, any law, any order or decree of any court or arbiter, or any
      order, regulation or demand of any federal, state or local governmental or
      regulatory authority, which violation, in its good faith and reasonable
      judgment, is likely to affect materially and adversely either the ability of
      it
      to perform its obligations under this Agreement or its financial
      condition.

     

    (vi) No
      litigation is pending or, to the best of its knowledge, threatened against
      it,
      which would prohibit it from entering into this Agreement or, in its good faith
      reasonable judgment, is likely to materially and adversely affect either the
      ability of it to perform its obligations under this Agreement or its financial
      condition.

     

    
      
        
        

      

      
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    ARTICLE
      X

     

    TERMINATION

     

    SECTION
      10.01. Termination
      Upon Repurchase or Liquidation of All Mortgage Loans.

     

    (a) Subject
      to Section 10.02 of this Agreement, the respective obligations and
      responsibilities under this Agreement of the Depositor, the Master Servicer,
      the
      Securities Administrator, the Servicer and the Trustee (other than the
      obligations of the Master Servicer to the Trustee pursuant to Section 9.05
      of this Agreement and of the Servicers to make remittances to the Securities
      Administrator and the Securities Administrator to make payments in respect
      of
      the REMIC I Regular Interests, REMIC II Regular Interests or 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 Master Servicer 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 (i) the expiration of 21 years from the death of the
      last
      survivor of the descendants of Joseph P. Kennedy, the late ambassador of the
      United States to the Court of St. James, living on the date hereof and (ii)
      the
      Last Scheduled Distribution Date. The purchase by the Master Servicer of all
      Mortgage Loans and each REO Property remaining in REMIC I shall be at a price
      (the “Termination Price”) equal to the sum of (i) the greater of (A) the
      aggregate Purchase Price of all the Mortgage Loans included in REMIC I, plus
      the
      appraised value of each REO Property, if any, included in REMIC I, such
      appraisal to be conducted by an appraiser mutually agreed upon by the Master
      Servicer and the Trustee in their reasonable discretion and (B) the aggregate
      fair market value of all of the assets of REMIC I (as determined by the Master
      Servicer and the Trustee, as of the close of business on the third Business
      Day
      next preceding the date upon which notice of any such termination is furnished
      to Certificateholders pursuant to the third paragraph of this
      Section 10.01), (ii) any amounts due and owing the Swap Provider under the
      Swap Agreement as of the termination date, plus (iii) any amounts due the
      Servicers and the Master Servicer in respect of unpaid Servicing Fees and Master
      Servicing Fees and outstanding P&I Advances and Servicing Advances.

     

    (b) The
      Master Servicer shall have the right to purchase all of the Mortgage Loans
      and
      each REO Property remaining in REMIC I pursuant to clause (i) of the preceding
      paragraph no later than the Determination Date in the month immediately
      preceding the Distribution Date on which the Certificates will be retired;
      provided, however, that the Master Servicer may elect to purchase all of the
      Mortgage Loans and each REO Property remaining in REMIC I pursuant to clause
      (i)
      above only if the aggregate Scheduled Principal Balance of the Mortgage Loans
      and each REO Property remaining in the Trust Fund at the time of such election
      has been reduced to less than or equal to 10% of the aggregate Scheduled
      Principal Balance of the Mortgage Loans as of the Cut-off Date. By acceptance
      of
      the Residual Certificates, the Holder of the Residual Certificates agrees,
      in
      connection with any termination hereunder, to assign and transfer any portion
      of
      the Termination Price 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.

     

    
      
        
        

      

      
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    (c) In
      connection with any optional termination, four Business Days prior to the final
      Distribution Date specified in the notice required pursuant to Section 10.01(f),
      the Securities Administrator shall, no later than 4:00 pm New York City time
      on
      such day, request in writing (in accordance with the applicable provision of
      the
      Swap Agreement) and by phone from the Swap Provider the amount of the Estimated
      Swap Termination Payment. The Swap Provider shall, no later than 2:00 pm on
      the
      following Business Day, notify in writing (which may be done in electronic
      format) the Securities Administrator of the amount of the Estimated Swap
      Termination Payment; the Securities Administrator shall promptly on the same
      day
      notify the Terminator of the amount of the Estimated Swap Termination Payment.
      

     

    (d) Two
      Business Days prior to the final Distribution Date specified in the notice
      required pursuant to Section 10.01(f), (i) the Terminator shall, no
      later than 1:00 pm New
      York
      City time on such day, deposit funds in the Distribution Account in an amount
      equal to the sum of the Termination Price (other than the Swap Termination
      Payment) and the Estimated Swap Termination Payment, and (ii) if the Securities
      Administrator shall have determined that the aggregate Stated Principal Balance
      of all of the Mortgage Loans as of the related Determination Date is
not
      more than 10% of the aggregate Principal Balance of the Mortgage
      Loans
      as of
      the Cut-off Date and that all other requirements of the optional termination
      have been met, including without limitation, the deposit required pursuant
      to
      the immediately preceding clause (i) as well as the requirements specified
      in
      Section 10.03, then the Securities Administrator shall, on the same Business
      Day, provide written notice to the Depositor, the Master Servicer, the Servicer,
      the Supplemental Interest Trust Trustee, the Trustee and the Swap Provider
      confirming (in accordance with the applicable provisions of the Swap Agreement)
      (a) its receipt of the Termination Price (other than the Swap Termination
      Payment) and the Estimated Swap Termination Payment and (b) that all other
      requirements of the optional termination have been met. Upon the Securities
      Administrator’s providing the notice described in the preceding sentence, the
      optional termination shall become irrevocable, the notice to Certificateholders
      of such optional termination provided pursuant to the Section 10.01(f) shall
      become unrescindable, the Swap Provider shall determine the Swap Termination
      Payment in accordance with the Swap Agreement, and the Swap Provider shall
      provide to the Securities Administrator written notice of the amount of the
      Swap
      Termination Payment not later than one Business Day prior to the final
      Distribution Date specified in the notice required pursuant to Section 10.01(f).
      

     

    (e) In
      connection with any optional termination, only an amount equal to the
      Termination Price less any Swap Termination Payment shall be made available
      for
      distribution to the Regular Certificates. Any Estimated Swap Termination Payment
      deposited into the Distribution Account by the Terminator shall be withdrawn
      by
      the Securities Administrator from the Distribution Account on the related final
      Distribution Date and distributed as follows: (i) to the Supplemental Interest
      Trust for payment to the Swap Provider in accordance with Section 5.07, an
      amount equal to the Swap Termination Payment calculated pursuant to the Swap
      Agreement, provided that in no event shall the amount distributed to the Swap
      Provider in respect of the Swap Termination Payment exceed the Estimated Swap
      Termination Payment, and (ii) to the Terminator an amount equal to the excess,
      if any, of the Estimated Swap Termination Payment over the Swap Termination
      Payment. The Swap Termination Payment shall not be part of any REMIC and shall
      not be paid into any account which is part of any REMIC. 

     

    
      
        
        

      

      
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    (f) Notice
      of
      the liquidation of the Certificates shall be given promptly by the Securities
      Administrator by letter to the 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 Master Servicer, not earlier than the 15th day and not
      later
      than the 25th day of the month next preceding the month of the final
      distribution on the 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 or the
      Certificates will be made upon presentation and surrender of the related
      Certificates at the office of the Securities Administrator 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 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
      Certificates at the office of the Securities Administrator. 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 Master Servicer, the Master
      Servicer shall deliver to the Securities Administrator for deposit in the
      Distribution Account not later than the Business Day prior to the Distribution
      Date on which the final distribution on the Certificates an amount in
      immediately available funds equal to the above-described Termination Price.
      The
      Securities Administrator shall remit to the Servicers, the Master Servicer,
      the
      Trustee and the Custodian from such funds deposited in the Distribution Account
      (i) any amounts which the Servicers would be permitted to withdraw and retain
      from the related Collection Account pursuant to Section 3.09 of this Agreement
      or the Servicing Agreement, as applicable, as if such funds had been deposited
      therein (including all unpaid Servicing Fees and Master Servicing Fees and
      all
      outstanding P&I Advances and Servicing Advances) and (ii) any other amounts
      otherwise payable by the Securities Administrator to the Master Servicer, the
      Trustee, the Custodian, the Servicers and the Swap Provider from amounts on
      deposit in the Distribution Account pursuant to the terms of this Agreement
      prior to making any final distributions pursuant to Section 10.01(d) below.
      Upon certification to the Trustee by the Securities Administrator of the making
      of such final deposit, the Trustee shall promptly release or cause to be
      released to the Master Servicer the Mortgage Files for the remaining Mortgage
      Loans, and Trustee shall execute all assignments, endorsements and other
      instruments delivered to it and necessary to effectuate such
      transfer.

     

    (g) Upon
      presentation of the Certificates by the Certificateholders on the final
      Distribution Date, the Securities Administrator shall distribute to each
      Certificateholder so presenting and surrendering its Certificates the amount
      otherwise distributable on such Distribution Date in accordance with
      Section 5.01 in respect of the Certificates so presented and surrendered.
      Any funds not distributed to any Holder or Holders of Certificates being retired
      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
      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 10.01 shall not have been surrendered for cancellation within six
      months after the time specified in such notice, the Securities Administrator
      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
      Securities Administrator shall, directly or through an agent, mail a final
      notice to the remaining non-tendering Certificateholders concerning surrender
      of
      their Certificates. The costs and expenses of maintaining the funds in trust
      and
      of contacting such Certificateholders shall be paid out of the assets remaining
      in the trust funds. If within one (1) year after the final notice any such
      Certificates shall not have been surrendered for cancellation, the Securities
      Administrator shall pay to the Depositor 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 Securities Administrator as a result of such Certificateholder’s
      failure to surrender its Certificate(s) on the final Distribution Date for
      final
      payment thereof in accordance with this Section 10.01. Any such amounts
      held in trust by the Securities Administrator shall be held uninvested in an
      Eligible Account.

     

    
      
        
        

      

      
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    SECTION
      10.02. Additional
      Termination Requirements.

     

    (a) In
      the
      event that the Master Servicer 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 10.01, the Trust
      Fund shall be terminated in accordance with the following additional
      requirements:

     

    (i) The
      Securities Administrator 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 by and
      at
      the expense of the Master Servicer;

     

    (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 Master Servicer for cash; and

     

    (iii) At
      the
      time of the making of the final payment on the Certificates, the Securities
      Administrator shall distribute or credit, or cause to be distributed or
      credited, to the Holders of the Residual Certificates all cash on hand in the
      Trust Fund (other than cash retained to meet claims), and the Trust Fund shall
      terminate at that time.

     

    
      
        
        

      

      
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    (b) At
      the
      expense of the Master Servicer (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 10.01, at the expense of the Trust Fund), the Master
      Servicer 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 10.02.

     

    (c) By
      their
      acceptance of Certificates, the Holders thereof hereby agree to authorize the
      Securities Administrator 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
      XI

     

    REMIC
      PROVISIONS

     

    SECTION
      11.01. REMIC
      Administration.

     

    (a) The
      Securities Administrator 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 Securities Administrator 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
      “residual interests” in REMIC I. For the purposes of the REMIC election in
      respect of REMIC II, the REMIC II Regular Interests shall be designated as
      the
      Regular Interests in REMIC II and the Class R-II Interest shall be designated
      as
      the “residual interests” in REMIC II. The Class A Certificates, the Mezzanine
      Certificates, the Class P Certificates, the Class IO Interest and the Class
      CE
      Certificates (exclusive of any right to receive payments from or obligation
      to
      make payments to the Reserve Fund or the Supplemental Interest Trust) shall
      be
      designated as the Regular Interests in REMIC III and the Class R-III Interest
      shall be designated as the Residual Interests in REMIC III. The Trustee shall
      not permit the creation of any “interests” in each Trust REMIC (within the
      meaning of Section 860G of the Code) other than the REMIC I Regular
      Interests, the REMIC II Regular Interests, the Class IO Interest 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
      Securities Administrator 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 except as specified herein. The Securities Administrator, 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 related REMIC created
      hereunder. By their acceptance thereof, the holder of the largest Percentage
      Interest of the Residual Certificates hereby agrees to irrevocably appoint
      the
      Securities Administrator or an Affiliate as its agent to perform all of the
      duties of the tax matters person for the Trust Fund.

     

    (d) The
      Securities Administrator shall prepare and file and the Trustee shall sign
      all
      of the Tax Returns in respect of each REMIC created hereunder. The expenses
      of
      preparing and filing such returns shall be borne by the Securities Administrator
      without any right of reimbursement therefor.

     

    
      
        
        

      

      
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    (e) The
      Securities Administrator 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 Securities Administrator 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 upon receipt of additional reasonable
      compensation, (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 Securities Administrator, within ten (10) days after the Closing
      Date, all information or data that the Securities Administrator 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.

     

    (f) To
      the
      extent in the control of the Trustee or the Securities Administrator, each
      such
      Person (i) shall take such action and shall cause each 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, (ii) shall not take any action,
      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 (A) endanger the status of each Trust REMIC as a REMIC
      or
      (B) 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 such action or inaction is permitted under this Agreement or the
      Trustee and the Securities Administrator have received an Opinion of Counsel,
      addressed to the them (at the expense of the party seeking to take such action
      but in no event at the expense of the Trustee or the Securities Administrator)
      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
      (iii)
      shall the Securities Administrator 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 Securities
      Administrator 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 Securities
      Administrator 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 Securities Administrator 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.
      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.

     

    
      
        
        

      

      
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    (g) In
      the
      event that any tax is imposed on “prohibited transactions” of any 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 11.03 of this Agreement, if
      such tax arises out of or results from a breach by the Trustee of any of its
      obligations under this Article XI, (ii) to the Securities Administrator pursuant
      to Section 11.03, if such tax arises out of or results from a breach by the
      Securities Administrator of any of its obligations under this Article XI, (iii)
      to the Master Servicer pursuant to Section 11.03 of this Agreement, if such
      tax arises out of or results from a breach by the Master Servicer of any of
      its
      obligations under Article IV or under this Article XI, (iv) to Countrywide
      or
      any successor pursuant to Section 11.03 of this Agreement, if such tax
      arises out of or results from a breach by Countrywide or any successor of any
      of
      its obligations under Article III or under this Article XI, or (v) in all other
      cases, against amounts on deposit in the Distribution Account and shall be
      paid
      by withdrawal therefrom.

     

    (h) The
      Securities Administrator 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.

     

    (i) Following
      the Startup Day, neither the Securities Administrator 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 the
      related REMIC to fail to qualify as a REMIC at any time that any Certificates
      are outstanding or subject such REMIC to any tax under the REMIC Provisions
      or
      other applicable provisions of federal, state and local law or
      ordinances.

     

    (j) Neither
      the Trustee nor the Securities Administrator shall knowingly enter into any
      arrangement by which any Trust REMIC will receive a fee or other compensation
      for services nor permit either 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.

     

    (k) The
      Securities Administrator shall apply for an employer identification number
      with
      the Internal Revenue Service via a Form SS-4 or other comparable method for
      each
      REMIC. In connection with the foregoing, the Securities Administrator shall
      provide the name and address of the person who can be contacted to obtain
      information required to be reported to the holders of Regular Interests in
      each
      REMIC as required by IRS Form 8811.

     

    SECTION
      11.02. Prohibited
      Transactions and Activities.

     

    None
      of
      the Depositor, Countrywide or any successor, the Securities Administrator,
      the
      Master 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 X of this Agreement,
      (iv) a substitution pursuant to Article II of this Agreement or (v) a purchase
      of Mortgage Loans pursuant to Article II 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 related
      Collection Account or the Distribution 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 and the
      Securities Administrator (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
      11.03. Indemnification.

     

    (a) The
      Trustee agrees to be liable for any taxes and costs incurred by the Trust Fund,
      the Depositor, the Master Servicer, the Securities Administrator or the Servicer
      including, without limitation, any reasonable attorneys fees imposed on or
      incurred by the Trust Fund, the Depositor, the Master Servicer, the Securities
      Administrator or the Servicer as a result of the Trustee’s failure to perform
      its covenants set forth in this Article XI in accordance with the standard
      of
      care of the Trustee set forth in this Agreement.

     

    (b) Countrywide
      or any successor agrees to indemnify the Trust Fund, the Depositor, the Master
      Servicer, the Securities Administrator 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, the Master Servicer, the Securities
      Administrator or the Trustee, as a result of the related Servicer’s failure to
      perform its covenants set forth in Article III in accordance with the standard
      of care of the Servicer set forth in this Agreement.

     

    (c) The
      Master Servicer agrees to indemnify the Trust Fund, the Depositor, the Servicer
      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, the Servicer or the Trustee, as a result of the Master Servicer’s
      failure to perform its covenants set forth in Article IV in accordance with
      the
      standard of care of the Master Servicer set forth in this
      Agreement.

     

    (d) The
      Securities Administrator agrees to be liable for any taxes and costs incurred
      by
      the Trust Fund, the Depositor, the Servicer or the Trustee including any
      reasonable attorneys’ fees imposed on or incurred by the Trust Fund, the
      Depositor, the Servicer or the Trustee as a result of the Securities
      Administrator’s failure to perform its covenants set forth in this Article XI in
      accordance with the standard of care of the Securities Administrator set forth
      in this Agreement.

     

    
      
        
        

      

      
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    ARTICLE
      XII

     

    MISCELLANEOUS
      PROVISIONS

     

    SECTION
      12.01. Amendment.

     

    This
      Agreement may be amended from time to time by the Depositor, Countrywide or
      any
      successor, the Master Servicer, the Securities Administrator and the Trustee
      but
      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
      ensure compliance with Regulation AB, or (iv) 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 and that such action shall
      not, as evidenced by an Opinion of Counsel delivered to the Trustee, adversely
      affect in any material respect the interests of any Certificateholder; provided
      that any such amendment shall be deemed not to adversely affect in any material
      respect the interests of the Certificateholders and no such Opinion of Counsel
      shall be required if the Person requesting such amendment obtains a letter
      from
      each Rating Agency stating that such amendment would not result in the
      downgrading or withdrawal of the respective ratings then assigned to the
      Certificates. 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 shall be required to address the effect of any such
      amendment on any such consenting Certificateholder.

     

    This
      Agreement may also be amended from time to time by the Depositor, Countrywide
      or
      any successor, the Master Servicer, the Securities Administrator and the Trustee
      and 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 in a manner, other than as described in (i), without
      the
      consent of the Holders of Certificates of such Class evidencing at least 66%
      of
      the Voting Rights allocated to such Class, 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 12.01, Certificates registered in the
      name of the Depositor or the Servicers or any Affiliate thereof shall be
      entitled to Voting Rights with respect to matters affecting such Certificates.
      Without limiting the generality of the foregoing, any amendment to this
      Agreement required in connection with the compliance with or the clarification
      of any reporting obligations described in Section 5.06 hereof shall not
      require the consent of any Certificateholder and without the need for any
      Opinion of Counsel or Rating Agency confirmation.

     

    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 all conditions precedent to the execution of such
      amendment have been satisfied, such amendment is permitted hereunder and 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 that such amendment is authorized
      or
      permitted by this Agreement.

     

    
      
        
        

      

      
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    Promptly
      after the execution of any such amendment the Trustee shall furnish a copy
      of
      such amendment to each Certificateholder.

     

    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.

     

    The
      cost
      of any Opinion of Counsel to be delivered pursuant to this Section 12.01
      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.

     

    Notwithstanding
      any of the other provisions of this Section 12.01, none of the parties to this
      Agreement shall enter into any amendment to this Agreement that could reasonably
      be expected to have a material adverse effect on the interests of the Swap
      Provider hereunder (excluding, for the avoidance of doubt, any amendment to
      this
      Agreement that is entered into solely for the purpose of appointing a successor
      servicer, master servicer, securities administrator, trustee or other service
      provider) without the prior written consent of the Swap Provider, which consent
      shall not be unreasonably withheld, conditioned or delayed.

     

    SECTION
      12.02. Recordation
      of Agreement; Counterparts.

     

    To
      the
      extent permitted by applicable law, this Agreement is subject to recordation
      in
      all appropriate public offices for real property records in all the counties
      or
      other comparable jurisdictions in which any or all of the properties subject
      to
      the Mortgages are situated, and in any other appropriate public recording office
      or elsewhere, such recordation to be effected by the Depositor at the expense
      of
      the Certificateholders, but only upon direction of the Trustee accompanied
      by an
      Opinion of Counsel (which Opinion of Counsel shall not be at the expense of
      the
      Trustee) 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.

     

    
      
        
        

      

      
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    SECTION
      12.03. 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
      representatives or heirs to claim an accounting or to take any action or
      proceeding in any court for a partition or winding up of the Trust Fund, nor
      otherwise affect the rights, obligations and liabilities of the parties hereto
      or any of them.

     

    No
      Certificateholder shall have any right to vote (except as expressly provided
      for
      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 any of the Certificates, be construed
      so
      as to constitute the Certificateholders from time to time as partners or members
      of an association; nor shall any Certificateholder be under any liability to
      any
      third person by reason of any action taken by the parties to this Agreement
      pursuant to any provision hereof.

     

    No
      Certificateholder shall have any right by virtue of any provision of this
      Agreement to institute any suit, action or proceeding in equity or at law upon
      or under or with respect to this Agreement, unless such Holder previously shall
      have given to the Trustee a written notice of default and of the continuance
      thereof, as hereinbefore provided, and unless also the Holders of Certificates
      entitled to at least 25% of the Voting Rights shall have made written request
      upon the Trustee to institute such action, suit or proceeding in its own name
      as
      Trustee hereunder and shall have offered to the Trustee such reasonable
      indemnity as it may require against the costs, expenses and liabilities to
      be
      incurred therein or thereby, and the Trustee, for 15 days after its receipt
      of
      such notice, request and offer of indemnity, shall have neglected or refused
      to
      institute any such action, suit or proceeding. It is understood and intended,
      and expressly covenanted by each Certificateholder with every other
      Certificateholder. and the Trustee, that no one or more Holders of Certificates
      shall have any right in any manner whatsoever by virtue of any provision of
      this
      Agreement to affect, disturb or prejudice the rights of the Holders of any
      other
      of such Certificates, or to obtain or seek to obtain priority over or preference
      to any other such Holder, or to enforce any right under this Agreement, except
      in the manner herein provided and for the equal, ratable and common benefit
      of
      all Certificateholders. For the protection and enforcement of the provisions
      of
      this Section, each and every Certificateholder and the Trustee shall be entitled
      to such relief as can be given either at law or in equity.

     

    SECTION
      12.04. Governing
      Law.

     

    This
      Agreement shall be construed in accordance with the laws of the State of New
      York and the obligations, rights and remedies of the parties hereunder shall
      be
      determined in accordance with such laws without regard to conflicts of laws
      principles thereof other than Section 5-1401 of the New York General Obligations
      Law which shall govern.

     

    SECTION
      12.05. Notices.

     

    All
      directions, demands and notices hereunder shall be in writing and shall be
      deemed to have been duly given when received if sent by facsimile, receipt
      confirmed, 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, ACE Securities Corp.,
      AMACAR GROUP, 6525 Morrison Boulevard, Suite 318, Charlotte, North Carolina
      28211, Attention: Juliana Johnson (telecopy number: (704) 365-1362), with a
      copy
      to Deutsche Bank Securities, Inc., 60 Wall Street, New York, New York,
      Attention: Legal Department (telecopy number: (212) 797-4561),or such other
      address or telecopy number as may hereafter be furnished to the Servicers,
      the
      Master Servicer, the Securities Administrator and the Trustee in writing by
      the
      Depositor, (b) in the case of the Master Servicer and the Securities
      Administrator, P.O. Box 98, Columbia, Maryland 21046 and for overnight delivery
      to 9062 Old Annapolis Road, Columbia, Maryland 21045, Attention: Ace Securities
      Corp., 2006-NC3 (telecopy number: (410) 715-2380), or such other address or
      telecopy number as may hereafter be furnished to the Trustee, the Depositor
      and
      the Servicers in writing by the Master Servicer or the Securities Administrator,
      (c) in the case of the Trustee, at the Corporate Trust Office or such other
      address or telecopy number as the Trustee may hereafter be furnish to the
      Servicer, the Master Servicer, the Securities Administrator and the Depositor
      in
      writing by the Trustee and (d) in the case of the Countrywide, Countrywide
      Home
      Loans Servicing LP, 400 Countrywide Way, Simi Valley, California 93065,
      Attention: John Lindberg and Yuan Li (telecopy number: (800) 658-6209), with
      a
      copy to Countrywide Home Loans Inc., 4500 Park Granada, Calabasas, California
      91302, Attention: General Counsel, or such other address or telecopy number
      as
      may hereafter be furnished to the Trustee, the Master Servicer, the Securities
      Administrator and the Depositor in writing by the Servicer. 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.

     

    
      
        
        

      

      
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    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. 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 a Responsible Officer
      has actual knowledge:

     

    1. Any
      material change or amendment to this Agreement;

     

    2. The
      occurrence of any Servicer Event of Default or Master Servicer Event of Default
      that has not been cured or waived;

     

    
      
        
        

      

      
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    3. The
      resignation or termination of any Servicer, the Master Servicer or the
      Trustee;

     

    4. The
      repurchase or substitution of Mortgage Loans pursuant to or as contemplated
      by
      Section 2.03 of this Agreement;

     

    5. The
      final
      payment to the Holders of any Class of Certificates; and

     

    6. Any
      change in the location of the Distribution Account.

     

    In
      addition, the Securities Administrator shall promptly make available to each
      Rating Agency copies of each report to Certificateholders described in
      Section 5.02 of this Agreement.

     

    Countrywide
      and any successor shall make available to each Rating Agency copies of the
      following:

     

    7. Each
      Annual Statement of Compliance described in Section 3.17 of this Agreement;
      and

     

    8. Each
      assessment of compliance and attestation report described in Section 3.18
      of this Agreement.

     

    Any
      such
      notice pursuant to this Section 12.07 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 Standard &
Poor’s, a division of the McGraw-Hill Companies, Inc., 55 Water Street, New
      York, New York 10041; and to Moody’s Investors Service, Inc., 99 Church Street,
      New York, New York 10007, or such other addresses as the Rating Agencies may
      designate in writing to the parties hereto.

     

    SECTION
      12.08. Article
      and Section References.

     

    All
      article and section references used in this Agreement, unless otherwise
      provided, are to articles and sections in this Agreement.

     

    SECTION
      12.09. 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, on behalf of the Trust and for the benefit
      of
      the Certificateholders, 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, on behalf of the Trust and for the benefit of the Certificateholders,
      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 shall be
      deemed to be a grant by the Depositor to the Trustee, on behalf of the Trust
      and
      for the benefit of the Certificateholders, of a security interest in all of
      the
      Depositor’s right, title and interest in and to the 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, including
      without limitation all amounts, other than investment earnings, from time to
      time held or invested in the Collection Accounts and the Distribution Account,
      whether in the form of cash, instruments, securities or other property; (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 (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, on
      behalf of the Trust and for the benefit of the Certificateholders, 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, on behalf of the Trust and for the benefit
      of
      the Certificateholders.

     

    
      
        
        

      

      
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    SECTION
      12.10. Survival
      of Indemnification.

     

    Any
      and
      all indemnities to be provided by any party to this Agreement shall survive
      the
      termination and resignation of any party hereto and the termination of this
      Agreement.

     

    SECTION
      12.11. Intention
      of the Parties and Interpretation.

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Sections 3.17, 3.18,
      3.19, 3.27, 4.15, 4.16, 4.17, 4.18 and 5.06 of this Agreement is to facilitate
      compliance by the Sponsor, the Master Servicer, the Securities Administrator
      and
      the Depositor with the provisions of Regulation AB. The Master Servicer and
      Countrywide acknowledge and agree that the purpose of Sections 3.17, 3.18,
      3.19
      and 3.27 of this Agreement is to facilitate compliance by Countrywide and the
      Depositor with the provisions of Regulation AB and related rules and regulations
      of the Commission. None of the Master Servicer, Countrywide, the Trust or 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. Countrywide 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,
      and agrees to negotiate in good faith with the Master Servicer or the Depositor
      with regard to any reasonable requests for delivery of information under these
      provisions on the basis of evolving interpretations of Regulation AB.
      Countrywide shall
      cooperate fully with the Master
      Servicer
      deliver to the Master
      Servicer and
      the Depositor, any and all statements, reports, certifications, records and
      any
      other information necessary to permit the Master Servicer or the Depositor
      to
      comply with the provisions of Regulation AB, together with such disclosures
      relating to Countrywide,
      and any parties or items identified in writing by Countrywide,
      including, any Sub-Servicer or the servicing of the Mortgage Loans necessary
      in
      order to effect such compliance.

     

    
      
        
        

      

      
        252

        
          

        

      

      
        
        

      

    

     

    The
      Master Servicer agrees that it will cooperate with the Servicers
      and provide sufficient and timely notice of any information requirements
      hereunder. The Master Servicer will make all reasonable efforts to contain
      requests for information, reports or any other materials to items required
      for
      compliance with Regulation AB, and shall not request information which is not
      required for such compliance. 

     

    SECTION
      12.12. Indemnification.

     

    Each
      of
      the Depositor, Master Servicer, Securities Administrator and any Servicing
      Function Participant engaged by such party (other than the Servicer),
      respectively, shall indemnify and hold harmless the Master Servicer, the
      Securities Administrator and the Depositor, respectively, 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 under
      hereunder, including particularly its obligations to provide any assessment of
      compliance, attestation report, Annual Statement of Compliance or any
      information, data or materials required to be included in any 1934 Act report,
      (b) any material misstatement or omission in any information, data or materials
      provided by such party (or, in the case of the Securities Administrator or
      Master Servicer, any material misstatement or material omission in (i) any
      Annual Statement of Compliance, assessment of compliance or attestation report
      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 concerning the Master
      Servicer or the Securities Administrator), 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 Master Servicer, the Securities Administrator
      or the Depositor, as the case may be, then each such party agrees that it shall
      contribute to the amount paid or payable by the Master Servicer, the Securities
      Administrator 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.

     

    
      
        
        

      

      
        253

        
          

        

      

      
        
        

      

    

     

    

    IN
      WITNESS WHEREOF, the Depositor, Countrywide, the Master Servicer, the Securities
      Administrator 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.

     

    
      
        	
                ACE
                  SECURITIES CORP.,

                as
                  Depositor

                

                 

                By:
                  /s/
                  Evelyn Echavarria     

                Name:
                  Evelyn Echavarria

                Title:
                  Vice President

                 

                By:
                  /s/
                  Doris J. Hearn        
                  

                Name:
                  Doris J. Hearn

                Title:
                  Vice President

                 

                COUNTRYWIDE
                  HOME LOANS 

                SERVICING
                  LP, as Servicer

                 

                By:
                  Countrywide GP, Inc., its General Partner

                

                 

                By:
                  /s/
                  Jordan Cohen        

                Name:
                  Jordan Cohen

                Title:
                  Vice President

                 

                HSBC
                  BANK USA, NATIONAL ASSOCIATION,

                not
                  in its individual capacity but solely as Trustee

                

                 

                By:
                  /s/
                  Fernando Acebedo     

                Name:
                  Fernando Acebedo

                Title:
                  Vice President

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              WELLS
                FARGO BANK, N.A.,

              as
                Master Servicer and Securities Administrator

              

               

              By:
                /s/
                Stacey M. Taylor    

              Name:
                Stacey M. Taylor

              Title:
                Vice President

               

              Acknowledged
                and Agreed for purposes of Section 9.05:

               

              DB
                STRUCTURED PRODUCTS, INC

               

              By:
                /s/
                Ernie Calabrese      

              Name:
                Ernie Calabrese

              Title:
                Director

               

              By:
                /s/
                Susan Valenti        

              Name:
                Susan Valenti

              Title:
                Director

               

              Acknowledged
                and Agreed for purposes of Sections 7.08, 7.09 and
                7.10:

               

              CLAYTON
                FIXED INCOME SERVICES INC.

               

              By:
                /s/
                Kevin
                J. Kanouff       

              Name:
                Kevin J. Kanouff

              Title:
                President and General Counsel

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    
      	
              STATE
                OF North Carolina

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF Mecklenberg

            	
              )

            
	 	 

    

    On
      the
17th
      day of
      November 2006, before me, a notary public in and for said State, personally
      appeared _Doris
      J. Hearn_
      known
      to me to be a officer of ACE Securities Corp., one of the corporations that
      executed the within instrument, and also known to me to be the person who
      executed it on behalf of said corporation, and acknowledged to me that such
      corporation executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

     

    
      
        	
                /s/
                  Patricia C. Harris     

                Notary
                  Public

              

      

    

     

    
    

    
      	
              [Notarial
                Seal]

            	
              My
                commission expires 10/14/2011

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    
      	
              STATE
                OF North Carolina

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF Mecklenberg

            	
              )

            
	 	 

    

    On
      the
22nd
      day of
      November 2006, before me, a notary public in and for said State, personally
      appeared _Evelyn
      Echevarria__,
      known
      to me to be a officer of ACE Securities Corp., one of the corporations that
      executed the within instrument, and also known to me to be the person who
      executed it on behalf of said corporation, and acknowledged to me that such
      corporation executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    

    
       

      
        
          	
                  /s/
                    Cynthia A. Reames      

                  Notary
                    Public

                

        

      

       

    

    
    

    
      	
              [Notarial
                Seal]

            	
              My
                commission expires 07/04/2011

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF Maryland

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF Anne Arundel

            	
              )

            
	 	 

    

    On
      the
30th
      day of
      November 2006, before me, a notary public in and for said State, personally
      appeared _Stacey
      M. Taylor___,
      known
      to me to be a Vice President of Wells Fargo Bank, National Association, one
      of
      the national banking associations that executed the within instrument, and
      also
      known to me to be the person who executed it on behalf of said national banking
      association, and acknowledged to me that such national banking association
      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/
                    Jennifer Richardson         
                    

                  Notary
                    Public

                

        

      

       

    

    
    

    
      	
              [Notarial
                Seal]

            	
              My
                commission expires 04/01/2010

            

    

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              STATE
                OF California

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF Los Angeles

            	
              )

            
	 	 

    

    On
      the
      30th day of November 2006, before me, a notary public in and for said State,
      personally appeared _Jordan
      Cohen__
      known
      to me to be a Vice President of Countrywide Home Loans Servicing LP, one of
      the
      limited partnerships that executed the within instrument, and also known to
      me
      to be the person who executed it on behalf of said limited partnership, and
      acknowledged to me that such limited partnership executed the within
      instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    

    
       

      
        
          	
                  /s/
                    Glenda J. Daniel        
                    

                  Notary
                    Public

                

        

      

       

    

    
    

    
      	
              [Notarial
                Seal]

            	
              My
                commission expires 10/15/2009

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      	
              STATE
                OF New York

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF King

            	
              )

            
	 	 

    

    On
      the
30th
      day of
      November 2006, before me, a notary public in and for said State, personally
      appeared _Fernando
      Acebedo__
      known
      to me to be a Vice President of HSBC Bank USA, National Association, one of
      the
      national banking associations that executed the within instrument, and also
      known to me to be the person who executed it on behalf of said national banking
      association, and acknowledged to me that such national banking association
      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/
                    Doris
                    Wong            
                    

                  Notary
                         Public

                

        

      

       

    

    
    

    
      	
              [Notarial
                Seal]

            	
              My
                commission expires 08/07/2010

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A-1

     

    FORM
      OF
      CLASS A-[1A][1B][2A][2B][2C][2D] CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
      EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
      CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
      IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
      HEREIN.

     

    PRIOR
      TO THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, ANY PERSON ACQUIRING
      THIS
      CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS IN SECTION 6.02(c)
      OF THE AGREEMENT REFERRED TO HEREIN.

     

    
      
        
        

      

      
        A-1-1

        
          

        

      

      
        
        

      

    

    

    
      	
              Series
                2006-NC3, Class A-[1A][1B][2A][2B][2C][2D]

            	 	
              Aggregate
                Certificate Principal Balance of the Class A-[1A][1B][2A][2B][2C][2D]
                Certificates as of the Issue Date: $_____________

            
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $____________

            
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date: November 1,
                2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	
              First
                Distribution Date: December 26, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	
              No.
                __

            	 	
              Issue
                Date: November 30, 2006

            
	 	 	
              CUSIP:
                ________________

            

    

    

    DISTRIBUTIONS
      IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
      MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
      PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
      AS
      THE DENOMINATION OF THIS CERTIFICATE.

     

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-NC3

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
      by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE
      TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
      THE
      UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
      THE
      UNITED STATES.

     

    This
      certifies that ________________ is the registered owner of a Percentage Interest
      (obtained by dividing the denomination of this Certificate by the aggregate
      Certificate Principal Balance of the Class A-[1A][1B][2A][2B][2C][2D]
      Certificates as of the Issue Date) in that certain beneficial ownership interest
      evidenced by all of the Class A-[1A][1B][2A][2B][2C][2D] Certificates in REMIC
      III created pursuant to a Pooling and Servicing Agreement, dated as specified
      above (the “Agreement”), among ACE Securities Corp. as depositor (hereinafter
      called the “Depositor”, which term includes any successor entity under the
      Agreement), Wells Fargo Bank, N.A. as master servicer (the “Master Servicer”)
      and securities administrator (the “Securities Administrator”), Countrywide Home
      Loans Servicing LP as a servicer (the “Servicer”) and HSBC Bank USA, National
      Association as trustee (the “Trustee”), a summary of certain of the pertinent
      provisions of which is set forth hereafter. To the extent not defined herein,
      the capitalized terms used herein have the meanings assigned in the Agreement.
      This Certificate is issued under and is subject to the terms, provisions and
      conditions of the Agreement, to which Agreement the Holder of this Certificate
      by virtue of the acceptance hereof assents and by which such Holder is
      bound.

     

    
      
        
        

      

      
        A-1-2

        
          

        

      

      
        
        

      

       

    

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the Business
      Day
      immediately preceding such Distribution Date (the “Record Date”), in an amount
      equal to the product of the Percentage Interest evidenced by this Certificate
      and the amount required to be distributed to the Holders of Class
      A-[1A][1B][2A][2B][2C][2D] Certificates on such Distribution Date pursuant
      to
      the Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class
      A-[1A][1B][2A][2B][2C][2D] Certificates the aggregate initial Certificate
      Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
      (ii)
      two-thirds of the aggregate initial Certificate Principal Balance of the Class
      A-[1A][1B][2A][2B][2C][2D] Certificates, or otherwise by check mailed by first
      class mail to the address of the Person entitled thereto, as such name and
      address shall appear on the Certificate Register. Notwithstanding the above,
      the
      final distribution on this Certificate will be made after due notice by the
      Securities Administrator of the pendency of such distribution and only upon
      presentation and surrender of this Certificate at the office or agency appointed
      by the Securities Administrator for that purpose as provided in the
      Agreement.

     

    The
      Pass-Through Rate applicable to the calculation of interest payable with respect
      to this Certificate on any Distribution Date shall be a rate per annum equal
      to
      the lesser of (i) One-Month LIBOR plus [_____]%, in the case of each
      Distribution Date through and including the Distribution Date on which the
      aggregate principal balance of the Mortgage Loans (and properties acquired
      in
      respect thereof) remaining in the Trust Fund is reduced to less than or equal
      to
      10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
      Date, or One-Month LIBOR plus [_____]%, in the case of any Distribution Date
      thereafter and (ii) the applicable Net WAC Pass-Through Rate for such
      Distribution Date.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificate of the Series specified on the face hereof
      (herein called the “Certificates”) and representing a Percentage Interest in the
      Class of Certificates specified on the face hereof equal to the denomination
      specified on the face hereof divided by the aggregate Certificate Principal
      Balance of the Class of Certificates specified on the face hereof.

     

    
      
        
        

      

      
        A-1-3

        
          

        

      

      
        
        

      

    

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans and payments received pursuant to
      the
      Swap Agreement, all as more specifically set forth herein and in the Agreement.
      As provided in the Agreement, withdrawals from the Collection Account and the
      Distribution Account may be made from time to time for purposes other than
      distributions to Certificateholders, such purposes including reimbursement
      of
      advances made, or certain expenses incurred, with respect to the Mortgage Loans.
      

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer, the Trustee, the Securities Administrator, the Servicer and
      the
      rights of the Certificateholders under the Agreement at any time by the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator and
      the Servicer with the consent of the Swap Provider and the Holders of
      Certificates entitled to at least 66% of the Voting Rights. Any such consent
      by
      the Holder of this Certificate shall be conclusive and binding on such Holder
      and upon all future Holders of this Certificate and of any Certificate issued
      upon the transfer hereof or in exchange herefor or in lieu hereof whether or
      not
      notation of such consent is made upon this Certificate. The Agreement also
      permits the amendment thereof, in certain limited circumstances, without the
      consent of the Holders of any of the Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the 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 evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    Prior
      to
      the termination of the Supplemental Interest Trust, any transferee of this
      Certificate shall be deemed to make the representations in Section 6.02(c)
      of
      the Agreement.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same.

     

    No
      service charge will be made for any such registration of transfer or exchange
      of
      Certificates, but the Securities Administrator may require payment of a sum
      sufficient to cover any tax or other governmental charge that may be imposed
      in
      connection with any transfer or exchange of Certificates.

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer and any agent of the Depositor, the Master Servicer, the Trustee,
      the
      Securities Administrator or the Servicer may treat the Person in whose name
      this
      Certificate is registered as the owner hereof for all purposes, and none of
      the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer nor any such agent shall be affected by notice to the
      contrary.

     

    
      
        
        

      

      
        A-1-4

        
          

        

      

      
        
        

      

    

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assumes any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator, by manual signature, this Certificate shall not be entitled
      to
      any benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-1-5

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

    

    

    

    

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class A-[1A][1B][2A][2B][2C][2D] Certificates referred to in the
      within-mentioned Agreement.

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        A-1-6

        
          

        

      

      
        
        

      

    

     

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM

            	-	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT -

            	
                          
                Custodian           
                 

              (Cust)                  (Minor)

              under
                Uniform Gifts 

              to
                Minors Act

            
	
              TEN
                ENT

            	-	
              as
                tenants by the entireties

            	 	
              ___________________

              (State)

            
	
              JT
                TEN

            	-	
              as
                joint tenants with right 

              if
                survivorship and not as 

              tenants
                in common

            	 	 
	 	 	 	 	 
	
              Additional
                abbreviations may also be used though not in the above
                list.

            

    

    

    ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	 
	 	 
	 	 

    

    (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    a
      Percentage Interest equal to ____%
      evidenced by the within Asset Backed Pass-Through Certificate and hereby
      authorize(s) the registration of transfer of such interest to assignee on the
      Certificate Register of the Trust Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address:
      ________________________________________________

    
      	 	 	
              .

            

    

    

     

    
      	
              Dated:

            	 
	 	
              Signature
                by or on behalf of assignor

            
	 	 
	 	 
	 	
              Signature
                Guaranteed

            

    

     

    
      
        
        

      

      
        A-1-7

        
          

        

      

      
        
        

      

    

     

    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

            	 
	
              assignee
                named above, or

            	 
	
              its
                agent.

            	 

    

     

    
      
        
        

      

      
        A-1-8

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-2

     

    FORM
      OF
      CLASS M-[1][2][3][4][5][6][7][8][9] CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
      EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
      CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
      IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
      HEREIN.

     

    THIS
      CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES [[,/AND] CLASS M-1
      CERTIFICATES [,/AND] CLASS M-2 CERTIFICATES[,/AND] CLASS M-3 CERTIFICATES
      [,/AND] CLASS M-4 CERTIFICATES [,/AND] CLASS M-5 CERTIFICATES [,/AND] CLASS
      M-6
      CERTIFICATES [,/AND] CLASS M-7 CERTIFICATES [/AND] CLASS M-8 CERTIFICATES]
      TO
      THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

     

    ANY
      TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO MAKE THE REPRESENTATIONS
      SET
      FORTH IN SECTION 6.02(c) OF THE AGREEMENT REFERRED TO
      HEREIN.

     

    THE
      CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
      PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO AS DESCRIBED
      IN
      THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE
      OF
      THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL
      BE
      DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE
      MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES
      ADMINISTRATOR NAMED HEREIN.

     

    
      
        
        

      

      
        A-2-1

        
          

        

      

      
        
        

      

    

    

    
      	
              Series
                2006-NC3, Class M-[1][2][3][4][5][6][7][8][9]

            	 	
              Aggregate
                Certificate Principal Balance of the Class M-[1][2][3][4][5][6][7][8][9]
                Certificates as of the Issue Date: $______________

            
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $______________

            
	
              Date
                of Pooling and Servicing Agreement 

              and
                Cut-off Date: November 1, 2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	
              First
                Distribution Date: December 26, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	
              No.___

            	 	
              Issue
                Date: November 30, 2006

            
	 	 	
              CUSIP:_________________

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-NC3

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
      by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE
      TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
      THE
      UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
      THE
      UNITED STATES.

     

    This
      certifies that _____________________ is the registered owner of a Percentage
      Interest (obtained by dividing the denomination of this Certificate by the
      aggregate Certificate Principal Balance of the Class
      M-[1][2][3][4][5][6][7][8][9] Certificates as of the Issue Date) in that certain
      beneficial ownership interest evidenced by of all the Class
      M-[1][2][3][4][5][6][7][8][9] Certificates in REMIC III created pursuant to
      a
      Pooling and Servicing Agreement, dated as specified above (the “Agreement”),
      among ACE Securities Corp. as depositor (hereinafter called the “Depositor”,
      which term includes any successor entity under the Agreement), Wells Fargo
      Bank,
      N.A. as master servicer (the “Master Servicer”) and securities administrator
      (the “Securities Administrator”), Countrywide Home Loans Servicing LP as a
      servicer (the “Servicer”) and HSBC Bank USA, National Association as trustee
      (the “Trustee”), a summary of certain of the pertinent provisions of which is
      set forth hereafter. To the extent not defined herein, the capitalized terms
      used herein have the meanings assigned in the Agreement. This Certificate is
      issued under and is subject to the terms, provisions and conditions of the
      Agreement, to which Agreement the Holder of this Certificate by virtue of the
      acceptance hereof assents and by which such Holder is bound.

     

    
      
        
        

      

      
        A-2-2

        
          

        

      

      
        
        

      

       

    

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the Business
      Day
      immediately preceding such Distribution Date (the “Record Date”), in an amount
      equal to the product of the Percentage Interest evidenced by this Certificate
      and the amount required to be distributed to the Holders of Class
      M-[1][2][3][4][5][6][7][8][9] Certificates on such Distribution Date pursuant
      to
      the Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class
      M-[1][2][3][4][5][6][7][8][9] Certificates the aggregate initial Certificate
      Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
      (ii)
      two-thirds of the aggregate initial Certificate Principal Balance of the Class
      M-[1][2][3][4][5][6][7][8][9] Certificates, or otherwise by check mailed by
      first class mail to the address of the Person entitled thereto, as such name
      and
      address shall appear on the Certificate Register. Notwithstanding the above,
      the
      final distribution on this Certificate will be made after due notice by the
      Securities Administrator of the pendency of such distribution and only upon
      presentation and surrender of this Certificate at the office or agency appointed
      by the Securities Administrator for that purpose as provided in the
      Agreement.

     

    The
      Pass-Through Rate applicable to the calculation of interest payable with respect
      to this Certificate on any Distribution Date shall equal a rate per annum equal
      to the lesser of (i) One-Month LIBOR plus [____]% , in the case of each
      Distribution Date through and including the Distribution Date on which the
      aggregate principal balance of the Mortgage Loans (and properties acquired
      in
      respect thereof) remaining in the Trust Fund is reduced to less than or equal
      to
      10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
      Date, or One-Month LIBOR plus [____]%, in the case of any Distribution Date
      thereafter and (ii) the applicable Net WAC Pass-Through Rate for such
      Distribution Date.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificate of the Series specified on the face hereof
      (herein called the “Certificates”) and representing a Percentage Interest in the
      Class of Certificates specified on the face hereof equal to the denomination
      specified on the face hereof divided by the aggregate Certificate Principal
      Balance of the Class of Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans and payments received pursuant to
      the
      Swap Agreement, all as more specifically set forth herein and in the Agreement.
      As provided in the Agreement, withdrawals from the Collection Account and the
      Distribution Account may be made from time to time for purposes other than
      distributions to Certificateholders, such purposes including reimbursement
      of
      advances made, or certain expenses incurred, with respect to the Mortgage
      Loans.

     

    
      
        
        

      

      
        A-2-3

        
          

        

      

      
        
        

      

    

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer, the Trustee, the Securities Administrator, the Servicer and
      the
      rights of the Certificateholders under the Agreement at any time by the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator and
      the Servicer with the consent of the Swap Provider and the Holders of
      Certificates entitled to at least 66% of the Voting Rights. Any such consent
      by
      the Holder of this Certificate shall be conclusive and binding on such Holder
      and upon all future Holders of this Certificate and of any Certificate issued
      upon the transfer hereof or in exchange herefor or in lieu hereof whether or
      not
      notation of such consent is made upon this Certificate. The Agreement also
      permits the amendment thereof, in certain limited circumstances, without the
      consent of the Holders of any of the Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the 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 evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same.

     

    Any
      transferee of this Certificate shall be deemed to make the representations
      set
      forth in Section 6.02(c) of the Agreement.

     

    No
      service charge will be made for any such registration of transfer or exchange
      of
      Certificates, but the Securities Administrator may require payment of a sum
      sufficient to cover any tax or other governmental charge that may be imposed
      in
      connection with any transfer or exchange of Certificates.

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer and any agent of the Depositor, the Master Servicer, the Trustee,
      the
      Securities Administrator or the Servicer may treat the Person in whose name
      this
      Certificate is registered as the owner hereof for all purposes, and none of
      the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer nor any such agent shall be affected by notice to the
      contrary.

     

    
      
        
        

      

      
        A-2-4

        
          

        

      

      
        
        

      

    

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator by manual signature, this Certificate shall not be entitled to
      any
      benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-2-5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

    

    

    

    

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class M-[1][2][3][4][5][6][7][8][9] Certificates referred to in
      the
      within-mentioned Agreement.

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        A-2-6

        
          

        

      

      
        
        

      

    

     

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

    
       

      
        	
                TEN
                  COM

              	-	
                as
                  tenants in common

              	
                UNIF
                  GIFT MIN ACT -

              	
                            
                  Custodian           
                   

                (Cust)                  (Minor)

                under
                  Uniform Gifts 

                to
                  Minors Act

              
	
                TEN
                  ENT

              	-	
                as
                  tenants by the entireties

              	 	
                ___________________

                (State)

              
	
                JT
                  TEN

              	-	
                as
                  joint tenants with right 

                if
                  survivorship and not as 

                tenants
                  in common

              	 	 
	 	 	 	 	 
	
                Additional
                  abbreviations may also be used though not in the above
                  list.

              

      

      
ASSIGNMENT

    

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	 
	 	 
	 	 

    

     (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    a
      Percentage Interest equal to _____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address:
      ______________________________________________________________

    
      	 	 	
              .

            

    

    

     

    
      	
              Dated:

            	 
	 	
              Signature
                by or on behalf of assignor

            
	 	 
	 	 
	 	
              Signature
                Guaranteed

            

    

     

    
      
        
        

      

      
        A-2-7

        
          

        

      

      
        
        

      

    

    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

            	 
	
              assignee
                named above, or

            	 
	
              its
                agent.

            	 

    

    

    
      
        
        

      

      
        A-2-8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-3

     

    FORM
      OF
      CLASS M-[10][11] CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
      EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
      CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
      IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
      HEREIN.

     

    THIS
      CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, 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 [,/AND] CLASS M-9 CERTIFICATES [[AND] CLASS M-10 CERTIFICATES]
      TO
      THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

     

    THE
      CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
      PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO AS DESCRIBED
      IN
      THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE
      OF
      THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL
      BE
      DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE
      MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES
      ADMINISTRATOR NAMED HEREIN.

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES
      LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS
      CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY
      IN
      COMPLIANCE WITH THE ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED
      STATES WITHIN THE MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE
      ACT
      (“REGULATION S”), OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED
      INSTITUTIONAL BUYERS” WITHIN THE MEANING OF AND IN COMPLIANCE WITH RULE 144A
      UNDER THE ACT (“RULE 144A”) OR (B) TO INSTITUTIONAL INVESTORS THAT ARE
“ACCREDITED INVESTORS” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF
“REGULATION D” UNDER THE ACT.

     

    
      
        
        

      

      
        A-3-1

        
          

        

      

      
        
        

      

    

    [THIS
      CERTIFICATE IS A REGULATION S TEMPORARY GLOBAL CERTIFICATE FOR PURPOSES OF
      REGULATION S UNDER THE ACT. PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER
      OF
      (I) THE COMMENCEMENT OF THE OFFERING OF THE OFFERED CERTIFICATES AND (II) THE
      CLOSING DATE, THIS CERTIFICATE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
      TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN
      EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT.]

     

    [NO
      BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL CERTIFICATE SHALL BE
      ENTITLED TO RECEIVE PAYMENTS OF PRINCIPAL OR INTEREST HEREIN UNLESS THE REQUIRED
      CERTIFICATIONS HAVE BEEN DELIVERED PURSUANT TO THE TERMS OF THE AGREEMENT (AS
      DEFINED HEREIN).]

     

    [THE
      HOLDER OF THIS REGULATION S PERMANENT GLOBAL CERTIFICATE BY ITS ACCEPTANCE
      HEREOF AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH CERTIFICATE WITHIN
      THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE
      ACT)
      PRIOR TO THE DATE WHICH IS THE LATER OF (I) 40 DAYS AFTER THE LATER OF THE
      CLOSING DATE AND (II) THE DATE ON WHICH THE REQUISITE CERTIFICATIONS ARE DUE
      TO
      AND PROVIDED TO THE TRUSTEE AND SECURITIES ADMINISTRATOR PURSUANT TO THE
      AGREEMENT (AS DEFINED BELOW), EXCEPT PURSUANT TO AN EXEMPTION FROM THE
      REGISTRATION REQUIREMENTS OF THE ACT.]

     

    NO
      TRANSFER OF THIS CERTIFICATE TO A PLAN SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
      SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE CODE, ANY
      PERSON ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF OF ANY SUCH PLAN OR ANY

     

    
      
        
        

      

      
        A-3-2

        
          

        

      

      
        
        

      

    

     

    PERSON
      USING “PLAN ASSETS” TO ACQUIRE THIS CERTIFICATE SHALL BE MADE EXCEPT IN
      ACCORDANCE WITH SECTION 6.02(c) OF THE AGREEMENT REFERRED TO
      HEREIN.

     

    
      
        
        

      

      
        A-3-3

        
          

        

      

      
        
        

      

    

     

    
      	
              Series
                2006-NC3, Class M-[10][11]

            	 	
              Aggregate
                Certificate Principal Balance of the Class M-[10][11] Certificates
                as of
                the Issue Date: $______________

            
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $______________

            
	
              Date
                of Pooling and Servicing Agreement 

              and
                Cut-off Date: November 1, 2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	
              First
                Distribution Date: December 26, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	
              No.___

            	 	
              Issue
                Date: November 30, 2006

            
	 	 	
              CUSIP:_________________

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-NC3

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
      by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE
      TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
      THE
      UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
      THE
      UNITED STATES.

     

    This
      certifies that _____________________ is the registered owner of a Percentage
      Interest (obtained by dividing the denomination of this Certificate by the
      aggregate Certificate Principal Balance of the Class M-[10][11] Certificates
      as
      of the Issue Date) in that certain beneficial ownership interest evidenced
      by of
      all the Class M-[10][11] Certificates in REMIC III created pursuant to a Pooling
      and Servicing Agreement, dated as specified above (the “Agreement”), among ACE
      Securities Corp. as depositor (hereinafter called the “Depositor”, which term
      includes any successor entity under the Agreement), Wells Fargo Bank, N.A.
      as
      master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Countrywide Home Loans Servicing LP as a servicer
      (the “Servicer”) and HSBC Bank USA, National Association as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set
      forth hereafter. To the extent not defined herein, the capitalized terms used
      herein have the meanings assigned in the Agreement. This Certificate is issued
      under and is subject to the terms, provisions and conditions of the Agreement,
      to which Agreement the Holder of this Certificate by virtue of the acceptance
      hereof assents and by which such Holder is bound.

     

    
      
        
        

      

      
        A-3-4

        
          

        

      

      
        
        

      

    

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the Business
      Day
      immediately preceding such Distribution Date (the “Record Date”), in an amount
      equal to the product of the Percentage Interest evidenced by this Certificate
      and the amount required to be distributed to the Holders of Class M-[10][11]
      Certificates on such Distribution Date pursuant to the Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class M-[10][11] Certificates
      the aggregate initial Certificate Principal Balance of which is in excess of
      the
      lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
      Principal Balance of the Class M-[10][11] Certificates, or otherwise by check
      mailed by first class mail to the address of the Person entitled thereto, as
      such name and address shall appear on the Certificate Register. Notwithstanding
      the above, the final distribution on this Certificate will be made after due
      notice by the Securities Administrator of the pendency of such distribution
      and
      only upon presentation and surrender of this Certificate at the office or agency
      appointed by the Securities Administrator for that purpose as provided in the
      Agreement.

     

    The
      Pass-Through Rate applicable to the calculation of interest payable with respect
      to this Certificate on any Distribution Date shall equal a rate per annum equal
      to the lesser of (i) One-Month LIBOR plus [____]% , in the case of each
      Distribution Date through and including the Distribution Date on which the
      aggregate principal balance of the Mortgage Loans (and properties acquired
      in
      respect thereof) remaining in the Trust Fund is reduced to less than or equal
      to
      10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
      Date, or One-Month LIBOR plus [____]%, in the case of any Distribution Date
      thereafter and (ii) the applicable Net WAC Pass-Through Rate for such
      Distribution Date.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificate of the Series specified on the face hereof
      (herein called the “Certificates”) and representing a Percentage Interest in the
      Class of Certificates specified on the face hereof equal to the denomination
      specified on the face hereof divided by the aggregate Certificate Principal
      Balance of the Class of Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans and payments received pursuant to
      the
      Swap Agreement, all as more specifically set forth herein and in the Agreement.
      As provided in the Agreement, withdrawals from the Collection Account and the
      Distribution Account may be made from time to time for purposes other than
      distributions to Certificateholders, such purposes including reimbursement
      of
      advances made, or certain expenses incurred, with respect to the Mortgage
      Loans.

     

    
      
        
        

      

      
        A-3-5

        
          

        

      

      
        
        

      

    

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer, the Trustee, the Securities Administrator, the Servicer and
      the
      rights of the Certificateholders under the Agreement at any time by the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator and
      the Servicer with the consent of the Swap Provider and the Holders of
      Certificates entitled to at least 66% of the Voting Rights. Any such consent
      by
      the Holder of this Certificate shall be conclusive and binding on such Holder
      and upon all future Holders of this Certificate and of any Certificate issued
      upon the transfer hereof or in exchange herefor or in lieu hereof whether or
      not
      notation of such consent is made upon this Certificate. The Agreement also
      permits the amendment thereof, in certain limited circumstances, without the
      consent of the Holders of any of the Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the 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 evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same.

     

    No
      transfer of this Certificate shall be made unless the transfer is made pursuant
      to an effective registration statement under the Act, and an 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 this Certificate is to be made without
      registration or qualification, the Securities Administrator shall require
      receipt of (i) if such transfer is purportedly being made in reliance upon
      Rule
      144A under the Act, written certifications from the Holder of the Certificate
      desiring to effect the transfer, and from such Holder’s prospective transferee,
      substantially in the forms attached to the Agreement as Exhibit B-1, (ii) if
      such transfer is purportedly being made in reliance upon Regulation S under
      the
      Act, written certifications from the Holder of the Certificate desiring to
      effect the transfer and from such Holder’s prospective transferee, substantially
      in the form attached to the Agreement as Exhibit B-2, (iii) if such transfer
      is
      purportedly being made in reliance upon Rule 501(a) under the Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-3 and (iv) in all other cases,
      an
      Opinion of Counsel satisfactory to it that such transfer may be made without
      such registration or qualification (which Opinion of Counsel shall not be an
      expense of the Trust Fund or of the Depositor, the Trustee, the Master Servicer
      or the Securities Administrator in their respective capacities as such),
      together with copies of the written certification(s) of the Holder of the
      Certificate desiring to effect the transfer and/or such Holder’s prospective
      transferee upon which such Opinion of Counsel is based. None of the Depositor,
      the Trustee or the Securities Administrator is obligated to register or qualify
      the Class of Certificates specified on the face hereof under the Act or any
      other securities law or to take any action not otherwise required under the
      Agreement to permit the transfer of such Certificates without registration
      or
      qualification. Any Holder desiring to effect a transfer of this Certificate
      shall be required to indemnify the Trustee, the Depositor, the Master Servicer
      and the Securities Administrator 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.

     

    
      
        
        

      

      
        A-3-6

        
          

        

      

      
        
        

      

    

    No
      transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
      the
      Code, any Person acting, directly or indirectly, on behalf of any such Plan
      or
      any Person using “Plan Assets” to acquire this Certificate shall be made except
      in accordance with Section 6.02(c) of the Agreement.

     

    No
      service charge will be made for any such registration of transfer or exchange
      of
      Certificates, but the Securities Administrator may require payment of a sum
      sufficient to cover any tax or other governmental charge that may be imposed
      in
      connection with any transfer or exchange of Certificates.

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer and any agent of the Depositor, the Master Servicer, the Trustee,
      the
      Securities Administrator or the Servicer may treat the Person in whose name
      this
      Certificate is registered as the owner hereof for all purposes, and none of
      the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer nor any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    
      
        
        

      

      
        A-3-7

        
          

        

      

      
        
        

      

    

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator by manual signature, this Certificate shall not be entitled to
      any
      benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-3-8

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

    

    

    

    

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class M-[10][11] Certificates referred to in the within-mentioned
      Agreement.

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        A-3-9

        
          

        

      

      
        
        

      

    

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

    
       

      
        	
                TEN
                  COM

              	-	
                as
                  tenants in common

              	
                UNIF
                  GIFT MIN ACT -

              	
                            
                  Custodian           
                   

                (Cust)                  (Minor)

                under
                  Uniform Gifts 

                to
                  Minors Act

              
	
                TEN
                  ENT

              	-	
                as
                  tenants by the entireties

              	 	
                ___________________

                (State)

              
	
                JT
                  TEN

              	-	
                as
                  joint tenants with right 

                if
                  survivorship and not as 

                tenants
                  in common

              	 	 
	 	 	 	 	 
	
                Additional
                  abbreviations may also be used though not in the above
                  list.

              

      

       

    

    ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	 
	 	 
	 	 

    

     (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    a
      Percentage Interest equal to _____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address:
      ______________________________________________________________

    
      	 	 	
              .

            

    

    

     

    
      	
              Dated:

            	 
	 	
              Signature
                by or on behalf of assignor

            
	 	 
	 	 
	 	
              Signature
                Guaranteed

            

    

     

    
      
        
        

      

      
        A-3-10

        
          

        

      

      
        
        

      

    

    

    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

            	 
	
              assignee
                named above, or

            	 
	
              its
                agent.

            	 

    

    

    
      
        
        

      

      
        A-3-11

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-4

     

    FORM
      OF
      CLASS CE CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    THIS
      CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND MEZZANINE
      CERTIFICATES TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO
      HEREIN.

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER
      HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE
      REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
      THE
      ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES WITHIN THE
      MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE ACT (“REGULATION S”),
      OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED INSTITUTIONAL BUYERS” WITHIN
      THE MEANING OF AND IN COMPLIANCE WITH RULE 144A UNDER THE ACT (“RULE 144A”) OR
      (B) TO INSTITUTIONAL INVESTORS THAT ARE “ACCREDITED INVESTORS” WITHIN THE
      MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF “REGULATION D” UNDER THE
      ACT.

     

    NO
      TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
      PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE AGREEMENT REFERRED
      TO HEREIN.

     

    
      
        
        

      

      
        A-4-1

        
          

        

      

      
        
        

      

    

     

    
      	
              Series
                2006-NC3, Class CE

            	 	
              Aggregate
                Certificate Principal Balance of the Class CE Certificates as of
                the Issue
                Date: $_____________

            
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $_________________

            
	
              Cut-off
                Date and date of Pooling and Servicing Agreement: November 1,
                2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	
              First
                Distribution Date: December 26, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	
              No.
                __

            	 	
              Issue
                Date: November 30, 2006

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-NC3

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
      by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE
      TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
      THE
      UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
      THE
      UNITED STATES.

     

    This
      certifies that ________________ is the registered owner of a Percentage Interest
      (obtained by dividing the denomination of this Certificate by the aggregate
      Certificate Principal Balance of the Class CE Certificates as of the Issue
      Date)
      in that certain beneficial ownership interest evidenced by all of the Class
      CE
      Certificates in REMIC III created pursuant to a Pooling and Servicing Agreement,
      dated as specified above (the “Agreement”), among ACE Securities Corp. as
      depositor (hereinafter called the “Depositor,” which term includes any successor
      entity under the Agreement), Wells Fargo Bank, N.A. as master servicer (the
      “Master Servicer”) and securities administrator (the “Securities
      Administrator”), Countrywide Home Loans Servicing LP as a servicer (the
“Servicer”) and HSBC Bank USA, National Association as trustee (the “Trustee”),
      a summary of certain of the pertinent provisions of which is set forth
      hereafter. To the extent not defined herein, the capitalized terms used herein
      have the meanings assigned in the Agreement. This Certificate is issued under
      and is subject to the terms, provisions and conditions of the Agreement, to
      which Agreement the Holder of this Certificate by virtue of the acceptance
      hereof assents and by which such Holder is bound.

     

    Interest
      on this Certificate will accrue during the month prior to the month in which
      a
      Distribution Date (as hereinafter defined) occurs on the Notional Amount (as
      defined in the Agreement) hereof at a per annum rate equal to the applicable
      Pass-Through Rate as set forth in the Agreement. Pursuant to the terms of the
      Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the last Business
      Day of the calendar month immediately preceding the month in which the related
      Distribution Date occurs (the “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 the Holders of Class CE Certificates on such Distribution
      Date pursuant to the Agreement.

     

    
      
        
        

      

      
        A-4-2

        
          

        

      

      
        
        

      

    

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class CE Certificates the
      aggregate initial Certificate Principal Balance of which is in excess of the
      lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
      Principal Balance of the Class CE Certificates, or otherwise by check mailed
      by
      first class mail to the address of the Person entitled thereto, as such name
      and
      address shall appear on the Certificate Register. Notwithstanding the above,
      the
      final distribution on this Certificate will be made after due notice by the
      Securities Administrator of the pendency of such distribution and only upon
      presentation and surrender of this Certificate at the office or agency appointed
      by the Securities Administrator for that purpose as provided in the
      Agreement.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificate of the Series specified on the face hereof
      (herein called the “Certificates”) and representing a Percentage Interest in the
      Class of Certificates specified on the face hereof equal to the denomination
      specified on the face hereof divided by the aggregate Certificate Principal
      Balance of the Class of Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans, all as more specifically set forth
      herein and in the Agreement. As provided in the Agreement, withdrawals from
      the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer, the Trustee, the Securities Administrator, the Servicer and
      the
      rights of the Certificateholders under the Agreement at any time by the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator and
      the Servicer with the consent of the Swap Provider and the Holders of
      Certificates entitled to at least 66% of the Voting Rights. Any such consent
      by
      the Holder of this Certificate shall be conclusive and binding on such Holder
      and upon all future Holders of this Certificate and of any Certificate issued
      upon the transfer hereof or in exchange herefor or in lieu hereof whether or
      not
      notation of such consent is made upon this Certificate. The Agreement also
      permits the amendment thereof, in certain limited circumstances, without the
      consent of the Holders of any of the Certificates.

     

    
      
        
        

      

      
        A-4-3

        
          

        

      

      
        
        

      

    

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the 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 evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    No
      transfer of this Certificate shall be made unless the transfer is made pursuant
      to an effective registration statement under the Securities Act of 1933, as
      amended (the “1933 Act”), and an 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
      this Certificate is to be made without registration or qualification, the
      Securities Administrator shall require receipt of (i) if such transfer is
      purportedly being made in reliance upon Rule 144A under the Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer, and from such Holder’s prospective transferee, substantially in the
      forms attached to the Agreement as Exhibit B-1, (ii) if such transfer is
      purportedly being made in reliance upon Regulation S under the Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-2, (iii) if such transfer is
      purportedly being made in reliance upon Rule 501(a) under the Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-3 and (iv) in all other cases,
      an
      Opinion of Counsel satisfactory to it that such transfer may be made without
      such registration or qualification (which Opinion of Counsel shall not be an
      expense of the Trust Fund or of the Depositor, the Trustee, the Master Servicer
      or the Securities Administrator in their respective capacities as such),
      together with copies of the written certification(s) of the Holder of the
      Certificate desiring to effect the transfer and/or such Holder’s prospective
      transferee upon which such Opinion of Counsel is based. None of the Depositor,
      the Trustee or the Securities Administrator is obligated to register or qualify
      the Class of Certificates specified on the face hereof under the 1933 Act or
      any
      other securities law or to take any action not otherwise required under the
      Agreement to permit the transfer of such Certificates without registration
      or
      qualification. Any Holder desiring to effect a transfer of this Certificate
      shall be required to indemnify the Trustee, the Depositor, the Master Servicer
      and the Securities Administrator against any liability that may result if the
      transfer is not so exempt or is not made in accordance with such federal and
      state laws.

     

    No
      transfer of this Certificate shall be made except in accordance with Section
      6.02(c) of the Agreement.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same. No service charge
      will be made for any such registration of transfer or exchange of Certificates,
      but the Securities Administrator may require payment of a sum sufficient to
      cover any tax or other governmental charge that may be imposed in connection
      with any transfer or exchange of Certificates.

     

    
      
        
        

      

      
        A-4-4

        
          

        

      

      
        
        

      

    

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer and any agent of the Depositor, the Master Servicer, the Trustee,
      the
      Securities Administrator or the Servicer may treat the Person in whose name
      this
      Certificate is registered as the owner hereof for all purposes, and none of
      the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer nor any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator, by manual signature, this Certificate shall not be entitled
      to
      any benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-4-5

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

    

    

    

    

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class CE Certificates referred to in the within-mentioned
      Agreement.

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        A-4-6

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

    
      
         

        
          	
                  TEN
                    COM

                	-	
                  as
                    tenants in common

                	
                  UNIF
                    GIFT MIN ACT -

                	
                              
                    Custodian           
                     

                  (Cust)                  (Minor)

                  under
                    Uniform Gifts 

                  to
                    Minors Act

                
	
                  TEN
                    ENT

                	-	
                  as
                    tenants by the entireties

                	 	
                  ___________________

                  (State)

                
	
                  JT
                    TEN

                	-	
                  as
                    joint tenants with right 

                  if
                    survivorship and not as 

                  tenants
                    in common

                	 	 
	 	 	 	 	 
	
                  Additional
                    abbreviations may also be used though not in the above
                    list.

                

        

         

      
ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	 
	 	 
	 	 

    

    (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee) 

     

    a
      Percentage Interest equal to ____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address:
      ______________________________________________________________

    
      	 	 	
              .

            

    

    

     

    
      	
              Dated:

            	 
	 	
              Signature
                by or on behalf of assignor

            
	 	 
	 	 
	 	
              Signature
                Guaranteed

            

    

     

    
      
        
        

      

      
        A-4-7

        
          

        

      

      
        
        

      

    

    

    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

            	 
	
              assignee
                named above, or

            	 
	
              its
                agent.

            	 

    

    

    
      
        
        

      

      
        A-4-8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-5

     

    FORM
      OF
      CLASS P CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES,
      THIS CERTIFICATE IS A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT
      CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
      THE INTERNAL REVENUE CODE OF 1986, AS MENDED (THE “CODE”).

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER
      HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE
      REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
      THE
      ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES WITHIN THE
      MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE ACT (“REGULATION S”),
      OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED INSTITUTIONAL BUYERS” WITHIN
      THE MEANING OF AND IN COMPLIANCE WITH RULE 144A UNDER THE ACT (“RULE 144A”) OR
      (B) TO INSTITUTIONAL INVESTORS THAT ARE “ACCREDITED INVESTORS” WITHIN THE
      MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF “REGULATION D” UNDER THE
      ACT.

     

    NO
      TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
      PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE AGREEMENT REFERRED
      TO HEREIN.

     

    
      
        
        

      

      
        A-5-1

        
          

        

      

      
        
        

      

    

     

    
      	
              Series
                2006-NC3, Class P

            	 	
              Aggregate
                Certificate Principal Balance of the Class P Certificates as of the
                Issue
                Date: $100.00

            
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date: November 1,
                2006

            	 	
              Denomination:
                $100.00

            
	
              First
                Distribution Date: December 26, 2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	
              No.
                __

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	
              Issue
                Date: November 30, 2006

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-NC3

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
      by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE
      TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
      THE
      UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
      THE
      UNITED STATES.

     

    This
      certifies that____________________ is the registered owner of a Percentage
      Interest (obtained by dividing the denomination of this Certificate by the
      aggregate Certificate Principal Balance of the Class P Certificates as of the
      Issue Date) in that certain beneficial ownership interest evidenced by all
      of
      the Class P Certificates in REMIC III created pursuant to a Pooling and
      Servicing Agreement, dated as specified above (the “Agreement”), among ACE
      Securities Corp. as depositor (hereinafter called the “Depositor”, which term
      includes any successor entity under the Agreement), Wells Fargo Bank, N.A.
      as
      master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Countrywide Home Loans Servicing LP as a servicer
      (the “Servicer”) and HSBC Bank USA, National Association as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set
      forth hereafter. To the extent not defined herein, the capitalized terms used
      herein have the meanings assigned in the Agreement. This Certificate is issued
      under and is subject to the terms, provisions and conditions of the Agreement,
      to which Agreement the Holder of this Certificate by virtue of the acceptance
      hereof assents and by which such Holder is bound.

     

    
      
        
        

      

      
        A-5-2

        
          

        

      

      
        
        

      

    

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the last Business
      Day of the calendar month immediately preceding the month in which the related
      Distribution Date occurs (the “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 the Holders of Class P Certificates on such Distribution
      Date pursuant to the Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class P Certificates the
      aggregate initial Certificate Principal Balance of which is in excess of the
      lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
      Principal Balance of the Class P Certificates, or otherwise by check mailed
      by
      first class mail to the address of the Person entitled thereto, as such name
      and
      address shall appear on the Certificate Register. Notwithstanding the above,
      the
      final distribution on this Certificate will be made after due notice by the
      Securities Administrator of the pendency of such distribution and only upon
      presentation and surrender of this Certificate at the office or agency appointed
      by the Securities Administrator for that purpose as provided in the
      Agreement.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificate of the Series specified on the face hereof
      (herein called the “Certificates”) and representing a Percentage Interest in the
      Class of Certificates specified on the face hereof equal to the denomination
      specified on the face hereof divided by the aggregate Certificate Principal
      Balance of the Class of Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans, all as more specifically set forth
      herein and in the Agreement. As provided in the Agreement, withdrawals from
      the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer, the Trustee, the Securities Administrator, the Servicer and
      the
      rights of the Certificateholders under the Agreement at any time by the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator and
      the Servicer with the consent of the Swap Provider and the Holders of
      Certificates entitled to at least 66% of the Voting Rights. Any such consent
      by
      the Holder of this Certificate shall be conclusive and binding on such Holder
      and upon all future Holders of this Certificate and of any Certificate issued
      upon the transfer hereof or in exchange herefor or in lieu hereof whether or
      not
      notation of such consent is made upon this Certificate. The Agreement also
      permits the amendment thereof, in certain limited circumstances, without the
      consent of the Holders of any of the Certificates.

     

    
      
        
        

      

      
        A-5-3

        
          

        

      

      
        
        

      

    

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the 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 evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    No
      transfer of this Certificate shall be made unless the transfer is made pursuant
      to an effective registration statement under the Securities Act of 1933, as
      amended (the “1933 Act”), and an 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
      this Certificate is to be made without registration or qualification, the
      Securities Administrator shall require receipt of (i) if such transfer is
      purportedly being made in reliance upon Rule 144A under the Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer, and from such Holder’s prospective transferee, substantially in the
      forms attached to the Agreement as Exhibit B-1, (ii) if such transfer is
      purportedly being made in reliance upon Regulation S under the Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-2, (iii) if such transfer is
      purportedly being made in reliance upon Rule 501(a) under the Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-3 and (iv) in all other cases,
      an
      Opinion of Counsel satisfactory to it that such transfer may be made without
      such registration or qualification (which Opinion of Counsel shall not be an
      expense of the Trust Fund or of the Depositor, the Trustee, the Master Servicer
      or the Securities Administrator in their respective capacities as such),
      together with copies of the written certification(s) of the Holder of the
      Certificate desiring to effect the transfer and/or such Holder’s prospective
      transferee upon which such Opinion of Counsel is based. None of the Depositor,
      the Trustee or the Securities Administrator is obligated to register or qualify
      the Class of Certificates specified on the face hereof under the 1933 Act or
      any
      other securities law or to take any action not otherwise required under the
      Agreement to permit the transfer of such Certificates without registration
      or
      qualification. Any Holder desiring to effect a transfer of this Certificate
      shall be required to indemnify the Trustee, the Depositor, the Master Servicer
      and the Securities Administrator against any liability that may result if the
      transfer is not so exempt or is not made in accordance with such federal and
      state laws.

     

    No
      transfer of this Certificate shall be made except in accordance with Section
      6.02(c) of the Agreement.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same. No service charge
      will be made for any such registration of transfer or exchange of Certificates,
      but the Securities Administrator may require payment of a sum sufficient to
      cover any tax or other governmental charge that may be imposed in connection
      with any transfer or exchange of Certificates.

     

    
      
        
        

      

      
        A-5-4

        
          

        

      

      
        
        

      

    

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer and any agent of the Depositor, the Master Servicer, the Trustee,
      the
      Securities Administrator or the Servicer may treat the Person in whose name
      this
      Certificate is registered as the owner hereof for all purposes, and none of
      the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer nor any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator, by manual signature, this Certificate shall not be entitled
      to
      any benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-5-5

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

    

    

    

    

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class P Certificates referred to in the within-mentioned
      Agreement.

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        A-5-6

        
          

        

      

      
        
        

      

    

     

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

    
      
         

        
          	
                  TEN
                    COM

                	-	
                  as
                    tenants in common

                	
                  UNIF
                    GIFT MIN ACT -

                	
                              
                    Custodian           
                     

                  (Cust)                  (Minor)

                  under
                    Uniform Gifts 

                  to
                    Minors Act

                
	
                  TEN
                    ENT

                	-	
                  as
                    tenants by the entireties

                	 	
                  ___________________

                  (State)

                
	
                  JT
                    TEN

                	-	
                  as
                    joint tenants with right 

                  if
                    survivorship and not as 

                  tenants
                    in common

                	 	 
	 	 	 	 	 
	
                  Additional
                    abbreviations may also be used though not in the above
                    list.

                

        

         

      
ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	 
	 	 
	 	 

    

    (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    a
      Percentage Interest equal to ____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address:
      ______________________________________________________________

    
      	 	 	
              .

            

    

    

     

    
      	
              Dated:

            	 
	 	
              Signature
                by or on behalf of assignor

            
	 	 
	 	 
	 	
              Signature
                Guaranteed

            

    

    

    
      
        
        

      

      
        A-5-7

        
          

        

      

      
        
        

      

    

    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

            	 
	
              assignee
                named above, or

            	 
	
              its
                agent.

            	 

    

    

    
      
        
        

      

      
        A-5-8

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-6

     

    FORM
      OF
      CLASS R CERTIFICATE

     

    THIS
      CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES
      PERSON.

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES,
      THIS CERTIFICATE REPRESENTS THE SOLE “RESIDUAL INTEREST” IN EACH “REAL ESTATE
      MORTGAGE INVESTMENT CONDUIT” (“REMIC”), AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    ANY
      RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
      IN
      ACCORDANCE WITH THE PROVISIONS OF SECTION 6.02 OF THE AGREEMENT REFERRED TO
      HEREIN.

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD
      OR
      TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD
      OR
      TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
      AND
      UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS
      OF SECTION 6.02 OF THE AGREEMENT.

     

    ANY
      RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
      IF
      THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE SECURITIES
      ADMINISTRATOR THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY
      POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN
      GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY
      OF
      ANY OF THE FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED
      IN SECTION 521 OF THE CODE) THAT IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER
      1 OF
      THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION
      511
      OF THE CODE, (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE
      CODE
      (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL
      HEREINAFTER BE REFERRED TO AS A “DISQUALIFIED ORGANIZATION”) OR (4) AN AGENT OF
      A DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE
      THE
      ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES CERTAIN
      ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED
      TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF
      ANY
      TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED
      ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION
      SHALL
      BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL
      NOT
      BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT
      NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER
      OF
      THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO
      THE
      PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION 6.02(d) OF THE
      AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION
      IS
      PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS
      CERTIFICATE.

     

    
      
        
        

      

      
        A-6-1

        
          

        

      

      
        
        

      

    

    NO
      PERSON MAY ACQUIRE THIS CERTIFICATE DIRECTLY OR INDIRECTLY BY, ON BEHALF OF,
      OR
      WITH PLAN ASSETS OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT
      THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
      1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, UNLESS
      IT HAS PROVIDED THE OPINION OF COUNSEL IN SECTION 6.02(c) OF THE AGREEMENT
      REFERRED TO HEREIN.

     

    
      
        
        

      

      
        A-6-2

        
          

        

      

      
        
        

      

    

     

    
      	
              Series
                2006-NC3, Class R

            	 	
              Aggregate
                Percentage Interest of the Class R Certificates as of the Issue Date:
                100.00%

            
	
              Date
                of Pooling and Servicing Agreement

              and
                Cut-off Date: November 1, 2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	
              First
                Distribution Date: December 26, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	
              No
                __

            	 	
              Issue
                Date: November 30, 2006

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-NC3

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
      by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE
      TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
      THE
      UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
      THE
      UNITED STATES.

     

    This
      certifies that _______________ is the registered owner of a Percentage Interest
      set forth above in that certain beneficial ownership interest evidenced by
      all
      of the Class R Certificates in REMIC III created pursuant to a Pooling and
      Servicing Agreement, dated as specified above (the “Agreement”), among ACE
      Securities Corp. as depositor (hereinafter called the “Depositor”, which term
      includes any successor entity under the Agreement), Wells Fargo Bank, N.A.
      as
      master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Countrywide Home Loans Servicing LP as a servicer
      (the “Servicer”) and HSBC Bank USA, National Association as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set
      forth hereafter. To the extent not defined herein, the capitalized terms used
      herein have the meanings assigned in the Agreement. This Certificate is issued
      under and is subject to the terms, provisions and conditions of the Agreement,
      to which Agreement the Holder of this Certificate by virtue of the acceptance
      hereof assents and by which such Holder is bound.

     

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th day of
      each month or, if such 25th day is not a Business Day, the Business Day
      immediately following (a “Distribution Date”), commencing on the First
      Distribution Date specified above, to the Person in whose name this Certificate
      is registered on the last Business Day of the calendar month immediately
      preceding the month in which the related Distribution Date occurs (the “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 the Holders
      of
      Class R Certificates on such Distribution Date pursuant to the
      Agreement.

     

    
      
        
        

      

      
        A-6-3

        
          

        

      

      
        
        

      

    

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class R Certificates, or
      otherwise by check mailed by first class mail to the address of the Person
      entitled thereto, as such name and address shall appear on the Certificate
      Register. Notwithstanding the above, the final distribution on this Certificate
      will be made after due notice by the Securities Administrator of the pendency
      of
      such distribution and only upon presentation and surrender of this Certificate
      at the office or agency appointed by the Securities Administrator for that
      purpose as provided in the Agreement.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificate of the Series specified on the face hereof
      (herein called the “Certificates”) and representing the Percentage Interest in
      the Class of Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans, all as more specifically set forth
      herein and in the Agreement. As provided in the Agreement, withdrawals from
      the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer, the Trustee, the Securities Administrator, the Servicer and
      the
      rights of the Certificateholders under the Agreement at any time by the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator and
      the Servicer with the consent of the Swap Provider and the Holders of
      Certificates entitled to at least 66% of the Voting Rights. Any such consent
      by
      the Holder of this Certificate shall be conclusive and binding on such Holder
      and upon all future Holders of this Certificate and of any Certificate issued
      upon the transfer hereof or in exchange herefor or in lieu hereof whether or
      not
      notation of such consent is made upon this Certificate. The Agreement also
      permits the amendment thereof, in certain limited circumstances, without the
      consent of the Holders of any of the Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the 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 evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    
      
        
        

      

      
        A-6-4

        
          

        

      

      
        
        

      

    

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, Certificates are exchangeable for new Certificates of the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same.

     

    No
      transfer of this Certificate shall be made unless the transfer is made pursuant
      to an effective registration statement under the Securities Act of 1933, as
      amended (the “1933 Act”), and an 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
      this Certificate is to be made without registration or qualification, the
      Securities Administrator shall require receipt of (i) if such transfer is
      purportedly being made in reliance upon Rule 144A under the Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer, and from such Holder’s prospective transferee, substantially in the
      forms attached to the Agreement as Exhibit B-1, (ii) if such transfer is
      purportedly being made in reliance upon Regulation S under the Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-2, (iii) if such transfer is
      purportedly being made in reliance upon Rule 501(a) under the Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-3 and (iv) in all other cases,
      an
      Opinion of Counsel satisfactory to it that such transfer may be made without
      such registration or qualification (which Opinion of Counsel shall not be an
      expense of the Trust Fund or of the Depositor, the Trustee, the Master Servicer
      or the Securities Administrator in their respective capacities as such),
      together with copies of the written certification(s) of the Holder of the
      Certificate desiring to effect the transfer and/or such Holder’s prospective
      transferee upon which such Opinion of Counsel is based. None of the Depositor,
      the Trustee or the Securities Administrator is obligated to register or qualify
      the Class of Certificates specified on the face hereof under the 1933 Act or
      any
      other securities law or to take any action not otherwise required under the
      Agreement to permit the transfer of such Certificates without registration
      or
      qualification. Any Holder desiring to effect a transfer of this Certificate
      shall be required to indemnify the Trustee, the Depositor, the Master Servicer
      and the Securities Administrator against any liability that may result if the
      transfer is not so exempt or is not made in accordance with such federal and
      state laws.

     

    No
      transfer of this Certificate shall be made except in accordance with Section
      6.02 of the Agreement.

     

    Prior
      to
      registration of any transfer, sale or other disposition of this Certificate,
      the
      proposed transferee shall provide to the Securities Administrator (i) an
      affidavit to the effect that such transferee is any Person other than a
      Disqualified Organization or the agent (including a broker, nominee or
      middleman) of a Disqualified Organization, and (ii) a certificate that
      acknowledges that (A) the Class R Certificates have been designated as
      representing the beneficial ownership of the residual interests in each of
      REMIC
      I, REMIC II and REMIC III, (B) it will include in its income a pro
      rata
      share of
      the net income of the Trust Fund and that such income may be an “excess
      inclusion,” as defined in the Code, that, with certain exceptions, cannot be
      offset by other losses or benefits from any tax exemption, and (C) it expects
      to
      have the financial means to satisfy all of its tax obligations including those
      relating to holding the Class R Certificates. Notwithstanding the registration
      in the Certificate Register of any transfer, sale or other disposition of this
      Certificate to a Disqualified Organization or an agent (including a broker,
      nominee or middleman) of a Disqualified Organization, such registration shall
      be
      deemed to be of no legal force or effect whatsoever and such Person shall not
      be
      deemed to be a Certificateholder for any purpose, including, but not limited
      to,
      the receipt of distributions in respect of this Certificate.

     

    
      
        
        

      

      
        A-6-5

        
          

        

      

      
        
        

      

    

    The
      Holder of this Certificate, by its acceptance hereof, shall be deemed to have
      consented to the provisions of Section 6.02 of the Agreement and to any
      amendment of the Agreement deemed necessary by counsel of the Depositor to
      ensure that the transfer of this Certificate to any Person other than a
      Permitted Transferee or any other Person will not cause any portion of the
      Trust
      Fund to cease to qualify as a REMIC or cause the imposition of a tax upon any
      REMIC.

     

    No
      service charge will be made for any such registration of transfer or exchange
      of
      Certificates, but the Securities Administrator may require payment of a sum
      sufficient to cover any tax or other governmental charge that may be imposed
      in
      connection with any transfer or exchange of Certificates.

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer and any agent of the Depositor, the Master Servicer, the Trustee,
      the
      Securities Administrator or the Servicer may treat the Person in whose name
      this
      Certificate is registered as the owner hereof for all purposes, and none of
      the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer nor any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date.

     

    
      
        
        

      

      
        A-6-6

        
          

        

      

      
        
        

      

    

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator, by manual signature, this Certificate shall not be entitled
      to
      any benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-6-7

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

    
 

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class R Certificates referred to in the within-mentioned
      Agreement.

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        A-6-8

        
          

        

      

      
        
        

      

    

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

    
      
         

        
          	
                  TEN
                    COM

                	-	
                  as
                    tenants in common

                	
                  UNIF
                    GIFT MIN ACT -

                	
                              
                    Custodian           
                     

                  (Cust)                  (Minor)

                  under
                    Uniform Gifts 

                  to
                    Minors Act

                
	
                  TEN
                    ENT

                	-	
                  as
                    tenants by the entireties

                	 	
                  ___________________

                  (State)

                
	
                  JT
                    TEN

                	-	
                  as
                    joint tenants with right 

                  if
                    survivorship and not as 

                  tenants
                    in common

                	 	 
	 	 	 	 	 
	
                  Additional
                    abbreviations may also be used though not in the above
                    list.

                

        

         

      
ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	 
	 	 
	 	 

    

    (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    a
      Percentage Interest equal to _____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address:
      ______________________________________________________________

    
      	 	 	
              .

            

    

    

     

    
      	
              Dated:

            	 
	 	
              Signature
                by or on behalf of assignor

            
	 	 
	 	 
	 	
              Signature
                Guaranteed

            

    

     

    
      
        
        

      

      
        A-6-9

        
          

        

      

      
        
        

      

    

    

    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

            	 
	
              assignee
                named above, or

            	 
	
              its
                agent.

            	 

    

     

    
      
        
        

      

      
        A-6-10

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B-1

     

    FORM
      OF
      TRANSFEROR REPRESENTATION LETTER

     

    [Date]

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-NC3

     

    
      	 	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-NC3 Asset Backed
                Pass-Through Certificates

              [Class
                M-10,] [Class M-11,] [Class CE,] [Class P] and [Class R]
                Certificates

            

    

    

    Ladies
      and Gentlemen:

     

    In
      connection with the transfer by ______________________ (the “Transferor”) to
      ___________________ (the “Transferee”) of the captioned asset backed
      pass-through certificates (the “Certificates”), the Transferor hereby certifies
      as follows:

     

    Neither
      the Transferor nor anyone acting on its behalf has (a) offered, pledged, sold,
      disposed of or otherwise transferred any Certificate, any interest in any
      Certificate or any other similar security to any person in any manner, (b)
      has
      solicited any offer to buy or to accept a pledge, disposition or other transfer
      of any Certificate, any interest in any Certificate or any other similar
      security from any person in any manner, (c) has otherwise approached or
      negotiated with respect to any Certificate, any interest in any Certificate
      or
      any other similar security with any person in any manner, (d) has made any
      general solicitation by means of general advertising or in any other manner,
      (e)
      has taken any other action, that (in the case of each of subclauses (a) through
      (e) above) would constitute a distribution of the Certificates under the
      Securities Act of 1933, as amended (the “1933 Act”), or would render the
      disposition of any Certificate a violation of Section 5 of the 1933 Act or
      any
      state securities law or would require registration or qualification pursuant
      thereto. The Transferor will not act, nor has it authorized or will it authorize
      any person to act, in any manner set forth in the foregoing sentence with
      respect to any Certificate. The Transferor will not sell or otherwise transfer
      any of the Certificates, except in compliance with the provisions of that
      certain Pooling and Servicing Agreement, dated as of November 1, 2006, among
      ACE
      Securities Corp. as Depositor, Wells Fargo Bank, N.A. as Master Servicer and
      Securities Administrator, Countrywide Home Loans Servicing LP as a Servicer
      and
      HSBC Bank USA, National Association as Trustee (the “Pooling and Servicing
      Agreement”), pursuant to which Pooling and Servicing Agreement the Certificates
      were issued.

     

    
      
        
        

      

      
        B-1-1

        
          

        

      

      
        
        

      

    

    

    Capitalized
      terms used but not defined herein shall have the meanings assigned thereto
      in
      the Pooling and Servicing Agreement.

     

    
      	 	 	 	 	 	 	 	
              Very
                truly yours,

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              [Transferor]

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:

            

    

    

    
      
        
        

      

      
        B-1-2

        
          

        

      

      
        
        

      

    

    

    FORM
      OF
      TRANSFEREE REPRESENTATION LETTER

     

    [Date]

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-NC3

     

    
      	 	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-NC3

              Asset
                Backed Pass-Through Certificates 

              [Class
                M-10,] [Class M-11,] [Class CE,] [Class P] and [Class R]
                Certificates

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with the purchase from ______________________________ (the
“Transferor”) on the date hereof of the captioned asset backed pass-through
      certificates (the “Certificates”), (the “Transferee”) hereby certifies as
      follows:

     

    1. The
      Transferee is a “qualified institutional buyer” as that term is defined in Rule
      144A (“Rule 144A”) under the Securities Act of 1933 (the “1933 Act”) and has
      completed either of the forms of certification to that effect attached hereto
      as
      Annex 1 or Annex 2. The Transferee is aware that the sale to it is being made
      in
      reliance on Rule 144A. The Transferee is acquiring the Certificates for its
      own
      account or for the account of a qualified institutional buyer, and understands
      that such Certificate 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 1933
      Act.

     

    2. The
      Transferee has been furnished with all information regarding (a) the
      Certificates and distributions thereon, (b) the nature, performance and
      servicing of the Mortgage Loans, (c) the Pooling and Servicing Agreement
      referred to below, and (d) any credit enhancement mechanism associated with
      the
      Certificates, that it has requested.

     

    3. The
      Transferee: (a) is not an employee benefit plan or other plan subject to the
      prohibited transaction provisions of the Employee Retirement Income Security
      Act
      of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of
      1986, as amended (the “Code”) (each, a “Plan”), or any other person (including
      an investment manager, a named fiduciary or a trustee of any Plan) acting,
      directly or indirectly, on behalf of or purchasing any Certificate with “plan
      assets” of any Plan within the meaning of the Department of Labor (“DOL”)
      regulation at 29 C.F.R. § 2510.3-101 or (b) for certificates other than the
      Class M-10 Certificates or Class M-11 Certificates, has provided the Securities
      Administrator with an opinion of counsel on which the Trustee, the Depositor,
      the Master Servicer, the Securities Administrator and the Servicer may rely,
      acceptable to and in form and substance satisfactory to the Securities
      Administrator to the effect that the purchase of Certificates is permissible
      under applicable law, will not constitute or result in any non-exempt prohibited
      transaction under ERISA or Section 4975 of the Code and will not subject the
      Trust Fund, the Trustee, the Depositor, the Master Servicer, the Securities
      Administrator or the Servicer to any obligation or liability (including
      obligations or liabilities under ERISA or Section 4975 of the Code) in addition
      to those undertaken in the Pooling and Servicing Agreement or (c) for Class
      M-10 or Class M-11 Certificates represents that the requirements of
      Section 6.02(c) of the Pooling and Servicing Agreement are
      met.

     

    
      
        
        

      

      
        B-1-3

        
          

        

      

      
        
        

      

    

    

    In
      addition, the Transferee hereby certifies, represents and warrants to, and
      covenants with, the Depositor, the Trustee, the Securities Administrator, the
      Master Servicer and the Servicer that the Transferee will not transfer such
      Certificates to any Plan or person unless such Plan or person meets the
      requirements set forth in paragraph 3 above.

     

    All
      capitalized terms used but not otherwise defined herein have the respective
      meanings assigned thereto in the Pooling and Servicing Agreement, dated as
      of
      November 1, 2006, among ACE Securities Corp. as Depositor, Wells Fargo Bank,
      N.A. as Master Servicer and Securities Administrator, Countrywide Home Loans
      Servicing LP as a Servicer and HSBC Bank USA, National Association as Trustee,
      pursuant to which the Certificates were issued.

     

    
      	 	 	 	 	 	 	 	
              [TRANSFEREE]

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:

            

    

    

    
      
        
        

      

      
        B-1-4

        
          

        

      

      
        
        

      

    

    ANNEX
      1 TO EXHIBIT B-1

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees Other Than Registered Investment Companies]

     

    The
      undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Wells Fargo Bank, N.A., as Securities Administrator, with
      respect to the asset backed pass-through certificates (the “Certificates”)
      described in the Transferee Certificate to which this certification relates
      and
      to which this certification is an Annex:

     

    1. As
      indicated below, the undersigned is the President, Chief Financial Officer,
      Senior Vice President or other executive officer of the entity purchasing the
      Certificates (the “Transferee”).

     

    2. In
      connection with purchases by the Transferee, the Transferee is a “qualified
      institutional buyer” as that term is defined in Rule 144A under the Securities
      Act of 1933 (“Rule 144A”) because (i) the Transferee 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 Transferee’s most recent fiscal year (such amount being calculated in
      accordance with Rule 144A) and (ii) the Transferee satisfies the criteria in
      the
      category marked below.

     

    
      	 	
              ___

            	
              Corporation,
                etc.
                The Transferee is a corporation (other than a bank, savings and loan
                association or similar institution), Massachusetts or similar business
                trust, partnership, or any organization described in Section 501(c)(3)
                of
                the Internal Revenue Code of 1986.

               

            
	 	
              ___

            	
              Bank.
                The Transferee (a) is a national bank or 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 Transferee (a) is a savings and loan association, building and
                loan
                association, cooperative bank, homestead association or similar
                institution, which is supervised and examined by a State or Federal
                authority having supervision over any such institutions or is a foreign
                savings and loan association or equivalent institution and (b) has
                an
                audited net worth of at least $25,000,000 as demonstrated in its
                latest
                annual financial statements, a
                copy of which is attached hereto.

               

            

    

    _________________________ 

    
      
        1               
          Transferee
          must own and/or invest on a discretionary basis at least $100,000,000 in
          securities unless Transferee is a dealer, and, in that case, Transferee
          must own
          and/or invest on a discretionary basis at least $10,000,000 in
          securities.

      

       

    

    
      
        
        

      

      
        B-1-5

        
          

        

      

      
        
        

      

    

    
      	 	
              ___

            	
              Broker-dealer.
                The Transferee is a dealer registered pursuant to Section 15 of the
                Securities Exchange Act of 1934.

               

            
	 	
              ___

            	
              Insurance
                Company.
                The Transferee is an insurance company whose primary and predominant
                business activity is the writing of insurance or the reinsuring of
                risks
                underwritten by insurance companies and which is subject to supervision
                by
                the insurance commissioner or a similar official or agency of a State,
                territory or the District of Columbia.

               

            
	 	
              ___

            	
              State
                or Local Plan.
                The Transferee is a plan established and maintained by a State, its
                political subdivisions, or any agency or instrumentality of the State
                or
                its political subdivisions, for the benefit of its employees.

               

            
	 	
              ___

            	
              ERISA
                Plan.
                The Transferee is an employee benefit plan within the meaning of
                Title I
                of the Employee Retirement Income Security Act of 1974.

               

            
	 	
              ___

            	
              Investment
                Advisor
                The Transferee is an investment advisor registered under the Investment
                Advisers Act of 1940.

            

    

     

    3. The
      term
“securities”
as
      used
      herein does
      not include
      (i)
      securities of issuers that are affiliated with the Transferee, (ii) securities
      that are part of an unsold allotment to or subscription by the Transferee,
      if
      the Transferee is a dealer, (iii) 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 Transferee, the Transferee used the cost of
      such
      securities to the Transferee and did not include any of the securities referred
      to in the preceding paragraph. Further, in determining such aggregate amount,
      the Transferee may have included securities owned by subsidiaries of the
      Transferee, but only if such subsidiaries are consolidated with the Transferee
      in its financial statements prepared in accordance with generally accepted
      accounting principles and if the investments of such subsidiaries are managed
      under the Transferee’s direction. However, such securities were not included if
      the Transferee is a majority-owned, consolidated subsidiary of another
      enterprise and the Transferee is not itself a reporting company under the
      Securities Exchange Act of 1934.

     

    5. The
      Transferee acknowledges that it is familiar with Rule 144A and understands
      that
      the Transferor 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 Transferee may be in reliance on Rule 144A.

     

    
      	
              ___

            	
              ___

            	
              Will
                the Transferee be purchasing the Certificates

            
	
              Yes

            	
              No

            	
              only
                for the Transferee’s own account?

            

    

     

    
      
        
        

      

      
        B-1-6

        
          

        

      

      
        
        

      

    

     

    6. If
      the
      answer to the foregoing question is “no”, the Transferee agrees that, in
      connection with any purchase of securities sold to the Transferee for the
      account of a third party (including any separate account) in reliance on Rule
      144A, the Transferee will only purchase for the account of a third party that
      at
      the time is a “qualified institutional buyer” within the meaning of Rule 144A.
      In addition, the Transferee agrees that the Transferee will not purchase
      securities for a third party unless the Transferee has obtained a current
      representation letter from such third party or taken other appropriate steps
      contemplated by Rule 144A to conclude that such third party independently meets
      the definition of “qualified institutional buyer” set forth in Rule
      144A.

     

    7. The
      Transferee will notify each of the parties to which this certification is made
      of any changes in the information and conclusions herein. Until such notice
      is
      given, the Transferee’s purchase of the Certificates will constitute a
      reaffirmation of this certification as of the date of such purchase. In
      addition, if the Transferee is a bank or savings and loan as provided above,
      the
      Transferee agrees that it will furnish to such parties updated annual financial
      statements promptly after they become available.

     

    Dated:

    
      	 	 	 	 	 	 	 	
              ___________________________________________

            
	 	 	 	 	 	 	 	
              Print
                Name of Transferee

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:

            

    

     

    
      
        
        

      

      
        B-1-7

        
          

        

      

      
        
        

      

    

    

    ANNEX
      2 TO EXHIBIT B-1

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees That Are Registered Investment Companies]

     

    The
      undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Wells Fargo Bank, N.A., as Securities Administrator, with
      respect to the asset backed pass-through certificates (the “Certificates”)
      described in the Transferee Certificate to which this certification relates
      and
      to which this certification is an Annex:

     

    1. As
      indicated below, the undersigned is the President, Chief Financial Officer
      or
      Senior Vice President of the entity purchasing the Certificates (the
“Transferee”) or, if the Transferee is a “qualified institutional buyer” as that
      term is defined in Rule 144A under the Securities Act of 1933 (“Rule 144A”)
      because the Transferee is part of a Family of Investment Companies (as defined
      below), is such an officer of the investment adviser (the
“Adviser”).

     

    2. In
      connection with purchases by the Transferee, the Transferee is a “qualified
      institutional buyer” as defined in Rule 144A because (i) the Transferee is an
      investment company registered under the Investment Company Act of 1940, and
      (ii)
      as marked below, the Transferee alone, or the Transferee’s Family of Investment
      Companies, owned at least $100,000,000 in securities (other than the excluded
      securities referred to below) as of the end of the Transferee’s most recent
      fiscal year. For purposes of determining the amount of securities owned by
      the
      Transferee or the Transferee’s Family of Investment Companies, the cost of such
      securities was used.

     

    
      	 	
              ___

            	
              The
                Transferee owned $________________________ in securities (other than
                the
                excluded securities referred to below) as of the end of the Transferee’s
                most recent fiscal year (such amount being calculated in accordance
                with
                Rule 144A).

               

            
	 	
              ___

            	
              The
                Transferee is part of a Family of Investment Companies which owned
                in the
                aggregate $_______________ in securities (other than the excluded
                securities referred to below) as of the end of the Transferee’s most
                recent fiscal year (such amount being calculated in accordance with
                Rule
                144A).

            

    

     

    3. The
      term
“Family
      of Investment Companies”
as
      used
      herein means two or more registered investment companies (or series thereof)
      that have the same investment adviser or investment advisers that are affiliated
      (by virtue of being majority owned subsidiaries of the same parent or because
      one investment adviser is a majority owned subsidiary of the
      other).

     

    4. The
      term
“securities”
as
      used
      herein does not include (i) securities of issuers that are affiliated with
      the
      Transferee or are part of the Transferee’s Family of Investment Companies, (ii)
      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.

     

    
      
        
        

      

      
        B-1-8

        
          

        

      

      
        
        

      

    

    5. The
      Transferee is familiar with Rule 144A and understands that the parties to which
      this certification is being made are relying and will continue to rely on the
      statements made herein because one or more sales to the Transferee will be
      in
      reliance on Rule 144A. In addition, the Transferee will only purchase for the
      Transferee’s own account.

     

    6. The
      undersigned will notify the parties to which this certification is made of
      any
      changes in the information and conclusions herein. Until such notice, the
      Transferee’s purchase of the Certificates will constitute a reaffirmation of
      this certification by the undersigned as of the date of such
      purchase.

     

    Dated:

    
      	 	 	 	 	 	 	 	
              ___________________________________________

            
	 	 	 	 	 	 	 	
              Print
                Name of Transferee or Advisor

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              IF
                AN ADVISER:

               

            
	 	 	 	 	 	 	 	
              ___________________________________________

            
	 	 	 	 	 	 	 	
              Print
                Name of Transferee

            

    

    

    
      
        
        

      

      
        B-1-9

        
          

        

      

      
        
        

      

    

    

    FORM
      OF
      TRANSFEREE REPRESENTATION LETTER

     

    The
      undersigned hereby certifies on behalf of the purchaser named below (the
“Purchaser”) as follows:

     

    1. I
      am an
      executive officer of the Purchaser.

     

    2. The
      Purchaser is a “qualified institutional buyer”, as defined in Rule 144A, (“Rule
      144A”) under the Securities Act of 1933, as amended.

     

    3. As
      of the
      date specified below (which is not earlier than the last day of the Purchaser’s
      most recent fiscal year), the amount of “securities”, computed for purposes of
      Rule 144A, owned and invested on a discretionary basis by the Purchaser was
      in
      excess of $100,000,000.

     

    
      Name
        of
        Purchaser
        _________________________________________________________________________________

       

      By:
        (Signature)
        ____________________________________________________________________________________

       

      Name
        of
        Signatory
        _________________________________________________________________________________

       

      Title
        ____________________________________________________________________________________________

       

      Date
        of
        this certificate
        _______________________________________________________________________________

       

      Date
        of
        information provided in paragraph 3
        ______________________________________________________________

    

     

    
      
        
        

      

      
        B-1-10

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-2

     

    FORM
      OF
      REGULATION S TRANSFER CERTIFICATE

     

    [Date]

     

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-NC3

     

    
      	 	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-NC3 Asset Backed
                Pass-Through Certificates, Class M-10, Class M-11, Class CE Certificates
                and/or Class P
                Certificates     

            

    

     

    Ladies
      and Gentlemen:

     

    Reference
      is hereby made to the Pooling and Servicing Agreement (the “Agreement”), dated
      as of November 1, 2006, among ACE Securities Corp. (the “Depositor”), Wells
      Fargo Bank, N.A., as master servicer (the “Master Servicer”) and securities
      administrator (the “Securities Administrator”), Countrywide Home Loans Servicing
      LP, as a servicer (the “Servicer”) and HSBC Bank USA, National Association, as
      trustee (the “Trustee”). Capitalized terms used herein but not defined herein
      shall have the meanings assigned thereto in the Agreement.

     

    This
      letter relates to U.S. $[__________] Certificate Principal Balance of Class
      [M-10][M-11][CE][P] Certificates (the “Certificates”) which are held in the name
      of [name of transferor] (the “Transferor”) to effect the transfer of the
      Certificates to a person who wishes to take delivery thereof in the form of
      an
      equivalent beneficial interest [name of transferee] (the
“Transferee”).

     

    In
      connection with such request, the Transferor hereby certifies that such transfer
      has been effected in accordance with the transfer restrictions set forth in
      the
      Agreement relating to the Certificates and that the following additional
      requirements (if applicable) were satisfied:

     

    (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 reasonably believed that
      the Transferee was outside the United States;

     

    (c) no
      directed selling efforts were made in contravention of the requirements of
      Rule
      903(b) or 904(b) of Regulation S, as applicable;

     

    (d) the
      transfer or exchange is not part of a plan or scheme to evade the registration
      requirements of the Securities Act;

     

    
      
        
        

      

      
        B-2-1

        
          

        

      

      
        
        

      

    

    (e) the
      Transferee is not a U.S. Person, as defined in Regulation S under the Securities
      Act;

     

    (f) the
      transfer was made in accordance with the applicable provisions of Rule 903(b)(2)
      or (3) or Rule 904(b)(1), as the case may be; and

     

    (g) the
      Transferee understands that the Certificates have not been and will not be
      registered under the Securities Act, that any offers, sales or deliveries of
      the
      Certificates purchased by the Transferee in the United States or to U.S. persons
      prior to the date that is 40 days after the later of (i) the commencement of
      the
      offering of the Certificates and (ii) the Closing Date, may constitute a
      violation of United States law, and that (x) distributions of principal and
      interest and (y) the exchange of beneficial interests in a Temporary Regulation
      S Global Certificate for beneficial interests in the related Permanent
      Regulation S Global Certificate, in each case, will be made in respect of such
      Certificates only following the delivery by the Holder of a certification of
      non-U.S. beneficial ownership, at the times and in the manner set forth in
      the
      Agreement.

     

    
      
        
        

      

      
        B-2-2

        
          

        

      

      
        
        

      

    

    

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

     

    
      	 	 	 	 	 	 	 	
              [Name
                of Transferor]

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:

            

    

    

    
      
        
        

      

      
        B-2-3

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-3

     

    FORM
      OF
      TRANSFEROR REPRESENTATION LETTER

     

    ____________,
      20__

    

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-NC3

     

    
      	 	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-NC3 

              Asset
                Backed Pass-Through Certificates, 

              [Class
                M-10,] [Class M-11,] [Class CE,] [Class P] and [Class R]
                Certificates

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with the transfer by ________________ (the “Transferor”) to
      __________________________ (the “Transferee”) of the captioned asset backed
      pass-through certificates (the “Certificates”), the Transferor hereby certifies
      as follows:

     

    Neither
      the Seller nor anyone acting on its behalf has (a) offered, pledged, sold,
      disposed of or otherwise transferred any Certificate, any interest in any
      Certificate or any other similar security to any person in any manner, (b)
      has
      solicited any offer to buy or to accept a pledge, disposition or other transfer
      of any Certificate, any interest in any Certificate or any other similar
      security from any person in any manner, (c) has otherwise approached or
      negotiated with respect to any Certificate, any interest in any Certificate
      or
      any other similar security with any person in any manner, (d) has made any
      general solicitation by means of general advertising or in any other manner,
      or
      (e) has taken any other action, that (as to any of (a) through (e) above) would
      constitute a distribution of the Certificates under the Securities Act of 1933
      (the “Act’), that would render the disposition of any Certificate a violation of
      Section 5 of the Act or any state securities law, or that would require
      registration or qualification pursuant thereto. The Seller will not act, in
      any
      manner set forth in the foregoing sentence with respect to any Certificate.
      The
      Seller has not and will not sell or otherwise transfer any of the Certificates,
      except in compliance with the provisions of the Pooling and Servicing Agreement,
      dated as of November 1, 2006, among ACE Securities Corp., Wells Fargo Bank,
      N.A., Countrywide Home Loans Servicing LP, and HSBC Bank USA, National
      Association.

     

    
      	 	 	 	 	 	 	 	
              Very
                truly yours,

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              ___________________________________________

            
	 	 	 	 	 	 	 	
              (Transferor)

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:

            

    

     

    
      
        
        

      

      
        B-3-1

        
          

        

      

      
        
        

      

    

    

    FORM
      OF
      TRANSFEREE LETTER

     

    _______________,
      20__

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-NC3

     

    
      	 	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-NC3 

              Asset
                Backed Pass-Through Certificates, 

              [Class
                M-10,] [Class M-11,] [Class CE,] [Class P] and [Class R]
                Certificates

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with the transfer by ______________________ (the “Transferor”) to
      __________________________ (the “Transferee”) of the captioned asset backed
      pass-through certificates (the “Certificates”), the Transferee hereby certifies
      as follows:

     

    1. The
      Transferee understands that (a) the Certificates have not been and will not
      be
      registered or qualified under the Securities Act of 1933, as amended (the “Act”)
      or any state securities law, (b) ACE Securities Corp. (the “Depositor”)is not
      required to so register or qualify the Certificates, (c) the Certificates may
      be
      resold only if registered and qualified pursuant to the provisions of the Act
      or
      any state securities law, or if an exemption from such registration and
      qualification is available, (d) the Pooling and Servicing Agreement, dated
      as of
      November 1, 2006, among the Depositor, as depositor, Wells Fargo Bank, N.A.,
      as
      master servicer (the “Master Servicer”) and securities administrator,
      Countrywide Home Loans Servicing LP, as a servicer (the “Servicer”) and HSBC
      Bank USA, National Association, as trustee (the “Trustee”) contains restrictions
      regarding the transfer of the Certificates and (e) the Certificates will bear
      a
      legend to the foregoing effect.

     

    2. The
      Transferee is acquiring the Certificates for its own account for investment
      only
      and not with a view to or for sale in connection with any distribution thereof
      in any manner that would violate the Act or any applicable state securities
      laws.

     

    3. The
      Transferee is (a) a substantial, sophisticated institutional investor having
      such knowledge and experience in financial and business matters, and, in
      particular, in such matters related to securities similar to the Certificates,
      such that it is capable of evaluating the merits and risks of investment in
      the
      Certificates, (b) able to bear the economic risks of such an investment and
      (c)
      an “accredited investor” within the meaning of Rule 501(a) promulgated pursuant
      to the Act.

     

    4. The
      Transferee has been furnished with, and has had an opportunity to review (a)
      a
      copy of the Pooling and Servicing Agreement and (b) such other information
      concerning the Certificates, the Mortgage Loans and the Depositor as has been
      requested by the Transferee from the Depositor or the Transferor and is relevant
      to the Transferee’s decision to purchase the Certificates. The Transferee has
      had any questions arising from such review answered by the Depositor or the
      Transferor to the satisfaction of the Transferee.

     

    
      
        
        

      

      
        B-3-2

        
          

        

      

      
        
        

      

    

    5. The
      Transferee has not and will not nor has it authorized or will it authorize
      any
      person to (a) offer, pledge, sell, dispose of or otherwise transfer any
      Certificate, any interest in any Certificate or any other similar security
      to
      any person in any manner, (b) solicit any offer to buy or to accept a pledge,
      disposition of other transfer of any Certificate, any interest in any
      Certificate or any other similar security from any person in any manner, (c)
      otherwise approach or negotiate with respect to any Certificate, any interest
      in
      any Certificate or any other similar security with any person in any manner,
      (d)
      make any general solicitation by means of general advertising or in any other
      manner or (e) take any other action, that (as to any of (a) through (e) above)
      would constitute a distribution of any Certificate under the Act, that would
      render the disposition of any Certificate a violation of Section 5 of the 1933
      Act or any state securities law, or that would require registration or
      qualification pursuant thereto. The Transferee will not sell or otherwise
      transfer any of the Certificates, except in compliance with the provisions
      of
      the Pooling and Servicing Agreement.

     

    6. The
      Transferee: (a) is not an employee benefit plan or other plan subject to the
      prohibited transaction provisions of the Employee Retirement Income Security
      Act
      of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of
      1986, as amended (the “Code”) (each, a “Plan”), or any other person (including
      an investment manager, a named fiduciary or a trustee of any Plan) acting,
      directly or indirectly, on behalf of or purchasing any Certificate with “plan
      assets” of any Plan within the meaning of the Department of Labor (“DOL”)
      regulation at 29 C.F.R. § 2510.3-101 or (b) (1) for certificates other than the
      Class M-10 Certificates or Class M-11 Certificates, has provided the Securities
      Administrator with an opinion of counsel on which the Depositor, the Master
      Servicer, the Securities Administrator, the Trustee and the Servicer may rely,
      acceptable to and in form and substance satisfactory to the Securities
      Administrator to the effect that the purchase of Certificates is permissible
      under applicable law, will not constitute or result in any non-exempt prohibited
      transaction under ERISA or Section 4975 of the Code and will not subject the
      Trust Fund, the Trustee, the Master Servicer, the Securities Administrator,
      the
      Depositor or the Servicer to any obligation or liability (including obligations
      or liabilities under ERISA or Section 4975 of the Code) in addition to those
      undertaken in the Pooling and Servicing Agreement or (2) for Class M-10
      Certificates and Class M-11 Certificates, represents the requirements of Section
      6.02(c) of the Pooling and Servicing Agreement are met.

     

    In
      addition, the Transferee hereby certifies, represents and warrants to, and
      covenants with, the Depositor, the Trustee, the Securities Administrator, the
      Master Servicer and the Servicer that the Transferee will not transfer such
      Certificates to any Plan or person unless such Plan or person meets the
      requirements set forth in paragraph 6 above.

     

    
      
        
        

      

      
        B-3-3

        
          

        

      

      
        
        

      

    

    
      	 	 	 	 	 	 	 	
              Very
                truly yours,

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	 

    

    

    
      
        
        

      

      
        B-3-4

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B-4

     

    TRANSFER
      AFFIDAVIT AND AGREEMENT

     

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 

    

    ___________________________
      being duly sworn, deposes, represents and warrants as follows:

     

    
      	 	
              1.

            	
              I
                am a _____________________ of _______________________________ (the
                “Owner”) a corporation duly organized and existing under the laws of
                _________________________, the record owner of ACE Securities Corp.
                Home
                Equity Loan Trust, Series 2006-NC3 Asset Backed Pass-Through Certificates,
                Class R Certificates (the “Class R Certificates”), on behalf of whom I
                make this affidavit and agreement. Capitalized terms used but not
                defined
                herein have the respective meanings assigned thereto in the Pooling
                and
                Servicing Agreement, dated as of November 1, 2006, among ACE Securities
                Corp., Wells Fargo Bank, N.A., Countrywide Home Loans Servicing LP,
                and
                HSBC Bank USA, National Association, pursuant to which the Class
                R
                Certificates were issued.

            

    

     

    
      	 	
              2.

            	
              The
                Owner (i) is and will be a “Permitted Transferee” as of
                ____________________. ____ and (ii) is acquiring the Class R Certificates
                for its own account or for the account of another Owner from which
                it has
                received an affidavit in substantially the same form as this affidavit.
                A
                “Permitted Transferee” is any person other than a “disqualified
                organization” or a possession of the United States. For this purpose, a
                “disqualified organization” means the United States, any state or
                political subdivision thereof, any agency or instrumentality of any
                of the
                foregoing (other than an instrumentality all of the activities of
                which
                are subject to tax and, except for the Federal Home Loan Mortgage
                Corporation, a majority of whose board of directors is not selected
                by any
                such governmental entity) or any foreign government, international
                organization or any agency or instrumentality of such foreign government
                or organization, any real electric or telephone cooperative, or any
                organization (other than certain farmers’ cooperatives) that is generally
                exempt from federal income tax unless such organization is subject
                to the
                tax on unrelated business taxable
                income.

            

    

     

    
      	 	
              3.

            	
              The
                Owner is aware (i) of the tax that would be imposed on transfers
                of the
                Class R Certificates to disqualified organizations under the Internal
                Revenue Code of 1986 that applies to all transfers of the Class R
                Certificates after April 31, 1988; (ii) that such tax would be on
                the
                transferor or, if such transfer is through an agent (which person
                includes
                a broker, nominee or middleman) for a non-Permitted Transferee, on
                the
                agent; (iii) that the person otherwise liable for the tax shall be
                relieved of liability for the tax if the transferee furnishes to
                such
                person an affidavit that the transferee is a Permitted Transferee
                and, at
                the time of transfer, such person does not have actual knowledge
                that the
                affidavit is false; and (iv) that each of the Class R Certificates
                may be
                a “noneconomic residual interest” within the meaning of proposed Treasury
                regulations promulgated under 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 is to impede the assessment or collection
                of
                tax.

            

    

     

    
      
        
        

      

      
        B-4-1

        
          

        

      

      
        
        

      

    

    
      	 	
              4.

            	
              The
                Owner is aware of the tax imposed on a “pass-through entity” holding the
                Class R Certificates if, at any time during the taxable year of the
                pass-through entity, a non-Permitted Transferee is the record holder
                of an
                interest in such entity. (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.)

            

    

     

    
      	 	
              5.

            	
              The
                Owner is aware that the Securities Administrator will not register
                the
                transfer of any Class R Certificate unless the transferee, or the
                transferee’s agent, delivers to the Securities Administrator, among other
                things, an affidavit in substantially the same form as this affidavit.
                The
                Owner expressly agrees that it will not consummate any such transfer
                if it
                knows or believes that any of the representations contained in such
                affidavit and agreement are false.

            

    

     

    
      	 	
              6.

            	
              The
                Owner consents to any additional restrictions or arrangements that
                shall
                be deemed necessary upon advice of counsel to constitute a reasonable
                arrangement to ensure that the Class R Certificates will only be
                owned,
                directly or indirectly, by an Owner that is a Permitted
                Transferee.

            

    

     

    
      	 	
              7.

            	
              The
                Owner’s taxpayer identification number is
                ________________.

            

    

     

    
      	 	
              8.

            	
              The
                Owner has reviewed the restrictions set forth on the face of the
                Class R
                Certificates and the provisions of Section 6.02(d) of the Pooling
                and
                Servicing Agreement under which the Class R Certificates were issued
                (in
                particular, clauses (iii)(A) and (iii)(B) of Section 6.02(d) which
                authorize the Securities Administrator to deliver payments to a person
                other than the Owner and negotiate a mandatory sale by the Securities
                Administrator in the event that the Owner holds such Certificate
                in
                violation of Section 6.02(d)); and that the Owner expressly agrees
                to be
                bound by and to comply with such restrictions and
                provisions.

            

    

     

    
      	 	
              9.

            	
              The
                Owner is not acquiring and will not transfer the Class R Certificates
                in
                order to impede the assessment or collection of any
                tax.

            

    

     

    
      	 	
              10.

            	
              The
                Owner anticipates that it will, so long as it holds the Class R
                Certificates, have sufficient assets to pay any taxes owed by the
                holder
                of such Class R Certificates, and hereby represents to and for the
                benefit
                of the person from whom it acquired the Class R Certificates that
                the
                Owner intends to pay taxes associated with holding such Class R
                Certificates as they become due, fully understanding that it may
                incur tax
                liabilities in excess of any cash flows generated by the Class R
                Certificates.

            

    

     

    
      
        
        

      

      
        B-4-2

        
          

        

      

      
        
        

      

    

    
      	 	
              11.

            	
              The
                Owner has no present knowledge that it may become insolvent or subject
                to
                a bankruptcy proceeding for so long as it holds the Class R
                Certificates.

            

    

     

    
      	 	
              12.

            	
              The
                Owner has no present knowledge or expectation that it will be unable
                to
                pay any United States taxes owed by it so long as any of the Certificates
                remain outstanding.

            

    

     

    
      	 	
              13.

            	
              The
                Owner is not acquiring the Class R Certificates with the intent to
                transfer the Class R Certificates to any person or entity that will
                not
                have sufficient assets to pay any taxes owed by the holder of such
                Class R
                Certificates, or that may become insolvent or subject to a bankruptcy
                proceeding, for so long as the Class R Certificates remain
                outstanding.

            

    

     

    
      	 	
              14.

            	
              The
                Owner will, in connection with any transfer that it makes of the
                Class R
                Certificates, obtain from its transferee the representations required
                by
                Section 6.02(d) of the Pooling and Servicing Agreement under which
                the
                Class R Certificate were issued and will not consummate any such
                transfer
                if it knows, or knows facts that should lead it to believe, that
                any such
                representations are false.

            

    

     

    
      	 	
              15.

            	
              The
                Owner will, in connection with any transfer that it makes of the
                Class R
                Certificates, deliver to the Securities Administrator an affidavit,
                which
                represents and warrants that it is not transferring the Class R
                Certificates to impede the assessment or collection of any tax and
                that it
                has no actual knowledge that the proposed transferee: (i) has insufficient
                assets to pay any taxes owed by such transferee as holder of the
                Class R
                Certificates; (ii) may become insolvent or subject to a bankruptcy
                proceeding for so long as the Class R Certificates remains outstanding;
                and (iii) is not a “Permitted
                Transferee”.

            

    

     

    
      	 	
              16.

            	
              The
                Owner is a citizen or resident of the United States, a corporation,
                partnership or other entity created or organized in, or under the
                laws of,
                the United States or any political subdivision thereof, or an estate
                or
                trust whose income from sources without the United States may be
                included
                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.

            

    

     

    
      	 	
              17.

            	
              The
                Owner of the Class R Certificate, hereby agrees that in the event
                that the
                Trust Fund created by the Pooling and Servicing Agreement is terminated
                pursuant to Section 10.01 thereof, the undersigned shall assign and
                transfer to the Holders of the Class CE Certificates and Class P
                Certificates any amounts in excess of par received in connection
                with such
                termination. Accordingly, in the event of such termination, the Securities
                Administrator is hereby authorized to withhold any such amounts in
                excess
                of par and to pay such amounts directly to the Holders of the Class
                CE
                Certificates and Class P Certificates. This agreement shall bind
                and be
                enforceable against any successor, transferee or assigned of the
                undersigned in the Class R Certificate. In connection with any transfer
                of
                the Class R Certificate, the Owner shall obtain an agreement substantially
                similar to this clause from any subsequent
                owner.

            

    

     

    
      
        
        

      

      
        B-4-3

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Owner has caused this instrument to be executed on its
      behalf, pursuant to the authority of its Board of Directors, by its [Vice]
      President, attested by its [Assistant] Secretary, this ____ day of
      _________________, ____.

     

    
      	 	 	 	 	 	 	 	
              [OWNER]

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:
                [Vice] President

            

    

    

     

    ATTEST:

     

    
      	
              By:

            	 
	 	
              Name:

            
	 	
              Title:
                [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 a [Vice]
      President of the Owner, and acknowledged to me that [he/she] executed the same
      as [his/her] free act and deed and the free act and deed of the
      Owner.

     

    Subscribed
      and sworn before me this ______________ day of __________, ____.

     

    

    

    
      	 	 
	 	
              Notary
                Public

            
	 	 
	 	
              County
                of 

            
	 	
              State
                of _______________________________

            
	 	 
	 	
              My
                Commission expires:

            

    

    

    
      
        
        

      

      
        B-4-4

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    BACK-UP
      CERTIFICATION

     

    Re: __________
      (the “Trust”)

     

    Mortgage
      Pass-Through Certificates, Series 2006-NC3

     

    I,
      [identify the certifying individual], certify to Wells Fargo Bank, National
      Association (the “Master Servicer”) and its respective officers, directors and
      affiliates, and with the knowledge and intent that the Master Servicer will
      rely
      upon this certification, that:

     

    (1) I
      have
      reviewed the servicer compliance statement of the Servicer provided in
      accordance with Item 1123 of Regulation AB (the “Compliance Statement”), the
      report on assessment of the Servicer’s 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 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 the Servicer
      during 200[ ] that were delivered by the Servicer to the Master Servicer
      pursuant to the Agreement (collectively, the “Servicer Servicing
      Information”);

     

    (2) Based
      on
      my knowledge, the Servicer 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 Servicer Servicing Information;

     

    (3) Based
      on
      my knowledge, all of the Servicer Servicing Information required to be provided
      by the Servicer under the Agreement has been provided to the Master
      Servicer;

     

    (4) I
      am
      responsible for reviewing the activities performed by the Servicer as a servicer
      under the Agreement, and based on my knowledge and the compliance review
      conducted in preparing the Compliance Statement and except as disclosed in
      the
      Compliance Statement, the Servicing Assessment or the Attestation Report, the
      Servicer has fulfilled its obligations under the Agreement in all material
      respects; and

     

    (5) The
      Compliance Statement required to be delivered by the Servicer pursuant to the
      Agreement, and the Servicing Assessment and Attestation Report required to
      be
      provided by the Servicer and by each Subservicer and Servicing Function
      Participant pursuant to the Agreement, have been provided to the Master
      Servicer. Any material instances of noncompliance described in such reports
      have
      been disclosed to the Master Servicer. Any material instance of noncompliance
      with the Servicing Criteria has been disclosed in such reports.

    

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    Capitalized
      terms used and not otherwise defined herein have the meanings assigned thereto
      in the Pooling and Servicing Agreement (the “Agreement”), dated as of November
      1, 2006, among ACE Securities Corp. as Depositor, Wells Fargo Bank, N.A. as
      Master Servicer and Securities Administrator, Countrywide Home Loans Servicing
      LP as a Servicer and HSBC Bank USA, National Association as
      Trustee.

     

    

    Date:
      _______________________________________

     

    ____________________________________________

    [Signature]

    
       

      ____________________________________________

      [Title]

    

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D

    

    FORM
      OF
      POWER OF ATTORNEY

    

    RECORDING
      REQUESTED BY

    AND
      WHEN
      RECORDED MAIL TO

    [Servicer]

    [Servicer’s
      Address]

    

    Attn:
      _________________________________

    

    LIMITED
      POWER OF ATTORNEY

    

    

    KNOW
      ALL
      MEN BY THESE PRESENTS, that ________________, having its principal place of
      business at ____________________, as Trustee (the “Trustee”) pursuant to that
      Pooling and Servicing Agreement among ___________________ (the “Depositor”),
      Wells Fargo Bank, N.A., as Master Servicer and Securities Administrator,
      Countrywide Home Loans Servicing LP, as a servicer, and the Trustee, dated
      as of
      November 1, 2006 (the “Pooling and Servicing Agreement”), hereby constitutes and
      appoints Countrywide Home Loans Servicing LP (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 Pooling and
      Servicing Agreement for the purpose of performing all acts and executing all
      documents in the name of the Trustee as may be customarily and reasonably
      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 the Servicer
      is acting as servicer, all subject to the terms of the Pooling and Servicing
      Agreement and Servicing Agreement.

    

    This
      appointment shall apply to the following enumerated transactions
      only:

    

    
      	
              1.

            	
              The
                modification or re-recording of a Mortgage or Deed of Trust, where
                said
                modification or re-recordings is 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 and said modification or re-recording, in either
                instance, does not adversely affect the lien of the Mortgage or Deed
                of
                Trust as insured.

            

    

    

    
      	
              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.

            

    

    

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

    
      	
              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.

            

    

    
      

      
        	
                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.

              

      

       

    

    
      	
              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 a 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.

            

    

    

    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 lawfully do or cause
      to be done by authority hereof. 

    

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

    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.

    

    IN
      WITNESS WHEREOF, ________________ as Trustee pursuant to that Pooling and
      Servicing Agreement among the Depositor, Wells Fargo Bank, National Association,
      Wells Fargo, Countrywide Home Loans Servicing LP and the Trustee, dated as
      of
      ___________ 1, 200__ (_____________ Asset Backed Certificates, Series
      200__-___), has caused its corporate seal to be hereto affixed and these
      presents to be signed and acknowledged in its name and behalf by ____________
      its duly elected and authorized Vice President this _________ day of _________,
      200__.

     

    
      as
        Trustee for _____ Asset 

      Backed
        Certificates, Series 200__-___

    

    
       

      By:
        ______________________________________________

    

    ______________________________________________

    
      	
              STATE
                OF _____________

            
	 
	
              COUNTY
                OF ___________

            

    

    

    On
      _______________, 200__, before me, the undersigned, a Notary Public in and
      for
      said state, personally appeared ____________, Vice President of
      ____________________ as Trustee for ___________ Asset Backed Certificates,
      Series 200__-___, 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

            
	 	
              My
                Commission Expires
                _________________

            

    

    

    
      
        
        

      

      
        D-3

        
          

        

      

      
        
        

      

    

    

      EXHIBIT
        E

      

      SERVICING
        CRITERIA

      

      Schedule
        1122 (Pooling and Servicing Agreement)

       

      Assessments
        of Compliance and Attestation Reports Servicing Criteria2 

    

    

      
        	
                Reg.
                  AB Item 1122(d) Servicing Criteria

              	
                Depositor

              	
                Seller

              	
                Servicer

              	
                Trustee

              	
                Custodian

              	
                Paying
                  

                Agent

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              
	
                (1) General
                  Servicing Considerations

              	 	 	 	 	 	 	 	 
	
                (i) monitoring
                  
performance or other triggers and events of default

              	 	 	
                X

              	 	 	 	
                X

              	
                X

              
	
                (ii) monitoring
                  performance of vendors of activities outsourced

              	 	 	
                X

              	 	 	 	
                X

              	 
	
                (iii) maintenance
                  of back-up servicer for pool assets

              	 	 	 	 	 	 	 	 
	
                (iv) fidelity
                  bond and E&O policies in effect

              	 	 	
                X

              	 	 	 	
                X

              	 
	
                (2) Cash
                  Collection and Administration

              	 	 	 	 	 	 	 	 
	
                (i) timing
                  of deposits to custodial account

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	
                (ii) wire
                  transfers to investors by authorized personnel

              	 	 	
                X

              	 	 	
                X

              	 	
                X

              
	
                (iii) advances
                  or guarantees made, reviewed and approved as required

              	 	 	
                X

              	 	 	 	
                X

              	 
	
                (iv) accounts
                  maintained as required

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              

      

      _________________

        *
          The
          descriptions of the Item 1122(d) servicing criteria use key words and phrases
          and are not verbatim recitations of the servicing criteria. Refer to Regulation
          AB, Item 1122 for a full description of servicing criteria.

      

       

      
        
          
          

        

        
          E-1

          
            

          

        

        
          
          

        

      

       

      
        	
                Reg.
                  AB Item 1122(d) Servicing Criteria

              	
                Depositor

              	
                Seller

              	
                Servicer

              	
                Trustee

              	
                Custodian

              	
                Paying
                  

                Agent

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              
	
                (v) accounts
                  at federally insured depository institutions

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	
                (vi) unissued
                  checks safeguarded

              	 	 	
                X

              	 	 	
                X

              	 	
                X

              
	
                (vii) monthly
                  reconciliations of accounts

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	
                (3) Investor
                  Remittances and Reporting

              	 	 	 	 	 	 	 	 
	
                (i) investor
                  reports

              	 	 	
                X

              	 	 	 	
                X

              	
                X

              
	
                (ii) remittances

              	 	 	
                X

              	 	 	
                X

              	 	
                X

              
	
                (iii) proper
                  posting of distributions

              	 	 	
                X

              	 	 	
                X

              	 	
                X

              
	
                (iv) reconciliation
                  of remittances and payment statements

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	
                (4) Pool
                  Asset Administration

              	 	 	 	 	 	 	 	 
	
                (i) maintenance
                  of pool collateral

              	 	 	
                X

              	 	
                X

              	 	 	 
	
                (ii) safeguarding
                  of pool assets/documents

              	 	 	
                X

              	 	
                X

              	 	 	 
	
                (iii) additions,
                  removals and substitutions of pool assets

              	 	
                X

              	
                X

              	 	 	 	 	 
	
                (iv) posting
                  and allocation of pool asset payments to pool assets

              	 	 	
                X

              	 	 	 	 	 
	
                (v) reconciliation
                  of servicer records

              	 	 	
                X

              	 	 	 	 	 
	
                (vi) modifications
                  or other changes to terms of pool assets

              	 	 	
                X

              	 	 	 	 	 
	
                (vii) loss
                  mitigation and recovery actions

              	 	 	
                X

              	 	 	 	 	 

      

       

      
        
          
          

        

        
          E-2

          
            

          

        

        
          
          

        

      

       

      
        	
                Reg.
                  AB Item 1122(d) Servicing Criteria

              	
                Depositor

              	
                Seller

              	
                Servicer

              	
                Trustee

              	
                Custodian

              	
                Paying
                  

                Agent

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              
	
                (viii)records
                  regarding collection efforts

              	 	 	
                X

              	 	 	 	 	 
	
                (ix) adjustments
                  to variable interest rates on pool assets

              	 	 	
                X

              	 	 	 	 	 
	
                (x) matters
                  relating to funds held in trust for obligors

              	 	 	
                X

              	 	 	 	 	 
	
                (xi) payments
                  made on behalf of obligors (such as for taxes or
                  insurance)

              	 	 	
                X

              	 	 	 	 	 
	
                (xii) late
                  payment penalties with respect to payments made on behalf of obligors
                  

              	 	 	
                X

              	 	 	 	 	 
	
                (xiii)records
                  with respect to payments made on behalf of obligors

              	 	 	
                X

              	 	 	 	 	 
	
                (xiv) recognition
                  and recording of delinquencies, charge-offs and uncollectible
                  accounts

              	 	 	
                X

              	 	 	 	
                X

              	 
	
                (xv) maintenance
                  of external credit enhancement or other support

              	 	 	 	 	 	 	 	
                X

              

      

    
      
        
        

      

      
        E-3

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

    

    MORTGAGE
      LOAN PURCHASE AGREEMENT

     

    This
      is a
      Mortgage Loan Purchase Agreement (this “Agreement”), dated November 30, 2006,
      between DB Structured Products, Inc., a Delaware corporation (the “Seller”) and
      ACE Securities Corp., a Delaware corporation (the “Purchaser”).

     

    Preliminary
      Statement

     

    The
      Seller intends to sell the Mortgage Loans (as hereinafter identified) and the
      Swap Agreement (as hereinafter defined) to the Purchaser on the terms and
      subject to the conditions set forth in this Agreement. The Purchaser intends
      to
      deposit the Mortgage Loans into a mortgage pool comprising the Trust Fund.
      The
      Trust Fund will be evidenced by a single series of mortgage pass-through
      certificates designated as ACE Securities Corp. Home Equity Loan Trust, Series
      2006-NC3, Asset Backed Pass-Through Certificates (the “Certificates”). The
      Certificates will consist of twenty classes of certificates. The Certificates
      will be issued pursuant to a Pooling and Servicing Agreement for ACE Securities
      Corp. Home Equity Loan Trust, Series 2006-NC3, Asset Backed Pass-Through
      Certificates, dated as of September 1, 2006 (the “Pooling and Servicing
      Agreement”), among the Purchaser as depositor, Countrywide Home Loans Servicing
      LP, as a servicer, Wells Fargo Bank, National Association, as master servicer
      (the “Master Servicer”) and securities administrator (the “Securities
      Administrator”)
      and HSBC
      Bank USA, National Association as trustee (the “Trustee”). The Purchaser will
      sell the Class A-1A, Class A-1B, Class A-2A, Class A-2B, Class A-2C, Class
      A-2D,
      Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7,
      Class M-8 and Class M-9 Certificates (collectively, the “Publicly Offered
      Certificates”) to Deutsche Bank Securities Inc. (“DBSI”), pursuant to the Second
      Amended and Restated Underwriting Agreement, dated as of June 24, 1999, as
      amended and restated to and including January 25, 2006, between the Purchaser
      and DBSI, and the Terms Agreement, dated November 21, 2006 (together, the
“Underwriting Agreement”), between the Purchaser and DBSI. The Purchaser will
      sell the Class M-10 Certificates and Class M-11 Certificates (together, the
      “Privately Offered Certificates”; collectively with the Publicly Offered
      Certificates, the “Offered Certificates”) to DBSI pursuant to the Purchase
      Agreement dated as of November 22, 2006 between the Purchaser and DBSI.
      Capitalized terms used but not defined herein shall have the meanings set forth
      in the Pooling and Servicing Agreement.

     

    The
      parties hereto agree as follows:

     

    SECTION
      1. Agreement
      to Purchase.
      The
      Seller hereby sells, and the Purchaser hereby purchases, on November 30, 2006
      (the “Closing Date”), (a) certain conventional, one- to four-family, fixed-rate
      and adjustable-rate, residential, first and second lien, residential mortgage
      loans (the “Mortgage Loans”), having an aggregate principal balance as of the
      close of business on November 1, 2006 (the “Cut-off Date”) of approximately
      $1,501,392,227 (the “Closing Balance”), after giving effect to all payments due
      on the Mortgage Loans on or before the Cut-off Date, whether or not received,
      including the right to any Prepayment Charges payable by the related Mortgagors
      in connection with any Principal Prepayments on the Mortgage Loans and (b)
      all
      of Seller’s right, title and interest in and to the Swap Agreement, dated as of
      November 30, 2006 (the “Swap Agreement”), between Deutsche Bank AG New York
      Branch and the trustee, HSBC Bank USA, National Association, as trustee for
      the
      Supplemental Interest Trust, relating to the Offered Certificates.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION
      2. Mortgage
      Loan Schedule.
      The
      Purchaser and the Seller have agreed upon which of the mortgage loans owned
      by
      the Seller are to be purchased by the Purchaser pursuant to this Agreement
      and
      the Seller will prepare or cause to be prepared on or prior to the Closing
      Date
      a final schedule (the “Closing Schedule”) that shall describe such Mortgage
      Loans and set forth all of the Mortgage Loans to be purchased under this
      Agreement, including the Prepayment Charges. The Closing Schedule will conform
      to the requirements set forth in this Agreement and to the definition of
“Mortgage Loan Schedule” under the Pooling and Servicing Agreement.

     

    SECTION
      3. Consideration.

     

    (a) In
      consideration for the Mortgage Loans and the Swap Agreement to be purchased
      hereunder, the Purchaser shall, as described in Section 8, (i) pay to or upon
      the order of the Seller in immediately available funds an amount (the “Purchase
      Price”) equal to (i) $________* 
      and (ii)
      a 100% interest in the Class CE, Class P and Class R Certificates (collectively,
      the “DB Certificates”). The DB Certificates shall be in the name of “Deutsche
      Bank Securities Inc.”

     

    (b) The
      Purchaser or any assignee, transferee or designee of the Purchaser shall be
      entitled to all scheduled payments of principal due after the Cut-off Date,
      all
      other payments of principal due and collected after the Cut-off Date, and all
      payments of interest on the Mortgage Loans allocable to the period after the
      Cut-off Date. All scheduled payments of principal and interest due on or before
      the Cut-off Date and collected after the Cut-off Date shall belong to the
      Seller.

     

    (c) Pursuant
      to the Pooling and Servicing Agreement, the Purchaser will assign all of its
      right, title and interest in and to the Mortgage Loans and the Swap Agreement,
      together with its rights under this Agreement, to the Trustee for the benefit
      of
      the Certificateholders.

     

    SECTION
      4. Transfer
      of the Mortgage Loans.

     

    (a) Possession
      of Mortgage Files.
      The
      Seller does hereby sell to the Purchaser, without recourse but subject to the
      terms of this Agreement, all of its right, title and interest in, to and under
      the Mortgage Loans, including the related Prepayment Charges and the Swap
      Agreement. The contents of each Mortgage File not delivered to the Purchaser
      or
      to any assignee, transferee or designee of the Purchaser on or prior to the
      Closing Date are and shall be held in trust by the Seller for the benefit of
      the
      Purchaser or any assignee, transferee or designee of the
      Purchaser.  Upon the sale of the Mortgage Loans, the ownership of each
      Mortgage Note, the related Mortgage and the other contents of the related
      Mortgage File is vested in the Purchaser and the ownership of all records and
      documents with respect to the related Mortgage Loan prepared by or that come
      into the possession of the Seller on or after the Closing Date shall immediately
      vest in the Purchaser and shall be delivered immediately to the Purchaser or
      as
      otherwise directed by the Purchaser.

    
       

      *  Please
        contact the Mortgage Loan Seller for this information.

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    (b) Delivery
      of Mortgage Loan Documents.
      The
      Seller will, on or prior to the Closing Date, deliver or cause to be delivered
      to the Purchaser or any assignee, transferee or designee of the Purchaser each
      of the following documents for each Mortgage Loan:

     

    (i) the
      original Mortgage Note, including any riders thereto, endorsed in blank, 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 or a certified copy thereof, including any riders thereto,
      with evidence of recording thereon, and the original recorded power of attorney,
      if the Mortgage was executed pursuant to a power of attorney, with evidence
      of
      recording thereon, and in the case of each MOM Loan, the original Mortgage,
      noting the presence of the MIN of the Loan and either language indicating that
      the Mortgage Loan is a MOM Loan or if the Mortgage Loan was not a MOM Loan
      at
      origination, the original Mortgage and the assignment thereof to MERS®, with
      evidence of recording indicated thereon;

     

    (iii) unless
      such Mortgage Loan is registered on the MERS® System, the original Assignment of
      Mortgage executed in blank;

     

    (iv) the
      original recorded Assignment or Assignments of the Mortgage, or a certified
      copy
      or copies thereof, showing a complete chain of assignment from the originator
      to
      the last Person assigning the Mortgage;

     

    (v) the
      original or copies of each assumption, modification, written assurance or
      substitution agreement, if any;

     

    (vi) the
      original lender’s title insurance policy, together with all endorsements or
      riders that were issued with or subsequent to the issuance of such policy,
      insuring the priority of the Mortgage as a first lien or second lien on the
      Mortgaged Property represented therein as a fee interest vested in the
      Mortgagor;

     

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

     

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

     

    Notwithstanding
      anything to the contrary contained in this Section 4, with respect to a maximum
      of approximately 1.00% of the Mortgage Loans, by aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date, if any original Mortgage Note
      referred to in Section 4(b)(i) above cannot be located, the obligations of
      the
      Seller to deliver such documents shall be deemed to be satisfied upon delivery
      to the Purchaser or any assignee, transferee or designee of the Purchaser of
      a
      photocopy of such Mortgage Note, if available, with a lost note affidavit
      substantially in the form of Exhibit 1 attached hereto. If any of the original
      Mortgage Notes for which a lost note affidavit was delivered to the Purchaser
      or
      any assignee, transferee or designee of the Purchaser is subsequently located,
      such original Mortgage Note shall be delivered to the Purchaser or any assignee,
      transferee or designee of the Purchaser within three (3) Business Days; and
      if
      any document referred to in Section 4(b)(ii) or 4(b)(iv) above has 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 Seller hereunder
      shall be deemed to have been satisfied upon delivery to the Purchaser or any
      assignee, transferee or designee of the Purchaser promptly upon receipt thereof
      by or on behalf of the Seller 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.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    In
      the
      event that the original lender’s title insurance policy has not yet been issued,
      the Seller shall deliver to the Purchaser or any assignee, transferee or
      designee of the Purchaser a written commitment or interim binder or preliminary
      report of title issued by the title insurance or escrow company. The Seller
      shall deliver such original title insurance policy to the Purchaser or any
      assignee, transferee or designee of the Purchaser promptly upon receipt by
      the
      Seller, if any.

     

    Each
      original document relating to a Mortgage Loan which is not delivered to the
      Purchaser or its assignee, transferee or designee, if held by the Seller, shall
      be so held for the benefit of the Purchaser, its assignee, transferee or
      designee.

     

    In
      connection with the assignment of any Mortgage Loan registered on the
MERS®
      System,
      the Seller further agrees that it will cause, at the Seller’s own expense,
      within thirty (30) days after the Closing Date, the MERS® System to indicate
      that such Mortgage Loans have been assigned by the Seller to the Purchaser
      and
      by the Purchaser to the Trustee in accordance with this Agreement for the
      benefit of the Certificateholders by including (or deleting, in the case of
      Mortgage Loans which are repurchased in accordance with this Agreement) in
      such
      computer files (a) the code in the field which identifies the specific Trustee
      and (b) the code in the field “Pool Field” which identifies the series of the
      Certificates issued in connection with such Mortgage Loans. The Seller further
      agrees that it will not, and will not permit the Servicers or the Master
      Servicer to alter the codes referenced in this paragraph with respect to any
      Mortgage Loan during the term of this Agreement unless and until such Mortgage
      Loan is repurchased in accordance with the terms of this Agreement or the
      Pooling and Servicing Agreement.

     

    (c) Acceptance
      of Mortgage Loans.
      The
      documents delivered pursuant to Section 4(b) hereof shall be reviewed by the
      Purchaser or any assignee, transferee or designee of the Purchaser at any time
      before or after the Closing Date (and with respect to each document permitted
      to
      be delivered after the Closing Date, within seven (7) days of its delivery)
      to
      ascertain that all required documents have been executed and received and that
      such documents relate to the Mortgage Loans identified on the Closing
      Schedule.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (d) Transfer
      of Interest in Agreements.
      The
      Purchaser has the right to assign its interest under this Agreement, in whole
      or
      in part, to the Trustee, as may be required to effect the purposes of the
      Pooling and Servicing Agreement, without the consent of the Seller, and the
      assignee shall succeed to the rights and obligations hereunder of the
      Purchaser.  Any expense reasonably incurred by or on behalf of the
      Purchaser or the Trustee in connection with enforcing any obligations of the
      Seller under this Agreement will be promptly reimbursed by the
      Seller.

     

    (e) Examination
      of Mortgage Files.
      Prior
      to the Closing Date, the Seller shall either (i) deliver in escrow to the
      Purchaser or to any assignee, transferee or designee of the Purchaser for
      examination the Mortgage File pertaining to each Mortgage Loan, or (ii) make
      such Mortgage Files available to the Purchaser or to any assignee, transferee
      or
      designee of the Purchaser for examination.  Such examination may be
      made by the Purchaser or the Trustee, and their respective designees, upon
      reasonable notice to the Seller during normal business hours before the Closing
      Date and within sixty (60) days after the Closing Date.  If any such
      person makes such examination prior to the Closing Date and identifies any
      Mortgage Loans that do not conform to the requirements of the Purchaser as
      described in this Agreement, such Mortgage Loans shall be deleted from the
      Closing Schedule.  The Purchaser may, at its option and without notice
      to the Seller, purchase all or part of the Mortgage Loans without conducting
      any
      partial or complete examination.  The fact that the Purchaser or any
      person has conducted or has failed to conduct any partial or complete
      examination of the Mortgage Files shall not affect the rights of the Purchaser
      or any assignee, transferee or designee of the Purchaser to demand repurchase
      or
      other relief as provided herein or under the Pooling and Servicing
      Agreement.

     

    SECTION
      5. Representations,
      Warranties and Covenants of the Seller.

     

    The
      Seller hereby represents and warrants to the Purchaser, as of the date hereof
      and as of the Closing Date, and covenants, that:

     

    (i) The
      Seller is a Delaware corporation with full corporate power and authority to
      conduct its business as presently conducted by it to the extent material to
      the
      consummation of the transactions contemplated herein. The Agreement has been
      duly authorized, executed and delivered by the Seller. The Seller had the full
      corporate power and authority to own the Mortgage Loans and to transfer and
      convey the Mortgage Loans to the Purchaser and has the full corporate power
      and
      authority to execute and deliver, engage in the transactions contemplated by,
      and perform and observe the terms and conditions of this Agreement;

     

    (ii) The
      Seller has duly authorized the execution, delivery and performance of this
      Agreement, has duly executed and delivered this Agreement, and this Agreement,
      assuming due authorization, execution and delivery by the Purchaser, constitutes
      a legal, valid and binding obligation of the Seller, enforceable against it
      in
      accordance with its terms except as the enforceability thereof may be limited
      by
      bankruptcy, insolvency or reorganization or by general principles of
      equity;

     

    (iii) The
      execution, delivery and performance of this Agreement by the Seller (x) does
      not
      conflict and will not conflict with, does not breach and will not result in
      a
      breach of and does not constitute and will not constitute a default (or an
      event, which with notice or lapse of time or both, would constitute a default)
      under (A) any terms or provisions of the organizational documents of the Seller,
      (B) any term or provision of any material agreement, contract, instrument or
      indenture, to which the Seller is a party or by which the Seller or any of
      its
      property is bound, or (C) any law, rule, regulation, order, judgment, writ,
      injunction or decree of any court or governmental authority having jurisdiction
      over the Seller or any of its property and (y) does not create or impose and
      will not result in the creation or imposition of any lien, charge or encumbrance
      (other than any created hereby in favor of the Purchaser and its assignees)
      which would have a material adverse effect upon the Mortgage Loans or any
      documents or instruments evidencing or securing the Mortgage Loans;

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    (iv) No
      consent, approval, authorization or order of, registration or filing with,
      or
      notice on behalf of the Seller to any governmental authority or court is
      required, under federal laws or the laws of the State of New York, for the
      execution, delivery and performance by the Seller of, or compliance by the
      Seller with, this Agreement or the consummation by the Seller of any other
      transaction contemplated hereby and by the Pooling and Servicing Agreement;
      provided, however, that the Seller makes no representation or warranty regarding
      federal or state securities laws in connection with the sale or distribution
      of
      the Certificates;

     

    (v) The
      Seller is not in violation of, and the execution and delivery of this Agreement
      by the Seller 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 Seller or its assets, which
      violation might have consequences that would materially and adversely affect
      the
      condition (financial or otherwise) or the operation of the Seller or its assets
      or might have consequences that would materially and adversely affect the
      performance of its obligations and duties hereunder;

     

    (vi) The
      Seller 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) Immediately
      prior to the sale of the Mortgage Loans to the Purchaser as herein contemplated,
      the Seller was the owner of the related Mortgage and the indebtedness evidenced
      by the related Mortgage Note, and, upon the payment to the Seller of the
      Purchase Price, in the event that the Seller retains or has retained record
      title, the Seller shall retain such record title to each Mortgage, each related
      Mortgage Note and the related Mortgage Files with respect thereto in trust
      for
      the Purchaser as the owner thereof from and after the date hereof;

     

    (viii) There
      are
      no actions or proceedings against, or investigations known to it of, the Seller
      before any court, administrative or other tribunal (A) that might prohibit
      its
      entering into this Agreement, (B) seeking to prevent the sale of the Mortgage
      Loans by the Seller or the consummation of the transactions contemplated by
      this
      Agreement or (C) that might prohibit or materially and adversely affect the
      performance by the Seller of its obligations under, or validity or
      enforceability of, this Agreement;

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    (ix) The
      consummation of the transactions contemplated by this Agreement are in the
      ordinary course of business of the Seller, and the transfer, assignment and
      conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant to
      this Agreement are not subject to the bulk transfer or any similar statutory
      provisions in effect in any relevant jurisdiction, except any as may have been
      complied with;

     

    (x) The
      Seller has not dealt with any broker, investment banker, agent or other person,
      except for the Purchaser or any of its affiliates, that may be entitled to
      any
      commission or compensation in connection with the sale of the Mortgage Loans
      (except that an entity that previously financed the Seller’s ownership of the
      Mortgage Loans may be entitled to a fee to release its security interest in
      the
      Mortgage Loans, which fee shall have been paid and which security interest
      shall
      have been released on or prior to the Closing Date);

     

    (xi) There
      is
      no litigation currently pending or, to the best of the Seller’s knowledge
      without independent investigation, threatened against the Seller that would
      reasonably be expected to adversely affect the transfer of the Mortgage Loans,
      the issuance of the Certificates or the execution, delivery, performance or
      enforceability of this Agreement, or that would result in a material adverse
      change in the financial condition of the Seller; and

     

    (xii) The
      information set forth in the applicable part of the Closing Schedule relating
      to
      the existence of a Prepayment Charge is complete, true and correct in all
      material respects at the date or dates respecting which such information is
      furnished and each Prepayment Charge is permissible and enforceable in
      accordance with its terms upon the mortgagor’s full and voluntary principal
      prepayment under applicable law, except to the extent that: (1) the
      enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
      receivership and other similar laws relating to creditors’ rights; (2) the
      collectability thereof may be limited due to acceleration in connection with
      a
      foreclosure or other involuntary prepayment; or (3) subsequent changes in
      applicable law may limit or prohibit enforceability thereof under applicable
      law.

     

    SECTION
      6. Representations
      and Warranties of the Seller Relating to the Mortgage Loans.

     

    The
      Seller hereby represents and warrants to the Purchaser that as to each Mortgage
      Loan as of the Closing Date:

     

    (i) Information
      provided to the Rating Agencies, including the loan level detail, is true and
      correct according to the Rating Agency requirements;

     

    (ii) No
      error,
      omission, misrepresentation, negligence, fraud or similar occurrence with
      respect to a Mortgage Loan has taken place on the part of 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;

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    (iii) Except
      as
      set forth on the Closing Schedule, all payments required to be made prior to
      the
      Cut-off Date with respect to each Mortgage Loan have been made;

     

    (iv) [Reserved];

     

    (v) There
      are
      no delinquent taxes, assessment liens or insurance premiums affecting the
      related Mortgaged Property;

     

    (vi) The
      terms
      of the Mortgage Note and the Mortgage have not been materially 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. The substance of any such waiver, alteration or
      modification has been approved by the title insurer, to the extent required
      by
      the related policy. 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 Trustee;

     

    (vii) The
      Mortgaged Property is insured against loss by fire and hazards of extended
      coverage (excluding earthquake insurance) in an amount which is at least equal
      to the lesser of (i) the amount necessary to compensate for any damage or loss
      to the improvements which are a part of such property on a replacement cost
      basis or (ii) the outstanding principal balance of the Mortgage Loan. 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. All such insurance policies
      contain a standard mortgagee clause naming the originator of the Mortgage Loan,
      its successors and assigns as mortgagee and the Seller has not engaged in any
      act or omission which would impair the coverage of any such insurance policies.
      Except as may be limited by applicable law, 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;

     

    (viii) Each
      Mortgage Loan and the related Prepayment Charge, if any, complied in all
      material respects with any and all requirements of any federal, state or local
      law including, without limitation, usury, truth in lending, anti-predatory
      lending, real estate settlement procedures, consumer credit protection, equal
      credit opportunity, fair housing or disclosure laws applicable to the
      origination and servicing of the Mortgage Loans and the consummation of the
      transactions contemplated hereby will not involve the violation of any such
      laws;

     

    (ix) The
      Mortgage has not been satisfied, cancelled, subordinated (other
      than with respect to second lien Mortgage Loans, the subordination to the
      related first lien)
      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;

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    (x) The
      Mortgage was recorded or was submitted for recording in accordance with all
      applicable laws and is a valid, existing and enforceable first or second lien
      on
      the Mortgaged Property including all improvements on the Mortgaged
      Property;

     

    (xi) The
      Mortgage Note and the related Mortgage are genuine and each is the legal, valid
      and binding obligation of the maker thereof, insured under the related title
      policy, and enforceable in accordance with its terms, except to the extent
      that
      the enforceability thereof may be limited by a bankruptcy, insolvency or
      reorganization;

     

    (xii) The
      Seller is the sole legal, beneficial and equitable owner of the Mortgage Note
      and the Mortgage and has the full right to convey, transfer and sell the
      Mortgage Loan to the Purchaser free and clear of any encumbrance, equity, lien
      (other than with respect to second lien Mortgage Loans, the subordination to
      the
      related first lien), pledge, charge, claim or security interest and immediately
      upon the sale, assignment and endorsement of the Mortgage Loans from the Seller
      to the Purchaser, the Purchaser shall have good and indefeasible title to and
      be
      the sole legal owner of the Mortgage Loans subject only to any encumbrance,
      equity, lien, pledge, charge, claim or security interest arising out of the
      Purchaser’s actions;

     

    (xiii) Each
      Mortgage Loan is covered by a valid and binding American Land Title Association
      lender’s title insurance policy issued by a title insurer qualified to do
      business in the jurisdiction where the Mortgaged Property is located. No claims
      have been filed under such lender’s title insurance policy, and the Seller has
      not done, by act or omission, anything that would impair the coverage of the
      lender’s title insurance policy;

     

    (xiv) There
      is
      no material default, breach, violation event or event of acceleration existing
      under the Mortgage or the Mortgage Note and no event which, with the passage
      of
      time or with notice and the expiration of any grace or cure period, would
      constitute a material default, breach, violation or event of acceleration,
      and
      the Seller has not, nor has its predecessors, waived any material default,
      breach, violation or event of acceleration;

     

    (xv) There
      are
      no mechanics’ or similar liens or claims which have been filed for work, labor
      or material provided to the related Mortgaged Property prior to the origination
      of the Mortgage Loan which are or may be liens prior to, or equal or coordinate
      with, the lien of the related Mortgage, except as may be disclosed in the
      related title policy;

     

    (xvi) Except
      with respect to approximately 43.88% of the Mortgage Loans by aggregate
      principal balance as of the Cut-off Date, which are balloon mortgage loans
      and
      approximately 16.72% of the Mortgage Loans by aggregate principal balance as
      of
      the Cut-off Date, which are interest only mortgage loans, each Mortgage Note
      is
      payable on the first day of each month in equal monthly installments of
      principal and interest (subject to adjustment in the case of the adjustable
      rate
      Mortgage Loans), with interest calculated on a 30/360 basis and payable in
      arrears, sufficient to amortize the Mortgage Loan fully by the stated maturity
      date over an original term from commencement of amortization to not more than
      30
      years and no Mortgage Loan permits negative amortization;

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    (xvii) The
      servicing practices used in connection with the servicing of the Mortgage Loans
      have been in all respects reasonable and customary in the mortgage servicing
      industry of like mortgage loan servicers, servicing similar subprime mortgage
      loans originated in the same jurisdiction as the Mortgaged
      Property;

     

    (xviii) At
      the
      time of origination of the Mortgage Loan there was no proceeding pending for
      the
      total or partial condemnation of the Mortgaged Property and, as of the date
      such
      Mortgage Loan was purchased by the Seller, to the best of the Seller’s knowledge
      there is no proceeding pending for the total or partial condemnation of the
      Mortgaged Property;

     

    (xix) 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;

     

    (xx) The
      Mortgage Note is not and has not been secured by any collateral except the
      lien
      of the related Mortgage referred to in subsection (x) above;

     

    (xxi) 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 Seller to the trustee under the deed of trust, except in
      connection with a trustee’s sale after default by the Mortgagor;

     

    (xxii) The
      Mortgage Loan is not subject to any valid right of rescission, set-off,
      counterclaim or defense, including without limitation the defense of usury,
      nor
      will the operation of any of the terms of the Mortgage Note or the Mortgage,
      or
      the exercise of any right thereunder, render either the Mortgage Note or the
      Mortgage unenforceable, in whole or in part, or subject to any such right of
      rescission, set-off, counterclaim or defense, including without limitation
      the
      defense of usury, and no such right of rescission, set-off, counterclaim or
      defense has been asserted with respect thereto;

     

    (xxiii) The
      Mortgage Loans were underwritten in accordance with the originator’s
      underwriting guidelines in effect at the time the Mortgage Loans were originated
      (the “Applicable Underwriting Guidelines”), except with respect to certain of
      those Mortgage Loans which had compensating factors permitting a deviation
      from
      the Applicable Underwriting Guidelines;

     

    (xxiv) The
      Mortgaged Property is free of material damage and waste, excepting therefrom
      any
      Mortgage Loan subject to an escrow withhold as shown on the Closing
      Schedule;

     

    (xxv) All
      of
      the improvements which were included in determining the appraised value of
      the
      Mortgaged Property lie wholly within the Mortgaged Property’s boundary lines and
      no improvements on adjoining properties encroach upon the Mortgaged Property,
      excepting therefrom: (i) any encroachment insured against in the lender’s title
      insurance policy identified in subsection (xiii), (ii) any encroachment
      generally acceptable to subprime mortgage loan originators doing business in
      the
      same jurisdiction as the Mortgaged Property, and (iii) any encroachment which
      does not materially interfere with the benefits of the security intended to
      be
      provided by such Mortgage;

    

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

    

    (xxvi) All
      parties to the Mortgage Note had the legal capacity to execute the Mortgage
      Note
      and the Mortgage, and the Mortgage Note and the Mortgage have been duly executed
      by such parties;

     

    (xxvii) To
      the
      best of the Seller’s knowledge, at the time of origination of the Mortgage Loan,
      no appraised improvement located on or being part of the Mortgaged Property
      was
      in violation of any applicable zoning law or regulation and all inspections,
      licenses and certificates required in connection with the origination of any
      Mortgage Loan with respect to the occupancy of the Mortgaged Property, have
      been
      made or obtained from the appropriate authorities;

     

    (xxviii) No
      Mortgagor has notified the Seller of any relief requested or allowed under
      the
      Servicemembers Civil Relief Act;

     

    (xxix) All
      parties which have held an interest in the Mortgage Loan are (or during the
      period in which they held and disposed of such interest, were) (1) in compliance
      with any and all applicable licensing requirements of the state wherein the
      Mortgaged Property is located, (2) organized under the laws of such state,
      (3)
      qualified to do business in such state, (4) a federal savings and loan
      association or national bank, (5) not doing business in such state, or (6)
      exempt from the applicable licensing requirements of such state;

     

    (xxx) The
      Mortgage File contains an appraisal of the related Mortgaged Property which
      was
      made prior to the approval of the Mortgage Loan by a qualified appraiser, duly
      appointed by the related originator and was made in accordance with the
      Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and the
      Uniform Standards of Professional Appraisal Practice;

     

    (xxxi) Except
      as
      may otherwise be limited by applicable law, the Mortgage contains a 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;

     

    (xxxii) The
      Mortgage Loan does not contain any provision which would constitute a “buydown”
provision and pursuant to which Monthly Payments are paid or partially paid
      with
      funds deposited in a separate account established by the related originator,
      the
      Mortgagor or anyone on behalf of the Mortgagor, or paid by any source other
      than
      the Mortgagor. 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;

     

    (xxxiii) To
      the
      best of the Seller’s knowledge there is no action or proceeding directly
      involving the Mortgaged Property presently pending in which compliance with
      any
      environmental law, rule or regulation is at issue and the Seller has received
      no
      notice of any condition at the Mortgaged Property which is reasonably likely
      to
      give rise to an action or proceeding in which compliance with any environmental
      law, rule or regulation is at issue;

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    (xxxiv) Each
      Mortgage Loan is an obligation which is principally secured by an interest
      in
      real property within the meaning of Treasury Regulation section
      1.860G-2(a);

     

    (xxxv) Each
      Mortgage Loan (a) is directly secured by a first or second lien on, and consists
      of a single parcel of, real property with a detached one-to-four family
      residence erected thereon, a townhouse or an individual condominium unit in
      a
      condominium project, or an individual unit in a planned unit development
      (“PUD”). Any unit in a PUD or condominium project conforms to the requirements
      of the Applicable Underwriting Guidelines regarding such dwellings. With respect
      to any Group IA Mortgage Loan that is on manufactured housing, upon origination
      of each such Group IA Mortgage Loan the manufactured housing unit either: (i)
      will be the principal residence of the borrower or (ii) will be classified
      as
      real property under applicable state law. No residence or dwelling is a mobile
      home or a manufactured dwelling unless it is a manufactured dwelling, which
      is
      permanently affixed to a foundation and treated as “real estate” under
      applicable law. No Mortgaged Property is used for commercial purposes. Mortgaged
      Properties which contain a home office shall not be considered as being used
      for
      commercial purposes as long as the Mortgaged Property has not been altered
      for
      commercial purposes and is not storing any chemicals or raw materials other
      than
      those commonly used for homeowner repair, maintenance and/or household
      purposes;

     

    (xxxvi) The
      Mortgage Interest Rate with respect to the Adjustable Rate Mortgage Loans is
      subject to adjustment at the time and in the amounts as are set forth in the
      related Mortgage Note;

     

    (xxxvii) No
      Mortgage Loan contains a provision whereby the Mortgagor can convert an
      Adjustable Rate Mortgage Loan into a Fixed Rate Mortgage Loan;

     

    (xxxviii) With
      respect to any Group IB Mortgage Loan that contains a provision permitting
      imposition of a premium upon a prepayment prior to maturity: (i) prior to such
      Group IB Mortgage Loan’s origination, the borrower agreed to such premium in
      exchange for a monetary benefit, including but not limited to a rate or fee
      reduction, (ii) prior to such Group IB Mortgage Loan’s origination, the borrower
      was offered the option of obtaining a mortgage loan that did not require payment
      of such a premium, (iii) the prepayment premium is adequately disclosed to
      the
      borrower pursuant to applicable state and federal law, (iv) the duration of
      the
      prepayment period shall not exceed three (3) years from the date of the Mortgage
      Note, and (v) notwithstanding any state or federal law to the contrary, the
      Servicers shall not impose such prepayment premium in any instance when the
      mortgage debt is accelerated as the result of the borrower’s default in making
      the loan payments;

     

    (xxxix) No
      Mortgage Loan is subject to the Home Ownership and Equity Protection Act of
      1994
      (“HOEPA”) or any comparable law and no Mortgage Loan is classified and/or
      defined as “high cost”, “covered” (excluding home loans defined as “covered home
      loans” in the New Jersey Home Ownership Security Act of 2002 that were
      originated between November 26, 2003 and July 7, 2004) “high risk home” or
“predatory” loan under any other federal, state or local law (or a similarly
      classified loan using different terminology under a law imposing heightened
      regulatory scrutiny or additional legal liability for residential mortgage
      loans
      having high interest rates, points and/or fees);

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    (xl) There
      is
      no Mortgage Loan that was originated or modified on or after October 1, 2002
      and
      before March 7, 2003, which is secured by property located in the State of
      Georgia. There is no such Mortgage Loan underlying the Certificates that was
      originated on or after March 7, 2003, which is a “high cost home loan” as
      defined under the Georgia Fair Lending Act

     

    (xli) No
      Mortgage Loan is a “High-Cost Home Loan” as defined in the Indiana Home Loan
      Practices Act, effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through
      24-9-9);

     

    (xlii) There
      is
      no Mortgage Loan that (a) is secured by property located in the State of
      Kentucky; (b) was originated on or after June 24, 2003, and (c) which is a
“high
      cost home loan” as defined under Kentucky State Statute KRS 360.100, effective
      as of June 24, 2003;

     

    (xliii) There
      is
      no Mortgage Loan that (a) is secured by property located in the State of
      Arkansas, (b) has a note date on or after July 16, 2003, and (c) which is a
      “high cost home loan” as defined under the Arkansas Home Loan Protection Act,
      effective as of July 16, 2003;

     

    (xliv) No
      Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home
      Ownership Act effective November 27, 2003 (N.J.S.A. 46:10B-22 et seq.);

     

    (xlv) 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.);

     

    (xlvi) 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.);

     

    (xlvii) No
      Mortgage Loan originated in the City of Los Angeles is subject to the City
      of
      Los Angeles California Ordinance 175008 as a home loan;

     

    (xlviii) No
      Mortgage Loan is a “High Cost Home Loan” as defined under the Maine House Bill
      383 L.D. 494, effective as of September 13, 2003;

     

    (xlix) No
      Mortgage Loan is a “High Cost” loan as defined under the New York Banking Law
      Section 6L, effective as of April 1, 2003;

     

    (l) No
      Mortgage Loan is a “home loan” in the state of Nevada; 

     

    (li) No
      Mortgage Loan is a “Section 10 mortgage loan” as defined in Oklahoma House Bill
      1574;

     

    (lii) With
      respect to any Group IA Mortgage Loan or Group IB Mortgage Loan originated
      on or
      after August 1, 2004, neither the related Mortgage nor the related Mortgage
      Note
      requires the borrower to submit to arbitration to resolve any dispute arising
      out of or relating in any way to the Mortgage Loan transaction;

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    (liii) No
      Mortgage Loan is a High Cost Loan or Covered Loan, as applicable (as such terms
      are defined in the then current Standard & Poor’s LEVELS®
      Glossary
      which is now Version 5.7, Appendix E (attached hereto as Exhibit 2)) and no
      Mortgage Loan originated on or after October 1, 2002 through March 6, 2003
      is
      governed by the Georgia Fair Lending Act;

     

    (liv) No
      Mortgage Loan is a “High-Cost Home Mortgage Loan” as defined in the
      Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
      (Mass. Ann. Laws Ch. 183C);

     

    (lv) With
      respect to any Mortgage Loan that is secured by a second lien on the related
      Mortgaged Property, either (i) no consent for the Mortgage Loan is required
      by
      the holder of any related senior lien or (ii) such consent has been obtained
      and
      is contained in the Mortgage File;

     

    (lvi) With
      respect to a Mortgage Loan which is a second lien, as of the date hereof, the
      Seller has not received a notice of default of a senior lien on the related
      Mortgaged Property which has not been cured;

     

    (lvii) No
      selection procedures were used by the Seller that identified the Mortgage Loans
      as being less desirable or valuable than other comparable mortgage loans in
      the
      Seller’s portfolio;

     

    (lviii) The
      information set forth in the Closing Schedule is true and correct in all
      material respects as of the Cut-off Date; 

     

    (lix) No
      Mortgage Loan is secured in whole or in part by the interest of the Mortgagor
      as
      a lessee under a ground lease of the related Mortgaged Property;

     

    (lx) Each
      Group IB Mortgage Loan is in compliance with the anti-predatory lending
      eligibility for purchase requirements of Fannie Mae’s Selling
      Guide;

     

    (lxi) No
      Group
      IA Mortgage Loan or Group IB Mortgage Loan has an “annual percentage rate” or
“total points and fees” payable by the borrower (as each such term is defined
      under HOEPA) that equal or exceed the applicable thresholds defined under HOEPA
      (Section 32 of Regulation Z, 12 C.F.R. Section 226.32(a)(1)(i) and
      (ii));

     

    (lxii) No
      Group
      IB Mortgage Loan is a balloon mortgage loan that has an original stated maturity
      of less than seven (7) years;

     

    (lxiii) With
      respect to each Group IB Mortgage Loan, no borrower was encouraged or required
      to select a mortgage loan product offered by such
      Group IB
      Mortgage Loan’s originator which is a higher cost product designed for less
      creditworthy borrowers, unless at the time of such Group IB Mortgage Loan’s
      origination, such borrower did not qualify taking into account credit history
      and debt to income ratios for a lower cost credit product then offered by such
      Group IB Mortgage Loan’s originator or any affiliate of such Group IB Mortgage
      Loan’s originator. If, at the time of loan application, the borrower may have
      qualified for a lower cost credit product then offered by any mortgage lending
      affiliate of such Group IB Mortgage Loan’s originator, such Group IB Mortgage
      Loan’s originator referred the borrower’s application to such affiliate for
      underwriting consideration;

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    (lxiv) With
      respect to each Group IA Mortgage Loan and Group IB Mortgage Loan, the
      methodology used in underwriting the extension of credit for each Group IA
      Mortgage Loan and Group IB Mortgage Loan employs objective mathematical
      principles which relate the borrower’s income, assets and liabilities to the
      proposed payment and such underwriting methodology does not rely on the extent
      of the borrower’s equity in the collateral as the principal determining factor
      in approving such credit extension. Such underwriting methodology confirmed
      that
      at the time of origination (application/approval) the borrower had a reasonable
      ability to make timely payments on such Group IA Mortgage Loan and Group IB
      Mortgage Loan;

     

    (lxv) With
      respect to each Group IA Mortgage Loan and each Group IB Mortgage
      Loan,
      no
      borrower was required to purchase any single premium credit insurance policy
      (e.g., life, mortgage, disability, accident, unemployment, or health insurance
      product) or debt cancellation agreement as a condition of obtaining the
      extension of credit. With respect to each Group IB Mortgage Loan, no borrower
      obtained a prepaid single premium credit insurance policy (e.g., life, mortgage,
      disability, accident, unemployment, or health insurance product) or debt
      cancellation agreement in connection with the origination of each Group
      IB Mortgage Loan;
      No
      proceeds from any Group IB Mortgage Loan were used to purchase single premium
      credit insurance policies (e.g., life, mortgage, disability, accident,
      unemployment, or health insurance product) or debt cancellation agreements
      as
      part of the origination of, or as a condition to closing, such Mortgage
      Loan;

     

    (lxvi) With
      respect to each Group IB Mortgage Loan, all points and fees related to such
      Group IB Mortgage Loan were disclosed in writing to the borrower in accordance
      with applicable state and federal law and regulation. No borrower was charged
      “points and fees” (whether or not financed) in an amount that exceeds the
      greater of (1) 5% of the principal amount of the Group IB Mortgage Loan (such
      5%
      limitation is calculated in accordance with Fannie Mae’s requirements as set
      forth in the Fannie Mae Selling Guide or (2) $1,000;

     

    (lxvii) 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 Group IA Mortgage Loan and Group IB Mortgage Loan has been disclosed in
      writing to the borrower in accordance with applicable state and federal law
      and
      regulation; and

     

    (lxviii) With
      respect to each Group IB Mortgage Loan, the related Servicer will transmit
      full-file credit reporting data for each Group IB Mortgage Loan pursuant to
      Fannie Mae Guide Announcement 95-19 and that for each Mortgage Loan, the related
      Servicer 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.

     

    (lxix) With
      respect to any Group IA Mortgage Loan that contains a provision permitting
      imposition of a penalty upon a prepayment prior to maturity: (a) such Group
      IA
      Mortgage Loan provides some benefit to the borrower (e.g., a rate or fee
      reduction) in exchange for accepting such prepayment penalty; (b) such Group
      IA
      Mortgage Loan’s originator had a written policy of offering the borrower, or
      requiring third-party brokers to offer the borrower, the option of obtaining
      a
      mortgage loan that did not require payment of such a penalty; (c) the prepayment
      penalty was adequately disclosed to the borrower pursuant to applicable state
      and federal law; (d) no Group IA Mortgage Loan originated on or after October
      1,
      2002 will provide for prepayment penalties for a term in excess of three years
      and any Group IA Mortgage Loan originated prior to such date will not provide
      for prepayment penalties for a term in excess of five years; in each case unless
      such Group IA Mortgage Loan was modified to reduce the prepayment period to
      no
      more than three years from the date of the Mortgage Note and the borrower was
      notified in writing of such reduction in prepayment period; and (e) such
      prepayment penalty shall not be imposed in any instance where the Group IA
      Mortgage Loan is accelerated or paid off in connection with the workout of
      a
      delinquent Mortgage or due to the borrower’s default, notwithstanding that the
      terms of such Group IA Mortgage Loan or state or federal law might permit the
      imposition of such penalty;

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    (lxx) The
      related Servicer for each Group IA Mortgage Loan has fully furnished, and will
      fully furnish, in accordance with the Fair Credit Reporting Act and its
      implementing regulations, accurate and complete information (i.e., favorable
      and
      unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union
      Credit Information Company (three of the credit repositories), on a monthly
      basis;

     

    (lxxi) The
      original principal balance of each Group IA Mortgage Loan which is secured
      by a
      first or second lien on the related Mortgaged Property is within Freddie Mac’s
      dollar amount limits for conforming one-to-four family mortgage
      loans;

     

    (lxxii) With
      respect to each Group IA Mortgage Loan, the borrower was not encouraged or
      required to select a mortgage loan product offered by the Group IA Mortgage
      Loan's originator which is a higher cost product designed for less creditworthy
      borrowers, taking into account such facts as, without limitation, the Group
      IA
      Mortgage Loan's requirements and the borrower’s credit history, income, assets
      and liabilities. For a borrower who seeks financing through a Group IA Mortgage
      Loan originator’s higher-priced subprime lending channel, the borrower was
      directed towards or offered the Group IA Mortgage Loan originator’s standard
      mortgage line if the borrower was able to qualify for one of the standard
      products;

     

    (lxxiii) With
      respect to a Group IA Mortgage Loan which is a second lien, (a) such second
      lien
      Group IA Mortgage Loan is secured by a one- to four-family residence that is
      the
      principal residence of the
      Mortgagor, (b) the origination amount for such second lien Group IA Mortgage
      Loan did not exceed one-half of the one-unit limitation set forth by Freddie
      Mac
      for first lien mortgage loans, without regard to the number of units, and (c)
      the aggregate original principal balance for the first lien and the second
      lien
      mortgage Loan do not exceed Freddie Mac’s applicable loan limits for first lien
      mortgage loans for properties of the same type as the related Mortgaged
      Property;

     

    (lxxiv) No
      borrower under a Group IA Mortgage Loan was charged “points and fees” in an
      amount greater than
      (a) $1,000 or (b) 5% of the principal amount of such Group IA Mortgage Loan,
      whichever is greater. For purposes of this representation, “points and fees” (x)
      include origination, underwriting, broker and finder’s fees and charges that the
      lender imposed as a condition of making such Group IA Mortgage Loan, whether
      they were paid to the lender or a third party; and (y) exclude bona fide
      discount points, fees paid for actual services rendered in connection with
      the
      origination of the mortgage (such as attorney’s fees, notaries fees and fees
      paid for property appraisals, credit reports, surveys, title examinations and
      extracts, flood and tax certifications, and home inspections); the cost of
      mortgage insurance or credit-risk price adjustments; the costs of title, hazard,
      and flood insurance policies; state and local transfer taxes or fees; escrow
      deposits for the future payment of taxes and insurance premiums; and other
      miscellaneous fees and charges that, in total, do not exceed 0.25 percent of
      the
      loan amount; and 

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    (lxxv) With
      respect to any Group IA Mortgage Loan for which the date of the related mortgage
      note is more than 1 year before the Closing Date, 

     

    (i) The
      Sponsor represents that it currently operates or actively participates in an
      on-going and active program or business (A) to originate mortgages, and/or
      (B)
      to make periodic purchases of mortgage loans from originators or other sellers,
      and/or (C) to issue and/or purchase securities or bonds supported by the
      mortgages, with a portion of the proceeds generated by such program or business
      being used to purchase or originate mortgages made to borrowers who
      are:

     

    (a)
      low-income families (families with incomes of 80% or less of area median income)
      living in low-income areas (a census tract or block numbering area in which
      the
      median income does not exceed 80 percent of the area median income)
      and/or

     

    (b)
      very
      low-income families (families with incomes of 60% or less of area median
      income), and

     

    (ii)
      The
      Sponsor agrees that Freddie Mac for a period of two (2) years following the
      date
      of this Agreement may contact the Sponsor to confirm that it continues to
      operate or actively participate in the mortgage program or business and to
      obtain other nonproprietary information about the Sponsor’s activities that may
      assist Freddie Mac in completing its regulatory reporting requirements. The
      Sponsor will make reasonable efforts to provide such information to Freddie
      Mac.

     

    SECTION
      7. Repurchase
      Obligation for Defective Documentation and for Breach of Representation and
      Warranty.

     

    (a) The
      representations and warranties contained in Section 6 shall not be impaired
      by
      any review and examination of loan files or other documents evidencing or
      relating to the Mortgage Loans or any failure on the part of the Seller or
      the
      Purchaser to review or examine such documents and shall inure to the benefit
      of
      any assignee, transferee or designee of the Purchaser, including the Trustee
      for
      the benefit of the Certificateholders. With respect to the representations
      and
      warranties contained herein as to which the Seller has no knowledge, if it
      is
      discovered that the substance of any such representation and warranty was
      inaccurate as of the date such representation and warranty was made or deemed
      to
      be made, and such inaccuracy materially and adversely affects the value of
      the
      related Mortgage Loan or the interest therein of the Purchaser or the
      Purchaser’s assignee, transferee or designee, then notwithstanding the lack of
      knowledge by the Seller with respect to the substance of such representation
      and
      warranty being inaccurate at the time the representation and warranty was made,
      the Seller shall take such action described in the following paragraph in
      respect of such Mortgage Loan. Notwithstanding anything to the contrary
      contained herein, any breach of a representation or warranty contained in
      clauses (viii), (xxxv), (lii), (lxiv), (lxv), (lxvii), (lix), (lxix), (lxx),
      (lxxi), (lxxii), (lxxiii) and/or (lxxiv) of Section 6 above, shall be
      automatically deemed to affect materially and adversely the interests of the
      Purchaser or the Purchaser’s assignee, transferee or designee.

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    Upon
      discovery by the Seller, the Purchaser or any assignee, transferee or designee
      of the Purchaser of any materially defective document in, or that any material
      document was not transferred by the Seller, as listed on a Custodian’s
      preliminary exception report, as described in the Custodial Agreement, as part
      of any Mortgage File, or of a breach of any of the representations and
      warranties contained in Section 6 that materially and adversely affects the
      value of any Mortgage Loan or the interest therein of the Purchaser or the
      Purchaser’s assignee, transferee or designee, the party discovering such breach
      shall give prompt written notice to the Seller. Within sixty (60) days of its
      discovery or its receipt of notice of any such missing documentation that was
      not transferred by the Seller as described above, or of materially defective
      documentation, or any such breach of a representation and warranty, the Seller
      promptly shall deliver such missing document or cure such defect or breach
      in
      all material respects or, in the event the Seller cannot deliver such missing
      document or cannot cure such defect or breach, the Seller shall, within ninety
      (90) days of its discovery or receipt of notice of any such missing or
      materially defective documentation or of any such breach of a representation
      and
      warranty, either (i) repurchase the affected Mortgage Loan at the Purchase
      Price
      (as such term is defined in the Pooling and Servicing Agreement) or (ii)
      pursuant to the provisions of the Pooling and Servicing Agreement, cause the
      removal of such Mortgage Loan from the Trust Fund and substitute one or more
      Qualified Substitute Mortgage Loans. The Seller shall amend the Closing Schedule
      to reflect the withdrawal of such Mortgage Loan from the terms of this Agreement
      and the Pooling and Servicing Agreement. The Seller shall deliver to the
      Purchaser such amended Closing Schedule and shall deliver such other documents
      as are required by this Agreement or the Pooling and Servicing Agreement within
      five (5) days of any such amendment. Any repurchase pursuant to this Section
      7(a) shall be accomplished by transfer to an account designated by the Purchaser
      of the amount of the Purchase Price in accordance with Section 2.03 of the
      Pooling and Servicing Agreement. Any repurchase required by this Section shall
      be made in a manner consistent with Section 2.03 of the Pooling and Servicing
      Agreement.

     

    (b) If
      the
      representation made by the Seller in Section 5(xii) is breached, the Seller
      shall not have the right or obligation to cure, substitute or repurchase the
      affected Mortgage Loan but shall remit to the related Servicer for deposit
      in
      the Collection Account, prior to the next succeeding Servicer Remittance Date,
      the amount of the Prepayment Charge indicated on the applicable part of the
      Closing Schedule to be due from the Mortgagor in the circumstances less any
      amount collected and remitted to such Servicer for deposit into the Collection
      Account.

     

    (c) It
      is
      understood and agreed that the obligations of the Seller set forth in this
      Section 7 to cure or repurchase a defective Mortgage Loan (and to make payments
      pursuant to Section 7(b)) constitute the sole remedies of the Purchaser against
      the Seller respecting a missing document or a breach of the representations
      and
      warranties contained in Section 5(xii) or Section 6.

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    SECTION
      8. Closing;
      Payment for the Mortgage Loans. The
      closing of the purchase and sale of the Mortgage Loans and the Swap Agreement,
      shall be held at the New York City office of Thacher Proffitt & Wood
llp
      at 10:00
      a.m. New York City time on the Closing Date.

     

    The
      closing shall be subject to each of the following conditions:

     

    (a) All
      of
      the representations and warranties of the Seller under this Agreement shall
      be
      true and correct in all material respects as of the date as of which they are
      made and no event shall have occurred which, with notice or the passage of
      time,
      would constitute a default under this Agreement;

     

    (b) The
      Purchaser shall have received, or the attorneys of the Purchaser shall have
      received in escrow (to be released from escrow at the time of closing), all
      closing documents as specified in Section 9 of this Agreement, in such forms
      as
      are agreed upon and acceptable to the Purchaser, duly executed by all
      signatories other than the Purchaser as required pursuant to the respective
      terms thereof;

     

    (c) The
      Seller shall have delivered or caused to be delivered and released to the
      Purchaser or to its designee, all documents (including without limitation,
      the
      Mortgage Loans) required to be so delivered by the Purchaser pursuant to Section
      2.01 of the Pooling and Servicing Agreement; and

     

    (d) All
      other
      terms and conditions of this Agreement and the Pooling and Servicing Agreement
      shall have been complied with.

     

    Subject
      to the foregoing conditions, the Purchaser shall deliver or cause to be
      delivered to the Seller on the Closing Date, against delivery and release by
      the
      Seller to the Trustee of all documents required pursuant to the Pooling and
      Servicing Agreement, the consideration for the Mortgage Loans as specified
      in
      Section 3 of this Agreement.

     

    SECTION
      9. Closing
      Documents.
      Without
      limiting the generality of Section 8 hereof, the closing shall be subject to
      delivery of each of the following documents:

     

    (a) An
      Officers’ Certificate of the Seller, dated the Closing Date, upon which the
      Purchaser and DBSI may rely with respect to certain facts regarding the sale
      of
      the Mortgage Loans by the Seller to the Purchaser;

     

    (b) An
      Opinion of Counsel of the Seller, dated the Closing Date and addressed to the
      Purchaser and DBSI;

     

    (c) Such
      opinions of counsel as the Rating Agencies or the Trustee may request in
      connection with the sale of the Mortgage Loans by the Seller to the Purchaser
      or
      the Seller’s execution and delivery of, or performance under, this Agreement;
      and

     

    (d) Such
      further information, certificates, opinions and documents as the Purchaser
      or
      DBSI may reasonably request.

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    SECTION
      10. Costs.
      The
      Seller shall pay (or shall reimburse the Purchaser or any other Person to the
      extent that the Purchaser or such other Person shall pay) all costs and expenses
      incurred in connection with the transfer and delivery of the Mortgage Loans,
      including without limitation, fees for title policy endorsements and
      continuations, the fees and expenses of the Seller’s accountants and attorneys,
      the costs and expenses incurred in connection with producing any Servicer’s loan
      loss, foreclosure and delinquency experience, and the costs and expenses
      incurred in connection with obtaining the documents referred to in Sections
      9(a), 9(b) and 9(c), the costs and expenses of printing (or otherwise
      reproducing) and delivering this Agreement, the Pooling and Servicing Agreement,
      the Certificates, the prospectus and prospectus supplement, and any private
      placement memorandum relating to the Certificates and other related documents,
      the initial fees, costs and expenses of the Trustee, the fees and expenses
      of
      the Purchaser’s counsel in connection with the preparation of all documents
      relating to the securitization of the Mortgage Loans, the filing fee charged
      by
      the Securities and Exchange Commission for registration of the Certificates
      and
      the fees charged by any rating agency to rate the Certificates.  All
      other costs and expenses in connection with the transactions contemplated
      hereunder shall be borne by the party incurring such expense.

     

    SECTION
      11. Servicing.  The
      Mortgage Loans will be master serviced by the Master Servicer under the Pooling
      and Servicing Agreement and serviced by New Century Mortgage Corporation
      pursuant to the Servicing Agreement and by Countrywide Home Loans Servicing
      LP
      pursuant to the Pooling and Servicing Agreement, on behalf of the Trust, and
      the
      Seller has represented to the Purchaser that such Mortgage Loans are not subject
      to any other servicing agreements with third parties.  It is
      understood and agreed between the Seller and the Purchaser that the Mortgage
      Loans are to be delivered free and clear of any servicing agreements other
      than
      the Servicing Agreement.  Neither the Purchaser nor any affiliate of
      the Purchaser is servicing the Mortgage Loans under any such servicing agreement
      and, accordingly, neither the Purchaser nor any affiliate of the Purchaser
      is
      entitled to receive any fee for releasing the Mortgage Loans from any such
      servicing agreement.  The Seller shall arrange for the orderly
      transfer of such servicing to the related Servicer.  For so long as
      the Master Servicer master services the Mortgage Loans and the Servicers service
      the Mortgage Loans, the Master Servicer shall be entitled to the Master
      Servicing Fee and each Servicer shall be entitled to its Servicing Fee and
      such
      other payments as provided for under the terms of the Servicing Agreement or
      the
      Pooling and Servicing Agreement, as applicable.

     

    SECTION
      12. Mandatory
      Delivery; Grant of Security Interest.  The
      sale and delivery on the Closing Date of the Mortgage Loans described on the
      Closing Schedule in accordance with the terms and conditions of this Agreement
      is mandatory.  It is specifically understood and agreed that each
      Mortgage Loan is unique and identifiable on the date hereof and that an award
      of
      money damages would be insufficient to compensate the Purchaser for the losses
      and damages incurred by the Purchaser in the event of the Seller’s failure to
      deliver the Mortgage Loans on or before the Closing Date.  The Seller
      hereby grants to the Purchaser a lien on and a continuing security interest
      in
      the Seller’s interest in each Mortgage Loan and each document and instrument
      evidencing each such Mortgage Loan to secure the performance by the Seller
      of
      its obligation hereunder, and the Seller agrees that it holds such Mortgage
      Loans in custody for the Purchaser, subject to the Purchaser’s (i) right, prior
      to the Closing Date, to reject any Mortgage Loan to the extent permitted by
      this
      Agreement and (ii) obligation to deliver or cause to be delivered the
      consideration for the Mortgage Loans pursuant to Section 8
      hereof.  Any Mortgage Loans rejected by the Purchaser shall
      concurrently therewith be released from the security interest created
      hereby.  All rights and remedies of the Purchaser under this Agreement
      are distinct from, and cumulative with, any other rights or remedies under
      this
      Agreement or afforded by law or equity and all such rights and remedies may
      be
      exercised concurrently, independently or successively.

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    Notwithstanding
      the foregoing, if on the Closing Date, each of the conditions set forth in
      Section 8 hereof shall have been satisfied and the Purchaser shall not have
      paid
      or caused to be paid the Purchase Price, or any such condition shall not have
      been waived or satisfied and the Purchaser determines not to pay or cause to
      be
      paid the Purchase Price, the Purchaser shall immediately effect the redelivery
      of the Mortgage Loans, if delivery to the Purchaser has occurred, and the
      security interest created by this Section 12 shall be deemed to have been
      released.

     

    SECTION
      13. Notices.  All
      demands, notices and communications hereunder shall be in writing and shall
      be
      deemed to have been duly given if personally delivered to or mailed by
      registered mail, postage prepaid, or transmitted by fax and, receipt of which
      is
      confirmed by telephone, if to the Purchaser, addressed to the Purchaser at
      6525
      Morrison Boulevard, Suite 318, Charlotte, North Carolina 28211, fax: (704)
      365-1362, Attention: Doris Hearn, or such other address as may hereafter be
      furnished to the Seller in writing by the Purchaser; and if to the Seller,
      addressed to the Seller at 60 Wall Street, New York, New York 10005, fax: (212)
      250-2740, Attention:  Michael Commaroto, or to such other address as
      the Seller may designate in writing to the Purchaser.

     

    SECTION
      14. Severability
      of Provisions.  Any
      part, provision, representation or warranty of this Agreement that is prohibited
      or that is held to be void or unenforceable shall be ineffective to the extent
      of such prohibition or unenforceability without invalidating the remaining
      provisions hereof.  Any part, provision, representation or warranty of
      this Agreement that is prohibited or unenforceable or is held to be void or
      unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
      to the extent of such prohibition or unenforceability without invalidating
      the
      remaining provisions hereof, and any such prohibition or unenforceability in
      any
      jurisdiction as to any Mortgage Loan shall not invalidate or render
      unenforceable such provision in any other jurisdiction.  To the extent
      permitted by applicable law, the parties hereto waive any provision of law
      which
      prohibits or renders void or unenforceable any provision hereof.

     

    SECTION
      15. Agreement
      of Parties.  The
      Seller and the Purchaser each agree to execute and deliver such instruments
      and
      take such actions as either of the others may, from time to time, reasonably
      request in order to effectuate the purpose and to carry out the terms of this
      Agreement and the Pooling and Servicing Agreement.

     

    SECTION
      16. Survival.  The
      Seller agrees that the representations, warranties and agreements made by it
      herein and in any certificate or other instrument delivered pursuant hereto
      shall be deemed to be relied upon by the Purchaser, notwithstanding any
      investigation heretofore or hereafter made by the Purchaser or on its behalf,
      and that the representations, warranties and agreements made by the Seller
      herein or in any such certificate or other instrument shall survive the delivery
      of and payment for the Mortgage Loans and shall continue in full force and
      effect, notwithstanding any restrictive or qualified endorsement on the Mortgage
      Notes and notwithstanding subsequent termination of this Agreement, the
      Servicing Agreement, the Pooling and Servicing Agreement or the Trust
      Fund.

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    SECTION
      17. GOVERNING
      LAW.  THIS
      AGREEMENT AND THE RIGHTS, DUTIES, OBLIGATIONS AND RESPONSIBILITIES OF THE
      PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
      (EXCLUDING THE CHOICE OF LAW PROVISIONS) AND DECISIONS OF THE STATE OF NEW
      YORK.  THE
      PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK
      GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AGREEMENT.

     

    SECTION
      18. Miscellaneous.
      This
      Agreement may be executed in two or more counterparts, each of which when so
      executed and delivered shall be an original, but all of which together shall
      constitute one and the same instrument.  This Agreement shall inure to
      the benefit of and be binding upon the parties hereto and their respective
      successors and assigns.  This Agreement supersedes all prior
      agreements and understandings relating to the subject matter
      hereof.  Neither this Agreement nor any term hereof may be changed,
      waived, discharged or terminated orally, but only by an instrument in writing
      signed by the party against whom enforcement of the change, waiver, discharge
      or
      termination is sought.  The headings in this Agreement are for
      purposes of reference only and shall not limit or otherwise affect the meaning
      hereof.

     

    It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Loans
      and the Swap Agreement by the Seller to the Purchaser as provided in Section
      4
      hereof be, and be construed as, a sale of the Mortgage Loans and the Swap
      Agreement by the Seller to the Purchaser and not as a pledge of the Mortgage
      Loans and the Swap Agreement by the Seller to the Purchaser to secure a debt
      or
      other obligation of the Seller. However, in the event that, notwithstanding
      the
      aforementioned intent of the parties, the Mortgage Loans and the Swap Agreement
      are held to be property of the Seller, then (a) it is the express intent of
      the
      parties that such conveyance be deemed a pledge of the Mortgage Loans and the
      Swap Agreement by the Seller to the Purchaser to secure a debt or other
      obligation of the Seller and (b) (1) this Agreement shall also be deemed to
      be a
      security agreement within the meaning of Articles 8 and 9 of the New York
      Uniform Commercial Code; (2) the conveyance provided for in Section 4 hereof
      shall be deemed to be a grant by the Seller to the Purchaser of a security
      interest in all of the Seller’s right, title and interest in and to the Mortgage
      Loans and the Swap Agreement and all amounts payable to the holders of the
      Mortgage Loans and the Swap Agreement in accordance with the terms thereof
      and
      all proceeds of the conversion, voluntary or involuntary, of the foregoing
      into
      cash, instruments, securities or other property, including without limitation
      all amounts, other than investment earnings, from time to time held or invested
      in the Collection Account whether in the form of cash, instruments, securities
      or other property; (3) the possession by the Purchaser or its agent of Mortgage
      Notes, the related Mortgages and such other items of property that constitute
      instruments, money, negotiable documents or chattel paper shall be deemed to
      be
“possession by the secured party” for purposes of perfecting the security
      interest pursuant to Section 9-305 of the New York Uniform Commercial Code;
      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 Purchaser for the
      purpose of perfecting such security interest under applicable law. Any
      assignment of the interest of the Purchaser pursuant to Section 4(d) hereof
      shall also be deemed to be an assignment of any security interest created
      hereby. The Seller and the Purchaser 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 Mortgage Loans and
      the Swap Agreement, 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 this Agreement and the Pooling and Servicing
      Agreement.

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    SECTION
      19. Third
      Party Beneficiary.  The
      parties hereto acknowledge and agree that DBSI and each of its respective
      successors and assigns shall have all the rights of a third-party beneficiary
      in
      respect of Section 12 of this Agreement and shall be entitled to rely upon
      and
      directly enforce the provisions of Section 12 of this Agreement.

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    
 

    IN
      WITNESS WHEREOF, the Purchaser and the Seller have caused their names to be
      signed by their respective officers thereunto duly authorized as of the date
      first above written.

     

    DB
      STRUCTURED PRODUCTS, INC.

     

    By:
      /s/
      Ernie Calabrese            

    Name:
      Ernie Calabrese

    Title:
      Director

     

    By:
      /s/
      Susan Valenti            

    Name:
      Susan Valenti

    Title:
      Director

     

    ACE
      SECURITIES CORP.

     

    By:
      /s/
      Evelyn Echevarria            

    Name:
      Evelyn Echevarria

    Title:
      Vice President

     

    By:
      /s/
      Patricia C. Harris            

    Name:
      Patricia C. Harris

    Title:
      Vice President

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      1

     

    Loan
      #:
 

    Borrower:
       

     

    LOST
      NOTE
      AFFIDAVIT

     

     

    
      	
              I,
                as _____________________ of ____________________, a _______________
                am
                authorized to make this Affidavit on behalf of __________________
                (the
                “Seller”). In connection with the administration of the Mortgage Loans
                held by ______________________, a _______________ [corporation] as
                Seller
                on behalf of ____________________ (the “Purchaser”),
                _______________________ (the “Deponent”), being duly sworn, deposes and
                says that:

            	 
	
              1. The
                Seller’s address is:

            	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
              2. The
                Seller previously delivered to the Purchaser a signed Initial
                Certification with respect to such Mortgage and/or Assignment of
                Mortgage;

               

              3. Such
                Mortgage Note and/or Assignment of Mortgage was assigned or sold
                to the
                Purchaser by __________________, a pursuant to the terms and provisions
                of
                a Mortgage Loan Purchase Agreement dated as of _____________;

               

              4. Such
                Mortgage Note and/or Assignment of Mortgage is not outstanding pursuant
                to
                a request for release of Documents;

               

              5. Aforesaid
                Mortgage Note and/or Assignment of Mortgage (the “Original”) has been
                lost;

               

              6. Deponent
                has made or caused to be made a diligent search for the Original
                and has
                been unable to find or recover same;

               

              7. The
                Seller was the Seller of the Original at the time of the loss;
                and

               

              8. Deponent
                agrees that, if said Original should ever come into Seller’s possession,
                custody or power, Seller will immediately and without consideration
                surrender the Original to the Purchaser.

               

              9. Attached
                hereto is a true and correct copy of (i) the Note, endorsed in blank
                by
                the Mortgagee and (ii) the Mortgage or Deed of Trust (strike one)
                which
                secures the Note, which Mortgage or Deed of Trust is recorded in
                the
                county where the property is located.

            
	 	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10. Deponent
      hereby agrees that the Seller (a) shall indemnify and hold harmless the
      Purchaser, its successors and assigns, against any loss, liability or damage,
      including reasonable attorney’s fees, resulting from the unavailability of any
      Notes, including but not limited to any loss, liability or damage arising from
      (i) any false statement contained in this Affidavit, (ii) any claim of any
      party
      that purchased a mortgage loan evidenced by the Lost Note or any interest in
      such mortgage loan, (iii) any claim of any borrower with respect to the
      existence of terms of a mortgage loan evidenced by the Lost Note on the related
      property to the fact that the mortgage loan is not evidenced by an original
      note
      and (iv) the issuance of a new instrument in lieu thereof (items (i) through
      (iv) above hereinafter referred to as the “Losses”) and (b) if required by any
      Rating Agency in connection with placing such Lost Note into a Pass-Through
      Transfer, shall obtain a surety from an insurer acceptable to the applicable
      Rating Agency to cover any Losses with respect to such Lost Note.

     

    11. This
      Affidavit is intended to be relied upon by the Purchaser, its successors and
      assigns. Seller represents and warrants that is has the authority to perform
      its
      obligations under this Affidavit of Lost Note.

     

    Executed
      this _ day of _______, 200_.

     

    

     

    

    

    __________________________________

     

    By:                            

    Name:

    Title:

     

    On
      this
      __ day of ______, 200_, before me appeared ______________________ to me
      personally known, who being duly sworn did say that he is the
      _______________________ of ____________________, a ______________________ and
      that said Affidavit of Lost Note was signed and sealed on behalf of such
      corporation and said acknowledged this instrument to be the free act and deed
      of
      said entity.

     

    Signature:

     

    [Seal]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      EXHIBIT
        2

      APPENDIX
        E — Standard & Poor’s Predatory Lending Categories

       

      Standard
        & Poor’s has categorized loans governed by anti-predatory lending laws in
        the Jurisdictions listed below into three categories based upon a combination
        of
        factors that include (a) the risk exposure associated with the assignee
        liability and (b) the tests and thresholds set forth in those laws. Note
        that
        certain loans classified by the relevant statute as Covered are included
        in
        Standard & Poor’s High Cost Loan Category because they included thresholds
        and tests that are typical of what is generally considered High Cost by the
        industry. 

       

      Standard
        & Poor’s High Cost Loan Categorization 

      
        	 	 	 
	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory 

                Lending
                  Law/Effective Date

              	
                Category
                  under 

                Applicable
                  Anti-

                Predatory
                  Lending Law

              
	
                Arkansas

              	
                Home
                  Loan Protection Act, Ark. 

                Code
                  Ann. §§ 23-53-101 etseq.

                Effective
                  July 16, 2003

              	
                High
                  Cost Home Loan

              
	
                Cleveland
                  Heights, OH

              	
                Ordinance
                  No. 72-2003 (PSH), Mun. Code §§ 757.01 etseq.

                Effective
                  June 2, 2003

              	
                Covered
                  Loan

              
	
                Colorado

              	
                Consumer
                  Equity Protection, Colo. Stat. Ann. §§ 5-3.5-101 etseq.

                Effective
                  for covered loans offered or entered into on or after January 1,
                  2003.
                  Other provisions of the Act took effect on June 7, 2002

              	
                Covered
                  Loan

              
	
                Connecticut

              	
                Connecticut
                  Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§36a-746
                  etseq.

                Effective
                  October 1, 2001

              	
                High
                  Cost Home Loan

              
	
                District
                  of Columbia

              	
                Home
                  Loan Protection Act, D.C. Code §§ 26-1151.01 etseq.
                  

                Effective
                  for loans closed on or after January 28, 2003

              	
                Covered
                  Loan

              
	
                Florida

              	
                Fair
                  Lending Act, Fla. Stat. Ann. §§ 494.0078 etseq.
                  

                Effective
                  October 2, 2002

              	
                High
                  Cost Home Loan 

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	 	 
	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory 

                Lending
                  Law/Effective Date

              	
                Category
                  under 

                Applicable
                  Anti-

                Predatory
                  Lending Law

              
	
                Georgia
                  (Oct. 1, 2002 - Mar. 6, 2003)

              	
                Fair
                  Lending Act, Ga. Code Ann. §§ 7-6A-1 etseq.

                Effective
                  October 1, 2002 - March 6, 2003

              	
                High
                  Cost Home Loan

              
	
                Georgia
                  as amended (Mar. 7, 2003 - current)

              	
                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 etseq.

                Effective
                  for loans closed on or after March 7, 2003

              	
                High
                  Cost Home Loan

              
	
                HOEPA
                  Section 32

              	
                Home
                  Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R.
                  §§ 226.32 and 226.34

                Effective
                  October 1, 1995, amendments October 1, 2002

              	
                High
                  Cost Loan

              
	
                Illinois

              	
                High
                  Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 etseq.

                Effective
                  January 1, 2004 (prior to this date, regulations under Residential
                  Mortgage License Act effective from May 14, 2001)

              	
                High
                  Risk Home Loan

              
	
                Kansas

              	
                Consumer
                  Credit Code, Kan. Stat. Ann. §§ 16a-1-101 etseq.

                Section
                  16a-1-301 and 16a-3-207 became effective April 14, 1999; Section
                  16a-3-308a became effective July 1, 1999

              	
                High
                  Loan to Value Consumer Loan (id. § 16a-3-207) and;

              
	
                High
                  APR Consumer Loan (id. §16a-3-308a)

              
	
                Kentucky

              	
                2003
                  KY H.B. 287 - High Cost Home Loan Act, Ky. Rev. Stat §§360.100
                  etseq.

                Effective
                  June 24, 2003

              	
                High
                  Cost Home Loan

              
	
                Maine

              	
                Truth
                  in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 etseq.

                Effective
                  September 29, 1995 and as amended from time to time

              	
                High
                  Rate High Fee Mortgage

              
	
                Massachusetts

              	
                Part
                  40 and Part 32, 209 C.M.R. §§ 32.00 etseq.
                  and 209 C.M.R. §§ 40.01 etseq.

                Effective
                  March 22, 2001 and amended from time to time

              	
                High
                  Cost Home Loan

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	 	 
	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory 

                Lending
                  Law/Effective Date

              	
                Category
                  under 

                Applicable
                  Anti-

                Predatory
                  Lending Law

              
	
                Nevada

              	
                Assembly
                  Bill No. 284, Nev. Rev. Stat §§ 598D.010 etseq.

                Effective
                  October 1, 2003

              	
                Home
                  Loan

              
	
                New
                  Jersey

              	
                New
                  Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                  etseq.

                Effective
                  for loans closed on or after November 27, 2003

              	
                High
                  Cost Home Loan

              
	
                New
                  Mexico

              	
                Home
                  Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 etseq.

                Effective
                  as of January 1, 2004; Revised as of February 26, 2004

              	
                High
                  Cost Home Loan

              
	
                New
                  York

              	
                N.Y.
                  Banking Law Article 6-1

                Effective
                  for applications made on or after April 1, 2003

              	
                High
                  Cost Home Loan

              
	
                North
                  Carolina

              	
                Restrictions
                  and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                  etseq.

                Effective
                  July 1, 2000; amended October 1, 2003 (adding open-end lines of
                  credit)

              	
                High
                  Cost Home Loan

              
	
                Ohio

              	
                H.B.
                  386 (codified in various sections of the Ohio Code), Ohio Rev.
                  Code Ann.
                  §§ 1349.25 etseq.

                Effective
                  May 24, 2002

              	
                Covered
                  Loan

              
	
                Oklahoma

              	
                Consumer
                  Credit Code (codified in various sections of Title 14A)

                Effective
                  July 1, 2000; amended effective January 1, 2004

              	
                Subsection
                  10 Mortgage

              
	
                South
                  Carolina

              	
                South
                  Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                  etseq.

                Effective
                  for loans taken on or after January 1, 2004

              	
                High
                  Cost Home Loan

              
	
                West
                  Virginia

              	
                West
                  Virginia Residential Mortgage Lender, Broker and Servicer Act,
                  W. Va. Code
                  Ann. §§ 31-17-1 etseq.

                Effective
                  June 5, 2002

              	
                West
                  Virginia Mortgage Loan Act Loan

              

      

       

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Standard
        & Poor’s Covered Loan Categorization 

      
        	 	 	 
	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory

                Lending
                  Law/Effective Date

              	
                Category
                  under

                Applicable
                  Anti-

                Predatory
                  Lending Law

              
	
                Georgia
                  (Oct. 1, 2002 - Mar. 6, 2003)

              	
                Georgia
                  Fain Lending Act, Ga. Code Ann. §§ 7-6A-1 etseq.

                Effective
                  October 1, 2002 - March 6, 2003

              	
                Covered
                  Loan

              
	
                New
                  Jersey

              	
                New
                  Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat §§ 46:10B-22
                  etseq.

                Effective
                  November 27, 2003 - July 5, 2004

              	
                Covered
                  Home Loan

              

      

       

      Standard
        & Poor’s Home Loan Categorization 

      
        	 	 	 
	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory 

                Lending
                  Law/Effective Date

              	
                Category
                  under 

                Applicable
                  Anti-

                Predatory
                  Lending Law

              
	
                Georgia
                  (Oct. 1, 2002 - Mar. 6, 2003)

              	
                Georgia
                  Fain Lending Act, Ga. Code Ann. §§ 7-6A-1 etseq.

                Effective
                  October 1, 2002 - March 6, 2003

              	
                Home
                  Loan

              
	
                New
                  Jersey

              	
                New
                  Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat §§ 46:10B-22
                  etseq.

                Effective
                  for loans closed on or after November 27, 2003

              	
                Home
                  Loan

              
	
                New
                  Mexico

              	
                Home
                  Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 etseq.

                Effective
                  as of January 1, 2004; Revised as of February 26, 2004

              	
                Home
                  Loan

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	 	 
	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory 

                Lending
                  Law/Effective Date

              	
                Category
                  under 

                Applicable
                  Anti-

                Predatory
                  Lending Law

              
	
                North
                  Carolina

              	
                Restrictions
                  and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                  etseq.

                Effective
                  July 1, 2000; amended October 1, 2003 (adding open-end lines of
                  credit)

              	
                Consumer
                  Home Loan

              
	
                South
                  Carolina

              	
                South
                  Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                  etseq.

                Effective
                  for loans taken on or after January 1, 2004

              	
                Consumer
                  Home Loan

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    EXHIBIT
      G

    

    FORM
      10-D, FORM 8-K AND FORM 10-K

    REPORTING
      RESPONSIBILITY

    

    As
      to
      each item described below, the entity indicated as the Responsible Party shall
      be primarily responsible for reporting the information to the party identified
      as responsible for preparing the Securities Exchange Act Reports pursuant to
      Section 5.06(a)(ii). 

    

    Under
      Item 1 of Form 10-D: a) items marked “monthly statement” are required to be
      included in the periodic Distribution Date statement under Section 5.02,
      provided by the Securities Administrator based on information received from
      the
      Master Servicer; and b) items marked “Form 10-D report” are required to be in
      the Form 10-D report but not the monthly statement, provided by the party
      indicated. Information under all other Items of Form 10-D is to be included
      in
      the Form 10-D report.

    

      
        	
                Form

              	
                Item

              	
                Description

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              	
                Custodian

              	
                Trustee

              	
                Depositor

              	
                Sponsor

              
	
                10-D

              	
                Must
                  be filed within 15 days of the distribution date for the asset-backed
                  securities.

              	 	 	 	 
	 	
                1

              	
                Distribution
                  and Pool Performance Information

              	 	 	 	 	 	 
	
                Item
                  1121(a) - Distribution and Pool Performance
                  Information

              	 	 	 	 	 	 
	
                (1)
                  Any applicable record dates, accrual dates, determination dates
                  for
                  calculating distributions and actual distribution dates for the
                  distribution period.

              	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (2)
                  Cash flows received and the sources thereof for distributions,
                  fees and
                  expenses.

              	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (3)
                  Calculated amounts and distribution of the flow of funds for the
                  period
                  itemized by type and priority of payment, including:

              	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (i)
                  Fees or expenses accrued and paid, with an identification of the
                  general
                  purpose of such fees and the party receiving such fees or
                  expenses.

              	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (ii)
                  Payments accrued or paid with respect to enhancement or other support
                  identified in Item 1114 of Regulation AB (such as insurance premiums
                  or
                  other enhancement maintenance fees), with an identification of
                  the general
                  purpose of such payments and the party receiving such
                  payments.

              	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (iii)
                  Principal, interest and other distributions accrued and paid on
                  the
                  asset-backed securities by type and by class or series and any
                  principal
                  or interest shortfalls or carryovers.

              	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (iv)
                  The amount of excess cash flow or excess spread and the disposition
                  of
                  excess cash flow.

              	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (4)
                  Beginning and ending principal balances of the asset-backed
                  securities.

              	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (5)
                  Interest rates applicable to the pool assets and the asset-backed
                  securities, as applicable. Consider providing interest rate information
                  for pool assets in appropriate distributional groups or incremental
                  ranges.

              	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (6)
                  Beginning and ending balances of transaction accounts, such as
                  reserve
                  accounts, and material account activity during the period.

              	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (7)
                  Any amounts drawn on any credit enhancement or other support identified
                  in
                  Item 1114 of Regulation AB, as applicable, and the amount of coverage
                  remaining under any such enhancement, if known and
                  applicable.

              	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (8)
                  Number and amount of pool assets at the beginning and ending of
                  each
                  period, and updated pool composition information, such as weighted
                  average
                  coupon, weighted average remaining term, pool factors and prepayment
                  amounts.

              	 	
                X

                 

                (monthly
                  Statement)

              	 	 	
                Updated
                  pool composition information fields to be as specified by Depositor
                  from
                  time to time

              	 
	
                (9)
                  Delinquency and loss information for the period.

              	
                X

              	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                In
                  addition, describe any material changes to the information specified
                  in
                  Item 1100(b)(5) of Regulation AB regarding the pool assets.
                  (methodology)

              	
                X

              	 	 	 	 	 
	
                (10)
                  Information on the amount, terms and general purpose of any advances
                  made
                  or reimbursed during the period, including the general use of funds
                  advanced and the general source of funds for
                  reimbursements.

              	
                X

              	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (11)
                  Any material modifications, extensions or waivers to pool asset
                  terms,
                  fees, penalties or payments during the distribution period or that
                  have
                  cumulatively become material over time.

              	
                X

              	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (12)
                  Material breaches of pool asset representations or warranties or
                  transaction covenants.

              	
                X

              	 	 	 	
                X

              	 
	
                (13)
                  Information on ratio, coverage or other tests used for determining
                  any
                  early amortization, liquidation or other performance trigger and
                  whether
                  the trigger was met.

              	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (14)
                  Information regarding any new issuance of asset-backed securities
                  backed
                  by the same asset pool, any pool asset changes (other than in connection
                  with a pool asset converting into cash in accordance with its terms),
                  such
                  as additions or removals in connection with a prefunding or revolving
                  period and pool asset substitutions and repurchases (and purchase
                  rates,
                  if applicable), and cash flows available for future purchases,
                  such as the
                  balances of any prefunding or revolving accounts, if
                  applicable.

              	
                X

              	
                X

              	 	 	 	 
	
                Disclose
                  any material changes in the solicitation, credit-granting, underwriting,
                  origination, acquisition or pool selection criteria or procedures,
                  as
                  applicable, used to originate, acquire or select the new pool
                  assets.

              	 	 	 	 	 	
                X

              
	
                Item
                  1121(b) - Pre-Funding or Revolving Period Information

                 

                Updated
                  pool information as required under Item 1121(b).

              	 	 	 	 	 	
                X

              
	
                2

              	
                Legal
                  Proceedings

              	 	 	 	 	 	 
	
                Item
                  1117 - Legal proceedings pending against the following entities,
                  or their
                  respective property, that is material to Certificateholders, including
                  proceedings known to be contemplated by governmental
                  authorities:

              	 	 	 	 	 	 
	
                Sponsor
                  (Seller)

              	 	 	 	 	 	
                X

              
	
                Depositor

              	 	 	 	 	
                X

              	 
	
                Trustee

              	 	 	 	
                X

              	 	 
	
                Issuing
                  entity

              	 	 	 	 	
                X

              	 
	
                Master
                  Servicer, affiliated Servicer, other Servicer servicing 20% or
                  more of
                  pool assets at time of report, other material servicers

              	
                X

              	 	 	 	 	 
	
                Securities
                  Administrator

              	 	
                X

              	 	 	 	 
	
                Originator
                  of 20% or more of pool assets as of the Cut-off Date

              	 	 	 	 	
                X

              	 
	
                Custodian

              	 	 	
                X

              	 	 	 
	
                3

              	
                Sales
                  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.

              	 	 	 	 	
                X

              	 
	
                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)

              	 	
                X

              	 	
                X

              	 	 
	
                5

              	
                Submission
                  of Matters to a Vote of Security Holders

              	 	 	 	 	 	 
	
                Information
                  from Item 4 of Part II of Form 10-Q

              	 	
                X

              	 	
                X

              	 	 
	
                6

              	
                Significant
                  Obligors of Pool Assets

              	 	 	 	 	 	 
	
                Item
                  1112(b) - Significant
                  Obligor Financial Information*

              	 	 	 	 	
                X

              	
                X

              
	
                *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.

              	 	 	 	 	 	 
	
                7

              	
                Significant
                  Enhancement Provider Information

              	 	 	 	 	 	 
	
                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information*

              	 	 	 	 	 	 
	
                Determining
                  applicable disclosure threshold

              	 	
                X

              	 	 	 	 
	
                Requesting
                  required financial information or effecting incorporation by
                  reference

              	 	
                X

              	 	 	 	 
	
                Item
                  1115(b) - Derivative Counterparty Financial
                  Information*

              	 	 	 	 	 	 
	
                Determining
                  current maximum probable exposure

              	 	 	 	 	
                X

              	 
	
                Determining
                  current significance percentage

              	 	
                X

              	 	 	 	 
	
                Requesting
                  required financial information or effecting incorporation by
                  reference

              	 	
                X

              	 	 	 	 
	
                *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.

              	 	 	 	 	 	 
	
                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

              
	
                9

              	
                Exhibits

              	 	 	 	 	 	 
	
                Distribution
                  report

              	 	
                X

              	 	 	 	 
	
                Exhibits
                  required by Item 601 of Regulation S-K, such as material
                  agreements

              	 	 	 	 	
                X

              	 
	
                8-K

              	 	 	 	 
	
                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

              	
                X

              	
                X
                  (if Master Servicer is not a party)

              	 	
                X
                  (if Master Servicer is not a party)

              	
                X
                  (if Master Servicer is not a party)

              	
                X
                  (if Master Servicer is not a party)

              
	
                1.02

              	
                Termination
                  of a Material Definitive Agreement

              	
                X

              	
                X
                  (if Master Servicer is not a party)

              	 	
                X
                  (if Master Servicer is not a party)

              	
                X
                  (if Master Servicer is not a party)

              	
                X
                  (if Master Servicer is not a party)

              
	
                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.

              	 	 	 	 	 	 
	
                1.03

              	
                Bankruptcy
                  or Receivership

              	 	 	 	 	 	 
	
                Disclosure
                  is required regarding the bankruptcy or receivership, if known
                  to the
                  Master Servicer, with respect to any of the following: 

                 

                Sponsor
                  (Seller), Depositor, Master Servicer, affiliated Servicer, other
                  Servicer
                  servicing 20% or more of pool assets at time of report, other material
                  servicers, Certificate Administrator, Trustee, significant obligor,
                  credit
                  enhancer (10% or more), derivatives counterparty,
                  Custodian

              	
                X

              	
                X

              	
                X

              	
                X 

              	
                X 

              	
                X

              
	
                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 5.02 statement

              	
                X

              	
                X

              	 	 	 	 
	
                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

              	
                X

              	
                X

              	 	
                X

              	
                X

              	 
	
                5.03

              	
                Amendments
                  to Articles of Incorporation or Bylaws; Change in Fiscal
                  Year

              	 	 	 	 	 	 
	
                Disclosure
                  is required of any amendment “to the governing documents of the issuing
                  entity”

              	 	 	 	
                X

              	
                X

              	 
	
                5.06

              	
                Change
                  in Shell Company Status

              	 	 	 	 	 	 
	
                [Not
                  applicable to ABS issuers]

              	 	 	 	 	
                X

              	 
	
                6.01

              	
                ABS
                  Informational and Computational Material

              	 	 	 	 	 	 
	
                [Not
                  included in reports to be filed under Section 3.18]

              	 	 	 	 	
                X

              	 
	
                6.02

              	
                Change
                  of Servicer or Trustee

              	 	 	 	 	 	 
	
                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, certificate
                  administrator or trustee. 

              	
                X

              	
                X

              	 	
                X

              	
                X

              	 
	 	
                Reg
                  AB disclosure about any new servicer (from entity appointing new
                  servicer)
                  or trustee (from Depositor) is also required.

              	 	 	 	
                X

              	
                X

              	 
	
                6.03

              	
                Change
                  in Credit Enhancement or Other 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.
                  

              	 	
                X

              	 	
                X

              	
                X

              	 
	 	
                Reg
                  AB disclosure about any new enhancement provider is also
                  required

              	 	 	 	 	
                X

              	 
	
                6.04

              	
                Failure
                  to Make a Required Distribution

              	 	
                X

              	 	
                X

              	 	 
	
                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.

              	 	 	 	 	
                X

              	
                 

              
	
                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.

              	 	 	 	 	
                X

              	 
	
                7.01

              	
                Regulation
                  FD Disclosure

              	
                X

              	
                X

              	 	
                X

              	
                X

              	
                X

              
	
                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 security
                  holders.

              	 	 	 	 	
                X

              	 
	
                9.01

              	
                Financial
                  Statements and Exhibits

              
	
                10-K

              	 	 	 	 
	
                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

              
	 	
                15

              	
                Exhibits
                  and Financial Statement Schedules

              	 	 	 	 	 	 
	
                Item
                  1112(b) - Significant
                  Obligor Financial Information

              	 	 	 	 	
                X

              	
                X

              
	
                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information

              	 	 	 	 	 	 
	
                Determining
                  applicable disclosure threshold

              	 	
                X

              	 	 	 	 
	
                Requesting
                  required financial information or effecting incorporation by
                  reference

              	 	
                X

              	 	 	 	 
	
                Item
                  1115(b) - Derivative Counterparty Financial
                  Information

              	 	 	 	 	 	 
	
                Determining
                  current maximum probable exposure

              	 	 	 	 	
                X

              	 
	 	 	
                Determining
                  current significance percentage

              	 	
                X

              	 	 	 	 
	
                Requesting
                  required financial information or effecting incorporation by
                  reference

              	 	
                X

              	 	 	 	 
	
                Item
                  1117 - Legal proceedings pending against the following entities,
                  or their
                  respective property, that is material to Certificateholders, including
                  proceedings known to be contemplated by governmental
                  authorities:

              	 	 	 	 	 	 
	
                Sponsor
                  (Seller)

              	 	 	 	 	 	
                X

              
	
                Depositor

              	 	 	 	 	
                X

              	 
	
                Trustee

              	 	 	 	
                X

              	 	 
	
                Issuing
                  entity

              	 	 	 	 	
                X

              	 
	
                Master
                  Servicer, affiliated Servicer, other Servicer servicing 20% or
                  more of
                  pool assets at time of report, other material servicers

              	
                X

              	 	 	 	 	 
	
                Securities
                  Administrator

              	 	
                X

              	 	 	 	 
	
                Originator
                  of 20% or more of pool assets as of the Cut-off Date

              	 	 	 	 	
                X

              	
                X

              
	
                Custodian

              	 	 	
                X

              	 	 	 
	
                Item
                  1119 - Affiliations and relationships between the following entities,
                  or
                  their respective affiliates, that are material to
                  Certificateholders:

              	 	 	 	 	 	 
	
                Sponsor
                  (Seller)

              	 	 	 	 	 	
                X

              
	
                Depositor

              	 	 	 	 	
                X

              	 
	
                Trustee

              	 	 	 	
                X
                  with respect to 1119(a) affiliations only

              	 	 
	
                Master
                  Servicer, affiliated Servicer, other Servicer servicing 20% or
                  more of
                  pool assets at time of report, other material servicers

              	
                X

              	 	 	 	 	 
	
                Securities
                  Administrator

              	 	
                X

              	 	 	 	 
	
                Originator

              	 	 	 	 	
                X

              	
                X

              
	
                Custodian

              	 	 	
                X
                  (with respect to affiliations only)

              	 	 	 
	
                Credit
                  Enhancer/Support Provider

              	 	 	 	 	
                X

              	
                X

              
	
                Significant
                  Obligor

              	 	 	 	 	
                X

              	
                X

              
	
                Item
                  1122 - Assessment of Compliance with Servicing
                  Criteria

              	
                X

              	
                X

              	
                X

              	 	 	 
	
                Item
                  1123 - Servicer Compliance Statement

              	
                X

              	 	 	 	 	 

      

       

    

    
      
        
        

      

      
        G-1
          -
          G-15

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      H

     

    ADDITIONAL
      DISCLOSURE NOTIFICATION

     

    **SENT
      VIA FAX TO [_XXX)XXX-XXXX] AND VIA EMAIL TO [_________________] AND VIA
      OVERNIGHT MAIL TO THE ADDRESS IMMEDIATELY BELOW:

     

    Wells
      Fargo Bank, N.A. as Securities Administrator

    9062
      Old
      Annapolis Road

    Columbia,
      Maryland 21045

    Fax:
      (410) 715-2380

    E-mail:
      cts.sec.notifications@wellsfargo.com

     

    Attn:
      Corporate Trust Services - ACE 2006-NC3 - SEC REPORT PROCESSING

     

    ACE
      Securities Corp.

    6525
      Morrison Boulevard, Suite 318

    Charlotte,
      North Carolina 28211

    Fax:
      (704) 365-1362)

    Attn:
      Juliana Johnson

     

    RE:
      **
      Additional Form [10-D][10-K][8-K] Disclosure** Required

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section [__] of the Pooling and Servicing Agreement, dated
      as of [________] [__], 2006 among [_____________], as [______], [_____________],
      as [______], [_____________], as [______] and [_____________], as [______],
      the
      undersigned, as [______], hereby notifies you that certain events have come
      to
      our attention that [will] [may] need to be disclosed on Form
      [10-D][10-K][8-K].

     

    Description
      of Additional Form [10-D][10-K][8-K] Disclosure:

     

    

    

    

    List
      of any Attachments hereto to be included in the Additional Form
      [10-D][10-K][8-K] Disclosure: 

     

    

    Any
      inquiries related to this notification should be directed to [_____________],
      phone number: [______]; email address: [_________________].

     

    [NAME
      OF
      PARTY],

    as
      [role]

    

    

    By:
      _____________________

           Name:

           Title:

    

    
      
        
        

      

      
        H-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      I

     

    SWAP
      AGREEMENT

    
      
        	

                Deutsche
                  Bank 

                Aktiengesellschaft

              	
                 

              
	 	 
	
                DATE:

              	
                November
                  30, 2006 

              
	 	 
	
                TO:

              	
                HSBC
                  Bank USA, National Association, not in its individual capacity,
                  but solely
                  as trustee for the supplemental interest trust created pursuant
                  to the
                  Pooling and Servicing Agreement, with respect to the ACE Securities
                  Corp.
                  Home Equity Loan Trust, Series 2006-NC3, Asset Backed Pass-Through
                  Certificates

              
	 	 
	
                WITH
                  COPY TO:

              	
                Wells
                  Fargo Bank, N.A.

              
	 	
                9062
                  Old Annapolis Road

              
	 	
                Columbia,
                  MD 21045

              
	 	
                Attention:
                  Client Manager - Ace 2006-NC3

              
	 	
                Tel:
                  410-884-2000

              
	 	
                Fax:
                  410-715-2380

              
	 	 
	
                SUBJECT:

              	
                Fixed
                  Income Derivatives Confirmation 

              
	 	 
	
                REFERENCE
                  NUMBER:

              	
                N533634N

              

      

    

    

    The
      purpose of this long-form confirmation (“Confirmation”)
      is to
      confirm the terms and conditions of the current Transaction entered into on
      the
      Trade Date specified below (the “Transaction”)
      between
      Deutsche Bank AG (“Party
      A”) and
      HSBC
      Bank USA, National Association, not individually, but solely as trustee (the
      “Supplemental Interest Trust Trustee”) on behalf of the supplemental interest
      trust with respect to the ACE Securities Corp. Home Equity Loan Trust, Series
      2006-NC3, Asset Backed Pass-Through Certificates (the “Supplemental Interest
      Trust”) (“Party
      B”)
      created
      under the Pooling and Servicing Agreement, dated as of November 1, 2006, among
      ACE Securities Corp., as Depositor, Countrywide Home Loans Servicing LP, as
      Servicer, Wells Fargo Bank, National Association, as Master Servicer, Wells
      Fargo Bank, National Association, as Securities Administrator and HSBC Bank
      USA,
      National Association, as Trustee. (the
      “Pooling
      and Servicing Agreement”).
      This
      Confirmation evidences a complete and binding agreement between you and us
      to
      enter into the Transaction on the terms set forth below and replaces any
      previous agreement between us with respect to the subject matter hereof. This
      Confirmation constitutes a “Confirmation”
      and also
      constitutes a “Schedule”
      as
      referred to in the ISDA Master Agreement, and Paragraph 13 of a Credit Support
      Annex to the Schedule. 

    

    
      	
              1.

            	
              This
                Confirmation shall supplement, form a part of, and be subject to
                an
                agreement in the form of the ISDA Master Agreement (Multicurrency
                - Cross
                Border) as published and copyrighted in 1992 by the International
                Swaps
                and Derivatives Association, Inc. (the “ISDA
                Master Agreement”),
                as if Party A and Party B had executed an agreement in such form
                on the
                date hereof, with a Schedule as set forth in Item 3 of this Confirmation,
                and an ISDA Credit Support Annex (Bilateral Form - ISDA Agreements
                Subject
                to New York Law Only version) as published and copyrighted in 1994
                by the
                International Swaps and Derivatives Association, Inc., with Paragraph
                13
                thereof as set forth in Annex A hereto (the “Credit
                Support Annex”).
                For the avoidance of doubt, the Transaction described herein shall
                be the
                sole Transaction governed by such ISDA Master Agreement. In the event
                of
                any inconsistency among any of the following documents, the relevant
                document first listed shall govern: (i) this Confirmation, exclusive
                of
                the provisions set forth in Item 3 hereof and Annex A hereto; (ii)
                the
                provisions set forth in Item 3 hereof, which are incorporated by
                reference
                into the Schedule; (iii) the Credit Support Annex; (iv) the Definitions;
                and (v) the ISDA Master Agreement.

            

    

    

    Each
      reference herein to a “Section” (unless specifically referencing the Pooling and
      Servicing Agreement) or to a “Section” “of this Agreement” will be construed as
      a reference to a Section of the ISDA Master Agreement; each herein reference
      to
      a “Part” will be construed as a reference to the provisions herein deemed
      incorporated in a Schedule to the ISDA Master Agreement; each reference herein
      to a “Paragraph” will be construed as a reference to a Paragraph of the Credit
      Support Annex.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      Page
        2 of
        28

       

      
        
          	
                  2.

                	 The
                  terms of the particular Transaction to which this Confirmation
                  relates are
                  as follows:
	 	 	 	 
	 	
                  Type
                    of Transaction:

                	 	
                  Interest
                    Rate Swap

                
	 	 	 	 
	 	
                  Notional
                    Amount:

                	 	
                  With
                    respect to any Calculation Period, the amount set forth for such
                    period on
                    Schedule I attached hereto.

                
	 	 	 	 
	 	
                  Trade
                    Date:

                	 	
                  November
                    16, 2006

                
	 	 	 	 
	 	
                  Effective
                    Date:

                	 	
                  November
                    30, 2006

                
	 	 	 	 
	 	
                  Termination
                    Date:

                	 	
                  November
                    25, 2011, subject to adjustment in accordance with the Business
                    Day
                    Convention; provided, however, that for the purpose of determining
                    the
                    final Fixed Rate Payer Period End Date, Termination Date shall
                    be subject
                    to No Adjustment.

                
	 	 	 	 
	 	
                  Fixed
                    Amounts:

                	 	 
	 	 	 	 
	 	 	
                  Fixed
                    Rate Payer:

                	
                  Party
                    B

                
	 	 	 	 
	 	 	
                  Fixed
                    Rate Payer

                	 
	 	 	
                  Period
                    End Dates:

                	
                  The
                    25th
                    calendar day of each month during the Term of this Transaction,
                    commencing
                    December 25, 2006, and ending on the Termination Date, with No
                    Adjustment.

                
	 	 	 	 
	 	 	
                  Fixed
                    Rate Payer

                	 
	 	 	
                  Payment
                    Dates:

                	
                  Early
                    Payment shall be applicable. The Fixed Rate Payer Payment Date
                    shall be
                    one Business Day preceding each Fixed Rate Payer Period End
                    Date.

                
	 	 	 	 
	 	 	
                  Fixed
                    Rate:

                	
                  5.05%

                
	 	 	 	 
	 	 	
                  Fixed
                    Rate Day 

                	 
	 	 	
                  Count
                    Fraction:

                	
                  30/360

                
	 	 	 	 
	 	
                  Floating
                    Amounts:

                	 	 
	 	 	 	 
	 	 	
                  Floating
                    Rate Payer:

                	
                  Party
                    A

                
	 	 	 	 
	 	 	
                  Floating
                    Rate Payer

                	 
	 	 	
                  Period
                    End Dates:

                	
                  The
                    25th
                    calendar day of each month during the Term of this Transaction,
                    commencing
                    December 25, 2006, and ending on the Termination Date, subject
                    to
                    adjustment in accordance with the Business Day
                    Convention.

                
	 	 	 	 
	 	 	
                  Floating
                    Rate Payer 

                	 
	 	 	
                  Payment
                    Dates:

                	
                  Early
                    Payment shall be applicable. The Floating Rate Payer Payment
                    Date shall be
                    one Business Day preceding each Floating Rate Payer Period End
                    Date.

                
	 	 	 	 
	 	 	
                  Floating
                    Rate Option:

                	
                  USD-LIBOR-BBA

                
	 	 	 	 
	 	 	
                  Designated
                    Maturity:

                	
                  One
                    month

                
	 	 	 	 
	 	 	
                  Floating
                    Rate Day 

                	 

        

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          Page
            3 of
            28

           

        

        
          	 	 	
                  Count
                    Fraction:

                	
                  Actual/360

                
	 	 	 	 
	 	 	
                  Reset
                    Dates:

                	
                  The
                    first day of each Calculation Period.

                
	 	 	 	 
	 	 	
                  Compounding:

                	
                  Inapplicable

                
	 	 	 	 
	 	 	
                  Business
                    Days:

                	
                  New
                    York

                
	 	 	 	 
	 	 	
                  Business
                    Day Convention:

                	
                  Following

                
	 	 	 	 
	 	 	
                  Calculation
                    Agent:

                	
                  Party
                    A

                
	 	 	 	 
	 	 	
                  Additional
                    Payment:

                	
                  Party
                    B will pay to Party A USD $1,830,000 on the Effective
                    Date.

                
	 	 	 	 

        

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      4 of
      28

    
      	
              3.

            	
              Provisions
                Deemed Incorporated in a Schedule to the ISDA Master
                Agreement:

            

    

    

    
      	
              Part
                1.

            	
              Termination
                Provisions.

            

    

    

    For
      the
      purposes of this Agreement:-

    

    (a)   “Specified
      Entity”
      will not
      apply to Party A or Party B for any purpose. 

    

    
      	
              (b)

            	
              “Specified
                Transaction”
                will have the meaning specified in Section
                14.

            

    

    

    
      	
              (c)

            	
              Events
                of Default.

            

    

    

    The
      statement below that an Event of Default will apply to a specific party means
      that upon the occurrence of such an Event of Default with respect to such party,
      the other party shall have the rights of a Non-defaulting Party under Section
      6
      of this Agreement; conversely, the statement below that such event will not
      apply to a specific party means that the other party shall not have such
      rights.

    

    
      	 	
              (i)

            	
              The
                “Failure
                to Pay or Deliver”
                provisions of Section 5(a)(i) will apply to Party A and will apply
                to
                Party B; provided, however, that Section 5(a)(i) is hereby amended
                by
                replacing the word “third” with the word “first”; provided, further, that
                notwithstanding anything to the contrary in Section 5(a)(i), any
                failure
                by Party A to comply with or perform any obligation to be complied
                with or
                performed by Party A under the Credit Support Annex shall not constitute
                an Event of Default under Section 5(a)(i) unless (A) a
                Required Ratings Downgrade Event has occurred and been continuing
                for 30
                or more Local Business Days,
                and (B) such failure is not remedied on or before the third Local
                Business
                Day after notice of such failure is given to Party
                A.

            

    

    

    
      	 	
              (ii)

            	
              The
                “Breach
                of Agreement”
                provisions of Section 5(a)(ii) will apply to Party A and will not
                apply to
                Party B.

            

    

    

    
      	 	
              (iii)

            	
              The
                “Credit
                Support Default”
                provisions of Section 5(a)(iii) will apply to Party A and will not
                apply
                to Party B except that Section 5(a)(iii)(1) will apply to Party B
                solely
                in respect of Party B’s obligations under Paragraph 3(b) of the Credit
                Support Annex; provided, however, that notwithstanding anything to
                the
                contrary in Section 5(a)(iii)(1), any failure by Party A to comply
                with or
                perform any obligation to be complied with or performed by Party
                A under
                the Credit Support Annex shall not constitute an Event of Default
                under
                Section 5(a)(iii) unless (A) a Required Ratings Downgrade Event has
                occurred and been continuing for 30 or more Local Business Days,
                and (B)
                such failure is not remedied on or before the third Local Business
                Day
                after notice of such failure is given to Party
                A.

            

    

    

    
      	 	
              (iv)

            	
              The
                “Misrepresentation”
                provisions of Section 5(a)(iv) will apply to Party A and will not
                apply to
                Party B. 

            

    

    

    
      	 	
              (v)

            	
              The
                “Default
                under Specified Transaction”
                provisions of Section 5(a)(v) will apply to Party A and will not
                apply to
                Party B.

            

    

    

    The
      “Cross
      Default”
      provisions of Section 5(a)(vi), will apply to Party A, as amended herein, and
      will not apply to Party B. For purposes of Section 5(a)(vi), solely with respect
      to Party A:

    

    “Specified
      Indebtedness” will have the meaning specified in Section 14 ,except that such
      term shall not include obligations in respect of deposits received in the
      ordinary course of Party A’s banking business.

    

    “Threshold
      Amount” means with respect to Party A an amount equal to three percent (3%) of
      the Shareholders’ Equity of Party A or, if applicable, the Eligible Guarantor.

    

    “Shareholders’
      Equity” means with respect to an entity, at any time, the sum (as shown in the
      most recent annual audited financial statements of such entity) of (i) its
      capital stock (including preferred stock) outstanding, taken at par value,
      (ii)
      its capital surplus and (iii) its retained earnings, minus (iv) treasury stock,
      each to be determined in accordance with generally accepted accounting
      principles.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      5 of
      28

     

    
      	 	
              (vi)

            	
              The
                “Bankruptcy”
                provisions of Section 5(a)(vii) will apply to Party A and will apply
                to
                Party B except that the provisions of Section 5(a)(vii)(2), (6) (to
                the
                extent that such provisions refer to any appointment contemplated
                or
                effected by the Pooling and Servicing Agreement or any appointment
                to
                which Party B has not become subject), (7) and (9) will not apply
                to Party
                B; provided that, with respect to Party B only, Section 5(a)(vii)(4)
                is
                hereby amended by adding after the words “against it” the words
                “(excluding any proceeding or petition instituted or presented by
                Party A
                or its Affiliates)”, and Section 5(a)(vii)(8) is hereby amended by
                deleting the words “to (7) inclusive” and inserting lieu thereof “, (3),
                (4) as amended, (5), (6) as amended, or
                (7)”.

            

    

    

    
      	 	
              (vii)

            	
              The
                “Merger
                Without Assumption”
                provisions of Section 5(a)(viii) will apply to Party A and will apply
                to
                Party B.

            

    

    

    (d)    Termination
      Events.

    

    The
      statement below that a Termination Event will apply to a specific party means
      that upon the occurrence of such a Termination Event, if such specific party
      is
      the Affected Party with respect to a Tax Event, the Burdened Party with respect
      to a Tax Event Upon Merger (except as noted below) or the non-Affected Party
      with respect to a Credit Event Upon Merger, as the case may be, such specific
      party shall have the right to designate an Early Termination Date in accordance
      with Section 6 of this Agreement; conversely, the statement below that such
      an
      event will not apply to a specific party means that such party shall not have
      such right; provided, however, with respect to “Illegality” the statement that
      such event will apply to a specific party means that upon the occurrence of
      such
      a Termination Event with respect to such party, either party shall have the
      right to designate an Early Termination Date in accordance with Section 6 of
      this Agreement.

    

    (i)    The
      “Illegality”
      provisions of Section 5(b)(i) will apply to Party A and will apply to Party
      B.

    

    
      	 	
              (ii)

            	
              The
                “Tax
                Event”
                provisions of Section 5(b)(ii) will apply to Party A except that,
                for
                purposes of the application of Section 5(b)(ii) to Party A, Section
                5(b)(ii) is hereby amended by deleting the words “(x) any action taken by
                a taxing authority, or brought in a court of competent jurisdiction,
                on or
                after the date on which a Transaction is entered into (regardless
                of
                whether such action is taken or brought with respect to a party to
                this
                Agreement) or (y)”, and the “Tax
                Event”
                provisions of Section 5(b)(ii) will apply to Party B.
                

            

    

    

    
      	 	
              (iii)

            	
              The
                “Tax
                Event Upon Merger”
                provisions of Section 5(b)(iii) will apply to Party A and will apply
                to
                Party B, provided that Party A shall not be entitled to designate
                an Early
                Termination Date by reason of a Tax Event upon Merger in respect
                of which
                it is the Affected Party.

            

    

    

    
      	 	
              (iv)

            	
              The
                “Credit
                Event Upon Merger”
                provisions of Section 5(b)(iv) will not apply to Party A and will
                not
                apply to Party B.

            

    

    

    
      	
              (e)

            	
              The
                “Automatic
                Early Termination”
                provision of Section 6(a) will not apply to Party A and will not
                apply to
                Party B.

            

    

    

    (f)    Payments
      on Early Termination.
      For the
      purpose of Section 6(e) of this Agreement:

    

    
      	 	
              (i)

            	
              Market
                Quotation will apply, provided, however, that, in the event of a
                Derivative Provider Trigger Event, the following provisions will
                apply:

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      6 of
      28

    
      	 	
              (A)
                

            	
              The
                definition of Market Quotation in Section 14 shall be deleted in
                its
                entirety and replaced with the
                following:

            

    

    

    “Market
      Quotation” means,
      with respect to one or more Terminated Transactions, a Firm Offer which is
      (1)
      made by a Reference Market-maker that is an Eligible Replacement, (2) for an
      amount that would be paid to Party B (expressed as a negative number) or by
      Party B (expressed as a positive number) in consideration of an agreement
      between Party B and such Reference Market-maker to enter into a Replacement
      Transaction, and (3) made on the basis that Unpaid Amounts in respect of the
      Terminated Transaction or group of Transactions are to be excluded but, without
      limitation, any payment or delivery that would, but for the relevant Early
      Termination Date, have been required (assuming satisfaction of each applicable
      condition precedent) after that Early Termination Date is to be
      included.

    

    
      	 	
              (B)

            	
              The
                definition of Settlement Amount shall be deleted in its entirety
                and
                replaced with the following:

            

    

    

    “Settlement
      Amount”
      means,
      with respect to any Early Termination Date, an amount (as determined by Party
      B)
      equal to: 

    

    
      	 	
              (a)

            	
              If
                a Market Quotation for the relevant Terminated Transaction or group
                of
                Terminated Transactions is accepted by Party B so as to become legally
                binding on or before the day falling ten Local Business Days after
                the day
                on which the Early Termination Date is designated, or such later
                day as
                Party B may specify in writing to Party A, but in either case no
                later
                than one Local Business Day prior to the Early Termination Date (such
                day,
                the “Latest Settlement Amount Determination Day”), the Termination
                Currency Equivalent of the amount (whether positive or negative)
                of such
                Market Quotation; 

            

    

    

    
      	 	
              (b)

            	
              If,
                on the Latest Settlement Amount Determination Day, no Market Quotation
                for
                the relevant Terminated Transaction or group of Terminated Transactions
                has been accepted by Party B so as to become legally binding and
                one or
                more Market Quotations from
                Approved Replacements have
                been made and remain capable of becoming legally binding upon acceptance,
                the Settlement Amount shall equal the Termination Currency Equivalent
                of
                the amount (whether positive or negative) of the lowest of such Market
                Quotations (for the avoidance of doubt, the lowest of such Market
                Quotations shall be the lowest Market Quotation of
                such Market Quotations
                expressed as a positive number or, if any of such Market Quotations
                is
                expressed as a negative number, the Market Quotation expressed as
                a
                negative number with the largest absolute value);
                or

            

    

    

    
      	 	
              (c)

            	
              If,
                on the Latest Settlement Amount Determination Day, no Market Quotation
                for
                the relevant Terminated Transaction or group of Terminated Transactions
                is
                accepted by Party B so as to become legally binding and no Market
                Quotation from an Approved Replacement remains capable of becoming
                legally
                binding upon acceptance, the Settlement Amount shall equal Party
                B’s Loss
                (whether positive or negative and without reference to any Unpaid
                Amounts)
                for the relevant Terminated Transaction or group of Terminated
                Transactions.

            

    

    

    
      	 	
              (C)

            	
              If
                Party B requests Party A in writing to obtain Market Quotations,
                Party A
                shall use its reasonable efforts to do so before the Latest Settlement
                Amount Determination Day.

            

    

    

    
      	 	
              (D)

            	
              If
                the Settlement Amount is a negative number, Section 6(e)(i)(3) shall
                be
                deleted in its entirety and replaced with the
                following:

            

    

    

    “(3)
      Second
      Method and Market Quotation.
      If the
      Second Method and Market Quotation apply, (I) Party B shall pay to Party A
      an
      amount equal to the absolute value of the Settlement Amount in respect of the
      Terminated Transactions, (II) Party B shall pay to Party A the Termination
      Currency Equivalent of the Unpaid Amounts owing to Party A and (III) Party
      A
      shall pay to Party B the Termination Currency Equivalent of the Unpaid Amounts
      owing to Party B; provided, however, that (x) the amounts payable under the
      immediately preceding clauses (II) and (III) shall be subject to netting in
      accordance with Section 2(c) of this Agreement and (y) notwithstanding any
      other
      provision of this Agreement, any amount payable by Party A under the immediately
      preceding clause (III) shall not be netted-off against any amount payable by
      Party B under the immediately preceding clause (I).”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      7 of
      28

     

    
      	 	
              (E)

            	
              At
                any time on or before the Latest Settlement Amount Determination
                Day at
                which two or more Market Quotations from Approved Replacements remain
                capable of becoming legally binding upon acceptance, Party B shall
                be
                entitled to accept only the lowest of such Market Quotations (for
                the
                avoidance of doubt, the lowest of such Market Quotations shall be
                the
                lowest Market Quotation of such Market Quotations expressed as a
                positive
                number or, if any of such Market Quotations is expressed as a negative
                number, the Market Quotation expressed as a negative number with
                the
                largest absolute value).

            

    

    

    
      	 	
              (ii)

            	
              The
                Second Method will apply.

            

    

    

    (g)    “Termination
      Currency”
      means
      USD.

    

    (h)    Additional
      Termination Events.
      Additional Termination Events will apply as provided in Part 5(c).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      8 of
      28

    Part
      2.  Tax
      Matters.

    

    (a)    Tax
      Representations. 

    

    
      	 	
              (i)

            	
              Payer
                Representations.
                For the purpose of Section 3(e) of this Agreement:
                

            

    

     

    
      	 	
              (A)

            	
              Party
                A makes the following
                representation(s):

            

    

    

    It
      is not
      required by any applicable law, as modified by the practice of any relevant
      governmental revenue authority, of any Relevant Jurisdiction to make any
      deduction or withholding for or on account of any Tax from any payment (other
      than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be
      made
      by it to the other party under this Agreement. In making this representation,
      it
      may rely on: the accuracy of any representations made by the other party
      pursuant to Section 3(f) of this Agreement; (ii) the satisfaction of the
      agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the
      accuracy and effectiveness of any document provided by the other party pursuant
      to Section 4(a)(i) or 4(a)(iii) of this Agreement; and (iii) the satisfaction
      of
      the agreement of the other party contained in Section 4(d) of this Agreement,
      provided that it shall not be a breach of this representation where reliance
      is
      placed on clause (ii) and the other party does not deliver a form or document
      under Section 4(a)(iii) by reason of material prejudice to its legal or
      commercial position.

    
      	 	 	 

    

    
      	 	
              (B)

            	
              Party
                B makes the following
                representation(s):

            

    

    

    None.

    

    (ii)    Payee
      Representations.
      For the
      purpose of Section 3(f) of this Agreement: 

     

    
      	 	
              (A)

            	
              Party
                A makes the following
                representation(s):

            

    

    

    It
      is a
“foreign person” within the meaning of the applicable U.S. Treasury Regulations
      concerning information reporting and backup withholding tax (as in effect on
      January 1, 2001), unless Party A provides written notice to Party B that it
      is
      no longer a foreign person. In respect of any Transaction it enters into through
      an office or discretionary agent in the United States or which otherwise is
      allocated for United States federal income tax purposes to such United States
      trade or business, each payment received or to be received by it under such
      Transaction will be effectively connected with its conduct of a trade or
      business in the United States. 

    

    
      	 	
              (B)

            	
              Party
                B makes the following
                representation(s):

            

    

    

    None. 

    

    
      	
              (b)

            	
              Tax
                Provisions.

            

    

    

    
      	 	
              (i)

            	
              Gross
                Up.
                Section 2(d)(i)(4) shall not apply to Party B as X, and Section 2(d)(ii)
                shall not apply to Party B as Y, in each case such that Party B shall
                not
                be required to pay any additional amounts referred to
                therein.

            

    

    

    
      	 	
              (ii)

            	
              Indemnifiable
                Tax.
                The definition of “Indemnifiable Tax” in Section 14 is deleted in its
                entirety and replaced with the
                following:

            

    

    

    “Indemnifiable
      Tax”
      means,
      in relation to payments by Party A, any Tax and, in relation to payments by
      Party B, no Tax. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      9 of
      28

    Part
      3.  Agreement
      to Deliver Documents.  

    

    (a)    For
      the
      purpose of Section 4(a)(i), tax forms, documents, or certificates to be
      delivered are:

    

    
      	
              Party
                required to 

              deliver
                document

            	
              Form/Document/

              Certificate

            	
              Date
                by which to

              be
                delivered

            
	 	 	 
	
              Party
                A

            	
              A
                correct, complete and duly executed U.S. Internal Revenue Service
                Form
                W-8ECI
                or other applicable form
                (or successor thereto), together with appropriate attachments, that
                eliminates U.S. federal withholding and backup withholding Tax on
                payments
                to Party A under this Agreement.

            	
              (i)
                upon execution of this Agreement, (ii) on or before the first payment
                date
                under this Agreement, including any Credit Support Document, (iii)
                promptly upon the reasonable demand by Party B, (iv) prior to the
                expiration or obsolescence of any previously delivered form, and
                (v)
                promptly upon the information on any such previously delivered form
                becoming inaccurate or incorrect.

            
	 	 	 
	
              Party
                B

            	
              Party
                B will deliver at closing an original properly completed and executed
                United States Internal Revenue Service Form W-9 or other applicable
                form
                (or any successor thereto) with respect to any payments received
                or to be
                received by Party A, that eliminates U.S. federal withholding and
                backup
                withholding Tax on payments to Party A under this Agreement, and
                may
                deliver other tax forms relating to the beneficial owner of payments
                to
                Party B under this Agreement from time to time.

            	
              (i)
                upon execution of this Agreement, (ii) on or before the first payment
                date
                under this Agreement, including any Credit Support Document, (iii)
                promptly upon the reasonable demand by Party B, (iv) prior to the
                expiration or obsolescence of any previously delivered form, and
                (v)
                promptly upon the information on any such previously delivered form
                becoming inaccurate or incorrect.

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      10
      of 28

    (b) For
      the
      purpose of Section 4(a)(ii), other documents to be delivered, unless otherwise
      publicly available, are:

    

    
      	
              Party
                required to

              deliver
                document

            	
              Form/Document/

              Certificate

            	
              Date
                by which to

              be
                delivered

            	
              Covered
                by Section 3(d) Representation

            
	 	 	 	 
	
              Party
                A and

              Party
                B

            	
              Any
                documents required by the receiving party to evidence the authority
                of the
                delivering party or its Credit Support Provider, if any, for it to
                execute
                and deliver the Agreement, this Confirmation, and any Credit Support
                Documents to which it is a party, and to evidence the authority of
                the
                delivering party or its Credit Support Provider to perform its obligations
                under the Agreement, this Confirmation and any Credit Support Document,
                as
                the case may be

            	
              Upon
                the execution and delivery of this Agreement

            	
              Yes

            
	 	 	 	 
	
              Party
                A and

              Party
                B

            	
              A
                certificate of an authorized officer of the party, as to the incumbency
                and authority of the respective officers of the party signing the
                Agreement, this Confirmation, and any relevant Credit Support Document,
                as
                the case may be

            	
              Upon
                the execution and delivery of this Agreement

            	
              Yes

            
	 	 	 	 
	
              Party
                A

            	
              Annual
                Report of Party A containing consolidated financial statements certified
                by independent certified public accountants and prepared in accordance
                with generally accepted accounting principles in the country in which
                Party A is organized

            	
              Promptly
                upon becoming publicly available

            	
              Yes

            
	 	 	 	 
	
              Party
                A

            	
              Quarterly
                Financial Statements of Party A containing unaudited, consolidated
                financial statements of Party A’s fiscal quarter prepared in accordance
                with generally accepted accounting principles in the country in which
                Party A is organized

            	
              Promptly
                upon becoming publicly available

            	
              Yes

            
	 	 	 	 
	
              Party
                A

            	
              An
                opinion of counsel to Party A acceptable in form and substance to
                Party
                B

            	
              Upon
                the execution and delivery of this Agreement

            	
              No

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      11
      of 28

    Part
      4.   Miscellaneous. 

    

    
      	
              (a)

            	
              Address
                for Notices:
                For the purposes of Section 12(a) of this
                Agreement:

            

    

    

    Address
      for notices or communications to Party A under Sections 5 or 6 (other than
      notices under Section 5(a)(i)) shall be sent to:

    

    Deutsche
      Bank AG, Head Office

    Taunusanlage
      12

    60262
      Frankfurt

    GERMANY   

    Attention:
      Legal Department

    Telex
      No:
      411836 or 416731 or 41233

    Answerback: DBF-D

    

    All
      other
      notices to Party A shall be sent directly to the Office through which Party
      A is
      acting for the relevant Transaction, using the address and contact particulars
      specified in the Confirmation of that Transaction or otherwise
      notified.

     

    Address
      for notices or communications to Party B:

    

    

    Address:              
      HSBC
      Bank
      USA, National Association

    452
      Fifth
      Avenue

    New
      York,
      NY 10018  

    Attention:
      CTLA - Structured Finance

     

    (For
      all
      purposes)

    

    With
      copy
      to:  Wells
      Fargo Bank, N.A.

    9062
      Old
      Annapolis Road

    Columbia,
      MD 21045  

    Attention:
      Client Manager - ACE 2006-NC3

    Tel:
      410-884-2000

    Fax:
      410-715-2380

    

    (b)   Process
      Agent.
      For the
      purpose of Section 13(c):

    

    Party
      A
      appoints as its Process Agent: Not applicable.

    

    Party
      B
      appoints as its Process Agent: Not applicable.

    

    
      	
              (c)

            	
              Offices.
                The provisions of Section 10(a) will apply to this Agreement; neither
                Party A nor Party B has any Offices other than as set forth in the
                Notices
                Section and Party A agrees that, for purposes of Section 6(b) of
                this
                Agreement, it shall not in the future have any Office other than
                one in
                the United States.

            

    

    

    
      	
              (d)

            	
              Multibranch
                Party.
                For the purpose of Section 10(c) of this
                Agreement:

            

    

    

    Party
      A
      is not a Multibranch Party.

    

    
      	 	
              Party
                B is not a Multibranch Party.

            

    

    

    
      	
              (e)

            	
              Calculation
                Agent.
                The Calculation Agent is Party A; provided, however, that if an Event
                of
                Default shall have occurred with respect to Party A, Party B shall
                have
                the right to appoint as Calculation Agent a third party, reasonably
                acceptable to Party A, the cost for which shall be borne by Party
                A.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      12
      of 28

    (f) Credit
      Support Document. 

     

    
      	 	
              Party
                A:

            	
              The
                Credit Support Annex, and any guarantee in support of Party A’s
                obligations under this Agreement.

            

    

    

    Party
      B:      The
      Credit Support Annex, solely in respect of Party B’s obligations under Paragraph
      3(b) of the Credit Support Annex.

    

    
      	
              (g)

            	
              Credit
                Support Provider.

            

    

    

    Party
      A:      The
      guarantor under any guarantee in support of Party A’s obligations under this
      Agreement.

    

    Party
      B:      None.

    

    
      	
              (h)

            	
              Governing
                Law.
                The parties to this Agreement hereby agree that the law of the State
                of
                New York shall govern their rights and duties in whole, without regard
                to
                the conflict of law provisions thereof other than New York General
                Obligations Law Sections 5-1401 and 5-1402.

            

    

    

    
      	
              (i)

            	
              Netting
                of Payments.
                The parties agree that subparagraph (ii) of Section 2(c) will apply
                to
                each Transaction hereunder. 

            

    

    

    
      	
              (j)

            	
              Affiliate.“Affiliate”
                shall have the meaning assigned thereto in Section 14; provided,
                however,
                that Party B shall be deemed to have no Affiliates for purposes of
                this
                Agreement, including for purposes of Section
                6(b)(ii).

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      13
      of 28

    Part
      5.  Others
      Provisions.

    

    
      	
              (a)

            	
              Definitions.
                Unless
                otherwise specified in a Confirmation, this Agreement and each Transaction
                under this Agreement are subject to the 2000 ISDA Definitions as
                published
                and copyrighted in 2000 by the International Swaps and Derivatives
                Association, Inc. (the “Definitions”),
                and will be governed in all relevant respects by the provisions set
                forth
                in the Definitions, without regard to any amendment to the Definitions
                subsequent to the date hereof. The provisions of the Definitions
                are
                hereby incorporated by reference in and shall be deemed a part of
                this
                Agreement, except that (i) references in the Definitions to a “Swap
                Transaction” shall be deemed references to a “Transaction” for purposes of
                this Agreement, and (ii) references to a “Transaction” in this Agreement
                shall be deemed references to a “Swap Transaction” for purposes of the
                Definitions. Each term capitalized but not defined in this Agreement
                shall
                have the meaning assigned thereto in the Pooling and Servicing
                Agreement.

            

    

     

    (b)   Amendments
      to ISDA Master Agreement.

    

    
      	 	
              (i)

            	
              Single
                Agreement.
                Section 1(c) is hereby amended by the adding the words “including, for the
                avoidance of doubt, the Credit Support Annex” after the words “Master
                Agreement”. 

            

    

    

    (ii)   Conditions
      Precedent. Section
      2(a)(iii) is hereby amended by adding the following at the end thereof:

    

    Notwithstanding
      anything to the contrary in Section 2(a)(iii)(1), if an Event of Default with
      respect to Party B or Potential Event of Default with respect to Party B has
      occurred and been continuing for more than 30 Local Business Days and no Early
      Termination Date in respect of the Affected Transactions has occurred or been
      effectively designated by Party A, the obligations of Party A under Section
      2(a)(i) shall cease to be subject to the condition precedent set forth in
      Section 2(a)(iii)(1) with respect to such specific occurrence of such Event
      of
      Default or such Potential Event of Default (the “Specific
      Event”);
      provided, however, for the avoidance of doubt, the obligations of Party A under
      Section 2(a)(i) shall be subject to the condition precedent set forth in Section
      2(a)(iii)(1) (subject to the foregoing) with respect to any subsequent
      occurrence of the same Event of Default with respect to Party B or Potential
      Event of Default with respect to Party B after the Specific Event has ceased
      to
      be continuing and with respect to any occurrence of any other Event of Default
      with respect to Party B or Potential Event of Default with respect to Party
      B
      that occurs subsequent to the Specific Event. 

    

    
      	 	
              (iii)

            	
              Change
                of Account.
                Section 2(b) is hereby amended by the addition of the following after
                the
                word “delivery” in the first line
                thereof:

            

    

     

    “to
      another account in the same legal and tax jurisdiction as the original
      account”.

    

    
      	 	
              (iv)

            	
              Representations.
                Section 3 is hereby amended by
                adding at the end thereof the following
                subsection (g): 

            

    

    

    
      	 	
              “(g)

            	
              Relationship
                Between Parties. 

            

    

    

    
      	 	
              (1)

            	
              Nonreliance.
                (i) It is not relying on any statement or representation of the other
                party regarding the Transaction (whether written or oral), other
                than the
                representations expressly made in this Agreement or the Confirmation
                in
                respect of that Transaction and (ii) it has consulted with its own
                legal,
                regulatory, tax, business, investment, financial and accounting advisors
                to the extent it has deemed necessary, and it has made its own investment,
                hedging and trading decisions based upon its own judgment and upon
                any
                advice from such advisors as it has deemed necessary and not upon
                any view
                expressed by the other party.

            

    

     

    
      	 	
              (2)

            	
              Evaluation
                and Understanding. (i) It has the capacity to evaluate (internally
                or
                through independent professional advice) the Transaction and has
                made its
                own decision subject to Section 6(n) of this Agreement to enter into
                the
                Transaction and (ii) It understands the terms, conditions and risks
                of the
                Transaction and is willing and able to accept those terms and conditions
                and to assume those risks, financially and otherwise.
                

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      14
      of 28

    

    
      	 	
              (3)

            	
              Purpose.
                It is entering into the Transaction for the purposes of managing
                its
                borrowings or investments, hedging its underlying assets or liabilities
                or
                in connection with a line of business.

            

    

    

    
      	 	
              (4)

            	
              Status
                of Parties. The other party is not acting as an agent, fiduciary
                or
                advisor for it in respect of the Transaction.

            

    

    

    
      	 	
              (5)

            	
              Eligible
                Contract Participant. It is an “eligible swap participant” as such term is
                defined in, Section 35.1(b)(2) of the regulations (17 C.F.R. 35)
                promulgated under, and an “eligible contract participant” as defined in
                Section 1(a)(12) of the Commodity Exchange Act, as
                amended.”

            

    

    

    
      	 	
              (v)

            	
              Cross
                Default. Section
                5(a)(vi) is hereby amended by adding at the end thereof the
                following:

            

    

    

    “provided,
      however, that, notwithstanding the foregoing, an Event of Default shall not
      occur under either (1) or (2) above if (A) (I) the default, or other similar
      event or condition referred to in (1) or the failure to pay referred to in
      (2)
      is a failure to pay or deliver caused by an error or omission of an
      administrative or operational nature, and (II) funds or the asset to be
      delivered were available to such party to enable it to make the relevant payment
      or delivery when due and (III) such payment or delivery is made within three
      (3)
      Local Business Days following receipt of written notice from an interested
      party
      of such failure to pay, or (B) such party was precluded from paying, or was
      unable to pay, using reasonable means, through the office of the party through
      which it was acting for purposes of the relevant Specified Indebtedness, by
      reason of force majeure, act of State, illegality or
      impossibility.”

    

    Transfer
      to Avoid Termination Event.
      Section
      6(b)(ii) is hereby amended by (i) deleting the words “or if a Tax Event Upon
      Merger occurs and the Burdened Party is the Affected Party,” and (ii) by
      deleting the words “to transfer” and inserting the words “to effect a Permitted
      Transfer” in lieu thereof.

    

    
      	 	
              (vi)

            	
              Jurisdiction.
                Section
                13(b) is hereby amended by: (i) deleting in the second line of
                subparagraph (i) thereof the word "non-", (ii) deleting “; and” from the
                end of subparagraph 1 and inserting “.” in lieu thereof, and (iii)
                deleting the final paragraph
                thereof.

            

    

    

    
      	 	
              (vii)

            	
              Local
                Business Day.
                The definition of Local Business Day in Section 14 is hereby amended
                by
                the addition of the words “or any Credit Support Document” after “Section
                2(a)(i)” and the addition of the words “or Credit Support Document” after
                “Confirmation”. 

            

    

    

    
      	
              (c)

            	
              Additional
                Termination Events.
                The following Additional Termination Events will
                apply:

            

    

    

    
      	 	
              (i)

            	
              First
                Rating Trigger Collateral.
                If
                (A) it is not the case that a Moody’s Second Trigger Ratings Event has
                occurred and been continuing for 30 or more Local Business Days and
                (B)
                Party
                A has failed to comply with or perform any obligation to be complied
                with
                or performed by Party A in accordance with the Credit Support Annex,
                then
                an Additional Termination Event shall have occurred with respect
                to Party
                A and Party A shall be the sole Affected Party with respect to such
                Additional Termination Event. 

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      15
      of 28

    
      	 	
              (ii)

            	
              Second
                Rating Trigger Replacement.
                If
                (A) a Required Ratings Downgrade Event has occurred and been continuing
                for 30 or more Local Business Days and (B) (i) at least one Eligible
                Replacement has made a Firm Offer to be the transferee of all of
                Party A’s
                rights and obligations under this Agreement (and such Firm Offer
                remains
                an offer that will become legally binding upon such Eligible Replacement
                upon acceptance by the offeree) and/or (ii) an Eligible Guarantor
                has made
                a Firm Offer to provide an Eligible Guarantee (and such Firm Offer
                remains
                an offer that will become legally binding upon such Eligible Guarantor
                immediately upon acceptance by the offeree), then an Additional
                Termination Event shall have occurred with respect to Party A and
                Party A
                shall be the sole Affected Party with respect to such Additional
                Termination Event. 

            

    

    

    
      	 	
              (iii)

            	
              Amendment
                of Pooling and Servicing Agreement.
                If, without the prior written consent of Party A where such consent
                is
                required under the Pooling and Servicing Agreement (such consent
                not to be
                unreasonably withheld), an amendment is made to the Pooling and Servicing
                Agreement which amendment could reasonably be expected to have a
                material
                adverse effect on the interests of Party A (excluding, for the avoidance
                of doubt, any amendment to the Pooling and Servicing Agreement that
                is
                entered into solely for the purpose of appointing a successor servicer,
                master servicer, securities administrator, trustee or other service
                provider) under this Agreement, an Additional Termination Event shall
                have
                occurred with respect to Party B and Party B shall be the sole Affected
                Party with respect to such Additional Termination Event.
                

            

    

    

    
      	 	
              (iv)

            	
              Swap
                Disclosure Event.
                If, upon the occurrence of a Swap Disclosure Event (as defined in
                Part
                5(e) below) Party A has not, within 10 days after such Swap Disclosure
                Event complied with any of the provisions set forth in Part 5(e)(iii)
                below, then an Additional Termination Event shall have occurred with
                respect to Party A and Party A shall be the sole Affected Party with
                respect to such Additional Termination
                Event.

            

    

    

    
      	 	
              (v)

            	
              Optional
                Termination of Securitization.
                An
                Additional Termination Event shall occur upon the notice to
                Certificateholders of an Optional Termination becoming unrescindable
                in
                accordance with Article X of the Pooling and Servicing Agreement
                (such
                notice, the “Optional
                Termination Notice”).
                With respect to such Additional Termination Event: (A) Party B shall
                be
                the sole Affected Party; (B) notwithstanding anything to the contrary
                in
                Section 6(b)(iv) or Section 6(c)(i), the final Distribution Date
                specified
                in the Optional Termination Notice is hereby designated as the Early
                Termination Date for this Additional Termination Event in respect
                of all
                Affected Transactions; (C) Section 2(a)(iii)(2) shall not be applicable
                to
                any Affected Transaction in
                connection with the Early Termination Date resulting from this Additional
                Termination Event; notwithstanding anything to the contrary in Section
                6(c)(ii), payments and deliveries under Section 2(a)(i) or Section
                2(e) in
                respect of the Terminated Transactions resulting from this Additional
                Termination Event will be required to be made through and including
                the
                Early Termination Date designated
                as a result of this Additional Termination Event; provided, for the
                avoidance of doubt, that any such payments or deliveries that are
                made on
                or prior to such Early Termination Date will not be treated as Unpaid
                Amounts in determining the amount payable in respect of such Early
                Termination Date; (D) notwithstanding anything to the contrary in
                Section
                6(d)(i), (I) if, no later than 4:00 pm New York City time on the
                day that
                is four Business Days prior to the final Distribution Date specified
                in
                the Optional Termination Notice, the Securities Administrator requests
                the
                amount of the Estimated Swap Termination Payment, Party A shall provide
                to
                the Securities Administrator in writing (which may be done in electronic
                format) the amount of the Estimated Swap Termination Payment no later
                than
                2:00 pm New York City time on the following Business Day and (II)
                if the
                Securities Administrator provides written notice (which may be done
                in
                electronic format) to Party A no later than two Business Days prior
                to the
                final Distribution Date specified in the Optional Termination Notice
                that
                all requirements of the Optional Termination have been met, then
                Party A
                shall, no later than one Business Day prior to the final Distribution
                Date
                specified in the Optional Termination Notice, make the calculations
                contemplated by Section 6(e) of the ISDA Master Agreement (as amended
                herein) and provide to the Securities Administrator in writing (which
                may
                be done in electronic format) the amount payable by either Party
                B or
                Party A in respect of the related Early Termination Date in
                connection with this Additional Termination Event; provided, however,
                that
                the amount payable by Party B, if any, in respect of the related
                Early
                Termination Date shall be the lesser of (x) the amount calculated
                to be
                due by Party B pursuant to Section 6(e) and (y) the Estimated Swap
                Termination Payment; and (E) notwithstanding anything to the contrary
                in
                this Agreement, any amount due from Party B to Party A in respect
                of this
                Additional Termination Event will be payable on the final Distribution
                Date specified in the Optional Termination Notice and any amount
                due from
                Party A to Party B in respect of this Additional Termination Event
                will be
                payable one Business Day prior to the final Distribution Date specified
                in
                the Optional Termination Notice.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    The
      Securities Administrator shall be an express third party beneficiary of this
      Agreement as if a party hereto to the extent of the Securities Administrator’s
      rights specified herein. 

    

    
      	
              (d)

            	
              Required
                Ratings Downgrade Event.
                In
                the event that no Relevant Entity has credit ratings at least equal
                to the
                Required Ratings Threshold (such event, a “Required
                Ratings Downgrade Event”),
                then Party A shall, as soon as reasonably practicable and so long
                as a
                Required Ratings Downgrade Event is in effect, at its own expense,
                using
                commercially reasonable efforts, procure either (A) a Permitted Transfer
                or (B) an Eligible Guarantee from an Eligible Guarantor.
                

            

    

    

    
      	
              (e)
                

            	
              Compliance
                with Regulation AB. 

            

    

    

    (i) Party
      A
      agrees and acknowledges that Ace Securities Corp. (“ACE”) is required under
      Regulation AB under the Securities Act of 1933, as amended, and the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”) (“Regulation AB”), to
      disclose certain financial information regarding Party A or its group of
      affiliated entities, if applicable, depending on the aggregate “significant
      percentage” of this Agreement and any other derivative contracts between Party A
      or its group of affiliated entities, if applicable, and Counterparty, as
      calculated from time to time in accordance with Item 1115 of Regulation
      AB.

    

    (ii) It
      shall
      be a swap disclosure event (“Swap Disclosure Event”) if, on any Business Day
      after the date hereof, ACE requests from Party A the applicable financial
      information described in Item 1115 of Regulation AB (such request to be based
      on
      a reasonable determination by ACE, in good faith, that such information is
      required under Regulation AB) (the “Swap Financial Disclosure”).

    

    (iii)
       Upon
      the
      occurrence of a Swap Disclosure Event, Party A, at its own expense, shall (1)(a)
      either (i) provide to ACE the current Swap Financial Disclosure in an
      EDGAR-compatible format (for example, such information may be provided in
      Microsoft Word® or Microsoft Excel® format but not in .pdf format) or (ii)
      provide written consent to ACE to incorporation by reference of such current
      Swap Financial Disclosure as is filed with the Securities and Exchange
      Commission in the Exchange Act Reports of ACE, (b) if applicable, cause its
      outside accounting firm to provide its consent to filing or incorporation by
      reference in the Exchange Act Reports of ACE of such accounting firm’s report
      relating to their audits of such current Swap Financial Disclosure, and (c)
      provide to ACE any updated Swap Financial Disclosure with respect to Party
      A or
      any entity that consolidates Party A within five days of the release of any
      such
      updated Swap Financial Disclosure; (2) secure another entity to replace Party
      A
      as party to this Agreement on terms substantially similar to this Agreement
      which entity (or a guarantor therefore) meets or exceeds the Approved Rating
      Thresholds and which satisfies the Rating Agency Condition and which entity
      complies with the requirements of Item 1115 of Regulation AB, including
      providing the information contemplated by Part 5(e)(iii)(1) above, or (3) obtain
      a guaranty of the Party A’s obligations under this Agreement from an affiliate
      of the Party A, subject to the Rating Agency Condition, that complies with
      the
      financial information disclosure requirements of Item 1115 of Regulation AB,
      including providing the information contemplated by Part 5(e)(iii)(1) above,
      such that disclosure provided in respect of the affiliate will satisfy any
      disclosure requirements applicable to Party A, and cause such affiliate to
      provide Swap Financial Disclosure. If permitted by Regulation AB, any required
      Swap Financial Disclosure may be provided by incorporation by reference from
      reports filed pursuant to the Exchange Act.

    

    (iv) Party
      A
      and the primary obligor under any Credit Support Document agree that, in the
      event that Party A provides Swap Financial Disclosure to ACE in accordance
      with
      Part 5(e)(iii)(a) or causes its affiliate to provide Swap Financial Disclosure
      to ACE in accordance with Part 5(e)(iii)(c), Party A and such primary obligor
      will indemnify and hold harmless ACE, its respective directors or officers
      and
      any person controlling ACE, from and against any and all losses, claims, damages
      and liabilities caused by any untrue statement or alleged untrue statement
      of a
      material fact contained in such Swap Financial Disclosure or caused by any
      omission or alleged omission to state in such Swap Financial Disclosure a
      material fact, when considered in conjunction with any other information
      regarding Party A or the derivative instrument being written by Party A in
      the
      final prospectus for ACE-2006-NC3, required to be stated therein or necessary
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    (v)
      Third
      Party Beneficiary. ACE shall be an express third party beneficiary of this
      Agreement as if a party hereto to the extent of ACE’s rights explicitly
      specified herein.

    

    
      	
              (f)

            	
              Transfers. 

            

    

     

    (i)    Section
      7
      is hereby amended to read in its entirety as follows:

     

    “Subject
      to Section 6(b)(ii), Part 5(d), Part 5(e), neither Party A nor Party B is
      permitted to assign, novate or transfer (whether by way of security or
      otherwise) as a whole or in part any of its rights, obligations or interests
      under the Agreement or any Transaction without (a) the prior written consent
      of
      the other party or (b) satisfaction of the Rating Agency Condition with respect
      to S&P and DBRS.” 

     

    
      	 	
              (ii)

            	
              If
                an Eligible Replacement has made a Firm Offer (which remains an offer
                that
                will become legally binding upon acceptance by Party B) to be the
                transferee pursuant to a Permitted Transfer, Party B shall, at Party
                A’s
                written request and at Party A’s expense, take any reasonable steps
                required to be taken by Party B to effect such transfer.
                

            

    

     

    
      	
              (g)

            	
              Non-Recourse.
                Party A acknowledges and agree that, notwithstanding any provision
                in this
                Agreement to the contrary, the obligations of Party B hereunder are
                limited recourse obligations of Party B, payable solely from the
                Supplemental Interest Trust and the proceeds thereof, in accordance
                with
                the priority of payments and other terms of the Pooling and Servicing
                Agreement and that Party A will not have any recourse to any of the
                directors, officers, employees, shareholders or affiliates of the
                Party B
                with respect to any claims, losses, damages, liabilities, indemnities
                or
                other obligations in connection with any transactions contemplated
                hereby.
                In the event that the Supplemental Interest Trust and the proceeds
                thereof, should be insufficient to satisfy all claims outstanding
                and
                following the realization of the account held by the Supplemental
                Interest
                Trust and the proceeds thereof, any claims against or obligations
                of Party
                B under the ISDA Master Agreement or any other confirmation thereunder
                still outstanding shall be extinguished and thereafter not revive.
                The
                Supplemental Interest Trust Trustee shall not have liability for
                any
                failure or delay in making a payment hereunder to Party A due to
                any
                failure or delay in receiving amounts in the account held by the
                Supplemental Interest Trust from the Trust created pursuant to the
                Pooling
                and Servicing Agreement. This provision will survive the termination
                of
                this Agreement.

            

    

    

    
      	
              (h)

            	
              Timing
                of Payments
                by Party B upon Early Termination.
                Notwithstanding anything to the contrary in Section 6(d)(ii), to
                the
                extent that all or a portion (in either case, the “Unfunded Amount”) of
                any amount that is calculated as being due in respect of any Early
                Termination Date under Section 6(e) from Party B to Party A will
                be paid
                by Party B from amounts other than any upfront payment paid to Party
                B by
                an Eligible Replacement that has entered a Replacement Transaction
                with
                Party B, then such Unfunded Amount shall be due on the next subsequent
                Distribution Date following the date on which the payment would have
                been
                payable as determined in accordance with Section 6(d)(ii), and on
                any
                subsequent Distribution Dates until paid in full (or if such Early
                Termination Date is the final Distribution Date, on such final
                Distribution Date); provided, however, that if the date on which
                the
                payment would have been payable as determined in accordance with
                Section
                6(d)(ii) is a Distribution Date, such payment will be payable on
                such
                Distribution Date.

            

    

    

    
      	
              (i)

            	
              Rating
                Agency Notifications. Notwithstanding
                any other provision of this Agreement, no Early Termination Date
                shall be
                effectively designated hereunder by Party B and no transfer of any
                rights
                or obligations under this Agreement shall be made by either party
                unless
                each Swap Rating Agency has been given prior written notice of such
                designation or transfer. 

            

    

    

    
      	
              (j)

            	
              No
                Set-off.
                Except as expressly provided for in Section 2(c), Section 6 or Part
                1(f)(i)(D) hereof, and notwithstanding any other provision of this
                Agreement or any other existing or future agreement, each party
                irrevocably waives any and all rights it may have to set off, net,
                recoup
                or otherwise withhold or suspend or condition payment or performance
                of
                any obligation between it and the other party hereunder against any
                obligation between it and the other party under any other agreements.
                Section 6(e) shall be amended by deleting the following sentence:
“The
                amount, if any, payable in respect of an Early Termination Date and
                determined pursuant to this Section will be subject to any
                Set-off.”.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
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              (k)

            	
              Amendment.
                Notwithstanding any provision to the contrary in this Agreement,
                no
                amendment of either this Agreement or any Transaction under this
                Agreement
                shall be permitted by either party unless each of the Swap Agencies
                has
                been provided prior written notice of the same and such amendment
                satisfies the Rating Agency Condition with respect to S&P and
                DBRS.

            

    

    

    
      	
              (l)

            	
              Notice
                of Certain Events or Circumstances.
                Each Party agrees, upon learning of the occurrence or existence of
                any
                event or condition that constitutes (or that with the giving of notice
                or
                passage of time or both would constitute) an Event of Default or
                Termination Event with respect to such party, promptly to give the
                other
                Party and to each Swap Rating Agency notice of such event or condition;
                provided that failure to provide notice of such event or condition
                pursuant to this Part 5(l) shall not constitute an Event of Default
                or a
                Termination Event.

            

      	 	 

      	(m)	Proceedings.
              No
              Relevant Entity shall institute against, or cause any other person
              to
              institute against, or join any other person in instituting against
              Party
              B, the Supplemental Interest Trust, or the trust formed pursuant to
              the
              Pooling and Servicing Agreement, in any bankruptcy, reorganization,
              arrangement, insolvency or liquidation proceedings or other proceedings
              under any federal or state bankruptcy or similar law for a period of
              one
              year (or, if longer, the applicable preference period) and one day
              following payment in full of the Certificates and any Notes. This
              provision will survive the termination of this
              Agreement. 

    

     

    
      	
              (n)

            	
              Supplemental
                Interest Trust Trustee Liability Limitations.
                It
                is expressly understood and agreed by the parties hereto that (a)
                this
                Agreement is executed by HSBC Bank USA, National Association (“HSBC”) not
                in its individual capacity, but solely as Supplemental Interest Trust
                Trustee under the Pooling and Servicing Agreement in the exercise
                of the
                powers and authority conferred and invested in it thereunder; (b)
                HSBC has
                been directed pursuant to the Pooling and Servicing Agreement to
                enter
                into this Agreement and to perform its obligations hereunder; (c)
                each of
                the representations, undertakings and agreements herein made on behalf
                of
                the Supplemental Interest Trust is made and intended not as personal
                representations of the Supplemental Interest Trust Trustee but is
                made and
                intended for the purpose of binding only the Supplemental Interest
                Trust;
                and (d) under no circumstances shall HSBC
                in its individual capacity be personally liable for any payments
                hereunder
                or for the breach or failure of any obligation, representation, warranty
                or covenant made or undertaken under this
                Agreement.

            

    

    

    
      	
              (o)

            	
              Severability.
                If
                any term, provision, covenant, or condition of this Agreement, or
                the
                application thereof to any party or circumstance, shall be held to
                be
                invalid or unenforceable (in whole or in part) in any respect, the
                remaining terms, provisions, covenants, and conditions hereof shall
                continue in full force and effect as if this Agreement had been executed
                with the invalid or unenforceable portion eliminated, so long as
                this
                Agreement as so modified continues to express, without material change,
                the original intentions of the parties as to the subject matter of
                this
                Agreement and the deletion of such portion of this Agreement will
                not
                substantially impair the respective benefits or expectations of the
                parties; provided, however, that this severability provision shall
                not be
                applicable if any provision of Section 2, 5, 6, or 13 (or any definition
                or provision in Section 14 to the extent it relates to, or is used
                in or
                in connection with any such Section) shall be so held to be invalid
                or
                unenforceable. 

            

    

    

    The
      parties shall endeavor to engage in good faith negotiations to replace any
      invalid or unenforceable term, provision, covenant or condition with a valid
      or
      enforceable term, provision, covenant or condition, the economic effect of
      which
      comes as close as possible to that of the invalid or unenforceable term,
      provision, covenant or condition. 

    

    
      	
              (p)

            	
              Agent
                for Party B. Party
                A acknowledges that Party B has appointed the Securities Administrator
                as
                its agent under the Pooling and Servicing Agreement to carry out
                certain
                functions on behalf of Party B, and that the Securities Administrator
                shall be entitled to give notices and to perform and satisfy the
                obligations of Party B hereunder on behalf of Party
                B.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
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              (q)

            	
              Escrow
                Payments.
                If
                (whether by reason of the time difference between the cities in which
                payments are to be made or otherwise) it is not possible for simultaneous
                payments to be made on any date on which both parties are required
                to make
                payments hereunder, either Party may at its option and in its sole
                discretion notify the other Party that payments on that date are
                to be
                made in escrow. In this case deposit of the payment due earlier on
                that
                date shall be made by 2:00 pm (local time at the place for the earlier
                payment) on that date with an escrow agent selected by the notifying
                party, accompanied by irrevocable payment instructions (i) to release
                the
                deposited payment to the intended recipient upon receipt by the escrow
                agent of the required deposit of any corresponding payment payable
                by the
                other party on the same date accompanied by irrevocable payment
                instructions to the same effect or (ii) if the required deposit of
                the
                corresponding payment is not made on that same date, to return the
                payment
                deposited to the party that paid it into escrow. The party that elects
                to
                have payments made in escrow shall pay all costs of the escrow
                arrangements.

            

    

     

    
      	
              (r)

            	
              Consent
                to Recording.
                Each party hereto consents to the monitoring or recording, at any
                time and
                from time to time, by the other party of any and all communications
                between trading, marketing, and operations personnel of the parties
                and
                their Affiliates, waives any further notice of such monitoring or
                recording, and agrees to notify such personnel of such monitoring
                or
                recording. 

            

    

    

    
      	
              (s)

            	
              Waiver
                of Jury Trial.
                Each party waives any right it may have to a trial by jury in respect
                of
                any in respect of any suit, action or proceeding relating to this
                Agreement or any Credit Support Document.

            

    

    

    
      	
              (t)

            	
              Form
                of ISDA Master Agreement. Party
                A and Party B hereby agree that the text of the body of the ISDA
                Master
                Agreement is intended to be the printed form of the ISDA Master Agreement
                (Multicurrency -
                Crossborder) as published and copyrighted in 1992 by the International
                Swaps and Derivatives Association,
                Inc.

            

    

    

    
      	
              (u)

            	
              Payment
                Instructions.
                Party A hereby agrees that, unless notified in writing by Party B
                of other
                payment instructions, any and all amounts payable by Party A to Party
                B
                under this Agreement shall be paid to the account specified in Item
                4 of
                this Confirmation, below. 

            

    

    

    
      	
              (v)

            	
              Additional
                representations.

            

    

    

    
      	 	
              (i)

            	
              Representations
                of Party A.
                Party A represents to Party B on the date on which Party A enters
                into
                each Transaction that: Party A’s obligations under this Agreement rank
                pari passu with all of Party A’s other unsecured, unsubordinated
                obligations except those obligations preferred by operation of
                law.

            

    

     

    
      	 	
              (ii)

            	
              Capacity.
                Party A represents to Party B on the date on which Party A enters
                into
                this Agreement that it is entering into the Agreement and the Transaction
                as principal and not as agent of any person. Party B represents to
                Party A
                on the date on which Party B enters into this Agreement that it is
                entering into the Agreement and the Transaction in its capacity as
                Supplemental Interest Trust
                Trustee.

            

    

     

    
      	
              (w)

            	
              Acknowledgements.

            

    

    

    
      	 	
              (i)

            	
              Substantial
                financial transactions.
                Each party hereto is hereby advised and acknowledges as of the date
                hereof
                that the other party has engaged in (or refrained from engaging in)
                substantial financial transactions and has taken (or refrained from
                taking) other material actions in reliance upon the entry by the
                parties
                into the Transaction being entered into on the terms and conditions
                set
                forth herein and in the Pooling and Servicing Agreement relating
                to such
                Transaction, as applicable. This paragraph shall be deemed repeated
                on the
                trade date of each Transaction.

            

    

     

    
      	 	
              (ii)

            	
              Bankruptcy
                Code.
                Subject to Part 5(m), without limiting the applicability if any,
                of any
                other provision of the U.S. Bankruptcy Code as amended (the “Bankruptcy
                Code”) (including without limitation Sections 362, 546, 556, and 560
                thereof and the applicable definitions in Section 101 thereof), the
                parties acknowledge and agree that all Transactions entered into
                hereunder
                will constitute “forward contracts” or “swap agreements” as defined in
                Section 101 of the Bankruptcy Code or “commodity contracts” as defined in
                Section 761 of the Bankruptcy Code, that the rights of the parties
                under
                Section 6 of this Agreement will constitute contractual rights to
                liquidate Transactions, that any margin or collateral provided under
                any
                margin, collateral, security, pledge, or similar agreement related
                hereto
                will constitute a “margin payment” as defined in Section 101 of the
                Bankruptcy Code, and that the parties are entities entitled to the
                rights
                under, and protections afforded by, Sections 362, 546, 556, and 560
                of the
                Bankruptcy Code.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page 20
      of 28

    
      	
              (x)

            	
              [Reserved]

            

    

     

    
      	
              (y)

            	
              [Reserved]

            

    

     

    (z)    Additional
      Definitions. 

     

    As
      used
      in this Agreement, the following terms shall have the meanings set forth below,
      unless the context clearly requires otherwise: 

     

    “Approved
      Ratings Threshold”
      means
      each of the S&P Approved Ratings Threshold, the Moody’s First Trigger
      Ratings Threshold, and the DBRS Approved Ratings Threshold.

    

    “Approved
      Replacement” means,
      with respect to a Market Quotation, an entity making such Market Quotation,
      which entity would satisfy conditions (a), (b), (c) and (e) of the definition
      of
      Permitted Transfer (as determined by Party B in its sole discretion, acting
      in a
      commercially reasonable manner) if such entity were a Transferee, as defined
      in
      the definition of Permitted Transfer.

    

    “DBRS”
      means
      Dominion Bond Rating Service, or any successor thereto. 

    

    “DBRS
      Approved Ratings Threshold” means,
      with respect to Party A, the guarantor under an Eligible Guarantee, or an
      Eligible Replacement, a long-term unsecured and unsubordinated debt rating
      from
      DBRS of “AA(low)” and a short-term unsecured and unsubordinated debt rating from
      DBRS of “R-1(middle)”.

    

    “DBRS
      Required Ratings Threshold” means,
      with respect to Party A, the guarantor under an Eligible Guarantee or an
      Eligible Replacement, a
      long-term unsecured and unsubordinated debt rating from DBRS of
“BBB”.

    

    “Derivative
      Provider Trigger Event”
      means
      (i) an Event of Default with respect to which Party A is a Defaulting Party,
      (ii) a Termination Event with respect to which Party A is the sole Affected
      Party or (iii) an Additional Termination Event with respect to which Party
      A is
      the sole Affected Party.

    

    “Eligible
      Guarantee”
      means an
      unconditional and irrevocable guarantee of all present and future obligations
      (for the avoidance of doubt, not limited to payment obligations) of Party A
      or
      an Eligible Replacement to Party B under this Agreement that is provided by
      an
      Eligible Guarantor as principal debtor rather than surety and that is directly
      enforceable by Party B, the form and substance of which guarantee are subject
      to
      the Rating Agency Condition with respect to S&P and DBRS, and either (A) a
      law firm has given a legal opinion confirming that none of the guarantor’s
      payments to Party B under such guarantee will be subject to Tax
      collected by withholding or
      (B)
      such guarantee provides that, in the event that any of such guarantor’s payments
      to Party B are subject to Tax collected by withholding, such guarantor is
      required to pay such additional amount as is necessary to ensure that the net
      amount actually received by Party B (free and clear of any Tax collected by
      withholding) will equal the full amount Party B would have received had no
      such
      withholding been required.

    

    “Eligible
      Guarantor” means
      an
      entity that (A) has credit ratings at least equal to the Approved Ratings
      Threshold or (B) has credit ratings at least equal to the Required Ratings
      Threshold, provided, for the avoidance of doubt, that an Eligible Guarantee
      of
      an Eligible Guarantor with credit ratings below the Approved Ratings Threshold
      will not cause a Collateral Event (as defined in the Credit Support Annex)
      not
      to occur or continue. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      21
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    “Eligible
      Replacement”
      means an
      entity (A) (i) that has credit ratings at least equal to the Approved Ratings
      Threshold, (ii) has credit ratings at least equal to the Required Ratings
      Threshold, provided, for the avoidance of doubt, that an Eligible Guarantee
      of
      an Eligible Guarantor with credit ratings below the Approved Ratings Threshold
      will not cause a Collateral Event (as defined in the Credit Support Annex)
      not
      to occur or continue, or (iii) the present and future obligations (for the
      avoidance of doubt, not limited to payment obligations) of which entity to
      Party
      B under this Agreement are guaranteed pursuant to an Eligible Guarantee provided
      by an Eligible Guarantor and (B) that has executed an Item 1115 Agreement with
      the Depositor.

    

    “Estimated
      Swap Termination Payment”
      means,
      with respect to an Early Termination Date, an amount determined by Party A
      in
      good faith and in a commercially reasonable manner as the maximum payment that
      could be owed by Party B to Party A in respect of such Early Termination Date
      pursuant to Section 6(e) of the ISDA Master Agreement, taking into account
      then
      current market conditions.

    

    “Firm
      Offer”
      means
      (A) with respect to an Eligible Replacement, a quotation from such Eligible
      Replacement (i) in an amount equal to the actual amount payable by or to Party
      B
      in consideration of an agreement between Party B and such Eligible Replacement
      to replace Party A as the counterparty to this Agreement by way of novation
      or,
      if such novation is not possible, an agreement between Party B and such Eligible
      Replacement to enter into a Replacement Transaction (assuming that all
      Transactions hereunder become Terminated Transactions), and (ii) that
      constitutes an offer by such Eligible Replacement to replace Party A as the
      counterparty to this Agreement or enter a Replacement Transaction that will
      become legally binding upon such Eligible Replacement upon acceptance by Party
      B, and (B) with respect to an Eligible Guarantor, an offer by such Eligible
      Guarantor to provide an Eligible Guarantee that will become legally binding
      upon
      such Eligible Guarantor upon acceptance by the offeree.

    

    “Moody’s”
      means
      Moody’s Investors Service, Inc., or any successor thereto. 

    

    “Moody’s
      First Trigger Ratings Threshold” means,
      with respect to Party A, the guarantor under an Eligible Guarantee or an
      Eligible Replacement, (i) if such entity has a short-term unsecured and
      unsubordinated debt rating from Moody’s, a long-term unsecured and
      unsubordinated debt rating or counterparty rating from Moody’s of “A2” and a
      short-term unsecured and unsubordinated debt rating from Moody’s of “Prime-1”,
      or (ii) if such entity does not have a short-term unsecured and unsubordinated
      debt rating or counterparty rating from Moody’s, a long-term unsecured and
      unsubordinated debt rating or counterparty rating from Moody’s of
“A1”.

    

    “Moody’s
      Second Trigger Ratings Event”
      means
      that no Relevant Entity has credit ratings from Moody’s at least equal to the
      Moody’s Second Trigger Rating Threshold. 

    

    “Moody’s
      Second Trigger Ratings Threshold”
      means,
      with respect to Party A, the guarantor under an Eligible Guarantee or an
      Eligible Replacement, (i) if such entity has a short-term unsecured and
      unsubordinated debt rating from Moody’s, a long-term unsecured and
      unsubordinated debt rating or counterparty rating from Moody’s of “A3” and a
      short-term unsecured and unsubordinated debt rating from Moody’s of “Prime-2”,
      or (ii) if such entity does not have a short-term unsecured and unsubordinated
      debt rating from Moody’s, a long-term unsecured and unsubordinated debt rating
      or counterparty rating from Moody’s of “A3”.

    

    “Permitted
      Transfer” means
      a
      transfer by novation by Party A to a transferee (the “Transferee”)
      of all,
      but not less than all, of Party A’s rights, liabilities, duties and obligations
      under this Agreement, with
      respect to which transfer each of the following conditions is
      satisfied:
      (a) the
      Transferee is an Eligible Replacement that is a recognized dealer in interest
      rate swaps organized under the laws of the United States of America or a
      jurisdiction located in the United States of America (or another jurisdiction
      reasonably acceptable to Party B), (b) as of the date of such transfer the
      Transferee would not be required to withhold or deduct on account of Tax from
      any payments under this Agreement or would be required to gross up for such
      Tax
      under Section 2(d)(i)(4), (c) an Event of Default or Termination Event would
      not
      occur as a result of such transfer, (d) Party B has consented in writing to
      the
      transfer, such consent not to be unreasonably withheld, (e) the transfer would
      not give rise to a taxable event or any other adverse Tax consequences to Party
      B or its interest holders, as determined by Party B in its sole discretion,
      (f)
      pursuant to a written instrument (the “Transfer
      Agreement”),
      the
      Transferee acquires and assumes all rights and obligations of Party A under
      the
      Agreement and the relevant Transaction, (g) Party B shall have determined,
      in
      its sole discretion, acting in a commercially reasonable manner, that such
      Transfer Agreement is effective to transfer to the Transferee all, but not
      less
      than all, of Party A’s rights and obligations under the Agreement and all
      relevant Transactions; (h) Party A will be responsible for any costs or expenses
      incurred in connection with such transfer (including any replacement cost of
      entering into a replacement transaction); (i) either (A) Moody’s has been given
      prior written notice of such transfer and the Rating Agency Condition is
      satisfied with respect to S&P and DBRS or (B) each Swap Rating Agency has
      been given prior written notice of such transfer and such transfer is in
      connection with the assignment and assumption of this Agreement without
      modification of its terms, other than party names, dates relevant to the
      effective date of such transfer, tax representations (provided that the
      representations in Part 2(a)(i) are not modified) and any other representations
      regarding the status of the substitute counterparty of the type included in
      Part
      5(b)(iv), Part 5(v)(i)(2) or Part 5(v)(ii), notice information and account
      details; and (j) such transfer otherwise complies with the terms of the Pooling
      and Servicing Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      22
      of 28

    “Rating
      Agency Condition”
      means,
      with respect to any particular proposed act or omission to act hereunder and
      each Swap Rating Agency specified in connection with such proposed act or
      omission, that the party acting or failing to act must consult with each of
      the
      specified Swap Rating Agencies and receive from each such Swap Rating Agency
      a
      prior written confirmation that the proposed action or inaction would not cause
      a downgrade or withdrawal of the then-current rating of any Certificates or
      Notes.

    

    “Relevant
      Entity” means
      Party A and, to the extent applicable, a guarantor under an Eligible
      Guarantee.

    

    “Replacement
      Transaction”
      means,
      with respect to any Terminated Transaction or group of Terminated Transactions,
      a transaction or group of transactions that (i) would have the effect of
      preserving for Party B the economic equivalent of any payment or delivery
      (whether the underlying obligation was absolute or contingent and assuming
      the
      satisfaction of each applicable condition precedent) by the parties under
      Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated
      Transactions that would, but for the occurrence of the relevant Early
      Termination Date, have been required after that Date, and (ii) has terms which
      are substantially the same as this Agreement, including, without limitation,
      rating triggers, Regulation AB compliance, and credit support documentation,
      save for the exclusion of provisions relating to Transactions that are not
      Terminated Transaction, as determined by Party B in its sole discretion, acting
      in a commercially reasonable manner.

    

    “Required
      Ratings Downgrade Event”
      shall
      have the meaning assigned thereto in Part 5(d).

    

    “Required
      Ratings Threshold” means
      each of the S&P Required Ratings Threshold, the Moody’s Second Trigger
      Ratings Threshold, and the DBRS Required Ratings Threshold.

    

    “S&P”
      means
      Standard & Poor's Rating Services, a division of The McGraw-Hill Companies,
      Inc., or any successor thereto. 

    

    “S&P
      Approved Ratings Threshold”
      means,
      with respect to Party A, the guarantor under an Eligible Guarantee or an
      Eligible Replacement, a short-term unsecured and unsubordinated debt rating
      from
      S&P of “A-1”, or, if such entity does not have a short-term unsecured and
      unsubordinated debt rating from S&P, a long-term unsecured and
      unsubordinated debt rating from S&P of “A+”.

    

    “S&P/DBRS
      Required Ratings Downgrade Event”
      means
      that no Relevant Entity has credit ratings at least equal to the S&P
      Required Ratings Threshold and the DBRS Required Ratings Threshold.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      23
      of 28

    “S&P
      Required Ratings Threshold”
      means,
      with respect to Party A, the guarantor under an Eligible Guarantee or an
      Eligible Replacement, a long-term unsecured and unsubordinated debt rating
      from
      S&P of “BBB+”. 

    

    “Swap
      Rating Agencies”
      means,
      with respect to any date of determination, each of S&P, Moody’s, and DBRS,
      to the extent that each such rating agency is then providing a rating for any
      of
      the ACE Securities Corp. Home Equity Loan Trust, Series 2006-NC3, Asset Backed
      Pass-Through Certificates (the “Certificates”) or any notes backed by the
      Certificates (the “Notes”).

     

    [Remainder
      of this page intentionally left blank.]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      24
      of 28

    4.   Account
      Details and Settlement Information:  

     

    
      	
              Payments
                to Party A:

            	Deutsche Bank Trust Company
              Americas, New York
              Acct#
                01 473 969 

              Swift
                Code: BKTRUS33

              Global
                No. N512063N

            
	 	 
	
              Payments
                to Party B:

            	Wells Fargo Bank, N.A.
              ABA
                # 121000248

              Account
                Name: SAS Clearing

              Account
                Number: 3970771416

              FFC
                to: Supplemental Fund, Acct # 50969402

            
	 	 

    

    This
      Agreement may be executed in several counterparts, each of which shall be deemed
      an original but all of which together shall constitute one and the same
      instrument.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      25
      of 28

    

    We
      are
      very pleased to have executed this Transaction with you and we look forward
      to
      completing other transactions with you in the near future.

    

    Very
      truly yours,

    

    DEUTSCHE
      BANK AG - New York Branch

     

    By:   _/s/
      Diane Anderson___________

    Name
      Diane Anderson

    Title:
      Assistant Vice President

    

    By:   _/s/_Mathew_Hoff______________

    Name
      Mathew_Hoff

    Title:
      Assistant Vice President

    

    Party
      B,
      acting through its duly authorized signatory, hereby agrees to, accepts and
      confirms the terms of the foregoing as of the date hereof.

    

    HSBC
      Bank
      USA, National Association, not in its individual capacity, but solely as trustee
      for the supplemental interest trust created pursuant to the Pooling and
      Servicing Agreement, with respect to the
      ACE
      Securities Corp. Home Equity Loan Trust, Series 2006-NC3, Asset Backed
      Pass-Through Certificates 

    

    

    By:   _/s/
      Fernando Acedebo ___________

    Name:
      Fernando Acedebo

    Title:
      Vice President

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      Page
        26
        of 28

    SCHEDULE
      I

    (all
      such
      dates subject to No Adjustment with respect to Fixed Rate Payer Period End
      Dates
      and adjustment in accordance with the Following Business Day Convention with
      respect to Floating Rate Payer Period End Dates) 

    

    
      	 	 	 
	
              From
                and including

            	
              To
                but excluding

            	
              Notional
                Amount (USD)

            
	
              Effective
                Date

            	
              December
                25, 2006

            	
              1,501,392,227.00

            
	
              December
                25, 2006

            	
              January
                25, 2007

            	
              1,481,885,690.00

            
	
              January
                25, 2007

            	
              February
                25, 2007

            	
              1,458,448,790.00

            
	
              February
                25, 2007

            	
              March
                25, 2007

            	
              1,431,130,769.00

            
	
              March
                25, 2007

            	
              April
                25, 2007

            	
              1,400,011,442.00

            
	
              April
                25, 2007

            	
              May
                25, 2007

            	
              1,365,201,808.00

            
	
              May
                25, 2007

            	
              June
                25, 2007

            	
              1,326,844,310.00

            
	
              June
                25, 2007

            	
              July
                25, 2007

            	
              1,285,113,062.00

            
	
              July
                25, 2007

            	
              August
                25, 2007

            	
              1,240,219,930.00

            
	
              August
                25, 2007

            	
              September
                25, 2007

            	
              1,192,463,383.00

            
	
              September
                25, 2007

            	
              October
                25, 2007

            	
              1,143,873,010.00

            
	
              October
                25, 2007

            	
              November
                25, 2007

            	
              1,097,238,688.00

            
	
              November
                25, 2007

            	
              December
                25, 2007

            	
              1,052,514,433.00

            
	
              December
                25, 2007

            	
              January
                25, 2008

            	
              1,009,621,662.00

            
	
              January
                25, 2008

            	
              February
                25, 2008

            	
              968,485,041.00

            
	
              February
                25, 2008

            	
              March
                25, 2008

            	
              929,032,344.00

            
	
              March
                25, 2008

            	
              April
                25, 2008

            	
              891,194,329.00

            
	
              April
                25, 2008

            	
              May
                25, 2008

            	
              854,904,616.00

            
	
              May
                25, 2008

            	
              June
                25, 2008

            	
              820,099,561.00

            
	
              June
                25, 2008

            	
              July
                25, 2008

            	
              786,581,316.00

            
	
              July
                25, 2008

            	
              August
                25, 2008

            	
              753,687,672.00

            
	
              August
                25, 2008

            	
              September
                25, 2008

            	
              702,822,618.00

            
	
              September
                25, 2008

            	
              October
                25, 2008

            	
              607,809,290.00

            
	
              October
                25, 2008

            	
              November
                25, 2008

            	
              527,947,624.00

            
	
              November
                25, 2008

            	
              December
                25, 2008

            	
              461,453,102.00

            
	
              December
                25, 2008

            	
              January
                25, 2009

            	
              414,271,641.00

            
	
              January
                25, 2009

            	
              February
                25, 2009

            	
              396,029,563.00

            
	
              February
                25, 2009

            	
              March
                25, 2009

            	
              378,902,623.00

            
	
              March
                25, 2009

            	
              April
                25, 2009

            	
              362,533,848.00

            
	
              April
                25, 2009

            	
              May
                25, 2009

            	
              346,896,217.00

            
	
              May
                25, 2009

            	
              June
                25, 2009

            	
              331,948,134.00

            
	
              June
                25, 2009

            	
              July
                25, 2009

            	
              317,658,473.00

            
	
              July
                25, 2009

            	
              August
                25, 2009

            	
              303,997,647.00

            
	
              August
                25, 2009

            	
              September
                25, 2009

            	
              290,937,478.00

            
	
              September
                25, 2009

            	
              October
                25, 2009

            	
              278,451,524.00

            
	
              October
                25, 2009

            	
              November
                25, 2009

            	
              266,514,484.00

            
	
              November
                25, 2009

            	
              December
                25, 2009

            	
              255,100,696.00

            
	
              December
                25, 2009

            	
              January
                25, 2010

            	
              244,186,720.00

            
	
              January
                25, 2010

            	
              February
                25, 2010

            	
              233,750,210.00

            
	
              February
                25, 2010

            	
              March
                25, 2010

            	
              223,769,855.00

            
	
              March
                25, 2010

            	
              April
                25, 2010

            	
              214,225,420.00

            
	
              April
                25, 2010

            	
              May
                25, 2010

            	
              205,097,484.00

            
	
              May
                25, 2010

            	
              June
                25, 2010

            	
              196,367,315.00

            
	
              June
                25, 2010

            	
              July
                25, 2010

            	
              188,017,206.00

            
	
              July
                25, 2010

            	
              August
                25, 2010

            	
              180,030,254.00

            
	
              August
                25, 2010

            	
              September
                25, 2010

            	
              172,390,326.00

            
	
              September
                25, 2010

            	
              October
                25, 2010

            	
              165,082,029.00

            
	
              October
                25, 2010

            	
              November
                25, 2010

            	
              158,090,649.00

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page 27
      of 28

    

    
      	 	 	 
	
              November
                25, 2010

            	
              December
                25, 2010

            	
              151,402,131.00

            
	
              December
                25, 2010

            	
              January
                25, 2011

            	
              145,003,066.00

            
	
              January
                25, 2011

            	
              February
                25, 2011

            	
              138,880,652.00

            
	
              February
                25, 2011

            	
              March
                25, 2011

            	
              133,022,664.00

            
	
              March
                25, 2011

            	
              April
                25, 2011

            	
              127,417,426.00

            
	
              April
                25, 2011

            	
              May
                25, 2011

            	
              122,053,792.00

            
	
              May
                25, 2011

            	
              June
                25, 2011

            	
              116,921,113.00

            
	
              June
                25, 2011

            	
              July
                25, 2011

            	
              112,009,223.00

            
	
              July
                25, 2011

            	
              August
                25, 2011

            	
              107,308,372.00

            
	
              August
                25, 2011

            	
              September
                25, 2011

            	
              102,809,260.00

            
	
              September
                25, 2011

            	
              October
                25, 2011

            	
              98,498,559.00

            
	
              October
                25, 2011

            	
              November
                25, 2011

            	
              94,371,455.00

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page
      28
      of 28

    Annex
      A

    

    Paragraph
      13 of the Credit Support Annex

    

    ANNEX
      A

    

    ISDA®

    CREDIT
      SUPPORT ANNEX

    to
      the
      Schedule to the

    ISDA
      Master Agreement

    dated
      as
      of November 30, 2006 between

    

    Deutsche
      Bank, AG - New York Branch (hereinafter referred to as “Party
      A”
      or
“Pledgor”)

    

    and

    

    HSBC
      Bank
      USA, National Association, not in its individual capacity, but solely as trustee
      (the “Supplemental Interest Trust Trustee”) for the supplemental interest trust
      created pursuant to the Pooling and Servicing Agreement, with respect to the
      ACE
      Securities Corp. Home Equity Loan Trust, Series 2006-NC3, Asset Backed
      Pass-Through Certificates (the “Supplemental Interest Trust”) 

     

    (hereinafter
      referred to as “Party
      B”
      or
“Secured
      Party”).

    

    For
      the
      avoidance of doubt, and notwithstanding anything to the contrary that may be
      contained in the Agreement, this Credit Support Annex shall relate solely to
      the
      Transaction documented in the Confirmation dated November 30, 2006, between
      Party A and Party B, Reference Number N533634N.

     

    Paragraph
      13. Elections and Variables.

     

    
      	
              (a)

            	
              Security
                Interest for “Obligations”.
                The term “Obligations”
                as
                used in this Annex includes the following additional
                obligations:

            

    

     

    With
      respect to Party A: not applicable.

     

    With
      respect to Party B: not applicable.

     

    
      	
              (b)

            	
              Credit
                Support Obligations.

            

    

     

    
      	 	
              (i)

            	
              Delivery
                Amount, Return Amount and Credit Support
                Amount.

            

    

     

    
      	 	
              (A)

            	
              “Delivery
                Amount”
                has the meaning specified in Paragraph 3(a) as amended (I) by deleting
                the
                words “upon a demand made by the Secured Party on or promptly following
                a
                Valuation Date” and inserting in lieu thereof the words “not later than
                the close of business on each Valuation Date” and (II) by deleting in its
                entirety the sentence beginning “Unless otherwise specified in Paragraph
                13” and ending “(ii) the Value as of that Valuation Date of all Posted
                Credit Support held by the Secured Party.” and inserting in lieu thereof
                the following:

            

    

     

    The
      “Delivery
      Amount”
      applicable to the Pledgor for any Valuation Date will equal the greatest of
      

     

    
      	 	
              (1)
                

            	
              the
                amount by which (a) the S&P/DBRS Credit Support Amount for such
                Valuation Date exceeds (b) the S&P/DBRS Value as of such Valuation
                Date of all Posted Credit Support held by the Secured Party,
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              (2)
                

            	
              the
                amount by which (a) the Moody’s First Trigger Credit Support Amount for
                such Valuation Date exceeds (b) the Moody’s First Trigger Value as of such
                Valuation Date of all Posted Credit Support held by the Secured Party,
                and

            

    

     

    
      	 	
              (3)
                

            	
              the
                amount by which (a) the Moody’s Second Trigger Credit Support Amount for
                such Valuation Date exceeds (b) the Moody’s Second Trigger Value as of
                such Valuation Date of all Posted Credit Support held by the Secured
                Party.

            

    

     

    
      	 	
              (B)

            	
              “Return
                Amount”
                has the meaning specified in Paragraph 3(b) as amended by deleting
                in its
                entirety the sentence beginning “Unless otherwise specified in Paragraph
                13” and ending “(ii) the Credit Support Amount.” and inserting in lieu
                thereof the following:

            

    

     

    The
      “Return
      Amount”
      applicable to the Secured Party for any Valuation Date will equal the least
      of

     

    
      	 	
              (1)
                

            	
              the
                amount by which (a) the S&P/DBRS Value as of such Valuation Date of
                all Posted Credit Support held by the Secured Party exceeds (b) the
                S&P/DBRS Credit Support Amount for such Valuation Date,
                

            

    

     

    
      	 	
              (2)
                

            	
              the
                amount by which (a) the Moody’s First Trigger Value as of such Valuation
                Date of all Posted Credit Support held by the Secured Party exceeds
                (b)
                the Moody’s First Trigger Credit Support Amount for such Valuation Date,
                and

            

    

     

    
      	 	
              (3)
                

            	
              the
                amount by which (a) the Moody’s Second Trigger Value as of such Valuation
                Date of all Posted Credit Support held by the Secured Party exceeds
                (b)
                the Moody’s Second Trigger Credit Support Amount for such Valuation
                Date.

            

    

     

    
      	 	
              (C)

            	
              “Credit
                Support Amount”
                shall not apply. For purposes of calculating any Delivery Amount
                or Return
                Amount for any Valuation Date, reference shall be made to the S&P/DBRS
                Credit Support Amount, the Moody’s First Trigger Credit Support Amount, or
                the Moody’s Second Trigger Credit Support Amount, in each case for such
                Valuation Date, as provided in Paragraphs 13(b)(i)(A) and 13(b)(i)(B),
                above.

            

    

     

    
      	 	
              (ii)

            	
              Eligible
                Collateral.
                

            

    

     

    On
      any
      date, the following items will qualify as “Eligible
      Collateral”
(for
      the avoidance of doubt, all Eligible Collateral to be denominated in
      USD):

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
               

              Collateral

            	
              S&P/

              DBRS

              Valuation
                

              Percentage

            	
              Moody’s
                

              First

              Trigger

              Valuation

              Percentage

            	
              Moody’s
                

              Second
                Trigger

              Valuation

              Percentage

            
	 	 	 	 
	
              (A)     
                Cash

            	
              100%

            	
              100%

            	
              100%

            
	 	 	 	 
	
              (B)    
                Fixed-rate
                negotiable debt obligations issued by the U.S. Treasury Department
                having
                a remaining maturity on such date of not more than one
                year

            	
              98.5%

            	
              100%

            	
              100%

            
	 	 	 	 
	
              (C)    
                Fixed-rate
                negotiable debt obligations issued by the U.S. Treasury Department
                having
                a remaining maturity on such date of more than one year but not more than
                ten years

            	
              89.9%

            	
              100%

            	
              94%

            
	 	 	 	 
	
              (D)    
                Fixed-rate
                negotiable debt obligations issued by the U.S. Treasury Department
                having
                a remaining maturity on such date of more than ten years

            	
              83.9%

            	
              100%

            	
              87%

            

    

     

    
      	 	
              (iii)

            	
              Other
                Eligible Support. 

            

    

     

    The
      following items will qualify as “Other
      Eligible Support”
      for the
      party specified: 

     

    Not
      applicable.

     

    
      	 	
              (iv)

            	
              Threshold.

            

    

     

    
      	 	
              (A)

            	
              “Independent
                Amount”
                means zero with respect to Party A and Party
                B.

            

    

     

    
      	 	
              (B)

            	
              “Threshold”
                means, with respect to Party A and any Valuation Date, zero if (i)
                a
                Collateral Event has occurred and has been continuing (x) for at
                least 30
                days or (y) since this Annex was executed, or (ii) a S&P/DBRS Required
                Ratings Downgrade Event has occurred and is continuing; otherwise,
                infinity.

            

      	 	 	 

      	 	 	
               “Threshold”
                means, with respect to Party B and any Valuation Date,
                infinity.

            

    

     

    
      	 	
              (C)

            	
              “Minimum
                Transfer Amount” means
                USD 100,000 with respect to Party A and Party B; provided, however,
                that
                if the aggregate Certificate Principal Balance and Note Principal
                Balance
                of Certificates and Notes rated by S&P ceases to be more than USD
                50,000,000, the “Minimum
                Transfer Amount”
                shall be USD 50,000.

            

    

     

    
      	 	
              (D)

            	
              Rounding:
                The Delivery Amount will be rounded up to the nearest integral multiple
                of
                USD 10,000. The Return Amount will be rounded down to the nearest
                integral
                multiple of USD 1,000.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
              (c)

            	
              Valuation
                and Timing.

            

    

     

    
      	 	
              (i)

            	
              “Valuation
                Agent”
                means Party A; provided, however, that if an Event of Default shall
                have
                occurred with respect to which Party A is the Defaulting Party, Party
                B
                shall have the right to designate as Valuation Agent an independent
                party,
                reasonably acceptable to Party A, the cost for which shall be borne
                by
                Party A. All calculations by the Valuation Agent must be made in
                accordance with standard market practice, including, in the event
                of a
                dispute as to the Value of any Eligible Credit Support or Posted
                Credit
                Support, by making reference to quotations received by the Valuation
                Agent
                from one or more Pricing Sources.

            

    

     

    
      	 	
              (ii)

            	
              “Valuation
                Date” means
                the first Local Business Day in each week on which any of the S&P/DBRS
                Credit Support Amount, the Moody’s First Trigger Credit Support Amount or
                the Moody’s Second Trigger Credit Support Amount is greater than
                zero.

            

    

     

    
      	 	
              (iii)

            	
              “Valuation
                Time” means
                the close of business in the city of the Valuation Agent on the Local
                Business Day immediately preceding the Valuation Date or date of
                calculation, as applicable; provided
                that the calculations of Value and Exposure will be made as of
                approximately the same time on the same date.

            

    

     

    
      	 	
              (iv)

            	
              “Notification
                Time” means
                11:00 a.m., New York time, on a Local Business Day.
                

            

    

     

    
      	 	
              (v)

            	
              External
                Verification. 
                Notwithstanding anything to the contrary in the definitions of Valuation
                Agent or Valuation Date, at any time at which Party A (or, to the
                extent
                applicable, its Credit Support Provider) does not have a long-term
                unsubordinated and unsecured debt rating of at least “BBB+” from S&P,
                the Valuation Agent shall (A) calculate the Secured Party’s Exposure and
                the S&P Value of Posted Credit Suppport on each Valuation Date based
                on internal marks and (B) verify such calculations with external
                marks
                monthly by obtaining on the last Local Business Day of each calendar
                month
                two external marks for each Transaction to which this Annex relates
                and
                for all Posted Credit Suport; such verification of the Secured Party’s
                Exposure shall be based on the higher of the two external marks.
                Each
                external mark in respect of a Transaction shall be obtained from
                an
                independent Reference Market-maker that would be eligible and willing
                to
                enter into such Transaction in the absence of the current derivative
                provider, provided that an external mark may not be obtained from
                the same
                Reference Market-maker more than four times in any 12-month period.
                The
                Valuation Agent shall obtain these external marks directly or through
                an
                independent third party, in either case at no cost to Party B. The
                Valuation Agent shall calculate on each Valuation Date (for purposes
                of
                this paragraph, the last Local Business Day in each calendar month
                referred to above shall be considered a Valuation Date) the Secured
                Party’s Exposure based on the greater of the Valuation Agent’s internal
                marks and the external marks received. If the S&P Value on any such
                Valuation Date of all Posted Credit Support then held by the Secured
                Party
                is less than the S&P Credit Support Amount on such Valuation Date (in
                each case as determined pursuant to this paragraph), Party A shall,
                within
                three Local Business Days of such Valuation Date, Transfer to the
                Secured
                Party Eligible Credit Support having an S&P Value as of the date of
                Transfer at least equal to such deficiency.

            

    

     

    
      	 	
              (vi)

            	
              Notice
                to S&P.
                At
                any time at which Party A (or, to the extent applicable, its Credit
                Support Provider) does not have a long-term unsubordinated and unsecured
                debt rating of at least “BBB+” from S&P, the Valuation Agent shall
                provide to S&P not later than the Notification Time on the Local
                Business Day following each Valuation Date its calculations of the
                Secured
                Party’s Exposure and the S&P Value of any Eligible Credit Support or
                Posted Credit Support for that Valuation Date. The Valuation Agent
                shall
                also provide to S&P any external marks received pursuant to the
                preceding paragraph.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
              (d)

            	
              Conditions
                Precedent and Secured Party’s Rights and
                Remedies.
                The following Termination Events will be a “Specified
                Condition”
                for the party specified (that party being the Affected Party if the
                Termination Event occurs with respect to that party): With respect
                to
                Party A: any Additional Termination Event with respect to which Party
                A is
                the sole Affected Party. With respect to Party B:
                None.

            

    

     

    
      	
              (e)

            	
              Substitution.

            

    

     

    
      	 	
              (i)

            	
              “Substitution
                Date”
                has the meaning specified in Paragraph
                4(d)(ii).

            

    

     

    
      	 	
              (ii)

            	
              Consent.
                If
                specified here as applicable, then the Pledgor must obtain the Secured
                Party’s consent for any substitution pursuant to Paragraph 4(d):
                Inapplicable.

            

    

     

    
      	
              (f)

            	
              Dispute
                Resolution.

            

    

     

    
      	 	
              (i)

            	
              “Resolution
                Time”
                means 1:00 p.m. New York time on the Local Business Day following
                the date
                on which the notice of the dispute is given under Paragraph
                5.

            

    

     

    
      	 	
              (ii)

            	
              Value.
                Notwithstanding anything to the contrary in Paragraph 12, for the
                purpose
                of Paragraphs 5(i)(C) and 5(ii), the S&P/DBRS Value, Moody’s First
                Trigger Value, and Moody’s Second Trigger Value, on any date, of Eligible
                Collateral other than Cash will be calculated as follows:
                

            

    

     

    For
      Eligible Collateral in the form of securities listed in Paragraph 13(b)(ii):
      the
      sum of (A) the product of (1)(x) the bid price at the Valuation Time for such
      securities on the principal national securities exchange on which such
      securities are listed, or (y) if such securities are not listed on a national
      securities exchange, the bid price for such securities quoted at the Valuation
      Time by any principal market maker for such securities selected by the Valuation
      Agent, or (z) if no such bid price is listed or quoted for such date, the bid
      price listed or quoted (as the case may be) at the Valuation Time for the day
      next preceding such date on which such prices were available and (2) the
      applicable Valuation Percentage for such Eligible Collateral, and (B) the
      accrued interest on such securities (except to the extent Transferred to the
      Pledgor pursuant to Paragraph 6(d)(ii) or included in the applicable price
      referred to in the immediately preceding clause (A)) as of such
      date.

     

    
      	 	
              (iii)

            	
              Alternative.
                The provisions of Paragraph 5 will
                apply.

            

    

     

    
      	
              (g)

            	
              Holding
                and Using Posted
                Collateral.

            

    

     

    
      	 	
              (i)

            	
              Eligibility
                to Hold Posted Collateral; Custodians.  Party
                B (or any Custodian) will be entitled to hold Posted Collateral pursuant
                to Paragraph 6(b). 

            

    

     

    Party
      B
      may appoint as Custodian (A) the entity then serving as Securities Adminstrator
      or (B) any entity other than the entity then serving as Securities Administrator
      if such other entity (or, to the extent applicable, its parent company or credit
      support provider) shall then have a short-term unsecured and unsubordinated
      debt
      rating from S&P of at least “A-1.”

     

    Initially,
      the Custodian
      for
      Party B is: the Securities Administrator.

     

    
      	 	
              (ii)

            	
              Use
                of Posted Collateral. The
                provisions of Paragraph 6(c)(i) will not apply to Party B, but the
                provisions of Paragraph 6(c)(ii) will apply to Party B.
                

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
              (h)

            	
              Distributions
                and Interest Amount.

            

    

     

    
      	 	
              (i)

            	
              Interest
                Rate.
                The “Interest
                Rate”
                will be the actual interest rate earned on Posted Collateral in the
                form
                of Cash that is held by Party B or its
                Custodian.

            

    

     

    
      	 	
              (ii)

            	
              Transfer
                of Interest Amount.
                The Transfer of the Interest Amount will be made on the second Local
                Business Day following the end of each calendar month and on any
                other
                Local Business Day on which Posted Collateral in the form of Cash
                is
                Transferred to the Pledgor pursuant to Paragraph 3(b); provided,
                however,
                that the obligation of Party B to Transfer any Interest Amount to
                Party A
                shall be limited to the extent that Party B has earned and received
                such
                funds and such funds are available to Party B.

            

    

     

    
      	 	
              (iii)

            	
              Alternative
                to Interest Amount.
                The provisions of Paragraph 6(d)(ii) will
                apply.

            

    

     

    
      	
              (i)

            	
              Additional
                Representation(s).
                There are no additional representations by either
                party.

            

    

     

    
      	
              (j)

            	
              Other
                Eligible Support and Other Posted Support.

            

    

     

    
      	 	
              (i)

            	
              “Value”
                with respect to Other Eligible Support and Other Posted Support means:
                not
                applicable. 

            

    

     

    
      	 	
              (ii)

            	
              “Transfer”
                with respect to Other Eligible Support and Other Posted Support means:
                not
                applicable.

            

    

     

    
      	
              (k)

            	
              Demands
                and Notices.All
                demands, specifications and notices under this Annex will be made
                pursuant
                to the Notices Section of this Agreement, except that any demand,
                specification or notice shall be given to or made at the following
                addresses, or at such other address as the relevant party may from
                time to
                time designate by giving notice (in accordance with the terms of
                this
                paragraph) to the other party:

            

    

     

    If
      to
      Party A, at the address specified pursuant to the Notices Section of this
      Agreement.

     

    If
      to
      Party B, at the address specified pursuant to the Notices Section of this
      Agreement.

     

    If
      to
      Party B’s Custodian: the Supplemental Interest Trust Trustee.

     

    
      	
              (l)

            	
              Address
                for Transfers.
                Each Transfer hereunder shall be made to the address specified below
                or to
                an address specified in writing from time to time by the party to
                which
                such Transfer will be made.

            

    

     

    Party
      A
      account
      details:         Deutsche
      Bank Trust Company Americas, New York

    Acct#
      01
      473 969 

    Swift
      Code: BKTRUS33

    Global
      No. N512063N

     

    Party
      B’s
      Custodian account details: 

     

    Wells
      Fargo Bank, N.A.

    ABA
      #
      121000248

    Account
      Name: SAS Clearing

    Account
      Number: 3970771416

    FFC
      to:
      Supplemental Fund, Acct # 50969403

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
              (m)

            	
              Other
                Provisions.

            

    

     

    
      	 	
              (i)

            	
              Collateral
                Account.
                Party B shall open and maintain a segregated account, which shall
                be an
                Eligible Account, and hold, record and identify all Posted Collateral
                in
                such segregated account.

            

    

     

    
      	 	
              (ii)

            	
              Agreement
                as to Single Secured Party and Single Pledgor.
                Party A and Party B hereby agree that, notwithstanding anything to
                the
                contrary in this Annex, (a) the term “Secured Party” as used in this Annex
                means only Party B, (b) the term “Pledgor” as used in this Annex means
                only Party A, (c) only Party A makes the pledge and grant in Paragraph
                2,
                the acknowledgement in the final sentence of Paragraph 8(a) and the
                representations in Paragraph 9.

            

    

     

    
      	 	
              (iii)

            	
              Calculation
                of Value.
                Paragraph 4(c) is hereby amended by deleting the word “Value” and
                inserting in lieu thereof “S&P/DBRS Value, Moody’s First Trigger
                Value, Moody’s Second Trigger Value”. Paragraph 4(d)(ii) is hereby amended
                by (A) deleting the words “a Value” and inserting in lieu thereof “an
                S&P/DBRS Value, Moody’s First Trigger Value, and Moody’s Second
                Trigger Value” and (B) deleting the words “the Value” and inserting in
                lieu thereof “S&P/DBRS Value, Moody’s First Trigger Value, and Moody’s
                Second Trigger Value”. Paragraph 5 (flush language) is hereby amended by
                deleting the word “Value” and inserting in lieu thereof “S&P/DBRS
                Value, Moody’s First Trigger Value, or Moody’s Second Trigger Value”.
                Paragraph 5(i) (flush language) is hereby amended by deleting the
                word
                “Value” and inserting in lieu thereof “S&P/DBRS Value, Moody’s First
                Trigger Value, and Moody’s Second Trigger Value”. Paragraph 5(i)(C) is
                hereby amended by deleting the word “the Value, if” and inserting in lieu
                thereof “any one or more of the S&P/DBRS Value, Moody’s First Trigger
                Value, or Moody’s Second Trigger Value, as may be”. Paragraph 5(ii) is
                hereby amended by (1) deleting the first instance of the words “the Value”
                and inserting in lieu thereof “any one or more of the S&P/DBRS Value,
                Moody’s First Trigger Value, or Moody’s Second Trigger Value” and (2)
                deleting the second instance of the words “the Value” and inserting in
                lieu thereof “such disputed S&P/DBRS Value, Moody’s First Trigger
                Value, or Moody’s Second Trigger Value”. Each of Paragraph 8(b)(iv)(B) and
                Paragraph 11(a) is hereby amended by deleting the word “Value” and
                inserting in lieu thereof “least of the S&P/DBRS Value, Moody’s First
                Trigger Value, and Moody’s Second Trigger Value”.
                

            

    

     

    
      	 	
              (iv)

            	
              Form
                of Annex. Party
                A and Party B hereby agree that the text of Paragraphs 1 through
                12,
                inclusive, of this Annex is intended to be the printed form of ISDA
                Credit
                Support Annex (Bilateral Form - ISDA Agreements Subject to New York
                Law
                Only version) as published and copyrighted in 1994 by the International
                Swaps and Derivatives Association,
                Inc.

            

    

     

    
      	 	
              (v)

            	
              Events
                of Default.
                Paragraph 7 will not apply to cause any Event of Default to exist
                with
                respect to Party B except that Paragraph 7(i) will apply to Party
                B solely
                in respect of Party B’s obligations under Paragraph 3(b) of the Credit
                Support Annex. Notwithstanding anything to the contrary in Paragraph
                7,
                any failure by Party A to comply with or perform any obligation to
                be
                complied with or performed by Party A under the Credit Support Annex
                shall
                only be an Event of Default if (A) either
                (i) a Moody’s Required Ratings Downgrade Event has occurred and been
                continuing for 30 or more Local Business Days, or (ii) a S&P/DBRS
                Required Ratings Downgrade Event has occurred and is continuing,
                and (B)
                such failure is not remedied on or before the third Local Business
                Day
                after notice of such failure is given to Party
                A.

            

    

     

    
      	 	
              (vi)

            	
              Expenses.
                Notwithstanding anything to the contrary in Paragraph 10, the Pledgor
                will
                be responsible for, and will reimburse the Secured Party for, all
                transfer
                and other taxes and other costs involved in any Transfer of Eligible
                Collateral.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
      	 	
              (vii)

            	
              Withholding.
                Paragraph 6(d)(ii) is hereby amended by inserting immediately after
“the
                Interest Amount” in the fourth line thereof the words “less any applicable
                withholding taxes.”

            

    

     

    
      	 	
              (viii)

            	
              Notice
                of Failure to Post Collateral. Upon
                any failure by Party A to post collateral as required under this
                Agreement, Party B shall, no later than the next Business Day after
                the
                date such collateral was required to be posted, give a written notice
                of
                such failure to Party A and to Depositor. For the avoidance of doubt,
                notwithstanding anything in this Agreement to the contrary, the failure
                of
                Party B to comply with the requirements of this paragraph shall not
                constitute an Event of Default or Termination Event.
                

            

    

     

    (ix)    Additional
      Definitions.
      As used
      in this Annex:

     

    “Collateral
      Event” means
      that no Relevant Entity has credit ratings at least equal to the Approved
      Ratings Threshold.

     

    “DBRS
      Rating Threshold Event”
      means,
      on any date, no Relevant Entity has credit ratings from DBRS which are at least
      equal to the DBRS Approved Ratings Threshold.

     

    “Exposure”
      has the meaning specified in Paragraph 12, except that after the word
“Agreement” the words “(assuming, for this purpose only, that Part 1(f) of the
      Schedule is deleted)” shall be inserted. 

     

    “Local
      Business Day”
means:
      any day on which (A) commercial banks are open for business (including dealings
      in foreign exchange and foreign currency deposits) in New York and the location
      of Party A, Party B and any Custodian, and (B) in relation to a Transfer of
      Eligible Collateral, any day on which the clearance system agreed between the
      parties for the delivery of Eligible Collateral is open for acceptance and
      execution of settlement instructions (or in the case of a Transfer of Cash
      or
      other Eligible Collateral for which delivery is contemplated by other means
      a
      day on which commercial banks are open for business (including dealings in
      foreign exchange and foreign deposits) in New York and the location of Party
      A,
      Party B and any Custodian. 

     

    “Moody’s
      First Trigger Event” means
      that no Relevant Entity has credit ratings from Moody’s at least equal to the
      Moody’s First Trigger Ratings Threshold.

     

    “Moody’s
      First Trigger Credit Support Amount” means,
      for any Valuation Date, the excess, if any, of

     

    
      	 	
              (I)

            	
              (A)

            	
              for
                any Valuation Date on which (I) a Moody’s First Trigger Event has occurred
                and has been continuing (x) for at least 30 Local Business Days or
                (y)
                since this Annex was executed and (II) it is not the case that a
                Moody’s
                Second Trigger Event has occurred and been continuing for at least
                30
                Local Business Days, an amount equal to the greater of (a) zero and
                (b)
                the sum of (i) the Secured Party’s Exposure for such Valuation Date and
                (ii) the sum, for each Transaction to which this Annex relates, of
                the
                product of the applicable Moody’s First Trigger Factor set forth in Table
                1 and the Notional Amount for such Transaction for the Calculation
                Period
                which includes such Valuation Date; or

            

    

     

    
      	 	
              (B)

            	
              for
                any other Valuation Date, zero,
                over

            

    

     

    (II)   the
      Threshold for Party A such Valuation Date.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    “Moody’s
      First Trigger Value”
      means,
      on any date and with respect to any Eligible Collateral other than Cash, the
      bid
      price obtained by the Valuation Agent multiplied by the Moody’s First Trigger
      Valuation Percentage for such Eligible Collateral set forth in Paragraph
      13(b)(ii).

     

    “Moody’s
      Second Trigger Event” means
      that no Relevant Entity has credit ratings from Moody’s at least equal to the
      Moody’s Second Trigger Ratings Threshold.

     

    “Moody’s
      Second Trigger Credit Support Amount”
      means,
      for any Valuation Date, the excess, if any, of

     

    
      	 	
              (I)

            	
              (A)

            	
              for
                any Valuation Date on which it is the case that a Moody’s Second Trigger
                Event has occurred and been continuing for at least 30 Local Business
                Days, an amount equal to the greatest of (a) zero, (b) the aggregate
                amount of the next payment due to be paid by Party A under each
                Transaction to which this Annex relates, and (c) the sum of (x) the
                Secured Party’s Exposure for such Valuation Date and (y) the sum, for each
                Transaction to which this Annex relates, of

            

    

     

    (1) if
      such Transaction is not a
      Transaction-Specific Hedge, 

     

    the
      product of the applicable Moody’s Second Trigger Factor set forth in Table 2 and
      the Notional Amount for such Transaction for the Calculation Period which
      includes such Valuation Date;
      or

     

    (2) if
      such Transaction is a
      Transaction-Specific Hedge, 

     

    the
      product of the applicable Moody’s Second Trigger Factor set forth in Table 3 and
      the Notional Amount for such Transaction for the Calculation Period which
      includes such Valuation Date; or 

     

    
      	 	
              (B)

            	
              for
                any other Valuation Date, zero,
                over

            

    

     

    (II)   the
      Threshold for Party A for such Valuation Date.

     

    “Moody’s
      Second Trigger Value”
      means,
      on any date and with respect to any Eligible Collateral other than Cash, the
      bid
      price obtained by the Valuation Agent multiplied by the Moody’s Second Trigger
      Valuation Percentage for such Eligible Collateral set forth in Paragraph
      13(b)(ii).

     

    “Pricing
      Sources”
      means
      the sources of financial information commonly known as Bloomberg, Bridge
      Information Services, Data Resources Inc., Interactive Data Services,
      International Securities Market Association, Merrill Lynch Securities Pricing
      Service, Muller Data Corporation, Reuters, Wood Gundy, Trepp Pricing, JJ Kenny,
      S&P and Telerate.

     

    “S&P/DBRS
      Credit Support Amount”
      means,
      for any Valuation Date, the excess, if any, of

     

    
      	 	
              (I)

            	
              (A)
                

            	
              for
                any Valuation Date on which (i) an S&P Rating Threshold Event, or DBRS
                Rating Threshold Event has occurred and been continuing for at least
                30
                days, or (ii) a S&P/DBRS Required Ratings Downgrade Event has occurred
                and is continuing, an amount equal to the sum of (1) 100.0% of the
                Secured
                Party’s Exposure for such Valuation Date and (2) the sum, for each
                Transaction to which this Annex relates, of the product of the Volatility
                Buffer for such Transaction and the Notional Amount of such Transaction
                for the Calculation Period of such Transaction which includes such
                Valuation Date, or 

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      	 	
              (B)

            	
              for
                any other Valuation Date, zero,
                over

            

    

     

    (II)   the
      Threshold for Party A for such Valuation Date.

     

    “S&P
      Rating Threshold Event”
      means,
      on any date, no Relevant Entity has credit ratings from S&P which equal or
      exceed the S&P Approved Ratings Threshold.

     

    “S&P/DBRS
      Value”
      means,
      on any date and with respect to any Eligible Collateral other than Cash, the
      product of (A) the bid price obtained by the Valuation Agent for such Eligible
      Collateral and (B) the S&P/DBRS Valuation Percentage for such Eligible
      Collateral set forth in paragraph 13(b)(ii).

     

    “Transaction
      Exposure”
      means,
      for any Transaction, Exposure determined as if such Transaction were the only
      Transaction between the Secured Party and the Pledgor.

     

    “Transaction-Specific
      Hedge” means
      any
      Transaction that is an interest rate cap, interest rate floor or interest rate
      swaption, or an interest rate swap if (x) the notional amount of the interest
      rate swap is “balance guaranteed” or (y) the notional amount of the interest
      rate swap for any Calculation Period otherwise is not a specific dollar amount
      that is fixed at the inception of the Transaction.

     

    “Valuation
      Percentage”
      shall
      mean, for purposes of determining the S&P/DBRS Value, Moody’s First Trigger
      Value, or Moody’s Second Trigger Value with respect to any Eligible Collateral
      or Posted Collateral, the applicable S&P/DBRS Valuation Percentage, Moody’s
      First Trigger Valuation Percentage, or Moody’s Second Trigger Valuation
      Percentage for such Eligible Collateral or Posted Collateral, respectively,
      in
      each case as set forth in Paragraph 13(b)(ii).

     

    “Value”
      shall
      mean, in respect of any date, the related S&P/DBRS Value, the related
      Moody’s First Trigger Value, and the related Moody’s Second Trigger
      Value.

     

    “Volatility
      Buffer”
      means,
      for any Transaction, the related percentage set forth in the following table.
      

     

    
      	 	 	 	 	 
	
              The
                higher of the S&P short-term credit rating of (i) Party A and (ii) the
                Credit Support Provider of Party A, if applicable

            	
              Remaining

              Weighted

              Average

              Maturity
                

              up
                to 3 years

            	
              
                Remaining

                Weighted

                Average

                Maturity
                  

                up
                  to 5 years

              

            	
              
                Remaining

                Weighted

                Average

                Maturity
                  

                up
                  to 10 years

              

            	
              
                Remaining

                Weighted

                Average

                Maturity
                  

                up
                  to 30 years

              

            
	
              At
                least “A-2”

            	
              2.75%

            	
              3.25%

            	
              4.00%

            	
              4.75%

            
	
              “A-3”

            	
              3.25%

            	
              4.00%

            	
              5.00%

            	
              6.25%

            
	
              “BB+”
                or
                lower

            	
              3.50%

            	
              4.50%

            	
              6.75%

            	
              7.50%

            

    

     

    [Remainder
      of this page intentionally left blank]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Table
      1

     

    Moody’s
      First Trigger Factor

     

    
      	
              Remaining

              Weighted
                Average Life 

              of
                Hedge in Years

            	
              Weekly

              Collateral

              Posting

            
	 	 
	
              1
                or less

            	
              0.25%

            
	
              More
                than 1 but not more than 2

            	
              0.50%

            
	
              More
                than 2 but not more than 3

            	
              0.70%

            
	
              More
                than 3 but not more than 4

            	
              1.00%

            
	
              More
                than 4 but not more than 5

            	
              1.20%

            
	
              More
                than 5 but not more than 6

            	
              1.40%

            
	
              More
                than 6 but not more than 7

            	
              1.60%

            
	
              More
                than 7 but not more than 8

            	
              1.80%

            
	
              More
                than 8 but not more than 9

            	
              2.00%

            
	
              More
                than 9 but not more than 10

            	
              2.20%

            
	
              More
                than 10 but not more than 11

            	
              2.30%

            
	
              More
                than 11 but not more than 12

            	
              2.50%

            
	
              More
                than 12 but not more than 13

            	
              2.70%

            
	
              More
                than 13 but not more than 14

            	
              2.80%

            
	
              More
                than 14 but not more than 15

            	
              3.00%

            
	
              More
                than 15 but not more than 16

            	
              3.20%

            
	
              More
                than 16 but not more than 17

            	
              3.30%

            
	
              More
                than 17 but not more than 18

            	
              3.50%

            
	
              More
                than 18 but not more than 19

            	
              3.60%

            
	
              More
                than 19 but not more than 20

            	
              3.70%

            
	
              More
                than 20 but not more than 21

            	
              3.90%

            
	
              More
                than 21 but not more than 22

            	
              4.00%

            
	
              More
                than 22 but not more than 23

            	
              4.00%

            
	
              More
                than 23 but not more than 24

            	
              4.00%

            
	
              More
                than 24 but not more than 25

            	
              4.00%

            
	
              More
                than 25 but not more than 26

            	
              4.00%

            
	
              More
                than 26 but not more than 27

            	
              4.00%

            
	
              More
                than 27 but not more than 28

            	
              4.00%

            
	
              More
                than 28 but not more than 29

            	
              4.00%

            
	
              More
                than 29

            	
              4.00%

            

    

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Table
      2

     

    Moody’s
      Second Trigger Factor for Interest Rate Swaps with Fixed Notional
      Amounts

     

    
      	
              Remaining

              Weighted
                Average Life 

              of
                Hedge in Years

            	
              Weekly

              Collateral
                

              Posting

            
	 	 
	
              1
                or less

            	
              0.60%

            
	
              More
                than 1 but not more than 2

            	
              1.20%

            
	
              More
                than 2 but not more than 3

            	
              1.70%

            
	
              More
                than 3 but not more than 4

            	
              2.30%

            
	
              More
                than 4 but not more than 5

            	
              2.80%

            
	
              More
                than 5 but not more than 6

            	
              3.30%

            
	
              More
                than 6 but not more than 7

            	
              3.80%

            
	
              More
                than 7 but not more than 8

            	
              4.30%

            
	
              More
                than 8 but not more than 9

            	
              4.80%

            
	
              More
                than 9 but not more than 10

            	
              5.30%

            
	
              More
                than 10 but not more than 11

            	
              5.60%

            
	
              More
                than 11 but not more than 12

            	
              6.00%

            
	
              More
                than 12 but not more than 13

            	
              6.40%

            
	
              More
                than 13 but not more than 14

            	
              6.80%

            
	
              More
                than 14 but not more than 15

            	
              7.20%

            
	
              More
                than 15 but not more than 16

            	
              7.60%

            
	
              More
                than 16 but not more than 17

            	
              7.90%

            
	
              More
                than 17 but not more than 18

            	
              8.30%

            
	
              More
                than 18 but not more than 19

            	
              8.60%

            
	
              More
                than 19 but not more than 20

            	
              9.00%

            
	
              More
                than 20 but not more than 21

            	
              9.00%

            
	
              More
                than 21 but not more than 22

            	
              9.00%

            
	
              More
                than 22 but not more than 23

            	
              9.00%

            
	
              More
                than 23 but not more than 24

            	
              9.00%

            
	
              More
                than 24 but not more than 25

            	
              9.00%

            
	
              More
                than 25 but not more than 26

            	
              9.00%

            
	
              More
                than 26 but not more than 27

            	
              9.00%

            
	
              More
                than 27 but not more than 28

            	
              9.00%

            
	
              More
                than 28 but not more than 29

            	
              9.00%

            
	
              More
                than 29

            	
              9.00%

            

    

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    Table
      3

     

    Moody’s
      Second Trigger Factor for Transaction-Specific Hedges

     

    
      	
              Remaining

              Weighted
                Average Life 

              of
                Hedge in Years

            	
              Weekly

              Collateral

              Posting

            
	 	 
	
              1
                or less

            	
              0.75%

            
	
              More
                than 1 but not more than 2

            	
              1.50%

            
	
              More
                than 2 but not more than 3

            	
              2.20%

            
	
              More
                than 3 but not more than 4

            	
              2.90%

            
	
              More
                than 4 but not more than 5

            	
              3.60%

            
	
              More
                than 5 but not more than 6

            	
              4.20%

            
	
              More
                than 6 but not more than 7

            	
              4.80%

            
	
              More
                than 7 but not more than 8

            	
              5.40%

            
	
              More
                than 8 but not more than 9

            	
              6.00%

            
	
              More
                than 9 but not more than 10

            	
              6.60%

            
	
              More
                than 10 but not more than 11

            	
              7.00%

            
	
              More
                than 11 but not more than 12

            	
              7.50%

            
	
              More
                than 12 but not more than 13

            	
              8.00%

            
	
              More
                than 13 but not more than 14

            	
              8.50%

            
	
              More
                than 14 but not more than 15

            	
              9.00%

            
	
              More
                than 15 but not more than 16

            	
              9.50%

            
	
              More
                than 16 but not more than 17

            	
              9.90%

            
	
              More
                than 17 but not more than 18

            	
              10.40%

            
	
              More
                than 18 but not more than 19

            	
              10.80%

            
	
              More
                than 19 but not more than 20

            	
              11.00%

            
	
              More
                than 20 but not more than 21

            	
              11.00%

            
	
              More
                than 21 but not more than 22

            	
              11.00%

            
	
              More
                than 22 but not more than 23

            	
              11.00%

            
	
              More
                than 23 but not more than 24

            	
              11.00%

            
	
              More
                than 24 but not more than 25

            	
              11.00%

            
	
              More
                than 25 but not more than 26

            	
              11.00%

            
	
              More
                than 26 but not more than 27

            	
              11.00%

            
	
              More
                than 27 but not more than 28

            	
              11.00%

            
	
              More
                than 28 but not more than 29

            	
              11.00%

            
	
              More
                than 29

            	
              11.00%

            

    

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Annex by their duly authorized
      representatives as of the date of the Agreement.

     

    
      	
              DEUTSCHE
                BANK AG - New York Branch

            	
              HSBC
                Bank USA, National Association, not in its individual capacity, but
                solely
                as Supplemental Interest Trust Trustee on behalf of the Supplemental
                Interest Trust, for the ACE Securities Corp. Home Equity Loan Trust,
                Series 2006-NC3, Asset Backed Pass-Through Certificates

            
	 	 
	
              By: _/s/
                Diane Anderson___________

              Name
                Diane Anderson

              Title:
                Assistant Vice President

              Date:
                

            	
              By: /s/
                Fernando Acedebo    

              Name:
                Fernando Acedebo

              Title:
                Vice President

              Date:
                

            

    

    

     

    By: _/s/_Mathew_Hoff______________

    Name
      Mathew_Hoff

    Title:
      Assistant Vice President

    Date:
      

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
EXHIBIT
      J

    
      

        ASSIGNMENT,
          ASSUMPTION AND RECOGNITION AGREEMENT

         

        This
          Assignment, Assumption and Recognition Agreement (this “AAR Agreement”) is made
          and entered into as of November 30, 2006 (the “Closing Date”), among DB
          Structured Products, Inc., having an address at 60 Wall Street, New York,
          New
          York 10005 (the “Assignor”), ACE Securities Corp., having an address at 6525
          Morrison Blvd. Suite 318, Charlotte, North Carolina 28211 (the “Assignee”), and
          New Century Mortgage Corporation having an address at 18400 Von Karman,
          Suite
          1000, Irvine, California 92612 (the “Company”).

         

        In
          consideration of the mutual promises contained herein, the parties hereto
          agree
          that the residential mortgage loans listed on Attachment
          1
          annexed
          hereto (the “Assigned Loans”), which are now serviced by the Company for the
          Assignor and its successors and assigns pursuant to that certain Master
          Mortgage
          Loan Purchase and Interim Servicing Agreement dated as of March 1, 2005,
          as
          amended by Amendment Number One, dated as of May 1, 2005, Amendment Number
          Two,
          dated as of September 12, 2005 and Amendment Number Three, dated as of
          June 15,
          2006 (collectively, the “Servicing Agreement”), among the Assignor, the Company
          as Interim Servicer and NC Capital Corporation as Seller, shall, from the
          Closing Date until the date on which servicing is transferred to the related
          successor servicer (the “Servicing Transfer Date”), be serviced by the Company
          in accordance with the provisions of the Servicing Agreement, as modified
          by
          this AAR Agreement. The Assigned Loans will be sold to ACE Securities Corp.
          (the
“Depositor”) pursuant to that certain Mortgage Loan Purchase Agreement dated as
          of November 30, 2006 between the Assignor and the Depositor. The Depositor
          intends to transfer all right, title and interest in and to the Assigned
          Loans
          to HSBC Bank USA, National Association, as trustee (the “Trustee”) for the
          holders of ACE Securities Corp. Home Equity Loan Trust, Series 2006-NC3
          Asset
          Backed Pass-Through Certificates pursuant to the Pooling and Servicing
          Agreement, dated as of November 1, 2006 (the “Pooling and Servicing Agreement”)
          among the Depositor, the Trustee, Wells Fargo Bank, N.A., as master servicer
          and
          securities administrator (the “Master Servicer”) and Countrywide Home Loans
          Servicing LP, as a servicer. Capitalized terms used herein but not defined
          shall
          have the meanings ascribed to them in the Servicing Agreement.

         

        Assignment
          and Assumption

         

        1. Assignor
          hereby grants, transfers and assigns to Assignee all of the right, title
          and
          interest of Assignor in, to and under the Servicing Agreement as it relates
          to
          the Assigned Loans. Assignor specifically reserves and does not assign
          to
          Assignee any right, title and interest in, to or under (a) any mortgage
          loans
          subject to the Servicing Agreement other than the Assigned Loans, (b) any
          representations or warranties set forth in Sections 7.01 and 7.02 of the
          Servicing Agreement or (c) any rights or remedies set forth in Sections
          7.03,
          7.04 and 7.05 of the Servicing Agreement.

         

        Representations,
          Warranties and Covenants

         

        2. Assignor
          warrants and represents to Assignee and Company as of the Closing
          Date:

         

        
          	 	
                  (a)

                	
                  Attached
                    hereto as Attachment
                    2
                    is
                    a true and accurate copy of the Servicing Agreement, which Servicing
                    Agreement is in full force and effect as of the Closing Date
                    and the
                    provisions of which have not been waived, amended or modified
                    in any
                    respect, nor has any notice of termination been given
                    thereunder;

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          	 	
                  (b)

                	
                  Assignor
                    was the lawful owner of the Assigned Loans with full right to
                    transfer the
                    Assigned Loans and any and all of its interests, rights and obligations
                    under the Servicing Agreement as they relate to the Assigned
                    Loans, free
                    and clear of any and all claims and encumbrances; and upon the
                    transfer of
                    the Assigned Loans to Assignee, Assignee shall have good title
                    to the
                    servicing rights with respect to the Assigned Loans, as well
                    as any and
                    all of Assignor’s interests, rights and obligations under the Servicing
                    Agreement as they relate to the Assigned Loans, free and clear
                    of any and
                    all liens, claims and encumbrances;

                

        

         

        
          	 	
                  (c)

                	
                  Assignor
                    is duly organized, validly existing and in good standing under
                    the laws of
                    the jurisdiction of its incorporation, and has all requisite
                    power and
                    authority to sell, transfer and assign the Assigned
                    Loans;

                

        

         

        
          	 	
                  (d)

                	
                  Assignor
                    has full corporate power and authority to execute, deliver and
                    perform its
                    obligations under this AAR Agreement, and to consummate the transactions
                    set forth herein. The consummation of the transactions contemplated
                    by
                    this AAR Agreement is in the ordinary course of Assignor’s business and
                    will not conflict with, or result in a breach of, any of the
                    terms,
                    conditions or provisions of Assignor’s certificate of incorporation or
                    by-laws or any legal restriction, or any material agreement or
                    instrument
                    to which Assignor is now a party or by which it is bound, or
                    result in the
                    violation of any law, rule, regulation, order, judgment or decree
                    to which
                    Assignor or its property is subject. The execution, delivery
                    and
                    performance by Assignor of this AAR Agreement and the consummation
                    by it
                    of the transactions contemplated hereby, have been duly authorized
                    by all
                    necessary corporate action on the part of Assignor. This AAR
                    Agreement has
                    been duly executed and delivered by Assignor and, upon the due
                    authorization, execution and delivery by Assignee and Company,
                    will
                    constitute the valid and legally binding obligation of Assignor
                    enforceable against Assignor in accordance with its terms except
                    as
                    enforceability may be limited by bankruptcy, reorganization,
                    insolvency,
                    moratorium or other similar laws now or hereafter in effect relating
                    to
                    creditors’ rights generally, and by general principles of equity
                    regardless of whether enforceability is considered in a proceeding
                    in
                    equity or at law; and

                

        

         

        
          	 	
                  (e)

                	
                  No
                    consent, approval, order or authorization of, or declaration,
                    filing or
                    registration with, any governmental entity is required to be
                    obtained or
                    made by Assignor in connection with the execution, delivery or
                    performance
                    by Assignor of this AAR Agreement, or the consummation by it
                    of the
                    transactions contemplated hereby.

                

        

         

        
          
            
            

          

          
            -2-

            
              

            

          

          
            
            

          

        

        3. Assignee
          warrants and represents to, and covenants with, Assignor and Company as
          of the
          Closing Date:

         

        
          	 	
                  (a)

                	
                  Assignee
                    is duly organized, validly existing and in good standing under
                    the laws of
                    the jurisdiction of its incorporation and has all requisite power
                    and
                    authority to acquire the servicing rights with respect to the
                    Assigned
                    Loans;

                

        

         

        
          	 	
                  (b)

                	
                  Assignee
                    has full corporate power and authority to execute, deliver and
                    perform its
                    obligations under this AAR Agreement, and to consummate the transactions
                    set forth herein. The consummation of the transactions contemplated
                    by
                    this AAR Agreement is in the ordinary course of Assignee’s business and
                    will not conflict with, or result in a breach of, any of the
                    terms,
                    conditions or provisions of Assignee’s certificate of incorporation or
                    by-laws or any legal restriction, or any material agreement or
                    instrument
                    to which Assignee is now a party or by which it is bound, or
                    result in the
                    violation of any law, rule, regulation, order, judgment or decree
                    to which
                    Assignee or its property is subject. The execution, delivery
                    and
                    performance by Assignee of this AAR Agreement and the consummation
                    by it
                    of the transactions contemplated hereby, have been duly authorized
                    by all
                    necessary corporate action on the part of Assignee. This AAR
                    Agreement has
                    been duly executed and delivered by Assignee and, upon the due
                    authorization, execution and delivery by Assignor and Company,
                    will
                    constitute the valid and legally binding obligation of Assignee
                    enforceable against Assignee in accordance with its terms except
                    as
                    enforceability may be limited by bankruptcy, reorganization,
                    insolvency,
                    moratorium or other similar laws now or hereafter in effect relating
                    to
                    creditors’ rights generally, and by general principles of equity
                    regardless of whether enforceability is considered in a proceeding
                    in
                    equity or at law;

                

        

         

        
          	 	
                  (c)

                	
                  No
                    consent, approval, order or authorization of, or declaration,
                    filing or
                    registration with, any governmental entity is required to be
                    obtained or
                    made by Assignee in connection with the execution, delivery or
                    performance
                    by Assignee of this AAR Agreement, or the consummation by it
                    of the
                    transactions contemplated hereby;
                    and

                

        

         

        
          	 	
                  (d)

                	
                  Assignee
                    agrees to be bound by all of the terms, covenants and conditions
                    of the
                    Servicing Agreement, as modified by this AAR Agreement, with
                    respect to
                    the Assigned Loans, and from and after the Closing Date, Assignee
                    assumes
                    for the benefit of each of Assignor and Company all of Assignor’s
                    obligations thereunder but solely with respect to such Assigned
                    Loans.

                

        

         

        4. Company
          warrants and represents to, and covenants with, Assignor and Assignee as
          of the
          Closing Date:

         

        
          	 	
                  (a)

                	
                  Attached
                    hereto as Attachment
                    2
                    is
                    a true and accurate copy of the Servicing Agreement, which Servicing
                    Agreement is in full force and effect as of the Closing Date
                    and the
                    provisions of which have not been waived, amended or modified
                    in any
                    respect, nor has any notice of termination been given
                    thereunder;

                

        

         

        
          
            
            

          

          
            -3-

            
              

            

          

          
            
            

          

        

        
          	 	
                  (b)

                	
                  Company
                    is duly organized, validly existing and in good standing under
                    the laws of
                    the jurisdiction of its incorporation, and has all requisite
                    power and
                    authority to service the Assigned Loans from the Closing Date
                    to the
                    Servicing Transfer Date and otherwise to perform its obligations
                    under the
                    Servicing Agreement;

                

        

         

        
          	 	
                  (c)

                	
                  Company
                    has full corporate power and authority to execute, deliver and
                    perform its
                    obligations under this AAR Agreement, and to consummate the transactions
                    set forth herein. The consummation of the transactions contemplated
                    by
                    this AAR Agreement is in the ordinary course of Company’s business and
                    will not conflict with, or result in a breach of, any of the
                    terms,
                    conditions or provisions of Company’s certificate of incorporation or
                    by-laws or any legal restriction, or any material agreement or
                    instrument
                    to which Company is now a party or by which it is bound, or result
                    in the
                    violation of any law, rule, regulation, order, judgment or decree to which
                    Company or its property is subject. The execution, delivery and
                    performance by Company of this AAR Agreement and the consummation
                    by it of
                    the transactions contemplated hereby, have been duly authorized
                    by all
                    necessary action on the part of Company. This AAR Agreement has
                    been duly
                    executed and delivered by Company, and, upon the due authorization,
                    execution and delivery by Assignor and Assignee, will constitute
                    the valid
                    and legally binding obligation of Company, enforceable against
                    Company in
                    accordance with its terms except as enforceability may be limited
                    by
                    bankruptcy, reorganization, insolvency, moratorium or other similar
                    laws
                    now or hereafter in effect relating to creditors’ rights generally, and by
                    general principles of equity regardless of whether enforceability
                    is
                    considered in a proceeding in equity or at
                    law;

                

        

         

        
          	 	
                  (d)

                	
                  No
                    consent, approval, order or authorization of, or declaration,
                    filing or
                    registration with, any governmental entity is required to be
                    obtained or
                    made by Company in connection with the execution, delivery or
                    performance
                    by Company of this AAR Agreement, or the consummation by it of
                    the
                    transactions contemplated hereby;

                

        

         

        
          	 	
                  (e)

                	
                  Company
                    shall furnish, on a monthly basis, during the period from the
                    Closing Date
                    to the Servicing Transfer Date, in accordance with the Fair Credit
                    Reporting Act and its implementing regulations, accurate and
                    complete
                    borrower credit files to Equifax, Experian and the Trans Union
                    Credit
                    Information Company with respect to each Assigned Loan serviced
                    by the
                    company subject to this AAR Agreement
                    and;

                

        

         

        
          	 	
                  (f)

                	
                  From
                    the Closing Date to the Servicing Transfer Date, Company shall
                    service the
                    Assigned Loans in accordance with the terms and provisions of
                    the
                    Servicing Agreement, as modified by this AAR Agreement, and Company
                    shall
                    establish a Custodial Account and an Escrow Account under the
                    Servicing
                    Agreement with respect to the Assigned Loans separate from the
                    Custodial
                    Account and Escrow Account previously established in favor of
                    the Assignor
                    under the Servicing Agreement, and shall remit collections received
                    on the
                    Assigned Loans to such accounts. The Custodial Account and Escrow
                    Account
                    shall be entitled “New Century Mortgage Corporation, as sub-servicer in
                    trust for ACE Securities Corp. Home Equity Loan Trust, Series
                    2006-NC3.”

                

        

         

        
          
            
            

          

          
            -4-

            
              

            

          

          
            
            

          

        

        5. Company
          hereby acknowledges that Wells Fargo Bank, National Association has been
          appointed as the master servicer for the Assigned Loans pursuant to the
          Pooling
          and Servicing Agreement. Company shall deliver any reports required to
          be
          delivered under the Servicing Agreement to: Wells Fargo Bank, National
          Association, 9062 Old Annapolis Road, Columbia, MD 21045, Attention: ACE
          2006-NC3, Telecopier No.: (410) 715-2380. Company shall deliver to the
          Master
          Servicer any reports required to be delivered under the Servicing Agreement
          or
          otherwise necessary to fulfill its servicing obligations. A copy of all
          assessments, attestations, reports and certifications required to be delivered
          by the Servicer under this AAR Agreement and the Servicing Agreement shall
          be
          delivered to the Master Servicer by the date(s) specified herein or therein,
          and
          where such documents are required to be addressed to any party, such addressees
          shall include the Master Servicer and the Master Servicer shall be entitled
          to
          rely on such documents.

         

        Recognition
          of Assignee

         

        6. From
          and
          after the Closing Date, Company acknowledges that the Assigned Loans will
          be
          part of a REMIC, and will service the Assigned Loans from the Closing Date
          until
          the Servicing Transfer Date in accordance with the Servicing Agreement,
          as
          modified by this AAR Agreement, but in no event in a manner that would
          (i) cause
          any REMIC to fail to qualify as a REMIC or (ii) result in the imposition
          of a
          tax upon any REMIC (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). It
          is the
          intention of Assignor, Company and Assignee that this AAR Agreement shall
          be
          binding upon and for the benefit of the respective successors and assigns
          of the
          parties hereto. Neither Company nor Assignor shall amend or agree to amend,
          modify, waive, or otherwise alter any of the terms or provisions of the
          Servicing Agreement which amendment, modification, waiver or other alteration
          would in any way affect the Assigned Loans without the prior written consent
          of
          the Trustee and the Master Servicer. Pursuant to the Pooling and Servicing
          Agreement, the Assignee will assign all of its rights under this AAR Agreement
          to the Trustee for the benefit of the Certificateholders.

         

        In
          addition, Company hereby acknowledges that from and after the Closing Date,
          the
          Assigned Loans will be subject to the terms and conditions of the Pooling
          and
          Servicing Agreement pursuant to which the Master Servicer is required to
          monitor
          the performance by Company of its servicing obligations under the Servicing
          Agreement, as modified by this AAR Agreement, and has the right to enforce
          the
          obligations of Company under the Servicing Agreement, as modified by this
          AAR
          Agreement, with respect to the Assigned Loans. Such right will include,
          without
          limitation, the right to terminate Company under the Servicing Agreement
          as
          provided therein, the right to receive all remittances required to be made
          by
          Company with respect to the Assigned Loans under the Servicing Agreement
          for the
          Distribution Date occurring in December 2006, the right to receive all
          monthly
          reports and other data required to be delivered by Company under the Servicing
          Agreement, the right to examine the books and records of Company, the right
          to
          indemnification, and the right to exercise certain rights of consent and
          approval relating to actions taken by Company. Company further acknowledges
          and
          agrees that, to the extent Company receives (i) any Principal Prepayments
          or
          unscheduled collections on the Assigned Loans following the Prepayment
          Period
          relating to any Distribution Date prior to the Servicing Transfer Date
          or (ii)
          any Monthly Payments following the Due Period relating to any Distribution
          Date
          prior to the Servicing Transfer Date, the successor servicer shall be entitled
          to receive any such amounts and Company shall remit such amounts to the
          successor servicer in accordance with the wire transfer instructions provided
          to
          the Company by the successor servicer. In connection therewith Company
          hereby
          agrees to make all remittances required to be remitted to the Master Servicer
          with respect to the Assigned Loans in accordance with the following wire
          transfer instructions:

         

        
          
            
            

          

          
            -5-

            
              

            

          

          
            
            

          

        

        Wells
          Fargo Bank, National Association

        ABA:
          121000248

        Acct
          #:
          3970771416

        Acct
          Name: SAS Clearing

        For
          Further Credit to: ACE 2006-NC3 Account #: 50969400 

         

        Modification
          of the Servicing Agreement

         

        7. The
          Company and Assignor hereby amend the Servicing Agreement with respect
          to the
          Assigned Loans as follows:

         

        
          	 	
                  (a)

                	
                  The
                    following definitions are added to Section 1 of the Servicing
                    Agreement:

                

        

         

        
          	 	 	
                  “Compensating
                    Interest”:
                    With respect to each Principal Prepayment received during the
                    portion of
                    the Prepayment Period occurring in the month prior to the month
                    in which
                    the Distribution Date occurs, an amount (to be paid by the Interim
                    Servicer out of its own funds without reimbursement therefor)
                    which, when
                    added to all amounts allocable to interest received in connection
                    with
                    such Principal Prepayment, equals one month’s interest on the amount of
                    principal so prepaid at the Mortgage Loan Remittance Rate, provided,
                    however, that in no event shall the aggregate of deposits made
                    by the
                    Interim Servicer exceed the aggregate amount of the Interim Servicer’s
                    Servicing Fee in the calendar month in which such deposits are
                    required.

                

        

         

        
          	 	 	
                  “Monthly
                    Advance”:
                    An amount equal to all payments not previously advanced by the
                    Interim
                    Servicer, whether or not deferred pursuant to Subsection 11.01,
                    of
                    principal and interest, at the Mortgage Loan Remittance Rate,
                    which were
                    due on a Mortgage Loan and delinquent at the close of business
                    on the
                    related Determination Date.

                

        

         

        
          	 	 	
                  “Mortgage
                    Loan Remittance Rate”:
                    With respect to each Mortgage Loan, an amount which is equal
                    to the
                    related Mortgage Interest Rate minus the Servicing Fee
                    Rate.

                

        

         

        “Prepayment
          Interest Excess”:
          With
          respect to each Mortgage Loan that was the subject of a Principal Prepayment
          in
          full during the portion of the related Prepayment Period occurring between
          the
          first day of the calendar month in which such Distribution Date occurs
          and the
          fifteenth (15th)
          day of
          the calendar month in which such Distribution Date occurs, an amount equal
          to
          interest (to the extent received) at the applicable Net Mortgage Rate on
          the
          amount of such Principal Prepayment for the number of days commencing on
          the
          first day of the calendar month in which such Distribution Date occurs
          and
          ending on the last date through which interest is collected from the related
          Mortgagor. The related Servicer may withdraw such Prepayment Interest Excess
          from the related Collection Account in accordance the Servicing
          Agreement.

         

        
          
            
            

          

          
            -6-

            
              

            

          

          
            
            

          

        

        
          	 	 	
                  “Prepayment
                    Period”:
                    With respect to each Distribution Date, the sixteenth (16th)
                    of month preceding the month in which such Distribution Date
                    occurs to the
                    fifteenth (15th)
                    of the month in which such Distribution Date
                    occurs.

                

        

         

        
          	 	 	
                  “Report
                    Remittance Date”:
                    Shall have the meaning assigned thereto in Subsection 11.15 of
                    this
                    Agreement.

                

        

         

        
          	 	 	
                  “Securities
                    Administrator”:
                    Wells Fargo Bank, National Association, or any successor
                    thereto.

                

        

         

        “Servicing
          Fee Rate”:
          With
          respect to each Mortgage Loan, 0.50% per annum.

         

        
          	 	 	
                  “Trustee”:
                    HSBC Bank USA, National Association, or any successor
                    thereto.

                

        

         

        
          	 	
                  (b)

                	
                  The
                    definition of “Business Day” is hereby amended by adding “, State of
                    Maryland, State of Minnesota” after the words “State of
                    California”.

                

        

         

        
          	 	
                  (c)

                	
                  The
                    definition of “Determination Date” is hereby deleted in its entirety and
                    replaced with the following: “With respect to any Distribution Date, the
                    eighteenth (18th) day of the calendar month in which such Distribution
                    Date occurs or, if such eighteenth (18th) day is not a Business
                    Day, the
                    Business Day immediately preceding such eighteenth (18th)
                    day.”

                

        

         

        
          	 	
                  (d)

                	
                  The
                    definition of “Distribution Date” is hereby deleted in its entirety and
                    replaced with the following: “the twenty-second (22nd) day of the month;
                    provided that if such twenty-second (22nd) day of a given month
                    is not a
                    Business Day, the Distribution Date for such month shall be the
                    Business
                    Day immediately preceding such twenty-second (22nd) day; provided
                    further,
                    that if the Distribution Date falls on a Friday, the Distribution
                    Date
                    shall be the Business Day immediately preceding such
                    Friday.”

                

        

         

        
          	 	
                  (e)

                	
                  The
                    definition of "Interim Servicing Period" is hereby amended by
                    deleting the
                    phrase ", unless the Purchaser notifies the Interim Servicer
                    at least
                    twenty (20) days prior to the expiration of an Interim Servicing
                    Period
                    that the Interim Servicer shall be terminated as interim servicer
                    at the
                    expiration of the Interim Servicing Period." and replacing such
                    phrase
                    with the following: "; provided, however, the Interim Servicing
                    Period
                    shall terminate on the Servicing Transfer
                    Date."

                

        

         

        
          
            
            

          

          
            -7-

            
              

            

          

          
            
            

          

        

        
          	 	
                  (f)

                	
                  The
                    definition of “Servicing Fee” is hereby amended by deleting the first
                    sentence and replacing it with the following: “With respect to each
                    Mortgage Loan, the monthly fee payable to the Interim Servicer,
                    which
                    shall be equal to one-twelfth of the product of (x) the Servicing
                    Fee Rate
                    and (y) the same principal amount on which interest on such Mortgage
                    Loan
                    accrues for such calendar month.”

                

        

         

        
          	 	
                  (g)

                	
                  Subsection
                    11.04(ii) of the Servicing Agreement is modified by adding the
                    words “and
                    Compensating Interest payments and excluding any Prepayment Interest
                    Excess” immediately following the words “Prepayment Charges” in the second
                    line thereof.

                

        

         

        
          	 	
                  (h)

                	
                  Subsection
                    11.04(ix) of the Servicing Agreement is modified by replacing
                    the words
                    “Subsection 11.19 or 11.20” in the second line thereof with “Subsections
                    11.19, 11.20 or 11.35”.

                

        

         

        
          	 	
                  (i)

                	
                  Subsection
                    11.05(ii) of the Servicing Agreement is deleted and replaced
                    with the
                    following:

                

        

         

        “to
          reimburse itself for unreimbursed Monthly Advances and Servicing Advances;
          provided that the Interim Servicer’s right to reimburse itself pursuant to this
          subclause (ii) with respect to any Mortgage Loan is limited to amounts
          received
          on the related Mortgage Loan which represent payments of (a) Liquidation
          Proceeds, Condemnation Proceeds, Insurance Proceeds and such other amounts
          as
          may be collected by the Interim Servicer from the Mortgagor or otherwise
          relating to the Mortgage Loan respecting which any such Servicing Advance
          or
          Monthly Advance was made, or (b) principal and/or interest respecting which
          any
          such Monthly Advance was made, it being understood that, in the case of
          such
          reimbursement, the Interim Servicer’s right thereto shall be prior to the rights
          of the Master Servicer, except that, where the Interim Servicer is required
          to
          repurchase a Mortgage Loan, pursuant to Subsection 7.03, the Interim Servicer’s
          right to such reimbursement shall be subsequent to the payment to the Master
          Servicer of the Repurchase Price pursuant to Subsection 7.03 and all other
          amounts required to be paid to the Master Servicer with respect to such
          Mortgage
          Loans”.

        

        
          	 	
                  (j)

                	
                  Subsection
                    11.05 of the Servicing Agreement is modified to inserting the
                    following as
                    clause (vi) and clause (vi) shall be renumbered as clause
                    (vii):

                

        

         

        “(vi) to
          pay to
          itself any Prepayment Interest Excess on the related Mortgage Loans to
          the
          extent not retained pursuant to Section 11.04(a)(ii)) of this Agreement;
          and”

         

        
          	 	
                  (k)

                	
                  The
                    first paragraph of Subsection 11.14 is hereby deleted in its
                    entirety and
                    replaced with the following:

                

        

         

        “On
          each
          Distribution Date the Interim Servicer shall remit by wire transfer of
          immediately available funds to the Master Servicer (a) all amounts deposited
          in
          the Custodial Account as of the close of business on the Determination
          Date (net
          of charges against or withdrawals from the Custodial Account pursuant to
          Section
          11.05), plus (b) all amounts, if any, which the Interim Servicer is obligated
          to
          distribute pursuant to Section 11.35, minus (c) any amounts attributable
          to
          Principal Prepayments received after the applicable Prepayment Period which
          amounts shall be remitted on the following Distribution Date, together
          with any
          additional interest required to be deposited in the Custodial Account in
          connection with such Principal Prepayment in accordance with Section 11.04(ii),
          and minus (d) any amounts attributable to Monthly Payments collected but
          due on
          a Due Date or Dates subsequent to the first day of the month of the Distribution
          Date, which amounts shall be remitted on the Distribution Date next succeeding
          the Due Period for such amounts.”

        

        
          
            
            

          

          
            -8-

            
              

            

          

          
            
            

          

        

        
          	 	
                  (l)

                	
                  Subsection
                    11.15 of the Servicing Agreement is modified by inserting after
“month” in
                    the first line, “(such date, the “Report Remittance
                    Date”).”

                

        

         

        
          	 	
                  (m)

                	
                  Subsection
                    11.27 of the Servicing agreement is modified by adding the following
                    at
                    the end thereto:

                

        

         

        “In
          addition, prior to each Servicing Transfer Date, the Interim Servicer shall
          have
          complied with each of the servicing transfer requirements in accordance
          with
          Countrywide Home Loans Servicing LP’s commercially reasonable instructions, as
          the case may be, provided to the Interim Servicer in writing and reasonable
          in
          advance of the Servicing Transfer Date.”

         

        
          	 	
                  (n)

                	
                  Subsection
                    11.31 of the Servicing Agreement is modified by deleting the
                    first
                    sentence of such subsection in its entirety and replacing it
                    with the
                    following:

                

        

         

        “Any
          Sub-Servicing Agreement shall provide that the Interim Servicer shall be
          entitled to terminate any Sub-Servicing Agreement and to either itself
          directly
          service the related Mortgage Loans or enter into a Sub-Servicing Agreement
          with
          a successor Sub-Servicer.”

        

        
          	 	
                  (o)

                	
                  The
                    following Section is added as Subsection 11.35 of the Servicing
                    Agreement:

                

        

         

        “Subsection
          11.35. Monthly
          Advances. On
          each
          Distribution Date, the Interim Servicer shall deposit in the Custodial
          Account,
          and remit such amounts to the Master Servicer on such Distribution Date
          from the
          Interim Servicer’s own funds or from amounts held for future distribution, an
          amount equal to all Monthly Payments (with interest adjusted to the Mortgage
          Loan Remittance Rate) which were due on the Mortgage Loans during the applicable
          Due Period and which were delinquent at the close of business on the immediately
          preceding Determination Date or which were deferred pursuant to Subsection
          11.01; provided, however, that the Interim Servicer shall have no obligation
          to
          deposit or remit funds with respect to shortfalls that are due either to
          (i)
          bankruptcy proceedings or application of the Servicemembers Civil Relief
          Act, or
          (ii) reductions in any Mortgagor’s obligation to make Monthly Payments pursuant
          to a modification that complies with the provisions of Subsection 11.01
          of this
          Agreement. Any amounts held for future distribution and so used shall be
          replaced by the Interim Servicer by deposit in the Custodial Account on
          or
          before any future Distribution Date if funds in the Custodial Account on
          such
          Distribution Date shall be less than payments required to be made on such
          Distribution Date. The Interim Servicer’s obligation to make such Monthly
          Advances and Compensating Interest payments as to any Mortgage Loan will
          continue through the last Monthly Payment due prior to the payment in full
          of
          the Mortgage Loan, or through the earlier of: (i) the last Distribution
          Date
          prior to the Distribution Date for the distribution of all Liquidation
          Proceeds
          and other payments or recoveries (including Insurance Proceeds) with respect
          to
          the Mortgage Loan; and (ii) the Distribution Date prior to the date on
          which
          cash is received in connection with the liquidation of REO Property; provided,
          however, that such obligation shall cease if the Interim Servicer determines,
          in
          its sole reasonable opinion, that Monthly Advances with respect to such
          Mortgage
          Loan are non-recoverable by the Interim Servicer from Liquidation Proceeds,
          Insurance Proceeds, Condemnation Proceeds or otherwise with respect to
          a
          particular Mortgage Loan. In the event that the Interim Servicer determines
          that
          any such Monthly Advances are non-recoverable, the Interim Servicer shall
          provide the Master Servicer and the Trustee with a certificate signed by
          two
          officers of the Interim Servicer evidencing such determination.”

         

        
          
            
            

          

          
            -9-

            
              

            

          

          
            
            

          

        

        
          	 	
                  (p)

                	
                  Subsection
                    12.A.03(e) of the Servicing Agreement is modified by inserting
“, any
                    Master Servicer” after “written notice to the Purchaser” in the eighth
                    line thereof.

                

        

         

        
          	 	
                  (q)

                	
                  Subsection
                    12.A.05(a)(iv) of the Servicing Agreement is modified by deleting
                    the
                    words “if requested by the Purchaser, any Depositor or any Master Servicer
                    not later than February 1 of the calendar year in which such
                    certification
                    is to be delivered,” in the first line
                    thereof.

                

        

         

        
          	 	
                  (r)

                	
                  Exhibit
                    11
                    of
                    the Servicing Agreement is hereby replaced with Attachment
                    3
                    attached hereto.

                

        

         

        
          	 	
                  (s)

                	
                  Exhibit
                    13
                    of
                    the Servicing Agreement is hereby replaced with Attachment
                    4
                    attached hereto.

                

        

         

        Prepayment
          Penalty Verification

         

        8. On
          each
          Report Remittance Date, the Interim Servicer shall deliver to the Master
          Servicer by electronic mail (or by such other means as the Interim Servicer
          and
          the Master Servicer may agree from time to time) a prepayment report with
          respect to the related Distribution Date. Such prepayment report shall
          include
          (i) such information with respect to the Prepayment Charges as the Master
          Servicer may reasonably require and (ii) information that the term of the
          last
          Prepayment Charge has expired or such Prepayment Charge has been
          waived.

         

        
          
            
            

          

          
            -10-

            
              

            

          

          
            
            

          

        

        Miscellaneous

         

        9. Notwithstanding
          anything to the contrary herein, the Company’s obligation to deliver any
          reports, certificates or other documents to the Master Servicer shall survive
          the termination or expiration of this AAR Agreement.

         

        10. All
          demands, notices and communications related to the Assigned Loans, the
          Servicing
          Agreement and this AAR Agreement shall be in writing and shall be deemed
          to have
          been duly given if personally delivered at or mailed by registered mail,
          postage
          prepaid, as follows:

         

        
          	 	
                  (a)

                	
                  In
                    the case of Company,

                

        

         

        New
          Century Mortgage Corporation

        18400
          Von
          Karman

        Suite
          1000

        Irvine,
          California 92612

        Attn:
          Kevin Cloyd

         

        
          	 	
                  (b)

                	
                  In
                    the case of Assignor,

                

        

         

        DB
          Structured Products, Inc.

        60
          Wall
          Street

        New
          York,
          New York 10005

        Attention:
          Susan Valenti

         

        
          	 	
                  (c)

                	
                  In
                    the case of Assignee,

                

        

         

        ACE
          Securities Corp.

        6525
          Morrison Boulevard, Suite 318

        Charlotte,
          North Carolina 28211

        Attention:
          Doris J. Hearn

        

        
          	 	
                  (d)

                	
                  In
                    the case of the Trustee,

                

        

         

        HSBC
          Bank
          USA, National Association

        452
          Fifth
          Avenue

        New
          York,
          New York 10018

        Attention:
          ACE Securities
          Corp. Home Equity Loan Trust, Series 2006-NC3

         

        (e) In
          case
          of the Master Servicer,

        

        Wells
          Fargo Bank, National Association

        9062
          Old
          Annapolis Road

        Columbia,
          Maryland 21045-1951

        Attention:
          ACE 2006-NC3

        

        
          
            
            

          

          
            -11-

            
              

            

          

          
            
            

          

        

        11. Each
          party will pay any commissions, fees and expenses, including attorney’s fees, it
          has incurred in connection with the negotiations for, documenting of and
          closing
          of the transactions contemplated by this AAR Agreement.

         

        12. This
          AAR
          Agreement shall be construed in accordance with the laws of the State of
          New
          York, without regard to conflicts of law principles (other than Section
          5-1401
          of the New York General Obligations Law which shall govern), and the
          obligations, rights and remedies of the parties hereunder shall be determined
          in
          accordance with such laws.

         

        13. No
          term
          or provision of this AAR Agreement may be waived or modified unless such
          waiver
          or modification is in writing and signed by the party against whom such
          waiver
          or modification is sought to be enforced.

         

        14. This
          AAR
          Agreement shall inure to the benefit of the successors and assigns of the
          parties hereto. Any entity into which Assignor, Assignee or Company may
          be
          merged or consolidated or which succeeds to the business or assets thereof
          shall, without the requirement for any further writing, be deemed Assignor,
          Assignee or Company, respectively, hereunder.

         

        15. For
          purposes of this AAR Agreement, including, but not limited to Section 7
          hereof,
          the Master Servicer shall be considered a third party beneficiary to this
          AAR
          Agreement entitled to all the rights and benefits accruing to the Master
          Servicer as if it were a direct party to this AAR Agreement.

         

        16. This
          AAR
          Agreement shall survive the conveyance of the Assigned Loans, the assignment
          of
          the Servicing Agreement to the extent of the servicing of the Assigned
          Loans by
          Assignor to Assignee and the termination of the Servicing
          Agreement.

         

        17. This
          AAR
          Agreement may be executed simultaneously in any number of counterparts.
          Each
          counterpart shall be deemed to be an original and all such counterparts
          shall
          constitute one and the same instrument.

         

        18. In
          the
          event that any provision of this AAR Agreement conflicts with any provision
          of
          the Servicing Agreement with respect to the Assigned Loans, the terms of
          this
          AAR Agreement shall control.

         

        19. To
          the
          fullest extent permitted under applicable law, each party hereto hereby
          irrevocably waives all right to a trial by jury in any action, proceeding
          or
          counterclaim arising out of or relating to this AAR Agreement.

         

        [SIGNATURE
          PAGE FOLLOWS]

         

        
          
            
            

          

          
            -12-

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have executed this AAR Agreement as
          of the
          day and year first above written.

         

        DB
          STRUCTURED PRODUCTS, INC.

        Assignor

         

        By:/s/
          Ernie Calabrese            

        Name:
          Ernie Calabrese

        Title:
          Director

         

        By:/s/
          Susan Valenti            

        Name:
          Susan Valenti

        Title:
          Director

         

         

        ACE
          SECURITIES CORP.

        Assignee

         

        By:/s/
          Evelyn Echevarria        

        Name:
          Evelyn Echevarria

        Title:
          Vice President

         

         

        By:/s/
          Patricia C. Harris        

        Name:
          Patricia C. Harris

        Title:
          Vice President

         

         

        NEW
          CENTURY MORTGAGE CORPORATION 

        Company

         

        By:/s/
          Karl Weiss            

        Name:
          Karl Weiss

        Title:
          Senior Vice President

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        ACKNOWLEDGED
          AND AGREED:

        WELLS
          FARGO BANK, N.A.

        Master
          Servicer and Securities Administrator

        

        

        By:/s/
          Stacey M. Taylor    

        Name:
          Stacey M. Taylor

        Title:
          Vice President

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        ATTACHMENT
          1

         

        ASSIGNED
          LOAN SCHEDULE

         

        [PROVIDED
          UPON REQUEST]

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        ATTACHMENT
          2

         

        SERVICING
          AGREEMENT

         

        
          
            DBSP
              released (subprime)

             

            MASTER
              MORTGAGE LOAN PURCHASE

            AND
              INTERIM SERVICING AGREEMENT

             

             

            NC
              CAPITAL CORPORATION

            Seller

             

             

            NEW
              CENTURY MORTGAGE CORPORATION

            Interim
              Servicer

             

             

            DB
              STRUCTURED PRODUCTS, INC.

            Initial
              Purchaser

             

             

            Dated
              as
              of March 1, 2005

             

            Fixed
              and
              Adjustable Rate Mortgage Loans

            First
              and
              Second Liens

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            TABLE
              OF
              CONTENTS

             

            
              	 	 	
                      Page

                    
	 	 	 
	
                      SECTION
                        1.

                    	
                      Definitions

                    	
                      1

                    
	
                      SECTION
                        2.

                    	
                      Agreement
                        to Purchase

                    	
                      13

                    
	
                      SECTION
                        3.

                    	
                      Mortgage
                        Loan Schedules

                    	
                      13

                    
	
                      SECTION
                        4.

                    	
                      Purchase
                        Price

                    	
                      13

                    
	
                      SECTION
                        5.

                    	
                      Examination
                        of Mortgage Files: Corporate Due Diligence

                    	
                      13

                    
	
                      SECTION
                        6.

                    	
                      Conveyance
                        from Seller to Initial Purchaser.

                    	
                      14

                    
	
                      SECTION
                        7.

                    	
                      Representations,
                        Warranties and Covenants of the Seller: 

                      Remedies
                        for Breach.

                    	
                      16

                    
	
                      SECTION
                        8.

                    	
                      Closing

                    	
                      37

                    
	
                      SECTION
                        9.

                    	
                      Closing
                        Documents.

                    	
                      38

                    
	
                      SECTION
                        10.

                    	
                      Costs

                    	
                      39

                    
	
                      SECTION
                        11.

                    	
                      Interim
                        Servicer’s Servicing Obligations

                    	
                      39

                    
	
                      SECTION
                        12.

                    	
                      Removal
                        of Mortgage Loans from Inclusion under this Agreement 

                      Upon
                        a Whole Loan Transfer or a Pass-Through Transfer on One 

                      or
                        More Reconstitution Dates

                    	
                      39

                    
	
                      SECTION
                        13.

                    	
                      The
                        Seller and the Interim Servicer.

                    	
                      41

                    
	
                      SECTION
                        14.

                    	
                      Default.

                    	
                      43

                    
	
                      SECTION
                        15.

                    	
                      Termination

                    	
                      45

                    
	
                      SECTION
                        16.

                    	
                      Successor
                        to the Interim Servicer

                    	
                      45

                    
	
                      SECTION
                        17.

                    	
                      Financial
                        Statements

                    	
                      46

                    
	
                      SECTION
                        18.

                    	
                      Mandatory
                        Delivery; Grant of Security Interest

                    	
                      46

                    
	
                      SECTION
                        19.

                    	
                      Notices

                    	
                      47

                    
	
                      SECTION
                        20.

                    	
                      Severability
                        Clause

                    	
                      47

                    
	
                      SECTION
                        21.

                    	
                      Counterparts

                    	
                      48

                    
	
                      SECTION
                        22.

                    	
                      Governing
                        Law

                    	
                      48

                    
	
                      SECTION
                        23.

                    	
                      Intention
                        of the Parties

                    	
                      48

                    
	
                      SECTION
                        24.

                    	
                      Successors
                        and Assigns

                    	
                      48

                    
	
                      SECTION
                        25.

                    	
                      Commitment
                        Letter

                    	
                      49

                    
	
                      SECTION
                        26.

                    	
                      Waivers

                    	
                      49

                    
	
                      SECTION
                        27.

                    	
                      Exhibits

                    	
                      49

                    
	
                      SECTION
                        28.

                    	
                      Nonsolicitation

                    	
                      49

                    

            

             

            
              
                
                

              

              
                i

                
                  

                

              

              
                
                

              

            

             

            
              	
                      SECTION
                        29.

                    	
                      General
                        Interpretive Principles

                    	
                      49

                    
	
                      SECTION
                        30.

                    	
                      Reproduction
                        of Documents

                    	
                      50

                    
	
                      SECTION
                        31.

                    	
                      Further
                        Agreements

                    	
                      50

                    
	
                      SECTION
                        32.

                    	
                      Guaranty

                    	
                      50

                    

            

             

            EXHIBITS

             

            
              	
                      EXHIBIT
                        1-A

                    	
                      FORM
                        OF SELLER’S OFFICER’S CERTIFICATE

                    

            

            
              	
                      EXHIBIT
                        1-B

                    	
                      FORM
                        OF INTERIM SERVICER’S OFFICER’S
                        CERTIFICATE

                    

            

            
              	
                      EXHIBIT
                        2

                    	
                      FORM
                        OF OPINION OF COUNSEL TO THE SELLER AND INTERIM
                        SERVICER

                    

            

            
              	
                      EXHIBIT
                        3

                    	
                      FORM
                        OF SECURITY RELEASE CERTIFICATION

                    

            

            
              	
                      EXHIBIT
                        4

                    	
                      FORM
                        OF ASSIGNMENT AND CONVEYANCE

                    

            

            
              	
                      EXHIBIT
                        5

                    	
                      CONTENTS
                        OF EACH MORTGAGE FILE

                    

            

            
              	
                      EXHIBIT
                        6

                    	
                      FORM
                        OF CUSTODIAL ACCOUNT LETTER
                        AGREEMENT

                    

            

            
              	
                      EXHIBIT
                        7

                    	
                      FORM
                        OF ESCROW ACCOUNT LETTER AGREEMENT

                    

            

            
              	
                      EXHIBIT
                        8

                    	
                      SERVICING
                        ADDENDUM

                    

            

            
              	
                      EXHIBIT
                        9

                    	
                      FORM
                        OF COMMITMENT LETTER

                    

            

            
              	
                      EXHIBIT
                        10

                    	
                      MORTGAGE
                        LOAN DOCUMENTS

                    

            

            
              	
                      EXHIBIT
                        11

                    	
                      FORM
                        OF MONTHLY SERVICER’S REPORT

                    

            

            
              	
                      EXHIBIT
                        12

                    	
                      SELLER’S
                        UNDERWRITING GUIDELINES

                    

            

             

            
              
                
                

              

              
                ii

                
                  

                

              

              
                
                

              

            

            

              MASTER
                MORTGAGE LOAN PURCHASE

              AND
                INTERIM SERVICING AGREEMENT

               

              This
                is a
                MASTER MORTGAGE LOAN PURCHASE AND INTERIM SERVICING AGREEMENT (the
“Agreement”),
                dated as of March 1,
                2005,
                by and
                among DB Structured Products, Inc., having an office at 60 Wall Street,
                New
                York, New York 10005 (the “Initial Purchaser”, and the Initial Purchaser or the
                Person, if any, to which the Initial Purchaser has assigned its rights
                and
                obligations hereunder as Purchaser with respect to a Mortgage Loan,
                and each of
                their respective successors and assigns, the “Purchaser”), NC Capital
                Corporation, having an office at 18400 Von Karman, Suite 1000, Irvine,
                California 92612 (the “Seller”), and New Century Mortgage Corporation, having an
                office at 18400 Von Karman, Suite 1000, Irvine, California 92612
                (the “Interim
                Servicer”).

               

              WITNESSETH
                :

               

              WHEREAS,
                the Seller desires to sell, from time to time, to the Purchaser,
                and the
                Purchaser desires to purchase, from time to time, from the Seller,
                certain
                conventional fixed and adjustable rate residential first and second
                lien
                mortgage loans, (the “Mortgage Loans”) as described herein on a servicing
                released basis, and which shall be delivered in groups of whole loans
                or
                participation interests therein, as applicable, on various dates
                as provided in
                the related Commitment Letter (each, a “Closing Date”);

               

              WHEREAS,
                each Mortgage Loan is secured by a mortgage, deed of trust or other
                security
                instrument creating a first or second lien on a residential dwelling
                located in
                the jurisdiction indicated on the Mortgage Loan Schedule for the
                related
                Mortgage Loan Package, which is to be annexed to the related Assignment
                and
                Conveyance on each Closing Date as Schedule One;

               

              WHEREAS,
                the Purchaser, the Seller and the Interim Servicer wish to prescribe
                the manner
                of the conveyance, servicing and control of the Mortgage Loans; and

               

              WHEREAS,
                following its purchase of the Mortgage Loans from the Seller, the
                Purchaser
                desires to sell some or all of the Mortgage Loans to one or more
                purchasers as a
                whole loan transfer in a whole loan or participation format or a
                public or
                private mortgage-backed securities transaction;

               

              NOW,
                THEREFORE, in consideration of the premises and mutual agreements
                set forth
                herein, and for other good and valuable consideration, the receipt
                and
                sufficiency of which are hereby acknowledged, the Purchaser, the
                Seller and the
                Interim Servicer agree as follows:

               

              SECTION
                1. Definitions.
                For
                purposes of this Agreement the following capitalized terms shall
                have the
                respective meanings set forth below.

               

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

               

              
                
                  
                  

                

                
                  1

                  
                    

                  

                

                
                  
                  

                

              

              Adjustment
                Date:
                With
                respect to each Adjustable Rate Mortgage Loan, the date set forth
                in the related
                Mortgage Note on which the Mortgage Interest Rate on such Adjustable
                Rate
                Mortgage Loan is adjusted in accordance with the terms of the related
                Mortgage
                Note.

               

              Agreement:
                This
                Master Mortgage Loan Purchase and Interim Servicing Agreement including
                all
                exhibits, schedules, amendments and supplements hereto.

               

              Appraised
                Value:
                With
                respect to any Mortgaged Property, the lesser of (i) the value thereof
                as
                determined by an appraisal made for the originator of the Mortgage
                Loan at the
                time of origination of the Mortgage Loan by an appraiser who met
                the minimum
                requirements of FNMA and FHLMC, and (ii) the purchase price paid
                for the related
                Mortgaged Property by the Mortgagor with the proceeds of the Mortgage
                Loan,
                provided, however, in the case of a Refinanced Mortgage Loan, such
                value of the
                Mortgaged Property is based solely upon the value determined by an
                appraisal
                made for the originator of such Refinanced Mortgage Loan at the time
                of
                origination of such Refinanced Mortgage Loan by an appraiser who
                met the minimum
                requirements of FNMA and FHLMC.

               

              Assignment
                and Conveyance:
                An
                assignment and conveyance of the Mortgage Loans purchased on a Closing
                Date in
                the form annexed hereto as Exhibit 4.

               

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

               

              Balloon
                Loan:
                A
                Mortgage Loan identified on the Mortgage Loan Schedule as a balloon
                mortgage
                loan.

               

              Business
                Day:
                Any day
                other than a Saturday or Sunday, or a day on which banking and savings
                and loan
                institutions in the State of California or the State of New York
                are authorized
                or obligated by law or executive order to be closed.

               

              Cash-Out
                Refinancing:
                A
                Refinanced Mortgage Loan the proceeds of which were in excess of
                the principal
                balance of any existing first mortgage on the related Mortgaged Property
                and
                related closing costs, and were used to pay any such existing first
                mortgage,
                related closing costs and subordinate mortgages on the related Mortgaged
                Property.

               

              Closing
                Date:
                The
                date or dates on which the Purchaser from time to time shall purchase
                and the
                Seller from time to time shall sell to the Purchaser, the Mortgage
                Loans listed
                on the related Mortgage Loan Schedule with respect to the related
                Mortgage Loan
                Package.

               

              Closing
                Documents:
                With
                respect to any Closing Date, the documents required pursuant to Section
                9.

               

              Code:
                The
                Internal Revenue Code of 1986, or any successor statute thereto.

               

              
                
                  
                  

                

                
                  2

                  
                    

                  

                

                
                  
                  

                

              

              Combined
                Loan-to-Value Ratio
                or
CLTV:
                With
                respect to any Mortgage Loan, the fraction, expressed as a percentage,
                the
                numerator of which is the sum of (a) the original principal balance
                of the
                Mortgage Loan, plus (b) the unpaid principal balance of any related
                subordinate
                mortgage loan or loans secured by the Mortgaged Property, and the
                denominator of
                which is the Appraised Value of the related Mortgaged Property.

               

              Commitment
                Letter:
                With
                respect to any Mortgage Loan Package purchased and sold on any Closing
                Date, the
                letter agreement between the Purchaser and the Seller, in the form
                annexed
                hereto as Exhibit 9 (including any exhibits, schedules and attachments
                thereto),
                setting forth the terms and conditions of such transaction and describing
                the
                Mortgage Loans to be purchased by the Purchaser on such Closing Date.
                A
                Commitment Letter may relate to more than one Mortgage Loan Package
                to be
                purchased on one or more Closing Dates hereunder.

               

              Condemnation
                Proceeds:
                All
                awards, compensation and settlements in respect of a taking of all
                or part of a
                Mortgaged Property by exercise of the power of condemnation or the
                right of
                eminent domain.

               

              Convertible
                Mortgage Loan:
                A
                Mortgage Loan that by its terms and subject to certain conditions
                contained in
                the related Mortgage or Mortgage Note allows the Mortgagor to convert
                the
                adjustable Mortgage Interest Rate on such Mortgage Loan to a fixed
                Mortgage
                Interest Rate.

               

              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.

               

              Custodial
                Account:
                The
                separate account or accounts, each of which shall be an Eligible
                Account,
                created and maintained pursuant to this Agreement, which shall be
                entitled “New
                Century Mortgage Corporation, as servicer, in trust for DB Structured
                Products,
                Inc.”, and established at a financial institution acceptable to the
                Purchaser.

               

              Custodial
                Agreement:
                The
                agreement governing the retention of the originals of each Mortgage
                Note,
                Mortgage, Assignment of Mortgage and other Mortgage Loan Documents.

               

              Custodian:
                The
                custodian under the Custodial Agreement, or its successor in interest
                or
                assigns, or any successor to the Custodian under the Custodial Agreement,
                as
                therein provided.

               

              Cut-off
                Date:
                The
                first day of the month in which the related Closing Date occurs or
                as otherwise
                set forth in the related Commitment Letter.

               

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

               

              
                
                  
                  

                

                
                  3

                  
                    

                  

                

                
                  
                  

                

              

              Determination
                Date:
                With
                respect to each Distribution Date, the last day of the calendar month
                immediately preceding such Distribution Date.

               

              Distribution
                Date:
                The
                twelfth (12th) day of each month, commencing, for any Mortgage Loan
                Package, on
                the twelfth day of the month next following the month in which the
                related
                Cut-off Date occurs, or if such twelfth (12th) day is not a Business
                Day, the
                first Business Day immediately following such twelfth (12th) day.

               

              Due
                Date:
                With
                respect to each Distribution Date, the day on which the Monthly Payment
                is due
                on a Mortgage Loan, exclusive of any days of grace.

               

              Due
                Period:
                With
                respect to each Distribution Date, the period commencing on the second
                day of
                the month preceding the month of the Distribution Date and ending
                on the first
                day of the month of the Distribution Date.

               

              Eligible
                Account:
                Either
                (i) an account or accounts maintained with a federal or state chartered
                depository institution or trust company the short-term unsecured
                debt
                obligations of which (or, in the case of a depository institution
                or trust
                company that is the principal subsidiary of a holding company, the
                short-term
                unsecured debt obligations of such holding company of which) are
                rated A-1 by
                S&P or Prime-1 by Moody’s (or a comparable rating if another rating agency
                is specified by the Initial Purchaser by written notice to the Seller)
                at the
                time any amounts are held on deposit therein, (ii) an account or
                accounts the
                deposits in which are fully insured by the FDIC or (iii) a trust
                account or
                accounts maintained with a federal or state chartered depository
                institution or
                trust company acting in its fiduciary capacity. Eligible Accounts
                may bear
                interest.

               

              Escrow
                Account:
                The
                separate trust accounts created and maintained pursuant to this Agreement
                which
                shall be entitled “New Century Mortgage Corporation, as servicer, in trust for
                DB Structured Products, Inc. and various Mortgagors, Fixed and Adjustable
                Rate
                Mortgage Loans”, and established at a financial institution acceptable to the
                Purchaser.

               

              Escrow
                Payments:
                The
                amounts constituting ground rents, taxes, assessments, water charges,
                sewer
                rents, Primary Insurance Policy premiums, fire and hazard insurance
                premiums and
                other payments required to be escrowed by the Mortgagor with the
                Mortgagee
                pursuant to the terms of any Mortgage Note or Mortgage.

               

              Event
                of Default:
                Any one
                of the events enumerated in Subsection 14. 1.

               

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

               

              FHLMC:
                Freddie
                Mac 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 repurchased by the Seller pursuant
                to this
                Agreement), a determination made by the Interim Servicer that all
                Insurance
                Proceeds, Liquidation Proceeds and other payments or recoveries which
                the
                Interim Servicer, in its reasonable good faith judgment, expects
                to be finally
                recoverable in respect thereof have been so recovered. The Interim
                Servicer
                shall maintain records, prepared by a servicing officer of the Interim
                Servicer,
                of each Final Recovery Determination.

               

              
                
                  
                  

                

                
                  4

                  
                    

                  

                

                
                  
                  

                

              

              First
                Lien:
                With
                respect to each Mortgaged Property, the lien of the mortgage, deed
                of trust or
                other instrument securing a Mortgage Note which creates a first lien
                on the
                Mortgaged Property.

               

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

               

              Flood
                Zone Service Contract:
                A
                transferable contract maintained for the Mortgaged Property with
                a nationally
                recognized flood zone service provider for the purpose of obtaining
                the current
                flood zone status relating to such Mortgaged Property.

               

              FNMA:
                Fannie
                Mae or any successor thereto.

               

              Gross
                Margin:
                With
                respect to any Adjustable Rate Mortgage Loan, the fixed percentage
                amount set
                forth in the related Mortgage Note and the related Mortgage Loan
                Schedule that
                is added to the Index on each Adjustment Date in accordance with
                the terms of
                the related Mortgage Note to determine the new Mortgage Interest
                Rate for such
                Mortgage Loan.

               

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

               

              Index:
                With
                respect to any Adjustable Rate Mortgage Loan, the index identified
                on the
                Mortgage Loan Schedule and set forth in the related Mortgage Note
                for the
                purpose of calculating the interest rate thereon.

               

              Initial
                Closing Date:
                The
                Closing Date on which the Initial Purchaser purchases and the Seller
                sells the
                first Mortgage Loan Package hereunder.

               

              Initial
                Purchaser:
                DB
                Structured Products, Inc., or any successor thereto or its
                assignees.

               

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

               

              Interim
                Servicing Period:
                With
                respect to any Mortgage Loan, the period commencing on the related
                Closing Date
                and ending on the thirtieth day after such Closing Date (or if such
                day is not a
                Business Day, the first Business Day immediately following such day).
                The
                Interim Servicing Period shall continue for additional thirty (30)
                day periods
                following the expiration of the prior thirty (30) day period, unless
                the
                Purchaser notifies the Interim Servicer at least twenty (20) days
                prior to the
                expiration of an Interim Servicing Period that the Interim Servicer
                shall be
                terminated as interim servicer at the expiration of the Interim Servicing
                Period.

               

              
                
                  
                  

                

                
                  5

                  
                    

                  

                

                
                  
                  

                

              

              Lender
                Paid Mortgage Insurance Policy
                or
LPMI
                Policy:
                A
                policy of mortgage guaranty insurance (other than a Primary Insurance
                Policy)
                issued by a Qualified Insurer in which the owner or servicer of the
                Mortgage
                Loan is responsible for the premiums associated with such mortgage
                insurance
                policy.

               

              Liquidation
                Proceeds:
                Amounts, other than Insurance Proceeds and Condemnation Proceeds,
                received in
                connection with the liquidation of a defaulted Mortgage Loan through
                trustee’s
                sale, foreclosure sale or otherwise, other than amounts received
                following the
                acquisition of REO Property and prior to an REO Disposition.

               

              Loan-to-Value
                Ratio
                or
LTV:
                With
                respect to any Mortgage Loan as of any date of determination, the
                ratio on such
                date of the outstanding principal amount of the Mortgage Loan, to
                the Appraised
                Value of the Mortgaged Property.

               

              Maximum
                Mortgage Interest Rate:
                With
                respect to each Adjustable Rate Mortgage Loan, a rate that is set
                forth on the
                related Mortgage Loan Schedule and in the related Mortgage Note and
                is the
                maximum interest rate to which the Mortgage Interest Rate on such
                Mortgage Loan
                may be increased on any Adjustment Date.

               

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

               

              MERS
                Mortgage Loan:
                Any
                Mortgage Loan registered with MERS on the MERS System.

               

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

               

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

               

              Minimum
                Mortgage Interest Rate:
                With
                respect to each Adjustable Rate Mortgage Loan, a rate that is set
                forth on the
                related Mortgage Loan Schedule and in the related Mortgage Note and
                is the
                minimum interest rate to which the Mortgage Interest Rate on such
                Mortgage Loan
                may be decreased on any Adjustment Date.

               

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

               

              Monthly
                Payment:
                With
                respect to any Mortgage Loan, the scheduled combined payment of principal
                and
                interest, and taxes and insurance, if applicable, payable by a Mortgagor
                under
                the related Mortgage Note on each Due Date.

               

              Moody’s:
                Moody’s
                Investors Service, Inc. or its successor in interest.

               

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

               

              
                
                  
                  

                

                
                  6

                  
                    

                  

                

                
                  
                  

                

              

              Mortgagee:
                The
                mortgagee or beneficiary named in the Mortgage and the successors
                and assigns of
                such mortgagee or beneficiary.

               

              Mortgage
                File:
                The
                items pertaining to a particular Mortgage Loan referred to in Exhibit
                5 annexed
                hereto, and any additional documents required to be added to the
                Mortgage File
                pursuant to this Agreement or the related Commitment Letter.

               

              Mortgage
                Interest Rate:
                With
                respect to each Fixed Rate Mortgage Loan, the fixed annual rate of
                interest
                provided for in the related Mortgage Note and, with respect to each
                Adjustable
                Rate Mortgage Loan, the annual rate that interest accrues on such
                Adjustable
                Rate Mortgage Loan from time to time in accordance with the provisions
                of the
                related Mortgage Note.

               

              Mortgage
                Loan:
                Each
                first or second lien, residential mortgage loan, sold, assigned and
                transferred
                to the Purchaser pursuant to this Agreement and the related Commitment
                Letter
                and identified on the Mortgage Loan Schedule annexed to this Agreement
                on the
                related Closing Date, which Mortgage Loan includes without limitation
                the
                Mortgage File, the Monthly Payments, Principal Prepayments, Liquidation
                Proceeds, Condemnation Proceeds, Insurance Proceeds, REO Disposition
                proceeds,
                and all other rights, benefits, proceeds and obligations arising
                from or in
                connection with such Mortgage Loan.

               

              Mortgage
                Loan Documents:
                The
                documents listed in Exhibit 10 hereto pertaining to any Mortgage
                Loan.

               

              Mortgage
                Loan Package:
                The
                Mortgage Loans listed on a Mortgage Loan Schedule, delivered to the
                Custodian
                and the Purchaser at least three (3) Business Days prior to the related
                Closing
                Date and attached to an Assignment and Conveyance as Schedule One
                on the related
                Closing Date.

               

              Mortgage
                Loan Schedule:
                With
                respect to each Mortgage Loan Package, the schedule of Mortgage Loans
                to be
                annexed to an Assignment and Conveyance as Schedule One on each Closing
                Date for
                the Mortgage Loan Package delivered on such Closing Date in both
                hard copy and
                electronic form, such schedule setting forth the following information
                with
                respect to each Mortgage Loan in the Mortgage Loan Package: (1) the
                Seller’s
                Mortgage Loan identifying
                number; (2) the Mortgagor’s first and last name; (3) the street address of the
                Mortgaged Property including the city, state and zip code; (4) a
                code indicating
                whether the Mortgaged Property is owner-occupied; (5) the type of
                Residential
                Dwelling constituting the Mortgaged Property; (6) the original months
                to
                maturity; (7) the original date of the Mortgage Loan and the remaining
                months to
                maturity from the Cut-off Date, based on the original amortization
                schedule; (8)
                the Loan-to-Value Ratio and, if the Mortgage Loan is a Second Lien,
                the Combined
                Loan-to-Value Ratio, each at origination; (9) the Mortgage Interest
                Rate in
                effect immediately following the Cut-off Date; (10) the date on which
                the first
                Monthly Payment was due on the Mortgage Loan; (11) the stated maturity
                date;
                (12) the amount of the Monthly Payment at origination; (13) the amount
                of the
                Monthly Payment as of the Cut-off Date; (14) the last Due Date on
                which a
                Monthly Payment was actually applied to the unpaid Stated Principal
                Balance;
                (15) the original principal amount of the Mortgage Loan and, if such
                Mortgage
                Loan is in a junior lien position, the principal balance of the First
                Lien at
                origination of the Mortgage 

               

              
                
                  
                  

                

                
                  7

                  
                    

                  

                

                
                  
                  

                

              

              Loan;
                (16) the Stated Principal Balance of the Mortgage Loan as of the
                close of
                business on the Cut-off Date; (17) with respect to each Adjustable
                Rate Mortgage
                Loan, the first Adjustment Date; (18) with respect to each Adjustable
                Rate
                Mortgage Loan, the Gross Margin; (19) a code indicating the purpose
                of the loan
                (i.e., purchase financing, Rate/Term Refinancing, Cash-Out Refinancing);
                (20)
                with respect to each Adjustable Rate Mortgage Loan, the Maximum Mortgage
                Interest Rate under the terms of the Mortgage Note; (21) with respect
                to each
                Adjustable Rate Mortgage Loan, the Minimum Mortgage Interest Rate
                under the
                terms of the Mortgage Note; (22) the Mortgage Interest Rate at origination;
                (23)
                with respect to each Adjustable Rate Mortgage Loan, the Periodic
                Rate Cap; (24)
                with respect to each Adjustable Rate Mortgage Loan, the first Adjustment
                Date
                immediately following the related Cut-off Date; (25) with respect
                to each
                Adjustable Rate Mortgage Loan, the Index; (26) the date on which
                the first
                Monthly Payment was due on the Mortgage Loan and, if such date is
                not consistent
                with the Due Date currently in effect, such Due Date; (27) a code
                indicating
                whether the Mortgage Loan is an Adjustable Rate Mortgage Loan or
                a Fixed Rate
                Mortgage Loan; (28) a code indicating the documentation style (i.e.,
                full,
                alternative or reduced); (29) a code indicating if the Mortgage Loan
                is subject
                to a Primary Insurance Policy or LPMI Policy; and if so, the provider
                of such
                insurance, the coverage percentage of such insurance and the fee
                payable to the
                provider in respect of such insurance; (30) the Appraised Value of
                the Mortgaged
                Property; (31) the sale price of the Mortgaged Property, if applicable;
                (32) 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; (33)
                the product type (e.g., 2/28, 15 year fixed, 30 year fixed, 15/30
                balloon,
                etc.); (34) the Mortgagor’s debt to income ratio; (35) a code indicating whether
                the Mortgaged Property is subject to a First Lien or a Second Lien;
                (36) a code
                indicating the Credit Score of the Mortgagor at the time of origination
                of the
                Mortgage Loan; (37) the Mortgage Loan’s payment history; (38) a code indicating
                the form of appraisal (i.e. form 1004, 2055, etc.); (39) a code indicating
                whether the Mortgage Loan is a MERS Mortgage Loan and, if so, the
                corresponding
                MIN; and (40) 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; (41) the amount of any “points and fees” payable by the Mortgagor in
                connection with the origination of such Mortgage Loan; (42) the Mortgagor’s
                income at origination; (43) the amortized original term to maturity
                as of the
                Cut-off Date; (44) with respect to each Adjustable Rate Mortgage
                Loan, a code
                indicating the frequency of adjustment of the related Mortgage Interest
                Rate;
                (45) the number of units in the related Mortgaged Property; (46)
                a code
                indicating whether the related Mortgagor is self-employed; (47) a
                code
                indicating the credit grade; (48) Tax Service Contract provider;
                and (49) Tax
                Service Contract number. With respect to the Mortgage Loan Package
                in the
                aggregate, the Mortgage Loan Schedule shall set forth the following
                information,
                as of the related Cut-off Date: (1) the number of Mortgage Loans;
                (2) the
                current principal balance of the Mortgage Loans; (3) the weighted
                average
                Mortgage Interest Rate of the Mortgage Loans; and (4) the weighted
                average
                maturity of the Mortgage Loans. 

               

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

               

              Mortgaged
                Property:
                The
                Mortgagor’s real property securing repayment of a related Mortgage Note,
                consisting of a fee simple interest in a single parcel of real property
                improved
                by a Residential Dwelling.

               

              
                
                  
                  

                

                
                  8

                  
                    

                  

                

                
                  
                  

                

              

              Mortgagor:
                The
                obligor on a Mortgage Note, the owner of the Mortgaged Property and
                the grantor
                or mortgagor named in the related Mortgage and such grantor’s or mortgagor’s
                successors in title to the Mortgaged Property.

               

              Net
                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 Interest Rate for such Mortgage Loan minus the Servicing
                Fee
                Rate.

              

              Officer’s
                Certificate:
                A
                certificate signed by the Chairman of the Board or the Vice Chairman
                of the
                Board or a President or a Vice President and by the Treasurer or
                the Secretary
                or one of the Assistant Treasurers or Assistant Secretaries of the
                Person on
                behalf of whom such certificate is being delivered.

               

              Opinion
                of Counsel:
                A
                written opinion of counsel, who may be salaried counsel for the Person
                on behalf
                of whom the opinion is being given, reasonably acceptable to each
                Person to whom
                such opinion is addressed.

               

              Pass-Through
                Transfer:
                The
                sale or transfer of some or all of the Mortgage Loans by the Purchaser
                to a
                trust to be formed as part of a publicly issued or privately placed
                mortgage-backed securities transaction.

               

              Periodic
                Rate Cap:
                With
                respect to each Adjustable Rate Mortgage Loan and any Adjustment
                Date therefor,
                a number of percentage points per annum that is set forth in the
                related
                Mortgage Loan Schedule and in the related Mortgage Note, which is
                the maximum
                amount by which the Mortgage Interest Rate for such Adjustable Rate
                Mortgage
                Loan may increase (without regard to the Maximum Mortgage Interest
                Rate) or
                decrease (without regard to the Minimum Mortgage Interest Rate) on
                such
                Adjustment Date from the Mortgage Interest Rate in effect immediately
                prior to
                such Adjustment Date.

               

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

               

              Prepayment
                Charge:
                With
                respect to any Mortgage Loan, any prepayment penalty or premium thereon
                payable
                in connection with a principal prepayment on such Mortgage Loan pursuant
                to the
                terms of the related Mortgage Note.

               

              Primary
                Insurance Policy:
                A
                policy of primary mortgage guaranty insurance issued by a Qualified
                Insurer.

               

              Principal
                Prepayment:
                Any
                payment or other recovery of principal on a Mortgage Loan which is
                received in
                advance of its scheduled Due Date, including any Prepayment Charge,
                which 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.

               

              
                
                  
                  

                

                
                  9

                  
                    

                  

                

                
                  
                  

                

              

              Purchase
                Price:
                The
                price paid on the related Closing Date by the Purchaser to the Seller
                pursuant
                to the related Commitment Letter in exchange for the Mortgage Loans
                purchased on
                such Closing Date as provided in Section 4.

               

              Qualified
                Insurer:
                Any
                insurer which meets the requirements of FNMA and FHLMC.

               

              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 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 Interest Rate not less than (and not more than one percentage
                point in
                excess of) the Mortgage Interest Rate of the Deleted Mortgage Loan,
                (iii) have a
                remaining term to maturity not greater than (and not less than) that
                of the
                Deleted Mortgage Loan, (iv) have the same Due Date as the Due Date
                on the
                Deleted Mortgage Loan, (v) 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, (vi) be covered under a Primary Insurance
                Policy
                if such Qualified Substitute Mortgage Loan has a Loan-to-Value Ratio
                in excess
                of 80% and the Deleted Mortgage Loan was covered under a Primary
                Insurance
                Policy, (vii) conform to each representation and warranty set forth
                in
                Subsection 7.02 of this Agreement and (viii) be the same type of
                mortgage loan
                (i.e. fixed or adjustable rate with the same Gross Margin and Index
                as 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 Interest Rates described in clause (ii) hereof
                shall be
                determined on the basis of weighted average Mortgage Interest Rates
                and shall be
                satisfied as to each such mortgage loan, the terms described in clause
                (iii)
                shall be determined on the basis of weighted average remaining terms
                to
                maturity, the Loan-to-Value Ratios described in clause (v) 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 (vii) hereof must be satisfied as to each Qualified Substitute
                Mortgage
                Loan or in the aggregate, as the case may be. In addition, the substitution
                of
                more than one Mortgage Loan pursuant to the previous sentence shall
                be subject
                to the Purchaser’s approval in its sole discretion.

               

              Rate/Term
                Refinancing:
                A
                Refinanced Mortgage Loan, the proceeds of which are not in excess
                of the
                existing first mortgage loan on the related Mortgaged Property and
                related
                closing costs, and were used exclusively to satisfy the then existing
                first
                mortgage loan of the Mortgagor on the related Mortgaged Property
                and to pay
                related closing costs.

               

              Reconstitution
                Agreements:
                The
                agreement or agreements entered into by the Seller and the Purchaser
                and/or
                certain third parties on the Reconstitution Date or Dates with respect
                to any or
                all of the Mortgage Loans serviced hereunder, in connection with
                a Whole Loan
                Transfer or a Pass-Through Transfer as provided in Section 12.

               

              
                
                  
                  

                

                
                  10

                  
                    

                  

                

                
                  
                  

                

              

              Reconstitution
                Date:
                The
                date or dates on which any or all of the Mortgage Loans serviced
                under this
                Agreement shall be removed from this Agreement and reconstituted
                as part of a
                Whole Loan Transfer or Pass-Through Transfer pursuant to Section
                12
                hereof.

               

              Record
                Date:
                With
                respect to each Distribution Date, the last Business Day of the month
                immediately preceding the month in which such Distribution Date
                occurs.

               

              Refinanced
                Mortgage Loan:
                A
                Mortgage Loan the proceeds of which were not used to purchase the
                related
                Mortgaged Property.

               

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

               

              REMIC
                Provisions:
                Provisions of the federal income tax law relating to REMICs, which
                appear in
                Sections 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.

               

              REO
                Account:
                The
                separate trust account or accounts created and maintained pursuant
                to this
                Agreement which shall be entitled “New Century Mortgage Corporation, in trust
                for the Purchaser, as of [date of acquisition of title], Fixed and
                Adjustable
                Rate Mortgage Loans”.

               

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

               

              REO
                Property:
                A
                Mortgaged Property acquired as a result of the liquidation of a Mortgage
                Loan.

               

              Repurchase
                Price:
                With
                respect to any Mortgage Loan, (1) a price equal to (A) during the
                first twelve
                months following the related Closing Date (i) the purchase price
                percentage used
                to calculate the Purchase Price as stated in the related Commitment
                Letter,
                times the Stated Principal Balance of the Mortgage Loan so repurchased
                plus (ii)
                accrued interest thereon to the day prior to the day that such repurchase
                occurs, and (B) thereafter (i) the Stated Principal Balance of the
                Mortgage Loan
                so repurchased, plus (ii) accrued interest thereon to the day prior
                to the day
                that such repurchase occurs, or (2) such other amount set forth in
                the related
                Commitment Letter.

               

              Residential
                Dwelling:
                Any one
                of the following: (i) a one-family dwelling, (ii) a two- to four-family
                dwelling, (iii) a one-family dwelling unit in a FNMA eligible condominium
                project, (iv) a one-family dwelling in a planned unit development
                or (v) a
                manufactured home which is a “single family residence” as defined in Section
                25(e)(10) of the Code and constitutes real property, none of which
                is a
                co-operative, a commercial property, an agricultural property or
                a mixed-use
                property.

               

              Second
                Lien:
                With
                respect to each Mortgaged Property, the lien of the mortgage, deed
                of trust or
                other instrument securing a Mortgage Note which creates a second
                lien on the
                Mortgaged Property.

               

              
                
                  
                  

                

                
                  11

                  
                    

                  

                

                
                  
                  

                

              

              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.

               

              Servicing
                Addendum:
                The
                terms and conditions attached hereto as Exhibit 8 which will govern
                the
                servicing of the Mortgage Loans by the Interim Servicer during the
                Interim
                Servicing Period.

               

              Servicing
                Advances:
                All
                customary, reasonable and necessary “out-of-pocket” costs and expenses incurred
                by the Interim Servicer in the performance of its servicing obligations,
                including, but not limited to, the cost of (i) preservation, restoration
                and
                repair of a Mortgaged Property, (ii) any enforcement or judicial
                proceedings
                with respect to a Mortgage Loan, including foreclosure actions and
                (iii) the
                management and liquidation of REO Property.

               

              Servicing
                Fee:
                With
                respect to each Mortgage Loan, the monthly fee set forth in the related
                Commitment Letter which the Purchaser shall pay to the Interim Servicer.
                The
                obligation of the Purchaser to pay the Servicing Fee is limited to,
                and payable
                solely from, the interest portion (including recoveries with respect
                to interest
                from Liquidation Proceeds and other proceeds, to the extent permitted
                by Section
                11.05 of the Servicing Addendum) of related Monthly Payment collected
                by the
                Interim Servicer, or as otherwise provided under Section 11.05 of
                the Servicing
                Addendum. If the Interim Servicing Period includes any partial month,
                the
                Servicing Fee for such month shall be pro rated at a per diem rate
                based upon a
                30-day month.

               

              Servicing
                File:
                With
                respect to each Mortgage Loan, the file retained by the Seller consisting
                of
                originals of all documents in the Mortgage File which are not delivered
                to the
                Purchaser or the Custodian and copies of all of the Mortgage Loan
                Documents for
                such Mortgage Loan.

               

              Servicing
                Transfer Date:
                With
                respect to any Mortgage Loan, the date on which the Seller transfers
                the
                servicing of a Mortgage Loan to the Initial Purchaser or its designee,
                which
                date shall be the day immediately following the expiration of the
                related
                Interim Servicing Period.

               

              S&P:
                Standard & Poor’s, a division of the McGraw-Hill Companies, Inc., or its
                successor in interest.

               

              Stated
                Principal Balance:
                As to
                each Mortgage Loan as of any date of determination, (i) the principal
                balance of
                the Mortgage Loan as of the Cut-off Date after giving effect to payments
                of
                principal received on or before such date, minus (ii) all amounts
                previously
                distributed to the Purchaser with respect to the related Mortgage
                Loan
                representing payments or recoveries of principal.

               

              Tax
                Service Contract:
                A
                transferable contract maintained for the Mortgaged Property with
                a tax service
                provider for the purpose of obtaining current information from local
                taxing
                authorities relating to such Mortgaged Property.

               

              
                
                  
                  

                

                
                  12

                  
                    

                  

                

                
                  
                  

                

              

              Underwriting
                Guidelines:
                The
                Seller’s written underwriting guidelines attached hereto as Exhibit 12 in
                effect
                with respect to the Mortgage Loans purchased by the Purchaser on
                the Initial
                Closing Date, which may be amended, supplemented or modified from
                time to time
                thereafter.

               

              Whole
                Loan Transfer:
                Any
                sale or transfer of some or all of the Mortgage Loans by the Purchaser
                to a
                third party, which sale or transfer is not a Pass-Through Transfer.

               

              SECTION
                2. Agreement
                to Purchase.
                The
                Seller agrees to sell, and the Purchaser agrees to purchase, from
                time-to-time,
                Mortgage Loans having an aggregate principal balance on the related
                Cut-off Date
                in an amount as set forth in the related Commitment Letter, or in
                such other
                amount as agreed to by the Purchaser and the Seller as evidenced
                by the actual
                aggregate principal balance of the Mortgage Loans accepted by the
                Purchaser on
                the related Closing Date.

               

              SECTION
                3. Mortgage
                Loan Schedules.
                The
                Seller shall deliver the Mortgage Loan Schedule for a Mortgage Loan
                Package to
                be purchased on a particular Closing Date to the Purchaser at least
                three (3)
                Business Days prior to the related Closing Date or as otherwise set
                forth in the
                related Commitment Letter.

               

              SECTION
                4. Purchase
                Price.
                The
                Purchase Price for each Mortgage Loan listed on the related Mortgage
                Loan
                Schedule shall be the percentage of par as stated in the related
                Commitment
                Letter (subject to adjustment as provided therein), multiplied by
                its Stated
                Principal Balance as of the related Cut-off Date. If so provided
                in the related
                Commitment Letter, portions of the Mortgage Loans shall be priced
                separately.

               

              In
                addition to the Purchase Price as described above, the Initial Purchaser
                shall
                pay to the Seller, at closing, accrued interest on the Stated Principal
                Balance
                of each Mortgage Loan as of the related Cut-off Date at its Net Mortgage
                Rate
                from the paid-through date through the day prior to the Closing
                Date

               

              The
                Purchaser shall own and be entitled to receive with respect to each
                Mortgage
                Loan purchased, (1) all recoveries of principal collected after the
                related
                Cut-off Date and (2) all payments of interest on the Mortgage Loans
                net of the
                Servicing Fee (minus that portion of any such interest payment that
                is allocable
                to the period prior to the related Cut-off Date). All payments of
                principal and
                interest, less the applicable Servicing Fee, due on a Due Date following
                the
                related Cut-off Date shall belong to the Purchaser.

               

              SECTION
                5. Examination
                of Mortgage Files: Corporate Due Diligence.
                In
                addition to the rights granted to the Initial Purchaser under the
                related
                Commitment Letter to underwrite the Mortgage Loans and review the
                Mortgage Files
                prior to the related Closing Date, the Seller or the Interim Servicer,
                as
                applicable, shall (a) deliver to the Custodian in escrow, for examination
                with
                respect to each Mortgage Loan to be purchased on such Closing Date,
                the related
                Mortgage File, including the Assignment of Mortgage, pertaining to
                each Mortgage
                Loan, or (b) make the related Mortgage File available to the Initial
                Purchaser
                for examination at the Seller’s offices or such other location as shall
                otherwise be agreed upon by the Initial Purchaser, the Interim Servicer
                and the
                Seller. Such examination may be made by the Initial Purchaser or
                its designee at
                any reasonable time before or after the related Closing Date. If
                the Initial
                Purchaser makes such examination prior to the related Closing Date
                and
                identifies any Mortgage Loans that do not conform to the terms of
                the related
                Commitment Letter or the Seller’s Underwriting Guidelines, such Mortgage Loans
                may, at the Initial Purchaser’s option, be rejected for purchase by the Initial
                Purchaser. If not purchased by the Initial Purchaser, such Mortgage
                Loans shall
                be deleted from the related Mortgage Loan Schedule. The Initial Purchaser
                may,
                at its option and without notice to the Seller, purchase all or part
                of any
                Mortgage Loan Package without conducting any partial or complete
                examination.
                The fact that the Initial Purchaser has conducted or has determined
                not to
                conduct any partial or complete examination of the Mortgage Files
                shall not
                affect the Initial Purchaser’s (or any of its successors’) rights to demand
                repurchase or other relief or remedy provided for in this
                Agreement.

               

              
                
                  
                  

                

                
                  13

                  
                    

                  

                

                
                  
                  

                

              

              The
                Initial Purchaser shall have the opportunity to conduct a corporate
                due
                diligence of the Seller, including but not limited to, on site review
                of the
                Seller's facilities and discussions with the Seller's management.
                The Initial
                Purchaser may conduct such review prior to or following the Initial
                Closing
                Date. In addition, the Initial Purchaser may perform additional reviews
                as the
                Initial Purchaser, in its reasonable discretion, deems necessary.

               

              
                	 	
                        SECTION
                          6.

                      	
                        Conveyance
                          from Seller to Initial Purchaser.

                      

              

               

              
                	 	
                        Subsection
                          6.01.

                      	
                        Conveyance
                          of Mortgage Loans; Possession of Servicing
                          Files.

                      

              

               

              The
                Seller and the Interim Servicer, simultaneously with the payment
                of the Purchase
                Price, shall execute and deliver to the Initial Purchaser an Assignment
                and
                Conveyance with respect to the related Mortgage Loan Package in the
                form
                attached hereto as Exhibit 4. The Servicing File retained by the
                Interim
                Servicer with respect to each Mortgage Loan pursuant to this Agreement
                shall be
                appropriately identified in the Interim Servicer’s computer system to reflect
                clearly the sale of such related Mortgage Loan to the Purchaser.
                The Interim
                Servicer shall release from its custody the contents of any Servicing
                File
                retained by it only in accordance with this Agreement, except when
                such release
                is required in connection with a repurchase of any such Mortgage
                Loan pursuant
                to Subsection 7.03 or 7.04.

               

              In
                addition, in connection with the assignment of any MERS Mortgage
                Loans, the
                Interim Servicer agrees that it will cause, at its own expense, the
                MERS System
                to indicate that such Mortgage Loans have been assigned by the Seller
                to the
                Purchaser in accordance with this Agreement by including (or deleting,
                in the
                case of Mortgage Loans which are repurchased in accordance with this
                Agreement
                prior to the related Servicing Transfer Date) in such computer files
                the
                information required by the MERS System to identify the Purchaser
                of such
                Mortgage Loans.

               

              
                	 	
                        Subsection
                          6.02.

                      	
                        Books
                          and Records.

                      

              

               

              Record
                title to each Mortgage and the related Mortgage Note as of the related
                Closing
                Date shall be in the name of the Seller, the Interim Servicer, the
                Purchaser,
                the Custodian or one or more designees of the Purchaser, as the Purchaser
                shall
                designate. Notwithstanding the foregoing, beneficial ownership of
                each Mortgage
                and the related Mortgage Note shall be vested solely in the Purchaser
                or the
                appropriate designee of the Purchaser, as the case may be. All rights
                arising
                out of the Mortgage Loans including, but not limited to, all funds
                received by
                the Interim Servicer after the related Cut-off Date on or in connection
                with a
                Mortgage Loan as provided in Section 4 shall be vested in the Purchaser
                or one
                or more designees of the Purchaser; provided, however, that all such
                funds
                received on or in connection with a Mortgage Loan as provided in
                Section 4 shall
                be received and held by the Interim Servicer in trust for the benefit
                of the
                Purchaser or the assignee of the Purchaser, as the case may be, as
                the owner of
                the Mortgage Loans pursuant to the terms of this Agreement.

               

              
                
                  
                  

                

                
                  14

                  
                    

                  

                

                
                  
                  

                

              

              It
                is the
                express intention of the parties that the transactions contemplated
                by this
                Agreement be, and be construed as, a sale of the Mortgage Loans by
                the Seller
                and not a pledge of the Mortgage Loans by the Seller to the Purchaser
                to secure
                a debt or other obligation of the Seller. Consequently, the sale
                of each
                Mortgage Loan shall be reflected as a sale on the Seller’s business records, tax
                returns and financial statements. In the event, for any reason, any
                transaction
                contemplated herein is construed by any court or regulatory authority
                as a
                borrowing rather than as a sale, the Seller and the Purchaser intend
                that the
                Purchaser or its assignee, as the case may be, shall have a perfected
                first
                priority security interest in the Mortgage Loans, the servicing rights
                appurtenant to the Mortgage Loans, the Custodial Account and the
                proceeds of any
                and all of the foregoing (collectively, the “Collateral”), free and clear of
                adverse claims. In such case, the Seller shall be deemed to have
                hereby granted
                to the Purchaser or its assignee, as the case may be, a first priority
                security
                interest in and lien upon the Collateral, free and clear of adverse
                claims. In
                such event, the related Commitment Letter and this Agreement shall
                constitute a
                security agreement, the Custodian shall be deemed to be an independent
                custodian
                for purposes of perfection of the security interest granted to the
                Purchaser or
                its assignee, as the case may be, and the Purchaser or its assignee,
                as the case
                may be, shall have all of the rights of a secured party under applicable
                law.

               

              
                	 	
                        Subsection
                          6.03.

                      	
                        Delivery
                          of Mortgage Loan Documents.

                      

              

               

              Pursuant
                to the Custodial Agreement between the Initial Purchaser and the
                Custodian, the
                Seller or the Interim Servicer, as applicable, shall from time to
                time in
                connection with each Closing Date, at least five (5) Business Days
                prior to such
                Closing Date, deliver and release to the Custodian those Mortgage
                Loan Documents
                as required by the Custodial Agreement with respect to each Mortgage
                Loan to be
                purchased and sold on the related Closing Date and set forth on the
                related
                Mortgage Loan Schedule delivered with such Mortgage Loan Documents.

               

              The
                Custodian shall certify its receipt of all such Mortgage Loan Documents
                required
                to be delivered pursuant to the Custodial Agreement for the related
                Closing
                Date, as evidenced by the Trust Receipt and Initial Certification
                of the
                Custodian in the form annexed to the Custodial Agreement. The Interim
                Servicer
                shall be responsible for maintaining the Custodial Agreement during
                the Interim
                Servicing Period. The fees and expenses of the Custodian shall be
                paid by the
                Purchaser and the Seller as set forth in the related Commitment
                Letter.

               

              The
                Interim Servicer shall forward to the Custodian original documents
                evidencing an
                assumption, modification, consolidation or extension of any Mortgage
                Loan
                entered into in accordance with this Agreement within two weeks of
                their
                execution, provided, however, that the Interim Servicer shall provide
                the
                Custodian with a certified true copy of any such document submitted
                for
                recordation within two weeks of its execution, and shall provide
                the original of
                any document submitted for recordation or a copy of such document
                certified by
                the appropriate public recording office to be a true and complete
                copy of the
                original within ninety days of its submission for recordation.

               

              
                
                  
                  

                

                
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              SECTION
                7. Representations,
                Warranties and Covenants of the Seller: Remedies for Breach.

               

              
                	 	
                        Subsection
                          7.01.

                      	
                        Representations
                          and Warranties Respecting the Seller and the Interim
                          Servicer.

                      

              

               

              (a) The
                Seller represents, warrants and covenants to the Purchaser as of
                the Initial
                Closing Date and each subsequent Closing Date or as of such date
                specifically
                provided herein or in the applicable Assignment and Conveyance:

               

              (i) The
                Seller is duly organized, validly existing and in good standing under
                the laws
                of the state of California and is and will remain in compliance with
                the laws of
                each state in which any Mortgaged Property is located to the extent
                necessary to
                ensure the enforceability of each Mortgage Loan in accordance with
                the terms of
                this Agreement. No licenses or approvals obtained by the Seller have
                been
                suspended or revoked by any court, administrative agency, arbitrator
                or
                governmental body and no proceedings are pending which might result
                in such
                suspension or revocation;

               

              (ii) The
                Seller has the full power and authority to hold each Mortgage Loan,
                to sell each
                Mortgage Loan, and to execute, deliver and perform, and to enter
                into and
                consummate, all transactions contemplated by this Agreement. The
                Seller has duly
                authorized the execution, delivery and performance of this Agreement,
                has duly
                executed and delivered this Agreement, and this Agreement, assuming
                due
                authorization, execution and delivery by the Purchaser, constitutes
                a legal,
                valid and binding obligation of the Seller, enforceable against it
                in accordance
                with its terms except as the enforceability thereof may be limited
                by
                bankruptcy, insolvency or reorganization;

               

              (iii) The
                execution and delivery of this Agreement by the Seller and the performance
                of
                and compliance with the terms of this Agreement will not violate
                the Seller’s
                articles of incorporation or by-laws or constitute a default under
                or result in
                a breach or acceleration of, any material contract, agreement or
                other
                instrument to which the Seller is a party or which may be applicable
                to the
                Seller or its assets;

               

              (iv) The
                Seller is not in violation of, and the execution and delivery of
                this Agreement
                by the Seller 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 Seller 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 Seller or
                its assets or might have consequences that would materially and adversely
                affect
                the performance of its obligations and duties hereunder;

               

              
                
                  
                  

                

                
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              (v) The
                Seller is an approved seller for FNMA and 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 Seller unable to comply with FNMA, FHLMC or HUD eligibility
                requirements or which would require notification to FNMA, FHLMC or
                HUD;

               

              (vi) The
                Seller 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) The
                Mortgage Loan Documents and any other documents required to be delivered
                with
                respect to each Mortgage Loan pursuant to this Agreement have been
                delivered to
                the Custodian, all in compliance with the specific requirements of
                this
                Agreement;

               

              (viii) Immediately
                prior to the payment of the Purchase Price for each Mortgage Loan,
                the Seller
                was the owner of record of the related Mortgage and the indebtedness
                evidenced
                by the related Mortgage Note;

               

              (ix) There
                are
                no actions or proceedings against, or investigations of, the Seller
                before any
                court, administrative agency or other tribunal (A) that are likely
                to prohibit
                its entering into this Agreement, (B) seeking to prevent the sale
                of the
                Mortgage Loans or the consummation of the transactions contemplated
                by this
                Agreement or (C) that are likely to prohibit or materially and adversely
                affect
                the performance by the Seller of its obligations under, or the validity
                or
                enforceability of, this Agreement;

               

              (x) No
                consent, approval, authorization or order of any court or governmental
                agency or
                body is required for the execution, delivery and performance by the
                Seller of,
                or compliance by the Seller with, this Agreement or the consummation
                of the
                transactions contemplated by this Agreement, except for such consents,
                approvals, authorizations or orders, if any, that have been obtained
                prior to
                the related Closing Date;

               

              (xi) The
                consummation of the transactions contemplated by this Agreement are
                in the
                ordinary course of business of the Seller, and the transfer, assignment
                and
                conveyance of the Mortgage Notes and the Mortgages by the Seller
                pursuant to
                this Agreement are not subject to the bulk transfer or any similar
                statutory
                provisions;

               

              (xii) Neither
                this Agreement nor any written statement, report or other document
                prepared and
                furnished or to be prepared and furnished by the Seller pursuant
                to this
                Agreement or in connection with the transactions contemplated hereby
                contains
                any untrue statement of material fact or omits to state a material
                fact
                necessary to make the statements contained herein or therein not
                misleading;

               

              (xiii) The
                consideration received by the Seller upon the sale of the Mortgage
                Loans
                constitutes fair consideration and reasonably equivalent value for
                such Mortgage
                Loans;

               

              
                
                  
                  

                

                
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              (xiv) The
                Seller is solvent and will not be rendered insolvent by the consummation
                of the
                transactions contemplated hereby. The Seller is not transferring
                any Mortgage
                Loan with any intent to hinder, delay or defraud any of its
                creditors.

               

              (b) The
                Interim Servicer represents, warrants and covenants to the Purchaser
                as of the
                initial Closing Date and as of each subsequent Closing Date:

               

              (i) The
                Interim Servicer is duly organized, validly existing and in good
                standing under
                the laws of the state of California and is and will remain in compliance
                with
                the laws of each state in which any Mortgaged Property is located
                to the extent
                necessary to ensure the enforceability of each Mortgage Loan and
                the servicing
                of the Mortgage Loan in accordance with the terms of this Agreement.
                No licenses
                or approvals obtained by the Interim Servicer have been suspended
                or revoked by
                any court, administrative agency, arbitrator or governmental body
                and no
                proceedings are pending which might result in such suspension or
                revocation;

               

              (ii) The
                Interim Servicer has the full power and authority to hold each Mortgage
                Loan and
                to execute, deliver and perform, and to enter into and consummate,
                all
                transactions contemplated by this Agreement. The Interim Servicer
                has duly
                authorized the execution, delivery and performance of this Agreement,
                has duly
                executed and delivered this Agreement, and this Agreement, assuming
                due
                authorization, execution and delivery by the Purchaser, constitutes
                a legal,
                valid and binding obligation of the Interim Servicer, enforceable
                against it in
                accordance with its terms except as the enforceability thereof may
                be limited by
                bankruptcy, insolvency or reorganization;

               

              (iii) The
                execution and delivery of this Agreement by the Interim Servicer
                and the
                performance of and compliance with the terms of this Agreement will
                not violate
                the Interim Servicer's articles of incorporation or by-laws or constitute
                a
                default under or result in a breach or acceleration of, any material
                contract,
                agreement or other instrument to which the Interim Servicer is a
                party or which
                may be applicable to the Interim Servicer or its assets;

               

              (iv) The
                Interim Servicer is not in violation of, and the execution and delivery
                of this
                Agreement by the Interim 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 Interim
                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 Interim Servicer or its assets or will likely have
                consequences
                that would materially and adversely affect the performance of its
                obligations
                and duties hereunder;

               

              (v) The
                Interim Servicer is an approved servicer for FNMA and 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 Interim Servicer unable to comply
                with FNMA,
                FHLMC or HUD eligibility requirements or which would require notification
                to
                FNMA, FHLMC or HUD;

               

              (vi) The
                Interim 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;

               

              
                
                  
                  

                

                
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              (vii) The
                Mortgage Note, the Mortgage, the Assignment of Mortgage and any other
                documents
                required to be delivered with respect to each Mortgage Loan pursuant
                to the
                Custodial Agreement, have been delivered to the Custodian all in
                compliance with
                the specific requirements of the Custodial Agreement. With respect
                to each
                Mortgage Loan, the Interim Servicer is in possession of a complete
                Mortgage File
                in compliance with Exhibit 5, except for such documents as have been
                delivered
                to the Custodian;

               

              (viii) Immediately
                prior to the payment of the Purchase Price for each Mortgage Loan,
                the Seller
                was the owner of record of the related Mortgage and the indebtedness
                evidenced
                by the related Mortgage Note and upon the payment of the Purchase
                Price by the
                Purchaser, in the event that the Interim Servicer retains record
                title, the
                Interim Servicer shall retain such record title to each Mortgage,
                each related
                Mortgage Note and the related Mortgage Files with respect thereto
                in trust for
                the Purchaser as the owner thereof and only for the purpose of servicing
                and
                supervising the servicing of each Mortgage Loan;

               

              (ix) There
                are
                no actions or proceedings against, or investigations of, the Interim
                Servicer
                before any court, administrative agency or other tribunal (A) that
                are likely to
                prohibit its entering into this Agreement, (B) seeking to prevent the sale of
                the Mortgage Loans or the consummation of the transactions contemplated
                by this
                Agreement or (C) that are likely to prohibit or materially and adversely
                affect
                the performance by the Interim Servicer of its obligations under,
                or the
                validity or enforceability of, this Agreement;

               

              (x) No
                consent, approval, authorization or order of any court or governmental
                agency or
                body is required for the execution, delivery and performance by the
                Interim
                Servicer of, or compliance by the Interim Servicer with, this Agreement
                or the
                consummation of the transactions contemplated by this Agreement,
                except for such
                consents, approvals, authorizations or orders, if any, that have
                been obtained
                prior to the related Closing Date;

               

              (xi) The
                consummation of the transactions contemplated by this Agreement are
                in the
                ordinary course of business of the Interim Servicer;

               

              (xii) The
                information delivered by the Interim Servicer to the Purchaser with
                respect to
                the Interim Servicer's loan loss, foreclosure and delinquency experience
                for the
                twelve (12) months immediately preceding the Initial Closing Date
                on mortgage
                loans underwritten to the same standards as the Mortgage Loans and
                covering
                mortgaged properties similar to the Mortgaged Properties, is true
                and correct in
                all material respects; 

               

              (xiii) Neither
                this Agreement nor any written statement, report or other document
                prepared and
                furnished or to be prepared and furnished by the Interim Servicer
                pursuant to
                this Agreement or in connection with the transactions contemplated
                hereby
                contains any untrue statement of material fact or omits to state
                a material fact
                necessary to make the statements contained herein or therein not
                misleading;

               

              
                
                  
                  

                

                
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              (xiv) The
                Interim Servicer currently operates or actively participates in an
                on-going
                business (A) to originate single family mortgage loans, and/or (B)
                to make
                periodic purchases of single family mortgage loans from originators
                or sellers,
                and/or (C) to issue and/or purchase securities or bonds supported
                by single
                family mortgage loans, a portion of which loans are made to borrowers
                who are:
                (a) low-income families (families with incomes of 80% or less of
                area median
                income) living in low-income areas (a census tract or block numbering
                area in
                which the median income does not exceed 80% of the area median income);
                or (b)
                very low-income families (families with incomes of 60% or less of
                area median
                income);

               

              (xv) The
                Interim Servicer is an approved servicer for FNMA and 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 Interim Servicer unable to comply
                with FNMA,
                FHLMC or HUD eligibility requirements or which would require notification
                to
                FNMA, FHLMC or HUD; and

               

              (xvi) If
                the
                Interim Servicer becomes a member of MERS, the Interim Servicer shall
                be a
                member of MERS in good standing, and will comply in all material
                respects with
                the rules and procedures of MERS in connection with the servicing
                of the MERS
                Mortgage Loans for as long as such Mortgage Loans are registered
                with
                MERS.

               

              
                	 	
                        Subsection
                          7.02.

                      	
                        Representations
                          and Warranties Regarding Individual Mortgage
                          Loans.

                      

              

               

              The
                Seller hereby represents and warrants to the Purchaser that, as to
                each Mortgage
                Loan, as of the related Closing Date for such Mortgage Loan:

               

              (i) The
                information set forth in the related Mortgage Loan Schedule and the
                Mortgage
                Loan data delivered to the Purchaser is complete, true and correct
                in all
                material respects as of the Cut-off Date, unless another date is
                set forth in
                the Mortgage Loan Schedule;

               

              (ii) The
                Mortgage Loan is in compliance with all requirements set forth in
                the related
                Commitment Letter, and the characteristics of the related Mortgage
                Loan Package
                as set forth in the related Commitment Letter are true and correct;

               

              (iii) All
                payments required to be made up to the close of business on the related
                Closing
                Date for such Mortgage Loan under the terms of the Mortgage Note
                have been made.
                Except for payments in the nature of Escrow Payments, including without
                limitation, taxes and insurance payments, neither the Seller nor
                the Interim
                Servicer has 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. No payment under the Mortgage
                Loan is
                more than twenty-nine (29) days past due, nor has any payment under
                the Mortgage
                Loan been more than twenty-nine (29) days past due at any time since
                origination;

               

              
                
                  
                  

                

                
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              (iv) 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;

               

              (v) The
                Mortgaged Property is located in the state identified in the related
                Mortgage
                Loan Schedule and is improved by a Residential Dwelling;

               

              (vi) 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,
                or in the
                process of being recorded, in the applicable public recording office
                if
                necessary to maintain the lien priority of the Mortgage, and which
                have been
                delivered or will be delivered to the Custodian on behalf of the
                Purchaser; the
                substance of any such waiver, alteration or modification has been
                approved by
                the insurer under the Primary Insurance Policy or LPMI Policy, if
                any, and 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
                insurer under the Primary Insurance Policy or LPMI Policy, if any,
                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;

               

              (vii) 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/or the Mortgage,
                or the
                exercise of any right thereunder, render the Mortgage Note or 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;

               

              (viii) All
                buildings upon the Mortgaged Property are insured by an insurer acceptable
                to
                FNMA and FHLMC against loss by fire, hazards of extended coverage
                and such other
                hazards as are customary in the area where the Mortgaged Property
                is located,
                pursuant to insurance policies conforming to the requirements of
                the Servicing
                Addendum. All such insurance policies contain a standard mortgagee
                clause naming
                the Interim Servicer, 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 with a
                generally
                acceptable insurance carrier, in the amount described in the Servicing
                Addendum
                (and to the extent required in the Servicing Addendum) 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;

               

              
                
                  
                  

                

                
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              (ix) Any
                and
                all requirements of any federal, state or local law including, without
                limitation, usury, truth in lending, real estate settlement procedures,
                consumer
                credit protection, equal credit opportunity, fair housing, disclosure
                laws or
                all predatory and abusive lending laws applicable to the origination
                and
                servicing of mortgage loans of a type similar to the Mortgage Loans
                have been
                complied with and the consummation of the transactions contemplated
                hereby will
                not involve the violation of any such laws, and the Seller shall
                maintain in its
                possession, available for the inspection of the Purchaser or its
                designee, and
                shall deliver to the Purchaser or its designee, upon five (5) Business
                Days’
request, evidence of compliance with such requirements;

               

              (x) 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;

               

              (xi) The
                related Mortgage is properly recorded and is a valid, existing and
                enforceable
                (A) first lien and first priority security interest with respect
                to each
                Mortgage Loan which is indicated by the Interim Servicer to be a
                First Lien (as
                reflected on the Mortgage Loan Schedule), or (B) second lien and
                second priority
                security interest with respect to each Mortgage Loan which is indicated
                by the
                Interim Servicer to be a Second Lien (as reflected on the Mortgage
                Loan
                Schedule), in either case, 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) 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
                and (d) with
                respect to each Mortgage Loan which is indicated by the Interim Servicer
                to be a
                Second Lien Mortgage Loan (as reflected on the Mortgage Loan Schedule)
                a First
                Lien on the 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 (A)
                first lien
                and first priority security interest with respect to each Mortgage
                Loan which is
                indicated by the Interim Servicer to be a First Lien (as reflected
                on the
                related Mortgage Loan Schedule) or (B) second lien and second priority
                security
                interest with respect to each Mortgage Loan which is indicated by
                the Interim
                Servicer to be a Second Lien Mortgage Loan (as reflected on the Mortgage
                Loan
                Schedule), in either case, on the property described therein and
                the Seller has
                full right to sell and assign the same to the Purchaser. 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;

               

              (xii) The
                Mortgage Note and the related Mortgage are genuine and each is the
                legal, valid
                and binding obligation of the Mortgagor and enforceable by the Purchaser
                against
                such Mortgagor in accordance with its terms, except only as such
                enforcement may
                be limited by bankruptcy, insolvency, reorganization, moratorium
                or other
                similar laws affecting the enforcement of creditors’ rights generally and by
                law;

               

              
                
                  
                  

                

                
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              (xiii) All
                parties to the Mortgage Note and the Mortgage had legal capacity
                to enter into
                the Mortgage Loan, to execute and deliver the Mortgage Note and the
                Mortgage and
                to pledge, grant or convey the interest therein purported to be conveyed,
                and
                the Mortgage Note and the Mortgage have been duly and properly executed
                by such
                parties. The Mortgagor is a natural person;

               

              (xiv) 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;

               

              (xv) Except
                with respect to liens released immediately prior to the transfer
                herein
                contemplated, no Mortgage Note or related Mortgage has been assigned
                or pledged.
                Immediately prior to the transfer and assignment herein contemplated,
                the Seller
                held good, marketable and indefeasible title to, and was the sole
                legal,
                beneficial and equitable owner of the Mortgage Note and the Mortgage.
                The Seller
                has full right and authority under all governmental and regulatory
                bodies having
                jurisdiction over such Seller, subject to no interest or participation
                of, or
                agreement with, any party, to transfer and sell the Mortgage Loan
                to the
                Purchaser pursuant to this Agreement free and clear of any encumbrance
                or right
                of others, equity, lien, pledge, charge, mortgage, claim, participation
                interest
                or security interest of any nature (collectively, a “Lien”); and immediately
                upon the transfers and assignments herein contemplated, the Seller
                shall have
                transferred and sold all of its right, title and interest in and
                to each
                Mortgage Loan and the Purchaser will hold good, marketable and indefeasible
                title to, and be the owner of, each Mortgage Loan subject to no
                Lien;

               

              (xvi) All
                parties which have had any interest in the Mortgage Loan, whether
                as originator,
                mortgagee, assignee, pledgee or otherwise, are (or, during the period
                in which
                they held and disposed of such interest, were): (A) organized under
                the laws of
                such state, or (B) qualified to do business in such state, or (C)
                federal
                savings and loan associations or national banks having principal
                offices in such
                state, or (D) not doing business in such state so as to require qualification
                or
                licensing, or (E) not otherwise required to be licensed in such state.
                All
                parties which have had any interest in the Mortgage Loan 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 or were not
                required to
                be licensed in such state;

               

              (xvii) On
                the
                date of its origination and on the Closing Date, the Mortgage Loan
                was and is
                covered by an American Land Title Association (“ALTA”) 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 above in (xi)(a) and (b) and,
                with respect
                to each Mortgage Loan which is indicated by the Interim Servicer
                to be a Second
                Lien Mortgage Loan (as reflected on the Mortgage Loan Schedule) clause
                (d)) the
                Interim Servicer, its successors and assigns as to the first priority
                lien of
                the Mortgage in the original principal amount of the Mortgage Loan
                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 Interest Rate and
                Monthly
                Payment. 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
                Interim Servicer 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
                Seller, has
                done, by act or omission, anything which would impair the coverage
                of such
                lender’s title insurance policy;

               

              
                
                  
                  

                

                
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              (xviii) There
                is
                no default, breach, violation or event of acceleration existing under
                the
                Mortgage or the Mortgage Note and, to the Seller’s knowledge, 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 neither the Seller nor the Interim Servicer nor any other entity
                involved in
                originating or servicing a Mortgage Loan has waived any default,
                breach,
                violation or event of acceleration. With respect to each Mortgage
                Loan which is
                indicated by the Interim Servicer to be a Second Lien Mortgage Loan
                (as
                reflected on the Mortgage Loan Schedule) (i) the First Lien 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, and 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;

               

              (xix) 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;

               

              (xx) As
                of the
                date of origination of the Mortgage Loan, 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;

               

              (xxi) The
                Mortgage Loan was originated by New Century Mortgage Corporation
                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;

               

              
                
                  
                  

                

                
                  24

                  
                    

                  

                

                
                  
                  

                

              

              (xxii) Payments
                on the Mortgage Loan shall commence (with respect to any newly originated
                Mortgage Loans) or commenced no more than sixty days after the proceeds
                of the
                Mortgage Loan were disbursed. The Mortgage Loan bears interest at
                the Mortgage
                Interest Rate. With respect to each Mortgage Loan, the Mortgage Note
                is payable
                on the first day of each month in Monthly Payments, which, (A) in
                the case of a
                Fixed Rate Mortgage Loan which is not a Balloon Loan, are sufficient
                to fully
                amortize the original principal balance over the original term thereof
                and to
                pay interest at the related Mortgage Interest Rate, (B) in the case
                of an
                Adjustable Rate Mortgage Loan which is not a Balloon 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 and to pay interest
                at the
                related Mortgage Interest Rate and (C) in the case of a Balloon Loan,
                are based
                on a fifteen (15) or thirty (30) year amortization schedule, as set
                forth in the
                related Mortgage Note, and a final monthly payment substantially
                greater than
                the preceding monthly payment which is sufficient to amortize the
                remaining
                principal balance of the Balloon Loan and to pay interest at the
                related
                Mortgage Interest Rate. No Balloon Loan has an original stated maturity
                of less
                than seven (7) years. The Index for each Adjustable Rate Mortgage
                Loan is as
                defined in the related Mortgage Loan Schedule. 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 the period specified on
                the Mortgage
                Loan Schedule and following the expiration of such interest-only
                period, the
                remaining Monthly Payments shall be sufficient to fully amortize
                the original
                principal balance over the remaining term of the Mortgage Loan. The
                Mortgage
                Note does not permit negative amortization. No Mortgage Loan is a
                Convertible
                Mortgage Loan;

               

              (xxiii) The
                origination and collection practices used by the Interim Servicer
                with respect
                to each Mortgage Note and Mortgage have been in all respects legal,
                proper,
                prudent and customary in the mortgage origination and servicing industry.
                The
                Mortgage Loan has been serviced by the Interim Servicer and any predecessor
                servicer in accordance with all applicable laws, rules and regulations
                and the
                terms of the Mortgage Note and Mortgage. With respect to escrow deposits
                and
                Escrow Payments (other than with respect to each Mortgage Loan which
                is
                indicated by the Interim Servicer to be a Second Lien Mortgage Loan
                and for
                which the mortgagee under the First Lien is collecting Escrow Payments
                (as
                reflected on the Mortgage Loan Schedule)), if any, all such payments
                are in the
                possession of, or under the control of, the Interim Servicer 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 Interim Servicer have been capitalized
                under
                any Mortgage or the related Mortgage Note and no such escrow deposits
                or Escrow
                Payments are being held by the Interim Servicer for any work on a
                Mortgaged
                Property which has not been completed;

               

              (xxiv) The
                Mortgaged Property is undamaged by waste, earthquake or earth movement,
                windstorm, flood, tornado or other casualty, so as to affect adversely
                the value
                of the Mortgaged Property as security for the Mortgage Loan or the
                use for which
                the premises were intended and there is no proceeding pending or
                threatened for
                the total or partial condemnation thereof nor is such a proceeding
                currently
                occurring;

               

              
                
                  
                  

                

                
                  25

                  
                    

                  

                

                
                  
                  

                

              

              (xxv) 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 or non-judicial
                foreclosure. 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 materially interfere
                with the
                right to sell the Mortgaged Property at a trustee's sale or the right
                to
                foreclose the Mortgage subject to applicable federal and state laws
                and judicial
                precedent with respect to bankruptcy and rights of redemption; 

               

              (xxvi) The
                Mortgagor has not notified the Interim Servicer and the Interim Servicer
                has no
                knowledge of any relief requested or allowed to the Mortgagor under
                the
                Servicemembers Civil Relief Act;

               

              (xxvii) The
                Mortgage Loan was underwritten in accordance with the Underwriting
                Guidelines in
                effect at the time the Mortgage Loan was originated; and the Mortgage
                Note and
                Mortgage are on forms acceptable to prudent mortgage lending institutions
                in the
                secondary market;

               

              (xxviii) 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
                (xi) above;

               

              (xxix) The
                Mortgage File contains an appraisal of the related Mortgaged Property
                which, (a)
                with respect to First Lien Mortgage Loans, was on appraisal form
                1004 or form
                2055 with an interior inspection, or (b) with respect to Second Lien
                Mortgage
                Loans, was on appraisal form 704, 2065 or 2055 with an exterior only
                inspection,
                and (c) with respect to (a) or (b) above, was made and signed, prior
                to the
                approval of the Mortgage Loan application, by a qualified appraiser,
                duly
                appointed by the Seller or the Interim Servicer, 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 FNMA and
                FHLMC. 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;

               

              (xxx) 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 Purchaser to the trustee under the deed of trust,
                except in
                connection with a trustee’s sale after default by the Mortgagor;

               

              (xxxi) No
                Mortgage Loan contains provisions pursuant to which Monthly Payments
                are (a)
                paid or partially paid with funds deposited in any separate account
                established
                by the Seller, the Interim Servicer, 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;

               

              
                
                  
                  

                

                
                  26

                  
                    

                  

                

                
                  
                  

                

              

              (xxxii) 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;

               

              (xxxiii) 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;

               

              (xxxiv) Neither
                the Seller nor the Interim Servicer has 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 the
                Mortgage Loan to be an unacceptable investment, cause the Mortgage
                Loan to
                become delinquent, or adversely affect the value of the Mortgage
                Loan, in each
                instance, taking into account the relative Underwriting Guidelines
                applicable to
                the related Mortgagor;

               

              (xxxv) Each
                Mortgage Loan identified on the Mortgage Loan Schedule as subject
                to a Primary
                Insurance Policy will be subject to a Primary Insurance Policy, issued
                by a
                Qualified Insurer, which insures that portion of the Mortgage Loan
                in excess of
                the portion of the Appraised Value of the Mortgaged Property required
                by FNMA.
                All provisions of such Primary Insurance Policy have been and are
                being complied
                with, such policy is in full force and effect, and all premiums due
                thereunder
                have been paid. Any Mortgage subject to any such Primary Insurance
                Policy
                obligates the Mortgagor thereunder to maintain such insurance and
                to pay all
                premiums and charges in connection therewith. The Mortgage Interest
                Rate for the
                Mortgage Loan does not include any such insurance premium;

               

              (xxxvi) 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
                and fire underwriting certificates, have been made or obtained from
                the
                appropriate authorities. No improvement located on or being part
                of any
                Mortgaged Property is in violation of any applicable zoning law or
                regulation.
                To the best of the Seller’s knowledge and with respect to each Mortgage Loan
                that is covered by a Primary Insurance Policy, the improvement(s)
                located on or
                being part of the related Mortgaged Property were constructed in
                accordance with
                the specifications set forth in the original construction plans;

               

              (xxxvii) 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 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;

               

              
                
                  
                  

                

                
                  27

                  
                    

                  

                

                
                  
                  

                

              

              (xxxviii) Each
                original Mortgage was recorded and all subsequent assignments of
                the original
                Mortgage (other than the assignment to the Purchaser) have been recorded,
                or are
                in the process of being recorded, in the appropriate jurisdictions
                wherein such
                recordation is necessary to perfect the lien thereof as against creditors
                of the
                Seller. As to any Mortgage Loan which is not a MERS Mortgage Loan,
                the
                Assignment of Mortgage is in recordable form and is acceptable for
                recording
                under the laws of the jurisdiction in which the Mortgaged Property
                is
                located;

               

              (xxxix) Any
                principal advances made to the Mortgagor after the date of origination
                of the
                Mortgage Loan but prior to the Cut-off Date have been consolidated
                with the
                outstanding principal amount secured by the Mortgage, and the secured
                principal
                amount, as consolidated, bears a single interest rate and single
                repayment term
                reflected on the Mortgage Loan Schedule. The lien of the Mortgage
                securing the
                consolidated principal amount is expressly insured as having (A)
                first lien
                priority with respect to each Mortgage Loan which is indicated by
                the Interim
                Servicer to be a First Lien (as reflected on the Mortgage Loan Schedule),
                or (B)
                second lien priority with respect to each Mortgage Loan which is
                indicated by
                the Seller to be a Second Lien Mortgage Loan (as reflected on the
                Mortgage Loan
                Schedule), in either case, by a title insurance policy, an endorsement
                to the
                policy insuring the mortgagee’s consolidated interest or by other title evidence
                acceptable to FNMA and FHLMC. The consolidated principal amount does
                not exceed
                the original principal amount of the Mortgage Loan;

               

              (xl) Each
                Mortgaged Property consists of a ground lease, or a fee simple interest
                in a
                single parcel of real property improved by a Residential Dwelling.
                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 Underwriting Guidelines;

               

              (xli) Each
                Mortgage Loan originated in the state of Texas pursuant to Article
                XVI, Section
                50(a)(6) of the Texas Constitution (a “Texas Refinance Loan”) has been
                originated in compliance with the provisions of Article XVI, Section
                50(a)(6) of
                the Texas Constitution, Texas Civil Statutes and the Texas Finance
                Code. With
                respect to each Texas Refinance Loan that is a Cash-Out Refinancing,
                the related
                Mortgage Loan Documents state that the Mortgagor may prepay such
                Texas Refinance
                Loan in whole or in part without incurring a Prepayment Charge. The
                Seller does
                not collect any such Prepayment Charges in connection with any such
                Texas
                Refinance Loan;

               

              (xlii) The
                source of the down payment with respect to each Mortgage Loan has
                been fully
                verified by the Seller, if required by the Underwriting Guidelines;

               

              (xliii) Interest
                on each Mortgage Loan is calculated on the basis of a 360-day year
                consisting of
                twelve 30-day months;

               

              (xliv) The
                Mortgaged Property is in material compliance with all applicable
                environmental
                laws pertaining to environmental hazards including, without limitation,
                asbestos, and neither the Seller, the Interim Servicer nor, to the
                Seller’s or
                the Interim Servicer’s knowledge, the related Mortgagor, has received any notice
                of any violation or potential violation of such law;

               

              
                
                  
                  

                

                
                  28

                  
                    

                  

                

                
                  
                  

                

              

              (xlv) The
                Seller shall, at its own expense, cause each Mortgage Loan to be
                covered by a
“life of loan” Tax Service Contract which is assignable to the Purchaser or its
                designee at no cost to the Purchaser or its designee; provided however,
                that if
                the Seller fails to purchase such Tax Service Contract, the Seller
                shall be
                required to reimburse the Purchaser for all costs and expenses incurred
                by the
                Purchaser in connection with the purchase of any such Tax Service
                Contract;

               

              (xlvi) Each
                Mortgage Loan is covered by a “life of loan” Flood Zone Service Contract which
                is assignable to the Purchaser or its designee at no cost to the
                Purchaser or
                its designee or, for each Mortgage Loan not covered by such Flood
                Zone Service
                Contract, the Seller agrees to purchase such Flood Zone Service
                Contract;

               

              (xlvii) None
                of
                the Adjustable Rate Mortgage Loans include an option to convert to
                a Fixed Rate
                Mortgage Loan;

               

              (xlviii) The
                Seller did not use any selection procedures (A) intended, or reasonably
                believed
                by the Seller, to be adverse to the interests of the Purchaser or
                (B) that
                identified the Mortgage Loans as being less desirable or valuable
                than other
                comparable mortgage loans in the Seller’s portfolio;

               

              (xlix) With
                respect to any First Lien Mortgage Loan, the Loan-to-Value Ratio
                of such
                Mortgage Loan at origination was not more than 95% and with respect
                to any
                Mortgage Loan, the CLTV of such Mortgage Loan at origination was
                not more than
                100%;

               

              (l) 
                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);

               

              (li) No
                Mortgage Loan is (a) subject to, covered by or in violation of the
                provisions of
                the Homeownership and Equity Protection Act of 1994, as amended,
                (b) a “high
                cost”, “covered”, “abusive”, “predatory”, “home loan”, “Oklahoma Section 10” or
“high risk” mortgage loan (or a similarly designated loan using different
                terminology) under any federal, state or local law, including without
                limitation, the provisions of the Georgia Fair Lending Act, New York
                Banking
                Law, Section 6-1, the City of Oakland, California Anti-Predatory
                Lending
                Ordinance No. 12361, the Arkansas Home Loan Protection Act, effective
                as of June
                14, 2003, Kentucky State Statute KRS 360.100, effective as of June
                25, 2003, the
                New Jersey Home Ownership Security Act of 2002 (the “NJ Act”), the New Mexico
                Home Loan Protection Act (N.M. Stat. Ann. §§ 58-21A-1 et seq.), the Illinois
                High-Risk Home Loan Act (815 Ill. Comp. Stat. 137/1 et seq.), the
                Oklahoma Home
                Ownership and Equity Protection Act, Nevada Assembly Bill No. 284,
                effective as
                of Oct. 1, 2003, the Minnesota Residential Mortgage Originator and
                Servicer
                Licensing Act (MN Stat. §58.137), the South Carolina High-Cost and Consumer Home
                Loans Act, effective January 1, 2004, the Massachusetts Predatory
                Home Loan
                Practices Act, effective November 7, 2004 (Mass. Ann. Laws Ch. 183C)
                or any
                other statute or regulation providing assignee liability to holders
                of such
                mortgage loans, or (c) subject to or in violation of any such or
                comparable
                federal, state or local statutes or regulations;

               

              
                
                  
                  

                

                
                  29

                  
                    

                  

                

                
                  
                  

                

              

              (lii) Each
                Mortgage Loan has a valid and original Credit Score, with a minimum
                Credit Score
                as set forth in the related Commitment Letter;

               

              (liii) No
                Mortgage Loan had an original term to maturity of more than thirty
                (30)
                years;

               

              (liv) No
                Mortgagor is the obligor on more than two Mortgage Notes;

               

              (lv) Each
                Mortgage contains a provision for the acceleration of the payment
                of the unpaid
                principal balance of the related Mortgage Loan in the event the related
                Mortgaged Property is sold without the prior consent of the mortgagee
                thereunder;

               

              (lvi) With
                respect to each Mortgage Loan which is a Second Lien, (i) the related
                first lien
                does not provide for negative amortization, 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;

               

              (lvii) No
                Mortgage Loan originated prior to October 1, 2002 has a Prepayment
                Charge longer
                than five years after its origination; and no Mortgage Loan originated
                after
                October 1, 2002 has a Prepayment Charge longer than three years after
                its
                origination;

               

              (lviii) The
                Mortgage Loan Documents with respect to each Mortgage Loan subject
                to Prepayment
                Charges specifically authorizes such Prepayment Charges to be collected,
                such
                Prepayment Charges are permissible and enforceable in accordance
                with the terms
                of the related Mortgage Loan Documents and all applicable federal,
                state and
                local laws (except to the extent that the enforceability thereof
                may be limited
                by bankruptcy, insolvency, moratorium, receivership and other similar
                laws
                relating to creditors’ rights generally or the collectability thereof may be
                limited due to acceleration in connection with a foreclosure) and
                each
                Prepayment Charge was originated in compliance with all applicable
                federal,
                state and local laws;

               

              (lix) With
                respect to any Mortgage Loan that contains a provision permitting
                imposition of
                a Prepayment Charge upon a Principal Prepayment prior to maturity:
                (i) prior to
                the Mortgage Loan’s origination, the Mortgagor agreed to such Prepayment Charge
                in exchange for a monetary benefit, including but not limited to
                a Mortgage
                Interest 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 a Prepayment Charge, (iii) the Prepayment Charge
                is disclosed
                to the Mortgagor in the Mortgage Loan Documents pursuant to applicable
                state and
                federal law, and (iv) notwithstanding any state or federal law to
                the contrary,
                the Interim Servicer shall not impose such Prepayment Charge in any
                instance
                when the Mortgage debt is accelerated as the result of the Mortgagor’s default
                in making the Monthly Payments; 

               

              (lx) No
                Mortgagor was required to purchase any credit life, disability, accident
                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, disability, accident or health insurance
                policy in
                connection with the origination of the Mortgage Loan, and no proceeds
                from any
                Mortgage Loan were used to finance single-premium credit insurance
                policies
or
                debt cancellation agreements
                as part
                of the origination of, or as a condition to closing, such Mortgage
                Loan;

               

              
                
                  
                  

                

                
                  30

                  
                    

                  

                

                
                  
                  

                

              

              (lxi) No
                Mortgage Loan originated or modified on or after October 1, 2002
                and prior to
                March 7, 2003 is secured by a Mortgaged Property located in the State
                of
                Georgia;

               

              (lxii) The
                Interim Servicer and any predecessor servicer has fully furnished,
                in accordance
                with the Fair Credit Reporting Act and its implementing regulations,
                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; and the Interim
                Servicer
                will fully furnish, in accordance with the Fair Credit Reporting
                Act and its
                implementing regulations, accurate and complete information (e.g.,
                favorable and
                unfavorable) on its borrower credit files to Equifax, Experian and
                Trans Credit
                Information Company (three of the credit repositories), on a monthly
                basis;

               

              (lxiii) 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 tangible net benefit to the Mortgagor, were employed
                in connection
                with the origination of the Mortgage Loan. Each Mortgage Loan is
                in compliance
                with the anti-predatory lending eligibility for purchase requirements
                of FNMA’s
                Selling Guide; 

               

              (lxiv) The
                Seller and the Interim Servicer have 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 Seller and the
                Interim Servicer have 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; 

               

              (lxv) No
                Mortgagor was encouraged or required to select a Mortgage Loan product
                offered
                by the Seller which is a higher cost product designed for less creditworthy
                borrowers, unless at the time of the related 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 Seller
                or any
                affiliate of the Seller. If, at the time of the related loan application,
                the
                Mortgagor may have qualified for a lower cost credit product then
                offered by any
                mortgage lending affiliate of the Seller, the Seller referred the
                Mortgagor’s
                application to such affiliate for underwriting consideration; 

               

              
                
                  
                  

                

                
                  31

                  
                    

                  

                

                
                  
                  

                

              

              (lxvi) The
                methodology used in underwriting the extension of credit for each
                Mortgage Loan
                employs objective mathematical principles which relate the Mortgagor’s income,
                assets and liabilities 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;

               

              (lxvii) All
                points, fees and charges, including finance charges (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 law and
                regulation;

               

              (lxviii) The
                Interim 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 Interim Servicer 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;

               

              (lxix) No
                Mortgage Loan is a “manufactured housing loan” pursuant to the NJ Act, and one
                hundred percent of the amount financed of any purchase money Second
                Lien
                Mortgage Loan subject to the NJ Act was used for the purchase of
                the related
                Mortgaged Property;

               

              (lxx) With
                respect to each MERS Mortgage Loan, a MIN has been assigned by MERS
                and such MIN
                is accurately provided on the related Mortgage Loan Schedule. The
                related
                assignment of Mortgage to MERS has been duly and properly recorded;

               

              (lxxi) With
                respect to each MERS Mortgage Loan, neither the Seller nor the Interim
                Servicer
                has received any notice of liens or legal actions with respect to
                such Mortgage
                Loan and no such notices have been electronically posted by MERS;

               

              (lxxii) With
                respect to each Mortgage Loan, neither the related Mortgage nor the
                related
                Mortgage Note requires the Mortgagor to submit to arbitration to
                resolve any
                dispute arising out of or relating in any way to the Mortgage Loan
                transaction;

               

              (lxxiii) With
                respect to any Mortgage Loan for which a mortgage loan application
                was submitted
                by the Mortgagor after April 1, 2004, no such Mortgage Loan secured
                by a
                Mortgage Property located in the State of Illinois is in violation
                of the
                provisions of the Illinois Interest Act, including Section 4.1a which
                provides
                that no such Mortgage Loan with a Mortgage Interest Rate in excess
                of 8.0% per
                annum has lender-imposed fees (or other charges) in excess of 3.0%
                of the
                original principal balance of the Mortgage Loan;

               

              (lxxiv) With
                respect to each Mortgage Loan that is secured in whole or in part
                by the
                interest of the mortgagor as a lessee under a ground lease of the
                related
                Mortgaged Property and not by a fee interest in such Mortgaged
                Property:

               

              
                
                  
                  

                

                
                  32

                  
                    

                  

                

                
                  
                  

                

              

              a. The
                Mortgagor is the owner of a valid and subsisting interest as tenant
                under the
                ground lease;

               

              b. The
                ground lease is in full force and effect, unmodified and not supplemented
                by any
                writing or otherwise;

               

              c. The
                Mortgagor is not in default under any of the terms thereof and there
                are no
                circumstances which, with the passage of time or the giving of notice
                or both,
                would constitute an event of default thereunder;

               

              d. The
                lessor under the ground lease is not in default under any of the
                terms or
                provisions thereof on the part of the lessor to be observed or
                performed;

               

              e. The
                term
                of the ground lease exceeds the maturity date of the related Mortgage
                Loan by at
                least ten years;

               

              f. The
                ground lease or a memorandum thereof has been recorded and by its
                terms permits
                the leasehold estate to be mortgaged. The ground lease grants any
                leasehold
                mortgagee standard protection necessary to protect the security of
                a leasehold
                mortgagee;

               

              g. The
                ground lease does not contain any default provisions that could give
                rise to
                forfeiture or termination of the ground lease except for the non-payment
                of the
                ground lease rents;

               

              h. The
                execution, delivery and performance of the Mortgage do not require
                the consent
                (other than those consents which have been obtained and are in full
                force and
                effect) under, and will not contravene any provision of or cause
                a default
                under, the ground lease; and

               

              i. The
                ground lease provides that the leasehold can be transferred, mortgaged
                and
                sublet an unlimited number of times either without restriction or
                on payment of
                a reasonable fee and delivery of reasonable documentation to the
                lessor
                .

               

              (lxxv) [Reserved];

               

              (lxxvi) Each
                document or instrument in the related Mortgage File is in a form
                generally
                acceptable to prudent mortgage lenders that regularly originate or
                purchase
                mortgage loans comparable to the Mortgage Loans for sale to prudent
                investors in
                the secondary market that invest in mortgage loans such as the Mortgage
                Loans;

               

              (lxxvii) The
                Mortgage Note is comprised of one original promissory note and each
                such
                promissory note constitutes an “instrument” for purposes of Section 102(a)(47)
                of the Uniform Commercial Code;

               

              
                
                  
                  

                

                
                  33

                  
                    

                  

                

                
                  
                  

                

              

              (lxxviii) With
                respect to each Mortgage Loan secured by a manufactured home: (A)
                the
                manufactured home is permanently affixed to a foundation which is
                suitable for
                the soil conditions of the site; (B) all foundations, both perimeter
                and
                interior, have footings that are located below the frost line; (C)
                any wheels,
                axles and trailer hitches are removed from such manufactured home;
                and (D) the
                related Mortgage Loan is covered under a standard real estate title
                insurance
                policy that identifies the manufactured home as part of the real
                property and
                insures or indemnifies against any loss if the manufactured home
                is determined
                not to be part of the real property.

               

              
                	 	
                        Subsection
                          7.03.

                      	
                        Remedies
                          for Breach of Representations and
                          Warranties.

                      

              

               

              It
                is
                understood and agreed that the representations and warranties set
                forth in
                Subsections 7.01 and 7.02 shall survive the sale of the Mortgage
                Loans to the
                Purchaser and shall inure to the benefit of the Purchaser, notwithstanding
                any
                restrictive or qualified endorsement on any Mortgage Note or Assignment
                of
                Mortgage or the examination or lack of examination of any Mortgage
                File. Upon
                discovery by either the Seller, the Interim Servicer or the Purchaser
                of a
                breach of any of the foregoing representations and warranties which
                materially
                and adversely affects the value of the Mortgage Loans or the interest
                of the
                Purchaser (or which materially and adversely affects the interests
                of the
                Purchaser in the related Mortgage Loan in the case of a representation
                and
                warranty relating to a particular Mortgage Loan), the party discovering
                such
                breach shall give prompt written notice to the other parties.

               

              Within
                sixty (60) days (or with respect to a breach of Section 7.02(lxx),
                within ten
                (10) days) of the earlier of either discovery by or notice to the
                Seller of any
                breach of a representation or warranty which materially and adversely
                affects
                the value of a Mortgage Loan or the Mortgage Loans, the Seller or
                the Interim
                Servicer, as applicable, shall use its best efforts promptly to cure
                such breach
                in all material respects and, if such breach cannot be cured, the
                Seller shall,
                at the Purchaser’s option, repurchase such Mortgage Loan at the Repurchase Price
                within ten (10) days following the expiration of the related cure
                period. In the
                event that a breach shall involve any representation or warranty
                set forth in
                Subsection 7.01, which materially and adversely affects the value
                of all the
                Mortgage Loans, and such breach cannot be cured within 60 days of
                the earlier of
                either discovery by or notice to the Seller or the Interim Servicer,
                as
                applicable, of such breach, then all of the Mortgage Loans shall,
                at the
                Purchaser’s option, be repurchased by the Seller at the Repurchase Price. With
                respect to any representations and warranties made by the Seller,
                in the event
                that it is discovered that the circumstances with respect to the
                Mortgage Loan
                are not accurately reflected in such representation and warranty
                notwithstanding
                the actual knowledge or lack of knowledge of Seller, then, notwithstanding
                that
                such representation and warranty is made “to the best of the Seller’s
                knowledge,” or in reliance on or based on other information, there shall be a
                breach of such representation and Seller shall cure such breach or
                repurchase
                the affected Mortgage Loan as provided in this Subsection 7.03. The
                Seller
                shall, at the request of the Purchaser and assuming that the Seller
                has a
                Qualified Substitute Mortgage Loan, rather than repurchase the Mortgage
                Loan as
                provided above, remove such Mortgage Loan and substitute in its place
                a
                Qualified Substitute Mortgage Loan or Loans; provided that such substitution
                shall be effected not later than 120 days after notice to the Seller
                of such
                breach. If the Seller has no Qualified Substitute Mortgage Loan,
                the Seller
                shall repurchase the deficient Mortgage Loan. Any repurchase of a
                Mortgage
                Loan(s) pursuant to the foregoing provisions of this Subsection 7.03
                shall occur
                on a date designated by the Purchaser and shall be accomplished (i)
                by wire
                transfer of immediately available funds on the repurchase date to
                an account
                designated by the Initial Purchaser or (ii) as otherwise set forth
                in the
                related Commitment Letter. Notwithstanding anything to the contrary
                contained
                herein, it is understood by the parties hereto that a breach of the
                representations and warranties made in Subsections 7.02(li), (lvii),
                (lx),
                (lxi), (lxii) or (lxxii) will be deemed to materially and adversely
                affect the
                value of the related Mortgage Loan or the interest of the Purchaser
                therein.

               

              
                
                  
                  

                

                
                  34

                  
                    

                  

                

                
                  
                  

                

              

              If
                pursuant to the foregoing provisions the Seller repurchases a Mortgage
                Loan that
                is a MERS Mortgage Loan, the Interim Servicer shall either (i) cause
                MERS to
                execute and deliver an assignment of the Mortgage in recordable form
                to transfer
                the Mortgage from MERS to the Seller and shall cause such Mortgage
                to be removed
                from registration on the MERS System in accordance with MERS’ rules and
                regulations or (ii) cause MERS to designate on the MERS System the
                Seller as the
                beneficial holder of such Mortgage Loan.

               

              At
                the
                time of repurchase of any deficient Mortgage Loan, the Purchaser
                and the Seller
                or the Interim Servicer shall arrange for the reassignment of the
                repurchased
                Mortgage Loan to the Seller and the delivery to the Seller or the
                Interim
                Servicer of any documents held by the Custodian relating to the repurchased
                Mortgage Loan. In the event the Repurchase Price is deposited in
                the Custodial
                Account, the Interim Servicer shall, simultaneously with such deposit,
                give
                written notice to the Purchaser that such deposit has taken place.
                Upon such
                repurchase the related Mortgage Loan Schedule shall be amended to
                reflect the
                withdrawal of the repurchased Mortgage Loan from this Agreement.

               

              As
                to any
                Deleted Mortgage Loan for which the Seller substitutes a Qualified
                Substitute
                Mortgage Loan or Loans, the Seller shall effect such substitution
                by delivering
                to the Purchaser for such Qualified Substitute Mortgage Loan or Loans
                the
                Mortgage Note, the Mortgage, the Assignment of Mortgage and such
                other documents
                and agreements as are required by this Agreement, with the Mortgage
                Note
                endorsed as required therein. The Interim Servicer shall deposit
                in the
                Custodial Account the Monthly Payment less the Servicing Fee due
                on such
                Qualified Substitute Mortgage Loan or Loans in the month following
                the date of
                such substitution. Monthly Payments due with respect to Qualified
                Substitute
                Mortgage Loans in the month of substitution will be retained by the
                Interim
                Servicer. For the month of substitution, distributions to the Purchaser
                will
                include the Monthly Payment due on such Deleted Mortgage Loan in
                the month of
                substitution, and the Interim Servicer shall thereafter be entitled
                to retain
                all amounts subsequently received by the Interim Servicer in respect
                of such
                Deleted Mortgage Loan. The Seller or the Interim Servicer, as applicable,
                shall
                give written notice to the Purchaser that such substitution has taken
                place and
                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. Upon such substitution, such
                Qualified
                Substitute Mortgage Loan or Loans shall be subject to the terms of
                this
                Agreement in all respects, and the Seller and the Interim Servicer
                shall be
                deemed to have made with respect to such Qualified Substitute Mortgage
                Loan or
                Loans, as of the date of substitution, the covenants, representations
                and
                warranties set forth in Subsections 7.01 and 7.02.

               

              
                
                  
                  

                

                
                  35

                  
                    

                  

                

                
                  
                  

                

              

              For
                any
                month in which the Seller substitutes one or more Qualified Substitute
                Mortgage
                Loans for one or more Deleted Mortgage Loans, the Interim Servicer
                will
                determine the amount (if any) by which the aggregate principal balance
                of all
                such Qualified Substitute Mortgage Loans as of the date of substitution
                is less
                than the aggregate Stated Principal Balance of all such Deleted Mortgage
                Loans
                (after application of scheduled principal payments due in the month
                of
                substitution). An amount equal to the sum of (A) if the substitution
                occurs
                during the first twelve months following the related Closing Date
                (x) the
                product of (i) the amount of such shortfall and (ii) the purchase
                price
                percentage used to calculate the Purchase Price, as stated in the
                related
                Commitment Letter and (y) accrued interest on the amount of such
                shortfall to
                day prior to the day on which such substitution occurs, and (B) thereafter,
                (i)
                the amount of such shortfall and (ii) accrued interest on the amount
                of such
                shortfall to day prior to the day on which such substitution occurs,
                shall be
                distributed by the Interim Servicer in the month of substitution
                pursuant to the
                Servicing Addendum. Accordingly, on the date of such substitution,
                the Seller or
                the Interim Servicer will deposit from its own funds into the Custodial
                Account
                an amount equal to such amount.

               

              In
                addition to such cure, repurchase and substitution obligation, the
                Seller and
                the Interim Servicer shall indemnify the Purchaser and hold it harmless
                against
                any losses, damages, penalties, fines, forfeitures, reasonable and
                necessary
                legal fees and related costs, judgments, and other costs and expenses
                resulting
                from any claim, demand, defense or assertion based on or grounded
                upon, or
                resulting from, a breach of the Seller’s and the Interim Servicer’s
                representations and warranties, respectively, contained in this Section
                7. It is
                understood and agreed that the obligations of the Seller and the
                Interim
                Servicer set forth in this Subsection 7.03 to cure, substitute for
                or repurchase
                a defective Mortgage Loan and to indemnify the Purchaser as provided
                in this
                Subsection 7.03 constitute the sole remedies of the Purchaser respecting
                a
                breach of the foregoing representations and warranties. The indemnification
                obligation of the Seller and the Interim Servicer set forth herein
                shall survive
                the termination of this Agreement notwithstanding any applicable
                statute of
                limitations, which the Seller or the Interim Servicer, as applicable,
                hereby
                expressly waives.

               

              Any
                cause
                of action against the Seller or the Interim Servicer relating to
                or arising out
                of the breach of any representations and warranties made in Subsections
                7.01 or
                7.02 shall accrue as to any Mortgage Loan upon (i) discovery of such
                breach by
                the Purchaser or notice thereof by the Seller or the Interim Servicer
                to the
                Purchaser, (ii) failure by the Seller or the Interim Servicer to
                cure such
                breach or repurchase such Mortgage Loan as specified above, and (iii)
                demand
                upon the Seller or the Interim Servicer by the Purchaser for compliance
                with the
                relevant provisions of this Agreement.

               

              
                	 	
                        Subsection
                          7.04.

                      	
                        Prepayment-in-Full
                          Premium Recapture.

                      

              

               

              In
                the
                event that any Mortgage Loans prepay-in-full within three (3) months
                of the
                related Closing Date, the Seller shall remit to the Purchaser within
                ten (10)
                days following receipt of notice from the Purchaser of a prepayment-in-full,
                the
                greater of (i) an amount equal to the product of (A) the excess of
                the related
                purchase price percentage over 100% and (B) the Stated Principal
                Balance of such
                prepaid Mortgage Loan as of the related Closing Date or (ii) the
                amount of any
                prepayment penalty fees paid with respect to such Mortgage Loan.

               

              
                
                  
                  

                

                
                  36

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        Subsection
                          7.05.

                      	
                        Early
                          Payment Default.

                      

              

               

              In
                the
                event that any Mortgagor fails to make the first scheduled Monthly
                Payment due
                on a Mortgage Loan or due to Purchaser within the calendar month
                such payment is
                due, Seller shall repurchase such Mortgage Loan at the Repurchase
                Price within
                ten (10) days following receipt of notice from the Purchaser of such
                payment
                default.

               

              
                	 	
                        Subsection
                          7.06.

                      	
                        Representation
                          and Warranty Respecting the Initial
                          Purchaser.

                      

              

               

              The
                Initial Purchaser represents, warrants and covenants to the Purchaser
                as of each
                Closing Date that the Initial Purchaser does not directly service
                any Mortgage
                Loan nor shall the Initial Purchaser directly service any Mortgage
                Loan.

               

              SECTION
                8. Closing.
                The
                closing for each Mortgage Loan Package shall take place on the related
                Closing
                Date. At the Purchaser’s option, the closing shall be either by telephone,
                confirmed by letter or wire as the parties shall agree, or conducted
                in person,
                at such place as the parties shall agree.

               

              The
                closing for the Mortgage Loans to be purchased on each Closing Date
                shall be
                subject to each of the following conditions:

               

              
                	 	
                        (a)

                      	
                        all
                          of the representations and warranties of the Seller and
                          the Interim
                          Servicer under this Agreement shall be true and correct
                          as of the related
                          Closing Date and no event shall have occurred which, with
                          reasonable
                          notice to the Seller or the Interim Servicer as applicable,
                          or the passage
                          of time, would constitute a default under this
                          Agreement;

                      

              

               

              
                	 	
                        (b)

                      	
                        the
                          Initial Purchaser shall have received, or the Initial Purchaser’s
                          attorneys shall have received in escrow, all Closing Documents
                          as
                          specified in Section 9, in such forms as are agreed upon
                          and acceptable to
                          the Purchaser, duly executed by all signatories other than
                          the Purchaser
                          as required pursuant to the terms
                          hereof;

                      

              

               

              
                	 	
                        (c)

                      	
                        the
                          Seller or the Interim Servicer, as applicable, shall have
                          delivered and
                          released to the Custodian all documents required pursuant
                          to this
                          Agreement; and

                      

              

               

              
                	 	
                        (d)

                      	
                        all
                          other terms and conditions of this Agreement shall have
                          been complied
                          with.

                      

              

               

              Subject
                to the foregoing conditions, the Initial Purchaser shall pay to the
                Seller on
                the related Closing Date the Purchase Price, plus accrued interest
                pursuant to
                Section 4, by wire transfer of immediately available funds to the
                account
                designated by the Seller.
 

              
                
                  
                  

                

                
                  37

                  
                    

                  

                

                
                  
                  

                

              

               

              SECTION
                9. Closing
                Documents.

               

              
                	 	
                        (a)

                      	
                        On
                          or before the Initial Closing Date, the Seller or the Interim
                          Servicer, as
                          applicable, shall submit to the Initial Purchaser fully
                          executed originals
                          of the following documents:

                      

              

               

              
                	 	
                        (1)

                      	
                        this
                          Agreement, in four counterparts;

                      

              

               

              
                	 	
                        (2)

                      	
                        a
                          Custodial Account Letter Agreement in the form attached
                          as Exhibit 6
                          hereto;

                      

              

               

              
                	 	
                        (3)

                      	
                        as
                          Escrow Account Letter Agreement in the form attached as
                          Exhibit 7
                          hereto;

                      

              

               

              
                	 	
                        (4)

                      	
                        a
                          Seller’s Officer’s Certificate, in the form of Exhibit 1A hereto,
                          including all attachments thereto;

                      

              

               

              
                	 	
                        (5)

                      	
                        an
                          Interim Servicer’s Officer’s Certificate, in the form of Exhibit 1B
                          hereto, including all attachments
                          thereto;

                      

              

               

              
                	 	
                        (6)

                      	
                        an
                          Opinion of Counsel to the Seller and Interim Servicer,
                          in the form of
                          Exhibit 2 hereto; and

                      

              

               

              
                	 	
                        (7)

                      	
                        the
                          Seller’s and Interim Servicer’s Underwriting Guidelines for each of the
                          Seller’s and the Interim Servicer’s, as applicable, origination
                          programs.

                      

              

               

              
                	 	
                        (b)

                      	
                        The
                          Closing Documents for the Mortgage Loans to be purchased
                          on each Closing
                          Date shall consist of fully executed originals of the following
                          documents:

                      

              

               

              
                	 	
                        (1)

                      	
                        the
                          related Commitment Letter;

                      

              

               

              
                	 	
                        (2)

                      	
                        the
                          related Mortgage Loan Schedule to be attached to the related
                          Assignment
                          and Conveyance;

                      

              

               

              
                	 	
                        (3)

                      	
                        a
                          Custodian’s trust receipt and initial certification, as required
                          under the
                          Custodial Agreement, in a form acceptable to the Initial
                          Purchaser;

                      

              

               

              
                	 	
                        (4)

                      	
                        a
                          Seller’s Officer’s Certificate, in the form of Exhibit 1A hereto,
                          including all attachments thereto;

                      

              

               

              
                	 	
                        (5)

                      	
                        an
                          Interim Servicer’s Officer’s Certificate, in the form of Exhibit 1B
                          hereto, including all attachments
                          hereto;

                      

              

               

              
                	 	
                        (6)

                      	
                        if
                          requested by the Initial Purchaser, an Opinion of Counsel
                          to the Seller
                          and Interim Servicer, in the form of Exhibit 2
                          hereto;

                      

              

               

              
                	 	
                        (7)

                      	
                        a
                          Security Release Certification, in the form of Exhibit
                          3 hereto executed
                          by any Person, as requested by the Initial Purchaser, if
                          any of the
                          Mortgage Loans has at any time been subject to any security
                          interest,
                          pledge or hypothecation for the benefit of such
                          Person;

                      

              

               

              
                
                  
                  

                

                
                  38

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        (8)

                      	
                        a
                          certificate or other evidence of merger or change of name,
                          signed or
                          stamped by the applicable regulatory authority, if any
                          of the Mortgage
                          Loans were acquired by the Seller by merger or acquired
                          or originated by
                          the Seller while conducting business under a name other
                          than its present
                          name, if applicable; 

                      

              

               

              
                	 	
                        (9)

                      	
                        an
                          Assignment and Conveyance in the form of Exhibit 4 hereto;
                          and

                      

              

               

              
                	 	
                        (10)

                      	
                        any
                          modifications, amendments or supplements to the Underwriting
                          Guidelines
                          following the Initial Closing Date.

                      

              

               

              SECTION
                10. Costs.
                The
                Purchaser shall pay any commissions due its salesmen and the legal
                fees and
                expenses of its attorneys. All other costs and expenses incurred
                in connection
                with the transfer and delivery of the Mortgage Loans, including without
                limitation recording fees, fees for title policy endorsements and
                continuations,
                fees for recording Assignments of Mortgage and the Seller’s attorney’s fees,
                shall be paid by the Seller. The Seller shall also pay certain expenses
                of the
                Custodian, including but not limited to, the Custodian’s preparation of trust
                receipts and certifications.

               

              SECTION
                11. Interim
                Servicer’s Servicing Obligations.
                The
                Interim Servicer, as independent contract servicer, shall service
                and administer
                the Mortgage Loans the Seller sold to the Purchaser on the related
                Closing Date
                during the Interim Servicing Period in accordance with the terms
                and provisions
                set forth in the Servicing Addendum attached as Exhibit 8, which
                Servicing
                Addendum is incorporated herein by reference.

               

              SECTION
                12. Removal
                of Mortgage Loans from Inclusion under this Agreement Upon a Whole
                Loan Transfer
                or a Pass-Through Transfer on One or More Reconstitution Dates.
                The
                Seller, the Interim Servicer and the Initial Purchaser agree that
                with respect
                to some or all of the Mortgage Loans, the Initial Purchaser may effect
                either:

               

              (1) one
                or
                more Whole Loan Transfers; and/or

               

              (2) one
                or
                more Pass-Through Transfers.

               

              With
                respect to each Whole Loan Transfer or Pass-Through Transfer, as
                the case may
                be, entered into by the Initial Purchaser, the Seller and the Interim
                Servicer
                agree: 

               

              
                	 	
                        (1)

                      	
                        to
                          cooperate fully with the Purchaser and any prospective
                          purchaser with
                          respect to all reasonable requests and due diligence procedures
                          and with
                          respect to the preparation (including, but not limited
                          to, the
                          endorsement, delivery, assignment, and execution) of the
                          Mortgage Loan
                          Documents and other related documents, and with respect
                          to servicing
                          requirements reasonably requested by the rating agencies
                          and credit
                          enhancers;

                      

              

               

              
                	 	
                        (2)

                      	
                        to
                          execute all Reconstitution Agreements provided that each
                          of the Seller,
                          the Interim Servicer and the Purchaser is given an opportunity
                          to review
                          and reasonably negotiate in good faith the content of such
                          documents not
                          specifically referenced or provided for herein; provided,
                          however, that in
                          the event that more than five (5) whole loan transfers
                          or pass-through
                          transfers are conducted with respect to one Mortgage Loan
                          Package prior to
                          the one year anniversary of the related Closing Date, the
                          Initial
                          Purchaser shall pay the Seller’s and the Interim Servicer’s attorney’s
                          fees and expenses with respect to each transfer after the
                          fifth such
                          transfer;

                      

              

               

              
                
                  
                  

                

                
                  39

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        (3)

                      	
                        with
                          respect to any Whole Loan Transfer or Pass--Through Transfer,
                          the Seller
                          and the Interim Servicer, as applicable, shall make the
                          representations
                          and warranties regarding the Seller or the Interim Servicer,
                          as
                          applicable, and, if such Whole Loan Transfer or Pass-Through
                          Transfer
                          occurs within 12 months of the related Closing Date or
                          such later period
                          as specified in the related Commitment Letter, the Mortgage
                          Loans as of
                          the date of the Whole Loan Transfer or Pass-Through Transfer
                          or otherwise,
                          as of the one year anniversary of such Whole Loan Transfer
                          or Pass-Through
                          Transfer, modified to the extent necessary to accurately
                          reflect the pool
                          statistics of the Mortgage Loans as of the date of such
                          Whole Loan
                          Transfer or Pass-Through Transfer and any events or circumstances
                          existing
                          subsequent to the related Closing
                          Date(s);

                      

              

               

              
                	 	
                        (4)

                      	
                        to
                          deliver to the Purchaser for inclusion in any prospectus
                          or other offering
                          material such publicly available information regarding
                          the Seller and the
                          Interim Servicer, as applicable, their financial condition
                          and the Interim
                          Servicer’s mortgage loan delinquency, foreclosure and loss experience
                          and
                          any additional information requested by the Purchaser,
                          and to deliver to
                          the Purchaser any similar nonpublic, unaudited financial
                          information, in
                          which case the Purchaser shall bear the cost of having
                          such information
                          audited by certified public accountants if the Purchaser
                          desires such an
                          audit, or as is otherwise reasonably requested by the Purchaser
                          and which
                          the Seller and the Interim Servicer, as applicable, is
                          capable of
                          providing without unreasonable effort or expense, and to
                          indemnify the
                          Purchaser and its affiliates for material misstatements
                          or omissions
                          contained (i) in such information and (ii) on the Mortgage
                          Loan
                          Schedule;

                      

              

               

              
                	 	
                        (5)

                      	
                        to
                          deliver to the Purchaser and to any Person designated by
                          the Purchaser, at
                          the Purchaser’s expense, such statements and audit letters of reputable,
                          certified public accountants pertaining to information
                          provided by the
                          Seller and the Interim Servicer pursuant to clause 4 above
                          as shall be
                          reasonably requested by the Purchaser;
                          and

                      

              

               

              
                	 	
                        (6)

                      	
                        to
                          deliver to the Purchaser, and to any Person designated
                          by the Purchaser,
                          such legal documents and in-house Opinions of Counsel as
                          are customarily
                          delivered by originators or servicers, as the case may
                          be, and reasonably
                          determined by the Purchaser to be necessary in connection
                          with Whole Loan
                          Transfers or Pass-Through Transfers, as the case may be,
                          such in-house
                          Opinions of Counsel for a Pass-Through Transfer to be in
                          the form
                          reasonably acceptable to the Purchaser, it being understood
                          that the cost
                          of any opinions of outside special counsel that may be
                          required for a
                          Whole Loan Transfer or Pass-Through Transfer, as the case
                          may be, shall be
                          the responsibility of the
                          Purchaser.

                      

              

               

              
                
                  
                  

                

                
                  40

                  
                    

                  

                

                
                  
                  

                

              

              All
                Mortgage Loans not sold or transferred pursuant to a Whole Loan Transfer
                or
                Pass-Through Transfer shall be subject to this Agreement and shall
                continue to
                be serviced for the remainder of the Interim Servicing Period in
                accordance with
                the terms of this Agreement and with respect thereto this Agreement
                shall remain
                in full force and effect.

               

              SECTION
                13. The
                Seller and the Interim Servicer.

               

              
                	 	
                        Subsection
                          13.01.

                      	
                        Additional
                          Indemnification by the Seller and the Interim
                          Servicer.

                      

              

               

              In
                addition to the indemnification provided in Subsection 7.03, the
                Seller and the
                Interim Servicer, jointly and severally, shall indemnify the Purchaser
                and hold
                the Purchaser 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 the Purchaser
                may sustain
                in any way related to the failure of the Seller or Interim Servicer
                to perform
                its obligations under this Agreement including but not limited to
                the Interim
                Servicer’s obligation to service and administer the Mortgage Loans in strict
                compliance with the terms of this Agreement or any Reconstitution
                Agreement
                entered into pursuant to Section 12. The indemnification obligation
                of the
                Seller and the Interim Servicer set forth herein shall survive the
                termination
                of this Agreement notwithstanding any applicable statute of limitations,
                which
                the Seller and the Interim Servicer hereby expressly waive.

               

              
                	 	
                        Subsection
                          13.02.

                      	
                        Merger
                          or Consolidation of the Seller and the Interim
                          Servicer.

                      

              

               

              The
                Seller and the Interim Servicer shall each keep in full force and
                effect their
                existence, rights and franchises as a corporation under the laws
                of the state of
                their incorporation except as permitted herein, and shall obtain
                and preserve
                their 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 enable the
                Seller and the Interim Servicer, as applicable, to perform its duties
                under this
                Agreement.

               

              Any
                Person into which the Seller or the Interim Servicer may be merged
                or
                consolidated, or any corporation resulting from any merger, conversion
                or
                consolidation to which the Seller or the Interim Servicer shall be
                a party, or
                any Person succeeding to the business of the Seller, shall be the
                successor of
                the Seller or the Interim 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
                surviving Person shall be an institution whose deposits are insured
                by FDIC or a
                company whose business is the origination and servicing of mortgage
                loans, as
                applicable, shall be a FNMA or FHLMC approved seller/servicer and
                shall satisfy
                any requirements of Section 16 with respect to the qualifications
                of a successor
                to the Seller or the Interim Servicer.

               

              
                
                  
                  

                

                
                  41

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        Subsection
                          13.03.

                      	
                        Limitation
                          on Liability of the Seller and
                          Others.

                      

              

               

              Neither
                the Seller, the Interim Servicer nor any of the officers, employees
                or agents of
                either shall be under any liability to the Purchaser for any action
                taken or for
                refraining from the taking of any action in good faith in connection
                with the
                servicing of the Mortgage Loans pursuant to this Agreement, or for
                errors in
                judgment; provided, however, that this provision shall not protect
                the Seller or
                the Interim Servicer or any such person against any breach of warranties
                or
                representations made herein, or failure to perform its obligations
                in strict
                compliance with any standard of care set forth in this Agreement,
                or any
                liability which would otherwise be imposed by reason of any breach
                of the terms
                and conditions of this Agreement. The Seller or the Interim Servicer,
                as
                applicable, and any officer, employee or agent of the Seller or the
                Interim
                Servicer may rely in good faith on any document of any kind prima
                facie properly
                executed and submitted by any Person respecting any matters arising
                hereunder.
                The Seller and the Interim Servicer shall not be under any obligation
                to appear
                in, prosecute or defend any legal action which is not incidental
                to its
                obligation to sell or duty to service the Mortgage Loans in accordance
                with this
                Agreement and which in its opinion may result in its incurring any
                expenses or
                liability; provided, however, that the Seller and the Interim Servicer
                may, with
                the consent of the Purchaser, undertake any such action which it
                may deem
                necessary or desirable in respect to this Agreement and the rights
                and duties of
                the parties hereto. In such event, the legal expenses and costs of
                such action
                and any liability resulting therefrom shall be expenses, costs and
                liabilities
                for which the Purchaser shall be liable, and the Seller and the Interim
                Servicer
                shall be entitled to reimbursement therefor from the Purchaser upon
                written
                demand except when such expenses, costs and liabilities are subject
                to the
                Seller’s and the Interim Servicer’s indemnification under Subsections 7.03 or
                13.01.

               

              
                	 	
                        Subsection
                          13.04.

                      	
                        Interim
                          Servicer Not to Resign.

                      

              

               

              The
                Interim Servicer shall not assign this Agreement or resign from the
                obligations
                and duties hereby imposed on it except by mutual consent of the Interim
                Servicer
                and the Purchaser or upon the determination that its servicing duties
                hereunder
                are no longer permissible under applicable law and such incapacity
                cannot be
                cured by the Interim Servicer in which event the Interim Servicer
                may resign as
                servicer. Any such determination permitting the resignation of the
                Interim
                Servicer as servicer shall be evidenced by an Opinion of Counsel
                to such effect
                delivered to the Purchaser which Opinion of Counsel shall be in form
                and
                substance acceptable to the Purchaser and which shall be provided
                at the cost of
                the Interim Servicer. No such resignation shall become effective
                until a
                successor shall have assumed the Interim Servicer’s responsibilities and
                obligations hereunder in the manner provided in Section 16.

               

              
                	 	
                        Subsection
                          13.05.

                      	
                        No
                          Transfer of Servicing.

                      

              

               

              With
                respect to the retention of the Interim Servicer to service the Mortgage
                Loans
                during the Interim Servicing Period, the Interim Servicer acknowledges
                that the
                Purchaser has acted in reliance upon the Interim Servicer’s independent status,
                the adequacy of its servicing facilities, plan, personnel, records
                and
                procedures, its integrity, reputation and financial standing and
                the continuance
                thereof. Without in any way limiting the generality of this Section,
                the Interim
                Servicer shall not either assign this Agreement or the servicing
                hereunder or
                delegate its rights or duties hereunder or any portion thereof, or
                sell or
                otherwise dispose of all or substantially all of its property or
                assets, except
                with respect to the Interim Servicer retaining Ocwen Federal Bank
                FSB as a
                subservicer, without the prior written approval of the Purchaser,
                which consent
                will not be unreasonably withheld.

               

              
                
                  
                  

                

                
                  42

                  
                    

                  

                

                
                  
                  

                

              

              SECTION
                14. Default.

               

              
                	 	
                        Subsection
                          14.01.

                      	
                        Events
                          of Default.

                      

              

               

              In
                case
                one or more of the following Events of Default by the Seller shall
                occur and be
                continuing, that is to say:

               

              (i) any
                failure by the Interim Servicer to remit to the Purchaser 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 Interim
                Servicer by the Purchaser; or

               

              (ii) failure
                on the part of the Seller or the Interim Servicer duly to observe
                or perform in
                any material respect any other of the covenants or agreements on
                the part of the
                Seller or the Interim Servicer set forth in this Agreement which
                continues
                unremedied for a period of thirty 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 date on
                which written
                notice of such failure, requiring the same to be remedied, shall
                have been given
                to the Seller or the Interim Servicer by the Purchaser; or

               

              (iii) a
                decree
                or order of a court or agency or supervisory authority having jurisdiction
                for
                the appointment of a conservator or receiver or liquidator in any
                insolvency,
                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 Seller or the Interim Servicer and
                such decree or
                order shall have remained in force undischarged or unstayed for a
                period of
                sixty days; or

               

              (iv) the
                Seller or the Interim 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 Seller or the Interim Servicer or of or relating to all or substantially
                all
                of its property; or

               

              (v) the
                Seller or the Interim 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) failure
                by the Seller or the Interim Servicer to be in compliance with the
“doing
                business” or licensing laws of any jurisdiction where a Mortgaged Property
                is
                located; or

               

              
                
                  
                  

                

                
                  43

                  
                    

                  

                

                
                  
                  

                

              

              (vii) the
                Interim Servicer ceases to meet the qualifications of either a FNMA
                or FHLMC
                servicer; or

               

              (viii) the
                Interim Servicer attempts to assign its right to servicing compensation
                hereunder or the Interim Servicer attempts, without the consent of
                the
                Purchaser, to sell or otherwise dispose of all or substantially all
                of its
                property or assets or to assign this Agreement or the servicing responsibilities
                hereunder or to delegate its duties hereunder or any portion thereof,
                except
                with respect to the Interim Servicer retaining Ocwen Federal Bank
                FSB as a
                subservicer; or 

               

              (ix) failure
                by the Interim Servicer to duly perform, within the required time
                period, its
                obligations under Sections 11.23 or 11.24 which failure continues
                unremedied for
                a period of fifteen (15) days after the date on which written notice
                of such
                failure, requiring the same to be remedied, shall have been given
                to the Seller
                by any party to this Agreement or by any master servicer responsible
                for master
                servicing the Mortgage Loans pursuant to a securitization of such
                Mortgage
                Loans;

               

              then,
                and
                in each and every such case, so long as an Event of Default shall
                not have been
                remedied, the Purchaser, by notice in writing to the Seller or the
                Interim
                Servicer, as applicable, may, in addition to whatever rights the
                Purchaser may
                have at law or in equity to damages, including injunctive relief
                and specific
                performance, terminate all the rights and obligations of the Interim
                Servicer as
                servicer under this Agreement. On or after the receipt by the Interim
                Servicer
                of such written notice, all authority and power of the Interim Servicer
                to
                service the Mortgage Loans under this Agreement shall on the date
                set forth in
                such notice pass to and be vested in the successor appointed pursuant
                to Section
                16.

               

              If
                any of
                the Mortgage Loans are MERS Mortgage Loans, in connection with the
                termination
                or resignation (as described in Section 13.04) of the Interim Servicer
                hereunder, either (i) the successor Interim Servicer shall represent
                and warrant
                that it is a member of MERS in good standing and shall agree to comply
                in all
                material respects with the rules and procedures of MERS in connection
                with the
                servicing of the Mortgage Loans that are registered with MERS, or
                (ii) the
                Interim Servicer shall cooperate with the successor company either
                (x) in
                causing MERS to execute and deliver an assignment of Mortgage in
                recordable form
                to transfer the Mortgage from MERS to the Purchaser and to execute
                and deliver
                such other notices, documents and other instruments as may be necessary
                or
                desirable to effect a transfer of such Mortgage Loan or servicing
                of such
                Mortgage Loan on the MERS System to the successor company or (y)
                in causing MERS
                to designate on the MERS System the successor company as the servicer
                of such
                Mortgage Loan.

               

              
                	 	
                        Subsection
                          14.02.

                      	
                        Waiver
                          of Defaults.

                      

              

               

              The
                Purchaser may waive any default by the Seller or the Interim Servicer
                in the
                performance of its obligations hereunder and its consequences. Upon
                any such
                waiver of a past default, such default shall cease to exist, and
                any Event of
                Default arising therefrom shall be deemed to have been remedied for
                every
                purpose of this Agreement. No such waiver shall extend to any subsequent
                or
                other default or impair any right consequent thereon except to the
                extent
                expressly so waived.

               

              
                
                  
                  

                

                
                  44

                  
                    

                  

                

                
                  
                  

                

              

              SECTION
                15. Termination.
                The
                respective obligations and responsibilities of the Interim Servicer,
                as
                servicer, shall terminate at the expiration of the Interim Servicing
                Period
                unless terminated on an earlier date at the option of the Purchaser
                or pursuant
                to Section 14. Upon written request from the Purchaser in connection
                with any
                such termination, the Interim Servicer shall prepare, execute and
                deliver any
                and all documents and other instruments, place in the Purchaser’s possession all
                Mortgage Files, and 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, at the Interim Servicer’s sole expense. The
                Interim Servicer agrees to cooperate with the Purchaser and such
                successor in
                effecting the termination of the Interim Servicer’s responsibilities and rights
                hereunder as servicer, including, without limitation, the transfer
                to such
                successor for administration by it of all cash amounts which shall
                at the time
                be credited by the Interim Servicer to the related Custodial Account,
                REO
                Account or Escrow Account or thereafter received with respect to
                the Mortgage
                Loans. The indemnification obligation of the Interim Servicer set
                forth herein
                shall survive the termination of this Agreement notwithstanding any
                applicable
                statute of limitations, which the Interim Servicer hereby expressly
                waives.

               

              SECTION
                16. Successor
                to the Interim Servicer.
                Prior
                to termination of the Seller’s or the Interim Servicer’s responsibilities and
                duties under this Agreement pursuant to Section 12, 14 or 15, the
                Purchaser
                shall (i) succeed to and assume all of the Interim Servicer’s responsibilities,
                rights, duties and obligations under this Agreement, or (ii) appoint
                a successor
                which shall succeed to all rights and assume all of the responsibilities,
                duties
                and liabilities of the Interim Servicer as servicer under this Agreement.
                In
                connection with such appointment and assumption, the Purchaser may
                make such
                arrangements for the reasonable compensation of such successor out
                of payments
                on Mortgage Loans as it and such successor shall agree. In the event
                that the
                Interim Servicer’s duties, responsibilities and liabilities as servicer under
                this Agreement should be terminated pursuant to the aforementioned
                Sections, the
                Interim Servicer shall discharge such duties and responsibilities
                during the
                period from the date it acquires knowledge of such termination until
                the
                effective date thereof 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 or financial
                condition of
                the Purchaser or such successor. The termination of the Interim Servicer
                as
                interim servicer pursuant to the aforementioned Sections shall not
                become
                effective until a successor shall be appointed pursuant to this Section
                16 and
                shall in no event relieve the Seller or the Interim Servicer of the
                representations and warranties made pursuant to Subsections 7.01
                and 7.02 and
                the remedies available to the Purchaser under Subsection 7.03 or
                7.04 and
                Section 32, it being understood and agreed that the provisions of
                such
                Subsections 7.01, 7.02, 7.03, 7.04 and Section 32 shall be applicable
                to the
                Interim Servicer notwithstanding any such resignation or termination
                of the
                Interim Servicer, or the termination of this Agreement.

               

              Any
                successor appointed as provided herein shall execute, acknowledge
                and deliver to
                the Interim Servicer and to the Purchaser an instrument accepting
                such
                appointment, whereupon such successor shall become fully vested with
                all the
                rights, powers, duties, responsibilities, obligations and liabilities
                of the
                Interim Servicer, with like effect as if originally named as a party
                to this
                Agreement provided, however, that such successor shall not assume,
                and the
                Interim Servicer shall indemnify such successor for, any and all
                liabilities
                arising out of the Interim Servicer’s acts as servicer. Any termination of the
                Interim Servicer as servicer pursuant to Section 12, 14 or 15 shall
                not affect
                any claims that the Purchaser may have against the Interim Servicer
                arising
                prior to any such termination or resignation or remedies with respect
                to such
                claims.

               

              
                
                  
                  

                

                
                  45

                  
                    

                  

                

                
                  
                  

                

              

              The
                Interim Servicer shall timely deliver to the successor the funds
                in the related
                Custodial Account, REO Account and the related Escrow Account and
                the Mortgage
                Files and related documents and statements held by it hereunder and
                the Interim
                Servicer shall account for all funds. The Interim Servicer shall
                execute and
                deliver such instruments and do such other things all as may reasonably
                be
                required to more fully and definitely vest and confirm in the successor
                all such
                rights, powers, duties, responsibilities, obligations and liabilities
                of the
                Interim Servicer as servicer. The successor shall make arrangements
                as it may
                deem appropriate to reimburse the Interim Servicer for amounts the
                Interim
                Servicer actually expended as servicer pursuant to this Agreement
                which the
                successor is entitled to retain hereunder and which would otherwise
                have been
                recovered by the Interim Servicer pursuant to this Agreement but
                for the
                appointment of the successor servicer.

               

              SECTION
                17. Financial
                Statements.
                The
                Seller and the Interim Servicer understand that in connection with
                the
                Purchaser’s marketing of the Mortgage Loans, the Purchaser shall make available
                to prospective purchasers the Seller’s and the Interim Servicer’s financial
                statements for the most recently completed three fiscal years respecting
                which
                such statements are available. The Seller and the Interim Servicer
                also shall
                make available any comparable interim statements to the extent any
                such
                statements have been prepared by the Seller or the Interim Servicer
                (and are
                available upon request to members or stockholders of the Seller and
                the Interim
                Servicer). The Seller and the Interim Servicer, if they have not
                already done
                so, agree to furnish promptly to the Purchaser copies of the statements
                specified above. The Interim Servicer also shall make available information
                on
                its servicing performance with respect to mortgage loans serviced
                for others,
                including delinquency ratios.

               

              The
                Seller and the Interim Servicer also agree to allow access to knowledgeable
                financial, accounting, origination and servicing officers of the
                Seller and the
                Interim Servicer for the purpose of answering questions asked by
                any prospective
                purchaser regarding recent developments affecting the Seller and
                the Interim
                Servicer, their loan origination or servicing practices or the financial
                statements of the Seller or the Interim Servicer, as applicable.

               

              SECTION
                18. Mandatory
                Delivery; Grant of Security Interest.
                The
                sale and delivery of each Mortgage Loan on or before the related
                Closing Date is
                mandatory from and after the date of the execution of the related
                Commitment
                Letter, it being specifically understood and agreed that each Mortgage
                Loan is
                unique and identifiable on the date hereof and that an award of money
                damages
                would be insufficient to compensate the Initial Purchaser for the
                losses and
                damages incurred by the Initial Purchaser (including damages to prospective
                purchasers of the Mortgage Loans) in the event of the Seller’s failure to
                deliver each of the related Mortgage Loans or one or more Mortgage
                Loans
                otherwise acceptable to the Initial Purchaser on or before the related
                Closing
                Date. The Seller hereby grants to the Initial Purchaser a lien on
                and a
                continuing security interest in each Mortgage Loan and each document
                and
                instrument evidencing each such Mortgage Loan to secure the performance
                by the
                Seller of its obligation hereunder, and the Seller agrees that it
                holds such
                Mortgage Loans in custody for the Initial Purchaser subject to the
                Initial
                Purchaser’s (i) right to reject any Mortgage Loan under the terms of this
                Agreement and the related Commitment Letter, and (ii) obligation
                to pay the
                related Purchase Price for the Mortgage Loans. All rights and remedies
                of the
                Purchaser under this Agreement are distinct from, and cumulative
                with, any other
                rights or remedies under this Agreement or afforded by law or equity
                and all
                such rights and remedies may be exercised concurrently, independently
                or
                successively.

               

              
                
                  
                  

                

                
                  46

                  
                    

                  

                

                
                  
                  

                

              

              SECTION
                19. Notices.
                All
                demands, notices and communications hereunder shall be in writing
                and shall be
                deemed to have been duly given if mailed, by registered or certified
                mail,
                return receipt requested, or, if by other means, when received by
                the other
                party at the address as follows:

               

              
                	 	
                        (i)

                      	
                        if
                          to the Purchaser:

                      

              

               

              DB
                Structured Products, Inc.

              60
                Wall
                Street

              New
                York,
                New York 10005

              Attn:
                Michael Commaroto

               

              
                	 	
                        (ii)

                      	
                        if
                          to the Seller:

                      

              

               

              NC
                Capital Corporation

              18400
                Von
                Karman 

              Suite
                1000

              Irvine,
                California 92612

              Attn:
                Kevin Cloyd

               

              
                	 	
                        (iii)

                      	
                        if
                          to the Interim Servicer:

                      

              

               

              New
                Century Mortgage Corporation

              18400
                Von
                Karman

              Suite
                1000

              Irvine,
                California 92612

              Attention:
                Kevin Cloyd

               

              or
                such
                other address as may hereafter be furnished to the other party by
                like notice.
                Any such demand, notice or communication hereunder shall be deemed
                to have been
                received on the date delivered to or received at the premises of
                the addressee
                (as evidenced, in the case of registered or certified mail, by the
                date noted on
                the return receipt).

               

              SECTION
                20. Severability
                Clause.
                Any
                part, provision, representation or warranty of this Agreement which
                is
                prohibited or which is held to be void or unenforceable shall be
                ineffective to
                the extent of such prohibition or unenforceability without invalidating
                the
                remaining provisions hereof. Any part, provision, representation
                or warranty of
                this Agreement which is prohibited or unenforceable or is held to
                be void or
                unenforceable in any jurisdiction shall be ineffective, as to such
                jurisdiction,
                to the extent of such prohibition or unenforceability without invalidating
                the
                remaining provisions hereof, and any such prohibition or unenforceability
                in any
                jurisdiction as to any Mortgage Loan shall not invalidate or render
                unenforceable such provision in any other jurisdiction. To the extent
                permitted
                by applicable law, the parties hereto waive any provision of law
                which prohibits
                or renders void or unenforceable any provision hereof. If the invalidity
                of any
                part, provision, representation or warranty of this Agreement shall
                deprive any
                party of the economic benefit intended to be conferred by this Agreement,
                the
                parties shall negotiate, in good-faith, to develop a structure the
                economic
                effect of which is nearly as possible the same as the economic effect
                of this
                Agreement without regard to such invalidity.

               

              
                
                  
                  

                

                
                  47

                  
                    

                  

                

                
                  
                  

                

              

              SECTION
                21. Counterparts.
                This
                Agreement may be executed simultaneously in any number of counterparts.
                Each
                counterpart shall be deemed to be an original, and all such counterparts
                shall
                constitute one and the same instrument.

               

              SECTION
                22. Governing
                Law.
                The
                Agreement shall be construed in accordance with the laws of the State
                of New
                York without regard to any conflicts of law provisions and the obligations,
                rights and remedies of the parties hereunder shall be determined
                in accordance
                with the laws of the State of New York, except to the extent preempted
                by
                Federal law.

               

              SECTION
                23. Intention
                of the Parties.
                It is
                the intention of the parties that the Initial Purchaser is purchasing,
                and the
                Seller is selling, the Mortgage Loans and not a debt instrument of
                the Seller or
                another security. Accordingly, the parties hereto each intend to
                treat the
                transaction for Federal income tax purposes as a sale by the Seller,
                and a
                purchase by the Purchaser, of the Mortgage Loans. The Initial Purchaser
                shall
                have the right to review the Mortgage Loans and the related Mortgage
                Loan Files
                to determine the characteristics of the Mortgage Loans which shall
                affect the
                Federal income tax consequences of owning the Mortgage Loans and
                the Seller and
                the Interim Servicer shall cooperate with all reasonable requests
                made by the
                Initial Purchaser in the course of such review. In the event, for
                any reason,
                any transaction contemplated herein is construed by any court or
                regulatory
                authority as a borrowing rather than as a sale, the Seller, the Interim
                Servicer
                and the Purchaser intend that the Purchaser or its assignee, as the
                case may be,
                shall have a perfected first priority security interest in the Mortgage
                Loans,
                the servicing rights appurtenant to the Mortgage Loans, the Custodial
                Account
                and the proceeds of any and all of the foregoing (collectively, the
                “Collateral”), free and clear of adverse claims. In such case, the Seller shall
                be deemed to have hereby granted to the Purchaser or its assignee,
                as the case
                may be, a first priority security interest in and lien upon the Collateral,
                free
                and clear of adverse claims. In such event, the related Commitment
                Letter and
                this Agreement shall constitute a security agreement, the Custodian
                shall be
                deemed to be an independent custodian for purposes of perfection
                of the security
                interest granted to the Purchaser or its assignee, as the case may
                be, and the
                Purchaser or its assignee, as the case may be, shall have all of
                the rights of a
                secured party under applicable law.

               

              SECTION
                24. Successors
                and Assigns.
                This
                Agreement shall bind and inure to the benefit of and be enforceable
                by the
                Seller, the Interim Servicer and the Purchaser and the respective
                successors and
                assigns of the Seller, the Interim Servicer and the Purchaser. The
                Purchaser may
                assign this Agreement to any Person to whom any Mortgage Loan is
                transferred
                whether pursuant to a sale or financing and to any Person to whom
                the servicing
                or master servicing of any Mortgage Loan is sold or transferred.
                Upon any such
                assignment, the Person to whom such assignment is made shall succeed
                to all
                rights and obligations of the Purchaser under this Agreement to the
                extent of
                the related Mortgage Loan or Mortgage Loans and this Agreement, to
                the extent of
                the related Mortgage Loan or Loans, shall be deemed to be a separate
                and
                distinct Agreement between the Seller, the Interim Servicer and such
                Purchaser,
                and a separate and distinct Agreement between the Seller, the Interim
                Servicer
                and each other Purchaser to the extent of the other related Mortgage
                Loan or
                Loans. In the event that this Agreement is assigned to any Person
                to whom the
                servicing or master servicing of any Mortgage Loan is sold or transferred,
                the
                rights and benefits under this agreement which inure to the Purchaser
                shall
                inure to the benefit of both the Person to whom such Mortgage Loan
                is
                transferred and the Person to whom the servicing or master servicing
                of the
                Mortgage Loan has been transferred; provided that, the right to require
                a
                Mortgage Loan to be repurchased by the Seller or the Interim Servicer
                pursuant
                to Subsection 7.03 or 7.04 shall be retained solely by the Purchaser.
                This
                Agreement shall not be assigned, pledged or hypothecated by the Seller
                or the
                Interim Servicer to a third party without the consent of the Purchaser,
                which
                consent shall not be unreasonably withheld.

               

              
                
                  
                  

                

                
                  48

                  
                    

                  

                

                
                  
                  

                

              

              SECTION
                25. Commitment
                Letter.
                The
                terms and conditions set forth in the Commitment Letter with respect
                to each
                Closing Date shall be incorporated herein. In the event of any conflict
                between
                the terms of this Agreement and the related Commitment Letter, the
                Commitment
                Letter shall control.

               

              SECTION
                26. Waivers.
                No term
                or provision of this Agreement may be waived or modified unless such
                waiver or
                modification is in writing and signed by the party against whom such
                waiver or
                modification is sought to be enforced.

               

              SECTION
                27. Exhibits.
                The
                exhibits to this Agreement are hereby incorporated and made a part
                hereof and
                are an integral part of this Agreement.

               

              SECTION
                28. Nonsolicitation.
                The
                Seller and the Interim Servicer covenant and agree that neither shall
                take any
                action to solicit the refinancing of any Mortgage Loan following
                the date hereof
                or provide information to any other entity to solicit the refinancing
                of any
                Mortgage Loan; provided that, the foregoing shall not preclude the
                Seller or the
                Interim Servicer from engaging in solicitations to the general public
                by
                newspaper, radio, television or other media which are not directed
                toward the
                Mortgagors or from refinancing the Mortgage Loan of any Mortgagor
                who, without
                solicitation, contacts the Seller or the Interim Servicer to request
                the
                refinancing of the related Mortgage Loan.

               

              SECTION
                29. General
                Interpretive Principles.
                For
                purposes of this Agreement, except as otherwise expressly provided
                or unless the
                context otherwise requires:

               

              
                	 	
                        (a)

                      	
                        the
                          terms defined in this Agreement have the meanings assigned
                          to them in this
                          Agreement and include the plural as well as the singular,
                          and the use of
                          any gender herein shall be deemed to include the other
                          gender;

                      

              

               

              
                
                  
                  

                

                
                  49

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        (b)

                      	
                        accounting
                          terms not otherwise defined herein have the meanings assigned
                          to them in
                          accordance with generally accepted accounting
                          principles;

                      

              

               

              
                	 	
                        (c)

                      	
                        references
                          herein to “Articles,” “Sections,” “Subsections,” “Paragraphs,” and other
                          subdivisions without reference to a document are to designated
                          Articles,
                          Sections, Subsections, Paragraphs and other subdivisions
                          of this
                          Agreement;

                      

              

               

              
                	 	
                        (d)

                      	
                        reference
                          to a Subsection without further reference to a Section
                          is a reference to
                          such Subsection as contained in the same Section in which
                          the reference
                          appears, and this rule shall also apply to Paragraphs and
                          other
                          subdivisions;

                      

              

               

              
                	 	
                        (e)

                      	
                        the
                          words “herein,” “hereof,” “hereunder” and other words of similar import
                          refer to this Agreement as a whole and not to any particular
                          provision;
                          and

                      

              

               

              
                	 	
                        (f)

                      	
                        the
                          term “include” or “including” shall mean without limitation by reason of
                          enumeration.

                      

              

               

              SECTION
                30. Reproduction
                of Documents.
                This
                Agreement and all documents relating thereto, including, without
                limitation, (a)
                consents, waivers and modifications which may hereafter be executed,
                (b)
                documents received by any party at the closing, and (c) financial
                statements,
                certificates and other information previously or hereafter furnished,
                may be
                reproduced by any photographic, photostatic, microfilm, micro-card,
                miniature
                photographic or other similar process. The parties agree that any
                such
                reproduction shall be admissible in evidence as the original itself
                in any
                judicial or administrative proceeding, whether or not the original
                is in
                existence and whether or not such reproduction was made by a party
                in the
                regular course of business, and that any enlargement, facsimile or
                further
                reproduction of such reproduction shall likewise be admissible in
                evidence.

               

              SECTION
                31. Further
                Agreements.
                The
                Seller, the Interim Servicer and the Purchaser each agree to execute
                and deliver
                to the other such reasonable and appropriate additional documents,
                instruments
                or agreements as may be necessary or appropriate to effectuate the
                purposes of
                this Agreement.

               

              SECTION
                32. Guaranty.
                The
                Interim Servicer hereby absolutely, unconditionally and irrevocably
                guarantees
                to the Purchaser, the full and prompt performance by the Seller,
                of any and all
                obligations of the Seller under Section 7 and Subsection 13.1 of
                this Agreement.
                The Interim Servicer agrees that its obligations pursuant to this
                Section 31
                shall be a continuing, absolute and unconditional guarantee of the
                full and
                punctual performance by the Seller of its obligations under Section
                7 and
                Subsection 13.01 of this Agreement and is in no way conditioned upon
                any
                requirement that the Purchaser first attempt to collect any of its
                obligations
                from the Seller without regard to (a) the validity, regularity or
                enforceability
                of this Agreement; (b) the absence of any action to enforce the same;
                (c) any
                waiver or consent by Purchaser concerning any provisions hereof;
                (d) the
                rendering of any judgment against the Seller or any action to enforce
                the same;
                (e) any defense, set-off, counterclaim (other than a defense of payment
                or
                performance) which may at any time be available to or be asserted
                by the Seller
                against the Purchaser; or (f) any other circumstances that might
                otherwise
                constitute a legal or equitable discharge of a guarantor or a defense
                of a
                guarantor. The Interim Servicer hereby guarantees that payments hereunder
                will
                be paid to the Purchaser without set-off or counterclaim in accordance
                with the
                wiring instructions of the Purchaser. The Interim Servicer waives
                diligence,
                presentment, protest, demand for payment and notice of default or
                nonpayment to
                or upon the Seller with respect to the obligations of the Seller
                under Section 7
                and Subsection 13.01 of this Agreement. This Section 32 shall continue
                to be
                effective if the Seller merges or consolidates with or into another
                entity,
                loses its separate legal identity or ceases to exist.

               

              [Signature
                Page Follows]

              
                
                  
                  

                

                
                  50

                  
                    

                  

                

                
                  
                  

                

              

              IN
                WITNESS WHEREOF, the Seller and the Purchaser have caused their names
                to be
                signed hereto by their respective officers thereunto duly authorized
                as of the
                date first above written.

               

              
                	 	
                        NC
                          CAPITAL CORPORATION

                      
	 	
                        (Seller)

                      
	 	 
	 	 
	 	
                        By:_________________________________

                      
	 	 
	 	
                        Name: 

                      
	 	
                        Title: 

                      
	 	 
	 	 
	 	
                        NEW
                          CENTURY MORTGAGE CORPORATION

                      
	 	
                        (Interim
                          Servicer)

                      
	 	 
	 	 
	 	
                        By:_________________________________

                      
	 	 
	 	
                        Name: 

                      
	 	
                        Title: 

                      
	 	 
	 	 
	 	
                        DB
                          STRUCTURED PRODUCTS, INC. (Initial Purchaser)

                      
	 	 
	 	 
	 	
                        By:_________________________________

                      
	 	 
	 	
                        Name:

                      
	 	
                        Title:

                      
	 	 
	 	 
	 	
                        By:_________________________________

                      
	 	 
	 	
                        Name:

                      
	 	
                        Title:

                      

              

              

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

              EXHIBIT
                1A

               

              FORM
                OF
                SELLER’S OFFICER’S CERTIFICATE

               

              I,
                ________________________, hereby certify that I am the duly elected
                ______________ of NC Capital Corporation, a California corporation
                (the
“Seller”), and further certify, on behalf of the Seller as follows:

               

              1. Attached
                hereto as Attachment I are a true and correct copy of the Certificate
                of
                Incorporation and by-laws of the Seller as are in full force and
                effect on the
                date hereof.

               

              2. No
                proceedings looking toward merger, liquidation, dissolution or bankruptcy
                of the
                Seller are pending or contemplated.

               

              3. Each
                person who, as an officer or attorney-in-fact of the Seller, signed
                (a) the
                Master Mortgage Loan Purchase and Interim Servicing Agreement (the
“Purchase
                Agreement”), dated as of March 1, 2005 by and between the Seller and DB
                Structured Products, Inc. (the “Purchaser”); (b) the Commitment Letter, dated
                _______ __, 200_, between the Seller and the Purchaser (the “Commitment
                Letter”); and (c) any other document delivered prior hereto or on the date
                hereof in connection with the sale and servicing of the Mortgage
                Loans in
                accordance with the Purchase Agreement and the Commitment Letter
                was, at the
                respective times of such signing and delivery, and is as of the date
                hereof,
                duly elected or appointed, qualified and acting as such officer or
                attorney-in-fact, and the signatures of such persons appearing on
                such documents
                are their genuine signatures.

               

              4. Attached
                hereto as Attachment II is a true and correct copy of the resolutions
                duly
                adopted by the board of directors of the Seller on ____________,
                200_ (the
“Resolutions”) with respect to the authorization and approval of the sale and
                servicing of the Mortgage Loans; said Resolutions have not been amended,
                modified, annulled or revoked and are in full force and effect on
                the date
                hereof.

               

              5. Attached
                hereto as Attachment III is a Certificate of Good Standing of the
                Seller dated
                ____________, 200_. No event has occurred since ____________, 200_
                which has
                affected the good standing of the Seller under the laws of the State
                of
                ___________.

               

              6. Seller
                is
                licensed to originate and sell the Mortgage Loans in all the states
                in which the
                Seller originates and sells Mortgage Loans. No such licenses have
                been suspended
                or revoked by any court, administrative agency, arbitrator or governmental
                body
                and no proceedings are pending which might result in such suspension
                or
                revocation. Upon request of the Purchaser, Seller shall provide a
                copy of any
                such state licenses requested.

               

              
                
                  
                  

                

                
                  1-1

                  
                    

                  

                

                
                  
                  

                

              

              7. All
                of
                the representations and warranties of the Seller contained in Subsections
                7.01
                and 7.02 of the Purchase Agreement were true and correct in all material
                respects as of the date of the Purchase Agreement and are true and
                correct in
                all material respects as of the date hereof.

               

              8. The
                Seller has performed all of its duties and has satisfied all the
                material
                conditions on its part to be performed or satisfied prior to the
                related Closing
                Date pursuant to the Purchase Agreement and the related Commitment
                Letter.

               

              All
                capitalized terms used herein and not otherwise defined shall have
                the meaning
                assigned to them in the Purchase Agreement.

               

              
                
                  
                  

                

                
                  1-2

                  
                    

                  

                

                
                  
                  

                

              

              IN
                WITNESS WHEREOF, I have hereunto signed my name and affixed the seal
                of the
                Seller.

               

              Dated:_________________________

               

              [Seal]

               

              NC
                CAPITAL CORPORATION

              (Seller)

               

              By:___________________________________

              Name:_________________________________

              Title:
                Vice President

               

              I,
                _______________________, Secretary of the Seller, hereby certify
                that
                _________________________ is the duly elected, qualified and acting
                Vice
                President of the Seller and that the signature appearing above is
                genuine.

               

              IN
                WITNESS WHEREOF, I have hereunto signed my name.

               

              Dated:__________________________

               

              [Seal]

               

              NC
                CAPITAL CORPORATION

              (Seller)

               

              By:____________________________________

              Name:__________________________________

              Title:
                [Assistant] Secretary

              
                
                  
                  

                

                
                  1-1

                  
                    

                  

                

                
                  
                  

                

              

              EXHIBIT
                1B

              

              INTERIM
                SERVICER'S OFFICER'S CERTIFICATE

              

              I,
                ________________________, hereby certify that I am the duly elected
                ______________ of New Century Mortgage Corporation, a California
                corporation
                (the “Interim Servicer”), and further certify, on behalf of the Interim Servicer
                as follows:

              

              1. Attached
                hereto as Attachment I are a true and correct copy of the Certificate
                of
                Incorporation and by-laws of the Interim Servicer as are in full
                force and
                effect on the date hereof.

              

              2. No
                proceedings looking toward merger, liquidation, dissolution or bankruptcy
                of the
                Interim Servicer are pending or contemplated.

              

              3. Each
                person who, as an officer or attorney-in-fact of the Interim Servicer,
                signed
                (a) the Master Mortgage Loan Purchase and Interim Servicing Agreement
                (the
“Purchase Agreement”), dated as of March 1, 2005, by and among the Interim
                Servicer, NC Capital Corporation (the “Seller”) and DB Structured Products, Inc.
                (the “Purchaser”); (b) the Commitment Letter, dated _____________ 200_, among
                the Seller, the Interim Servicer and the Purchaser (the “Commitment Letter”);
                and (c) any other document delivered prior hereto or on the date
                hereof in
                connection with the sale and servicing of the Mortgage Loans in accordance
                with
                the Purchase Agreement and the Commitment Letter was, at the respective
                times of
                such signing and delivery, and is as of the date hereof, duly elected
                or
                appointed, qualified and acting as such officer or attorney-in-fact,
                and the
                signatures of such persons appearing on such documents are their
                genuine
                signatures.

              

              4. Attached
                hereto as Attachment II is a true and correct copy of the resolutions
                duly
                adopted by the board of directors of the Interim Servicer on ________________,
                200_ (the “Resolutions”) with respect to the authorization and approval of the
                servicing of the Mortgage Loans; said Resolutions have not been amended,
                modified, annulled or revoked and are in full force and effect on
                the date
                hereof.

              

              5. Attached
                hereto as Attachment III is a Certificate of Good Standing of the
                Interim
                Servicer dated ______________, 200_. No event has occurred since
                ___________________, 200_ which has affected the good standing of
                the Interim
                Servicer under the laws of the State of _________________.

              

              6. Interim
                Servicer is licensed to originate and sell the Mortgage Loans in
                all the states
                in which the Interim Servicer originates and sells Mortgage Loans.
                No such
                licenses have been suspended or revoked by any court, administrative
                agency,
                arbitrator or governmental body and no proceedings are pending which
                might
                result in such suspension or revocation. Upon request of the Purchaser,
                Interim
                Servicer shall provide a copy of any such state licenses requested.

              

              
                
                  
                  

                

                
                  2-1

                  
                    

                  

                

                
                  
                  

                

              

              7. All
                of
                the representations and warranties of the Interim Servicer contained
                in
                Subsections 7.1 and 7.2 of the Purchase Agreement were true and correct
                in all
                material respects as of the date of the Purchase Agreement and are
                true and
                correct in all material respects as of the date hereof.

              

              8. The
                Interim Servicer has performed all of its duties and has satisfied
                all the
                material conditions on its part to be performed or satisfied prior
                to the
                related Closing Date pursuant to the Purchase Agreement and the related
                Commitment Letter.

              

              All
                capitalized terms used herein and not otherwise defined shall have
                the meaning
                assigned to them in the Purchase Agreement.

              

              
                
                  
                  

                

                
                  2-2

                  
                    

                  

                

                
                  
                  

                

              

              IN
                WITNESS WHEREOF, I have hereunto signed my name and affixed the seal
                of the
                Interim Servicer.

              

              Dated: ________________________

              

              [Seal]

              NEW
                CENTURY MORTGAGE CORPORATION

              (Interim
                Servicer)

              

              

              By:_____________________________________________

              Name:___________________________________________

              Title:
                Vice President

              

              I,
                _______________________, Secretary of the Interim Servicer, hereby
                certify that
                _________________________ is the duly elected, qualified and acting
                Vice
                President of the Interim Servicer and that the signature appearing
                above is
                genuine.

              

              IN
                WITNESS WHEREOF, I have hereunto signed my name. 

              

              Dated:
                __________________________

              [Seal]

              NEW
                CENTURY MORTGAGE CORPORATION

              (Interim
                Servicer)

              

              By:____________________________________________

              Name:__________________________________________

              Title:
                [Assistant] Secretary

              
                
                  
                  

                

                
                  2-1

                  
                    

                  

                

                
                  
                  

                

              

              EXHIBIT
                2

               

              FORM
                OF
                OPINION OF COUNSEL TO THE SELLER AND THE INTERIM SERVICER

               

              ______________________________

              (Date)

               

              DB
                Structured Products, Inc.

              60
                Wall
                Street

              New
                York,
                New York 10005

              

              
                	 	
                        Re:

                      	
                        Master
                          Mortgage Loan Purchase and Interim
                          Servicing

                      

              

              Agreement,
                dated as of March 1, 2005

               

              Gentlemen:

               

              I
                am
                Senior Counsel to NC Capital Corporation, a California corporation
                (the
“Seller”) and New Century Mortgage Corporation, a California corporation
                (the
“Interim Servicer”), and I am delivering this opinion in my capacity as Senior
                Counsel to Seller and Interim Servicer in connection with the sale
                of certain
                mortgage loans by the Seller to DB Structured Products, Inc. (the
“Purchaser”)
                pursuant to (i) a Master Mortgage Loan Purchase and Interim Servicing
                Agreement,
                dated as of March 1, 2005, among the Seller, the Interim Servicer
                and the
                Purchaser (the “Purchase Agreement”), and the Commitment Letter, dated January
                21, 2005, among the Seller, the Interim Servicer and the Purchaser
                (the
“Commitment Letter”). Capitalized terms not otherwise defined herein have the
                meanings set forth in the Purchase Agreement.

               

              In
                connection with rendering this opinion letter, I, or attorneys working
                under my
                direction, have examined, among other things, originals, certified
                copies or
                copies otherwise identified to my satisfaction as being true copies
                of the
                following:

               

              
                	 	
                        A.

                      	
                        The
                          Purchase Agreement;

                      

              

              
                	 	
                        B.

                      	
                        The
                          Commitment Letter;

                      

              

              
                	 	
                        C.

                      	
                        The
                          Seller’s Certificate of Incorporation and By-Laws, as amended
                          to date;
                          

                      

              

              
                	 	
                        D.

                      	
                        The
                          Interim Servicer’s Certificate of Incorporation and By-Laws, as amended
                          to
                          date; 

                      

              

              
                	 	
                        E.

                      	
                        Resolutions
                          adopted by the board of directors of the Seller relating
                          to the
                          transactions covered by this opinion (the “Seller’s Board Resolutions”);
                          and

                      

              

               

              
                	 	
                        F.

                      	
                        Resolutions
                          adopted by the board of directors of the Interim Servicer
                          relating to the
                          transactions covered by this opinion (the “Interim Servicer’s Board
                          Resolutions”).

                      

              

               

              
                
                  
                  

                

                
                  2-1

                  
                    

                  

                

                
                  
                  

                

              

              For
                the
                purpose of rendering this opinion, I have made such documentary,
                factual and
                legal examinations as I deemed necessary under the circumstances.
                As to factual
                matters, I have relied upon statements, certificates and other assurances
                of
                public officials and of officers and other representatives of the
                Seller, and
                upon such other certificates as I deemed appropriate, which factual
                matters have
                not been independently established or verified by me. I have also
                assumed, among
                other things, the genuineness of all signatures, the legal capacity
                of all
                natural persons, the authenticity of all documents submitted to me
                as originals,
                and the conformity to original documents of all documents submitted
                to me as
                copies and the authenticity of the originals of such copied
                documents.

               

              On
                the
                basis of and subject to the foregoing examination, and in reliance
                thereon, and
                subject to the assumptions, qualifications, exceptions and limitations
                expressed
                herein, I am of the opinion that:

               

              1. The
                Seller and the Interim Servicer have been duly incorporated and are
                validly
                existing and in good standing under the laws of the State of California
                with
                corporate power and authority to own their properties and conduct
                their business
                as presently conducted by them. The Seller and the Interim Servicer
                have the
                corporate power and authority to service the Mortgage Loans, and
                to execute,
                deliver, and perform their obligations under the Purchase Agreement
                and the
                Commitment Letter (sometimes collectively, the “Agreements”).

               

              2. The
                Purchase Agreement and the Commitment Letter have been duly and validly
                authorized, executed and delivered by the Seller and the Interim
                Servicer.

               

              3. The
                Purchase Agreement and the Commitment Letter constitute valid, legal
                and binding
                obligations of the Seller and the Interim Servicer, enforceable against
                the
                Seller and the Interim Servicer in accordance with their respective
                terms.

               

              4. No
                consent, approval, authorization or order of any state or federal
                court or
                government agency or body is required for the execution, delivery
                and
                performance by the Seller of the Purchase Agreement and the Commitment
                Letter,
                or the consummation of the transactions contemplated by the Purchase
                Agreement
                and the Commitment Letter, except for those consents, approvals,
                authorizations
                or orders which previously have been obtained.

               

              5. Neither
                the servicing of the Mortgage Loans by the Interim Servicer as provided
                in the
                Purchase Agreement and the Commitment Letter, nor the fulfillment
                by the Seller
                or the Interim Servicer of the terms of or the consummation of any
                other
                transactions contemplated in the Purchase Agreement and the Commitment
                Letter
                will result in a breach of any term or provision of the certificate
                of
                incorporation or by-laws of the Seller or the Interim Servicer, or,
                to my
                knowledge, will conflict with, result in a breach or violation of,
                or constitute
                a default under, (i) the terms of any indenture or other agreement
                or instrument
                known to me to which the Seller or the Interim Servicer are parties
                or by which
                they are bound, (ii) any State of California or federal statute or
                regulation
                applicable to the Selleror the Interim Servicer, or (iii) any order
                of any State
                of California or federal court, regulatory body, administrative agency
                or
                governmental body having jurisdiction over the Seller or the Interim
                Servicer,
                except in any such case where the default, breach or violation would
                not have a
                material adverse effect on the Seller or the Interim Servicer or
                its ability to
                perform its obligations under the Purchase Agreement.

               

              
                
                  
                  

                

                
                  2-2

                  
                    

                  

                

                
                  
                  

                

              

              6. There
                is
                no action, suit, proceeding or investigation pending or, to my knowledge,
                threatened against the Seller or the Interim Servicer which, in my
                judgment,
                either in any one instance or in the aggregate, would draw into question
                the
                validity of the Purchase Agreement or which would be likely to impair
                materially
                the ability of the Seller or the Interim Servicer to perform under
                the terms of
                the Purchase Agreement.

               

              7. The
                sale
                of each Mortgage Note and Mortgage as and in the manner contemplated
                by the
                Purchase Agreement is sufficient fully to transfer to the Purchaser
                all right,
                title and interest of the Seller thereto as noteholder and mortgagee.
                

               

              The
                opinions above are subject to the following additional assumptions,
                exceptions,
                qualifications and limitations: 

               

              A. I
                have
                assumed that all parties to the Agreements other than the Seller
                and the Interim
                Servicer have all requisite power and authority to execute, deliver
                and perform
                their respective obligations under each of the Agreements, and that
                the
                Agreements have been duly authorized by all necessary corporate action
                on the
                part of such parties, have been executed and delivered by such parties
                and
                constitute the legal, valid and binding obligations of such parties.
                

               

              B. My
                opinion expressed in paragraphs 3 and 7 above is subject to the qualifications
                that (i) the enforceability of the Agreements may be limited by the
                effect of
                laws relating to (1) bankruptcy, reorganization, insolvency, moratorium
                or other
                similar laws now or hereafter in effect relating to creditors’ rights generally,
                including, without limitation, the effect of statutory or other laws
                regarding
                fraudulent conveyances or preferential transfers, and (2) general
                principles of
                equity upon the specific enforceability of any of the remedies, covenants
                or
                other provisions of the Agreements and upon the availability of injunctive
                relief or other equitable remedies and the application of principles
                of equity
                (regardless of whether such enforceability is considered in a proceeding
                in
                equity or at law) as such principles relate to, limit or affect the
                enforcement
                of creditors’ rights generally and the discretion of the court before which any
                proceeding for such enforcement may be brought; and (ii) I express
                no opinion
                herein with respect to the validity, legality, binding effect or
                enforceability
                of (a) provisions for indemnification in the Agreements to the extent
                such
                provisions may be held to be unenforceable as contrary to public
                policy or (b)
                Section 18 of the Purchase Agreement. 

               

              C. I
                have
                assumed, without independent check or certification, that there are
                no
                agreements or understandings among the Seller, the Interim Servicer,
                the
                Purchaser and any other party which would expand, modify or otherwise
                affect the
                terms of the documents described herein or the respective rights
                or obligations
                of the parties thereunder. 

               

              
                
                  
                  

                

                
                  2-3

                  
                    

                  

                

                
                  
                  

                

              

              

               

              I
                am
                admitted to practice in the State of California and I render no opinion
                herein
                as to matters involving the laws of any jurisdiction other than the
                State of
                California and the Federal laws of the United States of America.

               

              Very
                truly yours,

              

              

              

              ___________________________

              

              Jeremy
                Hayden, Esq.

              As
                Senior
                Counsel for NC Capital Corporation and 

              New
                Century Mortgage Corporation

              
                
                  
                  

                

                
                  2-4

                  
                    

                  

                

                
                  
                  

                

              

              EXHIBIT
                3

               

              FORM
                OF
                SECURITY RELEASE CERTIFICATION

               

              I.    Release
                of Security Interest

               

              ___________________________,
                hereby relinquishes any and all right, title and interest it may
                have in and to
                the Mortgage Loans described in Exhibit A attached hereto upon purchase
                thereof
                by DB Structured Products, Inc. from the Seller named below pursuant
                to that
                certain Master Mortgage Loan Purchase and Interim Servicing Agreement,
                dated as
                of March 1, 2005, as of the date and time of receipt by
                ______________________________ of $__________ for such Mortgage Loans
                (the “Date
                and Time of Sale”), and certifies that all notes, mortgages, assignments and
                other documents in its possession relating to such Mortgage Loans
                have been
                delivered and released to the Seller named below or its designees
                as of the Date
                and Time of Sale.

               

              Name
                and
                Address of Financial Institution

               

              ____________________________

              (Name)

               

              ____________________________

              (Address)

               

              By:______________________________

              
                
                  
                  

                

                
                  3-1

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        II.

                      	
                        Certification
                          of Release

                      

              

               

              The
                Seller named below hereby certifies to DB Structured Products, Inc.
                that, as of
                the Date and Time of Sale of the above mentioned Mortgage Loans to
                DB Structured
                Products, Inc., the security interests in the Mortgage Loans released
                by the
                above named corporation comprise all security interests relating
                to or affecting
                any and all such Mortgage Loans. The Seller warrants that, as of
                such time,
                there are and will be no other security interests affecting any or
                all of such
                Mortgage Loans.

               

              NC
                CAPITAL CORPORATION

              Seller

               

              By:____________________________________________

              Name:__________________________________________

              Title:___________________________________________

               

              

               

              
                
                  
                  

                

                
                  3-2

                  
                    

                  

                

                
                  
                  

                

              

              EXHIBIT
                4

               

              ASSIGNMENT
                AND CONVEYANCE

               

              On
                this
                _______ day of ________, 200_, NC Capital Corporation (the “Seller”), as Seller
                under that certain Master Mortgage Loan Purchase and Interim Servicing
                Agreement, dated as of March 1, 2005 (the “Agreement”), does hereby sell,
                transfer, assign, set over and convey to DB Structured Products,
                Inc. as
                Purchaser under the Agreement, without recourse, but subject to the
                terms of the
                Agreement, all rights, title and interest of the Seller in and to
                the Mortgage
                Loans listed on the Mortgage Loan Schedule attached hereto as Schedule
                One,
                together with the related Mortgage Files and all rights and obligations
                arising
                under the documents contained therein. Pursuant to Subsection 6.03
                of the
                Agreement, the Seller or New Century Mortgage Corporation (the “Interim
                Servicer”) has delivered or shall deliver to the Custodian the Mortgage Loan
                Documents for each Mortgage Loan to be purchased and such other documents
                as set
                forth in the Agreement. The contents of each related Servicing File
                required to
                be retained by the Interim Servicer to service the Mortgage Loans
                pursuant to
                the Agreement and thus not delivered to the Purchaser are and shall
                be held in
                trust by the Interim Servicer for the benefit of the Purchaser as
                the owner
                thereof. The Interim Servicer’s possession of any portion of each such Servicing
                File is at the will of the Purchaser for the sole purpose of facilitating
                servicing of the related Mortgage Loan pursuant to the Agreement,
                and such
                retention and possession by the Interim Servicer shall be in a custodial
                capacity only. The ownership of each Mortgage Note, Mortgage, and
                the contents
                of the Mortgage File and Servicing File is vested in the Purchaser
                and the
                ownership of all records and documents with respect to the related
                Mortgage Loan
                prepared by or which come into the possession of the Interim Servicer
                shall
                immediately vest in the Purchaser and shall be retained and maintained,
                in
                trust, by the Interim Servicer at the will of the Purchaser in such
                custodial
                capacity only.

               

              The
                Seller and the Interim Servicer, as applicable, confirm to the Purchaser
                that
                the representations and warranties set forth in Subsections 7.01
                and 7.02 of the
                Agreement and in the Commitment Letter, dated ________ __, 200_,
                are true and
                correct as of the date hereof, and that all statements made in the
                Seller’s
                Officer’s Certificate and the Interim Servicer’s Officer’s Certificate and all
                attachments thereto remain complete, true and correct in all respects
                as of the
                date hereof.

               

              Capitalized
                terms used herein and not otherwise defined shall have the meanings
                set forth in
                the Agreement.

               

              NC
                CAPITAL CORPORATION

              (Seller)

               

              By:___________________________________

              Name:_________________________________

              Title:__________________________________

               

              
                
                  
                  

                

                
                  4-1

                  
                    

                  

                

                
                  
                  

                

              

              NEW
                CENTURY MORTGAGE CORPORATION

              (Interim
                Servicer)

               

              By:__________________________________

              Name:________________________________

              Title:_________________________________

               

              

               

              
                
                  
                  

                

                
                  4-2

                  
                    

                  

                

                
                  
                  

                

              

              EXHIBIT
                5

               

              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 Purchaser
                and
                which shall be retained by the Seller or delivered to the
                Custodian:

               

              
                	 	
                        1.

                      	
                        Mortgage
                          Loan Documents.

                      

              

               

              
                	 	
                        2.

                      	
                        Residential
                          loan application.

                      

              

               

              
                	 	
                        3.

                      	
                        Mortgage
                          Loan closing statement.

                      

              

               

              
                	 	
                        4.

                      	
                        Verification
                          of employment and income, if required pursuant to the related
                          Mortgage
                          Loan’s origination program.

                      

              

               

              
                	 	
                        5.

                      	
                        Verification
                          of acceptable evidence of source and amount of downpayment,
                          if required
                          pursuant to the related Mortgage Loan’s origination
                          program.

                      

              

               

              
                	 	
                        6.

                      	
                        Credit
                          report on Mortgagor.

                      

              

               

              
                	 	
                        7.

                      	
                        Residential
                          appraisal report.

                      

              

               

              
                	 	
                        8.

                      	
                        Photograph
                          of the Mortgaged Property.

                      

              

               

              
                	 	
                        9.

                      	
                        Survey
                          of the Mortgaged Property.

                      

              

               

              
                	 	
                        10.

                      	
                        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.

                      

              

               

              
                	 	
                        11.

                      	
                        All
                          required disclosure statements and statement of Mortgagor
                          confirming
                          receipt thereof.

                      

              

               

              
                	 	
                        12.

                      	
                        If
                          available, termite report, structural engineer’s report, water potability
                          and septic certification.

                      

              

               

              
                	 	
                        13.

                      	
                        Sales
                          Contract, if applicable.

                      

              

               

              
                	 	
                        14.

                      	
                        Hazard
                          insurance policy.

                      

              

               

              
                
                  
                  

                

                
                  5-1

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        15.

                      	
                        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.

                      

              

               

              16.    Amortization
                schedule, if available.

               

              
                	 	
                        17.

                      	
                        Payment
                          history for Mortgage Loans that have been closed for more
                          than 90
                          days.

                      

              

               

              

               

              

               

              
                
                  
                  

                

                
                  5-2

                  
                    

                  

                

                
                  
                  

                

              

              EXHIBIT
                6

               

              FORM
                OF
                CUSTODIAL ACCOUNT LETTER AGREEMENT

               

              ________________________
                __, 200__

               

              
                	
                        To:

                      	_____________________
	 	_____________________
	 	_____________________
	 	
                        (the
                          “Depository”)

                      

              

               

              As
                Interim Servicer under the Master Mortgage Loan Purchase and Interim
                Servicing
                Agreement, dated as of March 1, 2005, we hereby authorize and request
                you to
                establish an account, as a Custodial Account, to be designated as
“New Century
                Mortgage Corporation in trust for DB Structured Products, Inc..” All deposits in
                the account shall be subject to withdrawal therefrom by order signed
                by the
                Interim Servicer. You may refuse any deposit which would result in
                violation of
                the requirement that the account be fully insured as described below.
                This
                letter is submitted to you in duplicate. Please execute and return
                one original
                to us.

               

              NEW
                CENTURY MORTGAGE CORPORATION

              (Interim
                Servicer)

               

              By:__________________________________

               

              Name:________________________________

               

              Title:_________________________________

               

              Date:_________________________________

               

              
                
                  
                  

                

                
                  6-1

                  
                    

                  

                

                
                  
                  

                

              

              The
                undersigned, as Depository, hereby certifies that the above-described
                account
                has been established under Account Number ___________ at the office
                of the
                Depository indicated above, and agrees to honor withdrawals on such
                account as
                provided above. The full amount deposited at any time in the account
                will be
                insured by the Federal Deposit Insurance Corporation through the
                Bank Insurance
                Fund (“BIF”) or the Savings Association Insurance Fund (“SAIF”).

               

              

               

              _____________________________________

              Depository

               

              By:___________________________________

               

              Name:_________________________________

               

              Title:__________________________________

               

              Date:___________________________________

              

               

              
                
                  
                  

                

                
                  6-2

                  
                    

                  

                

                
                  
                  

                

              

              EXHIBIT
                7

               

              FORM
                OF
                ESCROW ACCOUNT LETTER AGREEMENT

               

              ___________
                __, 200__

              
                 

                
                  	
                          To:

                        	_____________________
	 	_____________________
	 	_____________________
	 	
                          (the
                            “Depository”)

                        

                

                 

              

              As
                Interim Servicer under the Master Mortgage Loan Purchase and Interim
                Servicing
                Agreement, dated as of March 1, 2005, we hereby authorize and request
                you to
                establish an account, as an Escrow Account, to be designated as “New Century
                Mortgage Corportion in trust for DB Structured Products, Inc. and
                various
                Mortgagors, Fixed and Adjustable Rate Mortgage Loans.” All deposits in the
                account shall be subject to withdrawal therefrom by order signed
                by the Interim
                Servicer. You may refuse any deposit which would result in violation
                of the
                requirement that the account be fully insured as described below.
                This letter is
                submitted to you in duplicate. Please execute and return one original
                to
                us.

              
                 

                NEW
                  CENTURY MORTGAGE CORPORATION

                (Interim
                  Servicer)

                 

                By:__________________________________

                 

                Name:________________________________

                 

                Title:_________________________________

                 

                Date:_________________________________

              

               

              
                
                  
                  

                

                
                  7-1

                  
                    

                  

                

                
                  
                  

                

              

              The
                undersigned, as Depository, hereby certifies that the above-described
                account
                has been established under Account Number ___________ at the office
                of the
                Depository indicated above, and agrees to honor withdrawals on such
                account as
                provided above. The full amount deposited at any time in the account
                will be
                insured by the Federal Deposit Insurance Corporation through the
                Bank Insurance
                Fund (“BIF”) or the Savings Association Insurance Fund (“SAIF”).

              
                 

                _____________________________________

                Depository

                 

                By:___________________________________

                 

                Name:_________________________________

                 

                Title:__________________________________

                 

                Date:___________________________________

              

              

              
                
                  
                  

                

                
                  7-2

                  
                    

                  

                

                
                  
                  

                

              

              EXHIBIT
                8

               

              SERVICING
                ADDENDUM

               

              
                	 	
                        Subsection
                          11.01

                      	
                        Interim
                          Servicer to Act as Servicer.

                      

              

               

              The
                Interim Servicer, as independent contract servicer, shall service
                and administer
                the Mortgage Loans that the Seller sells to the Purchaser hereunder
                in
                accordance with all applicable laws, rules and regulations, the terms
                of the
                Mortgage Note and Mortgage and this Agreement during the Interim
                Servicing
                Period and shall have full power and authority, acting alone, to
                do or cause to
                be done any and all things in connection with such servicing and
                administration
                which the Interim Servicer may deem necessary or desirable and consistent
                with
                the terms of this Agreement.

               

              Consistent
                with the terms of this Agreement, the Interim Servicer may waive,
                modify or vary
                any term of any Mortgage Loan or consent to the postponement of strict
                compliance with any such term or in any manner grant indulgence to
                any Mortgagor
                if in the Interim Servicer’s reasonable and prudent determination such waiver,
                modification, postponement or indulgence is not materially adverse
                to the
                Purchaser; provided, however, that the Interim Servicer shall not
                permit any
                modification with respect to any Mortgage Loan that would change
                the Mortgage
                Interest Rate, defer or forgive the payment thereof or of any principal
                or
                interest payments, reduce the outstanding principal amount (except
                for actual
                payments of principal), make additional advances of additional principal
                or
                extend the final maturity date on such Mortgage Loan. Without limiting
                the
                generality of the foregoing, the Interim Servicer shall continue,
                and is hereby
                authorized and empowered, to execute and deliver on behalf of itself,
                and the
                Purchaser, all instruments of satisfaction or cancellation, or of
                partial or
                full release, discharge and all other comparable instruments, with
                respect to
                the Mortgage Loans and with respect to the Mortgaged Property. If
                reasonably
                required by the Interim Servicer, the Purchaser shall furnish the
                Interim
                Servicer with any powers of attorney and other documents necessary
                or
                appropriate to enable the Interim Servicer to carry out its servicing
                and
                administrative duties under this Agreement.

               

              Notwithstanding
                anything in this Agreement to the contrary, in the event of a Principal
                Prepayment in full or in part of a Mortgage Loan, the Interim Servicer
                may not
                waive any Prepayment Charge or portion thereof required by the terms
                of the
                related Mortgage Note unless (i) the Interim Servicer determines
                that such
                waiver would maximize recovery of Liquidation Proceeds for such Mortgage
                Loan,
                taking into account the value of such Prepayment Charge, or (ii)
                (A) the
                enforceability thereof is limited (1) by bankruptcy, insolvency,
                moratorium,
                receivership, or other similar law relating to creditors’ rights generally or
                (2) due to acceleration in connection with a foreclosure or other
                involuntary
                payment, or (B) the enforceability is otherwise limited or prohibited
                by
                applicable law. If the Interim Servicer waives or does not collect
                all or a
                portion of a Prepayment Charge relating to a Principal Prepayment
                in full due to
                any action or omission of the Interim Servicer, other than as provided
                above,
                the Interim Servicer shall deposit the amount of such Prepayment
                Charge (or such
                portion thereof as had been waived for deposit) into the Custodial
                Account for
                distribution in accordance with the terms of this Agreement.

               

              
                
                  
                  

                

                
                  8-1

                  
                    

                  

                

                
                  
                  

                

              

              In
                servicing and administering the Mortgage Loans, the Interim Servicer
                shall
                employ procedures including collection procedures and exercise the
                same care
                that it customarily employs and exercises in servicing and administering
                mortgage loans for its own account giving due consideration to accepted
                mortgage
                servicing practices of prudent lending institutions and the Purchaser’s reliance
                on the Interim Servicer.

               

              
                	 	
                        Subsection
                          11.02

                      	
                        Collection
                          of Mortgage Loan Payments.

                      

              

               

              Continuously
                from the related Closing Date until the expiration of the Interim
                Servicing
                Period, the Interim Servicer shall proceed diligently to collect
                all payments
                due under each Mortgage Loan when the same shall become due and payable
                and
                shall, to the extent such procedures shall be consistent with this
                Agreement and
                the terms and provisions of any related Primary Insurance Policy
                or LPMI Policy,
                follow such collection procedures as it follows with respect to mortgage
                loans
                comparable to the Mortgage Loans and held for its own account. Further,
                the
                Interim Servicer shall take special care in ascertaining and estimating
                annual
                ground rents, taxes, assessments, water rates, fire and hazard insurance
                premiums, mortgage insurance premiums, and all other charges that,
                as provided
                in the Mortgage, will become due and payable to the end that the
                installments
                payable by the Mortgagors will be sufficient to pay such charges
                as and when
                they become due and payable.

               

              
                	 	
                        Subsection
                          11.03

                      	
                        Realization
                          Upon Defaulted Mortgage Loans.

                      

              

               

              (a) The
                Interim Servicer shall use its best efforts, consistent with the
                procedures that
                the Interim Servicer would use in servicing loans for its own account,
                to
                foreclose upon or otherwise comparably convert the ownership of such
                Mortgaged
                Properties as come into and continue in default and as to which no
                satisfactory
                arrangements can be made for collection of delinquent payments pursuant
                to
                Subsection 11.01. The Interim Servicer shall use its best efforts
                to realize
                upon defaulted Mortgage Loans in such a manner as will maximize the
                receipt of
                principal and interest by the Purchaser, taking into account, among
                other
                things, the timing of foreclosure proceedings. The foregoing is subject
                to the
                provisions that, in any case in which Mortgaged Property shall have
                suffered
                damage, the Interim Servicer shall not be required to expend its
                own funds
                toward the restoration of such property in excess of $2,000 unless
                it shall
                determine in its discretion (i) that such restoration will increase
                the proceeds
                of liquidation of the related Mortgage Loan to Purchaser after reimbursement
                to
                itself for such expenses, and (ii) that such expenses will be recoverable
                by the
                Interim Servicer through Insurance Proceeds or Liquidation Proceeds
                from the
                related Mortgaged Property, as contemplated in Subsection 11.05.
                In the event
                that any payment due under any Mortgage Loan is not paid when the
                same becomes
                due and payable, or in the event the Mortgagor fails to perform any
                other
                covenant or obligation under the Mortgage Loan and such failure continues
                beyond
                any applicable grace period, the Interim Servicer shall take such
                action as it
                shall deem to be in the best interest of the Purchaser. In the event
                that any
                payment due under any Mortgage Loan remains delinquent for a period
                of 90 days
                or more, the Interim Servicer shall commence foreclosure proceedings,
                provided
                that prior to commencing foreclosure proceedings, the Interim Servicer
                shall
                notify the Purchaser in writing of the Interim Servicer’s intention to do so,
                and the Interim Servicer shall not commence foreclosure proceedings
                if the
                Purchaser objects to such action within ten (10) Business Days of
                receiving such
                notice. The Interim Servicer shall notify the Purchaser in writing
                of the
                commencement of foreclosure proceedings. In such connection, the
                Interim
                Servicer shall be responsible for all costs and expenses incurred
                by it in any
                such proceedings; provided, however, that it shall be entitled to
                reimbursement
                thereof from the related Mortgaged Property, as contemplated in Subsection
                11.05.

               

              
                
                  
                  

                

                
                  8-2

                  
                    

                  

                

                
                  
                  

                

              

              (b) Notwithstanding
                the foregoing provisions of this Subsection 11.03, with respect to
                any Mortgage
                Loan as to which the Interim 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 Interim Servicer shall not either
                (i) obtain
                title to such Mortgaged Property as a result of or in lieu of foreclosure
                or
                otherwise, or (ii) otherwise acquire possession of, or take any other
                action,
                with respect to, such Mortgaged Property if, as a result of any such
                action, the
                Purchaser 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 Interim
                Servicer has also previously determined, based on its reasonable
                judgment and a
                prudent report prepared by a Person who regularly conducts environmental
                audits
                using customary industry standards, that:

               

              (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 Purchaser
                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 Purchaser to take such actions with respect
                to the
                affected Mortgaged Property.

               

              The
                cost
                of the environmental audit report contemplated by this Subsection
                11.03 shall be
                advanced by the Interim Servicer, subject to the Interim Servicer’s right to be
                reimbursed therefor from the Custodial Account as provided in Subsection
                11.05(v).

               

              If
                the
                Interim Servicer determines, as described above, that it is in the
                best economic
                interest of the Purchaser 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 Interim
                Servicer shall
                take such action as it deems to be in the best economic interest
                of the
                Purchaser. The cost of any such compliance, containment, cleanup
                or remediation
                shall be advanced by the Interim Servicer, subject to the Interim
                Servicer’s
                right to be reimbursed therefor from the Custodial Account as provided
                in
                Subsection 11.05(v).

               

              
                
                  
                  

                

                
                  8-3

                  
                    

                  

                

                
                  
                  

                

              

              (c) Proceeds
                received in connection with any Final Recovery Determination, as
                well as any
                recovery resulting from a partial collection of Insurance Proceeds
                or
                Liquidation Proceeds in respect of any Mortgage Loan, will be applied
                in the
                following order of priority: first, to reimburse the Interim Servicer
                for any
                related unreimbursed Servicing Advances, pursuant to Subsections
                11.05(ii) and
                (v); 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 Interim 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 Interim Servicer pursuant
                to
                Subsection 11.05(iii).

               

              
                	 	
                        Subsection
                          11.04

                      	
                        Establishment
                          of Custodial Accounts; Deposits in Custodial Accounts.

                      

              

               

              The
                Interim Servicer shall segregate and hold all funds collected and
                received
                pursuant to each Mortgage Loan separate and apart from any of its
                own funds and
                general assets and shall establish and maintain one or more Custodial
                Accounts,
                in the form of time deposit or demand accounts. The creation of any
                Custodial
                Account shall be evidenced by a Custodial Account Letter Agreement
                in the form
                of Exhibit 6.

               

              The
                Interim Servicer shall deposit in the related Custodial Account on
                a daily
                basis, and retain therein the following payments and collections
                received by it
                subsequent to the Cut-off Date, or received by it prior to the Cut-off
                Date but
                allocable to a period subsequent thereto, other than in respect of
                principal and
                interest on the Mortgage Loans due on or before the Cut-off Date:

               

              (i) all
                payments on account of principal on the Mortgage Loans;

               

              (ii) all
                payments on account of interest on the Mortgage Loans, including
                all Prepayment
                Charges;

               

              
                	 	
                        (iii)

                      	
                        all
                          Liquidation Proceeds;

                      

              

               

              
                
                  
                  

                

                
                  8-4

                  
                    

                  

                

                
                  
                  

                

              

              (iv) all
                Insurance Proceeds including amounts required to be deposited pursuant
                to
                Subsections 11.10 and 11.11, other than proceeds to be held in the
                Escrow
                Account and applied to the restoration or repair of the Mortgaged
                Property or
                released to the Mortgagor in accordance with the Interim Servicer’s normal
                servicing procedures, the loan documents or applicable law;

               

              (v) all
                Condemnation Proceeds affecting any Mortgaged Property which are
                not released to
                the Mortgagor in accordance with the Interim Servicer’s normal servicing
                procedures, the loan documents or applicable law;

               

              (vi) all
                proceeds of any Mortgage Loan repurchased in accordance with Subsections
                7.03
                and 7.04 and all amounts required to be deposited by the Interim
                Servicer in
                connection with shortfalls in principal amount of Qualified Substitute
                Mortgage
                Loans pursuant to Subsection 7.03;

               

              (vii) any
                amounts required to be deposited by the Interim Servicer pursuant
                to Subsection
                11.11 in connection with the deductible clause in any blanket hazard
                insurance
                policy. Such deposit shall be made from the Interim Servicer’s own funds,
                without reimbursement therefor;

               

              (viii) any
                amounts required to be deposited by the Interim Servicer in connection
                with any
                REO Property pursuant to Subsection 11.13; and

               

              (ix) any
                amounts required to be deposited in the Custodial Account pursuant
                to
                Subsections 11.19 or 11.20.

               

              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 late payment charges and assumption
                fees,
                to the extent permitted by Subsection 11.21, need not be deposited
                by the
                Interim Servicer in the Custodial Account. Such Custodial Account
                shall be an
                Eligible Account. Any interest or earnings on funds deposited in
                the Custodial
                Account by the depository institution shall accrue to the benefit
                of the Interim
                Servicer and the Interim Servicer shall be entitled to retain and
                withdraw such
                interest from the related Custodial Account pursuant to Subsection
                11.05(iii).
                The Interim Servicer shall give notice to the Purchaser of the location
                of the
                Custodial Account when established and prior to any change thereof.

               

              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 Interim Servicer shall, on or before twelve
                o’clock
                noon Eastern time on such Business Day, withdraw from the related
                Custodial
                Account any and all amounts payable to the Purchaser and remit such
                amounts to
                the Purchaser by wire transfer of immediately available funds.

               

              
                
                  
                  

                

                
                  8-5

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        Subsection
                          11.05

                      	
                        Permitted
                          Withdrawals From the Custodial Account.

                      

              

               

              The
                Interim Servicer may, from time to time, withdraw from the related
                Custodial
                Account for the following purposes:

               

              (i) to
                make
                distributions to the Purchaser in the amounts and in the manner provided
                for in
                Subsection 11.14;

               

              (ii) to
                reimburse itself for unreimbursed Servicing Advances, the Interim
                Servicer’s
                right to reimburse itself pursuant to this subclause (ii) with respect
                to any
                Mortgage Loan being limited to related Liquidation Proceeds, Condemnation
                Proceeds, Insurance Proceeds and such other amounts as may be collected
                by the
                Interim Servicer from the Mortgagor or otherwise relating to the
                Mortgage Loan,
                it being understood that, in the case of such reimbursement, the
                Interim
                Servicer’s right thereto shall be prior to the rights of the Purchaser, except
                that, where the Seller is required to repurchase a Mortgage Loan,
                pursuant to
                Subsection 7.03, the Interim Servicer’s right to such reimbursement shall be
                subsequent to the payment to the Purchaser of the Repurchase Price
                pursuant to
                Subsection 7.03 and all other amounts required to be paid to the
                Purchaser with
                respect to such Mortgage Loans;

               

              (iii) to
                pay to
                itself pursuant to Subsection 11.21 as servicing compensation (a)
                any interest
                earned on funds in the Custodial Account (all such interest to be
                withdrawn
                monthly not later than each Distribution Date), and (b) the Servicing
                Fee from
                that portion of any payment or recovery as to interest on a particular
                Mortgage
                Loan;

               

              (iv) to
                pay to
                itself with respect to each Mortgage Loan that has been repurchased
                pursuant to
                Subsection 7.03 all amounts received thereon and not distributed
                as of the date
                on which the related Repurchase Price is determined;

               

              (v) to
                pay,
                or to reimburse the Interim Servicer for advances in respect of,
                expenses
                incurred in connection with any Mortgage Loan pursuant to Subsection
                11.03(b),
                but only to the extent of amounts received in respect of the Mortgage
                Loans to
                which such expense is attributable;

               

              (vi) to
                clear
                and terminate the Custodial Account on the termination of this
                Agreement.

               

              The
                Interim 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 pursuant to such subclauses (ii) - (v) above.

               

              
                	 	
                        Subsection
                          11.06

                      	
                        Establishment
                          of Escrow Accounts; Deposits in Escrow Accounts.

                      

              

               

              The
                Interim Servicer shall segregate and hold all funds collected and
                received
                pursuant to each Mortgage Loan which constitute Escrow Payments separate
                and
                apart from any of its own funds and general assets and shall establish
                and
                maintain one or more Escrow Accounts, in the form of time deposit
                or demand
                accounts. The creation of any Escrow Account shall be evidenced by
                an Escrow
                Account Letter Agreement in the form of Exhibit 7.

               

              
                
                  
                  

                

                
                  8-6

                  
                    

                  

                

                
                  
                  

                

              

              The
                Interim Servicer shall deposit in the Escrow Account or Accounts
                on a daily
                basis, and retain therein, (i) all Escrow Payments collected on account
                of the
                Mortgage Loans, for the purpose of effecting timely payment of any
                such items as
                required under the terms of this Agreement, and (ii) all Insurance
                Proceeds
                which are to be applied to the restoration or repair of any Mortgaged
                Property.
                The Interim Servicer shall make withdrawals therefrom only to effect
                such
                payments as are required under this Agreement, and for such other
                purposes as
                shall be as set forth or in accordance with Subsection 11.08. The
                Interim
                Servicer shall be entitled to retain any interest paid on funds deposited
                in the
                related Escrow Account by the depository institution other than interest
                on
                escrowed funds required by law to be paid to the Mortgagor and, to
                the extent
                required by law, the Interim Servicer shall pay interest on escrowed
                funds to
                the Mortgagor notwithstanding that the Escrow Account is non-interest
                bearing or
                that interest paid thereon is insufficient for such purposes.

               

              
                	 	
                        Subsection
                          11.07

                      	
                        Permitted
                          Withdrawals From Escrow Account.

                      

              

               

              Withdrawals
                from the related Escrow Account may be made by the Interim Servicer
                (i) to
                effect timely payments of ground rents, taxes, assessments, water
                rates, hazard
                insurance premiums, Primary Insurance Policy premiums, if applicable,
                and
                comparable items, (ii) to reimburse the Interim Servicer for any
                Servicing
                Advance made by the Interim Servicer with respect to a related Mortgage
                Loan but
                only from amounts received on the related Mortgage Loan which represent
                late
                payments or collections of Escrow Payments thereunder, (iii) to refund
                to the
                Mortgagor any funds as may be determined to be overages, (iv) for
                transfer to
                the related Custodial Account in accordance with the terms of this
                Agreement,
                (v) for application to restoration or repair of the Mortgaged Property,
                (vi) to
                pay to the Interim Servicer, or to the Mortgagor to the extent required
                by law,
                any interest paid on the funds deposited in the Escrow Account, or
                (vii) to
                clear and terminate the Escrow Account on the termination of this
                Agreement.

               

              
                	 	
                        Subsection
                          11.08

                      	
                        Payment
                          of Taxes, Insurance and Other Charges; Maintenance of Primary
                          Insurance
                          Policies and LPMI Policies; Collections Thereunder.

                      

              

               

              With
                respect to each Mortgage Loan, the Interim Servicer shall maintain
                accurate
                records reflecting the status of ground rents, taxes, assessments,
                water rates
                and other charges which are or may become a lien upon the Mortgaged
                Property and
                the status of Primary Insurance Policy and LPMI Policy premiums and
                fire and
                hazard insurance coverage and shall obtain, from time to time, all
                bills for the
                payment of such charges, including insurance renewal premiums and
                shall effect
                payment thereof prior to the applicable penalty or termination date
                and at a
                time appropriate for securing maximum discounts allowable, employing
                for such
                purpose deposits of the Mortgagor in the related Escrow Account which
                shall have
                been estimated and accumulated by the Interim Servicer in amounts
                sufficient for
                such purposes, as allowed under the terms of the Mortgage and applicable
                law. To
                the extent that the Mortgage does not provide for Escrow Payments,
                the Interim
                Servicer shall determine that any such payments are made by the Mortgagor
                at the
                time they first become due. The Interim Servicer assumes full responsibility
                for
                the timely payment of all such bills and shall effect timely 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.

               

              
                
                  
                  

                

                
                  8-7

                  
                    

                  

                

                
                  
                  

                

              

              The
                Interim Servicer shall maintain in full force and effect, a Primary
                Insurance
                Policy, issued by a Qualified Insurer, with respect to each Mortgage
                Loan for
                which such coverage is required. Such coverage shall be maintained
                until the
                Loan-to-Value Ratio of the related Mortgage Loan is reduced to that
                amount for
                which FNMA no longer requires such insurance to be maintained. The
                Interim
                Servicer will not cancel or refuse to renew any Primary Insurance
                Policy in
                effect on the related Closing Date that is required to be kept in
                force under
                this Agreement unless a replacement Primary Insurance Policy or LPMI
                Policy for
                such cancelled or non- renewed policy is obtained from and maintained
                with a
                Qualified Insurer. The Interim Servicer shall not take any action
                which would
                result in non-coverage under any applicable Primary Insurance Policy
                or LPMI
                Policy of any loss which, but for the actions of the Interim Servicer,
                would
                have been covered thereunder. In connection with any assumption or
                substitution
                agreement entered into or to be entered into pursuant to Subsection
                11.19, the
                Interim Servicer shall promptly notify the insurer under the related
                Primary
                Insurance Policy or LPMI Policy, if any, of such assumption or substitution
                of
                liability in accordance with the terms of such policy and shall take
                all actions
                which may be required by such insurer as a condition to the continuation
                of
                coverage under the Primary Insurance Policy or LPMI Policy. If such
                Primary
                Insurance Policy is terminated as a result of such assumption or
                substitution of
                liability, the Interim Servicer shall obtain a replacement Primary
                Insurance
                Policy as provided above.

               

              In
                connection with its activities as servicer, the Interim Servicer
                agrees to
                prepare and present, on behalf of itself, and the Purchaser, claims
                to the
                insurer under any Primary Insurance Policy or LPMI Policy in a timely
                fashion in
                accordance with the terms of such policies and, in this regard, to
                take such
                action as shall be necessary to permit recovery under any Primary
                Insurance
                Policy or LPMI Policy respecting a defaulted Mortgage Loan. Pursuant
                to
                Subsection 11.04, any amounts collected by the Interim Servicer under
                any
                Primary Insurance Policy or LPMI Policy shall be deposited in the
                related
                Custodial Account, subject to withdrawal pursuant to Subsection
                11.05.

               

              
                	 	
                        Subsection
                          11.09

                      	
                        Transfer
                          of Accounts.

                      

              

               

              The
                Interim Servicer may transfer the related Custodial Account or the
                related
                Escrow Account to a different depository institution from time to
                time. Such
                transfer shall be made only upon obtaining the consent of the Purchaser,
                which
                consent shall not be unreasonably withheld. In any case, the Custodial
                Account
                and Escrow Account shall be Eligible Accounts.

               

              
                
                  
                  

                

                
                  8-8

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        Subsection
                          11.10

                      	
                        Maintenance
                          of Hazard Insurance.

                      

              

               

              The
                Interim Servicer shall cause to be maintained for each Mortgage Loan
                fire and
                hazard insurance with extended coverage as is customary in the area
                where the
                Mortgaged Property is located in an amount which is at least equal
                to the lesser
                of (i) the amount necessary to fully compensate for any damage or
                loss to the
                improvements which are a part of such property on a replacement cost
                basis or
                (ii) the outstanding principal balance of the Mortgage Loan, in each
                case in an
                amount not less than such amount as is necessary to prevent the Mortgagor
                and/or
                the Mortgagee from becoming a co-insurer. If the Mortgaged Property
                is in an
                area identified on a Flood Hazard Boundary Map or Flood Insurance
                Rate Map
                issued by the Flood Emergency Management Agency as having special
                flood hazards
                and such flood insurance has been made available, the Interim Servicer
                will
                cause to be maintained a flood insurance policy meeting the requirements
                of the
                current guidelines of the Federal Insurance Administration with a
                generally
                acceptable insurance carrier, in an amount representing coverage
                not less than
                the lesser of (i) the outstanding principal balance of the Mortgage
                Loan or (ii)
                the maximum amount of insurance which is available under the National
                Flood
                Insurance Act of 1968 or the Flood Disaster Protection Act of 1973,
                as amended.
                The Interim Servicer also shall maintain on any REO Property, fire
                and hazard
                insurance with extended coverage 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 Interest Rate and related Servicing Advances, liability
                insurance and,
                to the extent required and available under the National Flood Insurance
                Act of
                1968 or the Flood Disaster Protection Act of 1973, as amended, flood
                insurance
                in an amount as provided above. Pursuant to Subsection 11.04, any
                amounts
                collected by the Interim Servicer under any such policies other than
                amounts to
                be deposited in the Escrow Account and applied to the restoration
                or repair of
                the Mortgaged Property or REO Property, or released to the Mortgagor
                in
                accordance with the Interim Servicer’s normal servicing procedures, shall be
                deposited in the related Custodial Account, subject to withdrawal
                pursuant to
                Subsection 11.05. Any cost incurred by the Interim Servicer in maintaining
                any
                such insurance shall not, for the purpose of calculating distributions
                to the
                Purchaser, 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
                need be
                required by the Interim Servicer of the Mortgagor or maintained on
                property
                acquired in respect of the Mortgage Loan, other than pursuant to
                such applicable
                laws and regulations as shall at any time be in force and as shall
                require such
                additional insurance. All such policies shall be endorsed with standard
                mortgagee clauses with loss payable to the Interim Servicer, or upon
                request to
                the Purchaser, and shall provide for at least thirty days prior written
                notice
                of any cancellation, reduction in the amount of, or material change
                in, coverage
                to the Interim Servicer. The Interim Servicer shall not interfere
                with the
                Mortgagor’s freedom of choice in selecting either his insurance carrier or
                agent, provided, however, that the Interim Servicer shall not accept
                any such
                insurance policies from insurance companies unless such companies
                currently
                reflect a General Policy Rating of A:VI or better in Best’s Key Rating Guide and
                are licensed to do business in the state wherein the property subject
                to the
                policy is located.

               

              
                
                  
                  

                

                
                  8-9

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        Subsection
                          11.11

                      	
                        Maintenance
                          of Mortgage Impairment Insurance Policy.

                      

              

               

              In
                the
                event that the Interim Servicer shall obtain and maintain a mortgage
                impairment
                or blanket policy issued by an issuer that has a Best rating of A:VI
                insuring
                against hazard losses on all Mortgaged Properties securing the Mortgage
                Loans,
                then, to the extent such policy provides coverage in an amount equal
                to the
                amount required pursuant to Subsection 11.10 and otherwise complies
                with all
                other requirements of Subsection 11.10, the Interim Servicer shall
                conclusively
                be deemed to have satisfied its obligations as set forth in Subsection
                11.10, it
                being understood and agreed that such policy may contain a deductible
                clause, in
                which case the Interim Servicer shall, in the event that there shall
                not have
                been maintained on the related Mortgaged Property or REO Property
                a policy
                complying with Subsection 11.10, and there shall have been one or
                more losses
                which would have been covered by such policy, deposit in the related
                Custodial
                Account the amount not otherwise payable under the blanket policy
                because of
                such deductible clause. In connection with its activities as servicer
                of the
                Mortgage Loans, the Interim Servicer agrees to prepare and present,
                on behalf of
                the Purchaser, claims under any such blanket policy in a timely fashion
                in
                accordance with the terms of such policy. Upon request of the Purchaser,
                the
                Interim Servicer shall cause to be delivered to the Purchaser a certified
                true
                copy of such policy and a statement from the insurer thereunder that
                such policy
                shall in no event be terminated or materially modified without thirty
                days prior
                written notice to the Purchaser.

               

              
                	 	
                        Subsection
                          11.12

                      	
                        Fidelity
                          Bond, Errors and Omissions Insurance.

                      

              

               

              The
                Interim Servicer shall maintain, at its own expense, a blanket fidelity
                bond and
                an errors and omissions insurance policy, with broad coverage with
                responsible
                companies that would meet the requirements of FNMA or FHLMC on all
                officers,
                employees or other persons acting in any capacity with regard to
                the Mortgage
                Loans to handle funds, money, documents and papers relating to the
                Mortgage
                Loans. The fidelity bond and errors and omissions insurance shall
                be in the form
                of the Mortgage Banker’s Blanket Bond and shall protect and insure the Interim
                Servicer against losses, including forgery, theft, embezzlement,
                fraud, errors
                and omissions and negligent acts of such persons. Such fidelity bond
                shall also
                protect and insure the Interim Servicer against losses in connection
                with the
                failure to maintain any insurance policies required pursuant to this
                Agreement
                and the release or satisfaction of a Mortgage Loan without having
                obtained
                payment in full of the indebtedness secured thereby. No provision
                of this
                Subsection 11.12 requiring the fidelity bond and errors and omissions
                insurance
                shall diminish or relieve the Interim Servicer from its duties and
                obligations
                as set forth in this Agreement. The minimum coverage under any such
                bond and
                insurance policy shall be at least equal to the corresponding amounts
                required
                by FNMA in the FNMA Servicing Guide or by FHLMC in the FHLMC Seller’s and
                Servicers’ Guide. Upon request of the Purchaser, the Interim Servicer shall
                deliver to the Purchaser a certified true copy of the fidelity bond
                and
                insurance policy and a statement from the surety and the insurer
                that such
                fidelity bond or insurance policy shall in no event be terminated
                or materially
                modified without thirty days’ prior written notice to the
                Purchaser.

               

              
                
                  
                  

                

                
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                        Subsection
                          11.13

                      	
                        Title,
                          Management and Disposition of REO Property.

                      

              

               

              In
                the
                event that title to the Mortgaged Property is acquired in foreclosure
                or by deed
                in lieu of foreclosure, the deed or certificate of sale shall be
                taken in the
                name of the person designated by the Purchaser, or in the event such
                person is
                not authorized or permitted to hold title to real property in the
                state where
                the REO Property is located, or would be adversely affected under
                the “doing
                business” or tax laws of such state by so holding title, the deed or certificate
                of sale shall be taken in the name of such Person or Persons as shall
                be
                consistent with an opinion of counsel obtained by the Interim Servicer
                from an
                attorney duly licensed to practice law in the state where the REO
                Property is
                located. Any Person or Persons holding such title other than the
                Purchaser shall
                acknowledge in writing that such title is being held as nominee for
                the benefit
                of the Purchaser.

               

              The
                Interim Servicer shall either itself or through an agent selected
                by the Interim
                Servicer, manage, conserve, protect and operate each REO Property
                (and may
                temporarily rent the same) 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. If a REMIC election is or is to be made with respect to
                the arrangement
                under which the Mortgage Loans and any REO Property are held, the
                Interim
                Servicer shall manage, conserve, protect and operate each REO Property
                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 such 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” within the meaning of Section 860G(c)(2) of the Code. The Interim
                Servicer shall cause each REO Property to be inspected promptly upon
                the
                acquisition of title thereto and shall cause each REO Property to
                be inspected
                at least annually thereafter. The Interim Servicer shall make or
                cause to be
                made a written report of each such inspection. Such reports shall
                be retained in
                the Mortgage File and copies thereof shall be forwarded by the Interim
                Servicer
                to the Purchaser. The Interim Servicer shall use its best efforts
                to dispose of
                the REO Property as soon as possible and shall sell such REO Property
                in any
                event within one year after title has been taken to such REO Property,
                unless
                the Interim Servicer determines, and gives appropriate notice to
                the Purchaser,
                that a longer period is necessary for the orderly liquidation of
                such REO
                Property. If a period longer than one year is necessary to sell any
                REO
                property, (i) the Interim Servicer shall report monthly to the Purchaser
                as to
                the progress being made in selling such REO Property and (ii) if,
                with the
                written consent of the Purchaser, a purchase money mortgage is taken
                in
                connection with such sale, such purchase money mortgage shall name
                the Interim
                Servicer as mortgagee, and a separate servicing agreement between
                the Interim
                Servicer and the Purchaser shall be entered into with respect to
                such purchase
                money mortgage. Notwithstanding the foregoing, if a REMIC election
                is made with
                respect to the arrangement under which the Mortgage Loans and the
                REO Property
                are held, such REO Property shall be disposed of within three years
                or such
                other period as may be permitted under Section 860G(a)(8) of the
                Code.

               

              
                
                  
                  

                

                
                  8-11

                  
                    

                  

                

                
                  
                  

                

              

              With
                respect to each REO Property, the Interim Servicer shall segregate
                and hold all
                funds collected and received in connection with the operation of
                the REO
                Property separate and apart from its own funds or general assets
                and shall
                establish and maintain a separate REO Account for each REO Property
                in the form
                of a non interest bearing demand account, unless an Opinion of Counsel
                is
                obtained by the Interim Servicer to the effect that the classification
                as a
                grantor trust or REMIC for federal income tax purposes of the arrangement
                under
                which the Mortgage Loans and the REO Property is held will not be
                adversely
                affected by holding such funds in another manner. Each REO Account
                shall be
                established with the Interim Servicer or, with the prior consent
                of the
                Purchaser, with a commercial bank, a mutual savings bank or a savings
                association. The creation of any REO Account shall be evidenced by
                a letter
                agreement substantially in the form of the Custodial Account Letter
                Agreement
                attached as Exhibit 6 hereto. An original of such letter agreement
                shall be
                furnished to any Purchaser upon request.

               

              The
                Interim Servicer shall deposit or cause to be deposited, on a daily
                basis in
                each REO 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, including the cost
                of
                maintaining any hazard insurance pursuant to Subsection 11.10 hereof
                and the
                fees of any managing agent acting on behalf of the Interim Servicer.
                The Interim
                Servicer shall not be entitled to retain interest paid or other earnings,
                if
                any, on funds deposited in such REO Account. On or before each Determination
                Date, the Interim Servicer shall withdraw from each REO Account and
                deposit into
                the Custodial Account the net income from the REO Property on deposit
                in the REO
                Account.

               

              The
                Interim Servicer shall furnish to the Purchaser on each Distribution
                Date, an
                operating statement for each REO Property covering the operation
                of each REO
                Property for the previous month. Such operating statement shall be
                accompanied
                by such other information as the Purchaser shall reasonably
                request.

               

              Each
                REO
                Disposition shall be carried out by the Interim Servicer at such
                price and upon
                such terms and conditions as the Interim Servicer deems to be in
                the best
                interest of the Purchaser only with the prior written consent of
                the Purchaser.
                If as of the date title to any REO Property was acquired by the Interim
                Servicer
                there were outstanding unreimbursed Servicing Advances with respect
                to the REO
                Property, the Interim Servicer, upon an REO Disposition of such REO
                Property,
                shall be entitled to reimbursement for any related unreimbursed Servicing
                Advances from proceeds received in connection with such REO Disposition.
                The
                proceeds from the REO Disposition, net of any payment to the Interim
                Servicer as
                provided above, shall be deposited in the REO Account and shall be
                transferred
                to the Custodial Account on the Determination Date in the month following
                receipt thereof for distribution on the succeeding Distribution Date
                in
                accordance with Subsection 11.14.

               

              
                
                  
                  

                

                
                  8-12

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        Subsection
                          11.14

                      	
                        Distributions.

                      

              

               

              On
                each
                Distribution Date, the Interim Servicer shall distribute to the Purchaser
                all
                amounts credited to the related Custodial Account as of the close
                of business on
                the preceding Determination Date, net of charges against or withdrawals
                from the
                related Custodial Account pursuant to Subsection 11.05.

               

              All
                distributions made to the Purchaser on each Distribution Date will
                be made to
                the Purchaser of record on the preceding Record Date, and shall be
                based on the
                Mortgage Loans owned and held by the Purchaser, and shall be made
                by wire
                transfer of immediately available funds to the account of the Purchaser
                at a
                bank or other entity having appropriate facilities therefor, if the
                Purchaser
                shall have so notified the Interim Servicer or by check mailed to
                the address of
                the Purchaser.

               

              With
                respect to any remittance received by the Purchaser on or after the
                first
                Business Day following the Business Day on which such payment was
                due, the
                Interim Servicer shall pay to the Purchaser interest on any such
                late payment at
                an annual rate equal to the rate of interest as is publicly announced
                from time
                to time at its principal office by JPMorgan Chase Bank, New York,
                New York, as
                its prime lending rate, adjusted as of the date of each change, plus
                three
                percentage points, but in no event greater than the maximum amount
                permitted by
                applicable law. Such interest shall be paid by the Interim Servicer
                to the
                Purchaser on the date such late payment is made and shall cover the
                period
                commencing with the day following such first Business Day and ending
                with the
                Business Day on which such payment is made, both inclusive. Such
                interest shall
                be remitted along with such late payment. The payment by the Interim
                Servicer of
                any such interest shall not be deemed an extension of time for payment
                or a
                waiver by the Purchaser of any Event of Default by the Interim
                Servicer.

               

              
                	 	
                        Subsection
                          11.15

                      	
                        Remittance
                          Reports.

                      

              

               

              No
                later
                than the fifth Business Day of each month, the Interim Servicer shall
                furnish to
                the Purchaser or its designee an electronic and a hard copy of the
                monthly data
                in the form of report attached hereto as Exhibit 11. No later than
                three
                Business Days following each Determination Date, the Interim Servicer
                shall
                deliver to the Purchaser or its designee by telecopy (or by such
                other means as
                the Interim Servicer and the Purchaser may agree from time to time)
                an
                electronic and a hard copy of the determination data with respect
                to the related
                Distribution Date, together with such other information with respect
                to the
                Mortgage Loans as the Purchaser may reasonably require to allocate
                distributions
                made pursuant to this Agreement and provide appropriate statements
                with respect
                to such distributions. On the same date, the Interim Servicer shall
                forward to
                the Purchaser by overnight mail a computer readable disk containing
                the
                information set forth in the remittance report with respect to the
                related
                Distribution Date.

               

              
                
                  
                  

                

                
                  8-13

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        Subsection
                          11.16

                      	
                        Statements
                          to the Purchaser.

                      

              

               

              Not
                later
                than fifteen days after each Distribution Date, the Interim Servicer
                shall
                forward to the Purchaser or its designee a statement prepared by
                the Interim
                Servicer setting forth the status of the Custodial Account as of
                the close of
                business on such Distribution Date and showing, for the period covered
                by such
                statement, the aggregate amount of deposits into and withdrawals
                from the
                Custodial Account of each category of deposit specified in Subsection
                11.04 and
                each category of withdrawal specified in Subsection 11.05.

               

              In
                addition, not more than sixty days after the end of each calendar
                year, the
                Interim Servicer shall furnish to each Person who was the Purchaser
                at any time
                during such calendar year, (i) as to the aggregate of remittances
                for the
                applicable portion of such year, an annual statement in accordance
                with the
                requirements of applicable federal income tax law, and (ii) listing
                of the
                principal balances of the Mortgage Loans outstanding at the end of
                such calendar
                year.

               

              The
                Interim Servicer shall prepare and file any and all tax returns,
                information
                statements or other filings required to be delivered to any governmental
                taxing
                authority or to any Purchaser pursuant to any applicable law with
                respect to the
                Mortgage Loans and the transactions contemplated hereby. In addition,
                the
                Interim Servicer shall provide the Purchaser with such information
                concerning
                the Mortgage Loans as is necessary for the Purchaser to prepare its
                federal
                income tax return as any Purchaser may reasonably request from time
                to
                time.

               

              
                	 	
                        Subsection
                          11.17

                      	
                        Real
                          Estate Owned Reports.

                      

              

               

              Together
                with the statement furnished pursuant to Subsection 11.13, with respect
                to any
                REO Property, the Interim Servicer shall furnish to the Purchaser
                a statement
                covering the Interim Servicer’s efforts in connection with the sale of such REO
                Property and any rental of such REO Property incidental to the sale
                thereof for
                the previous month, together with the operating statement. Such statement
                shall
                be accompanied by such other information as the Purchaser shall reasonably
                request.

               

              
                	 	
                        Subsection
                          11.18

                      	
                        Liquidation
                          Reports.

                      

              

               

              Upon
                the
                foreclosure sale of any Mortgaged Property or the acquisition thereof
                pursuant
                to a deed in lieu of foreclosure, the Interim Servicer shall submit
                to the
                Purchaser a liquidation report with respect to such Mortgaged
                Property.

               

              
                	 	
                        Subsection
                          11.19

                      	
                        Assumption
                          Agreements.

                      

              

               

              The
                Interim Servicer shall, to the extent it has knowledge of any conveyance
                or
                prospective conveyance by any Mortgagor of the Mortgaged Property
                (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 any
“due-on-sale” clause applicable thereto; provided, however, that the Interim
                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
                any
                recovery under the related Primary Insurance Policy or LPMI Policy,
                if any. If
                the Interim Servicer reasonably believes it is unable under applicable
                law to
                enforce such “due-on-sale” clause, the Interim Servicer shall enter into an
                assumption agreement with the person to whom the Mortgaged 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. Where an assumption is
                allowed
                pursuant to this Subsection 11.19, the Interim Servicer, with the
                prior written
                consent of the insurer under the Primary Insurance Policy or LPMI
                Policy, if
                any, is authorized to enter into a substitution of liability agreement
                with the
                person to whom the Mortgaged Property has been conveyed or is proposed
                to be
                conveyed pursuant to which the original Mortgagor is released from
                liability and
                such Person is substituted as Mortgagor and becomes liable under
                the related
                Mortgage Note. Any such substitution of liability agreement shall
                be in lieu of
                an assumption agreement.

               

              
                
                  
                  

                

                
                  8-14

                  
                    

                  

                

                
                  
                  

                

              

              In
                connection with any such assumption or substitution of liability,
                the Interim
                Servicer shall follow the underwriting practices and procedures of
                prudent
                mortgage lenders in the state in which the related Mortgaged Property
                is
                located. With respect to an assumption or substitution of liability,
                the
                Mortgage Interest Rate, the amount of the Monthly Payment, and the
                final
                maturity date of such Mortgage Note may not be changed. The Interim
                Servicer
                shall notify the Purchaser that any such substitution of liability
                or assumption
                agreement has been completed by forwarding to the Purchaser the original
                of any
                such substitution of liability 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. Any fee collected by the
                Interim
                Servicer for entering into an assumption or substitution of liability
                agreement
                in excess of 1% of the outstanding principal balance of the Mortgage
                Loan shall
                be deposited in the Custodial Account pursuant to Subsection 11.04.

               

              Notwithstanding
                the foregoing paragraphs of this Subsection or any other provision
                of this
                Agreement, the Interim Servicer shall not be deemed to be in default,
                breach or
                any other violation of its obligations hereunder by reason of any
                assumption of
                a Mortgage Loan by operation of law or any assumption which the Interim
                Servicer
                may be restricted by law from preventing, for any reason whatsoever.
                For
                purposes of this Subsection 11.19, 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.

               

              
                	 	
                        Subsection
                          11.20

                      	
                        Satisfaction
                          of Mortgages and Release of Mortgage Files.

                      

              

               

              Upon
                the
                payment in full of any Mortgage Loan, or the receipt by the Interim
                Servicer of
                a notification that payment in full will be escrowed in a manner
                customary for
                such purposes, the Interim Servicer will immediately notify the Purchaser
                by a
                certification of a servicing officer of the Interim Servicer (a “Servicing
                Officer”), 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 Subsection
                11.04
                have been or will be so deposited, and shall request execution of
                any document
                necessary to satisfy the Mortgage Loan and delivery to it of the
                portion of the
                Mortgage File held by the Purchaser or the Purchaser’s designee. Upon receipt of
                such certification and request, the Purchaser, shall promptly release
                the
                related mortgage documents to the Interim Servicer and the Interim
                Servicer
                shall prepare and process any satisfaction or release. No expense
                incurred in
                connection with any instrument of satisfaction or deed of reconveyance
                shall be
                chargeable to the Custodial Account or the Purchaser.

               

              
                
                  
                  

                

                
                  8-15

                  
                    

                  

                

                
                  
                  

                

              

              In
                the
                event the Interim Servicer satisfies or releases a Mortgage without
                having
                obtained payment in full of the indebtedness secured by the Mortgage
                or should
                it otherwise prejudice any right the Purchaser may have under the
                mortgage
                instruments, the Interim Servicer, upon written demand, shall remit
                to the
                Purchaser the then outstanding principal balance of the related Mortgage
                Loan by
                deposit thereof in the Custodial Account. The Interim Servicer shall
                maintain
                the fidelity bond insuring the Interim Servicer against any loss
                they may
                sustain with respect to any Mortgage Loan not satisfied in accordance
                with the
                procedures set forth herein.

               

              From
                time
                to time and as appropriate for the servicing or foreclosure of the
                Mortgage
                Loan, including for this purpose collection under any Primary Insurance
                Policy
                or LPMI Policy, the Purchaser shall, upon request of the Interim
                Servicer and
                delivery to the Purchaser of a servicing receipt signed by a Servicing
                Officer,
                release the requested portion of the Mortgage File held by the Purchaser
                to the
                Interim Servicer. Such servicing receipt shall obligate the Interim
                Servicer to
                return the related Mortgage documents to the Purchaser when the need
                therefor by
                the Interim 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 Custodial 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 Interim Servicer has delivered to the Purchaser
                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,
                the servicing
                receipt shall be released by the Purchaser to the Interim Servicer.

               

              
                	 	
                        Subsection
                          11.21

                      	
                        Servicing
                          Compensation.

                      

              

               

              As
                compensation for its services hereunder, the Interim Servicer shall
                be entitled
                to withdraw from the Custodial Account or to retain from interest
                payments on
                the Mortgage Loans the amounts provided for as the Interim Servicer’s Servicing
                Fee. Additional servicing compensation in the form of assumption
                fees, as
                provided in Subsection 11.19, and late payment charges or otherwise
                shall be
                retained by the Interim Servicer to the extent not required to be
                deposited in
                the Custodial Account. The Interim Servicer shall be required to
                pay all
                expenses incurred by it in connection with its servicing activities
                hereunder
                and shall not be entitled to reimbursement therefor except as specifically
                provided for.

               

              
                
                  
                  

                

                
                  8-16

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        Subsection
                          11.22

                      	
                        Notification
                          of Adjustments.

                      

              

               

              On
                each
                Adjustment Date, the Interim Servicer shall make interest rate adjustments
                for
                each Adjustable Rate Mortgage Loan in compliance with the requirements
                of the
                related Mortgage and Mortgage Note. The Interim Servicer shall execute
                and
                deliver the notices required by each Mortgage and Mortgage Note regarding
                interest rate adjustments. The Interim Servicer also shall provide
                timely
                notification to the Purchaser of all applicable data and information
                regarding
                such interest rate adjustments and the Interim Servicer’s methods of
                implementing such interest rate adjustments. Upon the discovery by
                the Interim
                Servicer or the Purchaser that the Interim Servicer has failed to
                adjust a
                Mortgage Interest Rate or a Monthly Payment pursuant to the terms
                of the related
                Mortgage Note and Mortgage, the Interim Servicer shall immediately
                deposit in
                the Custodial Account from its own funds the amount of any interest
                loss caused
                thereby without reimbursement therefor.

               

              
                	 	
                        Subsection
                          11.23

                      	
                        Statement
                          as to Compliance.

                      

              

               

              
                	
                        (a)

                      	
                        The
                          Seller will deliver to the Purchaser not later than February
                          28th
                          of
                          each year, an Officers’ Certificate (each, an “Annual Statement of
                          Compliance”) stating, as to each signatory thereof, that (i) a review
                          of
                          the activities of the Seller during the preceding year
                          and of performance
                          under this Agreement has been made under such officers’ supervision and
                          (ii) to the best of such officers’ knowledge, based on such review, the
                          Seller has fulfilled all of its obligations under this
                          Agreement
                          throughout such year, or, if there has been a default in
                          the fulfillment
                          of any such obligation, specifying each such default known
                          to such officer
                          and the nature and status thereof. Copies of such statement
                          shall be
                          provided by the Purchaser to any Person identified as a
                          prospective
                          purchaser of the Mortgage Loans.

                      

              

               

              
                	
                        (b)

                      	
                        For
                          so long as the Mortgage Loans are being master serviced
                          by a master
                          servicer in a securitization transaction (the “Master Servicer”), by
                          February 28th of each year (or if not a Business Day, the
                          immediately
                          preceding Business Day), or at any other time upon thirty
                          (30) days
                          written request, an officer of the Seller shall execute
                          and deliver an
                          Officer’s Certificate to the Master Servicer for the benefit of
                          such
                          Master Servicer and its officers, directors and affiliates,
                          certifying as
                          to the following matters:

                      

              

               

              
                	 	
                        (i)

                      	
                        Based
                          on my knowledge, the information in the Annual Statement
                          of Compliance,
                          the Annual Independent Public Accountant’s Servicing Report delivered
                          pursuant to Section 11.24 of the Servicing Addendum (the
“Annual
                          Independent Public Accountant’s Servicing Report”) and all servicing
                          reports, officer’s certificates and other information relating to the
                          servicing of the Mortgage Loans submitted to the Master
                          Servicer taken as
                          a whole, does not contain any untrue statement of a material
                          fact or omit
                          to state a material fact necessary to make the statements
                          made, in light
                          of the circumstances under which such statements were made,
                          not misleading
                          as of the date of this
                          certification;

                      

              

              

              
                
                  
                  

                

                
                  8-17

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        (ii)

                      	
                        The
                          servicing information required to be provided to the Master
                          Servicer by
                          the Seller under this Agreement has been provided to the
                          Master
                          Servicer;

                      

              

              

              
                	 	
                        (iii)

                      	
                        I
                          am responsible for reviewing the activities performed by
                          the Seller under
                          the Agreement and based upon the review required by this
                          Agreement, and
                          except as disclosed in the Annual Statement of Compliance
                          or the Annual
                          Independent Public Accountant’s Servicing Report submitted to the Master
                          Servicer, the Seller has, as of the date of this certification
                          fulfilled
                          its obligations under this Agreement;
                          and

                      

              

              

              
                	 	
                        (iv)

                      	
                        I
                          have disclosed to the Master Servicer all significant deficiencies
                          relating to the Seller’s compliance with the minimum servicing standards
                          in accordance with a review conducted in compliance with
                          the Uniform
                          Single Attestation Program for Mortgage Bankers or similar
                          standard as set
                          forth in the Agreement.

                      

              

              

               

              The
                Seller shall indemnify and hold harmless the Master Servicer and
                its 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 Seller or any of its officers, directors, agents or affiliates
                of its
                obligations under this Section 11.23 or the negligence, bad faith
                or willful
                misconduct of the Seller in connection therewith. If the indemnification
                provided for herein is unavailable or insufficient to hold harmless
                the Master
                Servicer, then the Seller agrees that it shall contribute to the
                amount paid or
                payable by the Master Servicer as a result of the losses, claims,
                damages or
                liabilities of the Master Servicer in such proportion as is appropriate
                to
                reflect the relative fault of the Master Servicer on the one hand
                and the Seller
                on the other in connection with a breach of the Seller’s obligations under this
                Section 11.23 or the Seller’s negligence, bad faith or willful misconduct in
                connection therewith.

               

              
                	 	
                        Subsection
                          11.24

                      	
                        Independent
                          Public Accountants’ Servicing Report.

                      

              

               

              Not
                later
                than February 28th of each year, the Seller at its expense shall
                cause a firm of
                independent public accountants (which may also render other services
                to the
                Seller) which is a member of the American Institute of Certified
                Public
                Accountants to furnish a statement to the Purchaser or its designee
                to the
                effect that such firm has examined certain documents and records
                relating to the
                servicing of the Mortgage Loans under this Agreement or of mortgage
                loans under
                pooling and servicing agreements (including the Mortgage Loans and
                this
                Agreement) substantially similar one to another (such statement to
                have attached
                thereto a schedule setting forth the pooling and servicing agreements
                covered
                thereby) and that, on the basis of such examination conducted substantially
                in
                compliance with the Uniform Single Attestation Program for Mortgage
                Bankers,
                such firm confirms that such servicing has been conducted in compliance
                with
                such pooling and servicing agreements except for such significant
                exceptions or
                errors in records that, in the opinion of such firm, the Uniform
                Single
                Attestation Program for Mortgage Bankers requires it to report. Copies
                of such
                statement shall be provided by the Purchaser to any Person identified
                as a
                prospective purchaser of the Mortgage Loans.

               

              
                
                  
                  

                

                
                  8-18

                  
                    

                  

                

                
                  
                  

                

              

              
                	 	
                        Subsection
                          11.25 

                      	
                        Access
                          to Certain Documentation.

                      

              

               

              The
                Interim 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 the Purchaser access to the documentation
                regarding the
                Mortgage Loans serviced by the Interim Servicer 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
                Interim Servicer. In addition, access to the documentation will be
                provided to
                the Purchaser and any Person identified to the Interim Servicer by
                the Purchaser
                without charge, upon reasonable request during normal business hours
                at the
                offices of the Interim Servicer.

               

              
                	 	
                        Subsection
                          11.26

                      	
                        Reports
                          and Returns to be Filed by the Interim Servicer.

                      

              

               

              The
                Interim Servicer shall file information reports with respect to the
                receipt of
                mortgage interest received in a trade or business, reports of foreclosures
                and
                abandonments of any Mortgaged Property and information returns relating
                to
                cancellation of indebtedness income with respect to any Mortgaged
                Property as
                required by Sections 6050H, 6050J and 6050P of the Code. 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.

               

              
                	 	
                        Subsection
                          11.27

                      	
                        Servicing
                          Transfer.

                      

              

               

              At
                the
                end of the Interim Servicing Period, the Initial Purchaser, or its
                designee,
                shall assume all servicing responsibilities related to the Mortgage
                Loans and
                the Interim Servicer shall cease all servicing responsibilities related
                to the
                Mortgage Loans. During the Interim Servicing Period, the Interim
                Servicer shall,
                at its cost and expense, take such steps as may be necessary or appropriate
                to
                effectuate and evidence the transfer of the servicing of the related
                Mortgage
                Loans to the Initial Purchaser, or its designee. The Interim Servicer
                and the
                Seller agree to execute and deliver such instruments and take such
                actions as
                the Initial Purchaser, or its designee may, from time to time, reasonably
                request to carry out the servicing transfer.

               

              
                	 	
                        Subsection
                          11.28

                      	
                        Superior
                          Liens.

                      

              

               

              With
                respect to each Second Lien Mortgage Loan, the Interim Servicer shall,
                for the
                protection of the Purchaser’s interest, file (or cause to be filed) of record a
                request for notice of any action by a superior lienholder where permitted
                by
                local law and whenever applicable state law does not require that
                a junior
                lienholder be named as a party defendant in foreclosure proceedings
                in order to
                foreclose such junior lienholder’s equity of redemption. The Interim Servicer
                shall also notify any superior lienholder in writing of the existence
                of the
                Mortgage Loan and request notification of any action (as described
                below) to be
                taken against the Mortgagor or the Mortgaged Property by the superior
                lienholder.

               

              
                
                  
                  

                

                
                  8-19

                  
                    

                  

                

                
                  
                  

                

              

              If
                the
                Seller or the Interim Servicer is notified that any superior lienholder
                has
                accelerated or intends to accelerate the obligations secured by the
                superior
                lien, or has declared or intends to declare a default under the superior
                mortgage or the promissory note secured thereby, or has filed or
                intends to file
                an election to have the Mortgaged Property sold or foreclosed, the
                Interim
                Servicer shall take whatever actions are necessary to protect the
                interests of
                the Purchaser, and/or to preserve the security of the related Mortgage
                Loan,
                subject to any requirements applicable to real estate mortgage investment
                conduits pursuant to the Code. The Interim Servicer shall make a
                Servicing
                Advance of the funds necessary to cure the default or reinstate the
                superior
                lien if the Interim Servicer determines that such Servicing Advance
                is in the
                best interests of the Purchaser. The Interim Servicer shall not make
                such a
                Servicing Advance except to the extent that it determines in its
                reasonable good
                faith judgment that such advance will be recoverable from Liquidation
                Proceeds
                on the related Mortgage Loan. The Interim Servicer shall thereafter
                take such
                action as is necessary to recover the amount so advanced.

               

              If
                the
                Mortgage relating to a Mortgage Loan had a lien senior to the Mortgage
                Loan on
                the related Mortgaged Property as of the related Cut-off Date, then
                the Interim
                Servicer, in its capacity as interim servicer, may consent to the
                refinancing of
                the prior senior lien, provided that the following requirements are
                met:

               

              1. the
                resulting Combined Loan-to-Value Ratio of such Mortgage Loan is no
                higher than
                the Combined Loan-to-Value Ratio prior to such refinancing; and

               

              2. the
                interest rate, or, in the case of an adjustable rate existing senior
                lien, the
                maximum interest rate, for the loan evidencing the refinanced senior
                lien is no
                more than 2.0% higher than the interest rate or the maximum interest
                rate, as
                the case may be, on the loan evidencing the existing senior lien
                immediately
                prior to the date of such refinancing; and

               

              3. the
                loan
                evidencing the refinanced senior lien is not subject to negative
                amortization.

               

              
                	 	
                        Subsection
                          11.29 

                      	
                        Compliance
                          with REMIC Provisions.

                      

              

               

              If
                a
                REMIC election has been made with respect to the arrangement under
                which the
                Mortgage Loans and REO Property are held, the Interim Servicer shall
                not take
                any action, cause the REMIC to take any action or fail to take (or
                fail to cause
                to be taken) any action that, under the REMIC Provisions, if taken
                or not taken,
                as the case may be, could (i) endanger the status of the REMIC as
                a REMIC or
                (ii) result in the imposition of a tax upon the REMIC (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) unless the Interim Servicer has received an Opinion of
                Counsel (at the
                expense of the party seeking to take such action) to the effect that
                the
                contemplated action will not endanger such REMIC status or result
                in the
                imposition of any such tax.

               

              
                
                  
                  

                

                
                  8-20

                  
                    

                  

                

                
                  
                  

                

              

              EXHIBIT
                9

               

              FORM
                OF
                COMMITMENT LETTER

               

              
                
                  
                  

                

                
                  9-1

                  
                    

                  

                

                
                  
                  

                

              

              EXHIBIT
                10

               

              MORTGAGE
                LOAN DOCUMENTS

               

              With
                respect to each Mortgage Loan set forth on a related Mortgage Loan
                Schedule, the
                Seller shall deliver, or cause to be delivered, and release to the
                Custodian the
                following documents:

               

              1. the
                original Mortgage Note bearing all intervening endorsements necessary
                to show a
                complete chain of endorsements from the original payee to the Seller,
                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. If the Mortgage Loan was acquired by
                the last
                endorsee in a merger, the endorsement must be by “[name of last endorsee],
                successor by merger to [name of predecessor]”. If the Mortgage Loan was acquired
                or originated by the last endorsee while doing business under another
                name, the
                endorsement must be by “[name of last endorsee], formerly known as [previous
                name]”;

               

              If
                the
                Seller uses facsimile signatures to endorse Mortgage Notes, the Seller
                must
                provide in an Officer’s Certificate that the endorsement is valid and
                enforceable in the jurisdiction(s) in which the Mortgaged Properties
                are located
                and must retain in its corporate records the following specific documentation
                authorizing the use of facsimile signatures: (i) a resolution from
                its board of
                directors authorizing specific officers to use facsimile signatures;
                stating
                that facsimile signatures will be a valid and binding act on the
                Seller’s part;
                and authorizing the Seller’s corporate secretary to certify the validity of the
                resolution, the names of the officers authorized to execute documents
                by using
                facsimile signatures, and the authenticity of specimen forms of facsimile
                signatures; (ii) the corporate secretary’s certification of the authenticity and
                validity of the board of directors’ resolution; and (iii) a notarized
“certification of facsimile signature,” which includes both the facsimile and
                the original signatures of the signing officer(s) and each officer’s
                certification that the facsimile is a true and correct copy of his
                or her
                original signature.

               

              2. in
                the
                case of a Mortgage Loan that is not a MERS Mortgage Loan, 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.
                If the Mortgage Loan was acquired by the last assignee in a merger,
                the
                Assignment of Mortgage must be made by “[name of last assignee], successor by
                merger to [name of predecessor]”. If the Mortgage Loan was acquired or
                originated by the last assignee while doing business under another
                name, the
                Assignment of Mortgage must be by “[name of last assignee], formerly known as
                [previous name]”;

               

              3. the
                original of any guarantee executed in connection with the Mortgage
                Note, if
                any;

               

              
                
                  
                  

                

                
                  10-1

                  
                    

                  

                

                
                  
                  

                

              

              4. for
                each
                Mortgage Loan that is not a MERS Mortgage Loan, the original Mortgage
                with
                evidence of recording thereon or, if the original Mortgage with evidence
                of
                recording thereon has not been returned by the public recording office
                where
                such Mortgage has been delivered for recordation or such Mortgage
                has been lost
                or such public recording office retains the original recorded Mortgage,
                a
                photocopy of such Mortgage, together with (i) in the case of a delay
                caused by
                the public recording office, an Officer’s Certificate of the title insurer
                insuring the Mortgage stating that such Mortgage has been delivered
                to the
                appropriate public recording office for recordation and that the
                original
                recorded Mortgage or a copy of such Mortgage certified by such public
                recording
                office to be a true and complete copy of the original recorded Mortgage
                will be
                promptly delivered to the Custodian upon receipt thereof by the party
                delivering
                the Officer’s Certificate or by the Seller; or (ii) in the case of a Mortgage
                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 with the recording information thereon certified
                by such
                public recording office to be a true and complete copy of the original
                recorded
                Mortgage;

               

              5. for
                each
                Mortgage Loan that is a MERS Mortgage Loan, the original Mortgage,
                noting the
                presence of the MIN of the Mortgage Loan and either language indicating
                that the
                Mortgage Loan is a MOM Loan or if the Mortgage Loan was not a MOM
                Loan at
                origination, the original Mortgage and the assignment thereof to
                MERS, with
                evidence of recording indicated thereon, or a copy of the Mortgage
                certified by
                the public recording office in which such Mortgage has been
                recorded;

               

              6. the
                originals of all assumption, modification, consolidation or extension
                agreements, with evidence of recording thereon, if any;

               

              7. 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 (i) in the case of a delay caused by the
                public
                recording office, an Officer’s Certificate of 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 Seller; or
                (ii) 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;

               

              
                
                  
                  

                

                
                  10-2

                  
                    

                  

                

                
                  
                  

                

              

              8. 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 original
                power of attorney or other instrument that authorized and empowered
                such Person
                to sign;

               

              9. the
                original lender’s title insurance policy in the form of an ALTA mortgage title
                insurance policy, containing each of the endorsements required by
                FNMA and
                insuring the Purchaser and its successors and assigns as to the first
                or second
                priority lien of the Mortgage in the original principal amount of
                the Mortgage
                Loan or, if the original lender’s title insurance policy has not been issued,
                the irrevocable commitment to issue the same; and

               

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

               

              
                
                  
                  

                

                
                  10-3

                  
                    

                  

                

                
                  
                  

                

              

              EXHIBIT
                11

              FORM
                OF
                MONTHLY SERVICER’S REPORT

              

              
                	
                        Field

                      	
                        Description

                      
	
                        SERVICER_LOANID

                      	
                        Servicer
                          loan number.

                      
	
                        SELLER_LOANID

                      	
                        Seller
                          loan number.

                      
	
                        LNAME

                      	
                        Last
                          name of borrower.

                      
	
                        FNAME

                      	
                        First
                          name of borrower.

                      
	
                        DATE_TRADE_FUND

                      	
                        Date
                          of loan's funding with DB, i.e. date that Deutsche Bank
                          bought the loan
                          from the seller.

                      
	
                        INTEREST_RATE

                      	
                        Gross
                          interest rate on loan as of end of month being
                          reported.

                      
	
                        NET_INTEREST_RATE

                      	
                        Net
                          interest rate on loan as of end of month being
                          reported.

                      
	
                        PRIN_INT_PYMT

                      	
                        Principal
                          & Interest on loan as of end of month being
                          reported.

                      
	
                        LIEN

                      	
                        Lien
                          of the loan.

                      
	
                        IO_FLAG

                      	
                        Optional:
                          Y/N flag for Interest-Only loans (where applicable).

                      
	
                        BEG_UPB_ACT

                      	
                        Beginning
                          actual balance.

                      
	
                        BEG_UPB_SCH

                      	
                        Beginning
                          scheduled balance.

                      
	
                        END_UPB_ACT

                      	
                        Ending
                          actual balance.

                      
	
                        END_UPB_SCH

                      	
                        Ending
                          scheduled balance.

                      
	
                        PAID_THRU_DATE

                      	
                        Paid
                          through date of the loan.

                      
	
                        NEXT_DUE_DATE

                      	
                        Next
                          due date of the loan at end of month being reported.

                      
	
                        DAYS_DELQ

                      	
                        Days
                          delinquent at end of month being reported.

                      
	
                        PIF_DATE

                      	
                        Payoff
                          date.

                      
	
                        PRIN_AMT_ACT

                      	
                        Actual
                          collected principal remitted to DB.

                      
	
                        PRIN_AMT_SCH

                      	
                        Scheduled
                          principal remitted to DB.

                      
	
                        CURTAILMENT

                      	
                        Curtailment
                          remitted to DB.

                      
	
                        INT_AMT_ACT

                      	
                        Actual
                          collected interest remitted to DB.

                      
	
                        INT_AMT_SCH

                      	
                        Scheduled
                          interest remitted to DB.

                      
	
                        PREPAY_PENALTY_AMT

                      	
                        Prepayment
                          Penalty remitted to DB.

                      
	
                        SERVICE_FEE

                      	
                        Service
                          fee charged per loan for the month being reported.

                      
	
                        STATUS

                      	
                        Status
                          of loan as of end of month being reported; "BKCY" = loan
                          is in bankruptcy
                          (chapter given by "BKCY_CHAPTER" field; "FBRE" = loan is
                          on a forbearance
                          plan; "FCLS" = loan is in foreclousre; "REO" = loan is
                          in
                          REO.

                      
	
                        BKCY_CHAPTER

                      	
                        Bankruptcy
                          chapter filed.

                      
	
                        BKCY_START_DATE

                      	
                        Bankruptcy
                          start date.

                      
	
                        BKCY_END_DATE

                      	
                        Bankruptcy
                          end date.

                      
	
                        FCLS_START_DATE

                      	
                        Foreclosure
                          start date.

                      
	
                        FCLS_END_DATE

                      	
                        Foreclosure
                          end date.

                      
	
                        FB_START_DATE

                      	
                        Forbearance
                          start date.

                      
	
                        FB_END_DATE

                      	
                        Forbearance
                          end date.

                      
	
                        REO_TRANSFER_DATE

                      	
                        REO
                          transfer date.

                      
	
                        MISC_ADJ1

                      	
                        Loan
                          level breakdown of any miscellaneous adjustment.

                      
	
                        COMMENT1

                      	
                        Comment
                          describing nature of misc_adj1.

                      
	
                        MISC_ADJ2

                      	
                        Loan
                          level breakdown of any miscellaneous adjustment.

                      
	
                        COMMENT2

                      	
                        Comment
                          describing nature of misc_adj2.

                      
	
                        MISC_ADJ3

                      	
                        Loan
                          level breakdown of any miscellaneous adjustment.

                      
	
                        COMMENT3

                      	
                        Comment
                          describing nature of misc_adj3.

                      
	
                        TOT_REMIT

                      	
                        Loan
                          level total amount remitted to DB.

                      

              

               

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

              EXHIBIT
                12A

              

              SELLER’S
                UNDERWRITING GUIDELINES

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

              

                AMENDMENT
                  NUMBER ONE

                to
                  the
                  Master Mortgage Loan Purchase and Interim Servicing Agreement

                dated
                  as
                  of March 1, 2005

                by
                  and
                  between 

                NC
                  CAPITAL CORPORATION

                and

                NEW
                  CENTURY MORTGAGE CORPORATION

                and

                DB
                  STRUCTURED PRODUCTS, INC.

                

                This
                  AMENDMENT NUMBER ONE is made this 1st day
                  of
                  May 2005, by and between NC
                  CAPITAL CORPORATION, having an office at 18400 Von Karman, Suite
                  1000, Irvine,
                  California 92612 (the “Seller”), and NEW CENTURY MORTGAGE CORPORATION, having an
                  office at 18400 Von Karman, Suite 1000, Irvine, California 92612
                  (the “Interim
                  Servicer”)
                  and DB
                  STRUCTURED PRODUCTS, INC. having an address at 60 Wall Street,
                  New York, New
                  York 10005 (the “Purchaser”), to the Master Mortgage Loan Purchase and Interim
                  Servicing Agreement, dated as of March 1, 2005, by and between
                  the Purchaser and
                  the Seller (the “Agreement”).

                

                RECITALS

                

                WHEREAS,
                  the Purchaser, the Interim
                  Servicer
                  and the
                  Seller desire to amend the Agreement, subject to the terms hereof,
                  to modify the
                  Agreement as specified herein; and 

                 

                WHEREAS,
                  the Purchaser, the Interim
                  Servicer
                  and the
                  Seller each have agreed to execute and deliver this Amendment Number
                  One on the
                  terms and conditions set forth herein.

                

                NOW
                  THEREFORE, for good and valuable consideration, the receipt and
                  sufficiency of
                  which are hereby acknowledged, and of the mutual covenants herein
                  contained, the
                  parties hereto hereby agree as follows:

                

                SECTION
                  1. Amendment.
                  

                 

                

                (a) Effective
                  as of May 1, 2005, Section 12 of the Agreement is hereby modified
                  by adding the
                  following subsections at the end thereof:

                

                “(7) to
                  negotiate and execute one or more subservicing agreements, designated
                  by the
                  Purchaser in its sole discretion after consultation with the Interim
                  Servicer,
                  which contain contractual provisions including, but not limited
                  to, a 24-day
                  certificate payment delay (54-day total payment delay), servicer
                  advances of
                  delinquent scheduled payments of principal and interest through
                  liquidation
                  (unless deemed non-recoverable) and prepayment interest shortfalls
                  (to the
                  extent of the monthly servicing fee payable thereto), servicing
                  and mortgage
                  loan representations and warranties which in form and substance
                  conform to the
                  representations and warranties in this Agreement and to secondary
                  market
                  standards for securities backed by mortgage loans similar to the
                  Mortgage Loans
                  and such provisions with regard to servicing responsibilities,
                  investor
                  reporting, segregation and deposit of principal and interest payments,
                  custody
                  of the Mortgage Loans, and other covenants as are required by the
                  Purchaser and
                  one or more nationally recognized rating agencies for mortgage
                  pass-through
                  transactions between the Interim Servicer and any master servicer
                  which is
                  generally considered to be a prudent master servicer in the secondary
                  mortgage
                  market, designated by the Purchaser in its sole discretion after
                  consultation
                  with the Interim Servicer and/or one or more custodial and servicing
                  agreements
                  among the Purchaser, the Interim Servicer and a third party custodian/trustee
                  which is generally considered to be a prudent custodian/trustee
                  in the secondary
                  mortgage market designated by the Purchaser in its sole discretion
                  after
                  consultation with the Interim Servicer, in either case for the
                  purpose of
                  pooling the Mortgage Loans with other Mortgage Loans for resale
                  or
                  securitization.”

                 

                 

                
                  
                    
                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

                SECTION
                  2.  Defined
                  Terms.
                  Any
                  terms capitalized but not otherwise defined herein shall have the
                  respective
                  meanings set forth in the Agreement.

                

                SECTION
                  3. Limited
                  Effect.
                  Except
                  as amended hereby, the Agreement shall continue in full force and
                  effect in
                  accordance with its terms. Reference to this Amendment need not
                  be made in the
                  Agreement or any other instrument or document executed in connection
                  therewith,
                  or in any certificate, letter or communication issued or made pursuant
                  to, or
                  with respect to, the Agreement, any reference in any of such items
                  to the
                  Agreement being sufficient to refer to the Agreement as amended
                  hereby.

                

                SECTION
                  5. Governing
                  Law.
                  This
                  Amendment Number One shall be construed in accordance with the
                  laws of the State
                  of New York and the obligations, rights, and remedies of the parties
                  hereunder
                  shall be determined in accordance with such laws without regard
                  to conflict of
                  laws doctrine applied in such state.

                 

                SECTION
                  6. Counterparts.
                  This
                  Amendment Number One may be executed by each of the parties hereto
                  on any number
                  of separate counterparts, each of which shall be an original and
                  all of which
                  taken together shall constitute one and the same instrument.

                 

                [signature
                  page to follow]

                 

                
                  
                    
                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

                IN
                  WITNESS WHEREOF, the Seller, the
                  Interim Servicer
                  and the
                  Purchaser have caused this Amendment Number One to be executed
                  and delivered by
                  their duly authorized officers as of the day and year first above
                  written.

                

                

                NC
                  CAPITAL CORPORATION

                (Seller)

                

                By:___________________________

                Name:_________________________

                Title:__________________________

                
 

                NEW
                  CENTURY MORTGAGE CORPORATION

                (Interim
                  Servicer)

                

                By:___________________________

                Name:_________________________

                Title:__________________________

                 

                 

                DB
                  STRUCTURED PRODUCTS, INC.

                (Purchaser)

                

                By:___________________________

                Name:_________________________

                Title:__________________________     

                

                By:___________________________

                Name:_________________________

                Title:__________________________

                 

                 

                
                  
                    
                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

                AMENDMENT
                  NUMBER TWO

                Master
                  Mortgage Loan Purchase and Interim Servicing Agreement

                dated
                  as
                  of March 1, 2005

                by
                  and
                  among 

                NC
                  CAPITAL CORPORATION,

                NEW
                  CENTURY MORTGAGE CORPORATION

                and

                DB
                  STRUCTURED PRODUCTS, INC.

                

                This
                  AMENDMENT NUMBER TWO is made this 12th day of September, 2005,
                  by and among NC
                  Capital Corporation (the “Seller”) and New Century Mortgage Corporation (the
“Interim Servicer”), both having an address at 18400
                  Von
                  Karman, Suite
                  1000,
Irvine,
                  California
                  92612,
and
                  DB
                  STRUCTURED PRODUCTS, INC. having an address at 60 Wall Street,
                  New York, New
                  York 10005 (the “Purchaser”), to the Master Mortgage Loan Purchase and Interim
                  Servicing Agreement, dated as of March 1, 2005, by and between
                  the Purchaser,
                  the Interim Servicer and the Seller (the “Agreement”).

                

                RECITALS

                

                WHEREAS,
                  the Purchaser, the Interim Servicer and the Seller desire to amend
                  the
                  Agreement, subject to the terms hereof, to modify the Agreement
                  as specified
                  herein; and 

                 

                WHEREAS,
                  the Purchaser, the Interim Servicer and the Seller each have agreed
                  to execute
                  and deliver this Amendment Number Two on the terms and conditions
                  set forth
                  herein.

                

                NOW
                  THEREFORE, for good and valuable consideration, the receipt and
                  sufficiency of
                  which are hereby acknowledged, and of the mutual covenants herein
                  contained, the
                  parties hereto hereby agree as follows:

                

                SECTION
                  1. Amendment.
                  Effective as of September 12, 2005, the Agreement is hereby amended
                  as
                  follows:

                

                (a) Section
                  1
                  of the Agreement is hereby amended by adding the following
                  definitions:

                

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

                

                Regulation
                  AB:
                  Subpart
                  229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as amended from time to time.

                

                Servicing
                  Criteria:
                  As of
                  any date of determination, the “servicing criteria” set forth in Item 1122(d) of
                  Regulation AB, or any amendments thereto.

                

                Sub-Servicer:
                  Any
                  Person with which the Interim Servicer has entered into a sub-servicing
                  agreement to service certain of the Mortgage Loans.

                

                
                  
                    
                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

                Sub-Servicing
                  Agreement:
                  The
                  written contract between the Interim Servicer and a Sub-Servicer
                  relating to
                  servicing and administration of certain Mortgage Loans as provided
                  in Subsection
                  11.30 of this Agreement.

                

                (b) Section
                  11 of the Agreement is hereby amended by deleting the Section in
                  its entirety
                  and replacing it with the following:

                

                SECTION
                  11. Interim
                  Servicer’s Servicing Obligations.
                  The
                  Interim Servicer, as independent contract servicer, shall service
                  and administer
                  the Mortgage Loans the Seller sold to the Purchaser on the related
                  Closing Date
                  during the Interim Servicing Period, directly or through one or
                  more
                  Sub-Servicers, in accordance with the terms and provisions set
                  forth in the
                  Servicing Addendum attached as Exhibit 8, which Servicing Addendum
                  is
                  incorporated herein by reference.

                

                (c) Section
                  12 of the Agreement is hereby amended by deleting subparts (4),
                  (5) and (7) in
                  its entirety and the remaining subpart following subpart (5) is
                  renumbered
                  (4).

                

                (d) Section
                  12 of the Agreement is hereby amended by inserting the following
                  subparts
                  immediately following subpart (4):

                

                  

                  
                    	 	
                            (5)

                          	
                            to
                              negotiate and execute one or more subservicing agreements
                              between the
                              Interim Servicer and any master servicer which is generally
                              considered to
                              be a prudent master servicer in the secondary mortgage
                              market, designated
                              by the Purchaser in its sole discretion after consultation
                              with the
                              Interim Servicer and/or one or more custodial and servicing
                              agreements
                              among the Purchaser, the Interim Servicer and a third
                              party
                              custodian/trustee which is generally considered to
                              be a prudent
                              custodian/trustee in the secondary mortgage market
                              designated by the
                              Purchaser in its sole discretion after consultation
                              with the Interim
                              Servicer, and containing provisions substantially equivalent
                              to those
                              included in the Servicing Addendum to the extent required
                              by the Purchaser
                              in either case for the purpose of pooling the Mortgage
                              Loans with other
                              Mortgage Loans for resale or
                              securitization;

                          

                  

                  

                  
                    	 	
                            (6)

                          	
                            in
                              connection with Pass-Through Transfer, the Interim
                              Servicer shall execute
                              a Reconstitution Agreement, which Reconstitution Agreement
                              may, at the
                              Purchaser’s direction, contain contractual provisions including,
                              but not
                              limited to, a 24-day certificate payment delay (54-day
                              total payment
                              delay), servicer advances of delinquent scheduled payments
                              of principal
                              and interest through liquidation (unless deemed non-recoverable)
                              and
                              prepayment interest shortfalls (to the extent of the
                              monthly servicing fee
                              payable thereto), servicing and mortgage loan representations
                              and
                              warranties which in form and substance conform to the
                              representations and
                              warranties in this Agreement and to secondary market
                              standards for
                              securities backed by mortgage loans similar to the
                              Mortgage Loans and such
                              provisions with regard to servicing responsibilities,
                              investor reporting,
                              segregation and deposit of principal and interest payments,
                              custody of the
                              Mortgage Loans, and other covenants as are required
                              by the Purchaser and
                              one or more nationally recognized rating agencies for
                              mortgage
                              pass-through transactions. If the Purchaser deems it
                              advisable at any time
                              to pool the Mortgage Loans with other mortgage loans
                              for the purpose of
                              resale or securitization, the Interim Servicer agrees
                              to execute a
                              Reconstitution Agreement between itself and a master
                              servicer designated
                              by the Purchaser at its sole discretion, and/or one
                              or more servicing
                              agreements among the Interim Servicer, the Purchaser
                              and a trustee
                              designated by the Purchaser at its sole
                              discretion;

                          

                  

                  

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  
                    	 	
                            (7)

                          	
                            in
                              the event that the Purchaser appoints a credit risk
                              manager in connection
                              with a Pass-Through Transfer, to execute a credit risk
                              management
                              agreement and provide reports and information reasonably
                              required by the
                              credit risk manager;

                          

                  

                  

                  
                    	 	
                            (8)

                          	
                            in
                              connection with any Pass-Through Transfer, to deliver
                              to the Purchaser
                              within five (5) Business Days after request by the
                              Purchaser, the
                              information with respect to the Seller (as originator)
                              and each other
                              originator of the Mortgage Loans as required under
                              Item 1110(a) and (b) of
                              Regulation AB as determined by Purchaser in its sole
                              discretion. If
                              requested by the Purchaser, this will include information
                              about the
                              applicable credit-granting or underwriting
                              criteria;

                          

                  

                  

                  
                    	 	
                            (9)

                          	
                            in
                              connection with any Pass-Through Transfer, to deliver
                              to the Purchaser
                              within five (5) Business Days after request by the
                              Purchaser, static pool
                              information as required under Item 1105(a)(1) - (3)
                              and (c) of Regulation
                              AB and in scope and format as determined by Purchaser
                              in its sole
                              discretion with respect to mortgage loans that were
                              originated by the
                              Seller (as originator) and each other originator of
                              the Mortgage Loans and
                              which are similar to the Mortgage
                              Loans;

                          

                  

                  

                  
                    	 	
                            (10)

                          	
                            in
                              connection with any Pass-Through Transfer, to deliver
                              to the Purchaser
                              within five (5) Business Days after request by the
                              Purchaser, information
                              with respect to the Interim Servicer as required by
                              Item 1108(b) and (c)
                              of Regulation AB as determined by Purchaser in its
                              sole discretion. In the
                              event that the Interim Servicer has delegated any servicing
                              responsibilities with respect to the Mortgage Loans
                              to a Sub-Servicer, the
                              Interim Servicer shall provide the information required
                              pursuant to this
                              clause with respect to the
                              Sub-Servicer;

                          

                  

                  

                  
                    	 	
                            (11)

                          	
                            in
                              connection with any Pass-Through Transfer, to deliver
                              to the Purchaser
                              within five (5) Business Days after request by the
                              Purchaser, (i)
                              information regarding any legal proceedings pending
                              (or known to be
                              contemplated) against the Seller or the Interim Servicer
                              (as originator
                              and as servicer, respectively) and each other originator
                              of the Mortgage
                              Loans and each Sub-Servicer as required by Item 1117
                              of Regulation AB as
                              determined by Purchaser in its sole discretion, (ii)
                              information regarding
                              affiliations with respect to the Seller or the Interim
                              Servicer (as
                              originator and as servicer, respectively) and each
                              other originator of the
                              Mortgage Loans and each Sub-Servicer as required by
                              Item 1119(a) of
                              Regulation AB as determined by Purchaser in its sole
                              discretion, and (iii)
                              information regarding relationships and transactions
                              with respect to the
                              Seller or the Interim Servicer (as originator and as
                              servicer,
                              respectively) and each other originator of the Mortgage
                              Loans and each
                              Sub-Servicer as required by Item 1119(b) and (c) of
                              Regulation AB as
                              determined by Purchaser in its sole discretion;
                              and

                          

                  

                  

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  
                    	 	
                            (12)

                          	
                            to
                              deliver to the Purchaser and to any Person designated
                              by the Purchaser,
                              such statements and audit letters of reputable, certified
                              public
                              accountants pertaining to information provided by the
                              Seller, the Interim
                              Servicer or any Sub-Servicer pursuant to clause (9)
                              above, and pursuant to
                              clauses (8) and (10) above to the extent constituting
                              financial
                              information, as shall be reasonably requested by the
                              Purchaser.

                          

                  

                  

                  (e) Section
                    12 of the Agreement is hereby amended by inserting the following
                    paragraph at
                    the end thereto:

                  

                  The
                    Seller and the Interim Servicer shall indemnify the Purchaser
                    and any sponsor,
                    depositor, issuing entity and underwriter in connection with
                    a Pass-Through
                    Transfer for any losses, damages, penalties, fines, forfeitures,
                    reasonable and
                    necessary legal fees and related costs, judgments, and other
                    costs and expenses
                    resulting from any claim, demand, defense or assertion based
                    on or grounded
                    upon, or resulting from any untrue statement or alleged untrue
                    statement of any
                    material fact contained in the information provided by the Seller,
                    Interim
                    Servicer or any Sub-Servicer pursuant to clauses (8), (9), (10)
                    and (11) of this
                    Section 12 (the “Seller Information”) or the omission or the alleged omission to
                    state in the Seller Information a material fact required to be
                    stated therein or
                    necessary in order to make the statements therein, in light of
                    the circumstances
                    in which they are made, not misleading.

                  

                  (f) Subsection
                    14.01(ix) of the Agreement is hereby amended by (i) deleting
                    the phrase
“Sections 11.23 or 11.24” in its entirety and replacing it with the phrase
“Subsections 11.23, 11.24 or 11.34” and (ii) deleting the phrase “fifteen (15)”
in its entirety and replacing it with the phrase “ten (10)”.

                  

                  (g) Subsection
                    11.15 of the Agreement is hereby amended by inserting the following
                    sentence at
                    the end thereto:

                  

                  To
                    the
                    extent that the Mortgage Loans are the subject of a Pass-Through
                    Transfer, the
                    computer tape must include all information known or available
                    to the Seller or
                    the Interim Servicer that is necessary in order to provide the
                    distribution and
                    pool performance information as required under Item 1121 of Regulation
                    AB as
                    determined by Purchaser in its sole discretion. The Seller or
                    the Interim
                    Servicer, as applicable, shall modify the computer tape format
                    as requested by
                    the Purchaser from time to time in order to comply with the preceding
                    sentence.

                  

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  (h) Subsection
                    11.23 of the Agreement is hereby amended by deleting the subsection
                    in its
                    entirety and replacing it with the following:

                  

                    
                      	 	
                              (a)

                            	
                              The
                                Interim Servicer will deliver to the Purchaser, not
                                later than March 1 of
                                each calendar year beginning in 2006, an Officers’ Certificate (an “Annual
                                Statement of Compliance”) stating, as to each signatory thereof, that (i)
                                a review of the activities of the Interim Servicer
                                during the preceding
                                calendar year and of performance under this Agreement
                                or other applicable
                                servicing agreement has been made under such officers’ supervision and
                                (ii) to the best of such officers’ knowledge, based on such review, the
                                Interim Servicer has fulfilled all of its obligations
                                under this Agreement
                                or other applicable servicing agreement in all material
                                respects
                                throughout such year, or, if there has been a failure
                                to fulfill any such
                                obligation in any material respect, specifying each
                                such failure known to
                                such officer and the nature and status thereof. Copies
                                of such statement
                                shall be provided by the Purchaser to any Person
                                identified as a
                                prospective purchaser of the Mortgage Loans. In the
                                event that the Interim
                                Servicer has delegated any servicing responsibilities
                                with respect to the
                                Mortgage Loans to a Sub-Servicer, the Interim Servicer
                                shall deliver an
                                officer’s certificate of the Sub-Servicer as described above
                                as to each
                                Sub-Servicer as and when required with respect to
                                the Interim
                                Servicer.

                            

                    

                    

                    
                      	 	
                              (b)

                            	
                              With
                                respect to any Mortgage Loans that are the subject
                                of a Pass-Through
                                Transfer, by March 1 of each calendar year beginning
                                in 2006, an officer
                                of the Interim Servicer shall execute and deliver
                                an Officer’s Certificate
                                to the Purchaser, any master servicer which is master
                                servicing loans in
                                connection with such transaction (a “Master Servicer”) and any related
                                depositor (a “Depositor”) for the benefit of each such entity and such
                                entity’s affiliates and the officers, directors and agents
                                of any such
                                entity and such entity’s affiliates, an Officer’s Certificate in the form
                                attached hereto as Exhibit 12. In the event that
                                the Interim Servicer has
                                delegated any servicing responsibilities with respect
                                to the Mortgage
                                Loans to a Sub-Servicer, the Interim Servicer shall
                                deliver an officer’s
                                certificate of the Sub-Servicer as described above
                                as to each Sub-Servicer
                                as and when required with respect to the Interim
                                Servicer.

                            

                    

                    

                    
                      
                        
                        

                      

                      
                        
                        

                        
                          

                        

                      

                      
                        
                        

                      

                    

                    
                      	 	
                              (c)

                            	
                              The
                                Interim Servicer shall indemnify and hold harmless
                                the Master Servicer,
                                the Depositor, the Purchaser (and if this Agreement
                                has been assigned in
                                whole or in part by the Purchaser, any and all Persons
                                previously acting
                                as “Purchaser” hereunder), and their respective officers, directors,
                                agents and affiliates, and such affiliates’ officers, directors and agents
                                (any such person, an “Indemnified Party”) 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 Interim Servicer or any of its officers,
                                directors, agents
                                or affiliates of its obligations under this Subsection
                                11.23, Subsection
                                11.24 or Subsection 11.34, or the negligence, bad
                                faith or willful
                                misconduct of the Interim Servicer in connection
                                therewith. If the
                                indemnification provided for herein is unavailable
                                or insufficient to hold
                                harmless any Indemnified Party, then the Interim
                                Servicer agrees that it
                                shall contribute to the amount paid or payable by
                                the Indemnified Party as
                                a result of the losses, claims, damages or liabilities
                                of the Indemnified
                                Party in such proportion as is appropriate to reflect
                                the relative fault
                                of the Indemnified Party on the one hand and the
                                Interim Servicer in the
                                other in connection with a breach of the Interim
                                Servicer’s obligations
                                under this Subsection 11.23, Subsection 11.24 or
                                Subsection 11.34, or the
                                Interim Servicer’s negligence, bad faith or willful misconduct in
                                connection therewith.

                            

                      	 	 	 

                    

                  

                  (i) Subsection
                    11.24 of the Agreement is hereby amended by deleting the Subsection
                    in its
                    entirety and replacing it with the following:

                  

                  Subsection
                    11.24 Independent
                    Public Accountants’ Servicing Report.

                  

                  Not
                    later
                    than March 1 of each calendar year beginning in 2006, the Interim
                    Servicer at
                    its expense shall cause a firm of independent public accountants
                    (which may also
                    render other services to the Interim Servicer) which is a member
                    of the American
                    Institute of Certified Public Accountants to furnish a report
                    (a “USAP Report”)
                    to the Purchaser or its designee to the effect that such firm
                    has examined
                    certain documents and records relating to the servicing of the
                    Mortgage Loans
                    under this Agreement or of mortgage loans under pooling and servicing
                    agreements
                    (including the Mortgage Loans and this Agreement) substantially
                    similar one to
                    another (such statement to have attached thereto a schedule setting
                    forth the
                    pooling and servicing agreements covered thereby) and that, on
                    the basis of such
                    examination conducted substantially in compliance with the Uniform
                    Single
                    Attestation Program for Mortgage Bankers, such firm confirms
                    that such servicing
                    has been conducted in compliance with such pooling and servicing
                    agreements
                    during the preceding calendar year, except for such significant
                    exceptions or
                    errors in records that, in the opinion of such firm, the Uniform
                    Single
                    Attestation Program for Mortgage Bankers requires it to report.
                    Copies of such
                    report shall be provided by the Purchaser to any Person identified
                    as a
                    prospective purchaser of the Mortgage Loans.

                  

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  In
                    the
                    event that the Interim Servicer has delegated any servicing responsibilities
                    with respect to the Mortgage Loans to a Sub-Servicer, the Interim
                    Servicer shall
                    provide a statement of the Sub-Servicer as described above as
                    to each
                    Sub-Servicer as and when required with respect to the Interim
                    Servicer.

                  

                  Notwithstanding
                    the foregoing, the Interim Servicer’s obligation to deliver a USAP Report under
                    this Subsection, as to the Interim Servicer or any Sub-Servicer,
                    as to any
                    calendar year, beginning with the report required in March 2007,
                    shall be
                    satisfied if an Assessment of Compliance and Attestation Report
                    is delivered in
                    compliance with Subsection 11.34 for such calendar year with
                    respect to that
                    entity.

                  

                  (j) Exhibit
                    8
                    of the Agreement is hereby amended by inserting the following
                    sections at the
                    end thereto:

                  

                  Subsection
                    11.30 Sub-Servicing
                    Agreements Between the Interim Servicer and Sub-Servicers.

                  

                  The
                    Interim Servicer, as servicer, may arrange for the subservicing
                    of any Mortgage
                    Loan by a Sub-Servicer pursuant to a Sub-Servicing Agreement;
                    provided that such
                    sub-servicing arrangement and the terms of the related Sub-Servicing
                    Agreement
                    must provide for the servicing of such Mortgage Loans in a manner
                    consistent
                    with the servicing arrangements contemplated hereunder. 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 FHLMC
                    or FNMA
                    approved mortgage servicer. Notwithstanding the provisions of
                    any Sub-Servicing
                    Agreement, any of the provisions of this Agreement relating to
                    agreements or
                    arrangements between the Interim Servicer or a Sub-Servicer or
                    reference to
                    actions taken through the Interim Servicer or otherwise, the
                    Interim Servicer
                    shall remain obligated and liable to the Purchaser and its successors
                    and
                    assigns for the servicing and administration of the Mortgage
                    Loans in accordance
                    with the provisions of this Agreement without diminution of such
                    obligation or
                    liability by virtue of 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 Interim Servicer alone
                    were servicing
                    and administering the Mortgage Loans. Every Sub-Servicing Agreement
                    entered into
                    by the Interim Servicer shall contain a provision giving the
                    successor servicer
                    the option to terminate such agreement in the event a successor
                    servicer is
                    appointed. All actions of each Sub-Servicer performed pursuant
                    to the related
                    Sub-Servicing Agreement shall be performed as an agent of the
                    Interim Servicer
                    with the same force and effect as if performed directly by the
                    Interim
                    Servicer.

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  

                  For
                    purposes of this Agreement, the Interim Servicer shall be deemed
                    to have
                    received any collections, recoveries or payments with respect
                    to the Mortgage
                    Loans that are received by a Sub-Servicer regardless of whether
                    such payments
                    are remitted by the Sub-Servicer to the Interim Servicer.

                  

                  Subsection
                    11.31 Successor
                    Sub-Servicers.

                  

                  Any
                    Sub-Servicing Agreement shall provide that the Interim Servicer
                    shall be
                    entitled to terminate any Sub-Servicing Agreement and to either
                    itself directly
                    service the related Mortgage Loans or enter into a Sub-Servicing
                    Agreement with
                    a successor Sub-Servicer which qualifies under Subsection 11.33.
                    Any
                    Sub-Servicing Agreement shall include the provision that such
                    agreement may be
                    immediately terminated by any successor to the Interim Servicer
                    without fee, in
                    accordance with the terms of this Agreement, in the event that
                    the Interim
                    Servicer (or any successor to the Interim Servicer) shall, for
                    any reason, no
                    longer be the servicer of the related Mortgage Loans (including
                    termination due
                    to an Event of Default).

                  

                  Subsection
                    11.32 No
                    Contractual Relationship Between Sub-Servicer and Purchaser.

                  

                  Any
                    Sub-Servicing Agreement and any other transactions or services
                    relating to the
                    Mortgage Loans involving a Sub-Servicer shall be deemed to be
                    between the
                    Sub-Servicer and the Interim Servicer alone and the Purchaser
                    shall not be
                    deemed a party thereto and shall have no claims, rights, obligations,
                    duties or
                    liabilities with respect to any Sub-Servicer except as set forth
                    in Subsection
                    11.33.

                  

                  Subsection
                    11.33 Assumption
                    or Termination of Sub-Servicing Agreement by Successor Servicer.

                  

                  In
                    connection with the assumption of the responsibilities, duties
                    and liabilities
                    and of the authority, power and rights of the Interim Servicer
                    hereunder by a
                    successor servicer pursuant to Section 16 of this Agreement,
                    it is understood
                    and agreed that the Interim Servicer’s rights and obligations under any
                    Sub-Servicing Agreement then in force between the Interim Servicer
                    and a
                    Sub-Servicer shall be assumed simultaneously by such successor
                    servicer without
                    act or deed on the part of such successor servicer; provided,
                    however, that any
                    successor servicer may terminate the Sub-Servicer.

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  

                  The
                    Interim Servicer shall, upon the reasonable request of the Purchaser,
                    but at its
                    own expense, deliver to the assuming party documents and records
                    relating to
                    each Sub-Servicing Agreement and an accounting of amounts collected
                    and held by
                    it and otherwise use its best efforts to effect the orderly and
                    efficient
                    transfer of the Sub-Servicing Agreements to the assuming party.

                  

                  The
                    Servicing Fee payable to any such successor servicer shall be
                    payable from
                    payments received on the Mortgage Loans in the amount and in
                    the manner set
                    forth in this Agreement.

                  

                  Subsection
                    11.34 Assessment
                    of Compliance with Servicing Criteria.

                  

                  With
                    respect to any Mortgage Loans that are the subject of a Pass-Through
                    Transfer,
                    the Interim Servicer shall deliver to the Purchaser or its designee
                    on or before
                    March 1 of each calendar year beginning in 2007, a report (an
“Assessment of
                    Compliance”) reasonably satisfactory to the Purchaser regarding the Interim
                    Servicer’s assessment of compliance with the Servicing Criteria during
                    the
                    preceding calendar year as required by Rules 13a-18 and 15d-18
                    of the Exchange
                    Act and Item 1122 of Regulation AB, which as of the date hereof,
                    require a
                    report by an authorized officer of the Interim Servicer that
                    contains the
                    following:

                  

                  (a) A
                    statement by such officer of its responsibility for assessing
                    compliance with
                    the Servicing Criteria applicable to the Interim Servicer;

                  

                  (b) A
                    statement by such officer that such officer used the Servicing
                    Criteria to
                    assess compliance with the Servicing Criteria applicable to the
                    Interim
                    Servicer;

                  

                  (c) An
                    assessment by such officer of the Interim Servicer’s compliance with the
                    applicable Servicing Criteria for the period consisting of the
                    preceding
                    calendar year, including disclosure of any material instance
                    of noncompliance
                    with respect thereto during such period, which assessment shall
                    be based on the
                    activities it performs with respect to asset-backed securities
                    transactions
                    taken as a whole involving the Interim Servicer, that are backed
                    by the same
                    asset type as the Mortgage Loans;

                  

                  (d) A
                    statement that a registered public accounting firm has issued
                    an attestation
                    report on the Interim Servicer’s Assessment of Compliance for the period
                    consisting of the preceding calendar year; and

                  

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  (e) A
                    statement as to which of the Servicing Criteria, if any, are
                    not applicable to
                    the Interim Servicer, which statement shall be based on the activities
                    it
                    performs with respect to asset-backed securities transactions
                    taken as a whole
                    involving the Interim Servicer, that are backed by the same asset
                    type as the
                    Mortgage Loans.

                  

                  With
                    respect to any Mortgage Loans that are the subject of a Pass-Through
                    Transfer,
                    on or before March 1 of each calendar year beginning in 2007,
                    the Interim
                    Servicer shall furnish to the Purchaser or its designee a report
                    (an
“Attestation Report”) by a registered public accounting firm that attests to,
                    and reports on, the Assessment of Compliance made by the Interim
                    Servicer, as
                    required by Rules 13a-18 and 15d-18 of the Exchange Act and Item
                    1122(b) of
                    Regulation AB, which Attestation Report must be made in accordance
                    with
                    standards for attestation reports issued or adopted by the Public
                    Company
                    Accounting Oversight Board. 

                  

                  In
                    the
                    event that the Interim Servicer has delegated any servicing responsibilities
                    with respect to the Mortgage Loans to a Sub-Servicer, the Interim
                    Servicer shall
                    provide an Assessment of Compliance of the Sub-Servicer and accompanying
                    Attestation Report as described above as to each Sub-Servicer
                    as and when
                    required with respect to the Interim Servicer.

                  

                  (k) The
                    Agreement is hereby amended by inserting Exhibit 12 in the form
                    of Annex
                    A
                    attached
                    hereto at the end thereto. 

                  

                  SECTION
                    2. Defined
                    Terms.
                    Any
                    terms capitalized but not otherwise defined herein shall have
                    the respective
                    meanings set forth in the Agreement.

                  

                  SECTION
                    3. Limited
                    Effect.
                    Except
                    as amended hereby, the Agreement shall continue in full force
                    and effect in
                    accordance with its terms. Reference to this Amendment need not
                    be made in the
                    Agreement or any other instrument or document executed in connection
                    therewith,
                    or in any certificate, letter or communication issued or made
                    pursuant to, or
                    with respect to, the Agreement, any reference in any of such
                    items to the
                    Agreement being sufficient to refer to the Agreement as amended
                    hereby. This
                    Amendment Number Two shall apply to all Mortgage Loans subject
                    to the Agreement
                    notwithstanding that any such Mortgage Loans were purchased prior
                    to the date of
                    this Amendment Number Two.

                  

                  SECTION
                    4. Governing
                    Law.
                    This
                    Amendment Number Two shall be construed in accordance with the
                    laws of the State
                    of New York and the obligations, rights, and remedies of the
                    parties hereunder
                    shall be determined in accordance with such laws without regard
                    to conflict of
                    laws doctrine applied in such state (other than Section 5-1401
                    or 5-1402 of the
                    New York General Obligations Law).

                  

                  SECTION
                    5. Counterparts.
                    This
                    Amendment Number Two may be executed by each of the parties hereto
                    on any number
                    of separate counterparts, each of which shall be an original
                    and all of which
                    taken together shall constitute one and the same instrument.

                  

                   

                  [SIGNATURE
                    PAGE TO FOLLOW]

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  IN
                    WITNESS WHEREOF, the Seller, the Interim Servicer and the Purchaser
                    have caused
                    this Amendment Number Two to be executed and delivered by their
                    duly authorized
                    officers as of the day and year first above written.

                  

                  

                  NC
                    CAPITAL CORPORATION

                  (Seller)

                  By:___________________________

                  Name:_________________________

                  Title:__________________________

                   

                   

                  NEW
                    CENTURY MORTGAGE CORPORATION

                  Interim
                    Servicer)

                  

                  By:___________________________

                  Name:_________________________

                  Title:__________________________

                  
 

                  DB
                    STRUCTURED PRODUCTS, INC.

                  (Purchaser)

                  

                  By:___________________________

                  Name:_________________________

                  Title:__________________________     

                  
 

                  By:___________________________

                  Name:_________________________

                  Title:__________________________

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  
                    ANNEX
                      A

                    

                    EXHIBIT
                      12

                    FORM
                      OF
                      BACK-UP CERTIFICATION

                    

                    I,
                      [identify certifying individual], certify to the [Initial Purchaser],
                      [Mortgage
                      Loan Seller] [Depositor], [Trustee], [Securities Administrator]
                      and [Master
                      Servicer] that:

                    

                    (i) Based
                      on
                      my knowledge, the information in the Annual Statement of Compliance,
                      the [USAP
                      Report]* 
                      [Assessment of Compliance and Attestation Report]* *
                      and all
                      servicing reports, officer's certificates and other information
                      provided by the
                      Interim Servicer relating to the servicing of the Mortgage
                      Loans 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
                      as of the
                      date of this certification;

                    

                    (ii) The
                      servicing information required to be provided by the Interim
                      Servicer under this
                      Servicing Agreement has been provided to the Purchaser and
                      the Master
                      Servicer;

                    

                    (iii) I
                      am
                      responsible for reviewing the activities performed by the Interim
                      Servicer under
                      the Agreement and based upon the review required by this Servicing
                      Agreement,
                      and except as disclosed in the Annual Statement of Compliance
                      or the [USAP
                      Report]*
                      [Assessment of Compliance and Attestation Report]**,
                      the
                      Interim Servicer has, as of the date of this certification
                      fulfilled its
                      obligations under this Servicing Agreement; and

                    

                    (iv) [I
                      have
                      disclosed to the Purchaser and the Master Servicer all significant
                      deficiencies
                      relating to the Interim Servicer’s compliance with the minimum servicing
                      standards in accordance with a review conducted in compliance
                      with the Uniform
                      Single Attestation Program for Mortgage Bankers or similar
                      standard as set forth
                      in the Servicing Agreement.]*
                      [The
                      Assessment of Compliance and Attestation Report of the Interim
                      Servicer have
                      been delivered to the Purchaser as required under the Servicing
                      Agreement.
                      Following is a list of all material instances of noncompliance
                      described in the
                      Attestation of Compliance and Attestation Report (if none,
                      state
“none”):_____________________.]**

                    

                    NEW
                      CENTURY MORTGAGE CORPORATION

                    (Interim
                      Servicer)

                     

                    By:                    

                    Name:

                    Title:

                    Date:

                     

                    
                      
                        ___________________

                        *
                          To be
                          used if a USAP Report is being delivered under the Servicing
                          Agreement

                      

                      
                        **
                          To be
                          used if an Assessment of Compliance and Attestation Report
                          is being delivered
                          under the Servicing Agreement

                         

                         

                        
                          
                            
                            

                          

                          
                            
                            

                            
                              

                            

                          

                          
                            
                            

                          

                        

                      

                    

                  

                  

                  AMENDMENT
                    NUMBER THREE

                  Master
                    Mortgage Loan Purchase and Interim Servicing Agreement

                  dated
                    as
                    of March 1, 2005

                  by
                    and
                    between 

                  NC
                    CAPITAL CORPORATION,

                  NEW
                    CENTURY MORTGAGE CORPORATION

                  and

                  DB
                    STRUCTURED PRODUCTS, INC.

                  

                  This
                    AMENDMENT NUMBER THREE is made this 15th
                    day of
                    June, 2006, by and among NC Capital Corporation (the “Seller) and New Century
                    Mortgage Corporation (the “Interim Servicer”), both having an address at
18400
                    Von
                    Karman, Suite 1000, Irvine, California 92612 and DB STRUCTURED
                    PRODUCTS, INC.
                    having an address at 60 Wall Street, New York, New York 10005
                    (the “Purchaser”),
                    to the Master Mortgage Loan Purchase and Interim Servicing Agreement,
                    dated as
                    of March 1, 2005, by and between the Purchaser and the Seller
                    (the
“Agreement”).

                  

                  RECITALS

                  

                  WHEREAS,
                    the Purchaser and the Seller desire to amend the Agreement, subject
                    to the terms
                    hereof, to modify the Agreement as specified herein; and 

                   

                  WHEREAS,
                    the Purchaser and the Seller each have agreed to execute and
                    deliver this
                    Amendment Number Three on the terms and conditions set forth
                    herein.

                  

                  NOW
                    THEREFORE, for good and valuable consideration, the receipt and
                    sufficiency of
                    which are hereby acknowledged, and of the mutual covenants herein
                    contained, the
                    parties hereto hereby agree as follows:

                  

                  SECTION
                    1. Amendment.
                    Effective as of June 15, 2006 the Agreement is hereby amended
                    as
                    follows:

                  

                  (a) Section
                    1
                    of the Agreement is hereby amended by adding the following
                    definitions:

                  

                  Commission:
                    The
                    United States Securities and Exchange Commission.

                  

                  Depositor:
                    The
                    depositor, as such term is defined in Regulation AB, with respect
                    to any
                    Securitization Transaction.

                  

                  Master
                    Servicer:
                    With
                    respect to any Securitization Transaction, the “master servicer,” if any,
                    identified in the related transaction documents.

                  

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  Qualified
                    Correspondent:
                    Any
                    Person from which the Seller purchased Mortgage Loans, provided
                    that the
                    following conditions are satisfied: (i) such Mortgage Loans were
                    originated
                    pursuant to an agreement between the Seller and such Person that
                    contemplated
                    that such Person would underwrite mortgage loans from time to
                    time, for sale to
                    the Seller, in accordance with underwriting guidelines designated
                    by the Seller
                    (“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 Seller
                    within one hundred
                    eighty (180) days after origination; (iii) either (x) the Designated
                    Guidelines
                    were, at the time such Mortgage Loans were originated, used by
                    the Seller in
                    origination of mortgage loans of the same type as the Mortgage
                    Loans for the
                    Seller’s own account or (y) the Designated Guidelines were, at the time
                    such
                    Mortgage Loans were underwritten, designated by the Seller on
                    a consistent basis
                    for use by lenders in originating mortgage loans to be purchased
                    by the Seller;
                    and (iv) the Seller employed, at the time such Mortgage Loans
                    were acquired by
                    the Seller, 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 Seller.

                  

                  Reconstitution:
                    Any
                    Securitization Transaction or Whole Loan Transfer.

                  

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

                  

                  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.

                  

                  Seller
                    Information:
                    As
                    defined in Section 12A.07(a).

                  

                  Servicer:
                    As
                    defined in Section 12A.03(c).

                  

                  Static
                    Pool Information:
                    Static
                    pool information as described in Item 1105(a)(1)-(3) and 1105(c)
                    of Regulation
                    AB.

                  

                  Subcontractor:
                    Any
                    vendor, subcontractor or other Person that is not responsible
                    for the overall
                    servicing (as “servicing” is commonly understood by participants in the
                    mortgage-backed securities market) of Mortgage Loans but performs
                    one or more
                    discrete functions identified in Item 1122(d) of Regulation AB
                    with respect to
                    Mortgage Loans under the direction or authority of the Seller
                    or a
                    Subservicer.

                  

                  

                  
                    
                      
                      

                    

                    
                      2

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  Third-Party
                    Originator:
                    Each
                    Person, other than a Qualified Correspondent, that originated
                    Mortgage Loans
                    acquired by the Seller.

                  

                  (b) The
                    definition of Mortgage Loan Schedule in Section 1 of the Agreement
                    is hereby
                    amended by (i) adding the words “investment or a second home (e.g. a vacation
                    property)” after the words “owner-occupied” in clause (4) of the first sentence
                    thereof and (ii) deleting the word “and” before part (49) of the definition of
“Mortgage Loan Schedule”, replacing it with a semicolon and adding the following
                    after part (49):

                  

                  ;
                    (50) with respect to each Adjustable Rate Mortgage Loan, the
                    lookback days; (51)
                    a code indicating whether the Mortgagor is a first-time home
                    buyer; (52) the
                    race of the Mortgagor and any co-borrower; (53) the ethnicity
                    of the Mortgagor
                    and any co-borrower; (54) the Mortgagor’s monthly housing expense (if
                    available); (55) the Mortgagor’s monthly debt payment (if available); and (56)
                    the gender of the Mortgagor and any co-borrower.

                  

                  (c) Section
                    1
                    of the Agreement is hereby amended by deleting the definition
                    of “Pass-Through
                    Transfer” in its entirety.

                  

                  (d) Section
                    1
                    of the Agreement is hereby amended by deleting the definition
                    of “Regulation AB”
in its entirety and replacing it with the following:

                  

                  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.

                  

                  (e) Section
                    1
                    of the Agreement is hereby amended by deleting the phrase “or (2) such other
                    amount set forth in the related Commitment Letter” in the definition of
“Repurchase Price” and replacing it with the following:

                  

                  less
                    amounts received in respect of such repurchased Mortgage Loan
                    which are being
                    held in the Custodial Account for distribution in connection
                    with such Mortgage
                    Loan, plus (c) any reasonable unreimbursed servicing advances
                    and monthly
                    advances (including nonrecoverable monthly advances) and any
                    unpaid servicing
                    fees allocable to such Mortgage Loan paid by any party other
                    than the Seller,
                    plus (d) any out-of-pocket costs and expenses incurred by the
                    Purchaser, the
                    servicer, master servicer or any trustee in respect of the breach
                    or defect
                    giving rise to the repurchase obligation including, without limitation,
                    any
                    costs and damages incurred by any such party in connection with
                    any violation by
                    any such Mortgage Loan of any predatory or abusive lending law.

                   

                  
                    
                      
                      

                    

                    
                      3

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  (f) Section
                    1
                    of the Agreement is hereby amended by deleting the definition
                    of “Servicing
                    Criteria” in its entirety and replacing it with the following:

                  

                  Servicing
                    Criteria:
                    The
“servicing criteria” set forth in Item 1122(d) of Regulation AB, as such may be
                    amended from time to time.

                  

                  (g) Section
                    1
                    of the Agreement is hereby amended by deleting the definition
                    of “Sub-servicer”
in its entirety and replacing it with the following:

                  

                  Subservicer:
                    Any
                    Person that services Mortgage Loans on behalf of the Seller or
                    any Subservicer
                    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 by the Seller under this Agreement or
                    any
                    Reconstitution Agreement that are identified in Item 1122(d)
                    of Regulation
                    AB.

                  

                  (h) Section
                    1
                    of the Agreement is hereby amended by deleting the definition
                    of “Whole Loan
                    Transfer” in its entirety and replacing it with the following:

                  

                  Whole
                    Loan Transfer:
                    Any
                    sale or transfer of some or all of the Mortgage Loans, other
                    than a
                    Securitization Transaction.

                  

                  (i) Subsection
                    6.03 is hereby amended by deleting the second sentence of the
                    second paragraph
                    thereto in its entirety.

                  

                  (j) Subsection
                    7.02 of the Agreement is hereby amended by adding the following
                    to the third
                    sentence of subpart (viii) thereof:

                  

                  “and
                    in
                    an amount representing coverage not less than the great of (i)
                    the lesser of (a)
                    the outstanding principal balance of the Mortgage Loan (plus
                    any additional
                    amount required to prevent the Mortgagor from being deemed a
                    co-insurer) or (b)
                    the amount necessary to fully compensate for any damage or loss
                    to the
                    improvements which are a part of such property on a replacement
                    cost basis, or
                    (ii0 the maximum amount of insurance which is available under
                    the National Flood
                    Insurance Act of 1968 or the Flood Disaster Protection Act of
                    1973, as
                    amended”

                  

                  (k) Subpart
                    (ix) of Subsection 7.02 of the Agreement is hereby amended by
                    (i) deleting the
                    first word thereof and replacing it with “Each Mortgage Loan and, if any, the
                    related Prepayment Charge complied in all material respects with
                    any” and (ii)
                    adding the words “, fair” after the word “predatory” in the first sentence
                    thereof.

                  

                  (l) Subsection
                    7.02 of the Agreement is hereby amended by adding the following
                    to the beginning
                    of the first sentence of subpart (xvii) thereof:

                   

                  
                    
                      
                      

                    

                    
                      4

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  

                  “Unless
                    the Mortgaged Property is located in the State of Iowa and an
                    attorney’s
                    certificate and/or a certificate of title guaranty has been
                    obtained,”

                   

                  (m) Subsection
                    7.02 of the Agreement is hereby amended by deleting subpart (xxvii)
                    in its
                    entirety and replacing it with the following:

                  

                  “The
                    Mortgage Loan was underwritten in accordance with the Underwriting
                    Guidelines in
                    effect at the time the Mortgage Loan was originated (including any
                    reasonable variances (a) permitted pursuant to the
                    Underwriting Guidelines or (b) as noted in the Mortgage File); and the
                    Mortgage Note and Mortgage are on forms acceptable to prudent
                    mortgage lending
                    institutions in the secondary market”

                  

                  (n) Subpart
                    (li) of Subsection 7.02 of the Agreement is hereby amended by
                    (i) deleting the
                    phrase “the City of Oakland, California Anti-Predatory Lending Ordinance
                    No.
                    12361” in part (b) thereof and (ii) adding the following language immediately
                    after the words “as amended” in the first sentence thereof:

                  

                  “(“HOEPA”),
                    or has an “annual percentage rate” or “total points and fees” payable by the
                    borrower (as each such term is defined under HOEPA) that equal
                    or exceed the
                    applicable thresholds defined under HOEPA (Section 32 of Regulation
                    Z, 12 C.F.R.
                    Section 226.32(a)(1)(i) and (ii))”

                  

                  (o) Subpart
                    (lvi) of Subsection 7.02 of the Agreement is hereby amended by
                    adding the phrase
“and is not an adjustable rate option Mortgage Loan” after the phrase “negative
                    amortization.”

                  

                  (p) Subsection
                    7.02 of the Agreement is hereby amended by deleting subpart (lvii)
                    thereof in
                    its entirety and replacing it with the following:

                  

                  (lvii) [Reserved]

                  

                  (q) Subsection
                    7.02 of the Agreement is hereby amended by deleting subpart (lix)
                    thereof in its
                    entirety and replacing it with the following:

                  

                  (lix) With
                    respect to any Mortgage Loan that contains a provision permitting
                    imposition of
                    a Prepayment Charge: (a) the Mortgage Loan provides some benefit
                    to the
                    Mortgagor (e.g., a rate or fee reduction) in exchange for accepting
                    such
                    Prepayment Charge; (b) the Mortgage Loan’s originator had a written policy of
                    offering the Mortgagor, or requiring third-party brokers to offer
                    the Mortgagor,
                    the option of obtaining a Mortgage Loan that did not require
                    payment of such a
                    Prepayment Charge; (c) the Prepayment Charge was adequately disclosed
                    to the
                    Mortgagor pursuant to applicable state and federal law, (d) the
                    duration of the
                    prepayment period shall not exceed three (3) years from the date
                    of the Mortgage
                    Note and (e) such Prepayment Charge shall not be imposed in any
                    instance where
                    the Mortgage Loan is accelerated or paid off in connection with
                    the workout of a
                    delinquent mortgage or due to the Mortgagor’s default, notwithstanding that the
                    terms of the Mortgage Loan or state or federal law might permit
                    the imposition
                    of such Prepayment Charge;

                  

                  
                    
                      
                      

                    

                    
                      5

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  (r) Subsection
                    7.02 of the Agreement is hereby amended by deleting subpart (lx)
                    thereof in its
                    entirety and replacing it with the following:

                  

                  (lx) No
                    Mortgagor was required to purchase any single premium credit
                    insurance policy
                    (e.g., life, mortgage, disability, accident, unemployment, property 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 insurance policy (e.g., life, mortgage, disability,
                    accident,
                    unemployment, property or health insurance product) or debt cancellation
                    agreement in connection with the origination of the Mortgage
                    Loan; No proceeds
                    from any Mortgage Loan were used to purchase single premium credit
                    insurance
                    policies (e.g., life, mortgage, disability, accident, unemployment,
                    property or
                    health insurance product) or debt cancellation agreements as
                    part of the
                    origination of, or as a condition to closing, such Mortgage Loan;

                  

                  (s) Subsection
                    7.02 of the Agreement is hereby amended by deleting subpart (lxv)
                    thereof in its
                    entirety and replacing it with the following:

                  

                  (lxv) No
                    Mortgagor was encouraged or required to select a Mortgage Loan
                    product offered
                    by the Mortgage Loan’s originator which is a higher cost product designed for
                    less creditworthy borrowers, taking into account such facts as,
                    without
                    limitation, the mortgage loan’s requirements and the Mortgagor’s credit history,
                    income, assets and liabilities. Each borrower who sought financing
                    through a
                    Mortgage Loan originator’s higher-priced subprime lending channel, was directed
                    towards or offered the Mortgage Loan originator’s standard mortgage line if the
                    borrower was able to qualify for one of the standard products;
                    provided that the
                    foregoing shall not require the Mortgage Loan originator to refer
                    the borrower
                    to an affiliate of the originator;

                  

                  (t) Subsection
                    7.02 of the Agreement is hereby amended by deleting subpart (lxvi)
                    thereof in
                    its entirety and replacing it with the following:

                  

                  (lxvi) The
                    methodology used in underwriting the extension of credit for
                    each Mortgage Loan
                    did not rely on the extent of the Mortgagor’s equity in the collateral as the
                    principal determining factor in approving such extension of credit.
                    The
                    methodology employed objective criteria that related such facts
                    as, without
                    limitation, the Mortgagor’s credit history, income, assets or liabilities, to
                    the proposed mortgage payment and, based on such methodology,
                    the Mortgage
                    Loan’s originator made a reasonable determination that at the time
                    of
                    origination the Mortgagor had the ability to make timely payments
                    on the
                    Mortgage Loan;

                  

                  
                    
                      
                      

                    

                    
                      6

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  (u) Subsection
                    7.02 of the Agreement is hereby amended by deleting subpart (lxxiii)
                    in its
                    entirety and replacing it with “[Reserved].”

                  

                  (v) Subsection
                    7.02 of the Agreement is hereby amended by adding the following
                    new subpart
                    (lxxix) at the end thereof:

                  

                  (lxxix) No
                    Mortgage Loan is secured in whole or in part by an interest in
                    manufactured
                    housing.

                  

                  (w) Subsection
                    7.03 of the Agreement is hereby amended by deleting the last
                    sentence of the
                    second paragraph thereof in its entirety and replacing it with
                    the
                    following:

                  

                  Notwithstanding
                    anything to the contrary contained herein, it is understood by
                    the parties
                    hereto that a breach of the representations and warranties made
                    in Subsections
                    7.02(ix), (l), (li), (lvii), (lix), (lx), (lxi), (lxii), (lxv), (lxvi), or
                    (lxxii) or (lxxix) will be deemed to materially and adversely
                    affect the value
                    of the related Mortgage Loan or the interest of the Purchaser
                    therein.

                  

                  (x) Subsection
                    7.03 of the Agreement is hereby amended by adding the following
                    paragraph after
                    the seventh paragraph thereof:

                  

                  With
                    respect to any Mortgage Loan originated on or after November
                    7, 2004 which is
                    secured by a Mortgaged Property located in the State of Massachusetts
                    that is a
                    refinanced Mortgage Loan, (a) if the related mortgagor alleges
                    any violation of
                    the mortgage loan refinance requirements of the State of Massachusetts
                    or (b)
                    any such Mortgage Loans cannot be included in a Securitization
                    Transaction as a
                    result of any regulatory, predatory or high cost concerns, the
                    Seller shall
                    repurchase such Mortgage Loan no later than five (5) business
                    days following the
                    Purchaser’s request for repurchase in an amount equal to the Repurchase
                    Price.
                    The Purchaser and the Seller agree that there shall be no requirement
                    that any
                    violations alleged by a mortgagor as set forth in clause (a)
                    above have any
                    merit or demonstrate any validity prior to the Seller’s obligation to repurchase
                    such Mortgage Loan. The Seller shall also indemnify the Purchaser
                    pursuant to
                    the terms of this Agreement to the extent that any of the events
                    set forth in
                    clauses (a) or (b) occur.

                   

                  (y) Section
                    12 of the Agreement is hereby amended by (i) deleting subparts
                    (8), (9), (10),
                    (11) and (12) in their entirety and inserting the following subparts
                    immediately
                    following subpart (7):

                  

                  
                    	 	
                            (8)

                          	
                            to
                              deliver to the Purchaser for inclusion in any prospectus
                              or other offering
                              material such publicly available information regarding
                              the Seller and the
                              Interim Servicer, its financial condition and its mortgage
                              loan
                              delinquency, foreclosure and loss experience and any
                              additional
                              information reasonably requested by the Purchaser and
                              which the Seller and
                              the Interim Servicer is capable of providing without
                              unreasonable effort
                              or expense, and to indemnify the Purchaser and its
                              affiliates for material
                              misstatements or omissions contained (i) in such information
                              and (ii) on
                              the Mortgage Loan Schedule;

                          

                  

                   

                  
                    
                      
                      

                    

                    
                      7

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  
                    	 	
                            (9)

                          	
                            to
                              deliver to the Purchaser and to any Person designated
                              by the Purchaser, at
                              the Purchaser’s expense, such statements and audit letters of reputable,
                              certified public accountants pertaining to information
                              provided by the
                              Seller and the Interim Servicer pursuant to clause
                              8 above as shall be
                              reasonably requested by the
                              Purchaser;

                          

                  

                   

                  (10)    
                    to deliver to the Purchaser such information, reports, letters
                    and
                    certifications as are required pursuant to Section 12A and to
                    indemnify the
                    Purchaser and its affiliates as set forth in Section 12A;

                  

                  (z)       
                    Section
                    12 of the Agreement is hereby amended by deleting the last paragraph
                    thereof.

                  

                  (aa)     Section
                    12 of the Agreement is hereby amended by inserting the following
                    section at the
                    end thereto:

                  

                  SECTION
                    12A Compliance
                    with Regulation AB.

                  

                  Subsection
                    12A.01. Intent
                    of the Parties; Reasonableness.
                    

                  

                  The
                    Purchaser, the Interim Servicer and the Seller acknowledge and
                    agree that the
                    purpose of Section 12A of this Agreement is to facilitate compliance
                    by the
                    Purchaser and any 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 Seller and the Interim Servicer acknowledge
                    that
                    investors in privately offered securities may require that the
                    Purchaser or any
                    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 Purchaser nor any
                    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 Seller
                    and the
                    Interim Servicer acknowledge that interpretations of the requirements
                    of
                    Regulation AB may change over time due to interpretive guidance
                    provided by the
                    Commission or its staff and agree to comply with requests made
                    by the Purchaser,
                    any Master Servicer or any Depositor in good faith for delivery
                    of information
                    under these provisions on the basis of evolving interpretations
                    of Regulation
                    AB. In connection with any Securitization Transaction, the Seller
                    and the
                    Interim Servicer shall cooperate fully with the Purchaser and
                    any Master
                    Servicer to deliver to the Purchaser (including any of its assignees
                    or
                    designees), any Master Servicer and any Depositor, any and all
                    statements,
                    reports, certifications, records and any other information necessary
                    in the good
                    faith determination of the Purchaser, the Master Servicer or
                    any Depositor to
                    permit the Purchaser, such Master Servicer or such Depositor
                    to comply with the
                    provisions of Regulation AB, together with such disclosures relating
                    to the
                    Seller, the Interim Servicer, any Subservicer, any Third-Party
                    Originator and
                    the Mortgage Loans, or the servicing of the Mortgage Loans, reasonably
                    believed
                    by the Purchaser or any Depositor to be necessary in order to
                    effect such
                    compliance. In the event of any conflict between Section 12A
                    and any other term
                    or provision in this Agreement, the provisions of Section 12A
                    shall
                    control.

                  

                  
                    
                      
                      

                    

                    
                      8

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  The
                    Purchaser (including any of its assignees or designees) shall
                    cooperate with the
                    Seller and the Interim Servicer by providing timely notice of
                    requests for
                    information under these provisions and by reasonably limiting
                    such requests to
                    information required, in the Purchaser’s reasonable judgment, to comply with
                    Regulation AB.

                  

                  Subsection
                    12A.02. Additional
                    Representations and Warranties of the Seller and the Interim
                    Servicer.

                  

                  (a) The
                    Seller or the Interim Servicer, as applicable, hereby represents
                    to the
                    Purchaser, to any Master Servicer and to any Depositor, as of
                    the date on which
                    information is first provided to the Purchaser, any Master Servicer
                    or any
                    Depositor under Subsection 12A.03 that, except as disclosed in
                    writing to the
                    Purchaser, such Master Servicer or such Depositor prior to such
                    date: (i) the
                    Interim 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
                    Interim Servicer;
                    (ii) the Interim 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 Interim
                    Servicer as
                    servicer has been disclosed or reported by the Interim Servicer;
                    (iv) no
                    material changes to the Interim Servicer policies or procedures
                    with respect to
                    the servicing function it will perform under this Agreement and
                    any
                    Reconstitution Agreement for mortgage loans of a type similar
                    to the Mortgage
                    Loans have occurred during the three-year period immediately
                    preceding the
                    related Securitization Transaction; (v) there are no aspects
                    of the Interim
                    Servicer’s financial condition that could have a material adverse effect
                    on the
                    performance by the Interim Servicer of its servicing obligations
                    under this
                    Agreement or any Reconstitution Agreement; (vi) there are no
                    material legal or
                    governmental proceedings pending (or known to be contemplated)
                    against the
                    Seller, the Interim Servicer, any Subservicer or any Third-Party
                    Originator; and
                    (vii) there are no affiliations, relationships or transactions
                    relating to the
                    Seller, the Interim Servicer, any Subservicer or any Third-Party
                    Originator with
                    respect to any Securitization Transaction and any party thereto
                    identified by
                    the related Depositor of a type described in Item 1119 of Regulation
                    AB.

                  
                    
                      
                      

                    

                    
                      9

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  

                  (b) If
                    so
                    requested by the Purchaser, any Master Servicer or any Depositor
                    on any date
                    following the date on which information is first provided to
                    the Purchaser, any
                    Master Servicer or any Depositor under Subsection 12A.03, the
                    Seller or the
                    Interim Servicer, as applicable, shall, within five (5) Business
                    Days following
                    such request, confirm in writing the accuracy of the representations
                    and
                    warranties set forth in paragraph (a) of this Subsection 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.

                  

                  Subsection
                    12A.03. Information
                    to Be Provided by the Seller and Interim Servicer.

                  

                  In
                    connection with any Securitization Transaction in which the Purchaser
                    reasonably
                    believes that the aggregate outstanding principal amount of the
                    Mortgage Loans
                    may comprise 20% or more of the aggregate principal amount of
                    any group of the
                    mortgage loans in such Securitization Transaction, or in the
                    case of information
                    requested pursuant to Item 1119, may comprise 10% or more, the
                    Seller or the
                    Interim Servicer, as applicable, shall (i) within five (5) Business
                    Days
                    following request by the Purchaser or any Depositor, provide
                    to the Purchaser
                    and such Depositor (or, as applicable, cause each Third-Party
                    Originator and
                    each Subservicer to provide), in writing and in form and substance
                    reasonably
                    satisfactory to the Purchaser and such Depositor, the information
                    and materials
                    specified in paragraphs (a), (b), (c) and (g) of this Subsection,
                    and (ii) as
                    promptly as practicable following notice to or discovery by the
                    Seller or the
                    Interim Servicer, provide to the Purchaser and any Depositor
                    (in writing and in
                    form and substance reasonably satisfactory to the Purchaser and
                    such Depositor)
                    the information specified in paragraph (d) of this Subsection.

                  

                  (a) If
                    so
                    requested by the Purchaser or any Depositor, the Seller or the
                    Interim Servicer,
                    as applicable, shall provide such information regarding (i) the
                    Seller, 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 Subservicer, 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;

                  

                  
                    
                      
                      

                    

                    
                      10

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  (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, in the good faith judgment
                    of the Purchaser or
                    any Depositor, 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
                    Purchaser or any Depositor may reasonably request for the purpose
                    of compliance
                    with Item 1110(b)(2) of Regulation AB;

                  

                  (C) a
                    description of any material legal or governmental proceedings
                    pending (or known
                    to be contemplated) against the Seller, each Third-Party Originator
                    and each
                    Subservicer; and

                  

                  (D) a
                    description of any affiliation or relationship between the Seller,
                    each
                    Third-Party Originator, each Subservicer and any of the following
                    parties to a
                    Securitization Transaction, as such parties are identified to
                    the Seller by the
                    Purchaser or any Depositor in writing in advance of such Securitization
                    Transaction:

                  

                  (1) the
                    sponsor;

                  (2) the
                    depositor;

                  (3) the
                    issuing entity;

                  (4) any
                    servicer;

                  (5) any
                    trustee;

                  (6) any
                    originator;

                  (7) any
                    significant obligor;

                  (8) any
                    enhancement or support provider; and

                  (9) any
                    other
                    material transaction party.

                  

                  (b) If
                    so
                    requested by the Purchaser or any Depositor, the Seller 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, as reasonably identified by the Purchaser as
                    provided below)
                    originated by (i) the Seller, if the Seller 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 Seller (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. To the extent that there is reasonably available
                    to the Seller
                    (or Third-Party Originator) Static Pool Information with respect
                    to more than
                    one mortgage loan type, the Purchaser or any Depositor shall
                    be entitled to
                    specify whether some or all of such information shall be provided
                    pursuant to
                    this paragraph. The content of such Static Pool Information may
                    be in the form
                    customarily provided by the Seller, and need not be customized
                    for the Purchaser
                    or any 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 one hundred thirty-five
                    (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
                    Purchaser or the Depositor, as applicable.

                  

                  
                    
                      
                      

                    

                    
                      11

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  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 Seller shall provide corrected Static Pool Information
                    to the
                    Purchaser or any Depositor, as applicable, in the same format
                    in which Static
                    Pool Information was previously provided to such party by the
                    Seller.

                  

                  If
                    so
                    requested by the Purchaser or any Depositor, the Seller 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
                    Purchaser 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
                    Seller’s or
                    Third-Party Originator’s originations or purchases, to calendar months
                    commencing January 1, 2006, as the Purchaser or such Depositor
                    shall reasonably
                    request. Such letters shall be addressed to and be for the benefit
                    of such
                    parties as the Purchaser or such Depositor shall designate, which
                    may include,
                    by way of example, any Sponsor, any Depositor and any broker
                    dealer acting as
                    underwriter, placement agent or initial purchaser with respect
                    to a
                    Securitization Transaction. 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 Purchaser
                    or such
                    Depositor.

                  

                  (c) If
                    so
                    requested by the Purchaser or any Depositor, the Interim Servicer
                    shall provide
                    such information regarding the Interim Servicer, as servicer
                    of the Mortgage
                    Loans, and each Subservicer (each of the Interim Servicer and
                    each Subservicer,
                    for purposes of this paragraph, a “Servicer”), as is requested for the purpose
                    of compliance with Items 1108, 1111, 1117 and 1119 of Regulation
                    AB. Such
                    information shall include, at a minimum:

                  

                  
                    
                      
                      

                    

                    
                      12

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  (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
                    and any Reconstitution Agreements; 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 Purchaser
                    or any
                    Depositor, to any analysis of the servicing of the Mortgage Loans
                    or the related
                    asset-backed securities, as applicable, including, without
                    limitation:

                  

                  (1) 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 related Securitization
                    Transaction;

                  

                  (2) the
                    extent of outsourcing the Servicer utilizes;

                  

                  (3) 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 related Securitization Transaction;

                  

                  (4) 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

                  

                  (5) such
                    other information as the Purchaser or any Depositor may reasonably
                    request for
                    the purpose of compliance with Item 1108(b)(2) of Regulation
                    AB;

                  

                  (C) a
                    description of any material changes during the three-year period
                    immediately
                    preceding the related Securitization Transaction to the Servicer’s policies or
                    procedures with respect to the servicing function it will perform
                    under this
                    Agreement and any Reconstitution Agreements for mortgage loans
                    of a type similar
                    to the Mortgage Loans;

                  

                  
                    
                      
                      

                    

                    
                      13

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  (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 Interim
                    Servicer of its servicing obligations under this Agreement or
                    any Reconstitution
                    Agreement;

                  

                  (E) information
                    regarding advances made by the Servicer on the Mortgage Loans
                    and the Servicer’s
                    overall servicing portfolio of residential mortgage loans for
                    the three-year
                    period immediately preceding the related Securitization Transaction,
                    which may
                    be limited to 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;

                  

                  (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;

                  

                  (I) a
                    description of any material legal or governmental proceedings
                    pending (or known
                    to be contemplated) against the Servicer; and

                  

                  (J) a
                    description of any affiliation or relationship between the Servicer
                    and any of
                    the following parties to a Securitization Transaction, as such
                    parties are
                    identified to the Servicer by the Purchaser or any Depositor
                    in writing in
                    advance of such Securitization Transaction:

                  

                  
                    
                      
                      

                    

                    
                      14

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  (1) the
                    sponsor;

                  (2) the
                    depositor;

                  (3) the
                    issuing entity;

                  (4) any
                    servicer;

                  (5) any
                    trustee;

                  (6) any
                    originator;

                  (7) any
                    significant obligor;

                  (8) any
                    enhancement or support provider; and

                  (9) any
                    other
                    material transaction party; and

                  

                  (K) 
                    historical delinquency information with respect to the Mortgage
                    Loans since
                    origination of the Mortgage Loans.

                  

                  (d) For
                    the
                    purpose of satisfying the reporting obligation under the Exchange
                    Act with
                    respect to any class of asset-backed securities, the Seller and
                    the Interim
                    Servicer shall (or shall cause each Subservicer and Third-Party
                    Originator to)
                    (i) provide prompt notice to the Purchaser, any Master Servicer
                    and any
                    Depositor in writing of (A) any material litigation or governmental
                    proceedings
                    involving the Seller, the Interim Servicer, any Subservicer or
                    any Third-Party
                    Originator, (B) any affiliations or relationships that develop
                    following the
                    closing date of a Securitization Transaction between the Seller,
                    the Interim
                    Servicer, any Subservicer or any Third-Party Originator and any
                    of the parties
                    specified in clause (D) of paragraph (a) of this Subsection (and
                    any other
                    parties identified in writing by the requesting party) with respect
                    to such
                    Securitization Transaction, (C) any Event of Default under the
                    terms of this
                    Agreement or any Reconstitution Agreement, (D) any merger, consolidation
                    or sale
                    of substantially all of the assets of the Seller or the Interim
                    Servicer, and
                    (E) the Seller’s or Interim Servicer’s entry into an agreement with a
                    Subservicer or Subcontractor to perform or assist in the performance
                    of any of
                    the Seller’s or Interim Servicer’s obligations under this Agreement or any
                    Reconstitution Agreement and (ii) provide to the Purchaser and
                    any Depositor a
                    description of such proceedings, affiliations or relationships.

                  

                  (e) As
                    a
                    condition to the succession to the Interim Servicer or any Subservicer
                    as
                    servicer or subservicer under this Agreement or any Reconstitution
                    Agreement by
                    any Person (i) into which the Interim Servicer or such Subservicer
                    may be merged
                    or consolidated, or (ii) which may be appointed as a successor
                    to the Interim
                    Servicer or any Subservicer, the Interim Servicer shall provide
                    to the Purchaser
                    and any Depositor, at least 15 calendar days prior to the effective
                    date of such
                    succession or appointment, (x) written notice to the Purchaser
                    and any Depositor
                    of such succession or appointment and (y) in writing and in form
                    and substance
                    reasonably satisfactory to the Purchaser and such Depositor,
                    all information
                    reasonably requested by the Purchaser or any Depositor in order
                    to comply with
                    its reporting obligation under Item 6.02 of Form 8-K with respect
                    to any class
                    of asset-backed securities.

                  

                  
                    
                      
                      

                    

                    
                      15

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  (f) In
                    addition to such information as the Interim Servicer, as servicer,
                    is obligated
                    to provide pursuant to other provisions of this Agreement, not
                    later than ten
                    days prior to the deadline for the filing of any distribution
                    report on Form
                    10-D in respect of any Securitization Transaction that includes
                    any of the
                    Mortgage Loans serviced by the Interim Servicer or any Subservicer,
                    the Interim
                    Servicer or such Subservicer, as applicable, shall provide to
                    the party
                    responsible for filing such report (including, if applicable,
                    the Master
                    Servicer) notice of the occurrence of any of the following events
                    along with all
                    information, data, and materials related thereto as may be required
                    to be
                    included in the related distribution report on Form 10-D (as
                    specified in the
                    provisions of Regulation AB referenced below):

                  

                  (i) any
                    material modifications, extensions or waivers of pool asset terms,
                    fees,
                    penalties or payments during the distribution period or that
                    have cumulatively
                    become material over time (Item 1121(a)(11) of Regulation AB);

                  

                  (ii) material
                    breaches of pool asset representations or warranties or transaction
                    covenants
                    (Item 1121(a)(12) of Regulation AB); and

                  

                  (iii) information
                    regarding new asset-backed securities issuances backed by the
                    same pool assets,
                    any pool asset changes (such as, additions, substitutions or
                    repurchases), and
                    any material changes in origination, underwriting or other criteria
                    for
                    acquisition or selection of pool assets (Item 1121(a)(14) of
                    Regulation
                    AB).

                  

                  (g) The
                    Interim Servicer shall provide to the Purchaser, any Master Servicer
                    and any
                    Depositor, such additional information as such party may reasonably
                    request,
                    including evidence of the authorization of the person signing
                    any certification
                    or statement, financial information and reports, and such other
                    information
                    related to the Interim Servicer or any Subservicer or the Interim
                    Servicer or
                    such Subservicer’s performance hereunder.

                  

                  Subsection
                    12A.04. Servicer
                    Compliance Statement.

                  

                  On
                    or
                    before March 1 of each calendar year, commencing in 2007, provided
                    that the
                    Interim Servicer has serviced the Mortgage Loans for a period
                    of time during the
                    immediately preceding calendar year, the Interim Servicer shall
                    deliver to the
                    Purchaser, any Master Servicer and any Depositor a statement
                    of compliance
                    addressed to the Purchaser, such Master Servicer and such Depositor
                    and signed
                    by an authorized officer of the Interim Servicer, to the effect
                    that (i) a
                    review of the Interim Servicer’s activities during the immediately preceding
                    calendar year (or applicable portion thereof) and of its performance
                    under this
                    Agreement and any applicable Reconstitution 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 Interim Servicer has fulfilled
                    all of its obligations under this Agreement and any applicable
                    Reconstitution
                    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. In the event
                    that the Seller
                    or the Interim Servicer has delegated a certain servicing responsibility
                    in its
                    entirety with respect to the Mortgage Loans to a Subservicer,
                    the Seller or
                    Interim Servicer shall deliver a statement of compliance from
                    such Subservicer
                    as and when such statement is required under this Subsection
                    12A.04 in lieu of
                    providing the Interim Servicer’s statement of compliance for such delegated
                    servicing activity.

                  

                  
                    
                      
                      

                    

                    
                      16

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  Subsection
                    12A.05. Report
                    on Assessment of Compliance and Attestation.

                  

                  (a) On
                    or
                    before March 1 of each calendar year, commencing in 2007, provided
                    that the
                    Interim Servicer has serviced the Mortgage Loans for a period
                    of time during the
                    immediately preceding calendar year, the Interim Servicer shall:

                  

                  (i) deliver
                    to the Purchaser, any Master Servicer and any Depositor a report
                    (in form and
                    substance reasonably satisfactory to the Purchaser, such Master
                    Servicer and
                    such Depositor) regarding the Interim 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 addressed to the Purchaser,
                    such Master
                    Servicer and such Depositor and signed by an authorized officer
                    of the Interim
                    Servicer, and shall address each of the “Applicable Servicing Criteria”
specified on Exhibit 13 hereto;

                  

                  (ii) deliver
                    to the Purchaser, any Master Servicer and any Depositor a report
                    of a registered
                    public accounting firm reasonably acceptable to the Purchaser,
                    such Master
                    Servicer and such Depositor that attests to, and reports on,
                    the assessment of
                    compliance made by the Interim 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;

                  

                  (iii) cause
                    each Subservicer, and each Subcontractor determined by the Interim
                    Servicer
                    pursuant to Subsection 12A.06(b) to be “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB, to deliver
                    to the Purchaser,
                    any Master Servicer and any Depositor an assessment of compliance
                    and
                    accountants’ attestation as and when provided in paragraphs (a) and (b) of
                    this
                    Subsection; and

                  

                  
                    
                      
                      

                    

                    
                      17

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  (iv) if
                    requested by the Purchaser, any Depositor or any Master Servicer
                    not later than
                    February 1 of the calendar year in which such certification is
                    to be delivered,
                    deliver to the Purchaser, any Depositor, any Master Servicer
                    and any other
                    Person that will be responsible for signing the certification
                    (a “Sarbanes
                    Certification”) required by Rules 13a-14(d) and 15d-14(d) under the Exchange
                    Act
                    (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) on
                    behalf of an
                    asset-backed issuer with respect to a Securitization Transaction
                    a
                    certification, signed by the appropriate officer of the Interim
                    Servicer, in the
                    form attached hereto as Exhibit 12.

                  

                  The
                    Interim Servicer acknowledges that the parties identified in
                    clause (a)(iv)
                    above may rely on the certification provided by the Interim Servicer
                    pursuant to
                    such clause in signing a Sarbanes Certification and filing such
                    with the
                    Commission. Neither the Purchaser, any Depositor or any Master
                    Servicer will
                    request delivery of a certification under clause (a)(iv) above
                    unless a
                    Depositor is required under the Exchange Act to file an annual
                    report on Form
                    10-K with respect to an issuing entity whose asset pool includes
                    Mortgage
                    Loans.

                  

                  (b) Each
                    assessment of compliance provided by a Subservicer pursuant to
                    Subsection
                    12A.05(a)(i) shall address each of the Servicing Criteria specified
                    on a
                    certification substantially in the form of Exhibit 12 hereto
                    delivered to the
                    Purchaser concurrently with the execution of this Agreement or,
                    in the case of a
                    Subservicer subsequently appointed as such, on or prior to the
                    date of such
                    appointment. An assessment of compliance provided by a Subcontractor
                    pursuant to
                    Subsection 12A.05(a)(iii) need not address any elements of the
                    Servicing
                    Criteria other than those specified by the Interim Servicer pursuant
                    to
                    Subsection 12A.06.

                  

                  Subsection
                    12A.06. Use
                    of
                    Subservicers and Subcontractors.

                  

                  The
                    Interim Servicer shall not hire or otherwise utilize the services
                    of any
                    Subservicer to fulfill any of the obligations of the Interim
                    Servicer as
                    servicer under this Agreement or any Reconstitution Agreement
                    unless the Interim
                    Servicer complies with the provisions of paragraph (a) of this
                    Subsection. The
                    Interim Servicer shall not hire or otherwise utilize the services
                    of any
                    Subcontractor, and shall not permit any Subservicer to hire or
                    otherwise utilize
                    the services of any Subcontractor, to fulfill any of the obligations
                    of the
                    Interim Servicer as servicer under this Agreement or any Reconstitution
                    Agreement unless the Interim Servicer complies with the provisions
                    of paragraph
                    (b) of this Subsection.

                  

                  
                    
                      
                      

                    

                    
                      18

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  (a) It
                    shall
                    not be necessary for the Interim Servicer to seek the consent
                    of the Purchaser,
                    any Master Servicer or any Depositor to the utilization of any
                    Subservicer. The
                    Interim Servicer shall cause any Subservicer used by the Interim
                    Servicer (or by
                    any Subservicer) for the benefit of the Purchaser and any Depositor
                    to comply
                    with the provisions of this Subsection and with Subsections 12A.02,
                    12A.03(c),
                    (e), (f) and (g), 12A.04, 12A.05 and 12A.07 of this Agreement
                    to the same extent
                    as if such Subservicer were the Interim Servicer, and to provide
                    the information
                    required with respect to such Subservicer under Subsection 12A.03(d)
                    of this
                    Agreement. The Interim Servicer shall be responsible for obtaining
                    from each
                    Subservicer and delivering to the Purchaser and any Depositor
                    any servicer
                    compliance statement required to be delivered by such Subservicer
                    under
                    Subsection 12A.04, any assessment of compliance and attestation
                    required to be
                    delivered by such Subservicer under Subsection 12A.05 and any
                    certification
                    required to be delivered to the Person that will be responsible
                    for signing the
                    Sarbanes Certification under Subsection 12A.05 as and when required
                    to be
                    delivered.

                  

                  (b) It
                    shall
                    not be necessary for the Interim Servicer to seek the consent
                    of the Purchaser,
                    any Master Servicer or any Depositor to the utilization of any
                    Subcontractor.
                    The Interim Servicer shall promptly upon request provide to the
                    Purchaser, any
                    Master Servicer and any Depositor (or any designee of the Depositor,
                    such as an
                    administrator) a written description (in form and substance satisfactory
                    to the
                    Purchaser, such Depositor and such Master Servicer) of the role
                    and function of
                    each Subcontractor utilized by the Interim Servicer or any Subservicer,
                    specifying (i) the identity of each such Subcontractor, (ii)
                    which (if any) of
                    such Subcontractors are “participating in the servicing function” within the
                    meaning of Item 1122 of Regulation AB, and (iii) which elements
                    of the Servicing
                    Criteria will be addressed in assessments of compliance provided
                    by each
                    Subcontractor identified pursuant to clause (ii) of this paragraph.

                  

                  (c) 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 Interim Servicer shall cause any such Subcontractor
                    used by
                    the Interim Servicer (or by any Subservicer) for the benefit
                    of the Purchaser
                    and any Depositor to comply with the provisions of Subsections
                    12A.05 and 12A.07
                    of this Agreement to the same extent as if such Subcontractor
                    were the Interim
                    Servicer. The Interim Servicer shall be responsible for obtaining
                    from each
                    Subcontractor and delivering to the Purchaser and any Depositor
                    any assessment
                    of compliance and attestation required to be delivered by such
                    Subcontractor
                    under Subsection 12A.05, in each case as and when required to
                    be
                    delivered.

                  

                  
                    
                      
                      

                    

                    
                      19

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  Subsection
                    12A.07. Indemnification;
                    Remedies.

                  

                  (a) The
                    Interim Servicer and the Seller shall jointly and severally indemnify
                    the
                    Purchaser, each affiliate of the Purchaser, and each of the following
                    parties
                    participating in a Securitization Transaction: each sponsor and
                    issuing entity;
                    each Person (including, but not limited to, any Master Servicer
                    if applicable)
                    responsible for the preparation, execution or filing of any report
                    required to
                    be filed with the Commission with respect to such Securitization
                    Transaction, 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 Securitization Transaction;
                    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,
                    agents and
                    affiliates of each of the foregoing and of the Depositor (each,
                    an “Indemnified
                    Party”), and shall hold each of them harmless from and against any
                    claims,
                    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 information, report, certification, data, accountants’ letter or other
                    material provided in written or electronic form under this Section
                    12A by or on
                    behalf of the Seller or the Interim Servicer, or provided under
                    this Section 12A
                    by or on behalf of any Subservicer, Subcontractor or Third-Party
                    Originator
                    (collectively, the “Seller Information”), or (B) the omission or alleged
                    omission to state in the Seller Information a material fact required
                    to be
                    stated in the Seller 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 Seller Information
                    and not to any
                    other information communicated in connection with a sale or purchase
                    of
                    securities, without regard to whether the Seller Information
                    or any portion
                    thereof is presented together with or separately from such other
                    information;

                  

                  (ii) any
                    breach by the Seller or the Interim Servicer of its obligations
                    under this
                    Section 12A, including particularly any failure by the Seller,
                    the Interim
                    Servicer, any Subservicer, any Subcontractor or any Third-Party
                    Originator to
                    deliver any information, report, certification, accountants’ letter or other
                    material when and as required under this Section 12A, including
                    any failure by
                    the Interim Servicer to identify pursuant to Subsection 12A.06(b)
                    any
                    Subcontractor “participating in the servicing function” within the meaning of
                    Item 1122 of Regulation AB; 

                  

                  
                    
                      
                      

                    

                    
                      20

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  (iii) any
                    breach by the Interim Servicer of a representation or warranty
                    set forth in
                    Subsection 12A.02(a) or in a writing furnished pursuant to Subsection
                    12A.02(b)
                    and made as of a date prior to the closing date of the related
                    Securitization
                    Transaction, to the extent that such breach is not cured by such
                    closing date,
                    or any breach by the Seller or the Interim Servicer of a representation
                    or
                    warranty in a writing furnished pursuant to Subsection 12A.02(b)
                    to the extent
                    made as of a date subsequent to such closing date; or

                  

                  (iv) (A)
                    with
                    respect to the delivery of any certification or
                    report required under Subsections 12A.04 or 12A.05, the negligence,
                    bad faith or willful misconduct of the Seller or the Interim
                    Servicer and (B)
                    with respect to all other obligations of the Seller or the
                    Interim Servicer pursuant to this Section 12A, the gross
                    negligence, bad faith or willful misconduct of the Seller or
                    Interim
                    Servicer.

                  

                  If
                    the
                    indemnification provided for herein is unavailable or insufficient
                    to hold
                    harmless an Indemnified Party, then the Seller and the Interim
                    Servicer agree
                    that they shall contribute to the amount paid or payable by such
                    Indemnified
                    Party as a result of any claims, losses, damages or liabilities
                    incurred by such
                    Indemnified Party in such proportion as is appropriate to reflect
                    the relative
                    fault of such Indemnified Party on the one hand and the Seller
                    or the Interim
                    Servicer, as applicable, on the other. 

                  

                  In
                    the
                    case of any failure of performance described in clause (a)(ii)
                    of this
                    Subsection, the Seller or the Interim Servicer, as applicable,
                    shall promptly
                    reimburse the Purchaser, any 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 such Securitization
                    Transaction, 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 Securitization 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 Seller, the Interim Servicer, any Subservicer,
                    any Subcontractor
                    or any Third-Party Originator.

                  

                  This
                    indemnification shall survive the termination of this Agreement
                    or the
                    termination of any party to this Agreement.

                  

                  (b) (i) Any
                    failure by the Seller, the Interim Servicer, any Subservicer,
                    any Subcontractor
                    or any Third-Party Originator to deliver any information, report,
                    certification,
                    accountants’ letter or other material when and as required under this Section
                    12A, or any breach by the Interim Servicer of a representation
                    or warranty set
                    forth in Subsection 12A.02(a) or in a writing furnished pursuant
                    to Subsection
                    12A.02(b) and made as of a date prior to the closing date of
                    the related
                    Securitization Transaction, to the extent that such breach is
                    not cured by such
                    closing date, or any breach by the Interim Servicer of a representation
                    or
                    warranty in a writing furnished pursuant to Subsection 12A.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 Seller or the
                    Interim Servicer under this Agreement and any applicable Reconstitution
                    Agreement, and shall entitle the Purchaser, any Master Servicer
                    or any
                    Depositor, as applicable, in its sole discretion to terminate
                    the rights and
                    obligations of the Interim Servicer as servicer under this Agreement
                    and/or any
                    applicable Reconstitution Agreement without payment (notwithstanding
                    anything in
                    this Agreement or any applicable Reconstitution Agreement to
                    the contrary) of
                    any compensation to the Interim Servicer; provided that to the
                    extent that any
                    provision of this Agreement and/or any applicable Reconstitution
                    Agreement
                    expressly provides for the survival of certain rights or obligations
                    following
                    termination of the Interim Servicer as servicer, such provision
                    shall be given
                    effect.

                  
                    
                      
                      

                    

                    
                      21

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  

                  (ii) Any
                    failure by the Interim Servicer, any Subservicer or any Subcontractor
                    to deliver
                    any information, report, certification or accountants’ letter when and as
                    required under Subsections 12A.04 or 12A.05, including (except
                    as provided in
                    the following paragraph) any failure by the Interim Servicer
                    to identify
                    pursuant to Subsection 12A.06(b) any Subcontractor “participating in the
                    servicing function” within the meaning of Item 1122 of Regulation AB, which
                    continues unremedied for ten (10) 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 Interim
                    Servicer under this Agreement and any applicable Reconstitution
                    Agreement, and
                    shall entitle the Purchaser, any Master Servicer or any Depositor,
                    as
                    applicable, in its sole discretion to terminate the rights and
                    obligations of
                    the Interim Servicer as servicer under this Agreement and/or
                    any applicable
                    Reconstitution Agreement without payment (notwithstanding anything
                    in this
                    Agreement to the contrary) of any compensation to the Interim
                    Servicer; provided
                    that to the extent that any provision of this Agreement and/or
                    any applicable
                    Reconstitution Agreement expressly provides for the survival
                    of certain rights
                    or obligations following termination of the Interim Servicer
                    as servicer, such
                    provision shall be given effect.

                  

                  Neither
                    the Purchaser nor any Depositor shall be entitled to terminate
                    the rights and
                    obligations of the Interim Servicer pursuant to this subparagraph
                    (b)(ii) if a
                    failure of the Interim 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.

                  
                    
                      
                      

                    

                    
                      22

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  

                  (iii) The
                    Interim Servicer shall promptly reimburse the Purchaser (or any
                    designee of the
                    Purchaser, such as a master servicer) and any Depositor, as applicable,
                    for all
                    reasonable expenses incurred by the Purchaser (or such designee)
                    or such
                    Depositor, as such are incurred, in connection with the termination
                    of the
                    Interim 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 Purchaser or any Depositor may have under
                    other provisions
                    of this Agreement and/or any applicable Reconstitution Agreement
                    or otherwise,
                    whether in equity or at law, such as an action for damages, specific
                    performance
                    or injunctive relief.

                  

                  (bb) Subsection
                    14.01(ix) of the Agreement is hereby amended by deleting the
                    phrase “Sections
                    11.23, 11.24 or 11.34” in its entirety and replacing it with the phrase
“Subsections 11.23, 11.24, 12A.04 or 12A.05”.

                  

                  (cc) The
                    last
                    sentence of Section 16 of the Agreement is hereby amended (i)
                    by deleting the
                    words “Subsection 7.03 or 7.04” in their entirety and replacing them with the
                    words “Subsection 7.03, 7.04 or 7.05” and (ii) by deleting the words
“Subsections 7.01, 7.02, 7.03 and 7.04” in their entirety and replacing them
                    with the words “Subsections 7.01, 7.02, 7.03, 7.04 and 7.05”

                  

                  (dd) Section
                    24 of the Agreement is hereby amended by deleting the words “Subsection 7.03 or
                    7.04” in the fourth sentence thereof in their entirety and replacing
                    them with
                    the words “Subsection 7.03, 7.04 or 7.05.”

                  

                  (ee) The
                    Agreement is hereby amended by adding the following
                    as Section 33:

                  

                  SECTION
                    33. Third Party Beneficiary. For purposes of the Agreement, including
                    but not
                    limited to Subsection 11.27 and Section 12A, any Master Servicer
                    shall be
                    considered a third party beneficiary to the Agreement entitled
                    to all the rights
                    and benefits accruing to any Master Servicer herein as if it
                    were a direct party
                    to this Agreement.

                  

                  (ff) Exhibit
                    1
                    to the Agreement is hereby amended by adding the following new
                    paragraph 9
                    immediately following paragraph 8 thereof:

                  

                  9. Each
                    person whose name, title and signature appears on Attachment
                    V
                    hereto
                    is duly authorized to execute on behalf of the Company any and
                    all documents in
                    connection with the sale and servicing of the Mortgage Loans
                    in accordance with
                    the Purchase Agreement.

                  

                  (gg) The
                    first
                    paragraph of Subsection 11.01 of the Agreement is hereby amended
                    by (i)
                    inserting the phrase “or through the utilization of a Subservicer or a
                    Subcontractor” immediately after the phrase “and shall have full power and
                    authority, acting alone” and (ii) inserting the following sentence at the end
                    thereto: “The Interim Servicer shall be responsible for any and all acts
                    of a
                    Subservicer and a Subcontractor, and the Interim Servicer’s utilization of a
                    Subservicer or a Subcontractor shall in no way relieve the liability
                    of the
                    Interim Servicer under this Agreement.”

                  
                    
                      
                      

                    

                    
                      23

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  

                  (hh) Exhibit
                    8
                    to the Agreement is hereby amended by deleting the third paragraph
                    of Subsection
                    11.01 thereto in its entirety and replacing it with the following:

                  

                  Notwithstanding
                    anything in this Agreement to the contrary, in the event of a
                    Principal
                    Prepayment in full or in part of a Mortgage Loan, the Interim
                    Servicer may not
                    waive any Prepayment Charge or portion thereof required by the
                    terms of the
                    related Mortgage Note unless (i) the Interim Servicer determines
                    that such
                    waiver would maximize recovery of Liquidation Proceeds for such
                    Mortgage Loan,
                    taking into account the value of such Prepayment Charge and the
                    Mortgage Loan,
                    and the waiver of such Prepayment Charge is standard and customary
                    in servicing
                    similar Mortgage Loans (including the waiver of a Prepayment
                    Charge in
                    connection with a refinancing of the Mortgage Loan related to
                    a default or a
                    reasonably foreseeable default) or (ii) (A) the enforceability
                    thereof is
                    limited (1) by bankruptcy, insolvency, moratorium, receivership,
                    or other
                    similar law relating to creditors’ rights or (2) due to acceleration in
                    connection with a foreclosure or other involuntary payment, or
                    (B) the
                    enforceability is otherwise limited or prohibited by subsequent
                    changes in
                    applicable law. In no event shall the Interim Servicer waive
                    a Prepayment Charge
                    in connection with a refinancing of a Mortgage Loan that is not
                    related to a
                    default or a reasonably foreseeable default. If the Interim Servicer
                    waives or
                    does not collect all or a portion of a Prepayment Charge relating
                    to a Principal
                    Prepayment in full or in part due to any action or omission of
                    the Interim
                    Servicer, other than as provided above, the Interim Servicer
                    shall deposit the
                    amount of such Prepayment Charge (or such portion thereof as
                    had been waived for
                    deposit) into the Custodial Account at the time of such prepayment
                    for
                    distribution in accordance with the terms of this Agreement.

                   

                  (ii) Exhibit
                    8
                    to the Agreement is hereby amended by deleting the second and
                    third sentences of
                    Subsection 11.10 in their entirety thereof and replacing them
                    with the
                    following:

                  

                  “If
                    the
                    Mortgaged Property is in an area identified on a Flood Hazard
                    Boundary Map or
                    Flood Insurance Rate Map issued by the Flood Emergency Management
                    Agency as
                    having special flood hazards and such flood insurance has been
                    made available,
                    the Interim Servicer will cause to be maintained a flood insurance
                    policy
                    meeting the requirements of the current guidelines of the Federal
                    Insurance
                    Administration with a generally acceptable insurance carrier,
                    in an amount
                    representing coverage not less than the greater of (i) the lesser
                    of (a) the
                    outstanding principal balance of the Mortgage Loan (plus any
                    additional amount
                    required to prevent the Mortgagor from being deemed a co-insurer)
                    or (b) the
                    amount necessary to fully compensate for any damage or loss to
                    the improvements
                    which are a part of such property on a replacement cost basis,
                    or (ii) the
                    maximum amount of insurance which is available under the National
                    Flood
                    Insurance Act of 1968 or the Flood Disaster Protection Act of
                    1973, as amended.
                    The Seller also shall maintain on any REO Property, fire and
                    hazard insurance
                    with extended coverage 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
                    Interest Rate and related Servicing Advances, liability insurance
                    and flood
                    insurance in an amount which is at least equal to the greater
                    of (i) the lesser
                    of (a) the outstanding principal balance of the Mortgage Loan
                    (plus any
                    additional amount required to prevent the Mortgagor from being
                    deemed a
                    co-insurer), or (b) the amount necessary to fully compensate
                    for any damage or
                    loss to the improvements which are a part of such property on
                    a replacement cost
                    basis, or (ii) the maximum amount of insurance which is available
                    under the
                    National Flood Insurance Act of 1968 or the Flood Disaster Protection
                    Act of
                    1973, as amended.”

                  
                    
                      
                      

                    

                    
                      24

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  

                  (jj) Subsection
                    11.14 of the Agreement is hereby amended by deleting the second
                    paragraph
                    thereto in its entirety and replacing it with the following:

                  

                  All
                    distributions made to the Purchaser on each Distribution Date
                    will be made to
                    the Purchaser of record on the preceding Record Date, and shall
                    be based on the
                    Mortgage Loans owned and held by the Purchaser, and shall be
                    made by wire
                    transfer of immediately available funds in accordance with the
                    following wire
                    transfer instructions:

                  

                    
                      	
                              DB
                                STRUCTURED PRODUCTS

                            	 
	
                              BANK:
                                

                            	
                              BANK
                                OF NEW YORK

                            
	
                              ABA:
                                

                            	
                              021000018

                            
	
                              ACCT
                                #: 

                            	
                              GLA/111569

                            
	
                              ACCT
                                NAME: 

                            	
                              DPX

                            
	
                              ATTN:
                                

                            	
                              Rob
                                Barreto

                            
	
                              RE: 

                            	
                              NC
                                CAPITAL CORPORATION

                            

                    

                  

                  

                  (kk) Subsection
                    11.15 of the Agreement is hereby amended by deleting the first
                    sentence thereof
                    and replacing it with the following: 

                  

                  No
                    later
                    than the fifth Business Day of each month, the Interim Servicer
                    shall furnish to
                    the Purchaser or its designee an electronic (which shall be provided
                    in Excel
                    format and delivered via email to DBWholeLoanOps@List.Db.com)
                    and a hard copy of
                    the monthly data in the form of report attached hereto as Exhibit
                    11.

                  

                  (ll) Subsection
                    11.24 of Exhibit 8 of the Agreement is hereby amended by deleting
                    the last
                    paragraph in its entirety and replacing it with the following:

                  

                  
                    
                      
                      

                    

                    
                      25

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  Notwithstanding
                    the foregoing, the Interim Servicer’s obligation to deliver a USAP Report under
                    this Subsection, as to the Interim Servicer or any Subservicer,
                    as to any
                    calendar year, beginning with the report required in March 2007,
                    shall be
                    satisfied if an assessment of compliance and attestation report
                    is delivered in
                    compliance with Subsection 12A.05 for such calendar year with
                    respect to that
                    entity.

                  

                  (mm) Exhibit
                    1
                    of the Agreement is hereby amended by appending a new Attachment
                    V thereto in
                    the form of Attachment
                    I
                    hereto.

                  

                  (nn) The
                    Agreement is hereby amended by deleting Exhibit 11 in its entirety
                    and inserting
                    Exhibit 11 in the form of Annex
                    A
                    attached
                    hereto.

                  

                  (oo) The
                    Agreement is hereby amended by deleting Exhibit 12 in its entirety
                    and inserting
                    Exhibit 12 in the form of Annex
                    B
                    attached
                    hereto .

                  

                  (pp) The
                    Agreement is hereby amended by inserting Exhibit 13 in the form
                    of Annex
                    C
                    attached
                    hereto at the end thereto.

                  

                  (qq) The
                    Agreement is hereby amended by deleting all references to “Pass-Through
                    Transfer” in its entirety and replacing it with “Securitization
                    Transaction”.

                  

                  (rr) The
                    Agreement is hereby amended by deleting all references to “Sub-Servicer” in its
                    entirety and replacing it with “Subservicer”

                  

                  SECTION
                    2. Defined
                    Terms.
                    Any
                    terms capitalized but not otherwise defined herein shall have
                    the respective
                    meanings set forth in the Agreement.

                  

                  SECTION
                    3. Limited
                    Effect.
                    Except
                    as amended hereby, the Agreement shall continue in full force
                    and effect in
                    accordance with its terms. Reference to this Amendment need not
                    be made in the
                    Agreement or any other instrument or document executed in connection
                    therewith,
                    or in any certificate, letter or communication issued or made
                    pursuant to, or
                    with respect to, the Agreement, any reference in any of such
                    items to the
                    Agreement being sufficient to refer to the Agreement as amended
                    hereby. This
                    Amendment Number Three shall apply to all Mortgage Loans subject
                    to the
                    Agreement notwithstanding that any such Mortgage Loans were purchased
                    prior to
                    the date of this Amendment Number Three

                  

                  SECTION
                    4. Governing
                    Law.
                    This
                    Amendment Number Three shall be construed in accordance with
                    the laws of the
                    State of New York and the obligations, rights, and remedies of
                    the parties
                    hereunder shall be determined in accordance with such laws without
                    regard to
                    conflict of laws doctrine applied in such state (other than Section
                    5-1401 or
                    5-1402 of the New York General Obligations Law).

                  

                  
                    
                      
                      

                    

                    
                      26

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  SECTION
                    5. Counterparts.
                    This
                    Amendment Number Three may be executed by each of the parties
                    hereto on any
                    number of separate counterparts, each of which shall be an original
                    and all of
                    which taken together shall constitute one and the same instrument.
                    An executed
                    counterpart signature page delivered by facsimile shall have
                    the same binding
                    effect as an original signature page.

                   

                  [SIGNATURE
                    PAGE TO FOLLOW]

                  

                  
                    
                      
                      

                    

                    
                      27

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  IN
                    WITNESS WHEREOF, the Seller and the Purchaser have caused this
                    Amendment Number
                    Three to be executed and delivered by their duly authorized officers
                    as of the
                    day and year first above written.

                  

                  

                  NC
                    CAPITAL CORPORATION

                  (Seller)

                  

                  

                  By:___________________________

                  Name:_________________________

                  Title:__________________________

                  

                  

                  NEW
                    CENTURY MORTGAGE CORPORATION

                  (Interim
                    Servicer)

                  
 

                  
                    By:___________________________

                    Name:_________________________

                    Title:__________________________

                     

                  

                  

                  DB
                    STRUCTURED PRODUCTS, INC.

                  (Purchaser)

                  

                  

                  By:___________________________

                  Name:_________________________

                  Title:__________________________     

                  

                  By:___________________________

                  Name:_________________________

                  Title:__________________________

                   

                

              

            

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          ATTACHMENT
            I

           

          ATTACHMENT
            V

           

          AUTHORIZED
            SIGNATORIES

          

            
              	
                      Name

                    	 	
                      Title

                    	 	
                      Signature

                    

            

             

            
              	
                       

                    	 	 	 	 
	 	 	 	 	 

            

            
              
                	
                         

                      	 	 	 	 
	 	 	 	 	 

              

            

          

          
            
              	
                       

                    	 	 	 	 
	 	 	 	 	 

            

            
              
                	
                         

                      	 	 	 	 
	 	 	 	 	 

              

              
                
                  	
                           

                        	 	 	 	 
	 	 	 	 	 

                

                
                  
                    	
                             

                          	 	 	 	 
	 	 	 	 	 

                  

                  
                    
                      	
                               

                            	 	 	 	 
	 	 	 	 	 

                    

                     

                  

                

              

            

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          ANNEX
            A

          

          EXHIBIT
            11

          FORM
            OF
            MONTHLY SERVICER’S REPORT

          
            	
                    Field

                  	
                    Description

                  
	
                    SELLER

                  	
                    Name
                      of Seller (available from "Seller Management" module under
                      "Code" field,
                      required field)

                  
	
                    ME_AS_OF_DATE

                  	
                    Cut
                      off date of report (required field)

                  
	
                    INV_NUMBER

                  	
                    Investor
                      Number 

                  
	
                    SERVICER_ID

                  	
                    Servicer
                      loan number

                  
	
                    SELLER_LOANID

                  	
                    Seller
                      loan number (required field)

                  
	
                    CUSIP

                  	
                    DB
                      Cusip number

                  
	
                    LNAME

                  	
                    Last
                      name of borrower

                  
	
                    FNAME

                  	
                    First
                      name of borrower

                  
	
                    DATE_TRADE_FUND

                  	
                    Date
                      of loan's funding with DB, I.e. date that Deutsche Bank bought
                      the loan
                      from the seller

                  
	
                    INTEREST_RATE

                  	
                    Gross
                      interest rate on loan as of end of month being reported

                  
	
                    NET_INTEREST_RATE

                  	
                    Net
                      interest rate on loan as of end of month being reported

                  
	
                    PRIN_INT_PYMT

                  	
                    P&I
                      on loan as of end of month being reported

                  
	
                    LIEN

                  	
                    Lien
                      of the loan

                  
	
                    IO_FLAG

                  	
                    Optional:
                      Y/N flag for Interest-Only loans (where applicable)

                  
	
                    BEG_UPB_ACT

                  	
                    Beginning
                      actual balance

                  
	
                    BEG_UPB_SCH

                  	
                    Beginning
                      scheduled balance

                  
	
                    END_UPB_ACT

                  	
                    Ending
                      actual balance

                  
	
                    END_UPB_SCH

                  	
                    Ending
                      scheduled balance

                  
	
                    PAID_THRU_DATE

                  	
                    Paid
                      through date of the loan (required field)

                  
	
                    NEXT_DUE_DATE

                  	
                    Next
                      due date at end of month being reported (required
                      field)

                  
	
                    DAYS_DELQ

                  	
                    Days
                      delinquent at end of month being reported

                  
	
                    PIF_DATE

                  	
                    Payoff
                      date (required field)

                  
	
                    PRIN_AMT_ACT

                  	
                    Actual
                      collected principal remitted to DB

                  
	
                    PRIN_AMT_SCH

                  	
                    Scheduled
                      principal remitted to DB

                  
	
                    CURTAILMENT

                  	
                    Curtailment
                      remitted to DB (required field)

                  
	
                    INT_AMT_ACT

                  	
                    Actual
                      collected interest remitted to DB

                  
	
                    INT_AMT_SCH

                  	
                    Scheduled
                      interest remitted to DB

                  
	
                    PREPAY_PENALTY_AMT

                  	
                    PPP
                      remitted to DB

                  
	
                    SERVICE_FEE_SCH

                  	
                    Service
                      fee charged per loan for the month being reported on a scheduled
                      pool

                  
	
                    SERVICE_FEE_ACT

                  	
                    Service
                      fee charged per loan for the month being reported on a actual
                      pool

                  
	
                    STATUS

                  	
                    Status
                      of loan as of end of month being reported; "BKCY" = loan is
                      in bankruptcy
                      (chapter given by "BKCY_CHAPTER" field; "FBRE" = loan is on
                      a forbearance
                      plan; "FCLS" = loan is in foreclosure; "REO" = loan is in REO
                      (required
                      field)

                  
	
                    BKCY_CHAPTER

                  	
                    Bankruptcy
                      chapter filed

                  
	
                    BKCY_START_DATE

                  	
                    Bankruptcy
                      start date

                  
	
                    FCLS_START_DATE

                  	
                    Foreclosure
                      start date

                  
	
                    REO_TRANSFER_DATE

                  	
                    REO
                      transfer date

                  
	
                    MISC_ADJ1

                  	
                    Loan
                      level breakdown of any miscellaneous adjustment

                  
	
                    COMMENT1

                  	
                    Comment
                      describing nature of misc_adj1

                  
	
                    NON_CASH_MISC_ADJ1

                  	
                    Loan
                      level breakdown of any non cash miscellaneous
                      adjustment

                  

          

          
            
              
              

            

            
              30

              
                

              

            

            
              
              

            

          

          

          
            	
                    COMMENT1

                  	
                    Comment
                      describing nature of non cash misc_adj1

                  
	
                    MISC_ADJ2

                  	
                    Loan
                      level breakdown of any miscellaneous adjustment

                  
	
                    COMMENT2

                  	
                    Comment
                      describing nature of misc_adj2

                  
	
                    NON_CASH_MISC_ADJ2

                  	
                    Loan
                      level breakdown of any non cash miscellaneous
                      adjustment

                  
	
                    COMMENT2

                  	
                    Comment
                      describing nature of non cash misc_adj1

                  
	
                    TOT_REMIT

                  	
                    Loan
                      level total amount remitted to DB

                  
	
                    [NEG_AM]

                  	
                    [Amount
                      of Negative Amortization, if any]

                  

          

          

          
            
              
              

            

            
              31

              
                

              

            

            
              
              

            

          

          ANNEX
            B

          

          EXHIBIT
            12

          FORM
            OF
            BACK-UP CERTIFICATION

          

          I
            am the
            _______________________ of NC CAPITAL CORPORATION and, in such capacity,
            the
            officer in charge of the Seller’s responsibility on Exhibit 13 to the Agreement.
            I hereby certify to [the Purchaser], [the Depositor], and the [Master
            Servicer]
            [Securities Administrator] [Trustee], and their officers, with the knowledge
            and
            intent that they will rely upon this certification, that:

          

          (i) I
            have
            reviewed the servicer compliance statement of the Seller provided in
            accordance
            with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
            assessment of the Seller’s 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 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 other data,
            servicing reports, officer’s certificates and information relating to the
            performance of the Seller under the terms of the Agreement during 200[
            ] that
            were delivered to the [Depositor] [Master Servicer] [Securities Administrator]
            [Trustee] pursuant to the Agreement (collectively, the “Seller Servicing
            Information”);

          

          (ii) Based
            on
            my knowledge, the reports and information comprising the Seller 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 as of the period covered by or the date of such reports
            or
            information or the date of this certification;

          

          (iii) Based
            on
            my knowledge, all of the Seller Servicing Information required to be
            provided by
            the Seller under the Agreement has been provided to the [Depositor] [Master
            Servicer] [Securities Administrator] [Trustee];

          

          (iv) I
            am
            responsible for reviewing the activities performed by the Seller under
            the
            Agreement, and based on my knowledge and the compliance review conducted
            in
            preparing the Compliance Statement and except as disclosed in the Compliance
            Statement, the Servicing Assessment or the Attestation Report, the Seller
            has
            fulfilled its obligations under the Agreement in all material respects;
            and

          

          
            
              
              

            

            
              32

              
                

              

            

            
              
              

            

          

          (v) The
            Compliance Statement required to be delivered by the Seller pursuant
            to the
            Agreement, and the Servicing Assessment and Attestation Report required
            to be
            provided by the Seller and by each Subcontractor pursuant to the Agreement,
            have
            been provided to the [Depositor] [Master Servicer]. The Servicing Assessment
            and
            the Attestation Report cover all times of the servicing criteria identified
            on
            Exhibit 13 to the Agreement as applicable to the Seller. Any material
            instances
            of noncompliance described in such reports have been disclosed to the
            [Depositor] [Master Servicer]. Any material instance of noncompliance
            with the
            Servicing Criteria has been disclosed in such reports. The following
            material
            instances of noncompliance identified in the Servicing Assessment and
            the
            Attestation Report relate to the performance or obligations of the Seller
            under
            the Agreement: ____________ (if none, state “None.”)

          

          NC
            CAPITAL CORPORATION

          (Seller)

          By:      

          Name:                

          Title:                

          Date:                    

          

          

          

          
            
              
              

            

            
              33

              
                

              

            

            
              
              

            

          

          ANNEX
            C

          

          EXHIBIT
            13

          SERVICING
            CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

          

          The
            assessment of compliance to be delivered by [the Seller] [Name of Subservicer]
            shall address, at a minimum, the criteria identified as below as “Applicable
            Servicing Criteria”:

          
            	 	 
	
                    Servicing
                      Criteria

                  	
                    Applicable

                    Servicing

                    Criteria

                  
	
                    Reference

                  	
                    Criteria

                  	 
	 	
                    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

                  
	
                    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 mortgage loans are maintained.

                  	 
	
                    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

                  
	 	
                    Cash
                      Collection and Administration

                  	 
	
                    1122(d)(2)(i)

                  	
                    Payments
                      on mortgage loans are deposited into the appropriate custodial
                      bank
                      accounts and related bank clearing accounts no more than two
                      business days
                      following receipt, or such other number of days specified in
                      the
                      transaction agreements.

                  	
                    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

                  
	
                    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

                  
	
                    1122(d)(2)(iv)

                  	
                    The
                      related accounts for the transaction, such as cash reserve
                      accounts or
                      accounts established as a form of overcollateralization, are
                      separately
                      maintained (e.g., with respect to commingling of cash) as set
                      forth in the
                      transaction agreements.

                  	
                    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

                  
	
                    1122(d)(2)(vi)

                  	
                    Unissued
                      checks are safeguarded so as to prevent unauthorized
                      access.

                  	
                    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

                  

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          
            	 	 
	
                    Servicing
                      Criteria

                  	
                    Applicable

                    Servicing

                    Criteria

                  
	 	
                    Investor
                      Remittances and Reporting

                  	 
	
                    1122(d)(3)(i)

                  	
                    Reports
                      to investors, including those to be filed with the Commission,
                      are
                      maintained in accordance with the transaction agreements and
                      applicable
                      Commission requirements. Specifically, such reports (A) are
                      prepared in
                      accordance with timeframes and other terms set forth in the
                      transaction
                      agreements; (B) provide information calculated in accordance
                      with the
                      terms specified in the transaction agreements; (C) are filed
                      with the
                      Commission as required by its rules and regulations; and (D)
                      agree with
                      investors’ or the trustee’s records as to the total unpaid principal
                      balance and number of mortgage loans serviced by the
                      Servicer.

                  	
                    X

                  
	
                    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]

                  
	
                    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]

                  
	
                    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]

                  
	 	
                    Pool
                      Asset Administration

                  	 
	
                    1122(d)(4)(i)

                  	
                    Collateral
                      or security on mortgage loans is maintained as required by
                      the transaction
                      agreements or related mortgage loan documents.

                  	 
	
                    1122(d)(4)(ii)

                  	
                    Mortgage
                      loan and related documents are safeguarded as required by the
                      transaction
                      agreements.

                  	 
	
                    1122(d)(4)(iii)

                  	
                    Any
                      additions, removals or substitutions to the asset pool are
                      made, reviewed
                      and approved in accordance with any conditions or requirements
                      in the
                      transaction agreements.

                  	 
	
                    1122(d)(4)(iv)

                  	
                    Payments
                      on mortgage loans, including any payoffs, made in accordance
                      with the
                      related mortgage loan documents are posted to the Servicer’s obligor
                      records maintained no more than two business days after receipt,
                      or such
                      other number of days specified in the transaction agreements,
                      and
                      allocated to principal, interest or other items (e.g., escrow)
                      in
                      accordance with the related mortgage loan documents.

                  	
                    X

                  
	
                    1122(d)(4)(v)

                  	
                    The
                      Servicer’s records regarding the mortgage loans agree with the Servicer’s
                      records with respect to an obligor’s unpaid principal
                      balance.

                  	
                    X

                  
	
                    1122(d)(4)(vi)

                  	
                    Changes
                      with respect to the terms or status of an obligor’s mortgage loans (e.g.,
                      loan modifications or re-agings) are made, reviewed and approved
                      by
                      authorized personnel in accordance with the transaction agreements
                      and
                      related pool asset documents.

                  	
                    X

                  
	
                    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

                  
	
                    1122(d)(4)(viii)

                  	
                    Records
                      documenting collection efforts are maintained during the period
                      a mortgage
                      loan is delinquent in accordance with the transaction agreements.
                      Such
                      records are maintained on at least a monthly basis, or such
                      other period
                      specified in the transaction agreements, and describe the entity’s
                      activities in monitoring delinquent mortgage loans including,
                      for example,
                      phone calls, letters and payment rescheduling plans in cases
                      where
                      delinquency is deemed temporary (e.g., illness or
                      unemployment).

                  	
                    X

                  

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          
            	 	 
	
                    Servicing
                      Criteria

                  	
                    Applicable

                    Servicing

                    Criteria

                  
	
                    1122(d)(4)(ix)

                  	
                    Adjustments
                      to interest rates or rates of return for mortgage loans with
                      variable
                      rates are computed based on the related mortgage loan
                      documents.

                  	
                    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 mortgage loan
                      documents, on at least an annual basis, or such other period
                      specified in
                      the transaction agreements; (B) interest on such funds is paid,
                      or
                      credited, to obligors in accordance with applicable mortgage
                      loan
                      documents and state laws; and (C) such funds are returned to
                      the obligor
                      within 30 calendar days of full repayment of the related mortgage
                      loans,
                      or such other number of days specified in the transaction
                      agreements.

                  	
                    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

                  
	
                    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

                  
	
                    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]

                  

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

         

        ATTACHMENT
          3

        

        Monthly
          Data

         

        Calculation
          of Realized Loss/Gain Form 332- Instruction Sheet

        NOTE:
          Do not net or combine items. Show all expenses individually and all credits
          as
          separate line items. Claim packages are due on the remittance report date.
          Late
          submissions may result in claims not being passed until the following month.
          The
          Servicer is responsible to remit all funds pending loss approval and /or
          resolution of any disputed items. 

        a) 

         

        b) The
          numbers on the 332 form correspond with the numbers listed below.

         

        Liquidation
          and Acquisition Expenses:

         

        
          	 	
                  1.

                	
                  The
                    Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
                    an Amortization Schedule from date of default through liquidation
                    breaking
                    out the net interest and servicing fees advanced is
                    required.

                

        

         

        
          	 	
                  2.

                	
                  The
                    Total Interest Due less the aggregate amount of servicing fee
                    that would
                    have been earned if all delinquent payments had been made as
                    agreed. For
                    documentation, an Amortization Schedule from date of default
                    through
                    liquidation breaking out the net interest and servicing fees
                    advanced is
                    required.

                

        

         

        
          	 	
                  3.
                    

                	
                  Accrued
                    Servicing Fees based upon the Scheduled Principal Balance of
                    the Mortgage
                    Loan as calculated on a monthly basis. For documentation, an
                    Amortization
                    Schedule from date of default through liquidation breaking out
                    the net
                    interest and servicing fees advanced is
                    required.

                

        

         

        
          	 	
                  4-12.

                	
                  Complete
                    as applicable. Required
                    documentation:

                

        

         

        *
          For
          taxes and insurance advances - see page 2 of 332 form - breakdown required
          showing period

         

        of
          coverage, base tax, interest, penalty. Advances prior to default require
          evidence of servicer efforts to recover advances.

         

        *
          For
          escrow advances - complete payment history 

         

        (to
          calculate advances from last positive escrow balance forward)

         

        *
          Other
          expenses -  copies of corporate advance history showing all payments

         

        *
          REO
          repairs > $1500 require explanation

         

        *
          REO
          repairs >$3000 require evidence of at least 2 bids.

         

        *
          Short
          Sale or Charge Off require P&L supporting the decision and
          WFB’s approved Officer Certificate 

         

        *
          Unusual
          or extraordinary items may require further documentation. 

         

        
          	 	
                  13.

                	
                  The
                    total of lines 1 through 12.

                

        

         

        
          	 	
                  c)

                	
                  Credits:
                    

                

        

         

        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        

        
          	 	
                  14-21.

                	
                  Complete
                    as applicable. Required
                    documentation:

                

        

         

        *
          Copy of
          the HUD 1 from the REO sale. If a 3rd
          Party
          Sale, bid instructions and Escrow
          Agent / Attorney

         

        Letter
          of
          Proceeds
          Breakdown.

         

        *
          Copy of
          EOB for any MI or gov't guarantee 

         

        *
          All
          other credits need to be clearly defined on the 332
          form            

         

        
          	 	
                  22.

                	
                  The
                    total of lines 14 through 21.

                

        

         

        Please
          Note:  For
          HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b)
          for Part
          B/Supplemental proceeds.

         

        Total
          Realized Loss (or Amount of Any Gain)

         

        
          	 	
                  23.

                	
                  The
                    total derived from subtracting line 22 from 13. If the amount
                    represents a
                    realized gain, show the amount in parenthesis ( ).
                    

                

        

         

        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        

        

        
          	
                  Exhibit: Calculation
                    of Realized Loss/Gain Form
                    332

                

        

         

        
          	
                  Prepared
                    by: __________________

                	
                  Date:
                    _______________

                
	
                  Phone:
                    ______________________ 

                	
                  Email
                    Address:_____________________

                

        

         

        
          	 	 	 	 	 
	
                  Servicer
                    Loan No.

                	 	
                  Servicer
                    Name

                	 	
                  Servicer
                    Address 

                   

                

        

         

        WELLS
          FARGO BANK, N.A. Loan No._____________________________

         

        Borrower's
          Name: _________________________________________________________

         

        Property
          Address: _________________________________________________________

         

        
          	
                  Liquidation
                    Type: 

                	
                  REO
                    Sale

                	
                  3rd
                    Party Sale

                	
                  Short
                    Sale

                	
                  Charge
                    Off

                

        

        

        
          	
                  Was
                    this loan granted a Bankruptcy deficiency or
                    cramdown

                	
                  Yes
                    

                	
                  No

                

        

        
          	
                  If
                    “Yes”, provide deficiency or cramdown amount__________________________

                

        

         

        
          	
                  Liquidation
                    and Acquisition Expenses:

                	 	 
	
                  (1)

                	
                  Actual
                    Unpaid Principal Balance of Mortgage Loan

                	
                  $
                    ______________

                	
                  (1)

                
	
                  (2)

                	
                  Interest
                    accrued at Net Rate

                	
                  ________________

                	
                  (2)

                
	
                  (3)

                	
                  Accrued
                    Servicing Fees

                	
                  ________________

                	
                  (3)

                
	
                  (4)

                	
                  Attorney's
                    Fees

                	
                  ________________

                	
                  (4)

                
	
                  (5)

                	
                  Taxes
                    (see page 2)

                	
                  ________________

                	
                  (5)

                
	
                  (6)

                	
                  Property
                    Maintenance

                	
                  ________________

                	
                  (6)

                
	
                  (7)

                	
                  MI/Hazard
                    Insurance Premiums (see page 2)

                	
                  ________________

                	
                  (7)

                
	
                  (8)

                	
                  Utility
                    Expenses

                	
                  ________________

                	
                  (8)

                
	
                  (9)

                	
                  Appraisal/BPO

                	
                  ________________

                	
                  (9)

                
	
                  (10)

                	
                  Property
                    Inspections

                	
                  ________________

                	
                  (10)

                
	
                  (11)

                	
                  FC
                    Costs/Other Legal Expenses

                	
                  ________________

                	
                  (11)

                
	
                  (12)

                	
                  Other
                    (itemize)

                	
                  ________________

                	
                  (12)

                
	 	
                  Cash
                    for Keys__________________________

                	
                  ________________

                	
                  (12)

                
	 	
                  HOA/Condo
                    Fees_______________________

                	
                  ________________

                	
                  (12)

                
	 	
                  ______________________________________

                	
                  ________________

                	
                  (12)

                
	 	
                  (13)

                	 	 
	 	 	 
	 	
                  Total
                    Expenses

                	
                  $
                    _______________

                
	
                  Credits:

                	 	 	 
	
                  (14)

                	
                  Escrow
                    Balance

                	
                  $
                    _______________

                	
                  (14)

                
	
                  (15)

                	
                  HIP
                    Refund

                	
                  ________________

                	
                  (15)

                
	
                  (16)

                	
                  Rental
                    Receipts

                	
                  ________________

                	
                  (16)

                
	
                  (17)

                	
                  Hazard
                    Loss Proceeds

                	
                  ________________

                	
                  (17)

                
	
                  (18)

                	
                  Primary
                    Mortgage Insurance / Gov’t Insurance

                	
                  ________________

                	
                  (18a)
                    

                
	
                  HUD
                    Part A

                	
                   

                	 	 
	 	 	 	 
	
                  HUD
                    Part B

                	 	
                  ________________

                	
                  (18b)

                
	
                  (19)

                	
                  Pool
                    Insurance Proceeds

                	
                  ________________

                	
                  (19)

                
	
                  (20)

                	
                  Proceeds
                    from Sale of Acquired Property

                	
                  ________________

                	
                  (20)

                
	
                  (21)

                	
                  Other
                    (itemize)

                	
                  ________________

                	
                  (21)

                
	 	
                  _________________________________________

                	
                  ________________

                	
                  (21)

                
	 	 	 	 
	 	
                  Total
                    Credits

                	
                  $________________

                	
                  (22)

                
	
                  Total
                    Realized Loss (or Amount of Gain)

                	
                  $________________

                	
                  (23)

                

        

        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

         

        Escrow
          Disbursement Detail

         

        
          	 	 	 	 	 	 	 
	
                  Type

                  (Tax
                    /Ins.)

                	
                  Date
                    Paid

                	
                  Period
                    of Coverage

                	
                  Total
                    Paid

                	
                  Base

                  Amount

                	
                  Penalties

                	
                  Interest

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

        

        

        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

         

        Standard
          File Layout - Delinquency Reporting

        

        
          	 	 	 	 
	
                  Column/Header
                    Name

                	
                  Description

                	
                  Decimal

                	
                  Format
                    Comment

                
	
                  SERVICER_LOAN_NBR

                	
                  A
                    unique number assigned to a loan by the Servicer. This may be
                    different
                    than the LOAN_NBR

                	 	
                   

                
	
                  LOAN_NBR

                	
                  A
                    unique identifier assigned to each loan by the originator.

                	 	
                   

                
	
                  CLIENT_NBR

                	
                  Servicer
                    Client Number

                	 	 
	
                  SERV_INVESTOR_NBR

                	
                  Contains
                    a unique number as assigned by an external servicer to identify
                    a group of
                    loans in their system.

                	 	
                   

                
	
                  BORROWER_FIRST_NAME

                	
                  First
                    Name of the Borrower.

                	 	 
	
                  BORROWER_LAST_NAME

                	
                  Last
                    name of the borrower.

                	 	 
	
                  PROP_ADDRESS

                	
                  Street
                    Name and Number of Property

                	 	
                   

                
	
                  PROP_STATE

                	
                  The
                    state where the property located.

                	 	
                   

                
	
                  PROP_ZIP

                	
                  Zip
                    code where the property is located.

                	 	
                   

                
	
                  BORR_NEXT_PAY_DUE_DATE

                	
                  The
                    date that the borrower's next payment is due to the servicer
                    at the end of
                    processing cycle, as reported by Servicer.

                	 	
                  MM/DD/YYYY

                
	
                  LOAN_TYPE

                	
                  Loan
                    Type (i.e. FHA, VA, Conv)

                	 	
                   

                
	
                  BANKRUPTCY_FILED_DATE

                	
                  The
                    date a particular bankruptcy claim was filed.

                	 	
                  MM/DD/YYYY

                
	
                  BANKRUPTCY_CHAPTER_CODE

                	
                  The
                    chapter under which the bankruptcy was filed.

                	 	
                   

                
	
                  BANKRUPTCY_CASE_NBR

                	
                  The
                    case number assigned by the court to the bankruptcy
                    filing.

                	 	
                   

                
	
                  POST_PETITION_DUE_DATE

                	
                  The
                    payment due date once the bankruptcy has been approved by the
                    courts

                	 	
                  MM/DD/YYYY

                
	
                  BANKRUPTCY_DCHRG_DISM_DATE

                	
                  The
                    Date The Loan Is Removed From Bankruptcy. Either by Dismissal,
                    Discharged
                    and/or a Motion For Relief Was Granted. 

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_APPR_DATE

                	
                  The
                    Date The Loss Mitigation Was Approved By The Servicer

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_TYPE

                	
                  The
                    Type Of Loss Mitigation Approved For A Loan Such As;

                	 	 
	
                  LOSS_MIT_EST_COMP_DATE

                	
                  The
                    Date The Loss Mitigation /Plan Is Scheduled To End/Close

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_ACT_COMP_DATE

                	
                  The
                    Date The Loss Mitigation Is Actually Completed

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_APPROVED_DATE

                	
                  The
                    date DA Admin sends a letter to the servicer with instructions
                    to begin
                    foreclosure proceedings.

                	 	
                  MM/DD/YYYY

                
	
                  ATTORNEY_REFERRAL_DATE

                	
                  Date
                    File Was Referred To Attorney to Pursue Foreclosure

                	 	
                  MM/DD/YYYY

                
	
                  FIRST_LEGAL_DATE

                	
                  Notice
                    of 1st legal filed by an Attorney in a Foreclosure Action

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_EXPECTED_DATE

                	
                  The
                    date by which a foreclosure sale is expected to occur.

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_DATE

                	
                  The
                    actual date of the foreclosure sale.

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_AMT

                	
                  The
                    amount a property sold for at the foreclosure sale.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  EVICTION_START_DATE

                	
                  The
                    date the servicer initiates eviction of the borrower.

                	 	
                  MM/DD/YYYY

                
	
                  EVICTION_COMPLETED_DATE

                	
                  The
                    date the court revokes legal possession of the property from
                    the
                    borrower.

                	 	
                  MM/DD/YYYY

                
	
                  LIST_PRICE

                	
                  The
                    price at which an REO property is marketed.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  LIST_DATE

                	
                  The
                    date an REO property is listed at a particular price.

                	 	
                  MM/DD/YYYY

                
	
                  OFFER_AMT

                	
                  The
                    dollar value of an offer for an REO property.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  OFFER_DATE_TIME

                	
                  The
                    date an offer is received by DA Admin or by the Servicer.

                	 	
                  MM/DD/YYYY

                
	
                  REO_CLOSING_DATE

                	
                  The
                    date the REO sale of the property is scheduled to close.

                	 	
                  MM/DD/YYYY

                
	
                  REO_ACTUAL_CLOSING_DATE

                	
                  Actual
                    Date Of REO Sale

                	 	
                  MM/DD/YYYY

                
	
                  OCCUPANT_CODE

                	
                  Classification
                    of how the property is occupied.

                	 	
                   

                
	
                  PROP_CONDITION_CODE

                	
                  A
                    code that indicates the condition of the property.

                	 	
                   

                

        

        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        

        

        
          	 	 	 	 
	
                  PROP_INSPECTION_DATE

                	
                  The
                    date a property inspection is performed.

                	 	
                  MM/DD/YYYY

                
	
                  APPRAISAL_DATE

                	
                  The
                    date the appraisal was done.

                	 	
                  MM/DD/YYYY

                
	
                  CURR_PROP_VAL

                	
                   The
                    current "as is" value of the property based on brokers price
                    opinion or
                    appraisal.

                	
                  2

                	
                   

                
	
                  REPAIRED_PROP_VAL

                	
                  The
                    amount the property would be worth if repairs are completed pursuant
                    to a
                    broker's price opinion or appraisal.

                	
                  2

                	
                   

                
	
                  If
                    applicable:

                	
                   

                	 	
                   

                
	
                  DELINQ_STATUS_CODE

                	
                  FNMA
                    Code Describing Status of Loan

                	 	 
	
                  DELINQ_REASON_CODE

                	
                  The
                    circumstances which caused a borrower to stop paying on a loan.
                    Code
                    indicates the reason why the loan is in default for this
                    cycle.

                	 	 
	
                  MI_CLAIM_FILED_DATE

                	
                  Date
                    Mortgage Insurance Claim Was Filed With Mortgage Insurance
                    Company.

                	 	
                  MM/DD/YYYY

                
	
                  MI_CLAIM_AMT

                	
                  Amount
                    of Mortgage Insurance Claim Filed

                	 	
                  No
                    commas(,) or dollar signs ($)

                
	
                  MI_CLAIM_PAID_DATE

                	
                  Date
                    Mortgage Insurance Company Disbursed Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  MI_CLAIM_AMT_PAID

                	
                  Amount
                    Mortgage Insurance Company Paid On Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  POOL_CLAIM_FILED_DATE

                	
                  Date
                    Claim Was Filed With Pool Insurance Company

                	 	
                  MM/DD/YYYY

                
	
                  POOL_CLAIM_AMT

                	
                  Amount
                    of Claim Filed With Pool Insurance Company

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  POOL_CLAIM_PAID_DATE

                	
                  Date
                    Claim Was Settled and The Check Was Issued By The Pool
                    Insurer

                	 	
                  MM/DD/YYYY

                
	
                  POOL_CLAIM_AMT_PAID

                	
                  Amount
                    Paid On Claim By Pool Insurance Company

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_A_CLAIM_FILED_DATE

                	
                   Date
                    FHA Part A Claim Was Filed With HUD

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_A_CLAIM_AMT

                	
                   Amount
                    of FHA Part A Claim Filed

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_A_CLAIM_PAID_DATE

                	
                   Date
                    HUD Disbursed Part A Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_A_CLAIM_PAID_AMT

                	
                   Amount
                    HUD Paid on Part A Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_B_CLAIM_FILED_DATE

                	
                    Date
                    FHA Part B Claim Was Filed With HUD

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_B_CLAIM_AMT

                	
                    Amount
                    of FHA Part B Claim Filed

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_B_CLAIM_PAID_DATE

                	
                     Date
                    HUD Disbursed Part B Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_B_CLAIM_PAID_AMT

                	
                   Amount
                    HUD Paid on Part B Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  VA_CLAIM_FILED_DATE

                	
                   Date
                    VA Claim Was Filed With the Veterans Admin

                	 	
                  MM/DD/YYYY

                
	
                  VA_CLAIM_PAID_DATE

                	
                   Date
                    Veterans Admin. Disbursed VA Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  VA_CLAIM_PAID_AMT

                	
                   Amount
                    Veterans Admin. Paid on VA Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                

        

         

        
          
            	
                    
                      Exhibit: Standard
                        File Codes - Delinquency
                        Reporting

                    

                  

          

           

        

        The
          Loss
          Mit Type
          field
          should show the approved Loss Mitigation Code as follows: 

         

        
          
            	 	
                    ·

                  	
                    ASUM-

                  	
                    Approved
                      Assumption

                  
	 	
                    ·

                  	
                    BAP-

                  	
                    Borrower
                      Assistance Program

                  
	 	
                    ·

                  	
                    CO-

                  	
                    Charge
                      Off

                  
	 	
                    ·

                  	
                    DIL-

                  	
                    Deed-in-Lieu

                  
	 	
                    ·

                  	
                    FFA-

                  	
                    Formal
                      Forbearance Agreement

                  

          

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          
            	 	
                    ·

                  	
                    MOD-

                  	
                    Loan
                      Modification

                  
	 	
                    ·

                  	
                    PRE-

                  	
                    Pre-Sale

                  
	 	
                    ·

                  	
                    SS-

                  	
                    Short
                      Sale

                  
	 	
                    ·

                  	
                    MISC-

                  	
                    Anything
                      else approved by the PMI or Pool
                      Insurer

                  

          

        

         

        NOTE:
          Wells Fargo Bank will accept alternative Loss Mitigation Types to those
          above,
          provided that they are consistent with industry standards. If Loss Mitigation
          Types other than those above are used, the Servicer must supply Wells Fargo
          Bank
          with a description of each of the Loss Mitigation Types prior to sending
          the
          file.

         

        The
          Occupant
          Code
          field should show the current status of the property code as
          follows:

         

        
          	 	
                  ·

                	
                  Mortgagor

                

        

         

        
          	 	
                  ·

                	
                  Tenant

                

        

         

        
          	 	
                  ·

                	
                  Unknown
                    

                

        

         

        
          	 	
                  ·

                	
                  Vacant

                

        

         

        The
          Property
          Condition
          field should show the last reported condition of the property as follows:
          

        
           

          
            	 	
                    ·

                  	
                    Damaged

                  

          

           

          
            	 	
                    ·

                  	
                    Excellent

                  

          

           

          
            	 	
                    ·

                  	
                    Fair

                  

          

           

          
            	 	
                    ·

                  	
                    Gone

                  

          

           

          
            	 	
                    ·

                  	
                    Good

                  

          

           

          
            	 	
                    ·

                  	
                    Poor

                  

          

           

          
            	 	
                    ·

                  	
                    Special
                      Hazard

                  

          

           

          
            	 	
                    ·

                  	
                    Unknown

                  

          

        

        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        

          
            	
                    
                      Exhibit: Standard
                        File Codes - Delinquency Reporting, Continued

                    

                  

          

           

        

        The
          FNMA
          Delinquent Reason Code
          field should show the Reason for Delinquency as follows: 

        
          	 	 
	
                  Delinquency
                    Code

                	
                  Delinquency
                    Description

                
	
                  001

                	
                  FNMA-Death
                    of principal mortgagor

                
	
                  002

                	
                  FNMA-Illness
                    of principal mortgagor

                
	
                  003

                	
                  FNMA-Illness
                    of mortgagor’s family member

                
	
                  004

                	
                  FNMA-Death
                    of mortgagor’s family member

                
	
                  005

                	
                  FNMA-Marital
                    difficulties

                
	
                  006

                	
                  FNMA-Curtailment
                    of income

                
	
                  007

                	
                  FNMA-Excessive
                    Obligation

                
	
                  008

                	
                  FNMA-Abandonment
                    of property

                
	
                  009

                	
                  FNMA-Distant
                    employee transfer

                
	
                  011

                	
                  FNMA-Property
                    problem

                
	
                  012

                	
                  FNMA-Inability
                    to sell property

                
	
                  013

                	
                  FNMA-Inability
                    to rent property

                
	
                  014

                	
                  FNMA-Military
                    Service

                
	
                  015

                	
                  FNMA-Other

                
	
                  016

                	
                  FNMA-Unemployment

                
	
                  017

                	
                  FNMA-Business
                    failure

                
	
                  019

                	
                  FNMA-Casualty
                    loss

                
	
                  022

                	
                  FNMA-Energy
                    environment costs

                
	
                  023

                	
                  FNMA-Servicing
                    problems

                
	
                  026

                	
                  FNMA-Payment
                    adjustment

                
	
                  027

                	
                  FNMA-Payment
                    dispute

                
	
                  029

                	
                  FNMA-Transfer
                    of ownership pending

                
	
                  030

                	
                  FNMA-Fraud

                
	
                  031

                	
                  FNMA-Unable
                    to contact borrower

                
	
                  INC

                	
                  FNMA-Incarceration

                

        

        

        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        

        
          

            
              	
                      
                        Exhibit: Standard
                          File Codes - Delinquency Reporting, Continued

                      

                    

            

             

          

        

        The
          FNMA
          Delinquent Status Code
          field should show the Status of Default as follows: 

        
          	 	 
	
                  Status
                    Code

                	
                  Status
                    Description

                
	
                  09

                	
                  Forbearance

                
	
                  17

                	
                  Pre-foreclosure
                    Sale Closing Plan Accepted

                
	
                  24

                	
                  Government
                    Seizure

                
	
                  26

                	
                  Refinance

                
	
                  27

                	
                  Assumption

                
	
                  28

                	
                  Modification

                
	
                  29

                	
                  Charge-Off

                
	
                  30

                	
                  Third
                    Party Sale

                
	
                  31

                	
                  Probate

                
	
                  32

                	
                  Military
                    Indulgence

                
	
                  43

                	
                  Foreclosure
                    Started

                
	
                  44

                	
                  Deed-in-Lieu
                    Started

                
	
                  49

                	
                  Assignment
                    Completed

                
	
                  61

                	
                  Second
                    Lien Considerations

                
	
                  62

                	
                  Veteran’s
                    Affairs-No Bid

                
	
                  63

                	
                  Veteran’s
                    Affairs-Refund

                
	
                  64

                	
                  Veteran’s
                    Affairs-Buydown

                
	
                  65

                	
                  Chapter
                    7 Bankruptcy

                
	
                  66

                	
                  Chapter
                    11 Bankruptcy

                
	
                  67

                	
                  Chapter
                    13 Bankruptcy

                

        

         

        

        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        

         

        
          	
                  Standard
                    File Layout - Master Servicing 

                	 	 	 
	
                  Column
                    Name

                	
                  Description

                	
                  Decimal

                	
                  Format
                    Comment

                	
                  Max
                    Size

                
	
                  SER_INVESTOR_NBR

                	
                  A
                    value assigned by the Servicer to define a group of loans.

                	
                   

                	
                  Text
                    up to 10 digits

                	
                  20

                
	
                  LOAN_NBR

                	
                  A
                    unique identifier assigned to each loan by the investor.

                	
                   

                	
                  Text
                    up to 10 digits

                	
                  10

                
	
                  SERVICER_LOAN_NBR

                	
                  A
                    unique number assigned to a loan by the Servicer. This may be
                    different
                    than the LOAN_NBR.

                	
                   

                	
                  Text
                    up to 10 digits

                	
                  10

                
	
                  BORROWER_NAME

                	
                  The
                    borrower name as received in the file. It is not separated by
                    first and
                    last name.

                	
                   

                	
                  Maximum
                    length of 30 (Last, First)

                	
                  30

                
	
                  SCHED_PAY_AMT

                	
                  Scheduled
                    monthly principal and scheduled interest payment that a borrower
                    is
                    expected to pay, P&I constant.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NOTE_INT_RATE

                	
                  The
                    loan interest rate as reported by the Servicer.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  NET_INT_RATE

                	
                  The
                    loan gross interest rate less the service fee rate as reported
                    by the
                    Servicer.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  SERV_FEE_RATE

                	
                  The
                    servicer's fee rate for a loan as reported by the Servicer.
                    

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  SERV_FEE_AMT

                	
                  The
                    servicer's fee amount for a loan as reported by the Servicer.
                    

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NEW_PAY_AMT

                	
                  The
                    new loan payment amount as reported by the Servicer. 

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NEW_LOAN_RATE

                	
                  The
                    new loan rate as reported by the Servicer. 

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  ARM_INDEX_RATE

                	
                  The
                    index the Servicer is using to calculate a forecasted
                    rate.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  ACTL_BEG_PRIN_BAL

                	
                  The
                    borrower's actual principal balance at the beginning of the processing
                    cycle.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  ACTL_END_PRIN_BAL

                	
                  The
                    borrower's actual principal balance at the end of the processing
                    cycle.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  BORR_NEXT_PAY_DUE_DATE

                	
                  The
                    date at the end of processing cycle that the borrower's next
                    payment is
                    due to the Servicer, as reported by Servicer.

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                  SERV_CURT_AMT_1

                	
                  The
                    first curtailment amount to be applied.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_DATE_1

                	
                  The
                    curtailment date associated with the first curtailment amount.
                    

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                  CURT_ADJ_
                    AMT_1

                	
                  The
                    curtailment interest on the first curtailment amount, if
                    applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                

        

        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        

        

        
          	 	 	 	 	 
	
                  SERV_CURT_AMT_2

                	
                  The
                    second curtailment amount to be applied.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_DATE_2

                	
                  The
                    curtailment date associated with the second curtailment
                    amount.

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                  CURT_ADJ_
                    AMT_2

                	
                  The
                    curtailment interest on the second curtailment amount, if
                    applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_AMT_3

                	
                  The
                    third curtailment amount to be applied.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_DATE_3

                	
                  The
                    curtailment date associated with the third curtailment
                    amount.

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                  CURT_ADJ_AMT_3

                	
                  The
                    curtailment interest on the third curtailment amount, if
                    applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  PIF_AMT

                	
                  The
                    loan "paid in full" amount as reported by the Servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  PIF_DATE

                	
                  The
                    paid in full date as reported by the Servicer.

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                   

                	
                   

                	
                   

                	
                  Action
                    Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                    65=Repurchase,70=REO 

                	
                  2

                
	
                  ACTION_CODE

                	
                  The
                    standard FNMA numeric code used to indicate the default/delinquent
                    status
                    of a particular loan.

                
	
                  INT_ADJ_AMT

                	
                  The
                    amount of the interest adjustment as reported by the
                    Servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SOLDIER_SAILOR_ADJ_AMT

                	
                  The
                    Soldier and Sailor Adjustment amount, if applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NON_ADV_LOAN_AMT

                	
                  The
                    Non Recoverable Loan Amount, if applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  LOAN_LOSS_AMT

                	
                  The
                    amount the Servicer is passing as a loss, if applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SCHED_BEG_PRIN_BAL

                	
                  The
                    scheduled outstanding principal amount due at the beginning of
                    the cycle
                    date to be passed through to investors.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SCHED_END_PRIN_BAL

                	
                  The
                    scheduled principal balance due to investors at the end of a
                    processing
                    cycle.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SCHED_PRIN_AMT

                	
                  The
                    scheduled principal amount as reported by the Servicer for the
                    current
                    cycle -- only applicable for Scheduled/Scheduled Loans.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SCHED_NET_INT

                	
                  The
                    scheduled gross interest amount less the service fee amount for
                    the
                    current cycle as reported by the Servicer -- only applicable
                    for
                    Scheduled/Scheduled Loans.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  ACTL_PRIN_AMT

                	
                  The
                    actual principal amount collected by the Servicer for the current
                    reporting cycle -- only applicable for Actual/Actual
                    Loans.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                

        

        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        

        

        
          	 	 	 	 	 
	
                  ACTL_NET_INT

                	
                  The
                    actual gross interest amount less the service fee amount for
                    the current
                    reporting cycle as reported by the Servicer -- only applicable
                    for
                    Actual/Actual Loans.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  PREPAY_PENALTY_
                    AMT

                	
                  The
                    penalty amount received when a borrower prepays on his loan as
                    reported by
                    the Servicer. 

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  PREPAY_PENALTY_
                    WAIVED

                	
                  The
                    prepayment penalty amount for the loan waived by the
                    servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                
	
                  MOD_DATE

                	
                  The
                    Effective Payment Date of the Modification for the loan.

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                  MOD_TYPE

                	
                  The
                    Modification Type.

                	
                   

                	
                  Varchar
                    - value can be alpha or numeric

                	
                  30

                
	
                  DELINQ_P&I_ADVANCE_AMT

                	
                  The
                    current outstanding principal and interest advances made by
                    Servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        

        ATTACHMENT
          4

        

        EXHIBIT
          13

        SERVICING
          CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

        

        The
          assessment of compliance to be delivered by [the Seller] [Name of Subservicer]
          shall address, at a minimum, the criteria identified as below as “Applicable
          Servicing Criteria”:

        
          	 	 
	
                  Servicing
                    Criteria

                	
                  Applicable

                  Servicing

                  Criteria

                
	
                  Reference

                	
                  Criteria

                	 
	 	
                  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

                
	
                  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 mortgage loans are maintained.

                	 
	
                  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

                
	 	
                  Cash
                    Collection and Administration

                	 
	
                  1122(d)(2)(i)

                	
                  Payments
                    on mortgage loans are deposited into the appropriate custodial
                    bank
                    accounts and related bank clearing accounts no more than two
                    business days
                    following receipt, or such other number of days specified in
                    the
                    transaction agreements.

                	
                  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

                
	
                  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

                
	
                  1122(d)(2)(iv)

                	
                  The
                    related accounts for the transaction, such as cash reserve accounts
                    or
                    accounts established as a form of overcollateralization, are
                    separately
                    maintained (e.g., with respect to commingling of cash) as set
                    forth in the
                    transaction agreements.

                	
                  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

                
	
                  1122(d)(2)(vi)

                	
                  Unissued
                    checks are safeguarded so as to prevent unauthorized
                    access.

                	
                  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

                

        

        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        

        

        
          	 	 
	
                  Servicing
                    Criteria

                	
                  Applicable

                  Servicing

                  Criteria

                
	 	
                  Investor
                    Remittances and Reporting

                	 
	
                  1122(d)(3)(i)

                	
                  Reports
                    to investors, including those to be filed with the Commission,
                    are
                    maintained in accordance with the transaction agreements and
                    applicable
                    Commission requirements. Specifically, such reports (A) are prepared
                    in
                    accordance with timeframes and other terms set forth in the transaction
                    agreements; (B) provide information calculated in accordance
                    with the
                    terms specified in the transaction agreements; (C) are filed
                    with the
                    Commission as required by its rules and regulations; and (D)
                    agree with
                    investors’ or the trustee’s records as to the total unpaid principal
                    balance and number of mortgage loans serviced by the
                    Servicer.

                	
                  X

                
	
                  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

                
	
                  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.

                	 
	
                  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

                
	 	
                  Pool
                    Asset Administration

                	 
	
                  1122(d)(4)(i)

                	
                  Collateral
                    or security on mortgage loans is maintained as required by the
                    transaction
                    agreements or related mortgage loan documents.

                	
                  X

                
	
                  1122(d)(4)(ii)

                	
                  Mortgage
                    loan and related documents are safeguarded as required by the
                    transaction
                    agreements.

                	
                  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 mortgage loans, including any payoffs, made in accordance
                    with the
                    related mortgage loan documents are posted to the Servicer’s obligor
                    records maintained no more than two business days after receipt,
                    or such
                    other number of days specified in the transaction agreements,
                    and
                    allocated to principal, interest or other items (e.g., escrow)
                    in
                    accordance with the related mortgage loan documents.

                	
                  X

                
	
                  1122(d)(4)(v)

                	
                  The
                    Servicer’s records regarding the mortgage loans agree with the Servicer’s
                    records with respect to an obligor’s unpaid principal
                    balance.

                	
                  X

                
	
                  1122(d)(4)(vi)

                	
                  Changes
                    with respect to the terms or status of an obligor’s mortgage loans (e.g.,
                    loan modifications or re-agings) are made, reviewed and approved
                    by
                    authorized personnel in accordance with the transaction agreements
                    and
                    related pool asset documents.

                	
                  X

                
	
                  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

                
	
                  1122(d)(4)(viii)

                	
                  Records
                    documenting collection efforts are maintained during the period
                    a mortgage
                    loan is delinquent in accordance with the transaction agreements.
                    Such
                    records are maintained on at least a monthly basis, or such other
                    period
                    specified in the transaction agreements, and describe the entity’s
                    activities in monitoring delinquent mortgage loans including,
                    for example,
                    phone calls, letters and payment rescheduling plans in cases
                    where
                    delinquency is deemed temporary (e.g., illness or
                    unemployment).

                	
                  X

                

        

        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        

        

        
          	 	 
	
                  Servicing
                    Criteria

                	
                  Applicable

                  Servicing

                  Criteria

                
	
                  1122(d)(4)(ix)

                	
                  Adjustments
                    to interest rates or rates of return for mortgage loans with
                    variable
                    rates are computed based on the related mortgage loan
                    documents.

                	
                  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 mortgage loan
                    documents, on at least an annual basis, or such other period
                    specified in
                    the transaction agreements; (B) interest on such funds is paid,
                    or
                    credited, to obligors in accordance with applicable mortgage
                    loan
                    documents and state laws; and (C) such funds are returned to
                    the obligor
                    within 30 calendar days of full repayment of the related mortgage
                    loans,
                    or such other number of days specified in the transaction
                    agreements.

                	
                  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

                
	
                  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

                
	
                  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.

                	 

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

SCHEDULE
        1

    

    

    MORTGAGE
      LOAN SCHEDULE

    

    [PROVIDED
      UPON REQUEST]

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2

    

    PREPAYMENT
      CHARGE SCHEDULE

    

    [PROVIDED
      UPON REQUEST]

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      3

    

    [RESERVED]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4

    

    STANDARD
      FILE LAYOUT - DELINQUENCY REPORTING AND REALIZED LOSSES AND GAINS

    

    

    Exhibit
      1 : Standard
      File Layout - Delinquency Reporting

    

    
      	
              Column
                Name

            	
              Description

            	
              Decimal

            	
              Format
                Comment

            
	
              SER_INVESTOR_NBR

            	
              A
                value assigned by the Servicer to define a group of loans.

            	
               

            	
              Text
                up to 10 digits

            
	
              LOAN_NBR

            	
              A
                unique identifier assigned to each loan by the investor.

            	
               

            	
              Text
                up to 10 digits

            
	
              SERVICER_LOAN_NBR

            	
              A
                unique number assigned to a loan by the Servicer. This may be different
                than the LOAN_NBR.

            	
               

            	
              Text
                up to 10 digits

            
	
              BORROWER_NAME

            	
              The
                borrower name as received in the file. It is not separated by first
                and
                last name.

            	
               

            	
              Maximum
                length of 30 (Last, First)

            
	
              SCHED_PAY_AMT

            	
              Scheduled
                monthly principal and scheduled interest payment that a borrower
                is
                expected to pay, P&I constant.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NOTE_INT_RATE

            	
              The
                loan interest rate as reported by the Servicer.

            	
              4

            	
              Max
                length of 6

            
	
              NET_INT_RATE

            	
              The
                loan gross interest rate less the service fee rate as reported by
                the
                Servicer.

            	
              4

            	
              Max
                length of 6

            
	
              SERV_FEE_RATE

            	
              The
                servicer's fee rate for a loan as reported by the Servicer.
                

            	
              4

            	
              Max
                length of 6

            
	
              SERV_FEE_AMT

            	
              The
                servicer's fee amount for a loan as reported by the Servicer.
                

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NEW_PAY_AMT

            	
              The
                new loan payment amount as reported by the Servicer. 

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NEW_LOAN_RATE

            	
              The
                new loan rate as reported by the Servicer. 

            	
              4

            	
              Max
                length of 6

            
	
              ARM_INDEX_RATE

            	
              The
                index the Servicer is using to calculate a forecasted
                rate.

            	
              4

            	
              Max
                length of 6

            
	
              ACTL_BEG_PRIN_BAL

            	
              The
                borrower's actual principal balance at the beginning of the processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              ACTL_END_PRIN_BAL

            	
              The
                borrower's actual principal balance at the end of the processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              BORR_NEXT_PAY_DUE_DATE

            	
              The
                date at the end of processing cycle that the borrower's next payment
                is
                due to the Servicer, as reported by Servicer.

            	
               

            	
              MM/DD/YYYY

            
	
              SERV_CURT_AMT_1

            	
              The
                first curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_DATE_1

            	
              The
                curtailment date associated with the first curtailment amount.
                

            	
               

            	
              MM/DD/YYYY

            
	
              CURT_ADJ_
                AMT_1

            	
              The
                curtailment interest on the first curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_AMT_2

            	
              The
                second curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_DATE_2

            	
              The
                curtailment date associated with the second curtailment
                amount.

            	
               

            	
              MM/DD/YYYY

            
	
              CURT_ADJ_
                AMT_2

            	
              The
                curtailment interest on the second curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_AMT_3

            	
              The
                third curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_DATE_3

            	
              The
                curtailment date associated with the third curtailment
                amount.

            	
               

            	
              MM/DD/YYYY

            
	
              CURT_ADJ_AMT_3

            	
              The
                curtailment interest on the third curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PIF_AMT

            	
              The
                loan "paid in full" amount as reported by the Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PIF_DATE

            	
              The
                paid in full date as reported by the Servicer.

            	
               

            	
              MM/DD/YYYY

            
	
               

            	
               

            	
               

            	
              Action
                Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                65=Repurchase, 70=REO 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
              Column
                Name

            	
              Description

            	
              Decimal

            	
              Format
                Comment

            

    

    
      	
            	 	 	 
	
              ACTION_CODE

            	
              The
                standard FNMA numeric code used to indicate the default/delinquent
                status
                of a particular loan.

            	 	 
	
              INT_ADJ_AMT

            	
              The
                amount of the interest adjustment as reported by the
                Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SOLDIER_SAILOR_ADJ_AMT

            	
              The
                Soldier and Sailor Adjustment amount, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NON_ADV_LOAN_AMT

            	
              The
                Non Recoverable Loan Amount, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              LOAN_LOSS_AMT

            	
              The
                amount the Servicer is passing as a loss, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SCHED_BEG_PRIN_BAL

            	
              The
                scheduled outstanding principal amount due at the beginning of the
                cycle
                date to be passed through to investors.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SCHED_END_PRIN_BAL

            	
              The
                scheduled principal balance due to investors at the end of a processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SCHED_PRIN_AMT

            	
              The
                scheduled principal amount as reported by the Servicer for the current
                cycle -- only applicable for Scheduled/Scheduled Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SCHED_NET_INT

            	
              The
                scheduled gross interest amount less the service fee amount for the
                current cycle as reported by the Servicer -- only applicable for
                Scheduled/Scheduled Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              ACTL_PRIN_AMT

            	
              The
                actual principal amount collected by the Servicer for the current
                reporting cycle -- only applicable for Actual/Actual
                Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              ACTL_NET_INT

            	
              The
                actual gross interest amount less the service fee amount for the
                current
                reporting cycle as reported by the Servicer -- only applicable for
                Actual/Actual Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PREPAY_PENALTY_
                AMT

            	
              The
                penalty amount received when a borrower prepays on his loan as reported
                by
                the Servicer. 

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PREPAY_PENALTY_
                WAIVED

            	
              The
                prepayment penalty amount for the loan waived by the
                servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
               

            	
               

            	
               

            	
               

            
	
              MOD_DATE

            	
              The
                Effective Payment Date of the Modification for the loan.

            	
               

            	
              MM/DD/YYYY

            
	
              MOD_TYPE

            	
              The
                Modification Type.

            	
               

            	
              Varchar
                - value can be alpha or numeric

            
	
              DELINQ_P&I_ADVANCE_AMT

            	
              The
                current outstanding principal and interest advances made by
                Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Standard
      File Layout - Delinquency Reporting

     

    

    REPORTING
      DATA FOR DEFAULTED LOANS 

     

    Data
      must
      be submitted to Wells Fargo Bank in an Excel
      spreadsheet format with fixed field names and data type. The Excel
      spreadsheet should be used as a template consistently every month when
      submitting data. 

     

    Table:
      Delinquency 

    

      
        	
                Name
                  

              	
                Type
                  

              	
                Size
                  

              
	
                Servicer
                  Loan # 

              	
                Number
                  

              	
                8
                  

              
	 	
                (Double)
                  

              	 
	
                Investor
                  Loan # 

              	
                Number
                  

              	
                8
                  

              
	 	
                (Double)
                  

              	 
	
                Borrower
                  Name 

              	
                Text
                  

              	
                20
                  

              
	
                Address
                  

              	
                Text
                  

              	
                30
                  

              
	
                State
                  

              	
                Text
                  

              	
                2
                  

              
	
                Due
                  Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Action
                  Code 

              	
                Text
                  

              	
                2
                  

              
	
                FC
                  Received 

              	
                Date/Time
                  

              	
                8
                  

              
	
                File
                  Referred to Atty 

              	
                Date/Time
                  

              	
                8
                  

              
	
                NOD
                  

              	
                Date/Time
                  

              	
                8
                  

              
	
                Complaint
                  Filed 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Sale
                  Published 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Target
                  Sale Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Actual
                  Sale Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Loss
                  Mit Approval Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Loss
                  Mit Type 

              	
                Text
                  

              	
                5
                  

              
	
                Loss
                  Mit Estimated Completion 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Date
                  

              	 	 
	
                Loss
                  Mit Actual Completion Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Loss
                  Mit Broken Plan Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                BK
                  Chapter 

              	
                Text
                  

              	
                6
                  

              
	
                BK
                  Filed Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Post
                  Petition Due 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Motion
                  for Relief 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Lift
                  of Stay 

              	
                Date/Time
                  

              	
                8
                  

              
	
                RFD
                  

              	
                Text
                  

              	
                10
                  

              
	
                Occupant
                  Code 

              	
                Text
                  

              	
                10
                  

              
	
                Eviction
                  Start Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Eviction
                  Completed Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                List
                  Price 

              	
                Currency
                  

              	
                8
                  

              
	
                List
                  Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Accepted
                  Offer Price 

              	
                Currency
                  

              	
                8
                  

              
	
                Accepted
                  Offer Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Estimated
                  REO Closing Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Actual
                  REO Sale Date

              	
                Date/Time

              	
                8

              

      

    

     

    • Items
      in bold are MANDATORY FIELDS. We must receive information in those fields every
      month in order for your file to be accepted.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Action Code Field should show the applicable numeric code to indicate that
      a
      special action is being taken. The Action Codes are the following: 

     

    12-Relief
      Provisions

    15-Bankruptcy/Litigation
      

    20-Referred
      for Deed-in-Lieu 

    30-Referred
      fore Foreclosure 

    60-Payoff
      

    65-Repurchase
      

    70-REO-Held
      for Sale 

    71-Third
      Party Sale/Condemnation 

    72-REO-Pending
      Conveyance-Pool Insurance claim filed 

     

    Wells
      Fargo Bank will accept alternative Action Codes to those above, provided that
      the Codes are consistent with industry standards. If Action Codes other than
      those above are used, the Servicer must supply Wells Fargo Bank with a
      description of each of the Action Codes prior to sending the file. 

     

    Description
      of Action Codes: 

     

    Action
      Code 12
      - To
      report a Mortgage Loan for which the Borrower has been granted relief for curing
      a delinquency. The Action Date is the date the relief is expected to end. For
      military indulgence, it will be three months after the Borrower’s discharge from
      military service. 

     

    Action
      Code 15
      - To
      report the Borrower’s filing for bankruptcy or instituting some other type of
      litigation that will prevent or delay liquidation of the Mortgage Loan. The
      Action Date will be either the date that any repayment plan (or forbearance)
      instituted by the bankruptcy court will expire or an additional date by which
      the litigation should be resolved. 

     

    Action
      Code 20
      - To
      report that the Borrower has agreed to a deed-in-lieu or an assignment of the
      property. The Action Date is the date the Servicer decided to pursue a
      deed-in-lieu or the assignment. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Action
      Code 30
      - To
      report that the decision has been made to foreclose the Mortgage Loan. The
      Action Date is the date the Servicer referred the case to the foreclosure
      attorney.

    

    Action
      Code 60
      - To
      report that a Mortgage Loan has been paid in full either at, or prior to,
      maturity. The Action Date is the date the pay-off funds were remitted to the
      Master Servicer. 

     

    Action
      Code 65
      - To
      report that the Servicer is repurchasing the Mortgage Loan. The Action Date
      is
      the date the repurchase proceeds were remitted to the Master Servicer.

     

    Action
      Code 70
      - To
      report that a Mortgage Loan has been foreclosed or a deed-in-lieu of foreclosure
      has been accepted, and the Servicer, on behalf of the owner of the Mortgage
      Loan, has acquired the property and may dispose of it. The Action Date is the
      date of the foreclosure sale or, for deeds-in-lieu, the date the deed is
      recorded on behalf of the owner of the Mortgage Loan. 

     

    Action
      Code 71
      - To
      report that a Mortgage Loan has been foreclosed and a third party acquired
      the
      property, or a total condemnation of the property has occurred. The Action
      Date
      is the date of the foreclosure sale or the date the condemnation award was
      received. 

     

    Action
      Code 72
      - To
      report that a Mortgage Loan has been foreclosed, or a deed-in-lieu has been
      accepted, and the property may be conveyed to the mortgage insurer and the
      pool
      insurance claim has been filed. The Action Date is the date of the foreclosure
      sale, or, for deeds-in-lieu, the date of the deed for conventional mortgages.
      

     

    The
      Loss
      Mit Type field should show the approved Loss Mitigation arrangement. The
      following are acceptable: 

     

    ASUM-Approved
      Assumption 

    BAP-Borrower
      Assistance Program 

    CO-Charge
      Off 

    DIL-Deed-in-Lieu
      

    FFA-Formal
      Forbearance Agreement 

    MOD-Loan
      Modification 

    PRE-Pre-Sale
      

    SS-Short
      Sale 

    MISC-Anything
      else approved by the PMI or Pool Insurer 

     

    Wells
      Fargo Bank will accept alternative Loss Mitigation Types to those above,
      provided that they are consistent with industry standards. If Loss Mitigation
      Types other than those above are used, the Servicer must supply Wells Fargo
      Bank
      with a description of each of the Loss Mitigation Types prior to sending the
      file.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Occupant Code field should show the current status of the property. The
      acceptable codes are: 

     

    Mortgagor
      

    Tenant
      

    Unknown
      

    Vacant
      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      3A: Calculation
      of Realized Loss/Gain Form 332

    

    REALIZED
      LOSS CALCULATION INFORMATION 

     

    WELLS
      FARGO BANK, N.A. Form 332

     

    

    Calculation
      of Realized Loss 

     

    Purpose
      

     

    To
      provide the Servicer with a form for the calculation of any Realized Loss (or
      gain) as a result of a Mortgage Loan having been foreclosed and Liquidated.
      

     

    Distribution
      

     

    The
      Servicer will prepare the form in duplicate and send the original together
      with
      evidence of conveyance of title and appropriate supporting documentation to
      the
      Master Servicer with the Monthly Accounting Reports which supports the Mortgage
      Loan’s removal from the Mortgage Loan Activity Report. The Servicer will retain
      the duplicate for its own records. 

     

    Due
      Date 

     

    With
      respect to any liquidated Mortgage Loan, the form will be submitted to the
      Master Servicer no later than the date on which statements are due to the Master
      Servicer under Section 4.02 of this Agreement (the “Statement Date”) in the
      month following receipt of final liquidation proceeds and supporting
      documentation relating to such liquidated Mortgage Loan; provided, that if
      such
      Statement Date is not at least 30 days after receipt of final liquidation
      proceeds and supporting documentation relating to such liquidated Mortgage
      Loan,
      then the form will be submitted on the first Statement Date occurring after
      the
      30th
      day
      following receipt of final liquidation proceeds and supporting documentation.
      

     

    Preparation
      Instructions 

     

    The
      numbers on the form correspond with the numbers listed below. 

     

    
      	1.	
              The
                actual Unpaid Principal Balance of the Mortgage Loan.
                

            

    

     

    
      	2.	
              The
                Total Interest Due less the aggregate amount of servicing fee that
                would
                have been earned if all delinquent payments had been made as agreed.
                

            

    

    

    
      	
              3-7.
                

            	
              Complete
                as necessary. All line entries must be supported by copies of appropriate
                statements, vouchers,
                receipts, canceled checks, etc., to document the expense. Entries
                not
                properly documented
                will not be reimbursed to the
                Servicer.

            

    

     

     

    
      	
              8.
                

            	
              Accrued
                Servicing Fees based upon the Scheduled Principal Balance of the
                Mortgage
                Loan as calculated on a monthly basis.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              10.
                

            	
              The
                total of lines 1 through 9. 

            

    

     

    Credits
      

     

    
      	
              11-17.
                

            	
              Complete
                as necessary. All line entries must be supported by copies of the
                appropriate claims forms, statements, payment checks, etc. to document
                the
                credit. If the Mortgage Loan is subject to a Bankruptcy Deficiency,
                the
                difference between the Unpaid Principal Balance of the Note prior
                to the
                Bankruptcy Deficiency and the Unpaid Principal Balance as reduced
                by the
                Bankruptcy Deficiency should be input on line 16.
                

            

    

     

    
      	
              18.

            	
              The
                total of lines 11 through 17. 

            

    

     

    Total
      Realized Loss (or Amount of Any Gain) 

     

    
      	
              19.
                

            	
              The
                total derived from subtracting line 18 from 10. If the amount represents
                a
                realized gain, show the amount in parenthesis ( ).
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    WELLS
      FARGO BANK, N.A. 

     

    CALCULATION
      OF REALIZED LOSS

     

    WELLS
      FARGO BANK, N.A. Trust: ___________________________

     

    Prepared
      by: __________________ Date: _______________ 

     

    Phone:
      ______________________ 

     

    Servicer
      Loan
      No.                            
Servicer
      Name                             
Servicer
      Address 

     

    WELLS
      FARGO BANK, N.A. 

    Loan
      No._____________________________ 

    Borrower’s
      Name:________________________________________________________ 

    Property

    Address:_______________________________________________________________
      

    

    
      	
              Liquidation
                and Acquisition Expenses: 

            	 
	
              Actual
                Unpaid Principal Balance of Mortgage Loan 

            	
              $
                _______________(1) 

            
	
              Interest
                accrued at Net Rate 

            	
              ________________(2)
                

            
	
              Attorney’s
                Fees 

            	
              ________________(3)
                

            
	
              Taxes
                

            	
              ________________(4)
                

            
	
              Property
                Maintenance 

            	
              ________________(5)
                

            
	
              MI/Hazard
                Insurance Premiums 

            	
              ________________(6)
                

            
	
              Hazard
                Loss Expenses 

            	
              ________________(7)
                

            
	
              Accrued
                Servicing Fees 

            	
              ________________(8)
                

            
	
              Other
                (itemize) 

            	
              ________________(9)
                

            
	 	
              $
                _________________ 

            
	 	 
	 	 
	 	 
	
              Total
                Expenses

            	
              $
                ______________(10) 

            
	
              Credits:
                

            	 
	
              Escrow
                Balance 

            	
              $
                ______________(11) 

            
	
              HIP
                Refund 

            	
              ________________(12)
                

            
	
              Rental
                Receipts 

            	
              ________________(13)
                

            
	
              Hazard
                Loss Proceeds 

            	
              ________________(14)
                

            
	
              Primary
                Mortgage Insurance Proceeds 

            	
              ________________(15)
                

            
	
              Proceeds
                from Sale of Acquired Property 

            	
              ________________(16)
                

            
	
              Other
                (itemize) 

            	
              ________________(17)
                

            
	 	
              _________________     
                

            
	 	
              _________________     

            
	
              Total
                Credits

            	
              $________________(18)
                

            

    

    

    Total
      Realized Loss (or Amount
      of Gain)
      $________________

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      5

    

    STANDARD
      FILE LAYOUT- MASTER SERVICING 

    

    
      	
              Standard
                File Layout - Master Servicing 

            	 	 	 

    

    
      	
              Column
                Name

            	
              Description

            	
              Decimal

            	
              Format
                Comment

            	
              Max
                Size

            
	
              SER_INVESTOR_NBR

            	
              A
                value assigned by the Servicer to define a group of loans.

            	
               

            	
              Text
                up to 10 digits

            	
              20

            
	
              LOAN_NBR

            	
              A
                unique identifier assigned to each loan by the investor.

            	
               

            	
              Text
                up to 10 digits

            	
              10

            
	
              SERVICER_LOAN_NBR

            	
              A
                unique number assigned to a loan by the Servicer. This may be different
                than the LOAN_NBR.

            	
               

            	
              Text
                up to 10 digits

            	
              10

            
	
              BORROWER_NAME

            	
              The
                borrower name as received in the file. It is not separated by first
                and
                last name.

            	
               

            	
              Maximum
                length of 30 (Last, First)

            	
              30

            
	
              SCHED_PAY_AMT

            	
              Scheduled
                monthly principal and scheduled interest payment that a borrower
                is
                expected to pay, P&I constant.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              NOTE_INT_RATE

            	
              The
                loan interest rate as reported by the Servicer.

            	
              4

            	
              Max
                length of 6

            	
              6

            
	
              NET_INT_RATE

            	
              The
                loan gross interest rate less the service fee rate as reported by
                the
                Servicer.

            	
              4

            	
              Max
                length of 6

            	
              6

            
	
              SERV_FEE_RATE

            	
              The
                servicer's fee rate for a loan as reported by the Servicer.
                

            	
              4

            	
              Max
                length of 6

            	
              6

            
	
              SERV_FEE_AMT

            	
              The
                servicer's fee amount for a loan as reported by the Servicer.
                

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              NEW_PAY_AMT

            	
              The
                new loan payment amount as reported by the Servicer. 

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              NEW_LOAN_RATE

            	
              The
                new loan rate as reported by the Servicer. 

            	
              4

            	
              Max
                length of 6

            	
              6

            
	
              ARM_INDEX_RATE

            	
              The
                index the Servicer is using to calculate a forecasted
                rate.

            	
              4

            	
              Max
                length of 6

            	
              6

            
	
              ACTL_BEG_PRIN_BAL

            	
              The
                borrower's actual principal balance at the beginning of the processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              ACTL_END_PRIN_BAL

            	
              The
                borrower's actual principal balance at the end of the processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              BORR_NEXT_PAY_DUE_DATE

            	
              The
                date at the end of processing cycle that the borrower's next payment
                is
                due to the Servicer, as reported by Servicer.

            	
               

            	
              MM/DD/YYYY

            	
              10

            
	
              SERV_CURT_AMT_1

            	
              The
                first curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              Standard
                File Layout - Master Servicing 

            	 	 	 

      
        	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  Size

              

      

    

    
      	
              SERV_CURT_DATE_1

            	
              The
                curtailment date associated with the first curtailment amount.
                

            	
               

            	
              MM/DD/YYYY

            	
              10

            
	
              CURT_ADJ_
                AMT_1

            	
              The
                curtailment interest on the first curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SERV_CURT_AMT_2

            	
              The
                second curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SERV_CURT_DATE_2

            	
              The
                curtailment date associated with the second curtailment
                amount.

            	
               

            	
              MM/DD/YYYY

            	
              10

            
	
              CURT_ADJ_
                AMT_2

            	
              The
                curtailment interest on the second curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SERV_CURT_AMT_3

            	
              The
                third curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SERV_CURT_DATE_3

            	
              The
                curtailment date associated with the third curtailment
                amount.

            	
               

            	
              MM/DD/YYYY

            	
              10

            
	
              CURT_ADJ_AMT_3

            	
              The
                curtailment interest on the third curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              PIF_AMT

            	
              The
                loan "paid in full" amount as reported by the Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              PIF_DATE

            	
              The
                paid in full date as reported by the Servicer.

            	
               

            	
              MM/DD/YYYY

            	
              10

            
	
               

            	
               

            	
               

            	
              Action
                Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                65=Repurchase,70=REO 

            	
              2

            
	
              ACTION_CODE

            	
              The
                standard FNMA numeric code used to indicate the default/delinquent
                status
                of a particular loan.

            
	
              INT_ADJ_AMT

            	
              The
                amount of the interest adjustment as reported by the
                Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SOLDIER_SAILOR_ADJ_AMT

            	
              The
                Soldier and Sailor Adjustment amount, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              NON_ADV_LOAN_AMT

            	
              The
                Non Recoverable Loan Amount, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              LOAN_LOSS_AMT

            	
              The
                amount the Servicer is passing as a loss, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SCHED_BEG_PRIN_BAL

            	
              The
                scheduled outstanding principal amount due at the beginning of the
                cycle
                date to be passed through to investors.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SCHED_END_PRIN_BAL

            	
              The
                scheduled principal balance due to investors at the end of a processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              Standard
                File Layout - Master Servicing 

            	 	 	 

      
        	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  Size

              

      

    

    
      	
              SCHED_PRIN_AMT

            	
              The
                scheduled principal amount as reported by the Servicer for the current
                cycle -- only applicable for Scheduled/Scheduled Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SCHED_NET_INT

            	
              The
                scheduled gross interest amount less the service fee amount for the
                current cycle as reported by the Servicer -- only applicable for
                Scheduled/Scheduled Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              ACTL_PRIN_AMT

            	
              The
                actual principal amount collected by the Servicer for the current
                reporting cycle -- only applicable for Actual/Actual
                Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              ACTL_NET_INT

            	
              The
                actual gross interest amount less the service fee amount for the
                current
                reporting cycle as reported by the Servicer -- only applicable for
                Actual/Actual Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              PREPAY_PENALTY_
                AMT

            	
              The
                penalty amount received when a borrower prepays on his loan as reported
                by
                the Servicer. 

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              PREPAY_PENALTY_
                WAIVED

            	
              The
                prepayment penalty amount for the loan waived by the
                servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
              MOD_DATE

            	
              The
                Effective Payment Date of the Modification for the loan.

            	
               

            	
              MM/DD/YYYY

            	
              10

            
	
              MOD_TYPE

            	
              The
                Modification Type.

            	
               

            	
              Varchar
                - value can be alpha or numeric

            	
              30

            
	
              DELINQ_P&I_ADVANCE_AMT

            	
              The
                current outstanding principal and interest advances made by
                Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	 	 	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      6

    

    DATA
      REQUIREMENTS OF SERVICING ADVANCES

    INCURRED
      PRIOR TO CUT-OFF DATE

    

    

    
      	
              [LOAN
                NUMBER]

            	
              [PRE-CUT-OFF
                DATE ADVANCE AMOUNT]

            

    

    

    

    [PROVIDED
      UPON REQUEST]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]