Document:

WMPH 3 Stock

    EXHIBIT
      4.1

    COMMON
      STOCK COMMON STOCK

    NUMBER
      [LOGO OF WMPH 3, INC. APPEARS HERE] SHARES 

    INCORPORATED
      UNDER THE LAWS SEE REVERSE FOR OF THE STATE OF NEVADA 

     

     

    THIS
      CERTIFIES THAT

    IS
      THE
      OWNER OF

    FULLY
      PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK, PAR

    VALUE
      $.001 PER SHARE OF

    WMPH
      3,
      INC. (the "Corporation") transferable on the books of the Corporation by the
      holder hereof in person or by duly authorized attorney upon surrender of this
      certificate properly endorsed. This certificate and the shares represented
      hereby are issued and shall be held subject to all the provisions of the
      Certificate of Incorporation and the Bylaws and amendments thereto of the
      Corporation, to all of which the holder by acceptance hereof assents. The
      certificate is not valid until countersigned by the Transfer Agent and
      registered by the Registrar.Click here for printer-friendly pdf version
of this document with page numbering and page breaks as indicated in the Table
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activate, you will find the duplicate printer-friendly pdf version of this
document attached to this filing submission with the SEC.

 

Exhibit 4.1

WaMu ASSET ACCEPTANCE CORP.,

as Company

and

WASHINGTON MUTUAL BANK,

as Servicer

and

LASALLE BANK NATIONAL ASSOCIATION,

as Trustee

and

CHRISTIANA BANK & TRUST COMPANY,

as Delaware Trustee

POOLING AND SERVICING AGREEMENT

$814,263,307.43

Washington Mutual Asset-Backed Certificates WMABS
Series 2007-HE2 Trust

WaMu Asset Acceptance Corp.

Washington Mutual Asset-Backed
Certificates

WMABS Series 2007-HE2

Cut-Off Date:  February 1,
2007

This Pooling and
Servicing Agreement, dated as of February 1, 2007 (this
“Agreement”), is by and among WaMu Asset
Acceptance Corp., as depositor (the “Company”),
Washington Mutual Bank, as Servicer, LaSalle Bank National
Association, as trustee and supplemental interest trust trustee,
and Christiana Bank & Trust Company, as Delaware trustee. 
Capitalized terms used in this Agreement and not otherwise defined
have the meanings ascribed to such terms in Article I
hereof.

PRELIMINARY STATEMENT

 

The Company at the
Closing Date is the owner of the Mortgage Loans and the other
property being conveyed by it to the Trust. On the Closing Date,
the Company will acquire the REMIC I Regular Interests and the
Class R-1 Residual Interest from the Trust as consideration for its
transfer to the Trust of the Mortgage Loans and certain other
assets and will be the owner of the REMIC I Regular Interests and
the Class R-1 Residual Interest.  Thereafter on the Closing
Date, the Company will acquire the REMIC II Regular Interests and
the Class R-2 Residual Interest from the Trust as consideration for
its transfer to the Trust of the REMIC I Regular Interests and will
be the owner of the REMIC II Regular Interests and the Class R-2
Residual Interest.  Thereafter on the Closing Date, the
Company will acquire the Certificates (other than the Class P
Certificates and the Class C Certificates), the Class L3-C Regular
Interest, the Class L3-P Regular Interest, the Class L3-SW Regular
Interest, and the Class R-3 Residual Interest from the Trust as
consideration for its transfer to the Trust of the REMIC II Regular
Interests and will be the owner of those Certificates and Regular
and Residual Interests.  Thereafter on the Closing Date, the
Company will acquire the Class C Certificates and the Class R-4
Residual Interest as consideration for its transfer to the Trust of
the Class L3-C Regular Interest and will be the owner of the Class
C Certificates and the Class R-4 Residual Interest. 
Thereafter on the Closing Date, the Company will acquire the Class
P Certificates and the Class R-5 Residual Interest as consideration
for its transfer to the Trust of the Class L3-P Regular Interest
and will be the owner of the Class P Certificates and the Class R-5
Residual Interest.  Thereafter on the Closing Date, the
Company will acquire the Class L6-SW Regular Interest and the Class
R-6 Residual Interest as consideration for its transfer to the
Trust of the Class L3-SW Regular Interest and will be the owner of
the Class L6-SW Regular Interest and the Class R-6 Residual
Interest.  The Company has duly authorized the execution and
delivery of this Agreement to provide for (i) the conveyance to the
Trust of the Mortgage Loans and certain other assets, (ii) the
issuance to the Company of the REMIC I Regular Interests and the
Class R-1 Residual Interest representing in the aggregate the
entire beneficial interest in REMIC I, (iii) the conveyance to
the Trust of the REMIC I Regular Interests, (iv) the issuance to
the Company of the REMIC II Regular Interests and the Class R-2
Residual Interest representing in the aggregate the entire
beneficial interest in REMIC II, (v) the conveyance to the Trust of
the REMIC II Regular Interests, (vi) the issuance to the Company of
the Certificates (other than the Class C and Class P Certificates),
the Class L3-C Regular Interest, the Class L3-P Regular Interest,
the Class L3-SW Regular Interest, and the Class R-3 Residual
Interest, representing in the aggregate the entire beneficial
interest in REMIC III, (vii) the conveyance to the Trust of the
Class L3-C Regular Interest, (viii) the issuance to the Company of
the Class C Certificates and the Class R-4 Residual Interest,
representing in the aggregate the entire beneficial interest in
REMIC IV, (ix) the conveyance to the Trust of the Class L3-P
Regular Interest, (x) the issuance to the Company of the Class P
Certificates and the Class R-5 Residual Interest, representing in
the aggregate the entire beneficial interest in REMIC V,
(xi) the conveyance to the Trust of the Class L3-SW Regular
Interest, (x) the issuance to the Company of the L6-SW Regular
Interest and the Class R-6 Residual Interest, representing in the
aggregate the entire beneficial interest in REMIC VI.  The
Company and the Servicer are entering into this Agreement, and the
Trustee and the Delaware Trustee are each accepting the trust
created hereby, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged.

The Certificates
issued hereunder, other than the Class C Certificates, the Class P
Certificates and the Residual Certificates, have been offered for
sale pursuant to a Prospectus, dated February 13, 2007, and a
Prospectus Supplement, dated March 7, 2007, of the Company
(together, the “Prospectus”). The Trust created
hereunder is the “Trust” described in the Prospectus
and the Certificates are the “Certificates” described
therein. The following tables set forth the designation, type of
interest, Certificate Interest Rate or Pass-Through Rate, initial
Class Principal Balance, initial Certificate Principal Balance and
Assumed Final Maturity Date for the REMIC I Regular Interests, the
REMIC II Regular Interests, the REMIC III Regular Interests, the
Class L6-SW Regular Interest, the Certificates and the Residual
Interests:

REMIC I Interests

	

Class
Designation for each Class of REMIC I Regular Interests and the
Class R-1 Residual Interest

	

Type of
Interest

	

Certificate
Interest

 Rate

	

Initial
Class

 Principal

 Balance

	

Rate Change
Date

	

Assumed

 Final Maturity Date(1)

	
Class L1-Y-X

	
Regular

	
Variable (2)

	
100,250,870.74

	
 

	
February 2047

	
Class L1-Y-1A

	
Regular

	
Variable (3)

	
2,277,768.14

	
April 2007

	
February
2047

	
Class L1-Y-1B

	
Regular

	
Variable (4)

	
2,277,768.14

	
 

	
February
2047

	
Class L1-Y-2A

	
Regular

	
Variable (3)

	
2,644,127.25

	
May 2007

	
February
2047

	
Class L1-Y-2B

	
Regular

	
Variable (4)

	
2,644,127.25

	
 

	
February
2047

	
Class L1-Y-3A

	
Regular

	
Variable (3)

	
2,946,450.50

	
June 2007

	
February
2047

	
Class L1-Y-3B

	
Regular

	
Variable (4)

	
2,946,450.50

	
 

	
February
2047

	
Class L1-Y-4A

	
Regular

	
Variable (3)

	
3,181,018.81

	
July 2007

	
February
2047

	
Class L1-Y-4B

	
Regular

	
Variable (4)

	
3,181,018.81

	
 

	
February
2047

	
Class L1-Y-5A

	
Regular

	
Variable (3)

	
1,821,309.72

	
August 2007

	
February
2047

	
Class L1-Y-5B

	
Regular

	
Variable (4)

	
1,821,309.72

	
 

	
February
2047

	
Class L1-Y-6A

	
Regular

	
Variable (3)

	
2,069,587.00

	
September 2007

	
February
2047

	
Class L1-Y-6B

	
Regular

	
Variable (4)

	
2,069,587.00

	
 

	
February
2047

	
Class L1-Y-7A

	
Regular

	
Variable (3)

	
2,318,552.48

	
October 2007

	
February
2047

	
Class L1-Y-7B

	
Regular

	
Variable (4)

	
2,318,552.48

	
 

	
February
2047

	
Class L1-Y-8A

	
Regular

	
Variable (3)

	
2,979,613.88

	
November 2007

	
February
2047

	
Class L1-Y-8B

	
Regular

	
Variable (4)

	
2,979,613.88

	
 

	
February
2047

	
Class L1-Y-9A

	
Regular

	
Variable (3)

	
3,895,152.71

	
December 2007

	
February
2047

	
Class L1-Y-9B

	
Regular

	
Variable (4)

	
3,895,152.71

	
 

	
February
2047

	
Class L1-Y-10A

	
Regular

	
Variable (3)

	
4,380,773.86

	
January 2008

	
February
2047

	
Class L1-Y-10B

	
Regular

	
Variable (4)

	
4,380,773.86

	
 

	
February
2047

	
Class L1-Y-11A

	
Regular

	
Variable (3)

	
4,317,869.17

	
February 2008

	
February
2047

	
Class L1-Y-11B

	
Regular

	
Variable (4)

	
4,317,869.17

	
 

	
February
2047

	
Class L1-Y-12A

	
Regular

	
Variable (3)

	
4,031,444.26

	
March 2008

	
February
2047

	
Class L1-Y-12B

	
Regular

	
Variable (4)

	
4,031,444.26

	
 

	
February
2047

	
Class L1-Y-13A

	
Regular

	
Variable (3)

	
3,730,937.84

	
April 2008

	
February
2047

	
Class L1-Y-13B

	
Regular

	
Variable (4)

	
3,730,937.84

	
 

	
February
2047

	
Class L1-Y-14A

	
Regular

	
Variable (3)

	
3,463,676.99

	
May 2008

	
February
2047

	
Class L1-Y-14B

	
Regular

	
Variable (4)

	
3,463,676.99

	
 

	
February
2047

	
Class L1-Y-15A

	
Regular

	
Variable (3)

	
3,212,682.63

	
June 2008

	
February
2047

	
Class L1-Y-15B

	
Regular

	
Variable (4)

	
3,212,682.63

	
 

	
February
2047

	
Class L1-Y-16A

	
Regular

	
Variable (3)

	
3,010,760.12

	
July 2008

	
February
2047

	
Class L1-Y-16B

	
Regular

	
Variable (4)

	
3,010,760.12

	
 

	
February
2047

	
Class L1-Y-17A

	
Regular

	
Variable (3)

	
2,862,817.95

	
August 2008

	
February
2047

	
Class L1-Y-17B

	
Regular

	
Variable (4)

	
2,862,817.95

	
 

	
February
2047

	
Class L1-Y-18A

	
Regular

	
Variable (3)

	
2,701,274.32

	
September 2008

	
February
2047

	
Class L1-Y-18B

	
Regular

	
Variable (4)

	
2,701,274.32

	
 

	
February
2047

	
Class L1-Y-19A

	
Regular

	
Variable (3)

	
2,551,498.52

	
October 2008

	
February
2047

	
Class L1-Y-19B

	
Regular

	
Variable (4)

	
2,551,498.52

	
 

	
February
2047

	
Class L1-Y-20A

	
Regular

	
Variable (3)

	
3,620,263.08

	
November 2008

	
February
2047

	
Class L1-Y-20B

	
Regular

	
Variable (4)

	
3,620,263.08

	
 

	
February
2047

	
Class L1-Y-21A

	
Regular

	
Variable (3)

	
4,665,335.90

	
December 2008

	
February
2047

	
Class L1-Y-21B

	
Regular

	
Variable (4)

	
4,665,335.90

	
 

	
February
2047

	
Class L1-Y-22A

	
Regular

	
Variable (3)

	
26,877,814.94

	
January 2009

	
February
2047

	
Class L1-Y-22B

	
Regular

	
Variable (4)

	
26,877,814.94

	
 

	
February
2047

	
Class L1-Y-23A

	
Regular

	
Variable (3)

	
3,922,450.72

	
February 2009

	
February
2047

	
Class L1-Y-23B

	
Regular

	
Variable (4)

	
3,922,450.72

	
 

	
February
2047

	
Class L1-Y-24A

	
Regular

	
Variable (3)

	
3,068,625.08

	
March 2009

	
February
2047

	
Class L1-Y-24B

	
Regular

	
Variable (4)

	
3,068,625.08

	
 

	
February
2047

	
Class L1-Y-25A

	
Regular

	
Variable (3)

	
2,540,012.97

	
April 2009

	
February
2047

	
Class L1-Y-25B

	
Regular

	
Variable (4)

	
2,540,012.97

	
 

	
February
2047

	
Class L1-Y-26A

	
Regular

	
Variable (3)

	
2,189,212.36

	
May 2009

	
February
2047

	
Class L1-Y-26B

	
Regular

	
Variable (4)

	
2,189,212.36

	
 

	
February
2047

	
Class L1-Y-27A

	
Regular

	
Variable (3)

	
1,936,425.81

	
June 2009

	
February
2047

	
Class L1-Y-27B

	
Regular

	
Variable (4)

	
1,936,425.81

	
 

	
February
2047

	
Class L1-Y-28A

	
Regular

	
Variable (3)

	
1,754,088.24

	
July 2009

	
February
2047

	
Class L1-Y-28B

	
Regular

	
Variable (4)

	
1,754,088.24

	
 

	
February
2047

	
Class L1-Y-29A

	
Regular

	
Variable (3)

	
1,617,899.39

	
August 2009

	
February
2047

	
Class L1-Y-29B

	
Regular

	
Variable (4)

	
1,617,899.39

	
 

	
February
2047

	
Class L1-Y-30A

	
Regular

	
Variable (3)

	
92,044.39

	
September 2009

	
February
2047

	
Class L1-Y-30B

	
Regular

	
Variable (4)

	
92,044.39

	
 

	
February
2047

	
Class L1-Y-31A

	
Regular

	
Variable (3)

	
92,044.16

	
October 2009

	
February
2047

	
Class L1-Y-31B

	
Regular

	
Variable (4)

	
92,044.16

	
 

	
February
2047

	
Class L1-Y-32A

	
Regular

	
Variable (3)

	
627,741.92

	
November 2009

	
February
2047

	
Class L1-Y-32B

	
Regular

	
Variable (4)

	
627,741.92

	
 

	
February
2047

	
Class L1-Y-33A

	
Regular

	
Variable (3)

	
1,434,852.45

	
December 2009

	
February
2047

	
Class L1-Y-33B

	
Regular

	
Variable (4)

	
1,434,852.45

	
 

	
February
2047

	
Class L1-Y-34A

	
Regular

	
Variable (3)

	
1,367,510.80

	
January 2010

	
February
2047

	
Class L1-Y-34B

	
Regular

	
Variable (4)

	
1,367,510.80

	
 

	
February
2047

	
Class L1-Y-35A

	
Regular

	
Variable (3)

	
1,269,599.42

	
February 2010

	
February
2047

	
Class L1-Y-35B

	
Regular

	
Variable (4)

	
1,269,599.42

	
 

	
February
2047

	
Class L1-Y-36A

	
Regular

	
Variable (3)

	
1,915,321.51

	
March 2010

	
February
2047

	
Class L1-Y-36B

	
Regular

	
Variable (4)

	
1,915,321.51

	
 

	
February
2047

	
Class L1-Y-37A

	
Regular

	
Variable (3)

	
1,044,616.25

	
April 2010

	
February
2047

	
Class L1-Y-37B

	
Regular

	
Variable (4)

	
1,044,616.25

	
 

	
February
2047

	
Class L1-Y-38A

	
Regular

	
Variable (3)

	
972,792.27

	
May 2010

	
February
2047

	
Class L1-Y-38B

	
Regular

	
Variable (4)

	
972,792.27

	
 

	
February
2047

	
Class L1-Y-39A

	
Regular

	
Variable (3)

	
903,283.82

	
June 2010

	
February
2047

	
Class L1-Y-39B

	
Regular

	
Variable (4)

	
903,283.82

	
 

	
February
2047

	
Class L1-Y-40A

	
Regular

	
Variable (3)

	
837,829.45

	
July 2010

	
February
2047

	
Class L1-Y-40B

	
Regular

	
Variable (4)

	
837,829.45

	
 

	
February
2047

	
Class L1-Y-41A

	
Regular

	
Variable (3)

	
780,349.45

	
August 2010

	
February
2047

	
Class L1-Y-41B

	
Regular

	
Variable (4)

	
780,349.45

	
 

	
February
2047

	
Class L1-Y-42A

	
Regular

	
Variable (3)

	
717,480.22

	
September 2010

	
February
2047

	
Class L1-Y-42B

	
Regular

	
Variable (4)

	
717,480.22

	
 

	
February
2047

	
Class L1-Y-43A

	
Regular

	
Variable (3)

	
645,688.24

	
October 2010

	
February
2047

	
Class L1-Y-43B

	
Regular

	
Variable (4)

	
645,688.24

	
 

	
February
2047

	
Class L1-Y-44A

	
Regular

	
Variable (3)

	
608,455.82

	
November 2010

	
February
2047

	
Class L1-Y-44B

	
Regular

	
Variable (4)

	
608,455.82

	
 

	
February
2047

	
Class L1-Y-45A

	
Regular

	
Variable (3)

	
574,781.08

	
December 2010

	
February
2047

	
Class L1-Y-45B

	
Regular

	
Variable (4)

	
574,781.08

	
 

	
February
2047

	
Class L1-Y-46A

	
Regular

	
Variable (3)

	
546,886.99

	
January 2011

	
February
2047

	
Class L1-Y-46B

	
Regular

	
Variable (4)

	
546,886.99

	
 

	
February
2047

	
Class L1-Y-47A

	
Regular

	
Variable (3)

	
519,983.16

	
February 2011

	
February
2047

	
Class L1-Y-47B

	
Regular

	
Variable (4)

	
519,983.16

	
 

	
February
2047

	
Class L1-Y-48A

	
Regular

	
Variable (3)

	
503,544.68

	
March 2011

	
February
2047

	
Class L1-Y-48B

	
Regular

	
Variable (4)

	
503,544.68

	
 

	
February
2047

	
Class L1-Y-49A

	
Regular

	
Variable (3)

	
474,602.07

	
April 2011

	
February
2047

	
Class L1-Y-49B

	
Regular

	
Variable (4)

	
474,602.07

	
 

	
February
2047

	
Class L1-Y-50A

	
Regular

	
Variable (3)

	
457,650.15

	
May 2011

	
February
2047

	
Class L1-Y-50B

	
Regular

	
Variable (4)

	
457,650.15

	
 

	
February
2047

	
Class L1-Y-51A

	
Regular

	
Variable (3)

	
435,637.09

	
June 2011

	
February
2047

	
Class L1-Y-51B

	
Regular

	
Variable (4)

	
435,637.09

	
 

	
February
2047

	
Class L1-Y-52A

	
Regular

	
Variable (3)

	
417,464.44

	
July 2011

	
February
2047

	
Class L1-Y-52B

	
Regular

	
Variable (4)

	
417,464.44

	
 

	
February
2047

	
Class L1-Y-53A

	
Regular

	
Variable (3)

	
396,390.30

	
August 2011

	
February
2047

	
Class L1-Y-53B

	
Regular

	
Variable (4)

	
396,390.30

	
 

	
February
2047

	
Class L1-Y-54A

	
Regular

	
Variable (3)

	
377,340.43

	
September 2011

	
February
2047

	
Class L1-Y-54B

	
Regular

	
Variable (4)

	
377,340.43

	
 

	
February
2047

	
Class L1-Y-55A

	
Regular

	
Variable (3)

	
443,907.56

	
October 2011

	
February
2047

	
Class L1-Y-55B

	
Regular

	
Variable (4)

	
443,907.56

	
 

	
February
2047

	
Class L1-Y-56A

	
Regular

	
Variable (3)

	
412,465.00

	
November 2011

	
February
2047

	
Class L1-Y-56B

	
Regular

	
Variable (4)

	
412,465.00

	
 

	
February
2047

	
Class L1-Y-57A

	
Regular

	
Variable (3)

	
451,544.17

	
December 2011

	
February
2047

	
Class L1-Y-57B

	
Regular

	
Variable (4)

	
451,544.17

	
 

	
February
2047

	
Class L1-Y-58A

	
Regular

	
Variable (3)

	
440,886.57

	
January 2012

	
February
2047

	
Class L1-Y-58B

	
Regular

	
Variable (4)

	
440,886.57

	
 

	
February
2047

	
Class L1-Y-59A

	
Regular

	
Variable (3)

	
6,998,800.13

	
February 2012

	
February
2047

	
Class L1-Y-59B

	
Regular

	
Variable (4)

	
6,998,800.13

	
 

	
February
2047

	
Class L1-Z-X

	
Regular

	
Variable (2)

	
117,458,176.26

	
 

	
February
2047

	
Class L1-Z-1A

	
Regular

	
Variable (3)

	
2,668,729.86

	
April 2007

	
February
2047

	
Class L1-Z-1B

	
Regular

	
Variable (4)

	
2,668,729.86

	
 

	
February
2047

	
Class L1-Z-2A

	
Regular

	
Variable (3)

	
3,097,971.75

	
May 2007

	
February
2047

	
Class L1-Z-2B

	
Regular

	
Variable (4)

	
3,097,971.75

	
 

	
February
2047

	
Class L1-Z-3A

	
Regular

	
Variable (3)

	
3,452,186.50

	
June 2007

	
February
2047

	
Class L1-Z-3B

	
Regular

	
Variable (4)

	
3,452,186.50

	
 

	
February
2047

	
Class L1-Z-4A

	
Regular

	
Variable (3)

	
3,727,016.69

	
July 2007

	
February
2047

	
Class L1-Z-4B

	
Regular

	
Variable (4)

	
3,727,016.69

	
 

	
February
2047

	
Class L1-Z-5A

	
Regular

	
Variable (3)

	
2,133,923.78

	
August 2007

	
February
2047

	
Class L1-Z-5B

	
Regular

	
Variable (4)

	
2,133,923.78

	
 

	
February
2047

	
Class L1-Z-6A

	
Regular

	
Variable (3)

	
2,424,816.00

	
September 2007

	
February
2047

	
Class L1-Z-6B

	
Regular

	
Variable (4)

	
2,424,816.00

	
 

	
February
2047

	
Class L1-Z-7A

	
Regular

	
Variable (3)

	
2,716,514.52

	
October 2007

	
February
2047

	
Class L1-Z-7B

	
Regular

	
Variable (4)

	
2,716,514.52

	
 

	
February
2047

	
Class L1-Z-8A

	
Regular

	
Variable (3)

	
3,491,042.12

	
November 2007

	
February
2047

	
Class L1-Z-8B

	
Regular

	
Variable (4)

	
3,491,042.12

	
 

	
February
2047

	
Class L1-Z-9A

	
Regular

	
Variable (3)

	
4,563,726.29

	
December 2007

	
February
2047

	
Class L1-Z-9B

	
Regular

	
Variable (4)

	
4,563,726.29

	
 

	
February
2047

	
Class L1-Z-10A

	
Regular

	
Variable (3)

	
5,132,700.64

	
January 2008

	
February
2047

	
Class L1-Z-10B

	
Regular

	
Variable (4)

	
5,132,700.64

	
 

	
February
2047

	
Class L1-Z-11A

	
Regular

	
Variable (3)

	
5,058,998.83

	
February 2008

	
February
2047

	
Class L1-Z-11B

	
Regular

	
Variable (4)

	
5,058,998.83

	
 

	
February
2047

	
Class L1-Z-12A

	
Regular

	
Variable (3)

	
4,723,411.24

	
March 2008

	
February
2047

	
Class L1-Z-12B

	
Regular

	
Variable (4)

	
4,723,411.24

	
 

	
February
2047

	
Class L1-Z-13A

	
Regular

	
Variable (3)

	
4,371,325.16

	
April 2008

	
February
2047

	
Class L1-Z-13B

	
Regular

	
Variable (4)

	
4,371,325.16

	
 

	
February
2047

	
Class L1-Z-14A

	
Regular

	
Variable (3)

	
4,058,191.01

	
May 2008

	
February
2047

	
Class L1-Z-14B

	
Regular

	
Variable (4)

	
4,058,191.01

	
 

	
February
2047

	
Class L1-Z-15A

	
Regular

	
Variable (3)

	
3,764,115.37

	
June 2008

	
February
2047

	
Class L1-Z-15B

	
Regular

	
Variable (4)

	
3,764,115.37

	
 

	
February
2047

	
Class L1-Z-16A

	
Regular

	
Variable (3)

	
3,527,534.38

	
July 2008

	
February
2047

	
Class L1-Z-16B

	
Regular

	
Variable (4)

	
3,527,534.38

	
 

	
February
2047

	
Class L1-Z-17A

	
Regular

	
Variable (3)

	
3,354,199.05

	
August 2008

	
February
2047

	
Class L1-Z-17B

	
Regular

	
Variable (4)

	
3,354,199.05

	
 

	
February
2047

	
Class L1-Z-18A

	
Regular

	
Variable (3)

	
3,164,927.68

	
September 2008

	
February
2047

	
Class L1-Z-18B

	
Regular

	
Variable (4)

	
3,164,927.68

	
 

	
February
2047

	
Class L1-Z-19A

	
Regular

	
Variable (3)

	
2,989,443.98

	
October 2008

	
February
2047

	
Class L1-Z-19B

	
Regular

	
Variable (4)

	
2,989,443.98

	
 

	
February
2047

	
Class L1-Z-20A

	
Regular

	
Variable (3)

	
4,241,653.92

	
November 2008

	
February
2047

	
Class L1-Z-20B

	
Regular

	
Variable (4)

	
4,241,653.92

	
 

	
February
2047

	
Class L1-Z-21A

	
Regular

	
Variable (3)

	
5,466,105.60

	
December 2008

	
February
2047

	
Class L1-Z-21B

	
Regular

	
Variable (4)

	
5,466,105.60

	
 

	
February
2047

	
Class L1-Z-22A

	
Regular

	
Variable (3)

	
31,491,189.06

	
January 2009

	
February
2047

	
Class L1-Z-22B

	
Regular

	
Variable (4)

	
31,491,189.06

	
 

	
February
2047

	
Class L1-Z-23A

	
Regular

	
Variable (3)

	
4,595,709.78

	
February 2009

	
February
2047

	
Class L1-Z-23B

	
Regular

	
Variable (4)

	
4,595,709.78

	
 

	
February
2047

	
Class L1-Z-24A

	
Regular

	
Variable (3)

	
3,595,331.42

	
March 2009

	
February
2047

	
Class L1-Z-24B

	
Regular

	
Variable (4)

	
3,595,331.42

	
 

	
February
2047

	
Class L1-Z-25A

	
Regular

	
Variable (3)

	
2,975,987.03

	
April 2009

	
February
2047

	
Class L1-Z-25B

	
Regular

	
Variable (4)

	
2,975,987.03

	
 

	
February
2047

	
Class L1-Z-26A

	
Regular

	
Variable (3)

	
2,564,974.14

	
May 2009

	
February
2047

	
Class L1-Z-26B

	
Regular

	
Variable (4)

	
2,564,974.14

	
 

	
February
2047

	
Class L1-Z-27A

	
Regular

	
Variable (3)

	
2,268,798.69

	
June 2009

	
February
2047

	
Class L1-Z-27B

	
Regular

	
Variable (4)

	
2,268,798.69

	
 

	
February
2047

	
Class L1-Z-28A

	
Regular

	
Variable (3)

	
2,055,164.26

	
July 2009

	
February
2047

	
Class L1-Z-28B

	
Regular

	
Variable (4)

	
2,055,164.26

	
 

	
February
2047

	
Class L1-Z-29A

	
Regular

	
Variable (3)

	
1,895,599.61

	
August 2009

	
February
2047

	
Class L1-Z-29B

	
Regular

	
Variable (4)

	
1,895,599.61

	
 

	
February
2047

	
Class L1-Z-30A

	
Regular

	
Variable (3)

	
107,843.11

	
September 2009

	
February
2047

	
Class L1-Z-30B

	
Regular

	
Variable (4)

	
107,843.11

	
 

	
February
2047

	
Class L1-Z-31A

	
Regular

	
Variable (3)

	
107,842.84

	
October 2009

	
February
2047

	
Class L1-Z-31B

	
Regular

	
Variable (4)

	
107,842.84

	
 

	
February
2047

	
Class L1-Z-32A

	
Regular

	
Variable (3)

	
735,489.08

	
November 2009

	
February
2047

	
Class L1-Z-32B

	
Regular

	
Variable (4)

	
735,489.08

	
 

	
February
2047

	
Class L1-Z-33A

	
Regular

	
Variable (3)

	
1,681,134.05

	
December 2009

	
February
2047

	
Class L1-Z-33B

	
Regular

	
Variable (4)

	
1,681,134.05

	
 

	
February
2047

	
Class L1-Z-34A

	
Regular

	
Variable (3)

	
1,602,233.70

	
January 2010

	
February
2047

	
Class L1-Z-34B

	
Regular

	
Variable (4)

	
1,602,233.70

	
 

	
February
2047

	
Class L1-Z-35A

	
Regular

	
Variable (3)

	
1,487,516.58

	
February 2010

	
February
2047

	
Class L1-Z-35B

	
Regular

	
Variable (4)

	
1,487,516.58

	
 

	
February
2047

	
Class L1-Z-36A

	
Regular

	
Variable (3)

	
2,244,071.99

	
March 2010

	
February
2047

	
Class L1-Z-36B

	
Regular

	
Variable (4)

	
2,244,071.99

	
 

	
February
2047

	
Class L1-Z-37A

	
Regular

	
Variable (3)

	
1,223,916.75

	
April 2010

	
February
2047

	
Class L1-Z-37B

	
Regular

	
Variable (4)

	
1,223,916.75

	
 

	
February
2047

	
Class L1-Z-38A

	
Regular

	
Variable (3)

	
1,139,764.73

	
May 2010

	
February
2047

	
Class L1-Z-38B

	
Regular

	
Variable (4)

	
1,139,764.73

	
 

	
February
2047

	
Class L1-Z-39A

	
Regular

	
Variable (3)

	
1,058,325.68

	
June 2010

	
February
2047

	
Class L1-Z-39B

	
Regular

	
Variable (4)

	
1,058,325.68

	
 

	
February
2047

	
Class L1-Z-40A

	
Regular

	
Variable (3)

	
981,636.55

	
July 2010

	
February
2047

	
Class L1-Z-40B

	
Regular

	
Variable (4)

	
981,636.55

	
 

	
February
2047

	
Class L1-Z-41A

	
Regular

	
Variable (3)

	
914,290.55

	
August 2010

	
February
2047

	
Class L1-Z-41B

	
Regular

	
Variable (4)

	
914,290.55

	
 

	
February
2047

	
Class L1-Z-42A

	
Regular

	
Variable (3)

	
840,630.28

	
September 2010

	
February
2047

	
Class L1-Z-42B

	
Regular

	
Variable (4)

	
840,630.28

	
 

	
February
2047

	
Class L1-Z-43A

	
Regular

	
Variable (3)

	
756,515.76

	
October 2010

	
February
2047

	
Class L1-Z-43B

	
Regular

	
Variable (4)

	
756,515.76

	
 

	
February
2047

	
Class L1-Z-44A

	
Regular

	
Variable (3)

	
712,892.68

	
November 2010

	
February
2047

	
Class L1-Z-44B

	
Regular

	
Variable (4)

	
712,892.68

	
 

	
February
2047

	
Class L1-Z-45A

	
Regular

	
Variable (3)

	
673,437.92

	
December 2010

	
February
2047

	
Class L1-Z-45B

	
Regular

	
Variable (4)

	
673,437.92

	
 

	
February
2047

	
Class L1-Z-46A

	
Regular

	
Variable (3)

	
640,756.01

	
January 2011

	
February
2047

	
Class L1-Z-46B

	
Regular

	
Variable (4)

	
640,756.01

	
 

	
February
2047

	
Class L1-Z-47A

	
Regular

	
Variable (3)

	
609,234.34

	
February 2011

	
February
2047

	
Class L1-Z-47B

	
Regular

	
Variable (4)

	
609,234.34

	
 

	
February
2047

	
Class L1-Z-48A

	
Regular

	
Variable (3)

	
589,974.32

	
March 2011

	
February
2047

	
Class L1-Z-48B

	
Regular

	
Variable (4)

	
589,974.32

	
 

	
February
2047

	
Class L1-Z-49A

	
Regular

	
Variable (3)

	
556,063.93

	
April 2011

	
February
2047

	
Class L1-Z-49B

	
Regular

	
Variable (4)

	
556,063.93

	
 

	
February
2047

	
Class L1-Z-50A

	
Regular

	
Variable (3)

	
536,202.35

	
May 2011

	
February
2047

	
Class L1-Z-50B

	
Regular

	
Variable (4)

	
536,202.35

	
 

	
February
2047

	
Class L1-Z-51A

	
Regular

	
Variable (3)

	
510,410.91

	
June 2011

	
February
2047

	
Class L1-Z-51B

	
Regular

	
Variable (4)

	
510,410.91

	
 

	
February
2047

	
Class L1-Z-52A

	
Regular

	
Variable (3)

	
489,119.06

	
July 2011

	
February
2047

	
Class L1-Z-52B

	
Regular

	
Variable (4)

	
489,119.06

	
 

	
February
2047

	
Class L1-Z-53A

	
Regular

	
Variable (3)

	
464,427.70

	
August 2011

	
February
2047

	
Class L1-Z-53B

	
Regular

	
Variable (4)

	
464,427.70

	
 

	
February
2047

	
Class L1-Z-54A

	
Regular

	
Variable (3)

	
442,108.07

	
September 2011

	
February
2047

	
Class L1-Z-54B

	
Regular

	
Variable (4)

	
442,108.07

	
 

	
February
2047

	
Class L1-Z-55A

	
Regular

	
Variable (3)

	
520,100.94

	
October 2011

	
February
2047

	
Class L1-Z-55B

	
Regular

	
Variable (4)

	
520,100.94

	
 

	
February
2047

	
Class L1-Z-56A

	
Regular

	
Variable (3)

	
483,261.50

	
November 2011

	
February
2047

	
Class L1-Z-56B

	
Regular

	
Variable (4)

	
483,261.50

	
 

	
February
2047

	
Class L1-Z-57A

	
Regular

	
Variable (3)

	
529,048.33

	
December 2011

	
February
2047

	
Class L1-Z-57B

	
Regular

	
Variable (4)

	
529,048.33

	
 

	
February
2047

	
Class L1-Z-58A

	
Regular

	
Variable (3)

	
516,561.43

	
January 2012

	
February
2047

	
Class L1-Z-58B

	
Regular

	
Variable (4)

	
516,561.43

	
 

	
February
2047

	
Class L1-Z-59A

	
Regular

	
Variable (3)

	
8,200,091.37

	
February 2012

	
February
2047

	
Class L1-Z-59B

	
Regular

	
Variable (4)

	
8,200,091.37

	
 

	
February
2047

	
Class R-1 (7)

	
Residual

	
 

	
-----

	
 

	
February
2047

 (1)          
The Distribution Date in the specified month, which is the month
following the month the latest maturing Mortgage Loan in the
related Loan Group (or Loan Groups, as applicable) matures. 
For federal income tax purposes, for each Class of REMIC I Regular
and Residual Interests, the “latest possible maturity
date” shall be the Assumed Final Maturity Date.

(2)          
The Class L1-Y-X shall accrue interest at a
per annum rate equal to the weighted average of the Adjusted Net
Mortgage Rates of the Group I Loans.

(3)           Each REMIC I Group I Regular Interest ending with
the designation “A” shall accrue interest at a per
annum rate equal to the weighted average of the Adjusted Net
Mortgage Rates of the Group I Loans multiplied by 2, subject to a
maximum rate of two times the Swap Rate.  Each REMIC I Group
II Regular Interest ending with the designation “A”
shall accrue interest at a per annum rate equal to the weighted
average of the Adjusted Net Mortgage Rates of the Group II Loans
multiplied by 2, subject to a maximum rate of two times the Swap
Rate.

(4)          
Each REMIC I Group I Regular Interest ending with the designation
“B” shall accrue interest at a per annum rate equal to
the greater of (x) the excess, if any, of (i) 2 multiplied by the
weighted average of the Adjusted Net Mortgage Rates of the Group I
Loans over (ii) two times the Swap Rate and (y) 0.00%.  Each
REMIC I Group II Regular Interest ending with the designation
“B” shall accrue interest at a per annum rate equal to
the greater of (x) the excess, if any, of (i) 2 multiplied by the
weighted average of the Adjusted Net Mortgage Rates of the Group II
Loans over (ii) two times the Swap Rate and (y) 0.00%.

(5)          
The Class L1-Z-X shall accrue interest at a per annum rate equal to
the weighted average of the Adjusted Net Mortgage Rates of the
Group II Loans.

(6)          
The Class R-1 Residual Interest will not be entitled to receive any
distributions of interest or principal.

 For purposes of
calculating the Certificate Interest Rate of any REMIC I Regular
Interest for any Distribution Date under the foregoing table, the
weighted average of the Adjusted Net Mortgage Rates of the Group I
or Group II Mortgage Loans shall be determined (i) on the basis of
the Stated Principal Balances of the Mortgage Loans as of the first
day of the month preceding such Distribution Date and (ii) by
excluding from the determination any Mortgage Loan that was prepaid
in full on or after the first day of the month preceding such
Distribution Date and before the 15th day of such month.

As provided herein,
with respect to REMIC I, the Trustee will cause an election to be
made on behalf of REMIC I to be treated for federal income tax
purposes as a REMIC. The REMIC I Regular Interests will be
designated regular interests in REMIC I and the Class R-1 Residual
Interest will be designated the sole class of residual interest in
REMIC I, for purposes of the REMIC Provisions.

REMIC II
Interests

	

Class
Designation for each Class of REMIC II Regular Interests and the
Class R-2 Residual Interest

	

Type of
Interest

	

Certificate
Interest

 Rate

	

Initial
Class

 Principal

 Balance

	

Assumed

 Final Maturity

 Date(1)

	
Class L2-XX

	
Regular

	
Variable
(2)

	
$398,989,019.94

	
February
2047

	
Class L2-1-A

	
Regular

	
Variable
(2)

	
1,431,380.00

	
February
2047

	
Class L2-2-A1

	
Regular

	
Variable
(2)

	
895,515.00

	
February
2047

	
Class L2-2-A2

	
Regular

	
Variable
(2)

	
696,205.00

	
February
2047

	
Class L2-2-A3

	
Regular

	
Variable
(2)

	
85,350.00

	
February
2047

	
Class L2-M1

	
Regular

	
Variable
(2)

	
156,745.00

	
February
2047

	
Class L2-M2

	
Regular

	
Variable
(2)

	
148,605.00

	
February
2047

	
Class L2-M3

	
Regular

	
Variable
(2)

	
87,535.00

	
February
2047

	
Class L2-M4

	
Regular

	
Variable
(2)

	
75,320.00

	
February
2047

	
Class L2-M5

	
Regular

	
Variable
(2)

	
75,320.00

	
February
2047

	
Class L2-M6

	
Regular

	
Variable
(2)

	
65,140.00

	
February
2047

	
Class L2-M7

	
Regular

	
Variable
(2)

	
65,140.00

	
February
2047

	
Class L2-M8

	
Regular

	
Variable
(2)

	
57,000.00

	
February
2047

	
Class L2-M9

	
Regular

	
Variable
(2)

	
54,965.00

	
February
2047

	
Class L2-ZZ

	
Regular

	
Variable
(2)

	
4,248,413.06

	
February
2047

	
Class L2-SW

	
Regular

	
Variable
(3)

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

	
February
2047

	
Class L2-1-SB

	
Regular

	
Variable
(2)

	
8,867.67

	
February
2047

	
Class L2-1-GP

	
Regular

	
Variable
(4)

	
37,495.27

	
February
2047

	
Class L2-2-SB

	
Regular

	
Variable
(2)

	
7,254.76

	
February
2047

	
Class L2-2-GP

	
Regular

	
Variable
(5)

	
43,931.06

	
February
2047

	
Class L2-YY

	
Regular

	
Variable
(2)

	
407,034,104.24

	
February
2047

	
Class R-2 (6)

	
Residual

	
 

	
------

	
February
2047

	
 

	
 

	
 

	
 

	
 

(1)          
The Distribution Date in the specified month, which is the month
following the month the latest maturing Mortgage Loan in the
related Loan Group (or Loan Groups, as applicable) matures. 
For federal income tax purposes, for each Class of REMIC II Regular
and Residual Interests, the “latest possible maturity
date” shall be the Assumed Final Maturity Date.

(2)          
For each Distribution Date, each of these REMIC II Regular
Interests shall accrue interest at a per
annum rate (but not less than zero) equal to the weighted average
of: (x) the rates on Class L1-Y-X, L1-Z-X, and each REMIC I Regular
Interest ending with the designations “B” for such
Distribution Date, (y) with respect to REMIC I Regular Interests
ending with the designation “A”, for each Distribution
Date from the second Distribution Date through the Rate Change Date
for such REMIC I Regular Interest, the lesser of (i) the product
of 2 multiplied by Swap LIBOR, and (ii) the
rate on such REMIC I Regular Interest, and
(z) with respect to REMIC I Regular Interests ending with the
designation “A”, for the first Distribution Date and
each Distribution Date after the Rate Change Date for such REMIC I
Regular Interest, the rate on such REMIC I
Regular Interest, in every case weighted on
the basis of the Class Principal Balances of each such REMIC I
Regular Interest outstanding immediately before such Distribution
Date.

(3)          
Class L2-SW shall accrue interest on its Uncertificated Notional
Amount at a per annum rate equal to: (i) on
the second Distribution Date through the 60th Distribution Date,
the excess of (x) the weighted average of the rates for REMIC I
Regular Interests including the designation “A”, over
(y) 2 multiplied by Swap LIBOR, and (ii) on the first Distribution
Date and after the 60th Distribution Date,
0.00%.

(4)          
For each Distribution Date, REMIC II Regular Interest L2-1GP shall
accrue interest at a per annum rate (but not less than zero) equal
to the weighted average of: (x) the rates on REMIC I Regular
Interest L1-Y-X and the REMIC I Group I Regular Interests ending
with the designation “B” for such Distribution Date,
(y) with respect to REMIC I Group I Regular Interests ending with
the designation “A”, for each Distribution Date from
the second Distribution Date through the Rate Change Date for such
REMIC I Regular Interest, the lesser of (i) the product of 2
multiplied by Swap LIBOR and (ii) the rate on such REMIC I Regular
Interest, and (z) with respect to REMIC I Group I Regular Interests
ending with the designation “A”, for the first
Distribution Date and each Distribution Date after the Rate Change
Date for such REMIC I Regular Interest, the rate on such REMIC I
Regular Interest, in every case weighted on the basis of the Class
Principal Balances of each such REMIC I Regular Interest for each
such Distribution Date.

(5)          
For each Distribution Date, REMIC II Regular Interest L2-2GP shall
accrue interest at a per annum rate (but not less than zero) equal
to the weighted average of: (x) the rates on REMIC I Regular
Interest L1-Z-X and the REMIC I Group II Regular Interests ending
with the designation “B” for such Distribution Date,
(y) with respect to REMIC I Group II Regular Interests ending with
the designation “A”, for each Distribution Date from
the second Distribution Date through the Rate Change Date for such
REMIC I Regular Interest, the lesser of (i) the product of 2
multiplied by Swap LIBOR and (ii) the rate on such REMIC I Regular
Interest, and (z) with respect to REMIC I Group II Regular
Interests ending with the designation “A”, for the
first Distribution Date and each Distribution Date after the Rate
Change Date for such REMIC I Regular Interest, the rate on such
REMIC I Regular Interest, in every case weighted on the basis of
the Class Principal Balances of each such REMIC I Regular Interest
for each such Distribution Date.

(6)          
The Class R‐2 Residual Interest shall not be entitled to
receive any distributions of interest or principal.

 As provided herein,
with respect to REMIC II, the Trustee will cause an election to be
made on behalf of REMIC II to be treated for federal income tax
purposes as a REMIC. The REMIC II Regular Interests will be
designated regular interests in REMIC II and the Class R-2 Residual
Interest will be designated the sole class of residual interest in
REMIC II, for purposes of the REMIC Provisions.

REMIC III
Interests

	

Class
Designation for each Class of REMIC III Regular Interests and the
Class R-3 Residual Interest

	

Type of
Interest

	

Certificate
Interest or Pass-Through

 Rate (2)

	

Initial
Certificate

 Principal

 Balance

	

Assumed

 Final Maturity

 Date(1)

	
Class 1-A

	
Regular

	
(3)

	
$286,276,000.00

	
February
2047

	
Class 2-A-1

	
Regular

	
(4)

	
179,103,000.00

	
February
2047

	
Class 2-A-2

	
Regular

	
(5)

	
139,241,000.00

	
February
2047

	
Class 2-A-3

	
Regular

	
(6)

	
17,070,000.00

	
February
2047

	
Class M-1

	
Regular

	
(7)

	
31,349,000.00

	
February
2047

	
Class M-2

	
Regular

	
(8)

	
29,721,000.00

	
February
2047

	
Class M-3

	
Regular

	
(9)

	
17,507,000.00

	
February
2047

	
Class M-4

	
Regular

	
(10)

	
15,064,000.00

	
February
2047

	
Class M-5

	
Regular

	
(11)

	
15,064,000.00

	
February
2047

	
Class M-6

	
Regular

	
(12)

	
13,028,000.00

	
February
2047

	
Class M-7

	
Regular

	
(13)

	
13,028,000.00

	
February
2047

	
Class M-8

	
Regular

	
(14)

	
11,400,000.00

	
February
2047

	
Class M-9

	
Regular

	
(15)

	
10,993,000.00

	
February
2047

	
Class L3-C

	
Regular

	
(16)

	
35,419,207.43

	
February
2047

	
Class L3-SW

	
Regular

	
(17)

	
------

	
February
2047

	
Class L3-P

	
Regular

	
(18)

	
100.00

	
February
2047

	
Class R-3

	
Residual

	
(19)

	
------

	
February
2047

	
 

	
 

	
 

	
 

	
 

(1)          
The Distribution Date in the specified month, which is the month
following the month the latest maturing Mortgage Loan in the
related Loan Group (or Loan Groups, as applicable)  matures.
For federal income tax purposes, for each Class of REMIC III
Regular and Residual Interests, the “latest possible maturity
date” shall be the Assumed Final Maturity Date.

(2)          
Indicates the rate at which interest accrues for purposes of
computing payments from REMIC III.  The Class A and Mezzanine
Certificates are also entitled to certain payments made outside of
REMIC III, described in Article 4 of this Agreement.  Also,
some of the payments made to the holder of the Class L3-C Regular
Interest by REMIC III will be applied to pay amounts into the
Reserve Fund and the Supplemental Interest Trust, as described in
this Agreement.

(3)          
On each Distribution Date on or prior to the Optional Termination
Date, the Class I-A Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus
0.205% and
(ii) the related REMIC Net WAC Rate for such Distribution
Date.  On each Distribution Date after the Optional
Termination Date, the Class I-A Certificates shall accrue interest
at a rate equal to the lesser of (i) LIBOR plus 0.410% and (ii) the related REMIC
Net WAC Rate for such Distribution Date.

(4)          
On each Distribution Date on or prior to the Optional Termination
Date, the Class II-A-1 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus 0.100% and (ii) the related REMIC Net WAC
Rate for such Distribution Date.  On each Distribution Date
after the Optional Termination Date, the Class II-A-1 Certificates
shall accrue interest at a rate equal to the lesser of (i) LIBOR
plus 0.200% and
(ii) the related REMIC Net WAC Rate for such Distribution
Date.

(5)          
On each Distribution Date on or prior to the Optional Termination
Date, the Class II-A-2 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus 0.220% and (ii) the
related REMIC Net WAC Rate for such Distribution Date.  On
each Distribution Date after the Optional Termination Date, the
Class II-A‐2 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus 0.440% and (ii) the related REMIC
Net WAC Rate for such Distribution Date.

(6)          
On each Distribution Date on or prior to the Optional Termination
Date, the Class II-A-3 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus 0.330% and (ii) the
related REMIC Net WAC Rate for such Distribution Date.  On
each Distribution Date after the Optional Termination Date, the
Class II-A‐3 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus 0.660% and (ii) the related REMIC
Net WAC Rate for such Distribution Date.

(7)          
On each Distribution Date on or prior to the Optional Termination
Date, the Class M-1 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus
0.300% and
(ii) the related REMIC Net WAC Rate for such Distribution
Date.  On each Distribution Date after the Optional
Termination Date, the Class M-1 Certificates shall accrue interest
at a rate equal to the lesser of (i) LIBOR plus 0.450% and (ii) the related REMIC
Net WAC Rate for such Distribution Date.

(8)          
On each Distribution Date on or prior to the Optional Termination
Date, the Class M-2 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus 0.320% and (ii) the
related REMIC Net WAC Rate for such Distribution Date.  On
each Distribution Date after the Optional Termination Date, the
Class M-2 Certificates shall accrue interest at a rate equal to the
lesser of (i) LIBOR plus 0.480% and (ii) the related REMIC Net WAC Rate for such
Distribution Date.

(9)          
On each Distribution Date on or prior to the Optional Termination
Date, the Class M-3 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus 0.340% and (ii) the
related REMIC Net WAC Rate for such Distribution Date.  On
each Distribution Date after the Optional Termination Date, the
Class M-3 Certificates shall accrue interest at a rate equal to the
lesser of (i) LIBOR plus 0.510% and (ii) the related REMIC Net WAC Rate for such
Distribution Date.

(10)        
On each Distribution Date on or prior to the Optional Termination
Date, the Class M-4 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus 0.550% and (ii) the
related REMIC Net WAC Rate for such Distribution Date.  On
each Distribution Date after the Optional Termination Date, the
Class M-4 Certificates shall accrue interest at a rate equal to the
lesser of (i) LIBOR plus 0.825% and (ii) the related REMIC Net WAC Rate for such
Distribution Date.

(11)        
On each Distribution Date on or prior to the Optional Termination
Date, the Class M-5 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus 0.600% and (ii) the
related REMIC Net WAC Rate for such Distribution Date.  On
each Distribution Date after the Optional Termination Date, the
Class M-5 Certificates shall accrue interest at a rate equal to the
lesser of (i) LIBOR plus 0.900% and (ii) the related REMIC Net WAC Rate for such
Distribution Date.

(12)        
On each Distribution Date on or prior to the Optional Termination
Date, the Class M-6 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus 0.750% and (ii) the
related REMIC Net WAC Rate for such Distribution Date.  On
each Distribution Date after the Optional Termination Date, the
Class M-6 Certificates shall accrue interest at a rate equal to the
lesser of (i) LIBOR plus 1.125% and (ii) the related REMIC Net WAC Rate for such
Distribution Date.

(13)        
On each Distribution Date on or prior to the Optional Termination
Date, the Class M-7 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus 1.750% and (ii) the
related REMIC Net WAC Rate for such Distribution Date.  On
each Distribution Date after the Optional Termination Date, the
Class M-7 Certificates shall accrue interest at a rate equal to the
lesser of (i) LIBOR plus 2.625% and (ii) the related REMIC Net WAC Rate for such
Distribution Date.

(14)        
On each Distribution Date on or prior to the Optional Termination
Date, the Class M-8 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus 2.500% and (ii) the
related REMIC Net WAC Rate for such Distribution Date.  On
each Distribution Date after the Optional Termination Date, the
Class M-8 Certificates shall accrue interest at a rate equal to the
lesser of (i) LIBOR plus 3.750% and (ii) the related REMIC Net WAC Rate for such
Distribution Date.

(15)        
On each Distribution Date on or prior to the Optional Termination
Date, the Class M-9 Certificates shall accrue interest at a rate
equal to the lesser of (i) LIBOR plus
2.500% and
(ii) the related REMIC Net WAC Rate for such Distribution
Date.  On each Distribution Date after the Optional
Termination Date, the Class M-9 Certificates shall accrue interest
at a rate equal to the lesser of (i) LIBOR plus 3.750% and (ii) the related REMIC
Net WAC Rate for such Distribution Date.

(16)        
The Class L3-C Regular Interest shall accrue
interest on the Class C Notional Amount at the rate determined
under Annex A.

(17)        
The Class L3-SW Regular Interest shall not
have a interest rate, but will be entitled to 100% of the interest
paid on the Class L2-SW Regular Interest. 

(18)        
The Class L3-P Regular Interest shall not accrue interest but shall
be entitled to receive all Assigned Prepayment Charges collected on
the Mortgage Loans.

(19)        
The Class R‐3 Residual Interest shall not be entitled to
receive any distributions of interest or principal.

As provided
herein, with respect to REMIC III, the Trustee will cause an
election to be made on behalf of REMIC III to be treated for
federal income tax purposes as a REMIC. The REMIC III Regular
Interests will be designated regular interests in REMIC III, and
the Class R-3 Residual Interest will be designated the sole class
of residual interest in REMIC III, for purposes of the REMIC
Provisions.

REMIC IV
Interests

	

Class
Designation for each Class of REMIC IV Regular Interests and the
Class R-4 Residual Interest

	

Type of
Interest

	

Pass-Through
Interest

 Rate

	

Initial
Certificate

 Principal

 Balance

	

Assumed Final
Maturity

 Date (1)

	
Class C Certificates

	
Regular

	
Variable
(2)

	
$35,419,207.43

	
February 2047

	
Class R-4

	
Residual

	
(3)

	
------

	
February 2047

	
 

	
 

	
 

	
 

	
 

(1)          
The Distribution Date in the specified month, which is the month
following the month the latest maturing Mortgage Loan in the
related Loan Group (or Loan Groups, as applicable) matures. For
federal income tax purposes, for each Class of REMIC IV Regular and
Residual Interests, the “latest possible maturity date”
shall be the Assumed Final Maturity Date.

(2)          
The Class C Certificates shall be entitled to receive 100% of the
interest paid on the Class L3-C Regular Interest.

(3)          
The Class R-4 Residual Interest shall not be entitled to receive
any distributions of interest or principal.

 As provided herein, with respect to REMIC IV, the
Trustee will cause an election to be made on behalf of REMIC IV to
be treated for federal income tax purposes as a REMIC. The Class C
Certificates will be designated regular interests in REMIC IV, and
the Class R-4 Residual Interest will be designated the sole class
of residual interest in REMIC IV, for purposes of the REMIC
Provisions.

REMIC V
Interests

	

Class
Designation for each Class of REMIC V Regular Interests and the
Class R-5 Residual Interest

	

Type of
Interest

	

Pass-Through
Interest

 Rate

	

Initial
Certificate

 Principal

 Balance

	

Assumed Final
Maturity

 Date (1)

	
Class P Certificates

	
Regular

	
(2)

	
$100.00

	
February 2047

	
Class R-5

	
Residual

	
(3)

	
------

	
February 2047

	
 

	
 

	
 

	

 

	
 

(1)          
The Distribution Date in the specified month, which is the month
following the month the latest maturing Mortgage Loan in the
related Loan Group (or Loan Groups, as applicable) matures. For
federal income tax purposes, for each Class of REMIC V Regular and
Residual Interests, the “latest possible maturity date”
shall be the Assumed Final Maturity Date.

(2)                
The Class P Certificates shall be entitled to receive 100% of the
interest paid on the Class L3-P Regular Interest.  In
addition, the Class P Certificates shall be entitled to receive all
amounts described in clause (b) of the definition of Assigned
Prepayment Charges, but such amounts shall be treated as paid
outside of REMIC V.

(3)                 The Class R-5 Residual Interest shall not be
entitled to receive any distributions of interest or
principal.

 As provided herein,
with respect to REMIC V, the Servicer will cause an election to be
made on behalf of REMIC V to be treated for federal income tax
purposes as a REMIC. The Class C Certificates will be designated
regular interests in REMIC V, and the Class R-5 Residual Interest
will be designated the sole class of residual interest in REMIC V,
for purposes of the REMIC Provisions.

REMIC VI
Interests

	

Class
Designation for each Class of REMIC VI Regular Interests and the
Class R-6 Residual Interest

	

Type of
Interest

	

Certificate
Interest

 Rate

	

Initial
Class

 Principal

 Balance

	

Assumed Final
Maturity

 Date (1)

	
Class
L6-SW

	
Regular

	
(2)

	
----

	
February 2047

	
Class R-6

	
Residual

	
(3)

	
----

	
February 2047

	
 

	
 

	
 

	
 

	
 

(1)          
The Distribution Date in the specified month, which is the month
following the month the latest maturing Mortgage Loan in the
related Loan Group (or Loan Groups, as applicable) matures. For
federal income tax purposes, for each Class of REMIC VI Regular and
Residual Interests, the “latest possible maturity date”
shall be the Assumed Final Maturity Date.

(2)          
The Class L6-SW Regular Interest shall be entitled to receive 100%
of the interest paid on the Class L3-SW Regular
Interest.

(3)          
The Class R-6 Residual Interest shall not be entitled to receive
any distributions of interest or principal.

 As provided herein,
with respect to REMIC VI, the Trustee will cause an election to be
made on behalf of REMIC VI to be treated for federal income tax
purposes as a REMIC. The Class L6-SW Regular Interest will be
designated regular interests in REMIC VI, and the Class R-6
Residual Interest will be designated the sole class of residual
interest in REMIC VI, for purposes of the REMIC
Provisions.

In addition, the
Trust will issue the Class R Certificates (which will represent
ownership of the Class R-1, Class R-2 and Class R-3 Residual
Interests), the Class R-CX Certificates (which will represent the
Class R-4 and Class R-6 Residual Interests) and the Class R-PX
Certificates (which will represent the Class R-5 Residual
Interest).

As of the Cut-Off
Date, the Mortgage Loans have an aggregate Principal Balance of
$814,263,307.43 and, as of the Closing Date the Certificates have
an aggregate Certificate Principal Balance of
$814,263,307.43.

W I T N E S S E T H :

WHEREAS, the Company
is a corporation duly organized and existing under and by virtue of
the laws of the State of Delaware and has full corporate power and
authority to enter into this Agreement and to undertake the
obligations undertaken by it herein;

WHEREAS, the Servicer
is a federal savings association and has full power and authority
to enter into this Agreement and to undertake the obligations
undertaken by it herein;

WHEREAS, the Trustee
is a national banking association duly organized and existing under
the laws of the United States of America and has full power and
authority to enter into this Agreement;

WHEREAS, the Delaware
Trustee is a banking corporation duly organized and existing under
the laws of the State of Delaware and has full power and authority
to enter into this Agreement;

WHEREAS, prior to the
execution and delivery hereof, the Company and the Delaware Trustee
have entered into the Original Trust Agreement, and the Delaware
Trustee has filed the Certificate of Trust;

WHEREAS, it is the
intention of the Company, the Servicer, the Trustee and the
Delaware Trustee that the Trust created by this Agreement
constitute a statutory trust under the Statutory Trust Statute,
that this Agreement constitute the governing instrument of the
Trust, and that this Agreement amend and restate the Original Trust
Agreement;

WHEREAS, the Company
is the owner of the Mortgage Loans identified in the Mortgage Loan
Schedule hereto having Stated Principal Balances on the Cut-Off
Date as stated therein; and

WHEREAS, the Company
has been duly authorized to create the Trust to (i) hold the
Mortgage Loans and certain other property, (ii) issue the REMIC I
Regular Interests and the Class R-1 Residual Interest, (iii) hold
the REMIC I Regular Interests, (iv) issue the REMIC II Regular
Interests and the Class R-2 Residual Interest, (v) hold the REMIC
II Regular Interests, (vi) issue the Certificates (other than the
Class C and Class P Certificates), the Class C Regular Interest,
the Class L3-SW Regular Interest, the Class L3-P Regular Interest
and the Class R-3 Residual Interest, (vii) hold the Class C Regular
Interest, (viii) issue the Class C Certificates and the Class R-4
Residual Interest, (ix) hold the Class L3-P Regular Interest, (x)
issue the Class P Certificates and the Class R-5 Residual Interest,
(xi) hold the Class L3-SW Regular Interest, and (xii) issue the
Class L6-SW Regular Interest and the Class R-6 Residual
Interest.

NOW, THEREFORE, in
order to declare the terms and conditions upon which the REMIC I
Regular Interests, the REMIC II Regular Interests, the REMIC III
Regular Interests, the Residual Interests and the Certificates are
to be issued, and in consideration of the premises and of the
purchase and acceptance of the Certificates by the Holders thereof,
the Company covenants and agrees with the Servicer, the Trustee and
the Delaware Trustee, for the equal and proportionate benefit of
the respective Holders from time to time of the REMIC I Regular
Interests, the REMIC II Regular Interests, the REMIC III Regular
Interests and the Certificates, as applicable, as
follows:

ARTICLE I

Definitions

Section 1.01         
Defined Terms.

Whenever used in this Agreement, the following
words and phrases, unless the context otherwise requires, shall
have the meanings specified in this Article.  Unless otherwise
specified, all calculations in respect of interest on the Class A
Certificates and the Mezzanine Certificates shall be made on the
basis of the actual number of days elapsed on the basis of a
360‐day year and all other calculations of interest described
herein shall be made on the basis of a 360‐day year
consisting of twelve 30‐day months.  The Class P
Certificates and the Residual Certificates are not entitled to
distributions in respect of interest and, accordingly, will not
accrue interest.

Account:  Either of the Collection Account
and Distribution Account.

Accrual Period:  With
respect to the Class C Certificates, the REMIC I, REMIC II and
REMIC III Regular Interests and each Distribution Date, the
calendar month prior to the month of such Distribution Date. With
respect to the Class A Certificates and the Mezzanine Certificates,
and each Distribution Date, the period commencing on the
immediately preceding Distribution Date (or in the case of the
first such Accrual Period, commencing on the Closing Date) and
ending on the day immediately preceding such Distribution Date.

Additional Termination Event:  As defined
in the Swap Agreement.

Adjustable Rate Mortgage Loan:  A Mortgage
Loan which provides for an adjustable Mortgage Rate payable with
respect thereto.

Adjusted Net Maximum Mortgage Rate:  With
respect to any Mortgage Loan (or the related REO Property), as of
any Distribution Date, a per annum rate of interest equal to the
Maximum Mortgage Rate for such Mortgage Loan (if such Mortgage Loan
is an Adjustable Rate Mortgage Loan) or the Mortgage Rate for such
Mortgage Loan (if such Mortgage Loan is a Fixed Rate Mortgage
Loan), in either case as of the first day of the month preceding
the month in which such Distribution Date occurs, minus the sum of
(i) the Servicing Fee Rate and (ii) the Trustee Fee Rate.

Adjusted Net Mortgage Rate:  With
respect to any Mortgage Loan (or the related REO Property), as of
any Distribution Date, a per annum rate of interest equal to the
Mortgage Rate for such Mortgage Loan as of the first day of the
month preceding the month in which such Distribution Date occurs,
minus the sum of (i) the Servicing Fee Rate and (ii) the
Trustee Fee Rate.

Adjustment Date:  With
respect to each Adjustable Rate Mortgage Loan, each date, on which
the Mortgage Rate of such Mortgage Loan changes pursuant to the
related Mortgage Note.  The first Adjustment Date following
the Cut‐off Date as to each Adjustable Rate Mortgage Loan is
set forth in the Mortgage Loan Schedule.

Advance:  As to any Mortgage Loan or REO
Property, any advance made by the Servicer in respect of any
Distribution Date pursuant to Section 4.02.

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

Agreement:  The meaning
specified in the introductory paragraph hereof.

Appraised Value:  With
respect to any Mortgaged Property, the value thereof as determined
by an appraisal made for the originator of the related Mortgage
Loan at the time of origination of such Mortgage Loan by an
appraiser who met the minimum requirements of Fannie Mae.

Assigned Prepayment Charges:  For any Distribution Date, the sum of
(a) all voluntary Prepayment Charges collected on the Mortgage
Loans during the Prepayment Period and (b) all payments received by
the Servicer from the Seller during the Prepayment Period in
respect of Prepayment Charges pursuant to Section 3.3(c) of the
Mortgage Loan Purchase Agreement.

Assignment:  An
assignment of Mortgage, notice of transfer or equivalent
instrument, in recordable form (excepting therefrom, if applicable,
the mortgage recordation information which has not been required
pursuant to this Agreement or returned by the applicable
recorder’s office), which is sufficient under the laws of the
jurisdiction in which the related Mortgaged Property is located to
reflect of record the sale of the Mortgage.

Authenticating Agent: Any authenticating agent appointed by the
Trustee pursuant to Section 8.11.

Authorized Denomination: With respect to each Class of Certificates
(other than the Class P Certificates and the Residual
Certificates), an initial Certificate Principal Balance equal to
$25,000 and multiples of $1 in excess thereof.  The Residual
Certificates and the Class P Certificates will be issued in fully
registered form in minimum denominations of 20% of the Percentage
Interest therein and increments of 1% in excess thereof.

Balloon Mortgage Loan.  A Mortgage Loan that provides for a
Balloon Payment.

Balloon Payment:  With respect to any Balloon
Mortgage Loan, the payment of the unamortized principal balance of
a Mortgage Loan in a single 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.

Bankruptcy Loss:  With
respect to any Mortgage Loan, a Realized Loss resulting from a
Deficient Valuation or Debt Service Reduction.

Beneficial Holder:  A Person holding a beneficial interest
in any Book-Entry Certificate as or through a DTC Participant or an
Indirect DTC Participant or a Person holding a beneficial interest
in any Definitive Certificate.

Book-Entry Certificates:  The Class A
Certificates and the Mezzanine Certificates, beneficial ownership
and transfers of which shall be made through book entries as
described in Section 5.07.

Business Day:  Any day
other than a Saturday, a Sunday or a day on which banking
institutions in Stockton, California, Chicago, Illinois, New York,
New York, Seattle, Washington or any city in which the Corporate
Trust Office is located are authorized or obligated by law or
executive order to be closed.

Calculation Period:  As such
term is defined in the Swap Agreement.

Certificate:  Any Regular Certificate or Residual
Certificate.

Certificate Interest Rate: For each Class of REMIC I, REMIC II and
REMIC III Regular Interests, and the Class L6-SW Regular Interest,
the per annum rate set forth as the Certificate Interest Rate for
such Class in the Preliminary Statement hereto.

Certificate Margin:  For any Class of Certificates and any
Distribution Date, the percentage added to LIBOR in the
determination of the Pass-Through Rate for such Class of
Certificates on such Distribution Date, as set forth in the
Preliminary Statement hereto.

Certificate of Trust: The certificate of trust filed with respect
to the Trust with the Secretary of State in accordance with Section
3810(a) of the Statutory Trust Statute.

Certificate Principal Balance:  With
respect to any Class A Certificates, Mezzanine Certificates or
Class P Certificates immediately prior to any Distribution Date, an
amount equal to the Initial Certificate Principal Balance thereof
reduced by the sum of all amounts actually distributed in respect
of principal of such Class and, in the case of a Mezzanine
Certificate, Realized Losses allocated thereto on all prior
Distribution Dates and, in the case of a Mezzanine Certificate,
increased by the Realized Losses reinstated thereto on all prior
Distribution Dates due to Subsequent Recoveries.  With respect
to any Class C Certificates as of any date of determination, an
amount equal to the Uncertificated Principal Balance of the Class C
Interest.  The Residual Certificates will not have a
Certificate Principal Balance.

Certificate Register and Certificate
Registrar:  The register and the registrar
appointed, respectively and maintained pursuant to Section
5.03.

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, direction or
taking any other action pursuant to this Agreement, any Certificate
registered in the name of the Company or the Servicer or any
Affiliate thereof shall be deemed not to be outstanding and the
Voting Rights to which it is entitled shall not be taken into
account in determining whether the requisite percentage of Voting
Rights necessary to effect any such consent, direction or other
action has been obtained, except as otherwise provided in the
definition of “Tax Matters Person.”  The Trustee
and the NIMS Insurer may conclusively rely upon a certificate of
the Company or the Servicer in determining whether a Certificate is
held by an Affiliate thereof.  All references herein to
“Holders” or “Certificateholders” shall
reflect the rights of Beneficial Holders as they may indirectly
exercise such rights through DTC and DTC Participants, except as
otherwise specified herein; provided, however, that
the Trustee and the NIMS Insurer shall be required to recognize as
a “Holder” or “Certificateholder” only the
Person in whose name a Certificate is registered in the Certificate
Register.

Certification:  As defined
in Section 4.08(b) hereof.

Class:  Collectively, Certificates which
have the same priority of payment and bear the same class
designation and the form of which is identical except for variation
in the Percentage Interest evidenced thereby. 

Class I-A Certificate:  Any one of the Class I-A Certificates
as designated on the face thereof substantially in the form annexed
hereto as Exhibit A executed, authenticated and delivered by
the Trustee, representing the right to distributions as set forth
herein and therein and evidencing (i) a regular interest in REMIC
III, (ii) the right to receive the related Net WAC Rate Carryover
Amounts, and (iii) the obligation to pay a portion of the Class IO
Distribution Amount.

Class II‐A‐1 Certificate:  Any one of the Class II‐A‐1
Certificates as designated on the face thereof substantially in the
form annexed hereto as Exhibit A executed, authenticated and
delivered by the Trustee, representing the right to distributions
as set forth herein and therein and evidencing (i) a regular
interest in REMIC III, (ii) the right to receive the related Net
WAC Rate Carryover Amounts, and (iii) the obligation to pay a
portion of the Class IO Distribution Amount.

Class II‐A‐2 Certificate:  Any one of the Class II‐A‐2
Certificates as designated on the face thereof substantially in the
form annexed hereto as Exhibit A executed, authenticated and
delivered by the Trustee, representing the right to distributions
as set forth herein and therein and evidencing (i) a regular
interest in REMIC III, (ii) the right to receive the related Net
WAC Rate Carryover Amounts, and (iii) the obligation to pay a
portion of the Class IO Distribution Amount.

Class II‐A‐3 Certificate:  Any one of the Class
II‐A‐3 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A
executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and
evidencing (i) a regular interest in REMIC III, (ii) the right to
receive the related Net WAC Rate Carryover Amounts, and (iii) the
obligation to pay a portion of the Class IO Distribution
Amount.

Class A Certificates:  The Group I Senior Certificates and the
Group II Senior Certificates.

Class A Principal Distribution
Amount:  With
respect to any Distribution Date, the sum of the Group I Principal
Distribution Amount and the Group II Principal Distribution
Amount.

Class C Certificate:  Any one of
the Class C Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A,
executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and
evidencing (i) a regular interest in REMIC IV, (ii) the obligation
to pay Net WAC Rate Carryover Amounts, and (iii) the obligation to
pay a portion of the Class IO Distribution Amount.

Class C NIM Payment Amount:  For any
Distribution Date (I) on or before the date the NIM Notes are
issued, zero, (II) from the first Distribution Date after the date
on which the NIM Notes are issued until the principal balance of
the NIM Notes has been reduced to zero, the amount necessary to pay
in full the NIM Notes as provided in the Indenture and to pay in
full any amounts owed to the NIMS Insurer as provided in the
Indenture less the amounts payable to the Class C Certificates from
the Reserve Fund on such Distribution Date and (III) thereafter,
zero. 

Class C Shortfall:  As defined
in Section 4.05(l) hereof.

Class IO Distribution Amount:  With respect to any Distribution Date,
the excess, if any, of the amount payable under the Swap Agreement
over the amount payable on the Class L6-SW Regular Interest.

Class L1-Y-A Regular Interests:  Any of
fifty-eight uncertificated undivided beneficial interests in REMIC
I which constitute REMIC I Regular Interests and are entitled to
distributions as set forth herein.

Class L1-Y-B Regular Interests:  Any of
fifty-eight uncertificated undivided beneficial interests in REMIC
I which constitute REMIC I Regular Interests and are entitled to
distributions as set forth herein.

Class L1-Y-X Regular Interest:  The
uncertificated undivided beneficial interest in REMIC I which
constitutes a REMIC I Regular Interest and is entitled to
distributions as set forth herein.

Class L1-Z-A Regular Interests:  Any of
fifty-eight uncertificated undivided beneficial interests in REMIC
I which constitute REMIC I Regular Interests and are entitled to
distributions as set forth herein.

Class L1-Z-B Regular Interests:  Any of
fifty-eight uncertificated undivided beneficial interests in REMIC
I which constitute REMIC I Regular Interests and are entitled to
distributions as set forth herein.

Class L1-Z-X Regular Interest:  The
uncertificated undivided beneficial interest in REMIC I which
constitutes a REMIC I Regular Interest and is entitled to
distributions as set forth herein.

Class L2-1-A Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-2-A1 Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-2-A2 Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-2-A3 Regular Interest:  The uncertificated undivided beneficial
interest in REMIC II which constitutes a REMIC II Regular Interest
and is entitled to distributions as set forth herein.

Class L2-M1 Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-M2 Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-M3 Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-M4 Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-M5 Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-M6 Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-M7 Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-M8 Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-M9 Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-1-GP Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-1-SB Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-2-GP Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-2-SB Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-SW Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-XX Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-YY Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L2-ZZ Regular Interest:  The
uncertificated undivided beneficial interest in REMIC II which
constitutes a REMIC II Regular Interest and is entitled to
distributions as set forth herein.

Class L3-C Regular Interest: The
uncertificated undivided beneficial interest in REMIC III which
constitutes a REMIC III Regular Interest and is entitled to
distributions as set forth herein.

Class L3-P Regular Interest:  An
uncertificated undivided beneficial interest in REMIC III which
constitutes a REMIC III Regular Interest and is entitled to
distributions as set forth herein.

Class L3-SW Regular Interest: The uncertificated undivided beneficial
interest in REMIC III which constitutes a REMIC III Regular
Interest and is entitled to distributions as set forth herein.

Class L6-SW Regular Interest: The uncertificated undivided beneficial
interest in REMIC VI which constitutes a regular interest in REMIC
VI and is entitled to distributions as set forth herein.

Class M‐1 Certificate:  Any one of
the Class M‐1 Certificates as designated on the face
thereof substantially in the form annexed hereto as Exhibit A,
executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and
evidencing (i) a regular interest in REMIC III, (ii) the right to
receive the related Net WAC Rate Carryover Amounts, and (iii) the
obligation to pay a portion of the Class IO Distribution
Amount.

Class M‐1 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 amount equal to the
lesser of (I) the aggregate Certificate Principal Balance of the
Class M‐1 Certificates immediately prior to such Distribution
Date and (II) 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) the
aggregate Certificate Principal Balance of the Class M‐1
Certificates immediately prior to such Distribution Date over
(y) the lesser of (A) the product of (i) 60.40% 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 Overcollateralization
Floor.

Class M-2 Certificate:  Any one of
the Class  M-2 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A,
executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and
evidencing (i) a regular interest in REMIC III, (ii) the right to
receive the related Net WAC Rate Carryover Amounts, and (iii) the
obligation to pay a portion of the Class IO Distribution
Amount.

Class M-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 amount equal to the
lesser of (I) the aggregate Certificate Principal Balance of
the Class M‐2 Certificates immediately prior to such
Distribution Date and (II) 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 Certificates (after taking into account the payment of
the Class M‐1 Principal Distribution Amount on such
Distribution Date) and (iii) the aggregate Certificate
Principal Balance of the Class M‐2 Certificates immediately
prior to such Distribution Date over (y) the lesser of
(A) the product of (i) 67.70% 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 Overcollateralization Floor.

Class M-3 Certificate:  Any one of
the Class M-3 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A,
executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and
evidencing (i) a regular interest in REMIC III, (ii) the right to
receive the related Net WAC Rate Carryover Amounts, and (iii) the
obligation to pay a portion of the Class IO Distribution
Amount.

Class 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 amount equal to the lesser of (I) the aggregate
Certificate Principal Balance of the Class M‐3 Certificates
immediately prior to such Distribution Date and (II) 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 Certificates (after taking
into account the payment of the Class M‐1 Principal
Distribution Amount on such Distribution Date), (iii) the
aggregate Certificate Principal Balance of the Class M‐2
Certificates (after taking into account the payment of the Class
M‐2 Principal Distribution Amount on such Distribution Date)
and (iv) the aggregate Certificate Principal Balance of the
Class M‐3 Certificates immediately prior to such Distribution
Date over (y) the lesser of (A) the product of (i) 72.00%
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 Overcollateralization Floor.

Class M‐4 Certificate:  Any one of
the Class M‐4 Certificates as designated on the face
thereof substantially in the form annexed hereto as Exhibit A,
executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and
evidencing (i) a regular interest in REMIC III, (ii) the right to
receive the related Net WAC Rate Carryover Amounts, and (iii) the
obligation to pay a portion of the 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 amount equal to the lesser of (I) the aggregate
Certificate Principal Balance of the Class M‐4 Certificates
immediately prior to such Distribution Date and (II) 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 Certificates (after taking
into account the payment of the Class M‐1 Principal
Distribution Amount on such Distribution Date), (iii) the
aggregate Certificate Principal Balance of the Class M‐2
Certificates (after taking into account the payment of the Class
M‐2 Principal Distribution Amount on such Distribution Date),
(iv) the aggregate Certificate Principal Balance of the Class
M‐3 Certificates (after taking into account the payment of
the Class M‐3 Principal Distribution Amount on such
Distribution Date), and (v) the aggregate 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) 75.70% 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
Overcollateralization Floor.

Class M‐5 Certificate:  Any one of
the Class M‐5 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A,
executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and
evidencing (i) a regular interest in REMIC III, (ii) the right to
receive the related Net WAC Rate Carryover Amounts, and (iii) the
obligation to pay a portion of the 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 amount equal to the lesser of (I) the aggregate
Certificate Principal Balance of the Class M‐5 Certificates
immediately prior to such Distribution Date and (II) 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 Certificates (after taking
into account the payment of the Class M‐1 Principal
Distribution Amount on such Distribution Date), (iii) the
aggregate Certificate Principal Balance of the Class M‐2
Certificates (after taking into account the payment of the Class
M‐2 Principal Distribution Amount on such Distribution Date),
(iv) the aggregate Certificate Principal Balance of the Class
M‐3 Certificates (after taking into account the payment of
the Class M‐3 Principal Distribution Amount on such
Distribution Date), (v) the aggregate 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 (vi) the aggregate
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) 79.40% 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 Overcollateralization Floor.

Class M‐6 Certificate:  Any one of
the Class M‐6 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A,
executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and
evidencing (i) a regular interest in REMIC III, (ii) the right to
receive the related Net WAC Rate Carryover Amounts, and (iii) the
obligation to pay a portion of the 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 amount equal to the lesser of (I) the aggregate
Certificate Principal Balance of the Class M‐6 Certificates
immediately prior to such Distribution Date and (II) 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 Certificates (after taking
into account the payment of the Class M‐1 Principal
Distribution Amount on such Distribution Date), (iii) the
aggregate Certificate Principal Balance of the Class M‐2
Certificates (after taking into account the payment of the Class
M‐2 Principal Distribution Amount on such Distribution Date),
(iv) the aggregate Certificate Principal Balance of the Class
M‐3 Certificates (after taking into account the payment of
the Class M‐3 Principal Distribution Amount on such
Distribution Date), (v) the aggregate 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), (vi) the aggregate 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 (vii) the
aggregate 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) 82.60% 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 Overcollateralization Floor.

Class M‐7 Certificate:  Any one of
the Class M‐7 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A,
executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and
evidencing (i) a regular interest in REMIC III, (ii) the right to
receive the related Net WAC Rate Carryover Amounts, and (iii) the
obligation to pay a portion of the Class IO Distribution
Amount.

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 amount equal to the lesser of (I) the aggregate
Certificate Principal Balance of the Class M‐7 Certificates
immediately prior to such Distribution Date and (II) 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 Certificates (after taking
into account the payment of the Class M‐1 Principal
Distribution Amount on such Distribution Date), (iii) the
aggregate Certificate Principal Balance of the Class M‐2
Certificates (after taking into account the payment of the Class
M‐2 Principal Distribution Amount on such Distribution Date),
(iv) the aggregate Certificate Principal Balance of the Class
M‐3 Certificates (after taking into account the payment of
the Class M‐3 Principal Distribution Amount on such
Distribution Date), (v) the aggregate 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), (vi) the aggregate 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), (vii) the aggregate
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 (viii)
the aggregate 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) 85.80% 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 Overcollateralization Floor.

Class M-8 Certificate:  Any one of
the Class  M-8 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A,
executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and
evidencing (i) a regular interest in REMIC III, (ii) the right to
receive the related Net WAC Rate Carryover Amounts, and (iii) the
obligation to pay a portion of the 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 amount equal to the lesser of (I) the aggregate
Certificate Principal Balance of the Class M-8 Certificates
immediately prior to such Distribution Date and (II) 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 Certificates (after taking
into account the payment of the Class M‐1 Principal
Distribution Amount on such Distribution Date), (iii) the
aggregate Certificate Principal Balance of the Class M‐2
Certificates (after taking into account the payment of the Class
M‐2 Principal Distribution Amount on such Distribution Date),
(iv) the aggregate Certificate Principal Balance of the Class
M‐3 Certificates (after taking into account the payment of
the Class M‐3 Principal Distribution Amount on such
Distribution Date), (v) the aggregate 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), (vi) the aggregate 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), (vii) the aggregate
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), (viii)
the aggregate 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 (ix) the aggregate 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) 88.60% 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 Overcollateralization Floor.

Class M-9 Certificate:  Any one of
the Class M‐9 Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A,
executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and
evidencing (i) a regular interest in REMIC III, (ii) the right to
receive the related Net WAC Rate Carryover Amounts, and (iii) the
obligation to pay a portion of the 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 amount equal to the lesser of (I) the aggregate
Certificate Principal Balance of the Class M-9 Certificates
immediately prior to such Distribution Date and (II) 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 Certificates (after taking
into account the payment of the Class M‐1 Principal
Distribution Amount on such Distribution Date), (iii) the
aggregate Certificate Principal Balance of the Class M‐2
Certificates (after taking into account the payment of the Class
M‐2 Principal Distribution Amount on such Distribution Date),
(iv) the aggregate Certificate Principal Balance of the Class
M‐3 Certificates (after taking into account the payment of
the Class M‐3 Principal Distribution Amount on such
Distribution Date), (v) the aggregate 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), (vi) the aggregate 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), (vii) the aggregate
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), (viii)
the aggregate 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),
(ix) the aggregate 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 (x) the aggregate 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) 91.30% 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 Overcollateralization
Floor.

Class P Certificate:  Any one of
the Class P Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit A,
executed, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and therein and
evidencing a regular interest in REMIC V.

Class Principal Balance:  With
respect to each Regular Interest, the principal amount of such
Regular Interest outstanding as of any date of determination. 
As of the Closing Date, the Class Principal Balance of each Regular
Interest shall equal the amount set forth in the Preliminary
Statement hereto as its initial Class Principal Balance.  On
each Distribution Date, the Class Principal Balance of each Regular
Interest shall be reduced by all distributions of principal made on
such Regular Interest on such Distribution Date pursuant to the
definition of REMIC I, REMIC II or REMIC III Distribution Amount,
as applicable and, if and to the extent necessary and appropriate,
shall be further reduced on such Distribution Date by Realized
Losses allocated to such Class and increased by Subsequent
Recoveries allocated to such Class, and the Class Principal Balance
of the Class L2-ZZ Regular Interest shall be increased by interest
deferrals as provided in paragraph (a)(ii) of the definition of
REMIC II Distribution Amount.  The Class Principal Balance of
each Regular Interest that has a Class Principal Balance shall
never be less than zero. 

Class R Certificate:  Any one of
the Class R Certificates as designated on the face thereof
substantially in the form annexed hereto as Exhibit B,
executed, authenticated and delivered by the Trustee, evidencing
the ownership of the Class R‐1 Interest, the Class R‐2
Interest and the Class R‐3 Interest.

Class R‐1 Interest:  The
Residual Interest in REMIC I.

Class R‐2 Interest:  The
Residual Interest in REMIC II.

Class R‐3 Interest:  The
Residual Interest in REMIC III.

Class R‐4 Interest:  The Residual Interest in
REMIC IV.

Class R‐5 Interest:  The Residual Interest in
REMIC V.

Class R‐6 Interest:  The Residual Interest in REMIC VI.

Class R‐CX Certificate:  Any one of the Class R‐CX
Certificates as designated on the face thereof substantially in the
form annexed hereto as Exhibit B, executed, authenticated and
delivered by the Trustee, evidencing the ownership of the Class
R‐CX Interest and the Class R‐SwapX Interest.

Class R‐PX Certificate:  Any one of the Class R‐PX
Certificates as designated on the face thereof substantially in the
form annexed hereto as Exhibit B, executed, authenticated and
delivered by the Trustee, evidencing the ownership of the Class
R‐PX Interest.

Clean-up Call Percentage:  10%.

Clearing Agency: An organization registered as a
“clearing agency” pursuant to Section 17A of the
Securities Exchange Act of 1934, as amended, which initially shall
be DTC.

Close of Business:  As used
herein, with respect to any Business Day, 5:00 p.m. (New York
time).

Closing Date:  March 13,
2007.

Closing Date Mortgage Loans:  The
Group I Closing Date Mortgage Loans and the Group II
Closing Date Mortgage Loans.

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

Collection Account:  The account
or accounts created and maintained by the Servicer pursuant to
Section 3.10(a) with an Eligible Institution, which shall be
entitled “Washington Mutual Bank, as Servicer, in trust for
holders of Washington Mutual Asset-Backed Certificates, WMABS,
Series 2007-HE2.”

Commission:  The
Securities and Exchange Commission.

Company:  The meaning specified in the
introductory paragraph hereof.

Compensating Interest:  As defined
in Section 3.24.

Corporate Trust Office:  The
corporate trust office of the Trustee, at which at any particular
time its corporate trust business with respect to this Agreement
shall be administered, which office at the date of the execution of
this Agreement is located at 135 South LaSalle Street, Suite 1511,
Chicago, Illinois, 60603, Attention: Global Securities and Trust
Services – WMABS Series 2007-HE2. 

Corporation:  Any Person (other than an individual,
partnership, joint venture or unincorporated organization)
incorporated, associated, organized, chartered or existing under
the laws of any state or under the federal laws of the United
States of America; provided, that such Person have
indefinite existence under the law of its domicile. 

Corresponding
Certificates:  As shown on the following chart:

	

REMIC
II

	

REMIC
III

	

Class
L2-1-A

	

Class
I-A

	

Class
L2-2-A1

	

Class
II-A-1

	

Class
L2-2-A2

	

Class
II-A-2

	

Class
L2-2-A3

	

Class
II-A-3

	

Class
L2-M1

	

Class
M-1

	

Class
L2-M2

	

Class
M-2

	

Class
L2-M3

	

Class
M-3

	

Class
L2-M4

	

Class
M-4

	

Class
L2-M5

	

Class
M-5

	

Class
L2-M6

	

Class
M-6

	

Class
L2-M7

	

Class
M-7

	

Class
L2-M8

	

Class
M-8

	

Class
L2-M9

	

Class
M-9

 In addition, the Class L3-P Regular Interest
shall be a Corresponding Class to the Class P Certificates, and the
Class L3-C Regular Interest shall be a Corresponding Class to the
Class C Certificates.

Counterparty Payment:  With
respect to any Distribution Date, an amount equal to the product of
(i) USD-LIBOR-BBA for such Distribution Date, (ii) the Swap
Notional Amount for such Distribution Date and (iii) a fraction,
the numerator of which is 30 and the denominator of which is
360.

Credit Enhancement Percentage:  With
respect to any Distribution Date, the percentage equivalent of a
fraction, the numerator of which is (x) the sum of the
aggregate Certificate Principal Balance of the Mezzanine
Certificates and the Class Principal Balance of the Class L3-C
Regular Interest, calculated prior to distribution of the Group I
Principal Distribution Amount and the Group II Principal
Distribution Amount in respect of the Certificates then entitled to
distributions of principal on such Distribution Date, and the
denominator of which is (y) the aggregate Stated Principal
Balance of the Mortgage Loans, calculated prior to taking into
account payments of principal on the Mortgage Loans due on the
related Due Date or received during the related Prepayment
Period.

Credit Support Annex Account:  As defined in Section 4.09(b)
hereof.

Cumulative Loss Trigger Event:  A
Cumulative Loss Trigger Event has occurred with respect to any
Distribution Date in or after March 2009, if the percentage
obtained by dividing (x) the aggregate amount of Realized
Losses incurred (less any Subsequent Recoveries) with respect to
the Mortgage Loans from the Cut-off Date through the last day of
the related Due Period by (y) the aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date, exceeds the
applicable percentage set forth below for such Distribution
Date:

	

Distribution
Date Occurring in

	

Cumulative
Loss Percentage

	

March 2009
through February 2010

	
1.80% for the
first month, plus an additional 1/12th of
2.20% for each month
thereafter.

	

March 2010
through February 2011

	
4.00% for the
first month, plus an additional 1/12th of
2.20% for each month
thereafter.

	

March 2011
through February 2012

	
6.20% for the
first month, plus an additional 1/12th of
1.80% for each month
thereafter.

	

March 2012
through February 2013

	
8.00% for the
first month, plus an additional 1/12th of
0.95% for each month
thereafter.

	

March 2013 and
thereafter

	
8.95% for each
month.

 Custodial Agreement:  The
agreement, if any, between the Trustee and a Custodian (or the
Trustee, a Custodian and the Servicer) providing for the
safekeeping of the Mortgage Files on behalf of the Trust.

Custodian:  Any
custodian which is appointed by the Trustee with the consent of the
Servicer, as provided in Article II hereof, pursuant to a Custodial
Agreement. Any Custodian so appointed shall act as agent on behalf
of the Trustee.  The reasonable fees and expenses of the
Custodian shall be paid by the Servicer.

Cut‐off Date:  With
respect to each Closing Date Mortgage Loan, February 1, 2007 (or,
in the case of any Mortgage Loan under the terms of which the
Monthly Payment for such Mortgage Loan was due on a day other than
the first day of a calendar month, the day on which such Monthly
Payment was due); and with respect to each Substitute Mortgage
Loan, its date of substitution, as applicable.

Cut‐off Date Aggregate Principal
Balance:  The aggregate of the Cut‐off Date
Principal Balances of the Mortgage Loans.

Cut‐off Date Principal Balance:  With
respect to any Mortgage Loan, the unpaid principal balance thereof
as of the Cut‐off Date (with respect to a Closing Date
Mortgage Loan); or as of the applicable date of substitution (with
respect to a Substitute Mortgage Loan), after giving effect to
scheduled payments due on or before the Cut‐off Date, whether
or not received.

DBRS:  DBRS, Inc.

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: 
Certificates in definitive, fully registered and certificated
form.

Delaware Trustee:  Christiana Bank & Trust Company, or
its successor-in-interest as provided in Section 8.09, or any
successor trustee appointed as herein provided.

Delinquency Percentage:  With
respect to any Distribution Date, the percentage obtained by
dividing (x) the aggregate Stated Principal Balance of (i)
Mortgage Loans Delinquent 60 days or more, (ii) REO Properties
related to the Mortgage Loans and (iii) Mortgage Loans in
foreclosure and in bankruptcy (excluding any such Mortgage Loans
which are less than 60 days Delinquent under the bankruptcy plan)
by (y) the aggregate Stated Principal Balance of the Mortgage
Loans, in each case, calculated prior to taking into account
payments of principal on the Mortgage Loans due on the related Due
Date or received during the related Prepayment Period. 

Delinquency Trigger Event:  A
Delinquency Trigger Event has occurred with respect to a
Distribution Date if the Delinquency Percentage exceeds 33.75% of
the Credit Enhancement Percentage.

Delinquent:  With
respect to any Mortgage Loan and related Monthly Payment, the
Monthly Payment due on a Due Date which is not made by the Close of
Business on the next scheduled Due Date for such Mortgage
Loan.  For example, a Mortgage Loan is 60 or more days
Delinquent if the Monthly Payment due on a Due Date is not made by
the Close of Business on the second scheduled Due Date after such
Due Date.

Depositary Agreement:  The Letter of Representations, dated
March 13, 2007, by and among DTC, the Trust and the Trustee.
 The Trustee is authorized to enter into the Depositary
Agreement on behalf of the Trust.

Determination Date:  With
respect to any Distribution Date, the 15th day of the calendar
month in which such Distribution Date occurs or, if such 15th day
is not a Business Day, the Business Day immediately preceding such
15th day.

Directly Operate:  With
respect to any REO Property, the furnishing or rendering of
services to the tenants thereof, the management or operation of
such REO Property, the holding of such REO Property primarily for
sale to customers, the performance of any construction work thereon
or any use of such REO Property in a trade or business conducted by
the REMIC other than through an Independent Contractor;
provided, however, that the Trustee (or the Servicer
on behalf of the Trustee) shall not be considered to Directly
Operate an REO Property solely because the Trustee (or the Servicer
on behalf of the Trustee) establishes rental terms, chooses
tenants, enters into or renews leases, deals with taxes and
insurance, or makes decisions as to repairs or capital expenditures
with respect to such REO Property.

Disqualified Organization:  Any Person
which is not a Permitted Transferee, but does not include any
Pass-Through Entity which owns or holds a Residual Certificate and
of which a Disqualified Organization, directly or indirectly, may
be a stockholder, partner or beneficiary.

Distribution Account:  The trust
account or accounts created and maintained by the Trustee pursuant
to Section 3.10(b) with itself or an Eligible Institution
which shall be entitled “LaSalle Bank National Association,
as Trustee, in trust for the holders of Washington Mutual
Asset-Backed Certificates, WMABS, Series 2007-HE2.”

Distribution Date:  The 25th
day of any calendar month, or if such 25th day is not a Business
Day, the Business Day immediately following such 25th day,
commencing in March 2007.

DTC: 
The Depository Trust Company.

DTC Participant:  A Person for whom DTC effects
book-entry transfers and pledges of securities deposited with
DTC.

Due Date:  With respect to each Distribution
Date, the first day of the calendar month in which such
Distribution Date occurs (or, in the case of any Mortgage Loan
under the terms of which the Monthly Payment for such Mortgage Loan
was due on a day other than the first day of the calendar month in
which such Distribution Date occurs, the day during the related Due
Period on which such Monthly Payment was due), which is the day of
the month on which the Monthly Payment is due on a Mortgage Loan,
exclusive of any days of grace.

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

Early Termination Date:  As defined
in the Swap Agreement.

Eligible Institution: An institution having (i) the highest
short-term debt rating, and one of the two highest long-term debt
ratings, of the Rating Agencies, (ii) with respect to any
Collection Account, an unsecured long-term debt rating of at least
one of the two highest unsecured long-term debt ratings of the
Rating Agencies, or (iii) the approval of the Rating Agencies.
Notwithstanding the foregoing, Washington Mutual Bank shall be an
“Eligible Institution” if the following conditions are
satisfied: (i) Washington Mutual Bank is acting as Servicer, (ii)
if S&P is a Rating Agency as defined herein, the long-term
unsecured debt obligations of Washington Mutual Bank are rated no
lower than “A-” by S&P and the short-term unsecured
debt obligations of Washington Mutual Bank are rated no lower than
“A-2” by S&P, (iii) if Fitch is a Rating Agency as
defined herein, the long-term unsecured debt obligations of
Washington Mutual Bank are rated no lower than “A” by
Fitch and the short-term unsecured debt obligations of Washington
Mutual Bank are rated no lower than “F1” by Fitch and
(iv) if Moody’s is a Rating Agency as defined herein, the
long-term unsecured debt obligations of Washington Mutual Bank are
rated no lower than “A2” by Moody’s and the
short-term unsecured debt obligations of Washington Mutual Bank are
rated no lower than “P-1” by Moody’s;
provided, that if the long-term or short-term unsecured debt
obligations of Washington Mutual Bank are downgraded by any of the
Rating Agencies to a rating lower than the applicable rating
specified in this sentence, Washington Mutual Bank shall cease to
be an “Eligible Institution” ten Business Days after it
receives notification of such downgrade.

Eligible
Investments: The
investment property or other property listed below:

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

(ii)               
Repurchase agreements on obligations described in clause (i) of
this definition of “Eligible Investments,” provided
that the unsecured obligations of the party (including the
institution acting as Trustee) agreeing to repurchase such
obligations have at the time one of the two highest short term debt
ratings  of the Rating Agencies and provided that such
repurchaser’s unsecured long term debt has one of the two
highest unsecured long term debt ratings of the Rating
Agencies;

(iii)              
Federal funds, certificates of deposit, time deposits and
bankers’ acceptances of the institution acting as Trustee or
any bank or trust company incorporated under the laws of the United
States or any state, provided that the debt obligations of such
bank or trust company (or, in the case of the principal bank in a
bank holding company system, debt obligations of the bank holding
company) at the date of acquisition thereof have one of the two
highest short term debt ratings of the Rating Agencies and
unsecured long term debt has one of the two highest unsecured long
term debt ratings of the Rating Agencies;

(iv)             
Obligations of, or obligations guaranteed by, any state of the
United States or the District of Columbia, provided that such
obligations at the date of acquisition thereof shall have the
highest long-term debt ratings available for such securities from
the Rating Agencies;

(v)               
Commercial paper of any corporation incorporated under the laws of
the United States or any state thereof, which on the date of
acquisition has the highest commercial paper rating of the Rating
Agencies, provided that the corporation has unsecured long term
debt that has one of the two highest unsecured long term debt
ratings of the Rating Agencies;

(vi)             
Securities (other than stripped bonds or stripped coupons) bearing
interest or sold at a discount that are issued by any corporation
incorporated under the laws of the United States or any state
thereof and have the highest long-term unsecured rating available
for such securities from the Rating Agencies; provided, however,
that securities issued by any such corporation will not be Eligible
Investments to the extent that investment therein would cause the
outstanding principal amount of securities issued by such
corporation that are then held as part of the Investment Account or
the Distribution Account to exceed 20% of the aggregate principal
amount of all Eligible Investments then held in the Investment
Account and the Distribution Account; and

(vii)            
Units of taxable money market funds (which may be 12b-1 funds, as
contemplated under the rules promulgated by the Commission under
the Investment Company Act of 1940), which funds have the highest
rating available for such securities from the Rating Agencies or
which have been designated in writing by the Rating Agencies as
Eligible Investments;

provided, however, that such
investment property or other property is held for a temporary
period pursuant to Section 1.860G-2(g)(1) of the Treasury
Regulations, and that such period can in no event exceed thirteen
months.

In no event shall an instrument or security be an
Eligible Investment if such instrument or security (a) evidences a
right to receive only interest payments with respect to the
obligations underlying such instrument or (b) has been purchased at
a price greater than the outstanding principal balance of such
instrument.

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

Escrow Payments:  As defined
in Section 3.09 hereof.

Event of Default:  One or more of the events described in
Section 7.01.

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

Extra Principal Distribution Amount:  With
respect to any Distribution Date, the lesser of (x) the Net
Monthly Excess Cashflow for such Distribution Date and (y) the
Overcollateralization Deficiency Amount for such Distribution
Date.

Extraordinary Trust Fund Expense:  Any
amounts payable from the Distribution Account in respect of taxes
pursuant to Section 2.06, 2.12, 2.16, 2.19, or 2.22, any amounts
payable from the Distribution Account in respect of any REMIC
pursuant to Section 3.11, and any amounts payable from the Trust
Fund as a trustee fee for any successor trustee calculated at a
trustee fee rate in excess of the Trustee Fee Rate.

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

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

Final Recovery Determination:  With
respect to any defaulted Mortgage Loan or any REO Property (other
than a Mortgage Loan or REO Property purchased by the Seller or the
Servicer pursuant to or as contemplated by Section 2.08,
Section 3.16(c) or Section 9.01), a determination made by the
Servicer that all Insurance Proceeds, Liquidation Proceeds and
other payments or recoveries which the Servicer, in its reasonable
good faith judgment, expects to be finally recoverable in respect
thereof have been so recovered.  The Servicer shall maintain
records, prepared by a Servicing Officer, of each Final Recovery
Determination made thereby.

Fitch:  Fitch Ratings, Inc.

Fixed Rate Mortgage Loan:  A Mortgage
Loan which provides for a fixed Mortgage Rate payable with respect
thereto.

Formula Rate:  For any
Distribution Date and the Class A Certificates and the Mezzanine
Certificates, the lesser of (x) LIBOR plus the related Certificate
Margin and (y) the related Maximum Cap Rate. 

Freddie Mac:  The Federal
Home Loan Mortgage Corporation and 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 Mortgage
Loan.

Gross Subsequent Recoveries:  Any
unexpected recoveries related to a Liquidated Mortgage Loan
received by the Servicer which were allocated as a Realized Loss in
reducing a Certificate Principal Balance of a Class of the
Mezzanine Certificates on a Distribution Date prior to the
Prepayment Period in which such funds were received.  Gross
Subsequent Recoveries may include but are not limited to
unanticipated insurance settlements, tax refunds or mortgage
bankruptcy distributions.

Group I Closing Date Mortgage Loans:  Any of
the Group I Mortgage Loans included in the Trust Fund on the
Closing Date.  The aggregate Cut-off Date Principal Balance of
the Group I Closing Date Mortgage Loans is equal to
$374,952,748.58.

Group I Interest Remittance Amount:  With
respect to any Distribution Date, that portion of the REMIC I
Available Distribution Amount for such Distribution Date
attributable to interest received or advanced with respect to the
Group I Mortgage Loans or to Compensating Interest paid by the
Servicer with respect to the Group I Mortgage Loans.

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

Group I Net Swap Payment:  With respect to any Distribution Date,
the Net Swap Payment for such Distribution Date multiplied by the
Group I Swap Percentage for such Distribution Date.

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

Group I Principal Distribution
Amount:  With respect to any Distribution Date,
the sum of (i) (x) the Group I Principal Remittance Amount
minus (y) the amount of any Overcollateralization Release Amount
for such Distribution Date multiplied by the Group I Principal
Allocation Percentage, and (ii) the Extra Principal Distribution
Amount multiplied by the Group I Principal Allocation Percentage
for such Distribution Date.

Group I Principal Remittance Amount:  With
respect to any Distribution Date, the sum of (i) all scheduled
payments of principal collected or advanced on the Group I
Mortgage Loans by the Servicer that were due during the related Due
Period, (ii) all partial and full principal prepayments of the
Group I Mortgage Loans applied by the Servicer during the
related Prepayment Period, (iii) the principal portion of all Net
Liquidation Proceeds, Insurance Proceeds and Gross Subsequent
Recoveries received during the related Prepayment Period with
respect to the Group I Mortgage Loans, (iv) that portion of
the Purchase Price, representing principal of any repurchased
Group I Mortgage Loan, deposited to the Collection Account
during the related Prepayment Period, (v) the principal portion of
any Substitution Adjustments deposited in the Collection Account
during the related Prepayment Period with respect to the
Group I Mortgage Loans and (vi) on the Distribution Date on
which the Trust is to be terminated in accordance with this
Agreement, that portion of the Termination Price representing
principal with respect to the Group I Mortgage Loans.

Group I Senior Certificates:  The Class I-A Certificates.

Group I Senior Principal Distribution
Amount:  With
respect to any Distribution Date, the amount equal to the lesser of
(I) the aggregate Certificate Principal Balance of the Group I
Senior Certificates immediately prior to such Distribution Date and
(II) the excess of (x) the aggregate Certificate Principal Balance
of the Group I Senior Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i)
52.70% and (ii) the aggregate Stated Principal Balance of the Group
I 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 I 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 0.50% of the aggregate Stated
Principal Balance of the Group I Mortgage Loans as of the Cut-off
Date.

Group I Swap Payment:  With respect to any Distribution Date,
the Swap Payment for such Distribution Date multiplied by the Group
I Swap Percentage for such Distribution Date.

Group I Swap Percentage:  With respect to any Distribution Date,
the percentage equivalent of a fraction, the numerator of which is
the aggregate Stated Principal Balance of the Group I Mortgage
Loans and the denominator of which is the aggregate Stated
Principal Balance of the Mortgage Loans, in each case, 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).

Group I Swap Termination Payment:  The Swap Termination Payment payable by
the Supplemental Interest Trust Trustee multiplied by the Group I
Swap Percentage for such Distribution Date.

Group II Closing Date Mortgage Loans:  Any of the Group II Mortgage Loans
included in the Trust Fund on the Closing Date.  The aggregate
Cut-off Date Principal Balance of the Group II Closing Date
Mortgage Loans is equal to $439,310,558.85.

Group II Interest Remittance Amount:  With respect to any Distribution Date,
that portion of the REMIC I Available Distribution Amount for such
Distribution Date attributable to interest received or advanced
with respect to the Group II Mortgage Loans or to Compensating
Interest paid by the Servicer with respect to the Group II
Mortgage Loans.

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

Group II Net Swap Payment:  With respect to any Distribution Date,
the Net Swap Payment for such Distribution Date multiplied by the
Group II Swap Percentage for such Distribution Date.

Group II Principal Allocation
Percentage:  With
respect to any Distribution Date, 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.

Group II Principal Distribution
Amount:  With
respect to any Distribution Date, the sum of (i) (x) the
Group II Principal Remittance Amount minus (y) the amount of
any Overcollateralization Release Amount for such Distribution Date
multiplied by the Group II Principal Allocation Percentage, and
(ii) the Extra Principal Distribution Amount multiplied by the
Group II Principal Allocation Percentage for such Distribution
Date.

Group II Principal Remittance Amount:  With respect to any Distribution Date,
the sum of (i) all scheduled payments of principal collected or
advanced on the Group II Mortgage Loans by the Servicer that
were due during the related Due Period, (ii) all partial and full
principal prepayments of the Group II Mortgage Loans applied
by the Servicer during the related Prepayment Period, (iii) the
principal portion of all Net Liquidation Proceeds, Insurance
Proceeds and Gross Subsequent Recoveries received during the
related Prepayment Period with respect to the Group II
Mortgage Loans, (iv) that portion of the Purchase Price,
representing principal of any repurchased Group II Mortgage
Loan, deposited to the Collection Account during the related
Prepayment Period, (v) the principal portion of any Substitution
Adjustments deposited in the Collection Account during the related
Prepayment Period with respect to the Group II Mortgage Loans
and (vi) on the Distribution Date on which the Trust is to be
terminated in accordance with this Agreement, that portion of the
Termination Price representing principal with respect to the
Group II Mortgage Loans.

Group II Senior Certificates:  The Class II‐A‐1
Certificates, the Class II-A-2 Certificates and the Class II-A-3
Certificates.

Group II Senior 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 amount equal to the
lesser of (I) the aggregate Certificate Principal Balance of the
Group II Senior Certificates immediately prior to such Distribution
Date and (II) the excess of (x) the aggregate Certificate
Principal Balance of the Group II Senior Certificates immediately
prior to such Distribution Date over (y) the lesser of
(A) the product of (i) 52.70% 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 0.50% of the aggregate Stated
Principal Balance of the Group II Mortgage Loans as of the Cut-off
Date.

Group II Swap Payment:  With respect to any Distribution Date,
the Swap Payment for such Distribution Date multiplied by the Group
II Swap Percentage for such Distribution Date.

Group II Swap Percentage:  With respect to any Distribution Date,
the percentage equivalent of a fraction, the numerator of which is
the aggregate Stated Principal Balance of the Group II Mortgage
Loans and the denominator of which is the aggregate Stated
Principal Balance of the Mortgage Loans, in each case,  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).

Group II Swap Termination Payment:  The Swap Termination Payment payable by
the Supplemental Interest Trust Trustee multiplied by the Group II
Swap Percentage for such Distribution Date.

Indenture:  The
indenture or a document of similar import, if any, entered into
following the Closing Date, by the NIMS Issuer relating to the NIM
Notes to be issued thereunder.

Independent:  When used
with respect to any specified Person, any such Person who
(a) is in fact independent of the Company, the Servicer and
their respective Affiliates, (b) does not have any direct
financial interest in or any material indirect financial interest
in the Company or the Servicer or any Affiliate thereof, and
(c) is not connected with the Company or the Servicer or any
Affiliate thereof as an officer, employee, promoter, underwriter,
trustee, trust administrator, partner, director or Person
performing similar functions; provided, however, that
a Person shall not fail to be Independent of the Company or the
Servicer or any Affiliate thereof merely because such Person is the
beneficial owner of 1% or less of any class of securities issued by
the Company or the Servicer or any Affiliate thereof, as the case
may be.

Independent Contractor:  Either
(i) any Person (other than the Servicer) that would be an
“independent contractor” with respect to any of the
REMICs created hereunder within the meaning of
Section 856(d)(3) of the Code if such REMIC 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 each such REMIC does not receive or derive any income
from such Person and provided that the relationship between
such Person and such REMIC is at arm’s length, all within the
meaning of Treasury Regulation Section 1.856‐4(b)(5), or
(ii) any other Person (including the Servicer) if the Trustee
has received an Opinion of Counsel to the effect that the taking of
any action in respect of any REO Property by such Person, subject
to any conditions therein specified, that is otherwise herein
contemplated to be taken by an Independent Contractor will not
cause such REO Property to cease to qualify as “foreclosure
property” within the meaning of Section 860G(a)(8) of
the Code (determined without regard to the exception applicable for
purposes of Section 860D(a) of the Code), or cause any income
realized in respect of such REO Property to fail to qualify as
Rents from Real Property.

Index:  With respect to each Adjustable
Rate Mortgage Loan and with respect to each related Adjustment
Date, the index as specified in the related Mortgage Note.

Initial Certificate Principal
Balance:  With respect to any Regular
Certificate, the amount designated “Initial Certificate
Principal Balance” on the face thereof.

Initial Notional Amount:  With
respect to any Class C Certificate, the amount designated
“Initial Notional Amount” on the face thereof.

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 (i) to be applied to the restoration of the
related Mortgaged Property or released to the Mortgagor in
accordance with the procedures that the Servicer would follow in
servicing mortgage loans held for its own account, subject to the
terms and conditions of the related Mortgage Note and Mortgage or
(ii) Gross Subsequent Recoveries with respect to such Mortgage
Loan.

Insured NIM Notes:  Net
interest margin securities, if any, issued by the NIMS Issuer,
which are backed, in whole or in part, by the cashflow on certain
or all of the Class C Certificates and the Class P
Certificates and insured by the NIMS Insurer.

Interest Determination Date:  With
respect to the Class A Certificates and the Mezzanine Certificates
and each Accrual Period, the second LIBOR Business Day preceding
the commencement of such Accrual Period.

Interest Distribution Amount:  For any Distribution Date, for any
Class of REMIC I Regular Interests, REMIC II Regular Interests,
REMIC III Regular Interests, and the Class L6-SW Regular Interest,
the amount of interest accrued during the related Accrual Period,
at the related Certificate Interest Rate for such Class for such
Distribution Date, on the respective Class Principal Balance or
Class Notional Amount immediately before such Distribution Date,
reduced by Uncompensated Interest Shortfall and the interest
portion of Realized Losses allocated to such Class on such
Distribution Date pursuant to the definitions of
“Uncompensated Interest Shortfall” and “Realized
Loss,” respectively.

Interest Remittance Amount:  The Group I
Interest Remittance Amount and the Group II Interest Remittance
Amount.

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

LIBOR:  With respect to each Accrual
Period, the rate determined by the Trustee on the related Interest
Determination Date on the basis of the “Interest Settlement
Rate” for United States dollar deposits of one‐month
maturity set forth by the British Bankers’ Association (the
“BBA”), as such rate appears on the Telerate
Page 3750, as of 11:00 a.m. (London time) on such Interest
Determination Date.  With respect to any Interest
Determination Date, if the BBA’s Interest Settlement Rate
does not appear on Telerate Page 3750 as of 11:00 a.m. (London
time) on such date, or if Telerate Page 3750 is not available on
such date the Trustee will obtain such rate from Reuters Monitor
Money Rates Service page “LIBOR01” or Bloomberg L.P.
page “BBAM.”  Alternatively, the Trustee may
request the principal London office of each of the Reference Banks
to provide a quotation of its rate.  On such Interest
Determination Date, LIBOR for the related Accrual Period will be
established by the Trustee as follows:

(i)        
If on such Interest Determination Date two or more Reference Banks
provide such offered quotations, LIBOR for the related Accrual
Period shall be the arithmetic mean of such offered quotations
(rounded upwards if necessary to the nearest whole multiples of
0.03125%); and

(ii)        If
on such Interest Determination Date fewer than two Reference Banks
provide such offered quotations, LIBOR for the related Accrual
Period shall be the higher of (i) LIBOR as determined on the
previous Interest Determination Date and (ii) the Reserve
Interest Rate.

The Trustee will select a particular index as the
alternative index only if it receives an Opinion of Counsel that
the selection of such index will not cause any REMIC to lose its
classification as a REMIC for federal income tax
purposes.

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

Liquidated Mortgage Loan:  As to any
Distribution Date, any Mortgage Loan in respect of which the
Servicer has determined, in accordance with the servicing
procedures specified herein, as of the end of the related
Prepayment Period, that all Liquidation Proceeds which it expects
to recover with respect to the liquidation of the Mortgage Loan or
disposition of the related REO Property have been 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 the Trust Fund by
reason of its being purchased, sold or replaced pursuant to or as
contemplated by Section 2.08, Section 3.16(c) or Section
9.01.  With respect to any REO Property, either of the
following events:  (i) a Final Recovery Determination is
made as to such REO Property or (ii) such REO Property is
removed from the Trust Fund by reason of its being sold or
purchased pursuant to Section 3.16(c), Section 3.23 or Section
9.01.

Liquidation Proceeds:  The amount
(other than amounts received in respect of the rental of any REO
Property prior to REO Disposition) received by the Servicer in
connection with (i) the taking of all or a part of a Mortgaged
Property by exercise of the power of eminent domain or
condemnation, (ii) the liquidation of a defaulted Mortgage
Loan by means of a trustee’s sale, foreclosure sale or
otherwise or (iii) the repurchase, substitution or sale of a
Mortgage Loan or an REO Property pursuant to or as contemplated by
Section 2.08, Section 3.16(c), Section 3.23 or Section 9.01.

Loan Group:  Either Loan Group I or Loan Group
II.

Loan Group I:  All of the Group I Mortgage Loans
collectively.

Loan Group II:  All of the Group II Mortgage Loans
collectively.

Loan‐to‐Value Ratio:  As of
any date and as to any Mortgage Loan, the fraction, expressed as a
percentage, the numerator of which is the (x) Principal
Balance of the Mortgage Loan (if such Mortgage Loan is secured by a
first lien on the related Mortgaged Property) or the sum of the
Principal Balance of the Mortgage Loan and any other mortgage loan
secured by a senior lien on the related Mortgaged Property (if such
Mortgage Loan is secured by a junior lien on the related Mortgaged
Property) and the denominator of which is (y) the Value of the
related Mortgaged Property.

Lost Note Affidavit:  With
respect to any Mortgage Loan as to which the original Mortgage Note
has been permanently lost or destroyed and has not been replaced,
an affidavit from the Seller certifying that the original Mortgage
Note has been lost or destroyed (together with a copy of the
related Mortgage Note and indemnifying the Trust against any loss,
cost or liability resulting from the failure to deliver the
original Mortgage Note) in the form of Exhibit C hereto.

Maximum Cap Rate:  For any
Distribution Date and the Group I Senior Certificates, a per annum
rate equal to (a) the product of (i) the weighted average of the
Adjusted Net Maximum Mortgage Rates of the Group I Mortgage Loans,
weighted on the basis of the Stated Principal Balances thereof as
of the Due Date in the month preceding the month of such
Distribution Date (adjusted for amounts included in the Group I
Principal Remittance Amount on any prior Distribution Date) and
(ii) the sum of (I) a fraction (1) the numerator of which is the
aggregate Stated Principal Balance of the Mortgage Loans as of the
Due Date in the month preceding the month of such Distribution
Date, and (2) the denominator of which is aggregate Certificate
Principal Balance of the Class A Certificates and the Mezzanine
Certificates immediately prior to such Distribution Date, and (II)
a fraction (1) the numerator of which is (A) any Net Counterparty
Payment for such Distribution Date less (B) any unpaid Swap
Termination Payment payable by the Supplemental Interest Trust
Trustee, including any amount remaining unpaid from prior
Distribution Dates (unless the Swap Counterparty is the Defaulting
Party or the sole Affected Party (each, as defined in the Swap
Agreement)), less (C) the Net Swap Payment, if any, for such
Distribution Date, in each case multiplied by 12, and (2) the
denominator of which is the aggregate Certificate Principal Balance
of the Class A Certificates and the Mezzanine Certificates
immediately prior to such Distribution Date multiplied by (b) a
fraction, the numerator of which is 30 and the denominator of which
is the actual number of days elapsed in the related Accrual
Period.

For any Distribution Date and the Group II Senior
Certificates, a per annum rate equal to (a) the product of (i) the
weighted average of the Adjusted Net Maximum Mortgage Rates of the
Group II Mortgage Loans, weighted on the basis of the Stated
Principal Balances thereof as of the Due Date in the month
preceding the month of such Distribution Date (adjusted for amounts
included in the Group II Principal Remittance Amount on any prior
Distribution Date) and (ii) the sum of (I) a fraction (1) the
numerator of which is the aggregate Stated Principal Balance of the
Mortgage Loans as of the Due Date in the month preceding the month
of such Distribution Date, and (2) the denominator of which is
aggregate Certificate Principal Balance of the Class A Certificates
and the Mezzanine Certificates immediately prior to such
Distribution Date, and (II) a fraction (1) the numerator of which
is (A) any Net Counterparty Payment for such Distribution Date less
(B) any unpaid Swap Termination Payment payable by the Supplemental
Interest Trust Trustee, including any amount remaining unpaid from
prior Distribution Dates (unless the Swap Counterparty is the
Defaulting Party or the sole Affected Party (each, as defined in
the Swap Agreement)), less (C) the Net Swap Payment, if any, for
such Distribution Date, in each case multiplied by 12, and (2) the
denominator of which is the aggregate Certificate Principal Balance
of the Class A Certificates and the Mezzanine Certificates
immediately prior to such Distribution Date multiplied by (b) a
fraction, the numerator of which is 30 and the denominator of which
is the actual number of days elapsed in the related Accrual
Period.

For any Distribution Date and the Mezzanine
Certificates, a per annum rate equal to the weighted average
(weighted on the basis of the results of subtracting from the
aggregate principal balance of each Loan Group as of the Due Date
in the month preceding the month of such Distribution Date
(adjusted for Principal Prepayments in full distributed on a prior
Distribution Date) the sum of the current Certificate Principal
Balances of the related classes of the Class A Certificates) of (1)
the Maximum Cap Rate with respect to the Group I Senior
Certificates and (2) the Maximum Cap Rate with respect to the Group
II Senior Certificates.

Maximum ZZ Uncertificated Accrued Interest
Deferral Amount: With respect to
any Distribution Date, the excess of (i) Interest Distribution
Amount calculated with the Certificate Interest Rate for the Class
L2-ZZ Regular Interest and a Class Principal Balance equal to the
excess of (x) the Class Balance of the Class L2-ZZ Regular Interest
over (y) the REMIC II Overcollateralized Amount, in each case for
such Distribution Date, over (ii) Interest Distribution Amount on
the Class L2-1-A, L2-2-A1, L2-2-A2, L2-2-A3, L2-M1, L2-M2, L2-M3,
L2-M4, L2-M5, L2-M6, L2-M7, L2-M8 and L2-M9 Regular Interests, with
the rate on each such Regular Interest subject to a floor and a cap
equal to the lesser of (i) LIBOR plus the Certificate Margin for
the Corresponding Certificate for such Regular Interest, and (ii)
the REMIC Net WAC Rate Corresponding Certificates; provided,
however, that for this purpose, calculations of the
Certificate Interest Rate and the related caps with respect to all
of the Regular Interests shall be multiplied by a fraction, the
numerator of which is the actual number of days in the Accrual
Period and the denominator of which is 30.

Maximum Mortgage Rate:  With
respect to each Mortgage Loan, the percentage set forth in the
related Mortgage Note as the maximum Mortgage Rate thereunder.

MERS:  Mortgage Electronic Registration
Systems, Inc., a Delaware corporation, or any successor
thereto.

MERS Loan:  Any Mortgage Loan registered on the
MERS® System for which MERS appears as the mortgagee of record
on the related Mortgage or on an assignment thereof.

MERS® System:  The system
of recording transfers of Mortgages maintained by MERS.

Mezzanine Certificates:  The Class
M‐1 Certificates, the Class M-2 Certificates, the Class M-3
Certificates, the Class M‐4 Certificates, the Class M-5
Certificates, the Class M‐6 Certificates, the Class M-7
Certificates, the Class M-8 Certificates and the Class M‐9
Certificates.

MIN:  The Mortgage Identification Number
for a MERS Loan.

Minimum Mortgage Rate:  With
respect to each Mortgage Loan, the percentage set forth in the
related Mortgage Note as the minimum Mortgage Rate thereunder.

MOM Loan:  A MERS Loan that was registered on
the MERS® System at the time of origination thereof and for
which MERS appears as the mortgagee of record on the related
Mortgage.

Monthly Interest Distributable
Amount:  With respect to any Distribution Date
and the Class A Certificates and the Mezzanine Certificates, the
amount of interest accrued during the related Accrual Period at the
related Pass-Through Rate on the Certificate Principal Balance of
such Class immediately prior to such Distribution Date.  With
respect to the Class C Certificates and any Distribution Date, the
Monthly Interest Distributable Amount shall equal the Interest
Distribution Amount for the Class L3-C Regular Interest.

In all cases, the Monthly Interest Distributable
Amount for any Class of Certificates shall be reduced by any Net
Prepayment Interest Shortfalls and Relief Act Interest Shortfalls
allocated to such Class under Section 1.03.

Monthly Payment:  With
respect to any Mortgage Loan, the scheduled monthly payment of
principal and interest on such Mortgage Loan which is payable by
the related Mortgagor from time to time under the related Mortgage
Note, determined:  (a) after giving effect to
(i) any Deficient Valuation and/or Debt Service Reduction with
respect to such Mortgage Loan and (ii) any reduction in the
amount of interest collectible from the related Mortgagor pursuant
to the Relief Act; (b) without giving effect to any extension
granted or agreed to by the Servicer pursuant to Sections 3.01 and
3.07; and (c) on the assumption that all other amounts, if
any, due under such Mortgage Loan are paid when due.

Moody’s: 
Moody’s Investors Service, Inc.

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

Mortgage File:  The
following mortgage documents pertaining to a particular Mortgage
Loan and any additional documents required to be added to the
Mortgage File pursuant to this Agreement:

(a)        the
original Mortgage Note, endorsed in blank or in the following
form:  “Pay to the order of LaSalle Bank National
Association, as Trustee under the applicable agreement, without
recourse,” with all prior and intervening endorsements
showing a complete chain of endorsement from the originator to the
Person so endorsing to the Trustee or (in the case of not more than
1.00% of the Mortgage Loans, by aggregate principal balance as of
the Cut‐off Date) a copy of such original Mortgage Note with
an accompanying Lost Note Affidavit executed by the
Seller;

(b)        the
original Mortgage, noting the presence of the MIN of the Mortgage
Loan and language indicating that the Mortgage Loan is a MOM Loan
if the Mortgage Loan is a MOM loan, with evidence of recording
thereon, and a copy, certified by the appropriate recording office,
of the recorded power of attorney, if the Mortgage was executed
pursuant to a power of attorney, with evidence of recording
thereon;

(c)       
unless the Mortgage Loan is registered on the MERS® System, an
original Assignment in blank;

(d)        the
original recorded Assignment or Assignments showing a complete
chain of assignment from the originator to the Person assigning the
Mortgage to the Trustee or in blank (or to MERS, if the Mortgage
Loan is registered on the MERS® System and noting the presence
of the MIN) as contemplated by the immediately preceding clause
(c);

(e)        the
original or copies of each assumption, modification, written
assurance or substitution agreement, if any; and

(f)        
as an original, photocopy or in electronic form, lender’s
title insurance policy, together with all endorsements or riders
issued with or subsequent to the issuance of such policy, insuring
the priority of the Mortgage as a first or second lien on the
Mortgaged Property represented therein as a fee interest vested in
the Mortgagor, or in the event such title policy is unavailable, a
written commitment or uniform binder or preliminary report of title
issued by the title insurance or escrow company.

Mortgage Loan:  Each
mortgage loan transferred and assigned to the Trustee and delivered
to the Trustee or another Custodian pursuant to Section 2.04
as from time to time held as a part of the Trust Fund, the Mortgage
Loans so held being identified in the Mortgage Loan Schedule.

Mortgage Loan Purchase Agreement:  The
Amended and Restated Mortgage Loan Purchase and Sale Agreement,
dated as of May 25, 2006, between the Company and Washington Mutual
Mortgage Securities Corp., as supplemented and amended by the Term
Sheet, dated the Closing Date, between the Company and Washington
Mutual Mortgage Securities Corp. and relating to the
Certificates.

Mortgage Loan Schedule:  As of any
date, the list of Mortgage Loans included in REMIC I on such date,
attached hereto as Exhibit D.  The Mortgage Loan Schedule
shall be prepared by the Company and shall set forth the following
information as of the Cut‐off Date with respect to each
Mortgage Loan, as applicable:

(i)          
the Mortgagor’s name and the originator’s Mortgage Loan
identifying number;

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

(iii)         
a code indicating whether the Mortgaged Property is
owner‐occupied;

(iv)         
the type of Residential Dwelling constituting the Mortgaged
Property;

(v)         
the original months to maturity;

(vi)         
the Loan‐to‐Value Ratio and the combined
Loan‐to‐Value Ratio at origination;

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

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

(ix)         
the stated maturity date;

(x)         
the amount of the Monthly Payment due on the first Due Date after
the Cut‐off Date;

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

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

(xiii)       
the Stated Principal Balance of the Mortgage Loan as of the Close
of Business on the Cut‐off Date;

(xiv)       
whether such Mortgage Loan is a Fixed Rate Mortgage Loan or an
Adjustable Rate Mortgage Loan, and with respect to each Adjustable
Rate Mortgage Loan:  (a) the Gross Margin, (b) the
Maximum Mortgage Rate, (c) the Minimum Mortgage Rate, (d) the
Periodic Rate Cap for the first Adjustment Date and each subsequent
Adjustment Date and (e) the next Adjustment Date immediately
following the Cut‐off Date;

(xv)        
a code indicating the purpose of the Mortgage Loan (i.e., purchase
financing, rate/term refinancing, cash‐out
refinancing);

(xvi)       
the Mortgage Rate at origination;

(xvii)       a code
indicating the documentation program;

(xviii)      the
Seller’s risk grade and the FICO score;

(xix)       
the Origination Value of the Mortgaged Property;

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

(xxi)       
whether such Mortgage Loan is secured by a first lien or a second
lien on the related Mortgaged Property;

(xxii)       the
date of origination;

(xxiii)      the stated
remaining months to maturity as of the Cut‐off
Date;

(xxiv)      the current
principal and interest payment of the Mortgage Loan as of the
Cut‐off Date;

(xxv)       the
interest “paid to date” of the Mortgage Loan as of the
Cut‐off Date;

(xxvi)      a code
indicating whether the Mortgage Loan is a Group I Mortgage
Loan or a Group II Mortgage Loan;

(xxvii)     a code indicating
the Index that is associated with such Mortgage Loan (if such
Mortgage Loan is an Adjustable Rate Mortgage Loan);

(xxviii)     the rate
adjustment frequency (if such Mortgage Loan is an Adjustable Rate
Mortgage Loan);

(xxix)      the number
of years the prepayment penalty is in effect; and

(xxx)       with
respect to each MOM Loan, the related MIN.

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 Cut‐off Date 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 Servicer in
accordance with the provisions of this Agreement.  With
respect to any Substitute Mortgage Loan, Cut‐off Date shall
refer to the related Cut‐off Date for such Mortgage Loan,
determined in accordance with the definition of Cut‐off Date
herein.    The Mortgage Loan Schedule shall clearly
identify the Mortgage Loans that are included in Group I
Mortgage Loans and those that are included in Group II
Mortgage Loans.

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

Mortgage Pool:  The pool of
Mortgage Loans, identified on Exhibit D from time to time, and
any REO Properties acquired in respect thereof.

Mortgage Pool Assets: (i) The Mortgage Loans (including all
Substitute Mortgage Loans) identified on the Mortgage Loan
Schedule, and all rights pertaining thereto, and all Monthly
Payments due after the Cut-Off Date and all other payments and
distributions collected with respect to the Mortgage Loans on or
after the Cut-Off Date; (ii) the Distribution Account, the
Investment Account, the Supplemental Interest Account, the Credit
Support Annex Account, the Reserve Fund and all money, instruments,
investment property, and other property credited thereto, carried
therein, or deposited therein (except amounts constituting the
Servicing Fee); (iii) the Collection Account, and all money,
instruments, investment property, and other property credited
thereto, carried therein, or deposited therein (except amounts
constituting the Servicing Fee); (iv) any REO Property; and (v) the
Swap Agreements.

Mortgage Rate:  With
respect to each Fixed Rate Mortgage Loan, the annual rate set forth
in the related Mortgage Note, as amended, modified or supplemented
from time to time.  With respect to each Adjustable Rate
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 (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, to equal the sum, rounded to the next highest or
nearest 0.125% (as provided in the Mortgage Note), of the Index,
determined as set forth in the related Mortgage Note, plus the
related Gross Margin subject to the limitations set forth in the
related Mortgage Note.  With respect to each Mortgage Loan
that becomes an REO Property, as of any date of determination, the
annual rate determined in accordance with the immediately preceding
sentence as of the date such Mortgage Loan became an REO
Property.

Mortgaged Property:  The
underlying property securing a Mortgage Loan, including any REO
Property, consisting of a fee simple or leasehold estate in a
parcel of real property improved by a Residential Dwelling.

Mortgagor:  The obligor
on a Mortgage Note.

Net Counterparty Payment:  With
respect to any Distribution Date, the amount, if any, by which the
Counterparty Payment for such Distribution Date exceeds the Swap
Payment for such Distribution Date.

Net Liquidation Proceeds:  With
respect to any Liquidated Mortgage Loan or any other disposition of
related Mortgaged Property (including REO Property), the related
Liquidation Proceeds net of Advances, Servicing Advances, Servicing
Fees and any other servicing fees received and retained in
connection with the liquidation of such Mortgage Loan or Mortgaged
Property in accordance with the terms of this Agreement.

Net Monthly Excess Cashflow:  With respect to each Distribution Date,
the sum of (a) any Overcollateralization Release Amount for such
Distribution Date, (b) any Remaining Principal Distribution Amount
and (c) the positive excess of (x) the REMIC III Available
Distribution Amount for such Distribution Date over (y) the sum for
such Distribution Date of (A) Monthly Interest Distributable
Amounts for the Class A Certificates and the Mezzanine
Certificates, (B) the Unpaid Interest Shortfall Amounts for the
Class A Certificates, (C) the Interest Distribution Amount for the
Class L3-SW Interest, (D) any unpaid Swap Termination Payment
payable by the Supplemental Interest Trust Trustee, including any
amount remaining unpaid from prior Distribution Dates (unless the
Swap Counterparty is the Defaulting Party or the sole Affected
Party (each, as defined in the Swap Agreement)), and (E) the
Principal Remittance Amount.

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
Servicing Fee Rate.

Net Prepayment Interest Shortfall:  With
respect to any Distribution Date, the excess, if any, of any
Prepayment Interest Shortfalls for such date over the related
Compensating Interest.

Net Swap Payment:  With
respect to any Distribution Date, the amount, if any, by which the
Swap Payment exceeds the Counterparty Payment on such Distribution
Date.  The Net Swap Payment shall always equal the Interest
Distribution Amount on the Class L3-SW Regular Interest.

Net WAC Rate:  For any
Distribution Date (other than the first Distribution Date) the
Group I Senior Certificates is a per annum rate equal to (a) the
excess, if any, of (i) the weighted average of the Adjusted Net
Mortgage Rates of the Group I Mortgage Loans, weighted on the basis
of the Stated Principal Balances thereof as of the Due Date in the
month preceding the month of such Distribution Date (adjusted for
amounts included in the Group I Principal Remittance Amount on any
prior Distribution Date) over (ii) the percentage equivalent of a
fraction, (1) the numerator of which is the sum of (A) any unpaid
Group I Swap Termination Payment, including any amount remaining
unpaid from prior Distribution Dates (unless the Swap Counterparty
is the Defaulting Party or the sole Affected Party (each, as
defined in the Swap Agreement)), and (B) the Group I Net Swap
Payment, if any such amount is then payable under the Swap
Agreement, for such Distribution Date, in each case multiplied by
12, and (2) the denominator of which is the aggregate Stated
Principal Balance of the Group I Mortgage Loans as of the Due Date
in the month preceding the month of such Distribution Date
multiplied by (b) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days elapsed in the
related Accrual Period. 

For any Distribution Date (other than the first
Distribution Date) and the Group II Senior Certificates is a per
annum rate equal to (a) the excess, if any, of (i) the weighted
average of the Adjusted Net Mortgage Rates of the Group II Mortgage
Loans, weighted on the basis of the Stated Principal Balances
thereof as of the Due Date in the month preceding the month of such
Distribution Date (adjusted for amounts included in the Group II
Principal Remittance Amount on any prior Distribution Date) over
(ii) the percentage equivalent of a fraction, (1) the numerator of
which is the sum of (A) any unpaid Group II Swap Termination
Payment, including any amount remaining unpaid from prior
Distribution Dates (unless the Swap Counterparty is the Defaulting
Party or the sole Affected Party (each, as defined in the Swap
Agreement)), and (B) the Group II Net Swap Payment, if any such
amount is then payable under the Swap Agreement, for such
Distribution Date, in each case multiplied by 12, and (2) the
denominator of which is the aggregate Stated Principal Balance of
the Group II Mortgage Loans as of the Due Date in the month
preceding the month of such Distribution Date multiplied by (b) a
fraction, the numerator of which is 30 and the denominator of which
is the actual number of days elapsed in the related Accrual
Period. 

For any Distribution Date and the Mezzanine
Certificates, the Subordinated Net WAC Rate.

Net WAC Rate Carryover Amount:  With respect to any Class of the Class
A Certificates and the Mezzanine Certificates and any Distribution
Date on which the Pass‐Through Rate for such Class of
Certificates exceeds the related Net WAC Rate, the sum of
(i) the positive excess of (A) the amount of interest
that would have been distributable to such Class of Certificates if
interest on such Class of Certificates for such Distribution Date
were calculated at the lower of (x) the rate specified in the
Preliminary Statement for such Class of Certificates and (y) the
related Maximum Cap Rate on such Distribution Date over
(B) the amount of interest that would have been distributable
on such Class of Certificates if interest on such Class of
Certificates were calculated at the related Net WAC Rate for such
Distribution Date and (ii) the Net WAC Rate Carryover Amount
for such Class for the prior Distribution Date not previously
distributed, together with interest thereon at a rate equal to the
lower of (x) the rate specified in the Preliminary Statement for
such Class of Certificates and (y) the related Maximum Cap Rate on
such Distribution Date for the most recently ended Accrual
Period.

New Lease:  Any lease
of REO Property entered into on behalf of the Trust, including any
lease renewed or extended on behalf of the Trust if the Trust has
the right to renegotiate the terms of such lease.

NIM Notes:  The Insured
NIM Notes and the Other NIM Notes. 

NIMS Insurer:  A Person,
or any of its successors that shall be the insurer under an
insurance policy insuring certain payments on Insured NIM Notes, if
any; provided, however, upon the occurrence of
certain events (as set forth in the Indenture and/or any other
agreement among such Person, the NIMS Issuer, the Servicer, the
Trustee and/or other Persons), the NIMS Insurer shall be the Person
designated in the Indenture or such other agreement.  If none
of the net interest margin securities have been issued by the NIMS
Issuer, that are insured by an insurance policy, there shall be no
NIMS Insurer under this Agreement, all references to the NIMS
Insurer or Insured NIM Notes in this agreement are for
administrative convenience only, shall be completely disregarded
and no Person shall have any rights of the NIMS Insurer under this
Agreement.

NIMS Insurer Default:  The
existence and continuation of any default by the NIMS Insurer
(including a failure by the NIMS Insurer to make a payment) under
an insurance policy or policies issued in connection with the
Indenture.

NIMS Issuer:  One or more
Affiliates of the Company and/or one or more entities sponsored by
an Affiliate of the Company.

Nonrecoverable Advance:  Any Advance
or Servicing Advance previously made or proposed to be made in
respect of a Mortgage Loan or REO Property that, in the good faith
business judgment of the Servicer, will not or, in the case of a
proposed Advance or Servicing Advance, would not be ultimately
recoverable from related late payments, Insurance Proceeds or
Liquidation Proceeds on such Mortgage Loan or REO Property as
provided herein.

Notice Addresses:  (a) In the case of the Company, 1301
Second Avenue, WMC 3501A, Seattle, WA 98101, or such other address
as may hereafter be furnished to the Trustee in writing by the
Company, (b) in the case of the Servicer, 1301 Second Avenue, WMC
1401, Seattle, WA 98101, Fax No: (206) 302-4490, Attention: Vice
President Investor Reporting, with a copy to: Washington Mutual
Legal Department, 1301 Second Avenue, WMC 3501, Seattle, WA 98101,
Fax No:  (206) 377-2236, Attention: WaMu, with a copy to
Washington Mutual Mortgage Securities Corp., 1301 Second Avenue,
WMC 1401, Seattle, WA 98101, Attention: Bond Administration, and with a copy to Washington Mutual Bank, 11200
W. Parkland Ave., Milwaukee, WI 53224, Attention: Investor
Reporting, or such other address and fax number as may
hereafter be furnished in writing by the Servicer, (c) in the case
of the Trustee, at its Corporate Trust Office, or such other
address as may hereafter be furnished to the Servicer in writing by
the Trustee, (d) in the case of the Delaware Trustee, 1314 King
Street, Wilmington, DE 19801, or such other address as may
hereafter be furnished to the Servicer in writing by the Delaware
Trustee, (e) in the case of the Trust, c/o LaSalle Bank National
Association, at the Corporate Trust Office, or such other address
as may hereafter be furnished to the Servicer in writing by the
Trustee, (f) in the case of the Certificate Registrar, at its
Corporate Trust Office, or such other address as may hereafter be
furnished to the Trustee in writing by the Certificate Registrar,
(g) in the case of S&P, 55 Water Street, 41st Floor, New York,
New York 10041-0003, Attention:  Residential Mortgage Backed
Securities Surveillance Group, or such other address as may
hereafter be furnished to the Trustee and Servicer in writing by
S&P, (h) in the case of Moody’s, 99 Church Street, New
York, NY 10007, Attention: Monitoring, or such other address as may
hereafter be furnished to the Trustee and Servicer in writing by
Moody’s, (i) in the case of the Swap Counterparty, as
provided in the Swap Agreement, and (j) in the case of the NIMS
Insurer, the NIMS Insurer’s address or telecopy number as set
forth in the Indenture, or such other addresses or telecopy number
as may be furnished to the other parties hereto in writing by the
NIMS Insurer.

Notional Amount:  With respect to the Class L3-C Regular
Interest and the Class C Certificates, immediately prior to any
Distribution Date, an amount equal to the aggregate of the
Uncertificated Principal Balances of the REMIC I Regular
Interests.

OTS: 
The Office of Thrift Supervision, or any successor thereto.

Officer’s Certificate:  A
certificate signed by the Chairman of the Board, the Vice Chairman
of the Board, the President, a vice president (however
denominated), the Treasurer, the Secretary, or one of the assistant
treasurers or assistant secretaries of the Servicer, the Seller or
the Company, as applicable.

Opinion of Counsel:  A written opinion of counsel, who shall
be reasonably acceptable to the Trustee or the Delaware Trustee, if
such opinion is required to be delivered to the Trustee or the
Delaware Trustee, as applicable, and who may be counsel (including
in-house counsel) for the Company or the Servicer.

Optional Termination Date:  The first
Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans and each REO Property remaining in the Trust
Fund is equal to or less than 10% of the Cut-off Date Principal
Balance of the Closing Date Mortgage Loans.

Original Class Certificate Principal
Balance:  With respect to the Class A
Certificates, the Mezzanine Certificates and the Class P
Certificates, the corresponding Certificate Principal Balance on
the Closing Date.

Original Class Notional Amount:  With
respect to the Class C Interest, $814,263,307.43.

Original Trust Agreement:  The Trust Agreement, dated as of
February 1, 2007, between the Company and the Delaware Trustee,
providing for the creation of the Trust.

Origination Value:  With
respect to any Mortgaged Property, the lesser of (i) the Appraised
Value thereof and (ii) the value thereof as determined and assigned
at origination by a review appraisal conducted by the Seller.

Other NIM Notes:  Net
Interest Margin Securities, if any, issued by the NIMS Issuer,
which are backed, in whole or in part, by the cashflow on certain
Class C Certificates and the Class P Certificates and not
insured by any NIMS Insurer.

Overcollateralization Deficiency
Amount:  With respect to any Distribution Date,
the amount, if any, by which the Overcollateralization Target
Amount exceeds the Overcollateralized Amount on such Distribution
Date (assuming that 100% of the aggregate Principal Remittance
Amount is applied as a principal payment on such Distribution
Date).

Overcollateralization Floor:  0.50% of
the aggregate Stated Principal Balance of the Mortgage Loans as of
the Cut-off Date.

Overcollateralization Target Amount:  With
respect to any Distribution Date (i) prior to the Stepdown Date,
4.35% of the aggregate Stated Principal Balance of the Mortgage
Loans as of the Cut-off Date, (ii) on or after the Stepdown Date
provided a Trigger Event is not in effect, the greater of
(x) the lesser of (I) 4.35% of the aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date and
(II) 8.70% of 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 (y) 0.50% of the aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date, and (iii) on
or after the Stepdown Date if a Trigger Event is in effect, the
Overcollateralization Target Amount for the immediately preceding
Distribution Date.  Notwithstanding the foregoing, on and
after any Distribution Date following the reduction of the
aggregate Certificate Principal Balance of the Class A Certificates
and the Mezzanine Certificates to zero, the Overcollateralization
Target Amount will be zero.

Overcollateralized Amount:  With
respect to any Distribution Date, the amount, if any, by which
(i) the aggregate Stated Principal Balance of the Mortgage
Loans on 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) exceeds (ii) the sum of the aggregate Certificate
Principal Balances of the Class A Certificates, the Mezzanine
Certificates and the Uncertificated Principal Balance of the Class
P Interest as of such Distribution Date (after giving effect to
distributions to be made on such Distribution Date, other than
distributions of the Extra Principal Distribution Amount, if
any).

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

Pass-Through Entity:  Any regulated investment company, real
estate investment trust, common trust fund, partnership, trust or
estate, and any organization to which Section 1381 of the Code
applies.

Pass-Through Rate: For each Class of Certificates, the per
annum rate set forth as the Pass-Through Rate for such Class in the
Preliminary Statement hereto.

Paying Agent:  Any paying agent appointed by
the Trustee pursuant to Section 8.12.

Payoff:  Any payment by or on behalf of a Mortgagor of
principal on a Mortgage Loan equal to the entire outstanding
principal balance of such Mortgage Loan, if received in advance of
the last scheduled Due Date for such Mortgage Loan and accompanied
by an amount of interest equal to accrued unpaid interest on the
Mortgage Loan to the date of such payment in full. 
(Prepayment Charges are not payments of principal and hence Payoffs
do not include Prepayment Charges.)

Percentage Interest:  With
respect to any Certificate (other than a Residual Certificate), a
fraction, expressed as a percentage, the numerator of which is the
Initial Certificate Principal Balance or Initial Notional Amount
represented by such Certificate and the denominator of which is the
Original Class Certificate Principal Balance or Original Class
Notional Amount of the related Class.  With respect to a
Residual Certificate, the portion of the Class evidenced thereby,
expressed as a percentage, as stated on the face of such
Certificate; provided, however, with respect to each
Class referred to in this paragraph, that the sum of all such
percentages for each such Class totals 100%.

Periodic Rate Cap:  With
respect to each Adjustable Rate Mortgage Loan and any Adjustment
Date therefor, the fixed percentage set forth in the related
Mortgage Note, which is the maximum amount by which the Mortgage
Rate for such Mortgage Loan may increase or decrease (without
regard to the Maximum Mortgage Rate or the Minimum Mortgage Rate)
on such Adjustment Date from the Mortgage Rate in effect
immediately prior to such Adjustment Date.

Permitted Transferee:  With
respect to the holding or ownership of any Residual Certificate,
any Person other than (i) the United States, a State or any
political subdivision thereof, or any agency or instrumentality of
any of the foregoing, (ii) a foreign government, International
Organization or any agency or instrumentality of either of the
foregoing, (iii) an organization (except certain farmers’
cooperatives described in Code Section 521) which is exempt from
the taxes imposed by Chapter 1 of the Code (unless such
organization is subject to the tax imposed by Section 511 of the
Code on unrelated business taxable income), (iv) rural electric and
telephone cooperatives described in Code Section 1381(a)(2)(C), (v)
any “electing large partnership” as defined in Section
775(a) of the Code, (vi) any Person from whom the Trustee has not
received an affidavit to the effect that it is not a
“disqualified organization” within the meaning of
Section 860E(e)(5) of the Code, and (vii) any other Person so
designated by the Company based upon an Opinion of Counsel that the
transfer of an Ownership Interest in a Residual Certificate to such
Person may cause REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or
REMIC VI to fail to qualify as a REMIC at any time that the
Certificates are outstanding. The terms “United
States,” “State” and “International
Organization” shall have the meanings set forth in Code
Section 7701 or successor provisions. A corporation shall not be
treated as an instrumentality of the United States or of any State
or political subdivision thereof if all of its activities are
subject to tax, and, with the exception of the Freddie Mac, a
majority of its board of directors is not selected by such
governmental unit.

Person:  Any individual, corporation,
limited liability company, partnership, joint venture, association,
joint stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof or any
other entity or organization, whether or not a legal entity.

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.

Preference Claim:  As defined
in Section 4.10 hereof.

Prepayment Charge:  With
respect to any Mortgage Loan, the charges or premiums, if any, due
in connection with a full (but not partial) prepayment of such
Mortgage Loan in accordance with the terms thereof (other than any
Servicer Prepayment Charge Payment Amount).

Prepayment Charge Schedule:  As of the
Cut‐off Date, a list attached hereto as Schedule I
(including the Prepayment Charge Summary attached thereto), setting
forth the following information with respect to each Prepayment
Charge:

(i)        
the Mortgage Loan identifying number;

(ii)        a
code indicating the type of Prepayment Charge;

(iii)       the
state of origination of the related Mortgage Loan;

(iv)       the date
on which the first monthly payment was due on the related Mortgage
Loan;

(v)        the
term of the related Prepayment Charge; and

(vi)       the
principal balance of the related Mortgage Loan as of the
Cut‐off Date.

The Prepayment Charge Schedule shall be amended
from time to time by the Servicer in accordance with the provisions
of this Agreement and a copy of each related amendment shall be
furnished by the Servicer to the NIMS Insurer and the
Trustee.

Prepayment Interest Excess:  With
respect to any Distribution Date, for each Mortgage Loan for which
a Principal Prepayment in full is applied on or after the first
calendar day of the month of such Distribution Date and before the
15th calendar day of such month, the amount of interest collected
on such Principal Prepayment in full at the applicable Net Mortgage
Rate from the first day of the month in which such Distribution
Date occurs through the day on which such Principal Prepayment is
applied.

Prepayment Interest Shortfall:  With
respect to any Distribution Date, for each Mortgage Loan that was
during the related Prepayment Period the subject of a Principal
Prepayment in full or in part that was applied by the Servicer to
reduce the outstanding principal balance of such loan on a date
preceding the Due Date in the month in which such Distribution Date
occurs, an amount equal to interest at the applicable Net Mortgage
Rate on the amount of such Principal Prepayment for the lesser of
(i) the number of days commencing on the date on which the
prepayment is applied and ending on the last day of the month in
which such Principal Prepayment is applied and (ii) 30
days.  The obligations of the Servicer in respect of any
Prepayment Interest Shortfall are set forth in
Section 3.24.  For avoidance of doubt, no Prepayment
Interest Shortfalls shall exist with respect to Principal
Prepayments in full which are applied during the period from the
first through the 14th day of the month of the related Distribution
Date.

Prepayment Period:  With
respect to any Distribution Date, (i) the period from the 15th day
of the month immediately preceding the month in which such
Distribution Date occurs (or in the case of the first Distribution
Date, the Cut-off Date) through the 14th day of the month in which
such Distribution Date occurs, inclusive, for purposes of Principal
Prepayments in full; and (ii) the calendar month immediately
preceding the calendar month in which such Distribution Date
occurs, for any other purpose.  Except for purposes of
calculating Prepayment Interest Excess, Principal Prepayments made
during the calendar month immediately preceding the Cut-off Date
and received by the Servicer shall be deemed to be received after
the Cut-off Date and during the Prepayment Period related to the
first Distribution Date.

Prime Rate:  The prime
rate of United States money center commercial banks as published in
The Wall Street Journal.

Principal Balance:  As to any
Mortgage Loan other than a Liquidated Mortgage Loan, and any day,
the related Cut‐off Date Principal Balance, minus all
collections credited against the Cut‐off Date Principal
Balance of any such Mortgage Loan.  For purposes of this
definition, a Liquidated Mortgage Loan shall be deemed to have a
Principal Balance equal to the Principal Balance of the related
Mortgage Loan as of the final recovery of related Liquidation
Proceeds and a Principal Balance of zero thereafter.  As to
any REO Property and any day, the Principal Balance of the related
Mortgage Loan shall equal the Principal Balance of the related
Mortgage Loan immediately prior to such Mortgage Loan becoming REO
Property minus any REO Principal Amortization received with respect
thereto on or prior to such day.

Principal Distribution Amount:  With
respect to any Distribution Date, the sum of the Group I
Principal Distribution Amount and the Group II Principal
Distribution Amount.

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

Principal Remittance Amount:  With
respect to any Distribution Date, the sum of the Group I
Principal Remittance Amount and the Group II Principal
Remittance Amount.

Rate Change Date:  With
respect to any REMIC I Regular Interest, the Distribution Date
occurring in the month set forth as the Rate Change Date for such
REMIC I Regular Interest in the Preliminary Statement.

Rating Agency or Rating Agencies:  Initially, each of S&P and
Moody’s and thereafter, each nationally recognized
statistical rating organization that has rated the Certificates at
the request of the Company, or their respective successors in
interest.

Reacquired Mortgage Loan:  A Mortgage
Loan for which another Mortgage Loan is substituted pursuant to and
in accordance with the provisions of Section 2.08.

Realized Loss:  With
respect to any Liquidated Mortgage Loan, the amount of loss
realized equal to the portion of the Principal Balance remaining
unpaid after application of all Net Liquidation Proceeds and
Insurance Proceeds in respect of such Mortgage Loan.  Realized
Losses shall be allocated among the REMIC I, REMIC II, REMIC III,
and REMIC IV Regular Interests and the Certificates, as
follows:

(a)       
Prior to each Determination Date, the Servicer shall determine as
to each Mortgage Loan and REO Property:  (i) the total
amount of Realized Losses, if any, incurred in connection with any
Final Recovery Determinations made during the related Prepayment
Period; (ii) whether and the extent to which such Realized
Losses constituted Bankruptcy Losses; and (iii) the respective
portions of such Realized Losses allocable to interest and
allocable to principal.  Prior to each Determination Date, the
Servicer shall also determine as to each Mortgage Loan: 
(i) the total amount of Realized Losses, if any, incurred in
connection with any Deficient Valuations made during the related
Prepayment Period; and (ii) the total amount of Realized
Losses, if any, incurred in connection with Debt Service Reductions
in respect of Monthly Payments due during the related Due
Period.  The information described in the two preceding
sentences that is to be supplied by the Servicer shall be evidenced
by an Officer’s Certificate delivered to the NIMS Insurer and
the Trustee by the Servicer prior to the Determination Date
immediately following the end of (i) in the case of Bankruptcy
Losses allocable to interest, the Due Period during which any such
Realized Loss was incurred, and (ii) in the case of all other
Realized Losses, the Prepayment Period during which any such
Realized Loss was incurred.

(b)        If
on any Distribution Date after giving effect to all Realized Losses
incurred with respect to the Mortgage Loans during or prior to the
related Due Period and distributions of principal with respect to
the Class A Certificates and the Mezzanine Certificates on such
Distribution Date, the Class Principal Balance of the Class L3-C
Regular Interest is equal to zero, Realized Losses equal to the
Undercollateralized Amount shall be allocated on such Distribution
Date as follows:  first, to the Class M‐9 Certificates,
until the Certificate Principal Balance thereof has been reduced to
zero,  second, to the Class M-8 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero,
third, to the Class M-7 Certificates, until the Certificate
Principal Balance thereof has been reduced to zero, fourth, to the
Class M‐6 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero, fifth, to the Class
M‐5 Certificates, until the Certificate Principal Balance
thereof has been reduced to zero, sixth, to the Class M‐4
Certificates, until the Certificate Principal Balance thereof has
been reduced to zero, seventh, to the Class M-3 Certificates, until
the Certificate Principal Balance thereof has been reduced to zero,
eighth, to the Class M-2 Certificates until the Certificate
Principal Balance thereof has been reduced to zero, and ninth, to
the Class M‐1 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero.  All Realized Losses
to be allocated to the Certificate Principal Balances of the
Mezzanine Certificates on any Distribution Date shall be so
allocated after the actual distributions to be made on such date as
provided in Article IV.  All references above to the
Certificate Principal Balance of the Mezzanine Certificates shall
be to the Certificate Principal Balance of the Mezzanine
Certificates immediately prior to the relevant Distribution Date,
before reduction thereof by any Realized Losses or increase thereof
by any Subsequent Recoveries, in each case to be allocated to such
Mezzanine Certificates on such Distribution Date.

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.  No allocations of any Realized Losses shall be
made to the Class A Certificates or the Class P
Certificates.  Any Realized Losses that reduce the Class
Principal Balance of the Class L3-C Regular Interest, shall be
allocated to reduce the distributions in respect of and/or the
Certificate Principal Balance of the Class C
Certificates.

(c)       
(i)         Realized Losses
on the Group I Mortgage Loans shall be allocated on each
Distribution Date to the Interest Distribution Amount on, and then
the Class Principal Balance of, the Class L1-Y-X Regular
Interest.  If the Class Principal Balance of the Class L1-Y-X
Regular Interest has been reduced to zero, Realized Losses on the
Group I Mortgage Loans shall be allocated to the remaining REMIC I
Group I Regular Interests, first, to those REMIC I Group I Regular
Interests with the designation “A” for which the Rate
Change Dates have occurred, second, to the REMIC I Group I Regular
Interests with the designation “B” and the same
numerical designation as the Regular Interests in the preceding
clause, and third, to the remaining REMIC I Group I Regular
Interests in descending numerical order, in each case until the
Uncertificated Principal Balance of such REMIC I Regular Interest
has been reduced to zero.  Realized Losses on the Group II
Mortgage Loans shall be allocated on each Distribution Date to the
Interest Distribution Amount on, and then the Class Principal
Balance of, the Class L1-Z-X Regular Interest.  If the Class
Principal Balance of the Class L1-Z-X Regular Interest has been
reduced to zero, Realized Losses on the Group II Mortgage Loans
shall be allocated to the remaining REMIC I Group II Regular
Interests, first, to those REMIC I Group II Regular Interests with
the designation “A” for which the Rate Change Dates
have occurred, second, to the REMIC I Group II Regular Interests
with the designation “B” and the same numerical
designation as the Regular Interests in the preceding clause, and
third, to the remaining REMIC I Group II Regular Interests in
descending numerical order, in each case until the Class Principal
Balance of such REMIC I Regular Interest has been reduced to
zero.

(ii)       
50% of all Realized Losses on the Mortgage Loans shall be allocated
on each Distribution Date to the following REMIC II Regular
Interests in the specified percentages, as follows:

first, to the Interest
Distribution Amount payable to the Class L2-XX and Class L2-ZZ
Regular Interests up to an aggregate amount equal to the REMIC II
Interest Loss Allocation Amount, 98% and 2%,
respectively;

second, to the Uncertificated
Principal Balances of the Class L2-XX and Class L2-ZZ Regular
Interests up to an aggregate amount equal to the REMIC II Principal
Loss Allocation Amount, 98% and 2%, respectively;

third, to the Uncertificated
Principal Balances of the Class L2-XX, L2-M9, and L2-ZZ Regular
Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M9 Regular Interest has been
reduced to zero;

fourth, to the Uncertificated
Principal Balances of the Class L2-XX, L2-M8, and L2-ZZ Regular
Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M8 Regular Interest has been
reduced to zero;

fifth, to the Uncertificated
Principal Balances of the Class L2-XX, L2-M7, and L2-ZZ Regular
Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M7 Regular Interest has been
reduced to zero;

sixth, to the Uncertificated
Principal Balances of the Class L2-XX, L2-M6, and L2-ZZ Regular
Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M6 Regular Interest has been
reduced to zero;

seventh, to the Uncertificated
Principal Balances of the Class L2-XX, L2-M5, and L2-ZZ Regular
Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M5 Regular Interest has been
reduced to zero;

eighth, to the Uncertificated
Principal Balances of the Class L2-XX, L2-M4, and L2-ZZ Regular
Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M4 Regular Interest has been
reduced to zero;

ninth, to the Uncertificated
Principal Balances of the Class L2-XX, L2-M3, and L2-ZZ Regular
Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M3 Regular Interest has been
reduced to zero;

tenth, to the Uncertificated
Principal Balances of the Class L2-XX, L2-M2, and L2-ZZ Regular
Interests, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of the Class L2-M2 Regular Interest has been
reduced to zero; and

eleventh, to the
Uncertificated Principal Balances of the Class L2-XX, L2-M1, and
L2-ZZ Regular Interests, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of the Class L2-M1 Regular
Interest has been reduced to zero.

(iii)       50% of
all Realized Losses on the Mortgage Loans shall be allocated on
each Distribution Date to the Class L2-1-GP, L2-1-SB, L2-2-GP,
L2-2-SB, and L2-YY Regular Interests, as follows:

after all distributions have
been made on such Distribution Date, Realized Losses shall be
applied in such a manner as to keep the Uncertificated Principal
Balance of each REMIC II Regular Interest ending with the
designation “GP” equal to 0.01% of the aggregate Stated
Principal Balance of the Mortgage Loans in the related Loan Group
(determined as of the current Distribution Date), and the
Uncertificated Principal Balance of each REMIC II Regular Interest
ending with the designation “SB” equal to 0.01% of the
excess of (x) the aggregate Stated Principal Balance of the
Mortgage Loans in the related Loan Group as of the current
Distribution Date over (y) the Certificate Principal Balance of the
Senior Certificates related to such Loan Group immediately prior to
such Distribution Date (except that if such excess is larger than
it was for the preceding Distribution Date, the least amount of
Realized Loss shall be allocated such that the REMIC II
Subordinated Ratio is maintained); and then to the Class
L2-YY.

(d)        If
on any Distribution Date Allocated Realized Loss Amounts are to be
reinstated due to Subsequent Recoveries, the Allocated Realized
Loss Amounts shall be reinstated on such Distribution Date to
increase the Certificate Principal Balances of the Mezzanine
Certificates in the following order of priority, in each case until
the related Allocated Realized Loss Amount has been reduced to
zero:  first, to the Class M‐1 Certificates,
second to the Class M‐2 Certificates, third to
the Class M‐3 Certificates, fourth to the Class
M‐4 Certificates, fifth to the Class M‐5
Certificates, sixth to the Class M‐6 Certificates,
seventh to the Class M‐7 Certificates, eighth
to the Class M-8 Certificates and ninth to the Class M-9
Certificates.  All Subsequent Recoveries to be allocated to
the Certificate Principal Balances of the Mezzanine Certificates on
any Distribution Date shall be so allocated after the actual
distributions to be made on such date as provided in Article
IV.  All references above to the Certificate Principal Balance
of the Mezzanine Certificates shall be to the Certificate Principal
Balance of the Mezzanine Certificates immediately prior to the
relevant Distribution Date, before reduction thereof by any
Realized Losses or increase thereof by any Subsequent Recoveries,
in each case to be allocated to the Mezzanine Certificates on such
Distribution Date.

Any Allocated Realized Loss Amounts to be
reinstated to a Certificate on any Distribution Date due to
Subsequent Recoveries shall be made by increasing the Certificate
Principal Balance thereof by the amount so reinstated.  No
allocations of any Subsequent Recoveries shall be made to the Class
A Certificates or the Class P Certificates. 

(e)       
(i)         If on any
Distribution Date Subsequent Recoveries occurred in the related
Prepayment Period relating to the Group I Mortgage Loans, the
amount of such Subsequent Recoveries shall be allocated first to
the REMIC I Group I Regular Interests with the designations
“A” and “B” in the reverse order in which
Realized Losses were allocated under paragraph (c)(i) of this
definition of Realized Losses, and then to REMIC I Regular Interest
IX.    If on any Distribution Date Subsequent
Recoveries occurred in the related Prepayment Period relating to
the Group II Mortgage Loans, the amount of such Subsequent
Recoveries shall be allocated first to the REMIC I Group II Regular
Interests with the designations “A” and “B”
in the reverse order in which Realized Losses were allocated under
paragraph (c)(i) of this definition of Realized Losses, and then to
REMIC I Regular Interest IIX.

(ii)        If
on any Distribution Date Subsequent Recoveries occurred in the
related Prepayment Period, the amount of such Subsequent Recoveries
shall be allocated among the REMIC II Regular Interests as
follows:

(i)        
50% of the Subsequent Recoveries from all Loan Groups shall be
allocated among the REMIC II Regular Interests in the same
proportions and amounts, but in the reverse order, as Realized
Losses were allocated under paragraph (c)(ii) of this definition of
Realized Losses.

(ii)       
50% of the Subsequent Recoveries from all Loan Groups shall be
allocated in the same proportions, but in reverse order, as the
Realized Losses were allocated under paragraph (c)(iii) of this
definition of Realized Losses.

Record Date:  With
respect to (i) the Class C Certificates, the Class P Certificates,
the Residual Certificates and any Definitive Certificates, the
Close of Business on the last Business Day of the calendar month
preceding the month in which the related Distribution Date occurs
and (ii) with respect to the Class A Certificates and the
Mezzanine Certificates, the Close of Business on the Business Day
immediately preceding the related Distribution Date;
provided, however, that following the date on which
Definitive Certificates for a Class A Certificate and a Mezzanine
Certificate are available pursuant to Section 5.09, the Record
Date for such Certificates shall be the last Business Day of the
calendar month preceding the month in which the related
Distribution Date occurs. 

Recording Documents:  Documents
referred to in clauses (b), (c), (d), or (e) of the definition of
“Mortgage File.”

Reference Banks:  Those banks
(i) with an established place of business in London, England,
(ii) not controlling, under the control of or under common
control with the Company, the Seller or the Servicer or any
affiliate thereof and (iii) which have been designated as such
by the Trustee with the consent of the NIMS Insurer;
provided, however, that if fewer than two of such
banks provide a LIBOR rate, then any leading banks selected by the
Trustee with the consent of the NIMS Insurer which are engaged in
transactions in United States dollar deposits in the international
Eurocurrency market.

Refinanced Mortgage Loan:  A Mortgage
Loan the proceeds of which were not used to purchase the related
Mortgaged Property.

Regular Certificates:  The Class A
Certificates, the Mezzanine Certificates, the Class C Certificates
and the Class P Certificates.

Regular Interest:  Any of the REMIC I, REMIC II, REMIC
III, or REMIC VI Regular Interests.

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.

Relief Act:  The
Servicemembers’ Civil Relief Act of 2003, as amended, or
similar state or local law.

Relief Act Interest Shortfall:  With
respect to any Distribution Date, for any Mortgage Loan with
respect to which there has been a reduction in the amount of
interest collectible thereon for the most recently ended Due Period
as a result of the application of the Relief Act, the amount by
which (i) interest collectible on such Mortgage Loan during
such Due Period is less than (ii) one month’s interest
on the Principal Balance of such Mortgage Loan at the Mortgage Rate
for such Mortgage Loan before giving effect to the application of
the Relief Act.

Remaining Principal Distribution
Amount:  With respect to any Distribution Date,
an amount equal to the Principal Distribution Amount remaining
after the distributions set forth in paragraphs (g), (h) and (i) of
the definition of REMIC III Distribution Amount.

REMIC I:  The primary segregated pool of assets
subject hereto and to be administered hereunder, with respect to
which a REMIC election is to be made consisting of: 
(i) such Mortgage Loans as from time to time are subject to
this Agreement, together with the Mortgage Files relating thereto,
and together with all collections thereon and proceeds thereof,
(ii) any REO Property, together with all collections thereon
and proceeds thereof, (iii) the Trust’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 Company’s rights with respect to the
Mortgage Loans under the Mortgage Loan Purchase Agreement
(including any security interest created thereby), and (v) the
Collection Account, the Distribution Account (subject to the last
sentence of this definition) 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,
a REMIC election will not be made with respect to the Reserve Fund,
the Supplemental Interest Trust and the Servicer Prepayment Charge
Payment Amounts.

REMIC I Available Distribution
Amount:  With respect
to any Distribution Date, an amount equal to the excess of
(i) the sum of (a) the aggregate of the Monthly Payments
on the Mortgage Loans due on the related Due Date and received on
or prior to the related Determination Date, (b) Liquidation
Proceeds, Insurance Proceeds, Principal Prepayments, Gross
Subsequent Recoveries and other unscheduled recoveries of principal
and interest in respect of the Mortgage Loans during the related
Prepayment Period (other than any prepayment charges collected by
the Servicer in connection with the full prepayment of any of the
Mortgage Loans, any Servicer Prepayment Charge Payment Amount in
connection with the Mortgage Loans and any Prepayment Interest
Excess), (c) the aggregate of any amounts received in respect
of an REO Property acquired in respect of a Mortgage Loan withdrawn
from any REO Account and deposited in the Collection Account for
such Distribution Date, (d) the aggregate of any amounts
deposited in the Collection Account by the Servicer in respect of
related Prepayment Interest Shortfalls on the Mortgage Loans for
such Distribution Date, (e) the aggregate of any Advances made
by the Servicer or the Trustee for such Distribution Date with
respect to the Mortgage Loans, (f) the aggregate of any related
advances made by or on behalf of the Trustee for such Distribution
Date with respect to the Mortgage Loans pursuant to
Section 7.01 and (g) the aggregate of any amounts
constituting proceeds of repurchases or substitutions of the
Mortgage Loans occurring during the related Prepayment Period over
(ii) the sum, without duplication, of (a) amounts
reimbursable or payable to the Depositor, the Servicer, the
Trustee, the Seller, the NIMS Insurer or any Sub‐Servicer
pursuant to Section 3.11 or Section 3.12 in respect of
the Mortgage Loans or otherwise payable in respect of Extraordinary
Trust Fund Expenses, (b) amounts deposited in the Collection
Account or the Distribution Account pursuant to clauses
(i)(a) through (g) above, as the case may be, in error,
(c) Stayed Funds, (d) any Trustee Fee pursuant to Section
8.05 and (e) amounts reimbursable to the Trustee for an advance
made pursuant to Section 7.01 which advance the Trustee has
determined to be nonrecoverable from the Stayed Funds in respect of
which it was made.

REMIC I Distribution Amount:  For any Distribution Date, the REMIC I
Available Distribution Amount shall be distributed to the REMIC I
Regular Interests and the Class R-1 Residual Interest in the
following amounts and priority:

(a)        To
the extent of the REMIC I Available Distribution Amount
attributable to Loan Group I:

(i)                 
first, to the Class L1-Y-X Regular Interest, (A) all amounts
representing Prepayment Charges in respect of the Group I
Loans and (B) on the Distribution Date immediately following the
expiration of the latest Prepayment Charge as identified on the
Prepayment Charge Schedule or any Distribution Date thereafter
until $100 has been distributed pursuant to this clause and clause
(b)(i), below;

(ii)               
second, distributions of remaining amounts shall be made to the
Class L1-Y-X Regular Interest, and each of the Class L1-Y-1A
through L1-Y-59B, pro rata, in an amount equal to (A) the
Interest Distribution Amounts for such Regular Interests for such
Distribution Date, plus (B) any amounts payable in respect thereof
remaining unpaid from previous Distribution Dates;

(iii)              
third, sequentially to those REMIC I Group I Regular Interests with
the designation “A” for which the Rate Change Dates
occurred prior to the current Distribution Date, in numerical order
starting with the Class L1-Y-1A Regular Interest, in each case
until the Class Principal Balance of such Regular Interest has been
reduced to zero;

(iv)             
fourth, sequentially to those REMIC I Group I Regular Interests
with the designation “B” and the same numerical
designations as the REMIC I Group I Regular Interests described in
clause (ii), in numerical order starting with the Class L1-Y-1B
Regular Interest, in each case until the Class Principal Balance of
such Regular Interest has been reduced to zero; and

(v)               
fifth, to the Class L1-Y-X Regular Interest until the Class
Principal Balance thereof has been reduced to zero.

(b)        To
the extent of the REMIC I Available Distribution Amount
attributable to Loan Group II:

(i)                 
first, to the Class L1-Z-X Regular Interest, (A) all amounts
representing Prepayment Charges in respect of the Group II Loans
and (B) on the Distribution Date immediately following the
expiration of the latest Prepayment Charge as identified on the
Prepayment Charge Schedule or any Distribution Date thereafter
until $100 has been distributed pursuant to this clause and clause
(b)(i), below;

(ii)               
second, distributions of remaining amounts shall be made to the
Class L1-Z-X Regular Interest, and each of the Class L1-Z-1A
through L1-Z-59B, pro rata, in an amount equal to (A) the
Interest Distribution Amounts for such Regular Interests for such
Distribution Date, plus (B) any amounts payable in respect thereof
remaining unpaid from previous Distribution Dates;

(iii)              
third, sequentially to those REMIC I Group I Regular Interests with
the designation “A” for which the Rate Change Dates
occurred prior to the current Distribution Date, in numerical order
starting with the Class L1-Z-1A Regular Interest, in each case
until the Class Principal Balance of such Regular Interest has been
reduced to zero;

(iv)             
fourth, sequentially to those REMIC I Group I Regular Interests
with the designation “B” and the same numerical
designations as the REMIC I Group I Regular Interests described in
clause (ii), in numerical order starting with the Class L1-Z-1B
Regular Interest, in each case until the Class Principal Balance of
such Regular Interest has been reduced to zero; and

(v)               
fifth, to the Class L1-Z-X Regular Interest until the Class
Principal Balance thereof has been reduced to zero.

(c)        To
the extent of the REMIC I Available Distribution Amounts for Loan
Group I and Loan Group II for such Distribution Date remaining
after payment of the amounts pursuant to paragraphs (a) and (b) of
this definition of “REMIC I Distribution
Amount”:

(i)        
first, to the REMIC I Regular Interests, pro rata according to the
amount of unreimbursed Realized Losses allocable to principal
previously allocated to each such Class, the aggregate amount of
such unreimbursed Realized Losses; provided, however, that
any amounts distributed pursuant to this paragraph (c)(i) of this
definition of “REMIC I Distribution Amount” shall not
cause a reduction in the Class Principal Balances of any of the
REMIC I Regular Interests; and

(ii)       
second, pro rata in accordance with their remaining Class Principal
Balances; and

(iii)      
third, to the Class R-1 Residual Interest, the Residual
Distribution Amount for the Class R-1 Residual Interest for such
Distribution Date.

REMIC I Group I Regular Interests:  The
Class L1-Y-X Regular Interest and the REMIC I Regular Interests
designated in the Preliminary Statement hereto designated as
Classes L1-Y-1A through L1-Y-59B.

REMIC I Group II Regular Interests:  The Class
L1-Z-X Regular Interest and the REMIC I Regular Interests
designated in the Preliminary Statement hereto designated as
Classes L1-Z-1A through L1-Z-59B.

REMIC I Regular Interest:  Any of the 238 separate
non-certificated beneficial ownership interests in REMIC I issued
hereunder and designated as a “Regular Interest” in
REMIC I in the Preliminary Statement.  Each REMIC I Regular
Interest shall accrue interest at the rate specified in the
Preliminary Statement as 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 Principal Balance as set forth in the Preliminary
Statement.

REMIC II:  The
segregated pool of assets consisting of all of the REMIC I Regular
Interests conveyed to the Trust, for the benefit of REMIC III, as
holder of the REMIC II Regular Interests and the Class R
Certificateholders, as holders of the Class R‐2 Interest,
pursuant to Article II hereunder, and all amounts deposited
therein, with respect to which a separate REMIC election is to be
made.

REMIC II Available Distribution
Amount:  For the REMIC
II Regular Interests and the Class R-2 Residual Interest, the
aggregate of all distributions to the REMIC I Regular Interests
(which amount shall be available for distributions to the REMIC II
Regular Interests and the Class R-2 Residual Interest as provided
herein).

REMIC II Distribution Amount:  (I) For any Distribution Date, the
REMIC II Available Distribution Amount for such Distribution Date
shall be distributed to the REMIC II Regular Interests and the
Class R-2 Residual Interest in the following amounts and
priority:

(a)       
With respect to all the REMIC II Regular Interests:

(i)        
first, to the Class L2-XX Regular Interest, an amount equal to the
Prepayment Charges collected on the Mortgage Loans;

(ii)       
second, to the Class L2-SW Regular Interest, in an amount equal to
(A) Interest Distribution Amount for such Regular Interest for such
Distribution Date, plus (B) any amounts in respect thereof
remaining unpaid from previous Distribution Dates;

(iii)       third,
to the Class L2-XX, L2-1-A, L2-2-A1, L2-2-A2, L2-2-A3, L2-M1,
L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8, L2-M9 and L2-ZZ
Regular Interests, pro rata, in an amount equal to (A) the
Interest Distribution Amounts for such Distribution Date, plus (B)
any amounts in respect thereof remaining unpaid from previous
Distribution Dates; provided, however, that Interest Distribution
Amount in respect of the Class L2-ZZ Regular Interest shall be
reduced and deferred when the REMIC II Overcollateralized Amount is
less than the REMIC II Overcollateralization Target Amount, by the
lesser of (x) the amount of such difference and (y) the Maximum ZZ
Uncertificated Interest Deferral Amount and such amount shall be
payable to the Holders of the Class L2-XX, L2-1-A, L2-2-A1,
L2-2-A2, L2-2-A3, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7,
L2-M8 and L2-M9 Regular Interests in the same proportion as the
Extra Principal Distribution Amount is allocated to the
Corresponding Certificates and the Class Principal Balance of the
Class L2-ZZ Regular Interest shall be increased by such
amount; and

(iv)       fourth,
to the Class L2-1-GP, L2-1-SB, L2-2-GP, L2-2-SB, and L2-YY Regular
Interests, pro rata, in an amount equal to (A) the Interest
Distribution Amounts for such Distribution Date, plus (B) any
amounts in respect thereof remaining unpaid from previous
Distribution Dates;

(b)       
After the distributions in paragraph (a) of this definition of
REMIC II Distribution Amount have been made, 50% of the remaining
REMIC II Available Distribution Amount shall be distributed as
follows:

(i)        
first, in the ratio of 98 to 1 to 1, (A) to the Class L2-XX Regular
Interest until the Class Principal Balance of such Regular Interest
is reduced to zero, (B) to the Class L2-1-A, L2-2-A1, L2-2-A2,
L2-2-A3, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8 and
L2-M9 Regular Interests, allocated among such Classes in the same
proportion as principal payments are allocated to the Corresponding
Certificates, in each case until the Uncertificated Balances of
such Regular Interests are reduced to zero, and (C) to the Class
L2-ZZ Regular Interest until the Uncertificated Principal Balance
of such Regular Interest is reduced to zero; and

(ii)       
any remaining amount to the Class R-2 Residual Interest.

(c)       
After the distributions in paragraph (a) of this definition of
REMIC II Distribution Amount have been made, 50% of the remaining
REMIC II Available Distribution Amount shall be distributed as
follows:

(i)        
first to the Class L2-1-GP, L2-1-SB, L2-2-GP, and L2-2-SB Regular
Interests in the amounts necessary to keep the Class Principal
Balance of each REMIC II Regular Interest with the designation
“GP” equal to 0.01% of the aggregate Stated Principal
Balance of the Mortgage Loans in the related Loan Group (determined
as of the current Distribution Date), and the Class Principal
Balance of each REMIC II Regular Interest with the designation
“SB” 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 Certificates in the related Loan Group;

(ii)       
second, to the Class L2-YY Regular Interest, until the Class
Principal Balance of the Regular Interest has been reduced to zero;
and

(iii)       any
remaining amount to the Class R-2 Residual Interest.

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
Principal Balance of the Mortgage Loans and related REO Properties
then outstanding and (ii) the Certificate Interest Rate for the
Class L2‐XX Regular Interest minus the Marker Rate, divided
by (b) 12.

REMIC II Overcollateralized Amount: With respect to any date of determination,
(i) 0.50% of the aggregate Class Principal Balances of the Class
L2-XX, L2-1-A, L2-2-A1, L2-2-A2, L2-2-A3, L2-M1, L2-M2, L2-M3,
L2-M4, L2-M5, L2-M6, L2-M7, L2-M8, L2-M9 and L2-ZZ Regular
Interests minus (ii) the aggregate of the Uncertificated Principal
Balances of the Class L2-1-A, L2‐2‐A1,
L2‐2‐A2, L2-2-A3, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5,
L2-M6, L2-M7, L2-M8 and L2-M9 Regular Interests, in each case as of
such date of determination.

REMIC II Overcollateralization Target
Amount:  0.50% of the Overcollateralization
Target Amount.

REMIC II Principal Loss Allocation
Amount:  With
respect to any Distribution Date, an amount equal to the product of
(i) 0.50% of the aggregate Principal Balance of the Mortgage Loans
and REO Properties then outstanding and (ii) 1 minus a fraction,
the numerator of which is 2 times the aggregate of the Class
Principal Balances of the Class L2-1-A, L2-2-A1, L2-2-A2, L2-2-A3,
L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8 and L2-M9
Regular Interests and the denominator of which is the aggregate of
the Class Principal Balances of the Class L2-1-A,
L2‐2‐A1, L2‐2‐A2, L2-2-A3, L2-M1, L2-M2,
L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8, L2-M9 and L2-ZZ Regular
Interests.

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 in the
Preliminary Statement.  Each REMIC II Regular Interest shall
accrue interest at the related rate specified in the Preliminary
Statement as in effect from time to time, and shall be entitled to
distributions of principal (other than the Class L2-SW Regular
Interest), subject to the terms and conditions hereof, in an
aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement.

REMIC III:  The segregated pool of assets
consisting of all of the REMIC II Regular Interests conveyed to the
Trust, for the benefit of the Holders of the Regular Certificates
(other than the Class P Certificates), REMIC IV, as the holder of
the Class L3-C Regular Interest, REMIC V as the holder of the Class
L3-P Regular Interest, REMIC VI as holder of the Class L3-SW
Regular Interest, and the Class R Certificateholders, as holders of
the Class R‐3 Interest, pursuant to Article II hereunder, and
all amounts deposited therein, with respect to which a separate
REMIC election is to be made.

REMIC III Available Distribution
Amount:  For the
Certificates (other than the Class C, Class P, and Residual
Certificates), the REMIC III Regular Interests, and the Class R-3
Residual Interest, on any Distribution Date, the aggregate of all
distributions to the REMIC II Regular Interests (which amount shall
be available for distributions to the Certificates (other than the
Class C, Class P and Residual Certificates), the REMIC III Regular
Interests and the Class R-3 Residual Interest).

REMIC III Distribution Amount:  Subject to Section 4.05, the REMIC III
Available Distribution Amount for any Distribution Date shall be
distributed among the Certificates (other than the Class C, Class P
and Residual Certificates), the REMIC III Regular Interests and the
Class R-3 Residual Interest in the following amounts and
priority:

(a)        A
portion of the REMIC III Available Distribution Amount equal to
Group I Interest Remittance Amount for such Distribution
Date, shall be distributed:

(i)        
first, to the Class L3-SW Regular Interest in an amount
equal to the Group I Net Swap Payment for such Distribution
Date, and any unpaid Group I Net Swap Payments remaining unpaid
from prior Distribution Dates;

(ii)       
second, to the Class L3-SW Regular Interest in an amount
equal to the Group II Net Swap Payment, and any Group II
Net Swap Payments remaining unpaid from prior Distribution Dates,
to the extent not paid pursuant to paragraph (b)(i) of this
definition of REMIC III Distribution Amount;

(iii)      
third, to the Class I‐A Certificates, in an amount
equal to the Monthly Interest Distributable Amount and any Unpaid
Interest Shortfall Amount for such Class; and

(iv)      
fourth, concurrently, to the Group II Senior Certificates,
the Monthly Interest Distributable Amount and any Unpaid Interest
Shortfall Amount for such Classes, in each case to the extent not
paid pursuant to paragraph (b)(iii) of this definition of REMIC III
Distribution Amount, pro rata, based on their respective
entitlements.

(b)        A
portion of the REMIC III Available Distribution Amount equal to Group II Interest Remittance Amount for such
Distribution Date, shall be allocated:

(i)        
first, to the Class L3-SW Regular Interest in an amount
equal to the Group II Net Swap Payment for such Distribution
Date, and any unpaid Group II Net Swap Payments remaining
unpaid from prior Distribution Dates;

(ii)       
second, to the Class L3-SW Regular Interest in an amount
equal to the Group I Net Swap Payment for such Distribution Date,
and any Group I Net Swap Payments remaining unpaid from prior
Distribution Dates, to the extent not paid pursuant to paragraph
(a)(i) of this definition of REMIC III Distribution
Amount;

(iii)      
third, concurrently, to the Group II Senior
Certificates, in an amount equal to the Monthly Interest
Distributable Amount and any Unpaid Interest Shortfall Amount for
such Classes, pro rata, based on their respective
entitlements; and

(iv)      
fourth, to the Class I‐A Certificates, in an amount
equal to the Monthly Interest Distributable Amount and any Unpaid
Interest Shortfall Amount for such Class, to the extent not paid
pursuant to paragraph (a)(iii) of this definition of REMIC III
Distribution Amount.

(c)        The
sum of any Group I Interest Remittance Amount and
Group II Interest Remittance Amount remaining undistributed
following the distributions pursuant to paragraphs (a) and (b) of
this definition of REMIC III Distribution Amount shall be
distributed as follows:

first, to the Class
M‐1 Certificates, the related Monthly Interest Distributable
Amount;

second, to the
Class M‐2 Certificates, the related Monthly Interest
Distributable Amount;

third, to the Class
M‐3 Certificates, the related Monthly Interest Distributable
Amount;

fourth, to the
Class M‐4 Certificates, the related Monthly Interest
Distributable Amount;

fifth, to the Class
M‐5 Certificates, the related Monthly Interest Distributable
Amount;

sixth, to the Class
M‐6 Certificates, the related Monthly Interest Distributable
Amount;

seventh, to the
Class M‐7 Certificates, the related Monthly Interest
Distributable Amount;

eighth, to the
Class M‐8 Certificates, the related Monthly Interest
Distributable Amount; and

ninth, to the Class
M‐9 Certificates, the related Monthly Interest Distributable
Amount.

(d)        On
each Distribution Date (a) prior to the Stepdown Date  
or
(b) on which a Trigger Event is in effect, a portion of the REMIC III Available Distribution Amount equal to the
Group I Principal Distribution Amount shall be distributed in
the following amounts and order of priority:

(i)        
first, to the Class L3-SW Regular Interest in an amount
equal to the Group I Net Swap Payment for such Distribution
Date, and any Group I Net Swap Payments remaining unpaid from prior
Distribution Dates, to the extent not paid pursuant to paragraphs
(a)(i) and (b)(ii) of this definition of REMIC III Distribution
Amount;

(ii)       
second, to the Class L3-SW Regular Interest in an amount
equal to the Group II Net Swap Payment for such Distribution Date,
and any Group II Net Swap Payments remaining unpaid from prior
Distribution Dates, to the extent not paid pursuant to paragraphs
(a)(ii), (b)(i), and (e)(i) of this definition of REMIC III
Distribution Amount;

(iii)      
third, to the Class I-A Certificates, until the Certificate
Principal Balance thereof has been reduced to zero; and

(iv)      
fourth, sequentially to the Class II-A-1 Certificates, the
Class II-A-2 Certificates and the Class II-A-3 Certificates, in
each case until their Certificate Principal Balances have been
reduced to zero; provided that, beginning on the first
Distribution Date on or after which the Certificate Principal
Balances of the Mezzanine Certificates have been reduced to zero
and the Net Monthly Excess Cashflow and Overcollateralized Amount
for such Distribution Date are insufficient to cover Realized
Losses on the Group II Mortgage Loans, principal distributions
among the Group II Senior Certificates will be allocated among them
pro rata based on their Certificate Principal Balances, in
each case until their Certificate Principal Balances have been
reduced to zero.

(e)        On
each Distribution Date (a) prior to the Stepdown Date or
(b) on which a Trigger Event is in effect, a portion of the
REMIC III Available Distribution Amount equal to the
Group II Principal Distribution Amount shall be distributed in
the following amounts and order of priority:

(i)        
first, to the Class L3-SW Regular Interest in an amount
equal to the Group II Net Swap Payment for such Distribution Date,
and any Group II Net Swap Payments remaining unpaid from prior
Distribution Dates, to the extent not paid pursuant to paragraphs
(a)(ii) and (b)(i) of this definition of REMIC III Distribution
Amount;

(ii)       
second, to the Class L3-SW Regular Interest in an amount
equal to the Group I Net Swap Payment for such Distribution Date,
and any Group I Net Swap Payments remaining unpaid from prior
Distribution Dates, to the extent not paid pursuant to paragraphs
(a)(i), (b)(ii), and (d)(i) of this definition of REMIC III
Distribution Amount;

(iii)      
third, sequentially to the Class II-A-1 Certificates, the
Class II-A-2 Certificates and the Class II-A-3 Certificates, in
each case until their Certificate Principal Balances have been
reduced to zero; provided that, beginning on the first
Distribution Date on or after which the Certificate Principal
Balances of the Mezzanine Certificates have been reduced to zero
and the Net Monthly Excess Cashflow and Overcollateralized Amount
for such Distribution Date are insufficient to cover Realized
Losses on the Group II Mortgage Loans, principal distributions
among the Group II Senior Certificates will be allocated among them
pro rata based on their Certificate Principal Balances, in
each case until their Certificate Principal Balances have been
reduced to zero; and

(iv)      
fourth, to the Class I-A Certificates, until the Certificate
Principal Balance thereof has been reduced to zero.

(f)        
On each Distribution Date (a) prior to the Stepdown Date or
(b) on which a Trigger Event is in effect, a portion of the
REMIC III Available Distribution Amount equal to the sum of
any Group I Principal Distribution Amount and the
Group II Principal Distribution Amount remaining undistributed
following the distributions pursuant to paragraphs (d) and (e) of
this definition of REMIC III Distribution Amount shall be
distributed in the following amounts and order of priority:

first, to the Class
M‐1 Certificates, until the Certificate Principal Balance
thereof has been reduced to zero;

second, to the
Class M‐2 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero;

third, to the Class
M‐3 Certificates, until the Certificate Principal Balance
thereof has been reduced to zero;

fourth, to the
Class M‐4 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero;

fifth, to the Class
M‐5 Certificates, until the Certificate Principal Balance
thereof has been reduced to zero;

sixth, to the Class
M‐6 Certificates, until the Certificate Principal Balance
thereof has been reduced to zero;

seventh, to the
Class M‐7 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero;

eighth, to the
Class M‐8 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero; and

ninth, to the Class
M‐9 Certificates, until the Certificate Principal Balance
thereof has been reduced to zero.

(g)        On
each Distribution Date (a) on or after the Stepdown Date and
(b) on which a Trigger Event is not in effect, a portion of
the REMIC III Available Distribution Amount equal to the
Group I Principal Distribution Amount shall be distributed in
the following amounts and order of priority:

(i)        
first, to the Class L3-SW Regular Interest in an amount
equal to the Group I Net Swap Payment for such Distribution
Date, and any Group I Net Swap Payments remaining unpaid from
prior Distribution Dates, to the extent not paid pursuant to
paragraphs (a)(i) and (b)(ii) of this definition of REMIC III
Distribution Amount;

(ii)       
second, to the Class L3-SW Regular Interest in an amount
equal to the Group II Net Swap Payment for such Distribution Date,
and any Group II Net Swap Payments remaining unpaid from prior
Distribution Dates, to the extent not paid pursuant to paragraphs
(a)(ii), (b)(i), and (h)(i) of this definition of REMIC III
Distribution Amount;

(iii)      
third, to the Class I-A Certificates, the Group I Senior
Principal Distribution Amount, until the Certificate Principal
Balance thereof has been reduced to zero; and

(iv)      
fourth, sequentially to the Group II Senior Certificates,
the Group II Senior Principal Distribution Amount, to the extent
not paid pursuant to paragraph (h)(iii) of this definition of REMIC
III Distribution Amount, in each case until their Certificate
Principal Balances have been reduced to zero; provided that
beginning on the first Distribution Date on or after which the
Certificate Principal Balances of the Mezzanine Certificates have
been reduced to zero and the Net Monthly Excess Cashflow and
Overcollateralized Amount for such Distribution Date are
insufficient to cover realized losses on the Group II Loans,
principal distributions among the Group II Senior Certificates will
be allocated pro rata based on their Certificate Principal
Balances.

(h)        On
each Distribution Date (a) on or after the Stepdown Date and
(b) on which a Trigger Event is not in effect, a portion of
the REMIC III Available Distribution Amount equal to the
Group II Principal Distribution Amount shall
be distributed in
the following amounts and order of priority:

(i)        
first, to the Class L3-SW Regular Interest in an amount
equal to the Group II Net Swap Payment for such Distribution
Date, and any Group II Net Swap Payments remaining unpaid from
prior Distribution Dates, to the extent not paid pursuant to
paragraphs (a)(ii) and (b)(i) of this definition of REMIC III
Distribution Amount;

(ii)       
second, to the Class L3-SW Regular Interest in an amount
equal to the Group I Net Swap Payment for such Distribution
Date, and any Group I Net Swap Payments remaining unpaid from
prior Distribution Dates, to the extent not paid pursuant to
paragraphs (a)(i), (b)(ii), and (g)(i) of this definition of REMIC
III Distribution Amount;

(iii)      
third, sequentially to the Group II Senior Certificates, the
Group II Senior Principal Distribution Amount, in each case until
their Certificate Principal Balances have been reduced to zero;
provided that beginning on the first Distribution Date on or
after which the Certificate Principal Balances of the Mezzanine
Certificates have been reduced to zero and the Net Monthly Excess
Cashflow and Overcollateralized Amount for such Distribution Date
are insufficient to cover realized losses on the Group II Loans,
principal distributions among the Group II Senior Certificates will
be allocated pro rata based on their Certificate Principal
Balances; and

(iv)      
fourth, to the Class I-A Certificates, the Group I Senior
Principal Distribution Amount, to the extent not paid pursuant to
paragraph (g)(i) of this definition of REMIC III Distribution
Amount, until the Certificate Principal Balance thereof has been
reduced to zero.

(i)        
On each Distribution Date (a) on or after  the Stepdown Date
and (b) on which a Trigger Event is not in effect, a portion
of the REMIC III Available Distribution Amount equal to the sum of
any Group I Principal Distribution Amount and
Group II Principal Distribution Amount remaining undistributed
following the distribution pursuant to paragraphs (g) and (h) of
this definition of REMIC III Distribution Amount shall be
distributed in the following order of priority:

first, to the Class
M‐1 Certificates, the Class M‐1 Principal Distribution
Amount, until the Certificate Principal Balance thereof has been
reduced to zero;

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

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

fourth, to the
Class M‐4 Certificates, the Class M‐4 Principal
Distribution Amount, until the Certificate Principal Balance
thereof has been reduced to zero;

fifth, to the Class
M‐5 Certificates, the Class M‐5 Principal Distribution
Amount, until the Certificate Principal Balance thereof has been
reduced to zero;

sixth, to the Class
M‐6 Certificates, the Class M‐6 Principal Distribution
Amount, until the Certificate Principal Balance thereof has been
reduced to zero;

seventh, to the
Class M‐7 Certificates, the Class M‐7 Principal
Distribution Amount, until the Certificate Principal Balance
thereof has been reduced to zero;

eighth, to the
Class M‐8 Certificates, the Class M‐8 Principal
Distribution Amount, until the Certificate Principal Balance
thereof has been reduced to zero; and

ninth, to the Class
M‐9 Certificates, the Class M‐9 Principal Distribution
Amount, until the Certificate Principal Balance thereof has been
reduced to zero.

(j)        
On each Distribution Date, any REMIC III  Available Distribution
Amount remaining undistributed after the distributions in
paragraphs (a) through (i) of this definition of REMIC III
Distribution Amount shall be distributed in the following order of
priority:

(i)        
to the Class or Classes of Certificates then entitled to receive
distributions in respect of principal, in an amount equal to the
sum of any Extra Principal Distribution Amount and the Remaining
Principal Distribution Amount for such Distribution Date, payable
to such Class or Classes of Certificates as part of the Group I
Principal Distribution Amount or the Group II Principal
Distribution Amount, as applicable, pursuant to paragraphs (d)
through (i) of this definition of REMIC III Distribution
Amount, as applicable;

(ii)       
concurrently, to the Class A Certificates, in an amount
equal to the Unpaid Interest Shortfall Amount, if any, for such
Classes for such Distribution Date to the extent remaining unpaid
after distributions pursuant to paragraphs (a) and (b) of this
definition of REMIC III Distribution Amount on such
Distribution Date, allocated among such classes pro rata
based on their respective remaining entitlements;

(iii)       to the
Class M‐1 Certificates, in an amount equal to the Unpaid
Interest Shortfall Amount, if any, for such Class for such
Distribution Date;

(iv)       to the
Class M‐1 Certificates, in an amount equal to the Allocated
Realized Loss Amount, if any, for such Class for such Distribution
Date;

(v)        to
the Class M-2 Certificates, in an amount equal to the Unpaid
Interest Shortfall Amount, if any, for such Class for such
Distribution Date;

(vi)       to the
Class M-2 Certificates, in an amount equal to the Allocated
Realized Loss Amount, if any, for such Class for such Distribution
Date;

(vii)      to the Class
M-3 Certificates, in an amount equal to the Unpaid Interest
Shortfall Amount, if any, for such Class for such Distribution
Date;

(viii)      to the Class
M-3 Certificates, in an amount equal to the Allocated Realized Loss
Amount, if any, for such Class for such Distribution
Date;

(ix)       to the
Class M‐4 Certificates, in an amount equal to the Unpaid
Interest Shortfall Amount, if any, for such Class for such
Distribution Date;

(x)        to
the Class M‐4 Certificates, in an amount equal to the
Allocated Realized Loss Amount, if any, for such Class for such
Distribution Date;

(xi)       to the
Class M-5 Certificates, in an amount equal to the Unpaid Interest
Shortfall Amount, if any, for such Class for such Distribution
Date;

(xii)      to the Class
M-5 Certificates, in an amount equal to the Allocated Realized Loss
Amount, if any, for such Class for such Distribution
Date;

(xiii)      to the Class
M-6 Certificates, in an amount equal to the Unpaid Interest
Shortfall Amount, if any, for such Class for such Distribution
Date;

(xiv)    
to the Class M-6 Certificates, in an amount equal to the Allocated
Realized Loss Amount, if any, for such Class for such Distribution
Date;

(xv)      to the Class
M-7 Certificates, in an amount equal to the Unpaid Interest
Shortfall Amount, if any, for such Class for such Distribution
Date;

(xvi)    
to the Class M-7 Certificates, in an amount equal to the Allocated
Realized Loss Amount, if any, for such Class for such Distribution
Date;

(xvii)     to
the Class M‐8 Certificates, in an amount equal to the Unpaid
Interest Shortfall Amount, if any, for such Class for such
Distribution Date;

(xviii)    to
the Class M‐8 Certificates, in an amount equal to the
Allocated Realized Loss Amount, if any, for such Class for such
Distribution Date;

(xix)    
to the Class M‐9 Certificates, in an amount equal to the
Unpaid Interest Shortfall Amount, if any, for such Class for such
Distribution Date;

(xx)      to the Class
M‐9 Certificates, in an amount equal to the Allocated
Realized Loss Amount, if any, for such Class for such Distribution
Date;

(xxi)    
to the Class L3-C Regular Interest (in part for further payment on
to the Reserve Fund and the Supplemental Interest Trust Trustee
pursuant to Section 4.05 of this Agreement), the sum of (A) the
Interest Distribution Amount for the Class L3‐C Regular
Interest, plus (B) until the Uncertificated Principal Balance of
the Class L3‐C Regular Interest is reduced to zero, any
Overcollateralization Release Amount for such Distribution Date,
plus (C) until the Uncertificated Principal Balance of the Class
L3‐C Regular Interest is reduced to zero, on any Distribution
Date on which the Certificate Principal Balances of the Class A
Certificates and the Mezzanine Certificates has been reduced to
zero, any remaining amounts for such Distribution Date;
and

(xxii)    
any remaining amounts to the Class R Certificates (in respect of
the Class R-3 Residual Interest).

REMIC III Regular Interests:  The Class L3-C, Class L3-P and Class
L3-SW Regular Interests.

REMIC IV:  The segregated pool of assets
consisting of the Class L3‐C Regular Interest, conveyed to
the Trust, for the benefit of the Holders of the Class C
Certificates and the Class R‐CX Certificates in respect of
the Class R-4 Residual Interests, pursuant to Article II
hereunder, and all amounts deposited therein, with respect to which
a separate REMIC election is to be made.

REMIC IV Available Distribution
Amount:  For the Class
C Certificates and the Class R-4 Residual Interest, on any
Distribution Date, the aggregate of all distributions to the Class
L3-C Regular Interest (which amount shall be available for
distribution to the Class C Certificates and the Class R-4 Residual
Interest).

REMIC IV Distribution Amount:  Subject to Section 4.05, the REMIC IV
Available Distribution Amount for any Distribution Date shall be
distributed to the Class C Certificates.

REMIC IV Regular Interest: Any of the separate non-certificated
beneficial ownership interests in REMIC IV issued hereunder and
designated as a “Regular Interest” in REMIC IV in the
Preliminary Statement.  Each REMIC IV Regular Interest shall
accrue interest at the related rate specified in the Preliminary
Statement as in effect from time to time, but shall not be entitled
to distributions of principal, as set forth in the Preliminary
Statement.

REMIC V:  The segregated pool of assets
consisting of the Class L3-P Regular Interest, conveyed to the
Trust, for the benefit of the Holders of the Class P Certificates
and the Class R‐PX Certificates, pursuant to Article II
hereunder, and all amounts deposited therein, with respect to which
a separate REMIC election is to be made.

REMIC V Available Distribution
Amount:  For the Class
P Certificates and the Class R-5 Residual Interest, on any
Distribution Date, the aggregate of all distributions to the Class
L3-P Interest (which amount shall be available for distribution to
the Class P Certificates and the Class R-5 Residual Interest).

REMIC V Distribution Amount:  The REMIC V Available Distribution
Amount for any Distribution Date shall be distributed to the Class
P Certificates.

REMIC VI:  The segregated pool of assets
consisting of the Class L3‐SW Regular Interest, conveyed to
the Trust, for the benefit of the Holders of the Class L6-SW
Regular Interest and the Class R-CX Certificates in respect of the
Class R‐6 Residual Interest, pursuant to Article II
hereunder, and all amounts deposited therein, with respect to which
a separate REMIC election is to be made.

REMIC VI Available Distribution
Amount:  For the Class
L6-SW Regular Interest and the Class R-6 Residual Interest, on any
Distribution Date, the aggregate of all distributions to the Class
L3-SW Regular Interest (which amount shall be available for
distribution to the Class L6-SW Regular Interest and the Class R-6
Residual Interest).

REMIC VI Distribution Amount:  The REMIC VI Available Distribution
Amount for any Distribution Date shall be distributed to the Class
L6-SW Regular Interest, which amount shall be made available for
payment to the Swap Counterparty as provided in Section 4.05.

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

REMIC Net WAC Rate:  For any
Distribution Date and the regular interests in REMIC III the
ownership of which is represented by the Group I Senior
Certificates, a rate equal to the Certificate Interest Rate for the
Class L2‐1‐GP Regular Interest multiplied by a
fraction, the numerator of which is 30 and the denominator of which
is the actual number of days elapsed in the related Accrual
Period.  For any Distribution Date and the regular interests
in REMIC III the ownership of which is represented by the Group II
Senior Certificates, a rate equal to the Class Interest Rate for
the Class L2‐2‐GP Regular Interest multiplied by a
fraction, the numerator of which is 30 and the denominator of which
is the actual number of days elapsed in the related Accrual
Period.  For any Distribution Date and the regular interests
in REMIC III the ownership of which is represented by the Mezzanine
Certificates, a rate equal to the weighted average of the
Certificate Interest Rates on (a) the Class L2-1-SB Regular
Interest, subject to a cap and a floor equal to the Certificate
Interest Rate for the Class L2-1-GP Regular Interest and (b) the
Class L2-2-SB Regular Interest, subject to a cap and a floor equal
to the Certificate Interest Rate for the Class L2-2-GP Regular
Interest, weighted on the basis of the Uncertificated Principal
Balance of each such Regular Interest, multiplied by a fraction,
the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period.

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

REMIC Regular Interests:  The REMIC I
Regular Interests, the REMIC II Regular Interests, the REMIC III
Regular Interests and the Class L6-SW Regular Interest.

Remittance Report:  A report
prepared by the Servicer and delivered to the NIMS Insurer and the
Trustee pursuant to Section 4.02.

Rents from Real Property:  With
respect to any REO Property, gross income of the character
described in Section 856(d) of the Code.

REO Account:  The account
or accounts maintained by the Servicer in respect of an REO
Property pursuant to Section 3.23.

REO Disposition:  The sale or
other disposition of an REO Property on behalf of the Trust.

REO Imputed Interest:  As to any
REO Property, for any calendar month during which such REO Property
was at any time part of the Trust Fund, one month’s interest
at the applicable Net Mortgage Rate on the Principal Balance of
such REO Property (or, in the case of the first such calendar
month, of the related Mortgage Loan if appropriate) as of the Close
of Business on the Distribution Date in such calendar month.

REO Principal Amortization:  With
respect to any REO Property, for any calendar month, the excess, if
any, of (a) the aggregate of all amounts received in respect
of such REO Property during such calendar month, whether in the
form of rental income, sale proceeds (including, without
limitation, that portion of the Termination Price paid in
connection with a purchase of all of the Mortgage Loans and REO
Properties pursuant to Section 9.01 that is allocable to such
REO Property) or otherwise, net of any portion of such amounts
(i) payable pursuant to Section 3.23 in respect of the
proper operation, management and maintenance of such REO Property
or (ii) payable or reimbursable to the Servicer pursuant to
Section 3.23 for unpaid Servicing Fees in respect of the
related Mortgage Loan and unreimbursed Servicing Advances and
Advances in respect of such REO Property or the related Mortgage
Loan, over (b) the REO Imputed Interest in respect of such REO
Property for such calendar month.

REO Property:  A Mortgaged
Property acquired by the Servicer on behalf of the Trust through
foreclosure or deed‐in‐lieu of foreclosure, as
described in Section 3.23.

Replacement Payment:  As defined
in Section 3.27(b) hereof.

Repurchase Price:  With
respect to any Mortgage Loan or REO Property to be purchased
pursuant to or as contemplated by Section 2.08, Section
3.16(c) or Section 9.01, and as confirmed by an
Officer’s Certificate from the 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 9.01), (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 paid by the Mortgagor or by
an advance by the Servicer 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 paid by the
Mortgagor or by an advance by the Servicer through the end of the
calendar month immediately preceding the calendar month in which
such REO Property was acquired, plus (2) REO Imputed Interest
for such REO Property for each calendar month commencing with the
calendar month in which such REO Property was acquired and ending
with the calendar month in which such purchase is to be effected,
net of the total of all net rental income, Insurance Proceeds,
Liquidation Proceeds and Advances that as of the date of purchase
had been distributed in respect of REO Imputed Interest pursuant to
Article IV, (iii) any unreimbursed Servicing Advances,
Advances and Nonrecoverable Advances and any unpaid Servicing Fees
allocable to such Mortgage Loan or REO Property, (iv) any
amounts previously withdrawn from the Collection Account in respect
of such Mortgage Loan or REO Property pursuant to Section 3.11
(a)(ix) and Section 3.16(b), (v) in the case of a
Mortgage Loan required to be purchased pursuant to
Section 2.08, enforcement expenses reasonably incurred or to
be incurred by the NIMS Insurer, the Servicer or the Trustee in
respect of the breach or defect giving rise to the purchase
obligation and (vi) in the case of a Mortgage Loan required to be
repurchased pursuant to Section 2.08 because such Mortgage Loan is
in breach of the representation in Section 3.1(xlvi) or in Section
3.1(lxi) of the Mortgage Loan Purchase Agreement, any additional
costs or damages in excess of the amounts to be paid pursuant to
clauses (i) through (v) above (including attorney’s fees)
incurred by the Trust as a result of the Trust’s status as an
assignee or purchaser of such Mortgage Loans.

Reserve Fund:  The reserve
fund established pursuant to Section 3.22.

Reserve Interest Rate:  With
respect to any Interest Determination Date, the rate per annum that
the Trustee determines to be either (i) the arithmetic mean
(rounded upwards if necessary to the nearest whole multiple of
0.03125%) of the one‐month United States dollar lending rates
which banks in New York City selected by the Trustee with the
consent of the NIMS Insurer are quoting on the relevant Interest
Determination Date to the principal London offices of leading banks
in the London interbank market or (ii) in the event that the
Trustee can determine no such arithmetic mean, in the case of any
Interest Determination Date after the initial Interest
Determination Date, the lowest one‐month United States dollar
lending rate which such New York banks selected by the Trustee with
the consent of the NIMS Insurer 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 or a Freddie Mac 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 Certificates:  The Class R
Certificates, the Class R‐CX Certificates and the Class
R‐PX Certificates.

Residual Interest:  The sole
class of “residual interests” in a REMIC within the
meaning of Section 860G(a)(2) of the Code.

Residual NIM Holder:  As defined
in Section 3.16(c) hereof.

Responsible Officer:  When used
with respect to the Trustee or the Delaware Trustee, any officer
assigned to and working in the Corporate Trust Office (in the case
of the Trustee) or its corporate trust office (in the case of the
Delaware Trustee) or, in each case, in a similar group and also,
with respect to a particular matter, any other officer to whom such
matter is referred because of such officer’s knowledge of and
familiarity with the particular subject.

S&P:  Standard & Poor’s, a
division of The McGraw‐Hill Companies, Inc.

Secretary of State:  The Secretary of State of the State of
Delaware.

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

Seller:  For each Mortgage Loan, the seller
of such Mortgage Loan pursuant to the Mortgage Loan Purchase
Agreement. 

Servicer:  Washington Mutual Bank, or any
successor thereto appointed as provided pursuant to Section 7.02,
acting to service and administer the Mortgage Loans pursuant to
Section 3.01.

Servicer Prepayment Charge Payment
Amount:  The amounts (i) payable by the
Servicer in respect of any Prepayment Charges waived other than in
accordance with the standard set forth in Section 3.29(a) or
(ii) collected from the Seller in respect of a remedy for the
breach of the representation and warranty made by the Seller set
forth in Section 3.4 of the Mortgage Loan Purchase
Agreement.

Servicer Remittance Date:  With
respect to any Distribution Date, 3:00 p.m. New York time on the
Business Day preceding the Distribution Date.

Servicing Account:  The account
or accounts created and maintained pursuant to
Section 3.09.

Servicing Advances:  All
customary, reasonable and necessary “out of pocket”
costs and expenses (including reasonable attorneys’ fees and
expenses) incurred by the Servicer in the performance of its
servicing obligations in connection with a default, delinquencies
or other unanticipated event or where reimbursement is otherwise
permitted in accordance with any of the terms of this Agreement,
including, but not limited to, the cost of (i) the
preservation, restoration, inspection and protection of the
Mortgaged Property, (ii) any enforcement or judicial
proceedings, including foreclosures, and including any expenses
incurred in relation to any such proceedings that result from the
Mortgage Loan being registered in the MERS® System,
(iii) the management and liquidation of the REO Property and
(iv) compliance with the obligations under Sections 3.01,
3.09, 3.14, 3.16, and 3.23.

Servicing Fee:  With
respect to each Mortgage Loan and for any calendar month, an amount
equal to one month’s interest (or in the event of any payment
of interest which accompanies a Principal Prepayment in full made
by the Mortgagor during such calendar month, interest for the
number of days covered by such payment of interest) at the
Servicing Fee Rate on the same principal amount on which interest
on such Mortgage Loan accrues for such calendar month.  A
portion of such Servicing Fee may be retained by any
Sub‐Servicer as its servicing compensation.

Servicing Fee Rate:  0.50% per
annum.

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

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 related Cut‐off
Date Principal Balance, 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 Servicer
and distributed pursuant to Article IV on or before such date of
determination, (ii) all Principal Prepayments received after
the Cut‐off Date, to the extent distributed pursuant to the
definition of REMIC III Distribution Amount on or before such date
of determination, (iii) all Liquidation Proceeds and Insurance
Proceeds to the extent distributed pursuant to the definition of
REMIC III Distribution Amount 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 Due 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 the Trust, minus
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 Article IV 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.

Statutory Trust Statute:  Chapter 38 of Title 12 of the Delaware
Code, 12 Del.C. §3801 et seq., as the same may
be amended from time to time.

Stayed Funds:  If the
Servicer is the subject of a proceeding under the federal
Bankruptcy Code and the making of a remittance to the Trustee
hereunder is prohibited by Section 362 of the federal
Bankruptcy Code, funds that are in the custody of the Servicer, a
trustee in bankruptcy or a federal bankruptcy court and should have
been remitted absent such prohibition.

Stepdown Date:  The earlier
of (a) the later of (i) the Distribution Date in March 2010
and (ii) the first Distribution Date on which the Credit
Enhancement Percentage (calculated for this purpose only after
taking into account payments of principal on the Mortgage Loans due
on the related Due Date or received during the related Prepayment
Period but prior to distribution of the Principal Distribution
Amount in respect of the Certificates then entitled to
distributions of principal on such Distribution Date) is greater
than or equal to 47.30% and (b) the date on which the
aggregate Certificate Principal Balance of the Class A Certificates
has been reduced to zero.

Subordinated Net WAC Rate:  For any
Distribution Date with respect to the Mezzanine Certificates, a per
annum rate (subject to adjustment based on the actual number of
days elapsed in the related Interest Accrual Period) equal to the
weighted average (weighted on the basis of the results of
subtracting from the aggregate Stated Principal Balance of each
Loan Group the current aggregate Certificate Principal Balance of
the related Class A Certificates) of the Net WAC Pass-Through Rate
for the Group I Certificates and the Net WAC Pass-Through Rate for
the Group II Certificates.

Sub‐Servicer:  Any Person
with which the Servicer has entered into a Sub‐Servicing
Agreement and which meets the qualifications of a
Sub‐Servicer pursuant to Section 3.02.

Sub‐Servicing Account:  An account
or accounts established by a Sub‐Servicer which meets the
requirements set forth in Section 3.08 and is otherwise
acceptable to the applicable Servicer.

Sub‐Servicing Agreement:  The written
contract between the Servicer and a Sub‐Servicer relating to
servicing and administration of certain Mortgage Loans as provided
in Section 3.02.

Subsequent Recoveries:  The Gross
Subsequent Recoveries net of amounts payable or reimbursable to the
Servicer for related (i) Advances, (ii) Servicing Advances and
(iii) Servicing Fees.

Substitute Mortgage Loan:  A Mortgage
Loan which is substituted for another Mortgage Loan pursuant to and
in accordance with the provisions of Section 2.08.

Substitution Price:  As defined
in Section 2.08 hereof.

Supplemental Interest Account:  As defined
in Section 4.09(a) hereof.

Supplemental Interest Trust:  As defined in Section 4.09(a)
hereof.

Supplemental Interest Trust
Trustee: 
LaSalle Bank National Association, not in its individual capacity
but solely in its capacity as a trustee of the Supplemental
Interest Trust, and any successor thereto.

Swap Agreement:  The swap
agreement consisting of a 1992 ISDA Master Agreement (Multicurrency
Border) with a schedule and credit support annex dated as of the
Closing Date and the related confirmation thereto, between the
Supplemental Interest Trust Trustee on behalf of the Supplemental
Interest Trust and the Swap Counterparty, attached as
Exhibit E hereto, as such agreement may be amended and
supplemented in accordance with its terms.

Swap Counterparty:  The Bank of
New York or any successor in interest thereto in accordance with
the Swap Agreement.

Swap Default:  The
effective designation of an Early Termination Date in respect of
the Swap Agreement following the occurrence of a Swap Event of
Default, a Termination Event with respect to the Swap Agreement or
an Additional Termination Event with respect to the Swap
Agreement.

Swap Event of Default:  An
“Event of Default” as such term is defined in the Swap
Agreement.

Swap LIBOR: A per annum rate
equal to the floating rate payable by the Swap Counterparty under
the Swap Agreement.

Swap Notional Amount:  With
respect to any Distribution Date is the amount set forth on
Schedule II attached hereto with respect to such Distribution
Date.

Swap Payment:  With
respect to each Distribution Date, an amount equal to the product
of (a) 4.917%, (b) the Swap Notional Amount and (c) a fraction, the
numerator of which is 30 and the denominator of which 360.

Swap Proceeds Agreement:  As
defined in Section 4.09(c) hereof.  The Supplemental Interest
Trust Trustee is authorized to enter into the Swap Proceeds
Agreement on behalf of the Supplemental Interest Trust.

Swap Rate:  With
respect to any Distribution Date, the rate payable by the
Supplemental Interest Trust Trustee as specified in the Swap
Agreement.

Swap Termination Payment:  Upon the
designation of an “Early Termination Date” as defined
in the Swap Agreement, the payment to be made by the Supplemental
Interest Trust Trustee to the Swap Counterparty, or by the Swap
Counterparty to the Supplemental Interest Trust Trustee, as
applicable, pursuant to the terms of the Swap Agreement.

Tax Matters Person: With respect to
each of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC
VI, the Holder of a Class R, Class R-CX or Class R-PX Certificate
with a Percentage Interest of at least 0.01% specified herein, or
any Permitted Transferee of such Class R, Class R-CX or Class R-PX
Certificateholder designated as succeeding to the position of Tax
Matters Person in a notice to the Trustee signed by authorized
representatives of the transferor and transferee of such Class R,
Class R-CX or Class R-PX Certificate, which Tax Matters Person
shall be the tax matters person for each REMIC within the meaning
of Section 6231(a)(7) of the Code and Treasury Regulation Section
1.860F-4(d).  The initial Holder of all of the Class R, Class
R-CX and Class R-PX is hereby appointed to act as Tax Matters
Person for each REMIC so long as it holds a Class R, Class R-CX,
and Class R-PX Certificate with a Percentage Interest of at least
0.01%.  If such initial Holder ceases to hold a Class R, Class
R-CX or Class R-PX Certificate with the required Percentage
Interest, and fails to designate a successor as provided in the
first sentence of this definition of “Tax Matters
Person,” the Holder of the Class R Certificate with the
largest Percentage Interest shall be Tax Matters Person with
respect to REMIC I, REMIC II, and REMIC III, the Holder of the
Class R-CX Certificate with the largest Percentage Interest shall
be Tax Matters Person with respect to REMIC IV and REMIC VI, and
the Holder of the Class R-PX Certificate with the largest
Percentage Interest shall be Tax Matters Person with respect to
REMIC V.  In all cases, the Tax Matters Person(s) shall be
deemed to have appointed the Trustee to act as agent for the Tax
Matters Person(s), to perform the functions of such Tax Matters
Person(s) as provided herein.  If the Tax Matters Person
becomes a Disqualified Organization, the last preceding Holder that
is not a Disqualified Organization of the Class R, Class R-CX or
Class R-PX Certificate held by the Disqualified Organization shall
be Tax Matters Person pursuant to and as permitted by Section
5.01(c).  If any Person is appointed as tax matters person by
the Internal Revenue Service pursuant to the Code, such Person
shall be Tax Matters Person.

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 Event:  As defined
in the Swap Agreement.

Termination Date:  The date upon which final payment of
the Certificates will be made pursuant to the procedures set forth
in Section 9.01(b).

Termination Payment:  The final payment delivered to the
Certificateholders on the Termination Date pursuant to the
procedures set forth in Section 9.01(b).

Termination Price:  As defined
in Section 9.01(a) hereof.

Terminator:  As defined
in Section 9.01.

Transfer:  Any direct or indirect transfer,
sale, pledge, hypothecation, or other form of assignment of any
Ownership Interest in a Certificate.

Transferee Affidavit and Agreement:  An affidavit and agreement in the
form attached hereto as Exhibit J.

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 a
Cumulative Loss Trigger Event or a Delinquency Trigger Event has
occurred with respect to such Distribution Date.

Trust:  Washington Mutual Asset-Backed
Certificates WMABS, Series 2007-HE2 Trust, a Delaware statutory
trust, created pursuant to the Original Trust Agreement.

Trust Fund:  All of the
assets of the Trust, which is divided into separate pools of assets
consisting of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V,
REMIC VI, the Reserve Fund, the Supplemental Interest Trust and any
Servicer Prepayment Charge Payment Amounts and the Trust’s
rights under the Swap Agreement.

Trust REMIC:  Any of
REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC
VI.

Trustee:  LaSalle Bank National Association,
not in its individual capacity but solely as trustee, or its
successor-in-interest as provided in Section 8.09, or any successor
trustee appointed as herein provided.

Trustee Fee:  With
respect to each Distribution Date, one-twelfth of the Trustee Fee
Rate multiplied by the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (prior
to 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). 

Trustee Fee Rate:  0.001% per
annum.

Uncertificated Notional Amount: With respect to the Class L2-SW and Class
L3-SW Regular Interests and each Distribution Date listed below,
the aggregate Uncertificated Principal Balance of the REMIC I
Regular Interests ending with the designation “A”
listed below:

	

Distribution
Date

	

REMIC I Regular
Interests

	
2

	
L1-Y-1A through L1-Y-59A and L1-Z-1A
through L1-Z-59A

	
3

	
L1-Y-2A through L1-Y-59A and L1-Z-2A
through L1-Z-59A

	
4

	
L1-Y-3A through L1-Y-59A and L1-Z-3A
through L1-Z-59A

	
5

	
L1-Y-4A through L1-Y-59A and L1-Z-4A
through L1-Z-59A

	
6

	
L1-Y-5A through L1-Y-59A and L1-Z-5A
through L1-Z-59A

	
7

	
L1-Y-6A through L1-Y-59A and L1-Z-6A
through L1-Z-59A

	
8

	
L1-Y-7A through L1-Y-59A and 
L1-Z-7A through L1-Z-59A

	
9

	
L1-Y-8A through L1-Y-59A and 
L1-Z-8A through L1-Z-59A

	
10

	
L1-Y-9A through L1-Y-59A and 
L1-Z-9A through L1-Z-59A

	
11

	
L1-Y-10A through L1-Y-59A and 
L1-Z-10A through L1-Z-59A

	
12

	
L1-Y-11A through L1-Y-59A and 
L1-Z-11A through L1-Z-59A

	
13

	
L1-Y-12A through L1-Y-59A and 
L1-Z-12A through L1-Z-59A

	
14

	
L1-Y-13A through L1-Y-59A and 
L1-Z-13A through L1-Z-59A

	
15

	
L1-Y-14A through L1-Y-59A and 
L1-Z-14A through L1-Z-59A

	
16

	
L1-Y-15A through L1-Y-59A and 
L1-Z-15A through L1-Z-59A

	
17

	
L1-Y-16A through L1-Y-59A and 
L1-Z-16A through L1-Z-59A

	
18

	
L1-Y-17A through L1-Y-59A and 
L1-Z-17A through L1-Z-59A

	
19

	
L1-Y-18A through L1-Y-59A and 
L1-Z-18A through L1-Z-59A

	
20

	
L1-Y-19A through L1-Y-59A and
L1-Z-19A through L1-Z-59A

	
21

	
L1-Y-20A through L1-Y-59A and
L1-Z-20A through L1-Z-59A

	
22

	
L1-Y-21A through L1-Y-59A and
L1-Z-21A through L1-Z-59A

	
23

	
L1-Y-22A through L1-Y-59A and
L1-Z-22A through L1-Z-59A

	
24

	
L1-Y-23A through L1-Y-59A and
L1-Z-23A through L1-Z-59A

	
25

	
L1-Y-24A through L1-Y-59A and
L1-Z-24A through L1-Z-59A

	
26

	
L1-Y-25A through L1-Y-59A and
L1-Z-25A through L1-Z-59A

	
27

	
L1-Y-26A through L1-Y-59A and
L1-Z-26A through L1-Z-59A

	
28

	
L1-Y-27A through L1-Y-59A and
L1-Z-27A through L1-Z-59A

	
29

	
L1-Y-28A through L1-Y-59A and
L1-Z-28A through L1-Z-59A

	
30

	
L1-Y-29A through L1-Y-59A and
L1-Z-29A through L1-Z-59A

	
31

	
L1-Y-30A through L1-Y-59A and
L1-Z-30A through L1-Z-59A

	
32

	
L1-Y-31A through L1-Y-59A and
L1-Z-31A through L1-Z-59A

	
33

	
L1-Y-32A through L1-Y-59A and
L1-Z-32A through L1-Z-59A

	
34

	
L1-Y-33A through L1-Y-59A and
L1-Z-33A through L1-Z-59A

	
35

	
L1-Y-34A through L1-Y-59A and
L1-Z-34A through L1-Z-59A

	
36

	
L1-Y-35A through L1-Y-59A and
L1-Z-35A through L1-Z-59A

	
37

	
L1-Y-36A through L1-Y-59A and
L1-Z-36A through L1-Z-59A

	
38

	
L1-Y-37A through L1-Y-59A and
L1-Z-37A through L1-Z-59A

	
39

	
L1-Y-38A through L1-Y-59A and
L1-Z-38A through L1-Z-59A

	
40

	
L1-Y-39A through L1-Y-59A and
L1-Z-39A through L1-Z-59A

	
41

	
L1-Y-40A through L1-Y-59A and
L1-Z-40A through L1-Z-59A

	
42

	
L1-Y-41A through L1-Y-59A and
L1-Z-41A through L1-Z-59A

	
43

	
L1-Y-42A through L1-Y-59A and
L1-Z-42A through L1-Z-59A

	
44

	
L1-Y-43A through L1-Y-59A and
L1-Z-43A through L1-Z-59A

	
45

	
L1-Y-44A through L1-Y-59A and
L1-Z-44A through L1-Z-59A

	
46

	
L1-Y-45A through L1-Y-59A and
L1-Z-45A through L1-Z-59A

	
47

	
L1-Y-46A through L1-Y-59A and
L1-Z-46A through L1-Z-59A

	
48

	
L1-Y-47A through L1-Y-59A and
L1-Z-47A through L1-Z-59A

	
49

	
L1-Y-48A through L1-Y-59A and
L1-Z-48A through L1-Z-59A

	
50

	
L1-Y-49A through L1-Y-59A and
L1-Z-49A through L1-Z-59A

	
51

	
L1-Y-50A through L1-Y-59A and
L1-Z-50A through L1-Z-59A

	
52

	
L1-Y-51A through L1-Y-59A and
L1-Z-51A through L1-Z-59A

	
53

	
L1-Y-52A through L1-Y-59A and
L1-Z-52A through L1-Z-59A

	
54

	
L1-Y-53A through L1-Y-59A and
L1-Z-53A through L1-Z-59A

	
55

	
L1-Y-54A and L1-Y-59A and L1-Z-54A
and L1-Z-59A

	
56

	
L1-Y-55A and L1-Y-59A and L1-Z-55A
and L1-Z-59A

	
57

	
L1-Y-56A and L1-Y-59A and L1-Z-56A
and L1-Z-59A

	
58

	
L1-Y-57A and L1-Y-59A and L1-Z-57A
and L1-Z-59A

	
59

	
L1-Y-58A and L1-Y-59A and L1-Z-58A
and L1-Z-59A

	
60

	
L1-Y-59A and L1-Z-59A

	
thereafter

	
$0.00

 Undercollateralized Amount:  With
respect to any Distribution Date, the amount, if any, by which
(i) the sum of the aggregate Certificate Principal Balances of
the Class A Certificates, the Mezzanine Certificates and the
Uncertificated Principal Balance of the Class P Interest as of such
Distribution Date (after giving effect to distributions to be made
on such Distribution Date) exceeds (ii) the aggregate Stated
Principal Balance of the Mortgage Loans on 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).

Uninsured Cause:  Any cause
of damage to a Mortgaged Property such that the complete
restoration of such property is not fully reimbursable by the
hazard insurance policies required to be maintained pursuant to
Section 3.14.

Unpaid Interest Shortfall Amount:  With
respect to the Class A Certificates and the Mezzanine Certificates
and (i) the first Distribution Date, zero, and (ii) any
Distribution Date after the first Distribution Date, the amount, if
any, by which (a) the sum of (1) the Monthly Interest
Distributable Amount for such Class of Certificates for the
immediately preceding Distribution Date and (2) the
outstanding Unpaid Interest Shortfall Amount, if any, for such
Class of Certificates for such preceding Distribution Date exceeds
(b) the aggregate amount distributed on such Class of
Certificates in respect of interest pursuant to clause (a) of
this definition on such preceding Distribution Date, plus interest
on the amount of interest due but not paid on such Class of
Certificates on such preceding Distribution Date, to the extent
permitted by law, at the Pass‐Through Rate for such Class of
Certificates for the related Accrual Period.

U.S. 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, any state
thereof or the District of Columbia, or an estate or trust that is
subject to U.S. federal income tax regardless of the source of its
income.

USD-LIBOR-BBA:  As defined
in the Swap Agreement in the Annex to the 2000 ISDA
Definitions.

Value:  With respect to any Mortgaged
Property, the lesser of (i) the Origination Value thereof 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 the
Origination Value thereof.

Voting Rights:  The portion
of the voting rights of all of the Certificates which is allocated
to any Certificate.  At all times the Class A Certificates,
the Mezzanine Certificates and the Class C Certificates shall have
98% of the Voting Rights (allocated among the Holders of the Class
A Certificates, the Mezzanine Certificates and the Class C
Certificates in proportion to the then outstanding Certificate
Principal Balances of their respective Certificates), the Class P
Certificates shall have 1% of the Voting Rights and the Class R
Certificates shall have 1% of the Voting Rights.  The Voting
Rights allocated to any Class of Certificates (other than the Class
P Certificates and the Class R Certificates) shall be allocated
among all Holders of each such Class in proportion to the
outstanding Certificate Principal Balance of such Certificates and
the Voting Rights allocated to the Class P Certificates and the
Class R Certificates shall be allocated among all Holders of each
such Class in proportion to such Holders’ respective
Percentage Interest; provided, however, that when
none of the Regular Certificates are outstanding, 100% of the
Voting Rights shall be allocated among Holders of the Class R
Certificates in accordance with such Holders’ respective
Percentage Interests in the Certificates of such Class.  The
Class R‐CX Certificates and the Class R‐PX Certificates
shall not have Voting Rights.

Section 1.02         
Accounting.

Unless otherwise specified herein, for the
purpose of any definition or calculation, whenever amounts are
required to be netted, subtracted or added or any distributions are
taken into account, such definition or calculation and any related
definitions or calculations shall be determined without duplication
of such functions.

Section 1.03         
Allocation of Certain Interest Shortfalls.

For purposes of calculating the amount of the
Monthly Interest Distributable Amount for the Class A Certificates,
the Mezzanine Certificates and the Interest Distribution Amount for
the Class L3-C Regular Interest for any Distribution Date, the
aggregate amount of any Net Prepayment Interest Shortfalls and any
Relief Act Interest Shortfalls incurred in respect of the Mortgage
Loans for any Distribution Date shall be allocated first to the
Class L3-C Regular Interest to the extent of one month’s
interest at the then applicable Certificate Interest Rate on the
Notional Amount of such Regular Interest, and then among the Class
A Certificates and the Mezzanine Certificates on a pro rata
basis based on, and to the extent of, interest for the related
Accrual Period at the then applicable respective Certificate
Interest Rate on the respective Certificate Principal Balance of
each such Certificate.

For purposes of calculating the amount of the
Monthly Interest Distributable Amount for the Class C Certificates
for any Distribution Date, the aggregate amount of any Net
Prepayment Interest Shortfalls and any Relief Act Interest
Shortfalls allocated to the Class C Interest  pursuant to the
paragraph above shall be allocated among the Class C Certificates
on a pro rata basis based on one month’s
interest.

For purposes of calculating the
amount of Interest Distribution Amounts for the REMIC II Regular
Interests for any Distribution Date, the aggregate amount of any
Net Prepayment Interest Shortfalls and Relief Act Interest
Shortfalls incurred in respect of the Mortgage Loans for any
Distribution Date shall be allocated:

(a)        50%
of any Net Prepayment Interest and Relief Act Interest Shortfalls
incurred in respect of the Mortgage Loans for any Distribution Date
shall be allocated to the Class L2-XX and L2-ZZ Regular Interests
up to an aggregate amount equal to the REMIC II Interest Loss
Allocation Amount, 98% and 2%, respectively, and thereafter among
the Class L2-XX, L2-1-A, L2-2-A1, L2-2-A2, L2-2-A3, L2-M1, L2-M2,
L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8, L2-M9 and L2-ZZ Regular
Interests, pro rata based on, and to the extent of, one
month’s interest at the then applicable respective
Certificate Interest Rate on the respective Class Principal Balance
of each such Regular Interest; and

(b)        50%
of any Net Prepayment Interest and Relief Act Interest Shortfalls
incurred in respect of the Mortgage Loans for any Distribution Date
shall be allocated to the Class L2-1-GP, L2-2-GP, L2-1-SB, L2-2-SB,
and L2-YY, pro rata based on, and to the extent of, one
month’s interest at the then applicable respective
Certificate Interest Rate on the respective Uncertificated
Principal Balance of each such Regular Interest.  For purposes
of calculating the Interest Distribution Amounts for the REMIC I
Regular Interests for any Distribution Date, the aggregate amount
of any Net Prepayment Interest Shortfalls and Relief Act Interest
Shortfalls incurred in respect of the Group I Mortgage Loans for
any Distribution Date shall be allocated to REMIC I Regular
Interests L1-Y-X and the aggregate amount of any Net Prepayment
Interest Shortfalls and Relief Act Interest Shortfalls incurred in
respect of the Group II Mortgage Loans for any Distribution Date
shall be allocated to REMIC I Regular Interest L1-2-X.

Section 1.04         
Rights of the NIMS Insurer.

(a)       
Each of the rights of the NIMS Insurer set forth in this Agreement
shall exist so long as the Insured NIM Notes remain outstanding;
provided, however, the NIMS Insurer shall not have
any rights hereunder (except as provided in Section 9.01) so long
as any NIMS Insurer Default is continuing.

(b)       
Notwithstanding anything to the contrary anywhere in this
Agreement, all rights and benefits of the NIMS Insurer hereunder
shall permanently terminate upon such time as the Insured NIM Notes
shall no longer be outstanding.

 

ARTICLE II

Creation of the Trust;
Conveyance of the Mortgage Pool Assets, REMIC I Regular Interests,
REMIC II Regular Interests and REMIC III Regular Interests; REMIC
Election and Designations;
Original Issuance of Certificates

Section 2.01         
Creation of the Trust

 The Trust was created pursuant to the
Original Trust Agreement and is hereby continued. As set forth in
the Original Trust Agreement, the Trust shall be known as
“Washington Mutual Asset-Backed Certificates WMABS Series
2007-HE2 Trust”.  The purpose of the Trust is, and the
Trust shall have the power and authority, to engage in the
following activities, all as provided by and subject to the terms
of this Agreement:

(i)        
to acquire, hold, lease, manage, administer, control, invest,
reinvest, operate and/or transfer the Mortgage Pool Assets, the
REMIC I Regular Interests, the REMIC II Regular Interests and the
REMIC III Regular Interests; 

(ii)        to
issue the REMIC I Regular Interests, the REMIC II Regular
Interests, the REMIC III Regular Interests, the Class L6-SW Regular
Interest, the Class R-1, Class R-2, Class R-3, Class R-4, Class
R-5, and Class R-6 Residual Interests and the
Certificates;

(iii)       to make
distributions to the REMIC I Regular Interests, the REMIC II
Regular Interests, the REMIC III Regular Interests, the Class L6-SW
Regular Interest and the Certificates; and

(iv)       to
engage in such other activities, including entering into
agreements, as are described in or required by the terms of this
Agreement or as are necessary, suitable or convenient to accomplish
the foregoing or incidental thereto.

LaSalle Bank National Association is hereby
appointed as the trustee of the Trust, to have all the rights,
duties and obligations of the Trustee with respect to the Trust
expressly set forth hereunder, and LaSalle Bank National
Association hereby accepts such appointment and the trust created
hereby.  Christiana Bank & Trust Company is hereby
appointed as the Delaware trustee of the Trust, to have all the
rights, duties and obligations of the Delaware Trustee with respect
to the Trust hereunder and Christiana Bank & Trust Company
hereby accepts such appointment and the trust created hereby. 
It is the intention of the Company, the Servicer, the Trustee and
the Delaware Trustee that the Trust constitute a statutory trust
under the Statutory Trust Statute, that this Agreement constitute
the governing instrument of the Trust, and that this Agreement
amend and restate the Original Trust Agreement.  The parties
hereto acknowledge and agree that, prior to the execution and
delivery hereof, the Delaware Trustee has filed the Certificate of
Trust.  The parties hereto acknowledge that the
Trust includes two separate pools of mortgage loans referred to
herein as “Loan Groups” constituting separate subtrusts
for ERISA purposes, and that the assets of each Loan Group are
available to make payments to the holders of Certificates as
provided in the definitions of “REMIC I Distribution
Amount,” “REMIC II Distribution Amount,”
“REMIC III Distribution Amount,” “REMIC IV
Distribution Amount,” “REMIC V Distribution
Amount” and “REMIC VI Distribution Amount,” and
Article IV.

The assets of the Trust shall remain in the
custody of the Trustee or the Custodian, on behalf of the Trust,
and shall be owned by the Trust.  Moneys to the credit of the
Trust shall be held by the Trustee and invested as provided
herein.  All assets received and held by the Trust will not be
subject to any right, charge, security interest, lien or claim of
any kind in favor of either of the institution acting as Trustee or
the institution acting as Delaware Trustee in its own right, or any
Person claiming through either.  Neither the Trustee nor the
Delaware Trustee shall have the power or authority to transfer,
assign, hypothecate, pledge or otherwise dispose of any of the
assets of the Trust to any Person, except as permitted
herein.  No creditor of a beneficiary of the Trust, of the
Trustee, of the Delaware Trustee, of the Servicer or of the Company
shall have any right to obtain possession of, or otherwise exercise
legal or equitable remedies with respect to, the property of the
Trust, except in accordance with the terms of this
Agreement.

Section 2.02         
Restrictions on Activities of the Trust

Notwithstanding any other provision of this
Agreement and any provision of law that otherwise so empowers the
Trust, so long as any Certificates are outstanding, the Trust shall
not, and none of the Trustee, the Delaware Trustee, the Company or
the Servicer shall knowingly cause the Trust to, do any of the
following:

(i)        
engage in any business or activity other than those set forth in
Section 2.01;

(ii)       
incur or assume any indebtedness except for such indebtedness that
may be incurred by the Trust in connection with the execution or
performance of this Agreement or any other agreement contemplated
hereby;

(iii)      
guarantee or otherwise assume liability for the debts of any other
party;

(iv)       do any
act in contravention of this Agreement or any other agreement
contemplated hereby to which the Trust is a party;

(v)        do
any act which would make it impossible to carry on the ordinary
business of the Trust;

(vi)       confess
a judgment against the Trust;

(vii)      possess or
assign the assets of the Trust for other than a Trust
purpose;

(viii)      cause the
Trust to lend any funds to any entity, except as contemplated by
this Agreement; or

(ix)       change
the purposes and powers of the Trust from those set forth in this
Agreement.

Section 2.03         
Separateness Requirements

Notwithstanding any other provision of this Agreement and any
provision of law that otherwise so empowers the Trust, so long as any
Certificates are outstanding, the Trust shall perform the following:

(i)        
except as expressly permitted by this Agreement or the Custodial
Agreement, maintain its books, records, bank accounts and files
separate from those of any other Person;

(ii)       
except as expressly permitted by this Agreement, maintain its
assets in its own separate name and in such a manner that it is not
costly or difficult to segregate, identify, or ascertain such
assets;

(iii)      
consider the interests of the Trust's creditors in connection with
its actions;

(iv)       hold
itself out to creditors and the public as a legal entity separate
and distinct from any other Person and correct any known
misunderstanding regarding its separate identity and refrain from
engaging in any activity that compromises the separate legal
identity of the Trust;

(v)       
prepare and maintain separate records, accounts and financial
statements in accordance with generally accepted accounting
principles, consistently applied, and susceptible to audit. 
To the extent it is included in consolidated financial statements
or consolidated tax returns, such financial statements and tax
returns will reflect the separateness of the respective entities
and indicate that the assets of the Trust will not be available to
satisfy the debts of any other Person;

(vi)       allocate
and charge fairly and reasonably any overhead shared with any other
Person;

(vii)      transact all
business with affiliates on an arm's-length basis and pursuant to
written, enforceable agreements;

(viii)      conduct
business solely in the name of the Trust.  In that regard all
written and oral communications of the Trust, including, without
limitation, letters, invoices, purchase orders and contracts, shall
be made solely in the name of the Trust;

(ix)       maintain
a separate office through which its business shall be conducted,
provided that such office may be an office of the Trustee,
which office shall not be shared with the Company or any affiliates
of the Company;

(x)        in
the event that services have been or are in the future performed or
paid by any Person on behalf of the Trust (other than the Trustee,
the Delaware Trustee, the Servicer or the Tax Matters Person as
permitted herein), reimburse such Person, as applicable, for the
commercially reasonable value of such services or expenses provided
or incurred by such Person.  Accordingly, (i) the Trust shall
reimburse such Person, as applicable, for the commercially
reasonable value of such services or expenses provided or incurred
by such Person; (ii) to the extent invoices for such services are
not allocated and separately billed to the Trust, the amount
thereof that was or is to be allocated and separately billed to the
Trust was or will be reasonably related to the services provided to
the Trust; and (iii) any other allocation of direct, indirect or
overhead expenses for items shared between the Trust and any other
Person, was or will be, to the extent practicable, allocated on the
basis of actual use or value of services rendered or otherwise on a
basis reasonably related to actual use or the value of services
rendered;

(xi)       except
as expressly permitted by this Agreement, not commingle its assets
or funds with those of any other Person;

(xii)      except as
expressly permitted by this Agreement, not assume, guarantee, or
pay the debts or obligations of any other Person;

(xiii)      except as
expressly permitted by this Agreement, not pledge its assets for
the benefit of any other Person;

(xiv)     not hold out its
credit or assets as being available to satisfy the obligations of
others;

(xv)      pay its
liabilities only out of its funds;

(xvi)     pay the salaries of
its own employees, if any; and

(xvii)     cause the agents
and other representatives of the Trust, if any, to act at all times
with respect to the Trust consistently and in furtherance of the
foregoing.

None of the Trustee, the Delaware Trustee, the
Company or the Servicer shall take any action that is inconsistent
with the purposes of the Trust or Section 2.02 or Section
2.03.  Neither the Company nor the Servicer shall direct the
Trustee or the Delaware Trustee to take any action that is
inconsistent with the purposes of the Trust or Section 2.02 or
Section 2.03.

Section 2.04         
Conveyance of Mortgage Pool Assets; Security Interest

 The Company does hereby
irrevocably sell, transfer, assign, set over and otherwise convey
to the Trust, without recourse, all the Company’s right,
title and interest in and to the Mortgage Pool Assets.  The
Trust, as payment of the purchase price of the Mortgage Pool
Assets, shall, on the Closing Date, issue the REMIC I Regular
Interests and the Class R-1 Residual Interest to the Company in
Authorized Denominations, together with certain rights to receive
payments made outside any REMIC.  The REMIC I Regular
Interests and the Class R-1 Residual Interest shall together be a
separate series of beneficial interests in the assets of the Trust
consisting of the Mortgage Pool Assets included in the definition
of REMIC I pursuant to Section 3806(b)(2) of the Statutory Trust
Statute.

It is the express intent of the parties hereto that the
conveyance of the Mortgage Pool Assets to the Trust by the Company as provided
in this Section 2.04 be, and be construed as, an absolute sale of the Mortgage
Pool Assets. It is, further, not the intention of the parties that such
conveyance be deemed the grant of a security interest in the Mortgage Pool
Assets by the Company to the Trust to secure a debt or other obligation 
of the Company. However, in the event that, notwithstanding the
intent of the parties, the Mortgage Pool Assets are held to be the property of
the Company, or if for any other reason this Agreement is held or deemed to
create a security interest in the Mortgage Pool Assets, then

(a)        this Agreement
shall constitute a security agreement;

(b)        the
conveyance provided for in this Section 2.04 shall be deemed to be
a grant by the Company to the Trust of, and the Company hereby
grants to the Trust, to secure all of the Company’s
obligations hereunder, a security interest in all 
of the
Company’s right, title, and interest, whether now owned or
hereafter acquired, in and to:

(I)        The
Mortgage Pool Assets;

(II)       All
accounts, chattel paper, deposit accounts, documents, general
intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas,
and other minerals, consisting of, arising from, or relating to,
any of the foregoing; and

(III)      All proceeds
of the foregoing.

The Company shall file such financing  statements,
and the Company, the Servicer and the Trustee acting on behalf of
the Trust at the direction of the Company shall, to the extent
consistent with this Agreement, take such other actions as may be
necessary to ensure that, if this Agreement were found to create a
security interest in the Mortgage Pool Assets, such security
interest would be a perfected security interest of first priority
under applicable law and will be maintained as such throughout the
term of the Agreement. In connection herewith, the Trust shall have
all of the rights and remedies of a secured party under the Uniform
Commercial Code as in force in the relevant
jurisdiction.

Section 2.05         
Delivery of Mortgage Files

On the Closing
Date, the Company shall deliver to and deposit with, or cause to be delivered to
and deposited with, the Trustee the Mortgage Files, which shall at all times be
identified in the records of the Trustee as being held by or on behalf of the
Trust.

The Trustee is authorized, with the
Servicer’s consent, to appoint on behalf of the Trust any
bank or trust company approved by each of the Company and the
Servicer as Custodian of the documents or instruments referred to
in this Section 2.05, in Section 2.12 or in Section 2.15, and to
enter into a Custodial Agreement for such purpose; provided,
however, that the Trustee shall be and remain liable for the
acts and omissions of any such Custodian to the extent (and only to
the extent) that it would have been liable for such acts and
omissions hereunder had such acts and omissions been its own acts
and omissions.  Any documents delivered by the Company or the
Servicer to the Custodian, if any, shall be deemed to have been
delivered to the Trustee for all purposes hereunder; and any
documents held by the Custodian, if any, shall be deemed to be held
by the Trustee for all purposes hereunder. There shall be a written
Custodial Agreement between the Trustee and each Custodian. Each
Custodial Agreement shall contain an acknowledgment by the
Custodian that all Mortgage Pool Assets, Mortgage Files, and other
documents and property held by it at any time are held by it for
the benefit of the Trust.  Each Custodial Agreement shall, if
such reports are required to be filed with the Commission as an
exhibit to a Report on Form 10-K, require the Custodian, (i) if
determined by the Servicer to be a party participating in the
servicing function within the meaning of Item 1122 of Regulation
AB, to deliver to the Servicer the report on assessment of
compliance with applicable servicing criteria and the accounting
firm’s attestation report described in Section 3.20(c) and
(ii) if determined by the Servicer to meet the criteria in Item
1108(a)(2)(i) through (iii) of Regulation AB, to deliver to the
Servicer the statement of compliance described in Section
3.20(e).

On or promptly after the Closing Date, the
Servicer shall  cause the MERS® System to indicate that each
MERS Loan, if any, has been assigned to the Trustee, without
recourse, or to the Trust, without recourse, by including in the
MERS® System computer files (a) the code necessary to identify
the Trust and (b) the code necessary to identify the series of the
Certificates issued in connection with such Mortgage Loans;
provided, however, that in the event the Company acquired
such Mortgage Loans from an affiliate of the Company, then the
Servicer need not cause the MERS® System to indicate such
assignment.  The Servicer shall not alter the codes referenced
in this paragraph with respect to any MERS Loan during the term of
this Agreement except in connection with an assignment of such MERS
Loan or de-registration thereof from the MERS® System in
accordance with the terms of this Agreement.

Section 2.06         
REMIC Election for REMIC I

The Trustee shall, on behalf of REMIC I, elect to treat REMIC I as a REMIC within the meaning of
Section 860D of the Code and, if necessary, under applicable state
laws. Such election shall be included in the Form 1066 and any
appropriate state return to be filed on behalf of REMIC I for its
first taxable year.

The Closing Date is hereby designated as the
“startup day” of REMIC I within the meaning of Section
860G(a)(9) of the Code.

The regular interests (as set forth in the table
contained in the Preliminary Statement hereto) relating to REMIC I
are hereby designated as “regular interests” in REMIC I
for purposes of Section 860G(a)(1) of the Code.  The Class R-1
Residual Interest is hereby designated as the sole class of
“residual interest” in REMIC I for purposes of Section
860G(a)(2) of the Code.

The 
parties intend that the affairs of REMIC I
shall constitute, and that the affairs of REMIC I shall be
conducted so as to qualify REMIC I as a REMIC.  In furtherance
of such intention, the Trustee shall, on behalf of REMIC I: (a)
prepare and file, or cause to be prepared and filed, a federal tax
return using a calendar year as the taxable year and using an
accrual method of accounting for REMIC I when and as required by
the REMIC Provisions and other applicable federal income tax laws;
(b) make an election, on behalf of the trust, for REMIC I to be
treated as a REMIC on the federal tax return of  REMIC I for
its first taxable year, in accordance with the REMIC Provisions;
(c) prepare and forward, or cause to be prepared and forwarded, to
the Holders of the REMIC I Regular Interests and the Class R-1
Residual Interest, all information reports as and when required to
be provided to them in accordance with the REMIC Provisions, and
make available the information necessary for the application of
Section 860E(e) of the Code; (d) conduct the affairs of REMIC I at
all times that any REMIC I Regular Interests are outstanding so as
to maintain the status of REMIC I as a REMIC under the REMIC
Provisions; (e) not knowingly or intentionally take any action or
omit to take any action that would cause the termination of the
REMIC status of REMIC I; and (f) pay the amount of any federal
prohibited transaction penalty taxes imposed on REMIC I when and as
the same shall be due and payable (but such obligation shall not
prevent the Trustee from contesting any such tax in appropriate
proceedings and shall not prevent the Trustee from withholding
payment of such tax, if permitted by law, pending the outcome of
such proceedings).

The Company and the Servicer shall promptly
provide the Trustee with such information in the possession of the
Company or the Servicer, respectively, as the Trustee may from time
to time request for the purpose of enabling the Trustee to prepare
or cause the preparation of tax returns.  The Trustee shall
sign tax returns on behalf of the REMICs.

In the event that a Mortgage Loan is discovered
to have a defect which, had such defect been discovered before the
startup day, would have prevented such Mortgage Loan from being a
“qualified mortgage” within the meaning of Section
860G(a)(3) of the Code, and the Seller does not repurchase such
Mortgage Loan within 90 days of such date pursuant to Section 3.3
of the Mortgage Loan Purchase Agreement, the Servicer, on behalf of
the Trust, shall within 90 days of the date such defect is
discovered sell such Mortgage Loan at such price as the Servicer,
in its sole discretion, determines to be the greatest price that
will result in the purchase thereof within 90 days of such date,
unless the Servicer delivers to the Trustee an Opinion of Counsel
to the effect that continuing to hold such Mortgage Loan will not
adversely affect the status of the electing portion of REMIC I as a
REMIC for federal income tax purposes.

In the event that the Trustee has paid any
federal prohibited transaction penalty taxes imposed on REMIC I
pursuant to clause (f) of the third preceding paragraph, the
Trustee on behalf of the Trust shall reimburse itself (unless the
Trustee’s failure to exercise reasonable care was the primary
cause of the imposition of such taxes) for such payment from
amounts on deposit in the Distribution Account in reduction of the
REMIC I Available Distribution Amount for the applicable
Distribution Date.  In the event that any federal prohibited
transaction penalty taxes are imposed on REMIC I and not paid by
the Trustee pursuant to clause (f) of the third preceding
paragraph, the Trustee on behalf of the Trust shall pay such taxes
from amounts on deposit in the Distribution Account in reduction of
the REMIC I Available Distribution Amount for the applicable
Distribution Date.  The amount so reimbursed or paid pursuant
to either of the immediately preceding two sentences shall be
allocated as a loss among the REMIC I Regular Interests pursuant to
the definition of “Realized Losses.”

None of the Trustee, Servicer or the Tax Matters
Person shall knowingly or intentionally take any action that would
cause the termination of the REMIC status of REMIC I.

Section 2.07         
Acceptance by Trustee

The Trustee acknowledges receipt (or with
respect to any Mortgage Loan subject to a Custodial Agreement
receipt by the Custodian thereunder) on behalf of the Trust of the
documents (or certified copies thereof as specified in Section
2.05) referred to in Section 2.05 above, but without having made
the review required to be made pursuant to this Section 2.07. 
The Trustee acknowledges that all Mortgage Pool Assets, Mortgage
Files and related documents and property held by it at any time are
held by it as Trustee of the Trust for the benefit of the holders
of the REMIC I Regular Interests and the Class R-1 Residual
Interest.  The Trustee shall review each Mortgage File on or
before the Closing Date and deliver to the Company and the NIMS
Insurer a certification in the form attached as Exhibit M hereto,
to the effect that, except as noted, all documents required
pursuant to the definition of “Mortgage File” and
Section 2.05 have been executed and received, and that such
documents relate to the Mortgage Loans identified in the Mortgage
Loan Schedule.  Within 240 days of the Closing Date, the
Trustee shall deliver or with respect to the Mortgage Loans held by
another Custodian, cause such other Custodian to deliver to the
Company, the Seller, the NIMS Insurer and the Servicer a
certification substantially in the form of Exhibit M hereto
with respect to each Mortgage Loan, with any applicable exceptions
noted thereon.  In performing such review, the Trustee may
rely upon the purported genuineness and due execution of any such
document, and on the purported genuineness of any signature
thereon. The Trustee shall not be required to make any independent
examination of any documents contained in each Mortgage File beyond
the review specifically required herein. The Trustee makes no
representations as to: (i) the validity, legality, enforceability
or genuineness of any of the Mortgage Loans identified on the
Mortgage Loan Schedule, or (ii) the collectability, insurability,
effectiveness or suitability of any Mortgage Loan.

If the Trustee finds any
document or documents required to be included in the Mortgage File
for a Mortgage Loan pursuant to the definition of “Mortgage
File” not to have been executed and received, the Trustee
shall promptly so notify the Servicer. An exception report
delivered by the Custodian to the Servicer shall be deemed to
constitute such notice.  Upon notice from the Trustee or the
Custodian that any document required to be included in the Mortgage
File for a Mortgage Loan has not been executed and received, the
Servicer shall promptly notify the Seller of such defect and take
appropriate steps on behalf of the Trust to enforce the
Seller’s obligation, pursuant to Section 2.4 of the Mortgage
Loan Purchase Agreement, to correct or cure such defect or
repurchase or substitute for such Mortgage Loan, in accordance with
and subject to the time limitations set forth in such Section 2.4;
provided, however, that the Servicer shall not require or
permit the Seller to repurchase a Mortgage Loan pursuant to such
Section 2.4 of the Mortgage Loan Purchase Agreement more than two
years after the Closing Date unless (a) such defect would cause the
Mortgage Loan to be other than a “qualified mortgage”
(as defined in the Code), (b) such Mortgage Loan is in default, or
default is in the judgment of the Servicer reasonably imminent, or
(c) the Servicer, at the expense of the Seller, delivers to the
Trustee an Opinion of Counsel addressed to the Trust and the
Trustee to the effect that the repurchase of such Mortgage Loan
will not give rise to a tax on a prohibited transaction, as defined
in Section 860F(a) of the Code; provided, further, that in
the event that such defect consists solely of the failure of the
Seller to deliver any Recording Document with respect to such
Mortgage Loan, due to a delay on the part of the recording office,
then the Servicer shall instead notify the Seller of such defect
and take appropriate steps on behalf of the Trust to enforce the
Seller’s obligation, pursuant to Section 2.3 of the Mortgage
Loan Purchase Agreement, to comply with the procedure described in
such Section 2.3.

In connection with the enforcement of the
Seller’s repurchase or substitution obligation pursuant to
Section 2.4 of the Mortgage Loan Purchase Agreement, the Servicer
and the Trustee shall comply with the additional provisions set
forth in Section 2.10 hereof.

Section 2.08         
Representation and Warranty of the Company Concerning the Mortgage
Loans

The Company hereby represents and warrants to the Trust that,
immediately upon the transfer and assignment contemplated by Section 2.04, the
Trust shall have good title to, and will be the sole legal owner of, each
Mortgage Loan, free and clear of any encumbrance or lien, other than any lien
arising under this Agreement.

The representation and
warranty set forth in this Section 2.08 shall survive delivery of
the respective Mortgage Files to the Trustee or the Custodian, as
the case may be, and shall continue throughout the term of this
Agreement. Upon discovery by any of the Company, the Servicer or
the Trustee of a breach of the foregoing representation and
warranty which materially and adversely affects the value of the
related Mortgage Loans or the interests of the Trust in the related
Mortgage Loans, the party discovering such breach shall give prompt
written notice to the others.  Within 90 days of its discovery
or its receipt of notice of breach, the Company shall repurchase or
substitute for the affected Mortgage Loan or Mortgage Loans or any
property acquired in respect thereof by the Trust, unless it has
cured such breach in all material respects. Any such substitution
shall be made within the three-month period commencing on the
Closing Date (or within the two-year period commencing on the
Closing Date if the related Mortgage Loan is a “defective
obligation” within the meaning of Section 860G(a)(4)(B)(ii)
of the Code and Treasury Regulation Section 1.860G-2(f)).  Any
such repurchase shall be made at the Repurchase Price;
provided, however, that no Mortgage Loan shall
be repurchased pursuant to this Section 2.08 unless (a) the
Mortgage Loan to be repurchased is in default, or default is in the
judgment of the Servicer reasonably imminent, or (b) the Servicer,
at the expense of the Company, delivers to the Trustee an Opinion
of Counsel addressed to the Trust and the Trustee to the effect
that the repurchase of such Mortgage Loan will not give rise to a
tax on a prohibited transaction, as defined in Section 860F(a) of
the Code.  If such breach would cause the Mortgage Loan to be
other than a “qualified mortgage” (as defined in the
Code), then notwithstanding the previous sentence, the repurchase
or substitution must occur within the sooner of (i) 90 days from
the date the defect was discovered or (ii) in the case of
substitution, two years from the Closing Date.

Any number of Substitute Mortgage Loans may be
substituted for any number of Reacquired Mortgage Loans and a
Substitute Mortgage Loan may be substituted for a defective
Mortgage Loan that is itself a Substitute Mortgage Loan, in each
case subject to limitations in the next sentence.  A
Substitute Mortgage Loan substituted for a Reacquired Mortgage Loan
pursuant to the terms of this Agreement or the Mortgage Loan
Purchase Agreement must, on the date of such substitution,
(i) have an outstanding principal balance (or in the case of a
substitution of more than one mortgage loan for a Reacquired
Mortgage Loan, an aggregate principal balance), after application
of all scheduled payments of principal and interest due during or
prior to the month of substitution, not in excess of, and not more
than 5.00% less than, the outstanding principal balance of the
Reacquired 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 Reacquired Mortgage Loan,
(iii) if the Substitute Mortgage Loan is an Adjustable Rate
Mortgage Loan, have a Maximum Mortgage Rate not greater than the
Maximum Mortgage Rate on the Reacquired Mortgage Loan and have a
Minimum Mortgage Rate not less than the Minimum Mortgage Rate of
the Reacquired Mortgage Loan, (iv) if the Substitute Mortgage
Loan is an Adjustable Rate Mortgage Loan, have a Gross Margin equal
to or greater than the Gross Margin of the Reacquired Mortgage
Loan, (v) if the Substitute 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 Reacquired Mortgage
Loan, (vi) have a remaining term to maturity not greater than (and
not more than one year less than) that of the Reacquired Mortgage
Loan, (vii) be current (with no contractual delinquencies
outstanding) as of the date of substitution, (viii) have a
Loan‐to‐Value Ratio as of the date of substitution
equal to or lower than the Loan‐to‐Value Ratio of the
Reacquired Mortgage Loan as of such date, (ix) have a risk
grading determined by the Seller at least equal to the risk grading
assigned on the Reacquired Mortgage Loan, (x) have been
underwritten or reunderwritten by the Seller in accordance with the
same or, as determined by the Seller, more favorable, underwriting
guidelines as the Reacquired Mortgage Loan, (xi) with respect to
Substitute Mortgage Loans substituted for Reacquired Mortgage Loans
that are Group I Mortgage Loans, have had an original
Principal Balance that conformed to Fannie Mae and Freddie Mac loan
limits as of the date of its origination, (xii) be secured by the
same property type as the Reacquired Mortgage Loan,
(xiii) have a lien priority equal to or superior to that of
the Reacquired Mortgage Loan, (xiv) have the same Due Date as
the Reacquired Mortgage Loan, and (xv) conform to each
representation and warranty set forth in Section 3.1 of the
Mortgage Loan Purchase Agreement applicable to the Reacquired
Mortgage Loan.  In the event that one or more mortgage loans
are substituted for one or more Reacquired Mortgage Loans, the
amounts described in clause (i) hereof shall be determined on
the basis of aggregate principal balances (applied separately for
the Group I Mortgage Loans and Group II Mortgage Loans),
the Mortgage Rates described in clauses (ii) through (v)
hereof shall be satisfied for each such mortgage loan, the risk
gradings described in clause (ix) hereof shall be satisfied as
to each such mortgage loan, the terms described in clause (vi)
hereof shall be determined on the basis of weighted average
remaining term to maturity (provided that no such mortgage
loan may have a remaining term to maturity longer than the
Reacquired Mortgage Loan), the Loan‐to‐Value Ratios
described in clause (viii) 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 (xv) hereof must be satisfied as to each Substitute Mortgage
Loan or in the aggregate, as the case may be.

In connection with the substitution of one or
more Substitute Mortgage Loans for one or more Reacquired Mortgage
Loans on any date, the Company shall pay to the Trust the
Substitution Price for such Reacquired Mortgage Loans, and such
payment by the Company shall be treated in the same manner as
proceeds of the repurchase by the Company of a Mortgage Loan
pursuant to this Section 2.08.  For any month in which the
Seller substitutes one or more Substitute Mortgage Loans for one or
more Reacquired Mortgage Loans, the Servicer will determine the
amounts (the “Substitution Price”), if any, by
which the aggregate Repurchase Price of all such Reacquired
Mortgage Loans in Loan Group I or Loan Group II,
respectively, exceeds the aggregate of the Stated Principal Balance
of the Substitute Mortgage Loans that will become part of Loan
Group I or Loan Group II, respectively, as of the date of
substitution, together with one month’s interest on such
Stated Principal Balance at the applicable Net Mortgage Rate, plus
all outstanding Advances and Servicing Advances with respect to
such Reacquired Mortgage Loan.

With respect to each Substitute Mortgage Loan,
the Company shall (a) deliver to and deposit with, or cause to be
delivered to and deposited with, the Trustee or the Custodian on
behalf of the Trust the Mortgage File for such Substitute Mortgage
Loan and (b) cause the Seller to enter into an agreement with the
Trust and the Servicer pursuant to which, with respect to such
Substitute Mortgage Loan, the Seller will (i) make, as of the date
of substitution, each of the representations and warranties that
the Seller made pursuant to Section 3.1 of the Mortgage Loan
Purchase Agreement with respect to the original Mortgage Loan
(except that references to “Closing Date” or
“Cut-off Date” in such Section 3.1 shall be changed to
the applicable date of substitution), (ii) agree to deliver any
missing Recording Documents with respect to such Substitute
Mortgage Loan, and to repurchase or substitute for such Substitute
Mortgage Loan in the event of the Seller’s failure to deliver
any document required to be included in such Mortgage File or in
the event of the Seller’s material breach of any of such
representations and warranties, upon the same terms as the
Seller’s corresponding obligations with respect to the
original Mortgage Loan pursuant to Sections 2.3, 2.4 and 3.3 of the
Mortgage Loan Purchase Agreement, and (iii) convey such Substitute
Mortgage Loan to the Trust.

The Trustee shall acknowledge or with respect to
the Mortgage Loans held by another Custodian cause such other
Custodian to acknowledge receipt for such Substitute Mortgage Loan
and, within ten Business Days thereafter, review such documents as
specified in Section 2.02 and deliver to the Depositor, the
Servicer and the NIMS Insurer, with respect to such Substitute
Mortgage Loan or Loans, a certification substantially in the form
attached hereto as Exhibit M, with any applicable exceptions
noted thereon.  Within 240 days of the date of substitution,
the Trustee shall deliver or with respect to the Mortgage Loans
held by another Custodian, cause such other Custodian to deliver to
the Company, the Seller, the NIMS Insurer and the Servicer a
certification substantially in the form of Exhibit M hereto
with respect to such Substitute Mortgage Loan, with any applicable
exceptions noted thereon.  Monthly Payments due with respect
to Substitute Mortgage Loans in the month of substitution are not
part of REMIC I and will be retained by the
Seller. 

The Company shall pay all costs and expenses
incurred in connection with any repurchase or substitution by the
Company made pursuant to this Section 2.08.

For the month of substitution,
distributions to Certificateholders will reflect the Monthly
Payment due on such Reacquired Mortgage Loan on or before the Due
Date in the month of substitution, and the Seller shall thereafter
be entitled to retain all amounts subsequently received in respect
of such Reacquired Mortgage Loan.  The Trustee shall give or
cause to be given written notice to the NIMS Insurer and the
Certificateholders that such substitution has taken place, and the
Servicer shall amend or cause to be amended the Mortgage Loan
Schedule and, if applicable, the Prepayment Charge Schedule to
reflect the removal of such Reacquired Mortgage Loan from the terms
of this Agreement and the substitution of the Substitute Mortgage
Loan and shall deliver a copy of such amended Mortgage Loan
Schedule and, if applicable, the Prepayment Charge Schedule to the
NIMS Insurer and the Trustee.  Upon such substitution, such
Substitute Mortgage Loan or Loans shall constitute part of the
Mortgage Pool and shall be subject in all respects to the terms of
this Agreement and the Mortgage Loan Purchase Agreement, including
all applicable representations and warranties thereof included in
the Mortgage Loan Purchase Agreement as of the date of
substitution.

On the date of such substitution, the Company
shall cause the Seller to deliver or cause to be delivered to the
Servicer for deposit in the Collection Account an amount equal to
the sum of Substitution Price, if any (which for federal income tax
purposes will be treated as payment for the repurchase of that
portion of the Reacquired Mortgage Loans), and the Trustee, upon
receipt of the related Substitute Mortgage Loan or Loans (or
acknowledgement of such receipt by another Custodian) and
certification by the Servicer of such deposit, shall release or, if
such Mortgage File is held by another Custodian, such Custodian
shall release to the Seller the related Mortgage File or Files and
the Trustee shall execute and deliver or, if such Mortgage File is
held by another Custodian, such Custodian shall execute and deliver
such instruments of transfer or assignment, without recourse, as
the Seller shall deliver to it or such Custodian, as applicable,
and as shall be necessary to vest therein any Reacquired Mortgage
Loan released pursuant hereto.  Substitution shall be
permitted only within two years of the Closing Date and may not be
made unless an Opinion of Counsel is provided to the Trustee to the
effect that substitution will not disqualify the Trust as a REMIC
or result in a prohibited transaction tax under the
Code.

In connection with any repurchase or substitution
by the Company made pursuant to this Section 2.08, the Servicer and
the Trustee (to the extent of any obligations on its part) shall
comply with the additional provisions set forth in Section 2.10
hereof.

Section 2.09         
Representations and Warranties of the Seller Concerning the
Mortgage Loans

The Company hereby assigns to the Trust all of its rights
under the Mortgage Loan Purchase Agreement, to the extent that the Mortgage Loan
Purchase Agreement relates to the Mortgage Loans.

Upon discovery by any of the Company, the
Servicer or the Trustee (in the case of the Trustee, having actual
knowledge thereof) of a breach of any of the representations and
warranties in respect of the Mortgage Loan set forth in Section 3.1
of the Mortgage Loan Purchase Agreement that materially and
adversely affects the value of the related Mortgage Loans or the
interests of the Trust in the related Mortgage Loans, the party
discovering such breach shall give prompt written notice to the
others and the NIMS Insurer.  Any breach of the representation
set forth in the last sentence of clause (xxxix), clause (xlvi),
the first sentence of clause (xlvii) and clause (lxi) and clause
(lxiv) of such Section 3.1 thereof shall be deemed to materially
and adversely affect the value of the related Mortgage Loans or the
interests of the Trust in the related Mortgage Loans.  The
Servicer shall promptly notify the Seller of such breach and take
appropriate steps on behalf of the Trust to enforce the
Seller’s obligation, pursuant to Section 3.3 of the Mortgage
Loan Purchase Agreement, to cure such breach in all material
respects or repurchase or substitute for the affected Mortgage Loan
or Mortgage Loans or any property acquired in respect thereof, in
accordance with and subject to the time limitations set forth in
such Section 3.3; provided, however, that the Seller shall
not be required or permitted to repurchase a Mortgage Loan pursuant
to such Section 3.3 thereof unless (a) such defect would cause the
Mortgage Loan to be other than a “qualified mortgage”
(as defined in the Code), (b) such Mortgage Loan is in default, or
default is in the judgment of the Servicer reasonably imminent, or
(c) the Servicer, at the expense of the Seller, delivers to the
Trustee an Opinion of Counsel addressed to the Trust and the
Trustee to the effect that the purchase of such Mortgage Loan will
not give rise to a tax on a prohibited transaction, as defined in
Section 860F(a) of the Code.

In connection with the enforcement of the
Seller’s repurchase or substitution obligation pursuant to
Section 3.3 of the Mortgage Loan Purchase Agreement, the Servicer
and the Trustee shall comply with the additional provisions set
forth in Section 2.10 hereof.

Section 2.10         
Additional Provisions Relating to Repurchases of and Substitutions
for Mortgage Loans by the Company or the Seller

The Servicer shall deposit or
cause to be deposited in the Collection Account (i) the Repurchase
Price that it receives for each Mortgage Loan repurchased by the
Company pursuant to Section 2.08 hereof, (ii) the Substitution
Price that it receives in connection with each substitution for a
Mortgage Loan by the Company pursuant to such Section 2.08, (iii)
the Repurchase Price (as defined in the Mortgage Loan Purchase
Agreement) that it receives for each Mortgage Loan repurchased by
the Seller pursuant to Section 2.4 or 3.3 of the Mortgage Loan
Purchase Agreement and (iv) the Substitution Price (as defined in
the Mortgage Loan Purchase Agreement) that it receives in
connection with each substitution for a Mortgage Loan by the Seller
pursuant to such Section 2.4 or 3.3 thereof.

Upon receipt by the Trustee of written
notification, signed by a  Servicing Officer, of the deposit in the
Collection Account of the Repurchase Price or Substitution Price,
as applicable, and (in the case of a substitution for a Mortgage
Loan) upon receipt by the Trustee of such instruments of transfer
or assignment, in each case without recourse, as shall be necessary
to vest in the Trust title to any Substitute Mortgage Loan, the
Trustee shall (or, if applicable, shall cause the Custodian in
accordance with the Custodial Agreement to) on behalf of the Trust
release to the Company or the Seller, as applicable, or to such
person’s designee, the Mortgage File for such Mortgage Loan
and shall execute and deliver (or, in the event that the Mortgage
Files are held in the name of the Custodian, shall cause the
Custodian in accordance with the Custodial Agreement to execute and
deliver) on behalf of the Trust such instruments of transfer or
assignment, in each case without recourse, as shall be necessary to
vest in such person or its designee or assignee title to any such
Mortgage Loan. In furtherance of the foregoing, if such Mortgage
Loan is a MERS Loan and as a result of the repurchase thereof or
substitution therefor such Mortgage Loan shall cease to be serviced
by a servicer that is a member of MERS or if the Company or the
Seller, as applicable, or such person’s assignee, shall so
request, the Servicer shall cause MERS to execute and deliver an
assignment of the Mortgage in recordable form from MERS to such
person or its assignee and shall cause the Mortgage Loan to be
removed from registration on the MERS® System in accordance
with MERS’ rules and procedures.

It is understood and agreed that the  obligation
of (a) the Seller, pursuant to Section 2.4 of the Mortgage Loan
Purchase Agreement, to repurchase or substitute for any Mortgage
Loan as to which a defect in a constituent document exists, or (b)
of the Seller or the Company, as applicable, pursuant to Section
3.3 of the Mortgage Loan Purchase Agreement or Section 2.8 hereof,
to repurchase or substitute for any Mortgage Loan as to which a
breach has occurred and is continuing, shall constitute the sole
remedy respecting such defect or breach available to the Trust or
the Holders of the REMIC interests or the Certificates issued
hereunder or the Trustee on behalf of such Holders.

Section 2.11         
Acknowledgment of Transfer of Mortgage Pool Assets

The Trustee hereby  acknowledges and
accepts on behalf of the Trust the transfer and assignment pursuant
to Section 2.04 to the Trust of the Mortgage Pool Assets, but
without having made the review required to be made pursuant to
Section 2.07, and declares that as of the Closing Date it holds and
shall hold any documents constituting a part of the Mortgage Pool
Assets, and the Mortgage Pool Assets, as Trustee in trust, upon the
trust herein set forth, for the use and benefit of all present and
future Holders of the REMIC I Regular Interests and the Class R-1
Residual Interest.

Section 2.12         
Conveyance of REMIC II Assets; Security Interest

The Company does hereby irrevocably sell,
transfer, assign, set over, and otherwise convey to the Trust,
without recourse, all the Company’s right, title and interest
in and to the REMIC I Regular Interests (other than the Class
L1‐P Regular Interest). The Trust, as payment of the purchase
price of such assets, shall issue the REMIC II Regular Interests
and the Class R-2 Residual Interest to the Company on the Closing
Date. Pursuant to Section 3818 of the Statutory Trust Statute, the
REMIC I Regular Interests shall not be cancelled and shall be held
as treasury interests owned by the Trust. The REMIC II Regular
Interests and the Class R-2 Residual Interest shall together be a
separate series of beneficial interests in the assets of the Trust
consisting of the REMIC II Assets pursuant to Section 3806(b)(2) of
the Statutory Trust Statute.

It is the express intent of
the parties hereto that the conveyance of the REMIC I Regular
Interests to the Trust by the Company as provided in this Section
2.12 be, and be construed as, an absolute sale of the REMIC I
Regular Interests. It is, further, not the intention of the parties
that such conveyance be deemed the grant of a security interest in
the REMIC I Regular Interests by the Company to the Trust to secure
a debt or other obligation of the Company. However, in the event
that, notwithstanding the intent of the parties, the REMIC I
Regular Interests are held to be the property of the Company, or if
for any other reason this Agreement is held or deemed to create a
security interest in the REMIC I Regular Interests,
then

(a)       
this Agreement shall constitute a security agreement;

(b)        the
conveyance provided for in this Section 2.12 shall be deemed to be
a grant by the Company to the Trust of, and the Company hereby
grants to the Trust, to secure all of the Company’s
obligations hereunder, a security interest in all of the
Company’s right, title, and interest, whether now owned or
hereafter acquired, in and to:

(I)        The
REMIC I Regular Interests including, without limitation, all rights
represented thereby in and to the Mortgage Pool Assets and the
proceeds thereof;

(II)       All
accounts, chattel paper, deposit accounts, documents, general
intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas,
and other minerals, consisting of, arising from, or relating to,
any of the foregoing; and

(III)      All proceeds
of the foregoing.

The Company shall file such financing statements,
and the Company and the Trustee acting on behalf of the Trust at
the direction of the Company shall, to the extent consistent with
this Agreement, take such other actions as may be necessary to
ensure that, if this Agreement were found to create a security
interest in the REMIC I Regular Interests, such security interest
would be a perfected security interest of first priority under
applicable law and will be maintained as such throughout the term
of this Agreement. In connection herewith, the Trust shall have all
of the rights and remedies of a secured party under the Uniform
Commercial Code as in force in the relevant
jurisdiction.

Section 2.13         
REMIC Election for REMIC II

The Trustee shall, on behalf of REMIC II, elect to treat REMIC II as a REMIC within the meaning of
Section 860D of the Code and, if necessary, under applicable state
laws. Such election shall be included in the Form 1066 and any
appropriate state return to be filed on behalf of REMIC II for its
first taxable year.

The Closing Date is hereby designated as the
“startup day” of REMIC II within the meaning of Section
860G(a)(9) of the Code.

The regular interests (as set forth in the table
contained in the Preliminary Statement hereto) relating to REMIC II
are hereby designated as “regular interests” in REMIC
II for purposes of Section 860G(a)(1) of the Code. The Class R-2
Residual Interest is hereby designated as the sole class of
“residual interest” in REMIC II for purposes of Section
860G(a)(2) of the Code.

The parties intend that the affairs of REMIC II
shall constitute, and that the affairs of REMIC II shall be
conducted so as to qualify it as, a REMIC. In furtherance of such
intention, the Trustee shall, on behalf of REMIC II: (a) prepare
and file, or cause to be prepared and filed, a federal tax return
using a calendar year as the taxable year for REMIC II when and as
required by the REMIC provisions and other applicable federal
income tax laws; (b) make an election, on behalf of REMIC II, to be
treated as a REMIC on the federal tax return of REMIC II for its
first taxable year, in accordance with the REMIC provisions; (c)
prepare and forward, or cause to be prepared and forwarded, to the
Certificateholders and the Holders of the Class R-2 Residual
Interest all information reports as and when required to be
provided to them in accordance with the REMIC provisions; (d)
conduct the affairs of REMIC II at all times that any of the
Certificates are outstanding so as to maintain the status of REMIC
II as a REMIC under the REMIC provisions; (e) not knowingly or
intentionally take any action or omit to take any action that would
cause the termination of the REMIC status of REMIC II; and (f) pay
the amount of any federal prohibited transaction penalty taxes
imposed on REMIC II when and as the same shall be due and payable
(but such obligation shall not prevent the Trustee or any other
appropriate person from contesting any such tax in appropriate
proceedings and shall not prevent the Trustee from withholding
payment of such tax, if permitted by law, pending the outcome of
such proceedings).

In the event that the Trustee has paid any
federal prohibited transaction penalty taxes imposed on REMIC II
pursuant to clause (f) of the immediately preceding paragraph, the
Trustee on behalf of the Trust shall (unless the Trustee’s
failure to exercise reasonable care was the primary cause of the
imposition of such taxes) reimburse itself for such payment from
amounts on deposit in the Distribution Account in reduction of the
REMIC II Available Distribution Amount for the applicable
Distribution Date.  In the event that any federal prohibited
transaction penalty taxes are imposed on REMIC II and not paid by
the Trustee pursuant to clause (f) of the immediately preceding
paragraph, the Trustee on behalf of the Trust shall pay such taxes
from amounts on deposit in the Distribution Account in reduction of
the REMIC II Available Distribution Amount for the applicable
Distribution Date.  The amount so reimbursed pursuant to
either of the immediately preceding two sentences shall be
allocated as a loss among the REMIC II Regular Interests pursuant
to the definition of “Realized Losses.”

None of the Trustee, Servicer or the Tax Matters
Person shall knowingly or intentionally take any action that would
cause the termination of the REMIC status of REMIC II.

Section 2.14         
Acknowledgement of Transfer of REMIC I Regular Interests

.  The Trustee hereby acknowledges and
accepts on behalf of the Trust the assignment to the Trust pursuant
to Section 2.12 of the REMIC I Regular Interests and declares that
as of the Closing Date it holds and shall hold such assets and any
documents constituting a part of such assets and, as Trustee in
trust, upon the trust herein set forth, for the use and benefit of
all present and future Holders of the REMIC II Regular Interests
and the Class R-2 Residual Interest.

Section 2.15         
Conveyance of REMIC II Regular Interests; Security
Interest

The Company does hereby
irrevocably sell, transfer, assign, set over, and otherwise convey
to the Trust, without recourse, all the Company’s right,
title and interest in and to the REMIC II Regular Interests. The
Trust, as payment of the purchase price of the REMIC II Regular
Interests, shall issue the REMIC III Regular Interests, the
Certificates (other than the Class C, Class P, Class SW, Class R,
Class R-CX, and Class R-PX Certificates) and the Class R‐3
Residual Interest to the Company on the Closing Date. 
Pursuant to Section 3818 of the Statutory Trust Statute, the REMIC
I Regular Interests and the REMIC II Regular Interests shall not be
cancelled and shall be held as treasury interests owned by the
Trust.  The REMIC III Regular Interests, the Certificates
(other than the Class C, Class P, Class R, Class R-CX and Class
R-PX Certificates), and the Class R-3 Residual Interest shall
together be a separate series of beneficial interests in the assets
of the Trust consisting of the REMIC II Regular Interests pursuant
to Section 3806(b)(2) of the Statutory Trust Statute.

It is the express intent of
the parties hereto that the conveyance of the REMIC II Regular
Interests to the Trust by the Company as provided in this Section
2.15 be, and be construed as, an absolute sale of the REMIC II
Regular Interests.  It is, further, not the intention of the
parties that such conveyance be deemed the grant of a security
interest in the REMIC II Regular Interests by the Company to the
Trust to secure a debt or other obligation of the Company. 
However, in the event that, notwithstanding the intent of the
parties, the REMIC II Regular Interests are held to be the property
of the Company, or if for any other reason this Agreement is held
or deemed to create a security interest in the REMIC II Regular
Interests, then

(a)       
this Agreement shall constitute a security agreement;

(b)        the
conveyance provided for in this Section 2.15 shall be deemed to be
a grant by the Company to the Trust of, and the Company hereby
grants to the Trust, to secure all of the Company’s
obligations hereunder, a security interest in all of the
Company’s right, title, and interest, whether now owned or
hereafter acquired, in and to:

(I)        The
REMIC II Regular Interests, including without limitation all rights
represented thereby in and to the Mortgage Pool Assets and the
proceeds thereof;

(II)       All
accounts, chattel paper, deposit accounts, documents, general
intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas,
and other minerals, consisting of, arising from, or relating to,
any of the foregoing; and

(III)      All proceeds
of the foregoing.

The Company shall file such financing statements,
and the Company and the Trustee acting on behalf of the Trust at
the direction of the Company shall, to the extent consistent with
this Agreement, take such other actions as may be necessary to
ensure that, if this Agreement were found to create a security
interest in the REMIC II Regular Interests, such security interest would be a
perfected security interest of first priority under applicable law and will be
maintained as such throughout the term of this Agreement. In connection
herewith, the Trust shall have all of the rights and remedies of a secured party
under the Uniform Commercial Code as in force in the relevant jurisdiction.

Section 2.16         
REMIC Election for REMIC III

The Trustee shall, on behalf of REMIC III, elect to treat REMIC III as a REMIC within the meaning
of Section 860D of the Code and, if necessary, under applicable
state laws. Such election shall be included in the Form 1066 and
any appropriate state return to be filed on behalf of REMIC III for
its first taxable year.

The Closing Date is hereby designated as the
“startup day” of REMIC III within the meaning of
Section 860G(a)(9) of the Code.

The regular interests (as set forth in the table
contained in the Preliminary Statement hereto) relating to REMIC
III are hereby designated as “regular interests” in
REMIC III for purposes of Section 860G(a)(1) of the Code. The Class
R-3 Residual Interest is hereby designated as the sole class of
“residual interest” in REMIC III for purposes of
Section 860G(a)(2) of the Code.

The parties intend that the affairs of REMIC III
shall constitute, and that the affairs of REMIC III shall be
conducted so as to qualify it as, a REMIC. In furtherance of such
intention, the Trustee shall, on behalf of REMIC III: (a) prepare
and file, or cause to be prepared and filed, a federal tax return
using a calendar year as the taxable year for REMIC III when and as
required by the REMIC provisions and other applicable federal
income tax laws; (b) make an election, on behalf of REMIC III, to
be treated as a REMIC on the federal tax return of REMIC III for
its first taxable year, in accordance with the REMIC provisions;
(c) prepare and forward, or cause to be prepared and forwarded, to
the Certificateholders and the Holders of the Class R-3 Residual
Interest all information reports as and when required to be
provided to them in accordance with the REMIC provisions; (d)
conduct the affairs of REMIC III at all times that any of the
Certificates are outstanding so as to maintain the status of REMIC
II as a REMIC under the REMIC provisions; (e) not knowingly or
intentionally take any action or omit to take any action that would
cause the termination of the REMIC status of REMIC III; and (f) pay
the amount of any federal prohibited transaction penalty taxes
imposed on REMIC III when and as the same shall be due and payable
(but such obligation shall not prevent the Trustee or any other
appropriate person from contesting any such tax in appropriate
proceedings and shall not prevent the Trustee from withholding
payment of such tax, if permitted by law, pending the outcome of
such proceedings).

In the event that the Trustee has paid any
federal prohibited transaction penalty taxes imposed on REMIC III
pursuant to clause (f) of the immediately preceding paragraph, the
Trustee on behalf of the Trust shall (unless the Trustee’s
failure to exercise reasonable care was the primary cause of the
imposition of such taxes) reimburse itself for such payment from
amounts on deposit in the Distribution Account in reduction of the
REMIC III Available Distribution Amount for the applicable
Distribution Date.  In the event that any federal prohibited
transaction penalty taxes are imposed on REMIC III and not paid by
the Trustee pursuant to clause (f) of the immediately preceding
paragraph, the Trustee on behalf of the Trust shall pay such taxes
from amounts on deposit in the Distribution Account in reduction of
the REMIC III Available Distribution Amount for the applicable
Distribution Date.  The amount so reimbursed pursuant to
either of the immediately preceding two sentences shall be
allocated as a loss among the REMIC III Regular Interests pursuant
to the definition of “Realized Losses.”

None of the Trustee, Servicer or the Tax Matters
Person shall knowingly or intentionally take any action that would
cause the termination of the REMIC status of REMIC III.

Section 2.17         
   Acknowledgement of Transfer of
REMIC II Regular Interests

The Trustee hereby acknowledges and
accepts on behalf of the Trust the assignment to the Trust pursuant
to Section 2.15 of the REMIC II Regular Interests and declares that
as of the Closing Date it holds and shall hold such assets and any
documents constituting a part of such assets, as Trustee in trust,
upon the trust herein set forth, for the use and benefit of all
present and future Holders of the REMIC III Regular Interests, the
Certificates (other than the Class C, Class P, Class SW, Class R,
Class R-CX, and Class R-PX Certificates), and the Class R-3
Residual Interest.

Section 2.18         
Conveyance of Class L3-C Regular Interest

The Company does hereby irrevocably sell,
transfer, assign, set over, and otherwise convey to the Trust,
without recourse, all the Company’s right, title and interest
in and to the Class L3-C Regular Interest.  The Trust, as
payment of the purchase price of the Class L3-C Regular Interest,
shall issue the Class C Certificates and the Class R-4 Residual
Interest to the Company on the Closing Date.  Pursuant to
Section 3818 of the Statutory Trust Statute, the REMIC I Regular
Interests, the REMIC II Regular Interests, and the Class L3-C
Regular Interest shall not be cancelled and shall be held as
treasury interests owned by the Trust.  The Class C
Certificates and the Class R-4 Residual Interest shall together be
a separate series of beneficial interests in the assets of the
Trust consisting of the Class L3-C Regular Interest pursuant to
Section 3806(b)(2) of the Statutory Trust Statute.

It is the express intent of the parties hereto
that the conveyance of the Class L3-C Regular Interest to the Trust
by the Company as provided in this Section 2.18 be, and be
construed as, an absolute sale of the Class L3-C Regular
Interest.  It is, further, not the intention of the parties
that such conveyance be deemed the grant of a security interest in
the Class L3-C Regular Interest by the Company to the Trust to
secure a debt or other obligation of the Company.  However, in
the event that, notwithstanding the intent of the parties, the
Class L3-C Regular Interest are held to be the property of the
Company, or if for any other reason this Agreement is held or
deemed to create a security interest in the Class L3-C Regular
Interest, then

(a)       
this Agreement shall constitute a security agreement;

(b)        the
conveyance provided for in this Section 2.18 shall be deemed to be
a grant by the Company to the Trust of, and the Company hereby
grants to the Trust, to secure all of the Company’s
obligations hereunder, a security interest in all of the
Company’s right, title, and interest, whether now owned or
hereafter acquired, in and to:

(I)        The
Class L3-C Regular Interest, including without limitation all
rights represented thereby in and to the Mortgage Pool Assets and
the proceeds thereof;

(II)       All
accounts, chattel paper, deposit accounts, documents, general
intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas,
and other minerals, consisting of, arising from, or relating to,
any of the foregoing; and

(III)      All proceeds
of the foregoing.

The Company shall file such financing statements,
and the Company and the Trustee acting on behalf of the Trust at
the direction of the Company shall, to the extent consistent with
this Agreement, take such other actions as may be necessary to
ensure that, if this Agreement were found to create a security
interest in the Class L3-C Regular Interest, such security interest
would be a perfected security interest of first priority under
applicable law and will be maintained as such throughout the term
of this Agreement. In connection herewith, the Trust shall have all
of the rights and remedies of a secured party under the Uniform
Commercial Code as in force in the relevant
jurisdiction.

Section 2.19         
REMIC Election for REMIC IV

The Trustee shall, on behalf of REMIC IV,
elect to treat REMIC IV as a REMIC within the meaning of Section
860D of the Code and, if necessary, under applicable state laws.
Such election shall be included in the Form 1066 and any
appropriate state return to be filed on behalf of REMIC IV for its
first taxable year.

The Closing Date is hereby designated as the
“startup day” of REMIC IV within the meaning of Section
860G(a)(9) of the Code.

The regular interests (as set forth in the table
contained in the Preliminary Statement hereto) relating to REMIC IV
are hereby designated as “regular interests” in REMIC
IV for purposes of Section 860G(a)(1) of the Code.  The Class
R-4 Residual Interest is hereby designated as the sole class of
“residual interest” in REMIC IV for purposes of Section
860G(a)(2) of the Code.

The parties intend that the affairs of REMIC IV
shall constitute, and that the affairs of REMIC IV shall be
conducted so as to qualify it as, a REMIC. In furtherance of such
intention, the Trustee shall, on behalf of REMIC IV: (a) prepare
and file, or cause to be prepared and filed, a federal tax return
using a calendar year as the taxable year for REMIC IV when and as
required by the REMIC provisions and other applicable federal
income tax laws; (b) make an election, on behalf of REMIC IV, to be
treated as a REMIC on the federal tax return of REMIC IV for its
first taxable year, in accordance with the REMIC provisions; (c)
prepare and forward, or cause to be prepared and forwarded, to the
Certificateholders and the Holders of the Class R-4 Residual
Interest all information reports as and when required to be
provided to them in accordance with the REMIC provisions; (d)
conduct the affairs of REMIC IV at all times that any of the
Certificates are outstanding so as to maintain the status of REMIC
IV as a REMIC under the REMIC provisions; (e) not knowingly or
intentionally take any action or omit to take any action that would
cause the termination of the REMIC status of REMIC IV; and (f) pay
the amount of any federal prohibited transaction penalty taxes
imposed on REMIC IV when and as the same shall be due and payable
(but such obligation shall not prevent the Trustee or any other
appropriate person from contesting any such tax in appropriate
proceedings and shall not prevent the Trustee from withholding
payment of such tax, if permitted by law, pending the outcome of
such proceedings).

In the event that the Trustee has paid any
federal prohibited transaction penalty taxes imposed on REMIC IV
pursuant to clause (f) of the immediately preceding paragraph, the
Trustee on behalf of the Trust shall (unless the Trustee’s
failure to exercise reasonable care was the primary cause of the
imposition of such taxes) reimburse itself for such payment from
amounts on deposit in the Distribution Account in reduction of the
REMIC IV Available Distribution Amount for the applicable
Distribution Date.  In the event that any federal prohibited
transaction penalty taxes are imposed on REMIC IV and not paid by
the Trustee pursuant to clause (f) of the immediately preceding
paragraph, the Trustee on behalf of the Trust shall pay such taxes
from amounts on deposit in the Distribution Account in reduction of
the REMIC IV Available Distribution Amount for the applicable
Distribution Date.  The amount so reimbursed pursuant to
either of the immediately two preceding sentences shall be
allocated as a loss to the Class C Certificates, but shall not
reduce the Certificate Principal Balance thereof.

None of the Trustee, Servicer or the Tax Matters
Person shall knowingly or intentionally take any action that would
cause the termination of the REMIC status of REMIC IV.

Section 2.20         
Acknowledgement of Transfer of Class L3-C Regular Interest

The Trustee hereby acknowledges and accepts on behalf of the
Trust the assignment to the Trust pursuant to Section 2.18 of the Class L3-C
Regular Interest and declares that as of the Closing Date it holds and shall
hold such assets and any documents constituting a part of such assets, as
Trustee in trust, upon the trust herein set forth, for the use and benefit of
all present and future Holders of the Class C Certificates and the Class R-4
Residual Interest.

Section 2.21         
Conveyance of Class L3-P Regular Interest

The Company does hereby irrevocably sell,
transfer, assign, set over, and otherwise convey to the Trust,
without recourse, all the Company’s right, title and interest
in and to the Class L3-P Regular Interest.  The Trust, as
payment of the purchase price of the Class L3-P Regular Interest,
shall issue the Class P Certificates and the Class R-5 Residual
Interest to the Company on the Closing Date.  Pursuant to
Section 3818 of the Statutory Trust Statute, the REMIC I Regular
Interests, the REMIC II Regular Interests, the Class L3-C Regular
Interest, and the Class L3-P Regular Interest shall not be
cancelled and shall be held as treasury interests owned by the
Trust.  The Class P Certificates and the Class R-5 Residual
Interest shall together be a separate series of beneficial
interests in the assets of the Trust consisting of the Class L3-P
Regular Interest pursuant to Section 3806(b)(2) of the Statutory
Trust Statute.

It is the express intent of the parties hereto
that the conveyance of the Class L3-P Regular Interest to the Trust
by the Company as provided in this Section 2.21 be, and be
construed as, an absolute sale of the Class L3-P Regular
Interest.  It is, further, not the intention of the parties
that such conveyance be deemed the grant of a security interest in
the Class L3-P Regular Interest by the Company to the Trust to
secure a debt or other obligation of the Company.  However, in
the event that, notwithstanding the intent of the parties, the
Class L3-P Regular Interest are held to be the property of the
Company, or if for any other reason this Agreement is held or
deemed to create a security interest in the Class L3-P Regular
Interest, then

(a)       
this Agreement shall constitute a security agreement;

(b)        the
conveyance provided for in this Section 2.21 shall be deemed to be
a grant by the Company to the Trust of, and the Company hereby
grants to the Trust, to secure all of the Company’s
obligations hereunder, a security interest in all of the
Company’s right, title, and interest, whether now owned or
hereafter acquired, in and to:

(I)        The
Class L3-P Regular Interest, including without limitation all
rights represented thereby in and to the Mortgage Pool Assets and
the proceeds thereof;

(II)       All
accounts, chattel paper, deposit accounts, documents, general
intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas,
and other minerals, consisting of, arising from, or relating to,
any of the foregoing; and

(III)      All proceeds
of the foregoing.

The Company shall file such financing statements,
and the Company and the Trustee acting on behalf of the Trust at
the direction of the Company shall, to the extent consistent with
this Agreement, take such other actions as may be necessary to
ensure that, if this Agreement were found to create a security
interest in the Class L3-P Regular Interest, such security interest
would be a perfected security interest of first priority under
applicable law and will be maintained as such throughout the term
of this Agreement. In connection herewith, the Trust shall have all
of the rights and remedies of a secured party under the Uniform
Commercial Code as in force in the relevant
jurisdiction.

Section 2.22         
REMIC Election for REMIC V

The Trustee shall, on behalf of REMIC V,
elect to treat REMIC V as a REMIC within the meaning of Section
860D of the Code and, if necessary, under applicable state laws.
Such election shall be included in the Form 1066 and any
appropriate state return to be filed on behalf of REMIC V for its
first taxable year.

The Closing Date is hereby designated as the
“startup day” of REMIC V within the meaning of Section
860G(a)(9) of the Code.

The regular interests (as set forth in the table
contained in the Preliminary Statement hereto) relating to REMIC V
are hereby designated as “regular interests” in REMIC V
for purposes of Section 860G(a)(1) of the Code.  The Class R-5
Residual Interest is hereby designated as the sole class of
“residual interest” in REMIC V for purposes of Section
860G(a)(2) of the Code.

The parties intend that the affairs of REMIC V
shall constitute, and that the affairs of REMIC V shall be
conducted so as to qualify it as, a REMIC. In furtherance of such
intention, the Trustee shall, on behalf of REMIC V: (a) prepare and
file, or cause to be prepared and filed, a federal tax return using
a calendar year as the taxable year for REMIC V when and as
required by the REMIC provisions and other applicable federal
income tax laws; (b) make an election, on behalf of REMIC V, to be
treated as a REMIC on the federal tax return of REMIC V for its
first taxable year, in accordance with the REMIC provisions; (c)
prepare and forward, or cause to be prepared and forwarded, to the
Certificateholders and the Holders of the Class R-5 Residual
Interest all information reports as and when required to be
provided to them in accordance with the REMIC provisions; (d)
conduct the affairs of REMIC V at all times that any of the
Certificates are outstanding so as to maintain the status of REMIC
V as a REMIC under the REMIC provisions; (e) not knowingly or
intentionally take any action or omit to take any action that would
cause the termination of the REMIC status of REMIC V; and (f) pay
the amount of any federal prohibited transaction penalty taxes
imposed on REMIC V when and as the same shall be due and payable
(but such obligation shall not prevent the Trustee or any other
appropriate person from contesting any such tax in appropriate
proceedings and shall not prevent the Trustee from withholding
payment of such tax, if permitted by law, pending the outcome of
such proceedings).

In the event that the Trustee has paid any
federal prohibited transaction penalty taxes imposed on REMIC V
pursuant to clause (f) of the immediately preceding paragraph, the
Trustee on behalf of the Trust shall (unless the Trustee’s
failure to exercise reasonable care was the primary cause of the
imposition of such taxes) reimburse itself for such payment from
amounts on deposit in the Distribution Account in reduction of the
REMIC V Available Distribution Amount for the applicable
Distribution Date.  In the event that any federal prohibited
transaction penalty taxes are imposed on REMIC V and not paid by
the Trustee pursuant to clause (f) of the immediately preceding
paragraph, the Trustee on behalf of the Trust shall pay such taxes
from amounts on deposit in the Distribution Account in reduction of
the REMIC V Available Distribution Amount for the applicable
Distribution Date.  The amount so reimbursed pursuant to
either of the immediately preceding two sentences shall be
allocated as a loss to the Class P Certificates, but shall not
reduce the Certificate Principal Balance thereof.

None of the Trustee, Servicer or the Tax Matters
Person shall knowingly or intentionally take any action that would
cause the termination of the REMIC status of REMIC V.

Section 2.23         
Acknowledgement of Transfer of Class L3-P Regular Interest

The Trustee hereby acknowledges and accepts on behalf of the
Trust the assignment to the Trust pursuant to Section 2.21 of the Class L3-P
Regular Interest and declares that as of the Closing Date it holds and shall
hold such assets and any documents constituting a part of such assets, as
Trustee in trust, upon the trust herein set forth, for the use and benefit of
all present and future Holders of the Class P Certificates and the Class R-5
Residual Interest.

Section 2.24         
Conveyance of Class L3-SW Regular Interest

The Company does hereby irrevocably sell,
transfer, assign, set over, and otherwise convey to the Trust,
without recourse, all the Company’s right, title and interest
in and to the Class L3-SW Regular Interest.  The Trust, as
payment of the purchase price of the Class L3-SW Regular Interest,
shall issue the Class L6-SW Regular Interest and the Class R-6
Residual Interest to the Company on the Closing Date. 
Pursuant to Section 3818 of the Statutory Trust Statute, the REMIC
I Regular Interests, the REMIC II Regular Interests, and the Class
L3-C, L1‐P and L3-SW Regular Interests shall not be cancelled
and shall be held as treasury interests owned by the Trust. 
The Class L6-SW Regular Interest and the Class R-6 Residual
Interest shall together be a separate series of beneficial
interests in the assets of the Trust consisting of the Class L3-SW
Regular Interest pursuant to Section 3806(b)(2) of the Statutory
Trust Statute.

It is the express intent of the parties hereto
that the conveyance of the Class L3-SW Regular Interest to the
Trust by the Company as provided in this Section 2.18 be, and be
construed as, an absolute sale of the Class L3-SW Regular
Interest.  It is, further, not the intention of the parties
that such conveyance be deemed the grant of a security interest in
the Class L3-SW Regular Interest by the Company to the Trust to
secure a debt or other obligation of the Company.  However, in
the event that, notwithstanding the intent of the parties, the
Class L3-SW Regular Interest are held to be the property of the
Company, or if for any other reason this Agreement is held or
deemed to create a security interest in the Class L3-SW Regular
Interest, then

(a)       
this Agreement shall constitute a security agreement;

(b)        the
conveyance provided for in this Section 2.24 shall be deemed to be
a grant by the Company to the Trust of, and the Company hereby
grants to the Trust, to secure all of the Company’s
obligations hereunder, a security interest in all of the
Company’s right, title, and interest, whether now owned or
hereafter acquired, in and to:

(I)        The
Class L3-SW Regular Interest, including without limitation all
rights represented thereby in and to the Mortgage Pool Assets and
the proceeds thereof;

(II)       All
accounts, chattel paper, deposit accounts, documents, general
intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas,
and other minerals, consisting of, arising from, or relating to,
any of the foregoing; and

(III)      All proceeds
of the foregoing.

The Company shall file such financing statements,
and the Company and the Trustee acting on behalf of the Trust at
the direction of the Company shall, to the extent consistent with
this Agreement, take such other actions as may be necessary to
ensure that, if this Agreement were found to create a security
interest in the Class L3-SW Regular Interest, such security
interest would be a perfected security interest of first priority
under applicable law and will be maintained as such throughout the
term of this Agreement.  In connection herewith, the Trust
shall have all of the rights and remedies of a secured party under
the Uniform Commercial Code as in force in the relevant
jurisdiction.

Section 2.25         
REMIC Election for REMIC VI

The Trustee shall, on behalf of REMIC VI,
elect to treat REMIC VI as a REMIC within the meaning of Section
860D of the Code and, if necessary, under applicable state laws.
Such election shall be included in the Form 1066 and any
appropriate state return to be filed on behalf of REMIC VI for its
first taxable year.

The Closing Date is hereby designated as the
“startup day” of REMIC VI within the meaning of Section
860G(a)(9) of the Code.

The regular interests (as set forth in the table
contained in the Preliminary Statement hereto) relating to REMIC VI
are hereby designated as “regular interests” in REMIC
VI for purposes of Section 860G(a)(1) of the Code.  The Class
R-6 Residual Interest is hereby designated as the sole class of
“residual interest” in REMIC VI for purposes of Section
860G(a)(2) of the Code.

The parties intend that the affairs of REMIC VI
shall constitute, and that the affairs of REMIC VI shall be
conducted so as to qualify it as, a REMIC.  In furtherance of
such intention, the Trustee shall, on behalf of REMIC VI: (a)
prepare and file, or cause to be prepared and filed, a federal tax
return using a calendar year as the taxable year for REMIC VI when
and as required by the REMIC provisions and other applicable
federal income tax laws; (b) make an election, on behalf of REMIC
VI, to be treated as a REMIC on the federal tax return of REMIC VI
for its first taxable year, in accordance with the REMIC
provisions; (c) prepare and forward, or cause to be prepared and
forwarded, to the Certificateholders and the Holders of the Class
R-6 Residual Interest all information reports as and when required
to be provided to them in accordance with the REMIC provisions; (d)
conduct the affairs of REMIC VI at all times that any of the
Certificates are outstanding so as to maintain the status of REMIC
VI as a REMIC under the REMIC provisions; (e) not knowingly or
intentionally take any action or omit to take any action that would
cause the termination of the REMIC status of REMIC VI; and (f) pay
the amount of any federal prohibited transaction penalty taxes
imposed on REMIC VI when and as the same shall be due and payable
(but such obligation shall not prevent the Trustee or any other
appropriate person from contesting any such tax in appropriate
proceedings and shall not prevent the Trustee from withholding
payment of such tax, if permitted by law, pending the outcome of
such proceedings).

In the event that the Trustee has paid any
federal prohibited transaction penalty taxes imposed on REMIC VI
pursuant to clause (f) of the immediately preceding paragraph, the
Trustee on behalf of the Trust shall (unless the Trustee’s
failure to exercise reasonable care was the primary cause of the
imposition of such taxes) reimburse itself for such payment from
amounts on deposit in the Distribution Account in reduction of the
REMIC VI Available Distribution Amount for the applicable
Distribution Date.  In the event that any federal prohibited
transaction penalty taxes are imposed on REMIC VI and not paid by
the Trustee pursuant to clause (f) of the immediately preceding
paragraph, the Trustee on behalf of the Trust shall pay such taxes
from amounts on deposit in the Distribution Account in reduction of
the REMIC VI Available Distribution Amount for the applicable
Distribution Date.  The amount so reimbursed pursuant to
either of the immediately preceding two sentences shall be
allocated as a loss to the Class L6 SW Regular
Interests.

None of the Trustee, Servicer or the Tax Matters
Person shall knowingly or intentionally take any action that would
cause the termination of the REMIC status of REMIC IV.

Section 2.26         
Acknowledgement of Transfer of Class L3-SW Regular
Interest

The Trustee hereby acknowledges and accepts on behalf of the
Trust the assignment to the Trust pursuant to Section 2.24 of the Class L3-SW
Regular Interest and declares that as of the Closing Date it holds and shall
hold such assets and any documents constituting a part of such assets, as
Trustee in trust, upon the trust herein set forth, for the use and benefit of
all present and future Holders of the Class L6-SW Regular Interest and the Class
R-6 Residual Interest.

Section 2.27         
Legal Title

Legal title to all assets of the Trust shall be vested at all
times in the Trust as a separate legal entity.

Section 2.28         
Compliance with ERISA Requirements

For purposes of ensuring compliance with
the requirements of the “underwriter’s exemption”
(U.S. Department of Labor Prohibited Transaction Exemption 2002-41,
67 Fed. Reg. 54487 (Aug. 22, 2002)), issued under ERISA, and for
the avoidance of any doubt as to the applicability of other
provisions of this Agreement, to the fullest extent permitted by
applicable law and except as contemplated by this Agreement, the
Trust shall not be a party to any merger, consolidation or
reorganization, or liquidate or sell its assets.

Section 2.29         
Additional Representation Concerning the Mortgage Loans

The Mortgage Loans permitted by the terms
of this Agreement to be included in the Trust are limited to (i)
the Mortgage Loans (which the Company acquired pursuant to the
Mortgage Loan Purchase Agreement, which contains, among other
representations and warranties, a representation and warranty of
the Seller that no Mortgage Loan is a “high-cost” or
“predatory” loan under any state or local law or
regulation applicable to the originator), and (ii) 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 Seller that no Substitute
Mortgage Loan is a “high cost” or
“predatory” loan under any state or local law or
regulation applicable to the originator).  Based on the
Seller’s obligation, pursuant to Section 3.3 of the Mortgage
Loan Purchase Agreement, to repurchase or substitute for the
affected Mortgage Loan in the event of a breach of the
representation set forth in clauses (xxvii) or (xxviii) of such
Section 3.3 thereof, the parties hereto agree and understand that
it is not intended for the Mortgage Pool to include any Mortgage
Loan that is a “high-cost home loan” as defined under
the New Jersey Home Ownership Security Act of 2002, the New
Mexico Home Loan Protection Act, the Massachusetts Predatory Home
Loan Practices Act or the Indiana Home Loan Practices Act (Indiana
Code, Section 24-9 et seq.).

Section 2.30         
No Other Interests

The Trustee shall not permit
the creation of any “interests” in REMIC I, REMIC II,
REMIC III, REMIC IV, REMIC V or REMIC VI (within the meaning of
Section 860G of the Code) other than the REMIC I Regular Interests,
the REMIC II Regular Interests, the REMIC III Regular Interests,
the Class L6-SW Regular Interest and the interests represented by
the Certificates.

ARTICLE
III

Administration and
Servicing of the Mortgage Loans

Section 3.01         
The Servicer.

(a)               
The Servicer shall service and administer the Mortgage Loans on
behalf of the Trust 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, 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 mortgage lenders and loan servicers administering
similar mortgage loans in the local areas where the related
Mortgaged Property is located but without regard to:

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

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

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

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

To the extent consistent with the foregoing, the

Servicer shall seek to maximize the timely and complete recovery of
principal and interest on the Mortgage Notes.  Subject only to
the above‐described servicing standards and the terms of this
Agreement and of the respective Mortgage Loans, the Servicer shall
have full power and authority, acting alone or through
Sub‐Servicers as provided in Section 3.02, to do or
cause to be done any and all things in connection with such
servicing and administration in accordance with policies and
procedures generally accepted in the mortgage banking
industry.  Without limiting the generality of the foregoing,
the Servicer in its own name or in the name of a Sub‐Servicer
is hereby authorized and empowered by the Trust when the Servicer
believes it appropriate in its best judgment in accordance with the
servicing standards set forth above, to execute and deliver, on
behalf of the Certificateholders, the Trust and the Trustee, and
upon notice to the Trustee, any and all instruments of satisfaction
or cancellation, or of partial or full release or discharge, and
all other comparable instruments, with respect to the Mortgage
Loans and the Mortgaged Properties and to institute foreclosure
proceedings or obtain a deed‐in‐lieu of foreclosure so
as to convert the ownership of such properties, and to hold or
cause to be held title to such properties, on behalf of the Trust
and the Certificateholders.  The Servicer shall service and
administer the Mortgage Loans in accordance with applicable state
and federal law and shall provide to the Mortgagors any reports
required to be provided to them thereby.  The Servicer shall
also comply in the performance of this Agreement with all
reasonable rules and requirements of each insurer under any
standard hazard insurance policy.  Subject to
Section 3.17, the Trustee, on behalf of the Trust, shall
execute, at the written direction of the Servicer, and furnish to
the Servicer and any Sub‐Servicer such documents as are
necessary or appropriate to enable the Servicer or any
Sub‐Servicer to carry out their servicing and administrative
duties hereunder, and the Trustee, on behalf of the Trust, hereby
grants to the Servicer and each Sub-Servicer a power of attorney to
carry out such duties including a power of attorney to take title
to Mortgaged Properties after foreclosure on behalf of the Trust
and the Certificateholders.  The Trustee, on behalf of the
Trust, at the direction of the Servicer, shall execute a separate
power of attorney in favor of (and furnish such power of attorney
to) the Servicer and/or each Sub-Servicer for the purposes
described herein to the extent necessary or desirable to enable the
Servicer to perform its duties hereunder.  The Trustee shall
not be liable for the actions of the Servicer or any
Sub‐Servicers under such powers of attorney.

The Servicer further is authorized and empowered
by the Trustee, on behalf of the Trust, in its own name or in the
name of a Sub-Servicer, when the Servicer 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 Trust, 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 Trust 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 to the Servicer by withdrawal from
the Collection Account pursuant to Section 3.11.

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

Notwithstanding anything in this Agreement to the
contrary, the Servicer may not make any future advances with
respect to a Mortgage Loan (except as provided in
Section 4.02) and the Servicer shall not (i) permit any
modification with respect to any Mortgage Loan that would change
the Mortgage Rate, reduce or increase the principal balance (except
for reductions resulting from actual payments of principal) or
change the final maturity date on such Mortgage Loan (unless, as
provided in Section 3.07, the Mortgagor is in default with
respect to the Mortgage Loan or such default is, in the judgment of
the Servicer, reasonably foreseeable) or (ii) permit any
modification, waiver or amendment of any term of any Mortgage Loan
that would both (A) effect an exchange or reissuance of such
Mortgage Loan under Section 1001 of the Code (or final,
temporary or proposed Treasury regulations promulgated thereunder)
and (B) cause any Trust REMIC to fail to qualify as a REMIC
under the Code or the imposition of any tax on “prohibited
transactions” or contributions after the startup day under
the REMIC Provisions.

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

With respect to each Mortgage Loan, the Servicer
will furnish, or cause to be furnished, information regarding the
borrower credit file related to such Mortgage Loan to credit
reporting agencies in compliance with the provisions of the Fair
Credit Reporting Act and the applicable implementing
regulations.

Section 3.02         
Sub‐Servicing Agreements Between the Servicer and
Sub‐Servicers.

(a)               
The Servicer may enter into Sub‐Servicing Agreements provided (i) that such agreements would not result in a
withdrawal or a downgrading by any Rating Agency of the ratings on
any Class of Certificates, any of the Other NIM Notes or any of the
Insured NIM Notes (without giving effect to any insurance policy
issued by the NIMS Insurer), as evidenced by a letter to that
effect delivered by each Rating Agency to the Company and the NIMS
Insurer and (ii) that, except in the case of any
Sub‐Servicing Agreements the Servicer may enter into with
Washington Mutual, Inc. or any Affiliate thereof, the NIMS Insurer
shall have consented to such Sub‐Servicing Agreements (which
consent shall not be unreasonably withheld) with
Sub‐Servicers, for the servicing and administration of the
Mortgage Loans.  The Trustee, on behalf of the Trust, is
hereby authorized and directed to acknowledge, at the request of
the Servicer, any Sub‐Servicing Agreement that (as certified
to the Trustee by the Servicer) meets the requirements applicable
to Sub‐Servicing Agreements set forth in this Agreement and
that is otherwise permitted under this Agreement.

Each Sub‐Servicer shall be
(i) authorized to transact business in the state or states in
which the related Mortgaged Properties it is to service are
situated, if and to the extent required by applicable law to enable
such Sub‐Servicer to perform its obligations hereunder and
under the related Sub‐Servicing Agreement, (ii) an
institution approved as a mortgagee by the Department of Housing
and Urban Development pursuant to Section 203 of the National
Housing Act of 1934, as amended, or an institution the deposit
accounts in which are insured by the FDIC and (iii) a Fannie
Mae approved mortgage servicer.  Each Sub‐Servicing
Agreement must impose on the related Sub‐Servicer
requirements conforming to the provisions set forth in
Section 3.08.  The Servicer will examine each
Sub‐Servicing Agreement and will be familiar with the terms
thereof.  The terms of any Sub‐Servicing Agreement will
not be inconsistent with any of the provisions of this
Agreement.  The Servicer and the Sub‐Servicers may enter
into and make amendments to the Sub‐Servicing Agreements or
enter into different forms of Sub‐Servicing Agreements;
provided, however, that any such amendments or
different forms shall be consistent with and not violate the
provisions of this Agreement, and that no such amendment or
different form shall be made or entered into which could be
reasonably expected to be materially adverse to the interests of
the Certificateholders, without the consent of the Holders of
Certificates entitled to at least 66% of the Voting Rights. 
Any variation without the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights from the provisions
set forth in Section 3.08 relating to credits and charges to
the Sub‐Servicing Accounts or the timing and amount of
remittances by the Sub‐Servicers to the Servicer are
conclusively deemed to be inconsistent with this Agreement and
therefore prohibited.  The Servicer shall deliver to the NIMS
Insurer and the Trustee copies of all Sub‐Servicing
Agreements, and any amendments or modifications thereof, promptly
upon the Servicer’s execution and delivery of such
instruments.

(b)              
As part of its servicing activities hereunder, the Servicer (except
as otherwise provided in the last sentence of this paragraph), for
the benefit of the Trust and the Certificateholders, shall enforce
the obligations of each Sub‐Servicer under the related
Sub‐Servicing Agreement and, subject to the last sentence of
this paragraph, of the Seller under the Mortgage Loan Purchase
Agreement including, without limitation, any obligation to make
advances in respect of delinquent payments as required by a
Sub‐Servicing Agreement, or to purchase or otherwise remedy
as contemplated herein a Mortgage Loan on account of missing or
defective documentation or on account of a breach of a
representation, warranty or covenant, as described in
Section 2.09.  Such enforcement, including, without
limitation, the legal prosecution of claims, termination of
Sub‐Servicing Agreements, and the pursuit of other
appropriate remedies, shall be in such form and carried out to such
an extent and at such time as the Servicer, in its good faith
business judgment, would require were it the owner of the related
Mortgage Loans.  The Servicer shall pay the costs of such
enforcement at its own expense, and shall be reimbursed therefor
only (i) from a general recovery resulting from such
enforcement, to the extent, if any, that such recovery exceeds all
amounts due in respect of the related Mortgage Loans or
(ii) from a specific recovery of costs, expenses or
attorneys’ fees against the party against whom such
enforcement is directed.  Enforcement of the Mortgage Loan
Purchase Agreement against the Seller shall be effected by the
Servicer to the extent it is not the Seller, and otherwise by the
Trustee, in accordance with the foregoing provisions of this
paragraph.

Section 3.03         
Successor Sub‐Servicers

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

Any Sub‐Servicing Agreement shall include
the provision that such agreement may be immediately terminated by
the Trustee without fee, in accordance with the terms of this
Agreement, and the Trustee shall so terminate such
Sub‐Servicing Agreement at the direction of the NIMS Insurer
in the event that the Servicer (or the Trustee, if then acting as
Servicer) shall, for any reason, no longer be the Servicer
(including termination due to a Event of Default).

Section 3.04         
Liability of the Servicer

Notwithstanding any
Sub‐Servicing Agreement, any of the provisions of this
Agreement relating to agreements or arrangements between the Servicer and a Sub‐Servicer or reference to actions taken
through a Sub‐Servicer or otherwise, the Servicer shall
remain obligated and primarily liable to the Trust and the
Certificateholders for the servicing and administering of the
Mortgage Loans in accordance with the provisions of
Section 3.01 without diminution of such obligation or
liability by virtue of such Sub‐Servicing Agreements or
arrangements or by virtue of indemnification from the
Sub‐Servicer and to the same extent and under the same terms
and conditions as if the Servicer alone were servicing and
administering the Mortgage Loans.  The Servicer shall be
entitled to enter into any agreement with a Sub‐Servicer for
indemnification of the Servicer by such Sub‐Servicer and
nothing contained in this Agreement shall be deemed to limit or
modify such indemnification and no such indemnification shall be an
expense of the Trust.

Section 3.05         
No Contractual Relationship Between Sub‐Servicers and the
NIMS Insurer, the Trustee or Certificateholders

Any Sub‐Servicing Agreement
that may be entered into and any transactions or services relating
to the Mortgage Loans involving a Sub‐Servicer in its
capacity as such shall be deemed to be between the related
Sub‐Servicer and the Servicer alone, and the Trustee, the
NIMS Insurer and the Certificateholders shall not be deemed parties
thereto and shall have no claims, rights, obligations, duties or
liabilities with respect to such Sub‐Servicer except as set
forth in Section 3.06.  The Servicer shall be solely
liable for all fees owed by it to any Sub‐Servicer,
irrespective of whether the Servicer’s compensation pursuant
to this Agreement is sufficient to pay such fees and such fees
shall not be an expense of the Trust.

Section 3.06         
Assumption or Termination of Sub‐Servicing Agreements by
Trustee

In the event the Servicer shall
for any reason no longer be the servicer (including by reason of
the occurrence of a Event of Default), the Trustee or its designee
shall thereupon assume all of the rights and obligations of the
Servicer under each Sub‐Servicing Agreement that the Servicer
may have entered into, unless the Trustee elects to terminate any
Sub‐Servicing Agreement in accordance with its terms as
provided in Section 3.03.  Upon such assumption, the
Trustee, its designee or the successor servicer for the Trustee
appointed pursuant to Section 7.02 shall be deemed, subject to
Section 3.03, to have assumed all of the Servicer’s
interest therein and to have replaced the Servicer as a party to
each Sub‐Servicing Agreement to the same extent as if each
Sub‐Servicing Agreement had been assigned to the assuming
party, except that (i) the Servicer shall not thereby be
relieved of any liability or obligations under any
Sub‐Servicing Agreement that arose before it ceased to be the
Servicer and (ii) none of the Trustee, its designee or any
successor Servicer shall be deemed to have assumed any liability or
obligation of the Servicer that arose before it ceased to be the
Servicer.

The Servicer at its own expense and without reimbursement
shall, upon request of the Trustee, deliver to the assuming party all documents
and records relating to each Sub‐Servicing Agreement and the Mortgage Loans then
being serviced and an 
accounting of amounts collected and held by or on behalf of
it, and otherwise use its best efforts to effect the orderly and efficient
transfer of the Sub‐Servicing Agreements to the assuming party.

Section 3.07         
Collection of Certain Mortgage Loan Payments

The Servicer shall make reasonable
efforts to collect all payments called for under the terms and
provisions of the Mortgage Loans, and shall, to the extent such
procedures shall be consistent with this Agreement and the terms
and provisions of any applicable insurance policies, follow such
collection procedures as it would follow with respect to mortgage
loans comparable to the Mortgage Loans and held
for its own
account.  Consistent with the foregoing, the Servicer may in
its discretion (i) waive any late payment charge or, if
applicable, any penalty interest, or (ii) extend the due dates
for the Monthly Payments due on a Mortgage Note for a period of not
greater than 180 days; provided that any extension pursuant
to this clause (ii) shall not affect the amortization schedule
of any Mortgage Loan for purposes of any computation hereunder,
except as provided below.  In the event of any such
arrangement pursuant to clause (ii) above, the Servicer shall make
timely advances on such Mortgage Loan during such extension
pursuant to Section 4.02 and in accordance with the
amortization schedule of such Mortgage Loan without modification
thereof by reason of such arrangements, subject to
Section 4.03 pursuant to which the Servicer shall not be
required to make any such advances that are Nonrecoverable
Advances.  Notwithstanding the foregoing, in the event that
any Mortgage Loan is in default or, in the judgment of the
Servicer, such default is reasonably foreseeable, the Servicer,
consistent with the standards set forth in Section 3.01, may
also waive, modify or vary any term of such Mortgage Loan
(including modifications that would change the Mortgage Rate,
forgive the payment of principal or interest or extend the final
maturity date of such Mortgage Loan, accept payment from the
related Mortgagor of an amount less than the Stated Principal
Balance in final satisfaction of such Mortgage Loan (such payment,
a “Short Pay‐off”) or consent to the
postponement of strict compliance with any such term or otherwise
grant indulgence to any Mortgagor; provided, that in the
judgment of the Servicer, any such modification, waiver or
amendment could reasonably be expected to result in collections and
other recoveries in respect of such Mortgage Loans in excess of Net
Liquidation Proceeds that would be recovered upon the foreclosure
of, or other realization upon, such Mortgage Loan and
provided further, that the NIMS Insurer’s prior
written consent shall be required for any modification, waiver or
amendment if the aggregate number of outstanding Mortgage Loans
which have been modified, waived or amended exceeds 5% of the
number of Closing Date Mortgage Loans as of the Cut‐off
Date. 

Section 3.08         
Sub‐Servicing Accounts

In those cases where a
Sub‐Servicer is servicing a Mortgage Loan pursuant to a
Sub‐Servicing Agreement, such Sub‐Servicer shall be
required to establish and maintain one or more segregated accounts
(collectively, the “Sub‐Servicing
Account”).  Each Sub‐Servicing Account shall
be an account with an Eligible Institution and shall be entitled
“[Name of Sub-Servicer], as Sub-Servicer, in trust for
holders of Washington Mutual Asset-Backed Certificates WMABS Series
2007-HE2.”  Each Sub‐Servicer shall be required to
deposit in the clearing account (which account must be with an
Eligible Institution) 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 such Sub‐Servicer’s receipt
thereof, all proceeds of Mortgage Loans received by the such
Sub‐Servicer less its servicing compensation to the extent
permitted by the related Sub‐Servicing Agreement, and shall
thereafter deposit such amounts in the Sub‐Servicing Account,
in no event more than two Business Days after the deposit of such
funds into the clearing account.  Such Sub‐Servicer
shall thereafter be required to deposit all such proceeds in the
Collection Account or remit such proceeds to the Servicer for
deposit in the Collection Account not later than the Determination
Date following the deposit of such amounts in the
Sub‐Servicing Account.  For purposes of this Agreement,
the Servicer shall be deemed to have received payments on the
Mortgage Loans when such Sub‐Servicer receives such
payments.

Section 3.09         
Collection of Taxes, Assessments and Similar Items; Servicing
Accounts

The Servicer shall establish and
maintain, or cause to be established and maintained, one or more
segregated accounts (the “Servicing
Accounts”).  Servicing Accounts shall be maintained
with an Eligible Institution.  The Servicer shall deposit in
the clearing account (which account must be with an Eligible
Institution) in which it customarily deposits payments and
collections on mortgage loans in connection with its mortgage loan
servicing activities on a daily basis, and in no event more than
one Business Day after the Servicer’s receipt thereof, all
collections from the Mortgagors (or related advances from
Sub‐Servicers) for the payment of taxes, assessments, hazard
insurance premiums and comparable items for the account of the
Mortgagors (“Escrow Payments”) collected on
account of the Mortgage Loans and shall thereafter deposit such
Escrow Payments in the Servicing Accounts, in no event more than
two Business Days after the deposit of such funds in the clearing
account, for the purpose of effecting the payment of any such items
as required under the terms of this Agreement.  Withdrawals of
amounts from a Servicing Account may be made only to
(i) effect payment of taxes, assessments, hazard insurance
premiums, and comparable items; (ii) reimburse the Servicer
(or a Sub‐Servicer to the extent provided in the related
Sub‐Servicing Agreement) out of related collections for any
advances made pursuant to Section 3.01 (with respect to taxes
and assessments) and Section 3.14 (with respect to hazard
insurance); (iii) refund to Mortgagors any sums as may be
determined to be overages; (iv) pay interest, if required and
as described below, to Mortgagors on balances in the Servicing
Account; (v) clear and terminate the Servicing Account upon
the termination of the Servicer’s obligations and
responsibilities in respect of the Mortgage Loans under this
Agreement in accordance with Article IX or (vi) recover
amounts deposited in error.  As part of its servicing duties,
the Servicer or Sub‐Servicers 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
or their own funds, without any reimbursement therefor.  To
the extent that a Mortgage does not provide for Escrow Payments,
the Servicer shall determine whether any such payments are made by
the Mortgagor in a manner and at a time that avoids the loss of the
Mortgaged Property due to a tax sale or the foreclosure of a tax
lien.  The Servicer assumes full responsibility for the
payment of all such bills within such time and shall effect
payments of all such bills irrespective of the Mortgagor’s
faithful performance in the payment of same or the making of the
Escrow Payments and shall make advances from its own funds to
effect such payments; provided, however, that such
advances shall constitute Servicing Advances.

Section 3.10         
Collection Account and Distribution Account.

(a)               
On behalf of the Trust, the Servicer shall establish and maintain,
or cause to be established and maintained, one or more segregated
accounts (such account or accounts, the “Collection
Account”), held in trust for the benefit of the Trust and
the Certificateholders.  On behalf of the Trust, the Servicer
shall deposit or cause to be deposited in the clearing account
(which account must be with an Eligible Institution) 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 more than two Business Days
after the deposit of such funds into the clearing account, as and
when received or as otherwise required hereunder, the following
payments and collections received or made by it subsequent to the
Cut‐off Date (other than in respect of principal or interest
on the related Mortgage Loans due on or before the Cut‐off
Date or payments (other than Principal Prepayments) received by it
on or prior to the Cut‐off Date but allocable to a Due Period
subsequent thereto):

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

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

(iii)              
all Insurance Proceeds and Liquidation Proceeds (other than
proceeds collected in respect of any particular REO Property and
amounts paid by the Servicer in connection with a purchase of
Mortgage Loans and REO Properties pursuant to Section 9.01)
and all Gross Subsequent Recoveries;

(iv)             
any amounts required to be deposited pursuant to Section 3.12
in connection with any losses realized on Eligible 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 3.14(a) in respect of any
blanket policy deductibles;

(vi)             
all proceeds of any Mortgage Loan repurchased or purchased in
accordance with Section 2.08, Section 3.16(c) or
Section 9.01 and all Servicer Prepayment Charge Payment
Amounts required to be deposited in the Collection Account pursuant
to Section 2.08;

(vii)            
all Substitution Price; and

(viii)          
all Assigned Prepayment Charges collected by the Servicer.

For purposes of the immediately preceding 
sentence, the Cut‐off Date with respect to any Substitute
Mortgage Loan shall be deemed to be the date of substitution.

The aggregate amount deposited in the Collection
Account on any date pursuant to this Section 3.10(a) may be net of
any amounts permitted to be withdrawn by the Servicer from the
Collection Account on such date pursuant to Section
3.11(a).

The foregoing requirements for deposit in the
Collection Accounts shall be exclusive, it being understood and
agreed that, without limiting the generality of the foregoing, any
Prepayment Interest Excess and payments in the nature of late
payment charges, NSF fees, reconveyance fees, Prepayment Charges
that are not Assigned Prepayment Charges and prepayment charges
paid by Mortgagors upon voluntary partial prepayment of certain
mortgage loans, assumption fees and other similar fees and charges
(other than Assigned Prepayment Charges) need not be deposited by
the Servicer in the Collection Account and shall, upon collection,
belong to the Servicer as additional compensation for its servicing
activities.  In the event the Servicer shall deposit in the
Collection Account any amount not required to be deposited therein,
it may at any time withdraw such amount from the Collection
Account, any provision herein to the contrary
notwithstanding.

(b)              
On behalf of the Trust, the Trustee shall establish and maintain
one or more segregated accounts (such account or accounts, the
“Distribution Account”), held in trust for the
benefit of the Trust and the Certificateholders.  On behalf of
the Trust, the Servicer shall deliver to the Trustee in immediately
available funds for deposit on the same day in the Distribution
Account on or before 3:00 p.m. New York time on the Servicer
Remittance Date, that portion of the REMIC I Available Distribution
Amount (calculated without regard to the references in 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, the amount of all Assigned
Prepayment Charges on the Prepayment Charge Schedule collected by
the Servicer in connection with any of the Mortgage Loans and any
Servicer Prepayment Charge Payment Amounts then on deposit in the
Collection Account.  In order to comply with its duties under
the U.S.A. Patriot Act, the Trustee shall obtain and verify certain
information and documentation from the parties hereto, including,
but not limited to, each party’s name, address, and other
identifying information.

(c)               
Funds in the Collection Account and the Distribution Account may be
invested in Eligible Investments in accordance with the provisions
set forth in Section 3.12.  The Servicer shall give
notice to the Trustee, the NIMS Insurer, the Company and the Rating
Agencies of the location of the Collection Account maintained by it
when established and prior to any change thereof.  The Trustee
shall give notice to the Servicer, the NIMS Insurer, the Company
and the Rating Agencies of the location of the Distribution Account
when established and prior to any change thereof.

(d)              
Funds held in the Collection Account at any time may be delivered
by the Servicer to the Trustee for deposit in an account (which may
be the Distribution Account and must satisfy the standards for the
Distribution Account as set forth in the definition thereof) and
for all purposes of this Agreement shall be deemed to be a part of
the Collection Account; provided, however, that the
Trustee shall have the sole authority to withdraw any funds held
pursuant to this subsection (d).  In the event the
Servicer shall deliver to the Trustee for deposit in the
Distribution Account any amount not required to be deposited
therein, it may at any time request that the Trustee withdraw, and
the Trustee shall withdraw, such amount from the Distribution
Account and remit to the Servicer any such amount, any provision
herein to the contrary notwithstanding.  In addition, the
Servicer shall deliver to the Trustee from time to time for
deposit, and the Trustee shall so deposit, in the Distribution
Account:

(i)                 
any Advances, as required pursuant to Section 4.02;

(ii)               
any amounts required to be deposited pursuant to
Section 3.23(d) or (f) in connection with any REO
Property;

(iii)              
any amounts to be paid by the Servicer in connection with a
purchase of Mortgage Loans and REO Properties pursuant to
Section 9.01;

(iv)             
any amounts required to be deposited pursuant to Section 3.24
in connection with any Prepayment Interest Shortfalls; and

(v)               
any Stayed Funds, as soon as permitted by the federal bankruptcy
court having jurisdiction in such matters.

(e)               
Promptly upon receipt of any Stayed Funds, whether from the
Servicer, a trustee in bankruptcy, federal bankruptcy court or
other source, the Trustee shall deposit such funds in the
Distribution Account.

Section 3.11         
Permitted 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 4.02, without priority:

(i)                 
to remit to the Trustee for deposit in the Distribution Account the
amounts required to be so remitted pursuant to Section 3.10(b)
or permitted to be so remitted pursuant to the first sentence of
Section 3.10(d);

(ii)               
subject to Section 3.16(d), to reimburse the Servicer for
Advances, but only to the extent of amounts received which
represent Late Collections (net of the related Servicing Fees) of
Monthly Payments on the related Mortgage Loans in accordance with
the provisions of Section 4.02;

(iii)              
subject to Section 3.16(d), to pay the Servicer or any
Sub‐Servicer (a) any unpaid Servicing Fees or
(b) any unreimbursed Servicing Advances with respect to each
Mortgage Loan, but only to the extent of any Late Collections,
Liquidation Proceeds, Insurance Proceeds, Gross Subsequent
Recoveries or other amounts as may be collected by the Servicer
from a Mortgagor, or otherwise received with respect to such
Mortgage Loan;

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

(v)               
to pay to the Servicer or the Seller, as the case may be, with
respect to each Mortgage Loan that has previously been purchased or
replaced pursuant to Section 2.08 or Section 3.16(c) all amounts
received thereon subsequent to the date of purchase or
substitution, as the case may be;

(vi)             
to reimburse the Servicer for any Advance or Servicing Advance
previously made which the Servicer has determined to be a
Nonrecoverable Advance in accordance with the provisions of
Section 4.02;

(vii)            
to reimburse the Servicer or the Company for expenses incurred by
or reimbursable to the Servicer or the Company, as the case may be,
pursuant to Section 6.03;

(viii)          
to reimburse the NIMS Insurer, the Servicer or the Trustee, as the
case may be, for enforcement expenses reasonably incurred in
respect of the breach or defect giving rise to the purchase
obligation under Section 2.08 of this Agreement that were
included in the Repurchase Price of the Mortgage Loan, including
any expenses arising out of the enforcement of the purchase
obligation; provided, however, that the reimbursement
to the NIMS Insurer pursuant to this clause shall be limited to an
annual amount of $25,000;

(ix)             
to pay, or to reimburse the Servicer for advances in respect of,
expenses incurred in connection with any Mortgage Loan pursuant to
Section 3.16(b); and

(x)               
to clear and terminate the Collection Account pursuant to
Section 9.01.

The Servicer shall keep and maintain separate
accounting, on an individual 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), (viii) and (ix) above.  The Servicer shall
provide written notification to the Trustee and the NIMS Insurer,
on or prior to the next succeeding Servicer Remittance Date, upon
making any withdrawals from the Collection Account pursuant to
subclause (vii) above.

(b)              
The Trustee 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 and for deposit into
the Reserve Fund and the Supplemental Interest Account in
accordance with Section 4.05;

(ii)               
to pay any Extraordinary Trust Fund Expenses;

(iii)              
to pay to itself any interest income earned on funds deposited in
the Distribution Account pursuant to Section 3.12(c);

(iv)             
to reimburse itself pursuant to Section 7.02 or pursuant to
Section 7.01 to the extent such amounts in Section 7.01
were not reimbursed by the Servicer;

(v)               
to pay any tax imposed on prohibited transactions of any Trust
REMIC created hereunder pursuant to Section 860F(a) of the
Code, on the net income from foreclosure property of any such REMIC
pursuant to Section 860G(c) of the Code, or 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, unless such tax arises out of or results from a
breach by the Trustee or the Servicer of any of their obligations
under this Agreement;

(vi)             
to pay 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 any Trust
REMIC that involve the Internal Revenue Service or state tax
authorities) unless such expenses, professional fees or any
administrative or judicial proceedings are incurred by reason of
the Trustee’s willful misfeasance, bad faith or
negligence;

(vii)            
to remit to the Servicer any amount deposited in the Distribution
Account by the Servicer but not required to be deposited therein in
accordance with Section 3.10(d);

(viii)          
to clear and terminate the Distribution Account pursuant to
Section 9.01; and

(ix)             
to pay itself the Trustee Fees.

Section 3.12         
Investment Accounts; Eligible Investments.

(a)               
The Servicer may direct any depository institution maintaining the
Collection Account and any REO Account (for purposes of this
Section 3.12, an “Investment Account”), and
the Trustee, in its individual capacity, may direct any depository
institution maintaining the Distribution Account (for purposes of
this Section 3.12, the Distribution Account is also an
“Investment Account”), to invest the funds in
such Investment Account in one or more Eligible Investments bearing
interest or sold at a discount, and maturing, unless payable on
demand, (i) no later than the Business Day immediately
preceding the date on which such funds are required to be withdrawn
from such account pursuant to this Agreement, if a Person other
than the Trustee is the obligor thereon and (ii) no later than
the date on which such funds are required to be withdrawn from such
account pursuant to this Agreement, if the Trustee is the obligor
thereon.  All such Eligible Investments shall be held to
maturity, unless payable on demand.  Any investment of funds
in an Investment Account shall be made in the name of the Trustee
(in its capacity as such), or in the name of a nominee of the
Trustee.  The Trustee shall be entitled to sole possession
(except with respect to investment direction of funds held in the
Collection Account and any REO Account and any income and gain
realized thereon) over each such investment, and any certificate or
other instrument evidencing any such investment shall be delivered
directly to the Trustee or its agent, together with any document of
transfer necessary to transfer title to such investment to the
Trustee or its nominee.  In the event amounts on deposit in an
Investment Account are at any time invested in a Permitted
Investment payable on demand, the Trustee shall:

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

(y)       
demand payment of all amounts due thereunder promptly upon actual
notice by a Responsible Officer of the Trustee that such Permitted
Investment would not constitute a Permitted Investment in respect
of funds thereafter on deposit in the Investment
Account.

(b)              
All income and gain realized from the investment of funds deposited
in the Collection Account and any REO Account held by or on behalf
of the Servicer shall be for the benefit of the Servicer and shall
be subject to its withdrawal in accordance with Section 3.11
or Section 3.23, as applicable.  The Servicer shall
deposit in the Collection Account or any REO Account, as
applicable, from its own funds, the amount of any loss of principal
incurred in respect of any such Permitted Investment made with
funds in such accounts immediately upon realization of such
loss.

(c)               
All income and gain realized from the investment of funds deposited
in the Distribution Account held by or on behalf of the Trustee
shall be for the benefit of the Trustee and shall be subject to its
withdrawal at any time.  The Trustee shall deposit in the
Distribution Account, from its own funds, the amount of any loss of
principal incurred in respect of any such Permitted Investment made
with funds in such accounts immediately upon realization of such
loss.

(d)              
Except as otherwise expressly provided in this Agreement, if any
default occurs in the making of a payment due under any Permitted
Investment, or if a default occurs in any other performance
required under any Permitted Investment, the Trustee may, and
subject to Section 8.01 and Section 8.02(a)(v), upon the
request of the Holders of Certificates representing more than 50%
of the Voting Rights allocated to any Class of Certificates shall,
take such action as may be appropriate to enforce such payment or
performance, including the institution and prosecution of
appropriate proceedings.

Section 3.13         
[Reserved].  

Section 3.14         
Maintenance of Hazard Insurance and Errors and Omissions and
Fidelity Coverage.

(a)               
The Servicer shall cause to be maintained for each Mortgage Loan
fire insurance with extended coverage on the related Mortgaged
Property in an amount which is at least equal to the least of
(i) the then current principal balance of such Mortgage Loan,
(ii) the amount necessary to fully compensate for any damage
or loss to the improvements that are a part of such property on a
replacement cost basis and (iii) the maximum insurable value
of the improvements which are a part of such Mortgaged Property, in
each case in an amount not less than such amount as is necessary to
avoid the application of any coinsurance clause contained in the
related hazard insurance policy.  The Servicer shall also
cause to be maintained fire insurance with extended coverage on
each REO Property in an amount which is at least equal to the
lesser of (i) the maximum insurable value of the improvements
which are a part of such property and (ii) the outstanding
principal balance of the related Mortgage Loan at the time it
became an REO Property, plus accrued interest at the Mortgage Rate
and related Servicing Advances.  The Servicer will comply in
the performance of this Agreement with all reasonable rules and
requirements of each insurer under any such hazard policies. 
Any amounts to be collected by the Servicer under any such policies
(other than amounts to be applied to the restoration or repair of
the property subject to the related Mortgage or amounts to be
released to the Mortgagor in accordance with the procedures that
the Servicer would follow in servicing loans held for its own
account, subject to the terms and conditions of the related
Mortgage and Mortgage Note) shall be deposited in the Collection
Account, subject to withdrawal pursuant to Section 3.11, if
received in respect of a Mortgage Loan, or in the REO Account,
subject to withdrawal pursuant to Section 3.23, if received in
respect of an REO Property.  Any cost incurred by the Servicer
in maintaining any such insurance shall not, for the purpose of
calculating distributions to Certificateholders, be added to the
unpaid principal balance of the related Mortgage Loan,
notwithstanding that the terms of such Mortgage Loan so
permit.  It is understood and agreed that no earthquake or
other additional insurance is to be required of any Mortgagor other
than pursuant to such applicable laws and regulations as shall at
any time be in force and as shall require such additional
insurance.  If the Mortgaged Property or REO Property is at
any time in an area identified in the Federal Register by the
Federal Emergency Management Agency as having special flood hazards
and flood insurance has been made available, the Servicer will
cause to be maintained a flood insurance policy in respect
thereof.  Such flood insurance shall be in an amount equal to
the lesser of (i) the unpaid principal balance of the related
Mortgage Loan and (ii) the maximum amount of such insurance
available for the related Mortgaged Property under the national
flood insurance program (assuming that the area in which such
Mortgaged Property is located is participating in such
program).

In the event that the Servicer shall obtain and
maintain a blanket policy with an insurer having a General Policy
Rating of A:X or better in Best’s Key Rating Guide (or such
other rating that is comparable to such rating) insuring against
hazard losses on all of the Mortgage Loans, it shall conclusively
be deemed to have satisfied its obligations as set forth in the
first two sentences of this Section 3.14, it being understood
and agreed that such policy may contain a deductible clause, in
which case the Servicer shall, in the event that there shall not
have been maintained on the related Mortgaged Property or REO
Property a policy complying with the first two sentences of this
Section 3.14, and there shall have been one or more losses
which would have been covered by such policy, deposit to the
Collection Account from its own funds the amount not otherwise
payable under the blanket policy because of such deductible
clause.  In connection with its activities as administrator
and servicer of the Mortgage Loans, the Servicer agrees to prepare
and present, on behalf of itself and the Trust, claims under any
such blanket policy in a timely fashion in accordance with the
terms of such policy.

(b)              
The Servicer shall obtain (to the extent commercially available)
and maintain fidelity bond and errors and omissions coverage
acceptable to Fannie Mae or Freddie Mac with respect to its
obligations under this Agreement, unless the Servicer or any of its
Affiliates has obtained a waiver of such Fannie Mae or Freddie Mac
requirements from either Fannie Mae or Freddie Mac.  The
Servicer shall provide the Trustee and the NIMS Insurer (upon such
party’s reasonable request) with copies of any such insurance
policies and fidelity bond.  The Servicer shall be deemed to
have complied with this provision if an Affiliate of the Servicer
has such errors and omissions and fidelity bond coverage and, by
the terms of such insurance policy or fidelity bond, the coverage
afforded thereunder extends to the Servicer.

Section 3.15         
Enforcement of Due‐On‐Sale Clauses; Assumption
Agreements

The Servicer shall, to the extent
it has knowledge of any conveyance or prospective conveyance of any
Mortgaged Property by any Mortgagor (whether by absolute conveyance
or by contract of sale, and whether or not the Mortgagor remains or
is to remain liable under the Mortgage Note and/or the Mortgage),
exercise its rights to accelerate the maturity of such Mortgage
Loan under the “due‐on‐sale” clause, if
any, applicable thereto; provided, however, that the
Servicer shall not be required to take such action if in its sole
business judgment the Servicer believes that the collections and
other recoveries in respect of such Mortgage Loans could reasonably
be expected to be maximized if the Mortgage Loan were not
accelerated, and the Servicer shall not exercise any such rights if
prohibited by law from doing so.  If the Servicer reasonably
believes it is unable under applicable law to enforce such
“due‐on‐sale” clause, or if any of the
other conditions set forth in the proviso to the preceding sentence
apply, the Servicer will enter into an assumption and modification
agreement from or with the person to whom such property has been
conveyed or is proposed to be conveyed, pursuant to which such
person becomes liable under the Mortgage Note and, to the extent
permitted by applicable state law, the Mortgagor remains liable
thereon.  The Servicer may also enter into a substitution of
liability agreement with such person, pursuant to which the
original Mortgagor is released from liability and such person is
substituted as the Mortgagor and becomes liable under the Mortgage
Note, provided that no such substitution shall be effective
unless such person satisfies the underwriting criteria of the
Servicer and has a credit risk rating at least equal to that of the original Mortgagor.  In connection with any
assumption, modification 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 under the circumstances) it shall have received
confirmation, in writing, of the continued effectiveness of any
applicable hazard insurance policy, or a new policy meeting the
requirements of this Section is obtained.  Any fee
collected by the Servicer in respect of any assumption,
modification 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
and the NIMS Insurer that any such substitution, modification or
assumption agreement has been completed by forwarding to the
Trustee (with a copy to the NIMS Insurer) the executed original of
such substitution, modification or assumption agreement, which
document shall be added to the related Mortgage File and shall, for
all purposes, be considered a part of such Mortgage File to the
same extent as all other documents and instruments constituting a
part thereof. 

Notwithstanding the foregoing paragraph or any
other provision of this Agreement, the Servicer shall not be deemed
to be in default, breach or any other violation of its obligations
hereunder by reason of any assumption of a Mortgage Loan by
operation of law or by the terms of the Mortgage Note or any
assumption which the Servicer may be restricted by law from
preventing, for any reason whatever.  For purposes of this
Section 3.15, the term “assumption” is deemed to
also include a sale of the Mortgaged Property subject to the
Mortgage that is not accompanied by an assumption or substitution
of liability agreement.

Section 3.16         
Realization Upon Defaulted Mortgage Loans.

(a)               
The Servicer shall use reasonable efforts consistent with the
servicing standard set forth in Section 3.01 to foreclose upon
or otherwise comparably convert the ownership of properties
securing such of the Mortgage Loans as come into and continue in
default and as to which no satisfactory arrangements can be made
for collection of delinquent payments pursuant to
Section 3.07.  The Servicer shall be responsible for all
costs and expenses incurred by it in any such proceedings; provided, however, that such costs and expenses will
constitute and be recoverable as Servicing Advances by the Servicer
as contemplated in Section 3.11 and Section 3.23. 
The foregoing is subject to the provision that, in any case in
which Mortgaged Property shall have suffered damage from an
Uninsured Cause, the Servicer shall not be required to expend its
own funds toward the restoration of such property unless it shall
determine in its sole and absolute discretion that such restoration
will increase the proceeds of liquidation of the related Mortgage
Loan after reimbursement to itself for such expenses.

(b)              
Notwithstanding the foregoing provisions of this Section 3.16
or any other provision of this Agreement, with respect to any
Mortgage Loan as to which the Servicer has received actual notice
of, or has actual knowledge of, the presence of any toxic or
hazardous substance on the related Mortgaged Property, the Servicer
shall not, on behalf of the Trust, either (i) obtain title to
such Mortgaged Property as a result of or in lieu of foreclosure or
otherwise or (ii) otherwise acquire possession of, or take any
other action with respect to, such Mortgaged Property, if, as a
result of any such action, the Trustee, the Trust, the Trust Fund
or the Certificateholders would be considered to hold title to, to
be a “mortgagee‐in‐possession” of, or to be
an “owner” or “operator” of such Mortgaged
Property within the meaning of the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended from
time to time, or any comparable law, unless the Servicer has also
previously determined, based on its reasonable judgment and a
report prepared by an Independent Person who regularly conducts
environmental audits using customary industry standards,
that:

(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.

Notwithstanding the foregoing, with respect to
the Mortgage Loans, if such environmental audit reveals, or if the
Servicer has knowledge or notice, that the Mortgaged Property
securing the Mortgage Loan contains such wastes or substances or is
within one mile of the site of such wastes or substances, the
Servicer shall not foreclose or accept a deed in lieu of
foreclosure without the prior written consent of the NIMS
Insurer.

The cost of the environmental audit report
contemplated by this Section 3.16 shall be advanced by the
Servicer, subject to the Servicer’s right to be reimbursed
therefor from the Collection Account as provided in
Section 3.11(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.  It is understood by the parties
hereto that any such advance will constitute a Servicing
Advance.

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 Section 3.11(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.  It is understood by the parties hereto that any such
advance will constitute a Servicing Advance.

(c)               
The Holder of the Class C Certificates (except if such Holder is
the Seller or any of its Affiliates) may at its option purchase
from REMIC I any Mortgage Loan or related REO Property that is 90
days or more delinquent or that has been otherwise in default for
90 days or more, which such Holder determines in good faith will
otherwise become subject to foreclosure proceedings (evidence of
such determination to be delivered in writing to the Trustee prior
to purchase), at a price equal to the Repurchase Price; provided, however, that the Holder of the Class C
Certificates shall purchase any such Mortgage Loans or related REO
Properties on the basis of delinquency or default, purchasing first
the Mortgage Loans or related REO Properties that became delinquent
or otherwise in default on an earlier date.  For the avoidance
of doubt, the Holder of the Class C Certificates in exercising its
right to purchase Mortgage Loans pursuant to this Section 3.16(c)
shall not be subject to any requirement of this Article III (other
than the requirements of this Section 3.16(c)).  In the event
the Holder of the Class C Certificates does not exercise its
option to purchase from REMIC I any such Mortgage Loan or related
REO Property prior to the expiration of such option, the NIMS
Insurer shall be entitled to purchase such Mortgage Loan or related
REO Property; provided, however, that the NIM Insurer
shall purchase any such Mortgage Loans or related REO Properties on
the basis of delinquency or default, purchasing first the Mortgage
Loans or related REO Properties that became delinquent or otherwise
in default on an earlier date.  The Repurchase Price for any
Mortgage Loan or related REO Property 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 Holder of the Class C
Certificates or the NIMS Insurer, as applicable, the related
Mortgage File and the Trustee, on behalf of the Trust, shall
execute and deliver such instruments of transfer or assignment, in
each case without recourse, as the Holder of the Class C
Certificates or the NIMS Insurer, as applicable, shall furnish and
as shall be necessary to vest in the Holder of the Class C
Certificates or the NIMS Insurer, as applicable, title to any
Mortgage Loan or related REO Property released pursuant
hereto.  For so long as the indenture trustee under the
Indenture is the Holder of the Class C Certificate, the holder (the
“Residual NIM Holder”) of the subordinate note,
the owner trust certificate or another instrument representing the
right to receive the proceeds of the trust estate securing payments
on the NIM Notes after all of the NIM Notes have been paid off
shall be deemed to be the “Holder of the Class C
Certificates” for purposes of this Section 3.16(c).  The
Trustee shall request from the Residual NIM Holder a certificate
substantially in the form of Exhibit F attached hereto.  The
Trustee may conclusively rely upon and shall be fully protected in
acting or refraining from acting based on such
certificate.

(d)              
Proceeds received (other than any prepayment premiums or charges
received) in connection with any Final Recovery Determination, as
well as any recovery resulting from a partial collection of
Insurance Proceeds, Liquidation Proceeds or Gross Subsequent
Recoveries, in respect of any Mortgage Loan, will be applied in the
following order of priority:  first, to reimburse the
Servicer or any Sub‐Servicer for any related unreimbursed
Servicing Advances and Advances, pursuant to
Section 3.11(a)(ii) or (a)(iii); second, to accrued and
unpaid interest on the Mortgage Loan, to the date of the Final
Recovery Determination, or to the Due Date prior to the
Distribution Date on which such amounts are to be distributed if
not in connection with a Final Recovery Determination; and third, as a recovery of principal of the Mortgage
Loan.  If the amount of the recovery so allocated to interest
is less than the full amount of accrued and unpaid interest due on
such Mortgage Loan, the amount of such recovery will be allocated
by the Servicer as follows:  first, to unpaid Servicing
Fees; and second, to the balance of the interest then due
and owing.  The portion of the recovery so allocated to unpaid
Servicing Fees shall be reimbursed to the Servicer or any
Sub‐Servicer pursuant to Section 3.11(a)(iii).

(e)               
The Servicer may (but is not obligated to) enter into a special
servicing agreement with an unaffiliated holder of a 100%
Percentage Interest of the most junior Class of the Mezzanine
Certificates, subject to each Rating Agency's acknowledgment that
the ratings of the Class A Certificates, the Mezzanine Certificates
and the Other NIM Notes and the initial shadow rating to the
Insured NIM Notes, without giving effect to any insurance policy
issued by the NIMS Insurer, in each case, in effect immediately
prior to the entering into such agreement would not be qualified,
downgraded or withdrawn and none of the Class A Certificates, the
Mezzanine Certificates or the NIM Notes would be placed on credit
review status (except for possible upgrading) as a result of such
agreement.  Any such agreement may contain provisions whereby
such Holder may (i) instruct the Servicer to commence or delay
foreclosure proceedings with respect to delinquent Mortgage Loans
and will contain provisions for the deposit of cash with the
Servicer by the Holder that would be available for distribution to
Certificateholders if Liquidation Proceeds are less than they
otherwise may have been had the Servicer acted in accordance with
its normal procedures, (ii) purchase delinquent Mortgage Loans from
the Trust Fund immediately prior to the commencement of foreclosure
proceedings at a price equal to the Repurchase Price, and/or (iii)
assume all of the servicing rights and obligations with respect to
delinquent Mortgage Loans so long as such Holder (A) meets the
requirements for a Sub-Servicer set forth in Section 3.02(a), (B)
will service such Mortgage Loans in accordance with this Agreement
and (C) the Servicer has the right to transfer such servicing
rights without the payment of any compensation to a
Sub-Servicer.

Section 3.17         
Trustee to Cooperate; Release of Mortgage Files.

(a)               
Upon the Payoff or scheduled maturity of any Mortgage Loan, the
Servicer shall cause such final payment to be deposited within 48
hours in the related Collection Account.  The Servicer shall
promptly notify the Trustee thereof by a certification (which
certification shall include a statement to the effect that all
amounts received in connection with such payment which are required
to be deposited in such account have been so deposited) of a
Servicing Officer and shall request delivery to it of the Mortgage
File; provided, however, that such certification shall not
be required if the Mortgage File is held by a Custodian which is
also the Servicer of the Mortgage Loan. Upon receipt of such
certification and request, the Trustee shall (or, if applicable,
shall cause the Custodian in accordance with the Custodial
Agreement to), on behalf of the Trust, not later than the fifth
succeeding Business Day, release, or cause to be released, the
related Mortgage File to the Servicer. With any such Payoff or
other final payment, the Servicer is authorized (i) to prepare for
and procure from the trustee or mortgagee under the Mortgage which
secured the Mortgage Note a deed of full reconveyance or other form
of satisfaction or assignment of Mortgage and endorsement of
Mortgage Note in connection with a refinancing covering the
Mortgaged Property, which satisfaction, endorsed Mortgage Note or
assigning document shall be delivered by the Servicer to the person
or persons entitled thereto, and (ii) with respect to any MERS
Loan, to cause the removal of such Mortgage Loan from registration
on the MERS® System. No expenses incurred in connection with
such satisfaction or assignment shall be payable to the Servicer by
the Trustee or from the Distribution Account, the related
Investment Account or the related Collection Account. From time to
time as appropriate for the servicing or foreclosure of any
Mortgage Loan, the Trustee shall (or, if applicable, shall cause
the Custodian in accordance with the Custodial Agreement to), on
behalf of the Trust, upon request of the Servicer and delivery to
it of a trust receipt signed by a Servicing Officer, release not
later than the fifth Business Day following the date of receipt of
such request and trust receipt the related Mortgage File to the
Servicer and shall execute such documents as shall be necessary to
the prosecution of any such proceedings. Such trust receipt shall
obligate the Servicer to return the Mortgage File to the Trustee
(or, if applicable, the Custodian) when the need therefor by the
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 herein above specified, the trust
receipt shall be released by the Trustee to the Servicer.

(b)              
If any Mortgage Loan is repurchased, substituted or purchased in
accordance with Section 2.08, Section 3.16(c) or Section 9.01, the
Trustee, on behalf of the Trust, shall execute and deliver the
Mortgage Loan Assignment Agreement in the form of Exhibit G with
respect to such Mortgage Loan, transferring such Mortgage Loan to
the Person entitled thereto pursuant to such Section 2.08, Section
3.16(c) or Section 9.01, as applicable.

Section 3.18         
Servicing Compensation

As compensation for the activities
of the Servicer hereunder, the Servicer shall be entitled to the
Servicing Fee with respect to each Mortgage Loan payable solely
from payments of interest in respect of such Mortgage Loan, subject
to Section 3.24.  In addition, the Servicer shall be
entitled to recover unpaid Servicing Fees out of Late Collections,
Insurance Proceeds, Liquidation Proceeds or Gross Subsequent
Recoveries to the extent permitted by Section 3.11(a)(iii) and
out of amounts derived from the operation and sale of an REO
Property to the extent permitted by Section 3.23.  The
right to receive the Servicing Fee may not be transferred in whole
or in part except in connection with the transfer of all of the
Servicer’s responsibilities and obligations under this
Agreement; provided, however, that the Servicer may
pay from the Servicing Fee any amounts due to a Sub‐Servicer
pursuant to a Sub‐Servicing Agreement entered into under
Section 3.02.

Additional servicing compensation in the form of
Prepayment Interest Excess, prepayment premiums or charges in
connection with voluntary Principal Prepayments in part, assumption
or modification fees, late payment charges, NSF fees, prepayment
premiums and charges paid by the Mortgagers upon voluntary partial
prepayment of Mortgage Loans (other than Assigned Prepayment
Charges), reconveyance fees and other similar fees and charges
shall be retained by the Servicer only to the extent such fees or
charges are received by the Servicer.  The Servicer shall also
be entitled pursuant to Section 3.11(a)(iv) to withdraw from
the Collection Account, and pursuant to Section 3.23(b) to
withdraw from any REO Account, as additional servicing
compensation, interest or other income earned on deposits therein,
subject to Section 3.12.  The Servicer shall be required
to pay all expenses incurred by it in connection with its servicing
activities hereunder (including premiums for the insurance required
by Section 3.14, to the extent such premiums are not paid by
the related Mortgagors or by a Sub‐Servicer, it being
understood however, that payment of such premiums by the Servicer
shall constitute Servicing Advances and servicing compensation of
each Sub‐Servicer, and to the extent provided herein and in
Section 8.05, the fees of the Trustee) and shall not be
entitled to reimbursement therefor except as specifically provided
herein.

Section 3.19         
Reports to the Trustee; Collection Account Statements

Not later than fifteen days after
each Distribution Date, the Servicer shall forward to the Trustee,
the NIMS Insurer and the Company a statement prepared by the
Servicer 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 of each
category of deposit specified in Section 3.10(a) and each
category of withdrawal specified in Section 3.11.  Such
statement may be in the form of the then current Fannie Mae Monthly
Accounting Report for its Guaranteed Mortgage Pass‐Through
Program with appropriate additions and changes, and shall also
include information as to the aggregate of the outstanding
principal balances of all of the Mortgage Loans as of the last day
of the calendar month immediately preceding such Distribution
Date.  Copies of such statement shall be provided by the
Trustee to any Certificateholder and to any Person identified to
the Trustee as a prospective transferee of a Certificate, upon
request at the expense of the requesting party, provided
such statement is delivered by the Servicer to the Trustee.

Section 3.20         
Reports on Assessment of Compliance with Servicing Criteria and
Servicing Compliance Statements

The Servicer shall, on or before the 90th
day following each December 31 after the Cut-off Date, deliver to
the Company and the Trustee, and, if required, file with the
Commission as an exhibit to a Report on Form 10-K filed on behalf
of the Trust, the following documents:

(a)        a
report on its assessment of compliance during the preceding
calendar year with all applicable servicing criteria set forth in
Item 1122(d) of Regulation AB with respect to asset-backed
securities transactions taken as a whole involving the Servicer
that are backed by assets of the same type as the Mortgage Loans,
as required by Item 1122 of Regulation AB;

(b)       
with respect to the assessment report described in clause (a)
above, a report by a registered public accounting firm that attests
to, and reports on, the assessment made by the Servicer, as
required by Item 1122 of Regulation AB;

(c)       
with respect to each subservicer or other agent or independent
contractor through which the Servicer performs any of its servicing
responsibilities hereunder and, cause the Trustee to deliver with
respect to each Custodian, in each case, if determined by the
Servicer to be a party participating in the servicing function
within the meaning of Item 1122 of Regulation AB, (i) a report
prepared by such party on its assessment of compliance during the
preceding calendar year with all applicable servicing criteria set
forth in Item 1122(d) of Regulation AB with respect to asset-backed
securities transactions taken as a whole involving such party that
are backed by assets of the same type as the Mortgage Loans and
(ii) a report by a registered public accounting firm that attests
to, and reports on, such assessment, each as required by Item 1122
of Regulation AB;

(d)        the
assessment report and public accounting firm’s attestation
report delivered by the Trustee under Section 8.18 (if required to
be delivered by the Trustee under such Section 8.18);
and

(e)        a
statement of compliance from the Servicer, and a similar statement
from each subservicer or other agent or independent contractor
through which the Servicer performs any of its servicing
responsibilities hereunder and, cause the Trustee to deliver such
statement from each Custodian, in each case, if determined by the
Servicer to meet the criteria in Item 1108(a)(2)(i) through (iii)
of Regulation AB, as required by Item 1123 of Regulation AB, signed
by an authorized officer, to the effect that:

(i)        
a review of the Servicer’s (or, in the case of a statement
from any such other party, such other party’s) activities
during the preceding calendar year (or the applicable portion
thereof in the case of the initial statement) and of its
performance under this Agreement (or the servicing agreement
applicable to such other party) has been made under such
officer’s supervision; and

(ii)        to
the best of such officer’s knowledge, based on such review,
the Servicer (or such other party) has fulfilled all of its
obligations under this Agreement (or the servicing agreement
applicable to such other party) in all material respects throughout
the preceding calendar year (or the applicable portion thereof) or,
if there has been a failure to fulfill any such obligation in any
material respect, specifying each such failure known to such
officer and the nature and status thereof;

provided, however,
that the Servicer shall not be required to deliver the documents
described in clauses (c) and (d), and in clause (e) with respect to
any subservicer or other agent or independent contractor, or any
Custodian, if such reports are not required to be filed with the
Commission as an exhibit to a Report on Form 10-K.

Copies of such reports and statements shall be
provided by the Servicer, or by the Trustee (solely to the extent
that such copies are available to the Trustee) at the expense of
the Servicer, to Certificateholders upon request.

Section 3.21         
Access to Certain Documentation and Information Regarding the
Mortgage Loans

In the event that the Certificates are
legal for investment by federally-insured savings associations, the Servicer shall provide to the OTS, the FDIC and the supervisory
agents and examiners of the OTS and the FDIC access to the
documentation regarding the related Mortgage Loans required by
applicable regulations of the OTS or the FDIC, as applicable, and
shall in any event provide such access to the documentation
regarding such Mortgage Loans to the Trustee and its
representatives, such access being afforded without charge, but
only upon reasonable request and during normal business hours at
the offices of the Servicer designated by it.

Section 3.22         
Reserve Fund

No later than the Closing Date,
the Trustee, on behalf of the Certificateholders, shall establish
and maintain with itself a separate, segregated non-interest
bearing trust account titled, “Reserve Fund, LaSalle Bank
National Association, as Trustee, in trust for holders of
Washington Mutual Asset-Backed Certificates WMABS, Series
2007-HE2.”  The Trustee shall account for the right to
receive payments from the Reserve Fund as property that the Trustee
holds separate and apart from the REMIC Regular Interests.

(a)               
The following amounts shall be deposited into the Reserve
Fund:

(i)                 
On the Closing Date, the Company shall deposit, or cause to be
deposited, into the Reserve Fund $1,000;

(ii)               
On each Distribution Date as to which there is a Net WAC Rate
Carryover Amount payable to any of the Class A Certificates or the
Mezzanine Certificates, the Trustee has been directed by the
Holders of the Class C Certificates to, and therefore shall,
deposit into the Reserve Fund the amounts described in Section
4.05; and

(iii)              
On each Distribution Date as to which there are no Net WAC Rate
Carryover Amounts, the Trustee shall deposit into the Reserve Fund
on behalf of the Holders of the Class C Certificates, from amounts
otherwise distributable to such Class C Certificates, 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. 

(b)              
The Reserve Fund shall be treated as an “outside reserve
fund” under applicable Treasury regulations and shall not be
part of any REMIC created hereunder.  For federal and state
income tax purposes, the Holders of the Class C Certificates shall
be deemed to be the owners of the Reserve Fund and all amounts
deposited into the Reserve Fund (other than the initial deposit
therein of $1,000) shall be treated as amounts distributed by REMIC
III to REMIC IV in respect of the Class C Interest, and then
distributed by REMIC IV to the Holders of the Class C
Certificates.  For federal and state income tax purposes,
payments in respect of the Class A Certificates and 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 860G(a)(1).

(c)               
By accepting a Class C Certificate, each Holder of a Class C
Certificate shall be deemed to have directed the Trustee to, and
the Trustee shall pursuant to such direction, deposit into the
Reserve Fund the amounts described in Section 3.22(a)(ii) and
(a)(iii) above on each Distribution Date.  By accepting a
Class C Certificate, each Holder of a Class C Certificate further
agrees that such direction is given for good and valuable
consideration, the receipt and sufficiency of which is acknowledged
by such acceptance.

(d)              
At the direction of the Holders of a majority in Percentage
Interest in the Class C Certificates, the Trustee shall direct any
depository institution maintaining the Reserve Fund to invest the
funds in such account in one or more Eligible Investments bearing
interest or sold at a discount, and maturing, unless payable on
demand, (i) no later than the Business Day immediately
preceding the date on which such funds are required to be withdrawn
from such account pursuant to this Agreement, if a Person other
than the Trustee 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 Trustee or an Affiliate manages or advises
such investment.  If no investment direction of the Holders of
a majority in Percentage Interest in the Class C Certificates with
respect to the Reserve Fund is received by the Trustee, the Trustee
shall invest the funds in the Reserve Fund in Eligible Investments
managed by the Trustee or an Affiliate of the kind described in
clauses (iii) or (vii) of the definition of Eligible
Investments.  All income and gain earned upon such investment
shall be deposited into the Reserve Fund. 

(e)               
For federal tax return and information reporting, the right of the
Certificateholders to receive payment on account of the Class A
Certificates and the Mezzanine Certificates from the Reserve Fund
in respect of any Net WAC Rate Carryover Amount shall be assigned a
value of zero.

Section 3.23         
Title, Management and Disposition of REO Property.

(a)               
The deed or certificate of sale of any REO Property shall be taken
in the name of the Trustee, or its nominee, on behalf of the
Trust.  The Servicer, on behalf of REMIC I (and on behalf of
the Trust), shall sell any REO Property as soon as practicable and,
in any event, shall either sell any REO Property before the close
of the third taxable year after the year REMIC I acquires ownership
of such REO Property for purposes of Section 860G(a)(8) of the
Code or request from the Internal Revenue Service, no later than 60
days before the day on which the three‐year grace period
would otherwise expire, an extension of the three‐year grace
period, unless the Servicer shall have delivered to the Trustee,
the NIMS Insurer and the Company an Opinion of Counsel, addressed
to the Trustee, the NIMS Insurer and the Company, to the effect
that the holding by REMIC I of such REO Property subsequent to
three years after its acquisition will not result in the imposition
on any Trust REMIC of taxes on “prohibited
transactions” thereof, as defined in Section 860F of the
Code, or cause any Trust REMIC to fail to qualify as a REMIC under
Federal law at any time that any Certificates are
outstanding.  If an extension of the three‐year period
is granted, the Servicer shall sell the related REO Property no
later than 60 days prior to the expiration of such extension
period.  The Servicer shall manage, conserve, protect and
operate each REO Property for the Certificateholders solely for the
purpose of its prompt disposition and sale in a manner which does
not cause such REO Property to fail to qualify as
“foreclosure property” within the meaning of
Section 860G(a)(8) of the Code or result in the receipt by any
Trust REMIC of any “income from non‐permitted
assets” within the meaning of Section 860F(a)(2)(B) of
the Code, or any “net income from foreclosure property”
which is subject to taxation under the REMIC Provisions.

(b)              
The Servicer shall segregate and hold all funds collected and
received in connection with the operation of any REO Property
separate and apart from its own funds and general assets and shall
establish and maintain, or cause to be established and maintained,
with respect to REO Properties an account held in trust for the
Trust (the “REO Account”), which shall be with
an Eligible Institution.  The Servicer may allow the
Collection Account to serve as the REO Account, subject to separate
ledgers for each REO Property.  The Servicer may retain or
withdraw any interest income paid on funds deposited in the REO
Account.

(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 as are
consistent with the manner in which the Servicer manages and
operates similar property owned by the Servicer or any of its
Affiliates, all on such terms and for such period as the Servicer
deems to be in the best interests of Certificateholders.  In
connection therewith, the Servicer shall deposit, or cause to be
deposited in the clearing account (which account must be with an
Eligible Institution) in which it customarily deposits payments and
collections on mortgage loans in connection with its mortgage loan
servicing activities on a daily basis, and in no event more than
one Business Day after the Servicer’s receipt thereof and
shall thereafter deposit in the REO Account, in no event more than
two Business Days after the deposit of such funds into the clearing
account, all revenues received by it with respect to an REO
Property and shall withdraw therefrom funds necessary for the
proper operation, management and maintenance of such REO Property
including, without limitation:

(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 as Servicing Advances 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 such
Servicing Advance would not constitute a Nonrecoverable
Advance.

Notwithstanding the
foregoing, neither the Servicer nor the Trustee shall:

(i)        
authorize the Trust to enter into, renew or extend any New Lease
with respect to any REO Property, if the New Lease by its terms
will give rise to any income that does not constitute Rents from
Real Property;

(ii)       
authorize any amount to be received or accrued under any New Lease
other than amounts that will constitute Rents from Real
Property;

(iii)      
authorize any construction on any REO Property, other than
construction permitted under Section 856(e)(4)(B) of the Code;
or

(iv)      
authorize any Person to Directly Operate any REO Property on any
date more than 90 days after its date of acquisition by the
Trust;

unless, in any such case, the
Servicer has obtained an Opinion of Counsel (the cost of which
shall constitute a Servicing Advance), a copy of which shall be
provided to the NIMS Insurer 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:

(i)        
the terms and conditions of any such contract shall not be
inconsistent herewith;

(ii)       
any such contract shall require, or shall be administered to
require, that the Independent Contractor pay all costs and expenses
incurred in connection with the operation and management of such
REO Property, including those listed above, and remit all related
revenues (net of such costs and expenses) to the Servicer as soon
as practicable, but in no event later than thirty days following
the receipt thereof by such Independent Contractor;

(iii)       none of
the provisions of this Section 3.23(c) relating to any such
contract or to actions taken through any such Independent
Contractor shall be deemed to relieve the Servicer of any of its
duties and obligations to the Trustee on behalf of the
Certificateholders with respect to the operation and management of
any such REO Property; and

(iv)       the
Servicer shall be obligated with respect thereto to the same extent
as if it alone were performing all duties and obligations in
connection with the operation and management of such REO
Property.

The Servicer shall be entitled to enter into any
agreement with any Independent Contractor performing services for
it related to its duties and obligations hereunder for
indemnification of the Servicer by such Independent Contractor, and
nothing in this Agreement shall be deemed to limit or modify such
indemnification.  The Servicer shall be solely liable for all
fees owed by it to any such Independent Contractor, irrespective of
whether the Servicer’s compensation pursuant to
Section 3.18 is sufficient to pay such fees; provided, however, that to the extent that any payments made by such
Independent Contractor would constitute Servicing Advances if made
by the Servicer, such amounts shall be reimbursable as Servicing
Advances made by the Servicer.

(d)              
In addition to the withdrawals permitted under
Section 3.23(c), the Servicer may from time to time make
withdrawals from the REO Account for any REO Property: 
(i) to pay itself or any Sub‐Servicer unpaid Servicing
Fees in respect of the related Mortgage Loan; and (ii) to
reimburse itself or any Sub‐Servicer for unreimbursed
Servicing Advances and Advances made in respect of such REO
Property or the related Mortgage Loan.  On the Servicer
Remittance Date, the Servicer shall withdraw from each REO Account
maintained by it and deposit into the Distribution Account in
accordance with Section 3.10(d)(ii), for distribution on the
related Distribution Date in accordance with Article IV, the income
from the related REO Property received during the prior calendar
month, net of any withdrawals made pursuant to Section 3.23(c)
or this Section 3.23(d).

(e)               
Subject to the time constraints set forth in Section 3.23(a),
each REO Disposition shall be carried out by the Servicer at such
price and upon such terms and conditions as the Servicer shall deem
necessary or advisable, as shall be normal and usual in its general
servicing activities for similar properties.

(f)                
The proceeds from the REO Disposition, net of any amount required
by law to be remitted to the Mortgagor under the related Mortgage
Loan and net of any payment or reimbursement to the Servicer or any
Sub‐Servicer as provided above, shall be deposited in the
Distribution Account in accordance with Section 3.10(d)(ii) on
the Servicer Remittance Date in the month following the receipt
thereof for distribution on the related Distribution Date in
accordance with Article IV.  Any REO Disposition shall be for
cash only (unless changes in the REMIC Provisions made subsequent
to the Startup Day allow a sale for other consideration).

(g)               
The Servicer shall file information returns with respect to the
receipt of mortgage interest received in a trade or business,
reports of foreclosures and abandonments of any Mortgaged Property
and cancellation of indebtedness income with respect to any
Mortgaged Property as required by Sections 6050H, 6050J and 6050P
of the Code, respectively.  Such reports shall be in form and
substance sufficient to meet the reporting requirements imposed by
such Sections 6050H, 6050J and 6050P of the Code.

Section 3.24         
Obligations of the Servicer in Respect of Prepayment Interest
Shortfalls

The Servicer shall deliver to the
Trustee for deposit into the Distribution Account on or before 3:00
p.m. New York time on the Servicer Remittance Date from its own
funds an amount (“Compensating Interest”) equal
to the lesser of (i) the aggregate of the Prepayment Interest
Shortfalls for the related Distribution Date resulting solely from
Principal Prepayments during the related Prepayment Period and
(ii) the amount of its aggregate Servicing Fee for the most
recently ended calendar month.

Section 3.25         
Obligations of the Servicer in Respect of Mortgage Rates and
Monthly Payments

In the event that a shortfall in
any collection on or liability with respect to any Mortgage Loan
results from or is attributable to adjustments to Mortgage Rates,
Monthly Payments or Stated Principal Balances that were made by the Servicer in a manner not consistent with the terms of the related
Mortgage Note and this Agreement, the Servicer, upon discovery or
receipt of notice thereof, immediately shall deliver to the Trustee
for deposit in the Distribution Account from its own funds the
amount of any such shortfall and shall indemnify and hold harmless
the Trust, the Trustee, the Company and any successor servicer in
respect of any such liability.  Such indemnities shall survive
the termination or discharge of this Agreement. 
Notwithstanding the foregoing, this Section 3.25 shall not
limit the ability of the Servicer to seek recovery of any such
amounts from the related Mortgagor under the terms of the related
Mortgage Note, as permitted by law and shall not be an expense of
the Trust.

Section 3.26         
[Reserved].

Section 3.27         
Swap Agreement

The Company hereby directs the
Supplemental Interest Trust Trustee to execute and deliver on
behalf of the Supplemental Interest Trust the Swap Agreement in the
form presented to it by the Company and authorizes the Supplemental
Interest Trust Trustee to and such Trustee is hereby directed to
perform on behalf of the Supplemental Interest Trust the
obligations of the Supplemental Interest Trust Trustee and
Supplemental Interest Trust thereunder on behalf of the
Supplemental Interest Trust in accordance with the terms of the
Swap Agreement.  The Company hereby authorizes and directs the
Supplemental Interest Trust Trustee to ratify on behalf of the
Supplemental Interest Trust, as the Supplemental Interest
Trust’s own actions, the terms agreed to by the Company (or
any of its Affiliates) in relation to the Swap Agreement, as
reflected in the Swap Agreement, and the Supplemental Interest
Trust Trustee on behalf of the Supplemental Interest Trust hereby
so ratifies the Swap Agreement.  The Supplemental Interest
Trust Trustee shall amend the Swap Agreement in accordance with its
terms and as requested by a party to the Swap Agreement to cure any
ambiguity in or correct or supplement any provision of the Swap
Agreement, provided, however, such amendment shall
comply with the terms and conditions of the Swap Agreement. 
On the Closing Date, the Supplemental Interest Trust Trustee shall
enter into the Swap Agreement, on behalf of the Supplemental
Interest Trust, with the Swap Counterparty. The Swap Agreement
shall be part of the Trust Fund but not part of any REMIC. The Swap
Counterparty is the calculation agent under the Swap Agreement and
shall calculate all amounts pursuant to the Swap Agreement and
notify the Supplemental Interest Trust Trustee of all such
amounts.

Section 3.28         
Replacement Swap Agreement.

(a)               
The Supplemental Interest Trust Trustee shall, at the direction of
the NIMS Insurer or, with the consent of the NIMS Insurer, at the
direction of the Company, in the event the Swap Agreement is
terminated as a result of the designation by either party thereto
of an Early Termination Date, enter into a replacement swap
agreement with a replacement counterparty designated by the Company
or the NIMS Insurer, as applicable.

(b)              
Notwithstanding anything to the contrary herein, any Swap
Termination Payment received by the Supplemental Interest Trust
Trustee shall be deposited in the Supplemental Interest Account and
shall be used to make any upfront payment required under a
replacement swap agreement and any upfront payment (the
“Replacement Payment”) received by the Supplemental
Interest Trust Trustee from the counterparty to a replacement swap
agreement shall be used to pay any Swap Termination Payment owed to
the Swap Counterparty that is being replaced.  The Swap
Counterparty that is being replaced shall have first priority as to
such Replacement Payments versus all other creditors of the
Supplemental Interest Trust Trustee, and the Supplemental Interest
Trustee on behalf of the Supplemental Interest Trust Trustee shall
pay from the Replacement Payments received the lesser of (x) the
Replacement Payments so received and (y) any Swap Termination
Payment owed to the Swap Counterparty (to the extent not already
paid by the Supplemental Interest Trust Trustee) that is being
replaced immediately upon receipt.

(c)               
Notwithstanding anything contained herein, in the event that a
replacement swap agreement cannot be obtained within 30 days after
receipt by the Supplemental Interest Trust Trustee of the Swap
Termination Payment paid by the terminated Swap Counterparty, the
Supplemental Interest Trust Trustee shall on each Distribution
Date, withdraw from the Supplemental Interest Account, an amount
equal to the Net Counterparty Payment, if any, that would have been
paid to the Supplemental Interest Trust Trustee by the original
Swap Counterparty (computed in accordance with the terms of the
original Swap Agreement) and distribute such amount in accordance
with Section 4.05(f)(ii) of this Agreement.

(d)              
If a downgrade event (described in Part 5(b) of Schedule to the
Swap Agreement) occurs, the Supplemental Interest Trust Trustee
shall, promptly after a Responsible Officer of the Supplemental
Interest Trust Trustee has received actual knowledge or written
notice of the reduction or withdrawal of the rating (it being
understood that the Supplemental Interest Trust Trustee has no duty
to monitor the ratings of the Swap Counterparty), request the Swap
Counterparty to take actions required to be taken by the Swap
Counterparty by Part 5(b) of Schedule to the Swap Agreement.

Section 3.29         
Assigned Prepayment Charges.

(a)               
Notwithstanding anything in this Agreement to the contrary, the
Servicer may not waive any Prepayment Charges or portion thereof
unless such waiver is related to a default or a reasonably
foreseeable default and would maximize recovery of total proceeds
taking into account the value of such Prepayment Charge and related
Mortgage Loan and doing so is standard and customary in servicing
mortgage loans similar to the Mortgage Loans (including any waiver
of a Prepayment Charge in connection with a refinancing of a
Mortgage Loan that is related to a default or a reasonably
foreseeable default).  Notwithstanding the foregoing, the
Servicer may waive any Prepayment Charge or part of a Prepayment
Charge in any instance when the mortgage debt is accelerated as a
result of the Mortgagor’s default in making the Mortgage Loan
payments required by the terms of the related Mortgage
Note. 

(b)        If
the Servicer has waived all or a portion of a Prepayment Charge in
compliance with Section 3.29(a), then the Class P Certificates
shall not be entitled to the amounts waived.

(c)       
Upon discovery by the Servicer, the Company or the Trustee (in the
case of the Trustee, having actual knowledge thereof) of a breach
of the provisions of Section 3.29(a), which materially and
adversely affects the Holders of the Class P Certificates, the
party discovering such breach shall give prompt written notice to
the other parties and the NIMS Insurer.  Within 60 days of the
earlier of discovery by the Servicer, the Company or the Trustee,
as applicable, of such breach, the Servicer shall cure such breach
in all material respects or, if the breach cannot be cured, shall
deposit, or cause to be deposited, to the Collection Account the
amount of each impermissibly waived Prepayment Charge (less any
amount collected from the Mortgagor in respect to such Prepayment
Charge); provided, however, that the Servicer shall
not be obligated to deposit the amount of any impermissibly waived
Prepayment Charge if the failure to collect such amount is the
direct result of inaccurate or incomplete information related to
the Prepayment Charge in effect at such time.  Payments by the
Servicer into the Collection Account pursuant to this paragraph
shall be made on the later of (i) the Servicer Remittance Date next
following the earlier of discovery by the Servicer or receipt of
notice by the Servicer of the breach of the related representation,
warranty or covenant of the Servicer set forth in Section 3.29(a)
which materially and adversely affects the interests of the Holders
of the Class P Certificates to any Prepayment Charge and (ii) the
Servicer Remittance Date next following the Prepayment Period in
which such breach occurred.

Upon discovery by the Servicer, the Company or
the Trustee (in the case of the Trustee, having actual knowledge
thereof) of a breach by the Seller of any of the representations
and warranties identified in Section 3.3(c) of the Mortgage Loan
Purchase Agreement, which materially and adversely affects the
Holders of the Class P Certificates, the party discovering such
breach shall give prompt written notice to the other parties and
the NIMS Insurer.  The Servicer shall promptly notify the
Seller of such breach and take appropriate steps on behalf of the
Trust to enforce the Seller’s obligation, pursuant to Section
3.3(c) of the Mortgage Loan Purchase Agreement, to pay to the Trust
the amount of each Prepayment Charge that would have been collected
had each such representation and warranty referred to in this
paragraph been true (less any amount collected from the related
Mortgagor with respect to such Prepayment Charge). The Servicer
shall deposit, or cause to be deposited, to the Collection Account
within two Business Days of receipt the amounts so received from
the Seller.

ARTICLE
IV

Flow of Funds

Section 4.01         
Distributions to Holders of REMIC I Regular Interests and Class R-1
Residual Interest

On each Distribution
Date, the Trustee (or any duly appointed paying agent) on behalf of
the Trust (i) shall be deemed to have distributed from the
Distribution Account the REMIC I Distribution Amount to the Holders
of the REMIC I Regular Interests, and to have deposited such
amounts for their benefit into the Distribution Account and (ii)
from the Distribution Account shall distribute to the Class R
Certificateholders, in accordance with the written statement
received from the Servicer pursuant to Section 4.02(b), the amounts
to be distributed to the Holders of the Class R-1 Residual Interest
pursuant to the definition of “REMIC I Distribution
Amount” for such Distribution Date.  Amounts distributed
pursuant to clause (ii) above shall be distributed by wire transfer
in immediately REMIC I Available Distribution Amount for the
account of each Class R Certificateholder, or by any other means of
payment acceptable to each Class R Certificateholder of record on
the immediately preceding Record Date (other than as provided in
Section 9.01 respecting the final distribution), as specified by
each such Certificateholder and at the address of such Holder
appearing in the Certificate Register.  Notwithstanding any
other provision of this Agreement, no actual distributions pursuant
to clause (i) of this Section 4.01 shall be made on account of the
deemed distributions described in this paragraph except in the
event of a liquidation of REMIC VI, REMIC V, REMIC IV, REMIC III
and REMIC II and not REMIC I.

Section 4.02         
Advances; Remittance Reports.

(a)               
On or before the 18th day of each calendar month commencing in
March 2007, or if such 18th day is not a Business Day, the Business
Day immediately following such 18th day, but in no event later than
such date which would allow the Trustee to submit a claim to the
NIMS Insurer under the Indenture, the Servicer shall deliver to the
NIMS Insurer and the Trustee by telecopy or electronic mail (or by
such other means as the Servicer, the NIMS Insurer and the Trustee,
as the case may be, may agree from time to time) a Remittance
Report with respect to the related Distribution Date.  Not
later than each Servicer Remittance Date (or, in the case of
certain information, as agreed between the Trustee and the
Servicer, not later than four Business Days after the end of each
Due Period), the Servicer shall deliver or cause to be delivered to
the Trustee (in the form mutually agreed to by the Servicer and the
Trustee) in addition to the information provided on the Remittance
Report, such other information reasonably available to it with
respect to the Mortgage Loans as the Trustee may reasonably require
to perform the calculations necessary to make the distributions
contemplated by Section 4.05 and to prepare the statements to
Certificateholders contemplated by Section 4.06.  The
Trustee shall not be responsible to recompute, recalculate or
verify any information provided to it by the Servicer.

(b)              
The amount of Advances to be made by the Servicer for any
Distribution Date shall equal, subject to Section 4.03, the
sum of (i) the aggregate amount of Monthly Payments (with each
interest portion thereof net of the related Servicing Fee), due on
the related Due Date in respect of the Mortgage Loans (other than
with respect to any Balloon Loan with a delinquent Balloon Payment
as described in clause (iii) below), which Monthly Payments were
delinquent as of the close of business on the related Determination
Date, plus (ii) with respect to each REO Property (other than
with respect to any REO Property relating to a Balloon Loan with a
delinquent Balloon Payment as described in clause (iv) below),
which REO Property was acquired during or prior to the related
Prepayment Period and as to which such REO Property an REO
Disposition did not occur during the related Prepayment Period, an
amount equal to the excess, if any, of the Monthly Payments (with
each interest portion thereof net of the related Servicing Fee)
that would have been due on the related Due Date in respect of the
related Mortgage Loans, over the net income from such REO Property
transferred to the Distribution Account pursuant to
Section 3.23 for distribution on such Distribution Date, plus
(iii) with respect to each Balloon Loan with a delinquent Balloon
Payment, an amount equal to the assumed monthly principal and
interest payment (with each interest portion thereof net of the
related Servicing Fee) that would have been due on the related Due
Date based on the original principal amortization schedule for such
Balloon Loan assuming such Mortgage Loan was not a Balloon Loan,
plus (iv) with respect to each REO Property relating to a Balloon
Loan with a delinquent Balloon Payment, which REO Property was
acquired during or prior to the related Prepayment Period and as to
which REO Property an REO Disposition did not occur during the
related Prepayment Period, an amount equal to the excess, if any,
of the assumed monthly principal and interest payment (with each
interest portion thereof net of the related Servicing Fee) that
would have been due on the related Due Date based on the original
principal amortization schedule for the related Balloon Loan
assuming such Mortgage Loan was not a Balloon Loan, over the net
income from such REO Property transferred to the Distribution
Account pursuant to Section 3.23 for distribution on such
Distribution Date.

On or before 3:00 p.m. New York time on the
Servicer Remittance Date, the Servicer shall remit REMIC I
Available Distribution Amount in immediately available funds to the
Trustee for deposit in the Distribution Account an amount equal to
the aggregate amount of Advances, if any, to be made in respect of
the Mortgage Loans and REO Properties for the related Distribution
Date either (i) from its own funds or (ii) from the
Collection Account, to the extent of funds held therein for future
distribution (in which case, it will cause to be made an
appropriate entry in the records of Collection Account that amounts
held for future distribution have been, as permitted by this
Section 4.03, used by the Servicer in discharge of any such
Advance) or (iii) in the form of any combination of
(i) and (ii) aggregating the total amount of Advances to
be made by the Servicer with respect to the Mortgage Loans and REO
Properties.  Any amounts held for future distribution and so
used shall be appropriately reflected in the Servicer’s
records and replaced by the Servicer by deposit in the Collection
Account on or before any future Servicer Remittance Date to the
extent that the REMIC I Available Distribution Amount for the
related Distribution Date (determined without regard to Advances to
be made on the Servicer Remittance Date) shall be less than the
total amount that would be distributed to the Classes of
Certificateholders pursuant to Section 4.01 on such
Distribution Date if such amounts held for future distributions had
not been so used to make Advances.  The Trustee will provide
notice to the NIMS Insurer and the Servicer by telecopy by the
close of business on any Servicer Remittance Date in the event that
the amount remitted by the Servicer to the Trustee on such date is
less than the Advances required to be made by the Servicer for the
related Distribution Date. 

(c)               
The obligation of the Servicer to make such Advances is mandatory,
notwithstanding any other provision of this Agreement but subject
to Section 4.03, and, with respect to any Mortgage Loan, shall
continue until the payment of the Mortgage Loan in full or the
recovery of all Liquidation Proceeds thereon.

Section 4.03         
Nonrecoverable Advances

Notwithstanding anything herein to the contrary, no Advance or Servicing Advance shall be required to be
made hereunder by the Servicer if such Advance or Servicing Advance
would, if made, constitute a Nonrecoverable Advance.  The
determination by the Servicer that it has made a Nonrecoverable
Advance or that any proposed Advance or Servicing Advance, if made,
would constitute a Nonrecoverable Advance, shall be evidenced by an
Officer’s Certificate of the Servicer delivered to the NIMS
Insurer, the Company and the Trustee.

Section 4.04         
Distributions to Holders of REMIC II Regular Interests and Class
R-2 Residual Interest

On each Distribution Date, the Trustee
(or any duly appointed paying agent) on behalf of the Trust (i)
shall be deemed to have distributed from the Distribution Account
the REMIC II Distribution Amount to the Holders of the REMIC II
Regular Interests, and to have deposited such amounts for their
benefit into the Distribution Account and (ii) from the
Distribution Account shall distribute to the Class R
Certificateholders, in accordance with the written statement
received from the Servicer pursuant to Section 4.02(b), the amounts
to be distributed to the Holders of the Class R-2 Residual Interest
pursuant to the definition of “REMIC II Distribution
Amount” for such Distribution Date.  Amounts distributed
pursuant to clause (ii) above shall be distributed by wire transfer
in immediately available funds for the account of each Class R
Certificateholder, or by any other means of payment acceptable to
each Class R Certificateholder of record on the immediately
preceding Record Date (other than as provided in Section 9.01
respecting the final distribution), as specified by each such
Certificateholder and at the address of such Holder appearing in
the Certificate Register.  Notwithstanding any other provision
of this Agreement, no actual distributions pursuant to clause (i)
of this Section 4.04 shall be made on account of the deemed
distributions described in this paragraph except in the event of a
liquidation of REMIC V, REMIC IV and REMIC III and not REMIC
II.

Section 4.05         
Distributions to Holders of Certificates, REMIC III Regular
Interests, and Class R-3 Interests.

(a)               
Distributions to Certificateholders, Deemed Distributions to
Holders of REMIC III Regular Interests.   Except as
provided in Section 4.05(d), on each Distribution Date, the Trustee
(or any duly appointed paying agent) on behalf of the Trust (i)
shall be deemed to have distributed from the Distribution Account
the REMIC III Distribution Amount to the Holders of the REMIC III
Regular Interests and (ii) shall distribute to the Certificates
(other than the Class C and Class P) the amounts to be distributed
to the Holders of such Certificates pursuant to the definition of
“REMIC III Distribution Amount” for such Distribution
Date.  Notwithstanding any other provision of this Agreement,
no actual distributions pursuant to clause (i) of this Section
4.05(a) shall be made on account of the deemed distributions
described in this paragraph except in the event of a liquidation of
REMIC V or REMIC IV and not REMIC III. 

(b)              
Distributions from REMIC IV to the Class C
Certificates.  On each Distribution Date, the Trustee
(or any duly appointed paying agent) on behalf of the Trust shall
withdraw from the Distribution Account the REMIC IV Distribution
Amount and shall distribute such amount pursuant to Section 4.05(d)
hereof.  The Holders of the Class C Certificates, by accepting
such Certificates, acknowledge that amounts otherwise distributable
to them may be used to make distributions to other Classes of
Certificates, and such Holders expressly agree to, and direct the
Trustee to make, such distributions.

(c)               
Distributions of the Net Swap Amount to the Supplemental
Interest Trust.  On each Distribution Date, the
Trustee (or any duly appointed paying agent) on behalf of the Trust
shall withdraw from the Distribution Account the REMIC VI
Distribution Amount and shall pay such amount (i) on each
Distribution Date on which a Swap Default with respect to the Swap
Counterparty has not occurred and is not continuing, to the
Supplemental Interest Trust Trustee for payment to the Swap
Counterparty, and (ii) on each other Distribution Date, as set
forth in Section 4.05(d).  The Holders of the Class C
Certificates, acting as the holder of the Class L6-SW Regular
Interest, by accepting such Certificates and such Regular Interest,
acknowledge that amounts otherwise distributable to them shall be
used to make payments to the Swap Counterparty and/or distributions
to other Classes of Certificates, and such Holders expressly agree
to, and direct the Trustee to make, such distributions and
payments.

(d)              
Distributions to the Certificateholders on Certain
Occurrences.

(i)                 
Notwithstanding Section 4.05(a) and the definition of REMIC III
Distribution Amount, on each Distribution Date on which (A) a Swap
Termination Payment is payable (including any amount remaining
unpaid from prior Distribution Dates), unless the Swap Counterparty
is the Defaulting Party or the sole Affected Party (each, as
defined in the Swap Agreement), or (B) no Net Swap Payment is due
as a result of the termination of the Swap Agreement, the Trustee
shall recompute the amount distributable to each Class of
Certificates (other than the Class C, P and R Certificates) and the
Class L3-C Regular Interest as provided in the definition of REMIC
III Distribution Amount except that the Trustee shall
determine the Certificate Interest Rate of each Class of
Certificates and the Class L3-C Regular Interest by using the Net
WAC Rate instead of the REMIC Net WAC Rate.  The Trustee (or
any duly appointed paying agent) on behalf of the Trust shall then
withdraw from the Distribution Account an amount equal to REMIC III
Available Distribution Amount for such Distribution Date, and shall
make the following distributions in the following order of
priority:

(A)             
first, to the Supplemental Interest Trust Trustee for
payment to the Swap Counterparty, the amount of any unpaid Swap
Termination Payment (including any amount remaining unpaid from
prior Distribution Dates);

(B)             
second, to the Holders of the Certificates (other than the
Class C Certificates, the Class P Certificates and the Class R
Certificates), the amounts distributable to each Class of
Certificates as recomputed pursuant to this Section 4.05(d)(i);
and

(C)             
third, to the Class Holders of the Class L3-C Regular
Interest the amount distributable to such Regular Interest as
recomputed pursuant to this Section 4.05(d)(i), for further
distribution to the Class C Certificates pursuant to clause (ii) of
this Section 4.05(d).

(ii)               
Notwithstanding the definition of REMIC IV Distribution Amount, on
each Distribution Date, the Trustee (or any duly appointed paying
agent) on behalf of the Trust shall distribute amounts otherwise
distributable to the Class C Certificates in the following order of
priority:

(A)             
first, to the Reserve Fund, the amount equal to the
difference between any Net WAC Rate Carryover Amounts with respect
to the Class A Certificates and the Mezzanine Certificates for such
Distribution Date and any amounts described in this Section
4.05(d)(ii)(A) that were not distributed on prior Distribution
Dates;

(B)             
second, to the Supplemental Interest Trust Trustee, for
payment to the Swap Counterparty, any unpaid Swap Termination
Payment payable by the Supplemental Interest Trust Trustee
(including any amount remaining unpaid from prior Distribution
Dates) (only if the Swap Counterparty is the Defaulting Party or
the sole Affected Party (each as defined in the Swap Agreement));
and

(C)             
third, to the Holders of the Class C Certificates, any
remaining amounts.

(e)               
Distributions from the Reserve Fund.  On each
Distribution Date, after making the distributions of the REMIC III
Distribution Amounts as provided in Sections 4.05(a) and (d), the
Trustee shall withdraw from the Reserve Fund the amounts on deposit
therein and shall distribute such amounts in the following order of
priority:  first, concurrently, to the Class A Certificates,
up to the amount of the related Net WAC Rate Carryover Amount,
allocated among the Class A Certificates, pro rata, based on
their respective Net WAC Rate Carryover Amounts; then, to the
Mezzanine Certificates, up to the amount of the related Net WAC
Rate Carryover Amount, in the following order of priority: 
first to the Class M‐1 Certificates, second to
the Class M‐2 Certificates, third to the Class
M‐3 Certificates, fourth to the Class M‐4
Certificates, fifth to the Class M‐5 Certificates,
sixth to the Class M‐6 Certificates, seventh to
the Class M‐7 Certificates, eighth to the Class
M‐8 Certificates and ninth to the Class M‐9
Certificates, in each case to the extent of such amounts remaining
in the Reserve Fund.

On the Distribution Date on which the Certificate Principal
Balance of the Class A Certificates and the Mezzanine Certificates has been
reduced to zero, after making all other distributions on such Distribution Date
(including to the Class A Certificates and the Mezzanine Certificates out of the
Reserve Fund), the Trustee shall distribute all remaining amounts in the Reserve
Fund to the Holders of the Class C Certificates.

(f)                
Distributions from the Supplemental Interest Trust.  On
each Distribution Date, the Supplemental Interest Trust Trustee
shall withdraw from the Supplemental Interest Account the amounts
equal to the Net Swap Payment and the Swap Termination Payment
payable by the Supplemental Interest Trust Trustee that are
required to be deposited in the Supplemental Interest Trust
pursuant to this Section 4.05 with respect to such Distribution
Date and the amounts deposited in the Supplemental Interest Account
pursuant to the last sentence of Section 4.09(c) and shall
distribute such amounts to the Swap Counterparty on such
Distribution Date.  On each Distribution Date, the
Supplemental Interest Trust Trustee shall withdraw from the
Supplemental Interest Account the Net Counterparty Payment and the
Swap Termination Payment payable by the Swap Counterparty and
received by the Supplemental Interest Trust Trustee from the Swap
Counterparty and deposited in the Supplemental Interest Account and
the amounts deposited in the Supplemental Interest Account pursuant
to the last sentence of Section 4.09(c) and shall distribute such
amounts as follows (provided the Swap Termination Payment
shall be distributed as provided in Section 3.27(c)): 

(i)                 
first, for payment to the Swap Counterparty, any unpaid Swap
Termination Payment payable by the Supplemental Interest Trust
Trustee, including any amount remaining unpaid from prior
Distribution Dates (unless the Swap Counterparty is the Defaulting
Party or the sole Affected Party (each, as defined in the Swap
Agreement)); and

(ii)               
second,

(A)             
if the NIM Notes are outstanding, for payment in the amounts and in
accordance with priorities in clauses (i) through (xxi) of
paragraph (j) of the definition of REMIC III Distribution Amount to
the extent not paid pursuant to paragraphs (a) through (e) of this
Section 4.05 on such Distribution Date; provided the amount
distributable to the Class C Certificates pursuant to paragraph
(j)(xxi) of the definition of REMIC III Distribution Amount shall
be equal to the lesser of (I) the amount remaining after
distribution of the amount in the Supplemental Interest Account
pursuant to clauses (i) through (xx) of paragraph (j) of such
definition on such Distribution Date and (II) the Class C NIM
Payment Amount for such Distribution Date; or

(B)             
if the NIM Notes are not outstanding, for payment in the amounts
and in accordance with priorities clauses (i) through (xx) of
paragraph (j) of the definition of REMIC III Distribution Amount to
the extent not paid pursuant to paragraphs (a) through (e) of this
Section 4.05 on such Distribution Date;

provided, however, that the
amount that shall be distributed pursuant to Section 4.05(f)(ii)
cannot exceed the aggregate Realized Losses reduced by the
aggregate of amounts previously distributed pursuant to this
Section 4.05(f)(ii).

Any amounts in the Supplemental Interest Account
received from the Swap Counterparty or deposited therein pursuant
to the last sentence of Section 4.09(c) and not distributed on a
Distribution Date after payments pursuant to Section 4.05(f)(ii)(B)
will remain in the Supplemental Interest Account and be distributed
pursuant to Section 4.05(f)(ii)(B) on the next Distribution
Date.  On the Distribution Date on which the Certificate
Principal Balance of the Class A Certificates and the Mezzanine
Certificates has been reduced to zero, after making all other
distributions on such Distribution Date (including to the Class A
Certificates and the Mezzanine Certificates out of the Supplemental
Interest Account), the Supplemental Interest Trust Trustee shall
distribute all remaining amounts in the Supplemental Interest
Account to itself.

(g)               
Distribution to Class P Certificates.  On each
Distribution Date, the Trustee shall on behalf of the Trust
withdraw from the Distribution Account and distribute to the
Holders of the Class P Certificates, the Assigned Prepayment
Premiums for such Distribution Date.

(h)               
The net distributions to the Certificates pursuant to this Section
4.05 shall be made in accordance with the written statement
received from the Servicer pursuant to Section 4.02(b) and
calculations provided by the Swap Counterparty under the Swap
Agreement and without any responsibility to recalculate, verify or
confirm the information in such statement. 

(i)                 
Amounts distributed to the Certificateholders pursuant to this
Section 4.05 shall be distributed by wire transfer in immediately
available funds for the account of, or by check mailed to, each
such Certificateholder of record on the immediately preceding
Record Date (other than as provided in Section 9.01 respecting the
final distribution), as specified by each such Certificateholder
and at the address of such Holder appearing in the Certificate
Register.

(j)                
All reductions in the Certificate Principal Balance of a
Certificate effected by distributions of principal and all
allocations of Realized Losses made on any Distribution Date shall
be binding upon all Holders of such Certificate and of any
Certificate issued upon the registration of transfer or exchange
therefor or in lieu thereof, whether or not such distribution is
noted on such Certificate.  The final distribution of
principal of each Certificate (and the final distribution upon the
Residual Certificates upon (i) the termination of REMIC I, REMIC
II, REMIC III, REMIC IV, REMIC V, and REMIC VI and (ii) the
payment, or making provision for payment, of all liabilities of the
Trust) shall be payable in the manner provided above only upon
presentation and surrender thereof on or after the Distribution
Date therefor at the office or agency of the Certificate Registrar
specified in the notice delivered pursuant to Section 4.05(k)(ii)
and Section 9.01(b).

(k)              
Whenever, on the basis of prepayments, Payoffs and Monthly Payments
on the Mortgage Loans and Insurance Proceeds and Liquidation
Proceeds received and expected to be received during the Prepayment
Period, the Servicer has notified the Trustee that it believes that
the entire remaining unpaid Class Principal Balance of any Class of
Certificates will become distributable on the next Distribution
Date, the Trustee shall, no later than the 18th day of the month of
such Distribution Date, mail or cause to be mailed to each Person
in whose name a Certificate to be so retired is registered at the
close of business on the Record Date and to the Rating Agencies a
notice to the effect that:

(i)                 
it is expected that funds sufficient to make such final
distribution will be available in the Distribution Account on such
Distribution Date, and 

(ii)               
if such funds are available, (A) such final distribution will be
payable on such Distribution Date, but only upon presentation and
surrender of such Certificate at the office or agency of the
Certificate Registrar maintained for such purpose (the address of
which shall be set forth in such notice), and (B) no interest shall
accrue on such Certificate after such Distribution Date.

(l)                 
The Trustee shall treat the beneficial owners of the Certificates
(other than the Class P and Class C Certificates and the Residual
Certificates) as having entered into a notional principal contract
with the beneficial owners of the Class C Certificates. 
Pursuant to each such notional principal contract, all beneficial
owners of the Certificates (other than the Class P and Class C
Certificates and the Residual Certificates) shall be treated as
having agreed to pay, on each Distribution Date, to the beneficial
owners of the Class C Certificates an aggregate amount equal to the
excess, if any, of (i) the amount payable on such Distribution Date
on the interest in REMIC III corresponding to such Class of
Certificates (as determined pursuant to the definition of REMIC III
Distribution Amount) over (ii) the amount payable on such Class of
Certificates on such Distribution Date under paragraphs (c) through
(j) of this Section 4.05 (such excess, a “Class C
Shortfall”).  A Class C Shortfall payable by any Class
of Certificates shall be allocated pro rata among the
Certificates of such Class.  In addition, pursuant to such
notional principal contract, the beneficial owner of the Class C
Certificates shall be treated as having agreed to pay Net WAC Rate
Carryover Amounts, to the extent such amounts are used to make
payments on such Certificates to the Holders of the Certificates
(other than the Class P and Class C Certificates and the Residual
Certificates) pursuant to the terms of this Agreement.  Any
payments on the Certificates described in the preceding sentence
shall not be payments with respect to a “regular
interest” in a REMIC within the meaning of Code Section
860G(a)(1).  However, any payment from the Certificates of a
Class C Shortfall shall be treated for tax purposes as having been
received by the beneficial owners of such Certificates in respect
of their interests in the REMIC III and as having been paid by such
beneficial owners to the Supplemental Interest Trust pursuant to
the notional principal contract.  Thus, each Certificate
(other than the Class P and Class C Certificates and the Residual
Certificates) shall be treated as representing ownership of not
only regular interests in REMIC III, but also ownership of an
interest in (and obligations with respect to) a notional principal
contract.  For purposes of determining the issue price of the
regular interests in REMIC III, the Trustee shall assume that the
notional principal contract has a value of $10,000 as of the
Closing Date in favor of the Certificates (other than the Class C
and Class P Certificates and the Residual Certificates) and shall
allocate such value proportionately to each such Class of
Certificates based on such Class’s initial Certificate
Principal Balance.

Section 4.06         
Statements.

(a)               
On each Distribution Date, the Trustee shall prepare and make
available to each Holder of the Regular Certificates, the Servicer,
the NIMS Insurer, the indenture trustee under the Indenture and the
Rating Agencies a statement, based on information provided to the
Trustee by the Servicer or the Swap Counterparty, as to the
distributions made on such Distribution Date:

(i)                 
the record dates, the accrual period, the determination date and
the distribution date;

(ii)               
the amount of the distribution made on such Distribution Date to
the Holders of each Class of Regular Certificates, separately
identified, allocable to principal and the amount of the
distribution made to the Holders of the Class P Certificates
allocable to Prepayment Charges, Assigned Prepayment Charges and
Servicer Prepayment Charge Payment Amounts;

(iii)              
the amount of the distribution made on such Distribution Date to
the Holders of each Class of Regular Certificates (other than the
Class P Certificates), allocable to interest and the Pass-Through
Rates, separately identified;

(iv)             
the Overcollateralized Amount, the Overcollateralization Release
Amount, the Overcollateralization Deficiency Amount and the
Overcollateralization Target Amount as of such Distribution Date
and the Excess Overcollateralized Amount for the Mortgage Pool for
such Distribution Date;

(v)               
by Loan Group and in the aggregate amount of servicing compensation
received by the Servicer with respect to the related Due Period and
such other customary information as the Trustee deems necessary or
desirable, or which a Certificateholder reasonably requests, to
enable Certificateholders to prepare their tax returns;

(vi)             
the Group I Interest Remittance Amount and the Group II Interest
Remittance Amount and the Group I Principal Remittance Amount and
the Group II Principal Remittance Amount for such Distribution
Date;

(vii)            
the aggregate amount of Advances and Servicing Advances for the
related Due Period, the amount of unrecovered Advances and
Servicing Advances (after giving effect to Advances and Servicing
Advances made on the Distribution Date) outstanding and the amount
of Nonrecoverable Advances and Servicing Advances for such
Distribution Date;

(viii)          
the number and aggregate Stated Principal Balance of the Group I
Mortgage Loans, the Group II Mortgage Loans and all Mortgage Loans
at the Close of Business at the end of the related Due Period and
at the beginning of the related Due Period;

(ix)             
the number, aggregate principal balance, weighted average remaining
term to maturity and weighted average Mortgage Rate of the Mortgage
Loans as of the related Determination Date;

(x)               
by Loan Group and in the aggregate, the number and aggregate unpaid
principal balance of Mortgage Loans (a) delinquent 30‐59
days, (b) delinquent 60‐89 days, (c) delinquent
90-119 days and (d) 120 or more days in each case, as of the
last day of the preceding calendar month; provided, however, that any aggregate unpaid principal balance of
Mortgage Loans shall be reported as of the last day of the related
Due Period, (d) as to which foreclosure proceedings have been
commenced and (e) with respect to which the related Mortgagor
has filed for protection under applicable bankruptcy laws, with
respect to whom bankruptcy proceedings are pending or with respect
to whom bankruptcy protection is in force;

(xi)             
with respect to any Mortgage Loan that became an REO Property
during the preceding Prepayment Period, the unpaid principal
balance and the Principal Balance of such Mortgage Loan as of the
date it became an REO Property;

(xii)            
the total number and cumulative principal balance of all REO
Properties as of the Close of Business of the last day of the
preceding Prepayment Period;

(xiii)          
by Loan Group and in the aggregate, the aggregate amount of
Principal Prepayments made during the related Prepayment
Period;

(xiv)          
by Loan Group and in the aggregate, the aggregate amount of
principal and interest Realized Losses incurred during the related
Prepayment Period and the cumulative amount of principal and
interest Realized Losses;

(xv)           
the aggregate amount of Extraordinary Trust Fund Expenses withdrawn
from the Collection Account or the Distribution Account for such
Distribution Date;

(xvi)          
the Certificate Principal Balance of the Class A Certificates, the
Mezzanine Certificates and the Class C Certificates, before and
after giving effect to the distributions made on such Distribution
Date, and the Notional Amount of the Class C Certificates, after
giving effect to the distributions made on such Distribution
Date;

(xvii)        
the Monthly Interest Distributable Amount in respect of the Class A
Certificates, the Mezzanine Certificates and the Class C
Certificates for such Distribution Date and the Unpaid Interest
Shortfall Amount, if any, with respect to the Class A Certificates
and the Mezzanine Certificates for such Distribution Date;

(xviii)       
by Loan Group and in the aggregate, the aggregate amount of any Net
Prepayment Interest Shortfalls for such Distribution Date, to the
extent not covered by payments by the Servicer pursuant to
Section 3.24, and the aggregate amount of any Relief Act
Interest Shortfalls for such Distribution Date;

(xix)          
the Credit Enhancement Percentage for such Distribution Date;

(xx)           
the related Net WAC Rate Carryover Amount for the Class A
Certificates and the Mezzanine Certificates, if any, for such
Distribution Date and the amount remaining unpaid after
reimbursements therefor on such Distribution Date;

(xxi)          
the Trustee Fee and the Servicer Fee on such Distribution
Date;

(xxii)        
whether a Stepdown Date or a Trigger Event has occurred;

(xxiii)       
the REMIC I Available Distribution Amount;

(xxiv)      
the respective Pass‐Through Rates applicable to the Class A
Certificates, the Mezzanine Certificates and the Class C
Certificates for such Distribution Date and the Pass‐Through
Rate applicable to the Class A Certificates and the Mezzanine
Certificates for the immediately succeeding Distribution Date;

(xxv)        
by Loan Group and in the aggregate, the Principal Balance of
Mortgage Loans repurchased by the Seller;

(xxvi)      
any other information that is required by the Code and regulations
thereunder to be made available to Certificateholders;

(xxvii)      the
amount on deposit in the Reserve Fund;

(xxviii)    the amount of
Subsequent Recoveries and Gross Subsequent Recoveries for the
related Prepayment Period and the cumulative amount of Subsequent
Recoveries and Gross Subsequent Recoveries in the aggregate and for
each of Loan Group I and Loan Group II; and

(xxix)      
the Group I Swap Payment, the Group II Swap Payment, the Swap
Payment, the Counterparty Payment, the Group I Net Swap Payment,
the Group II Net Swap Payment, the Net Swap Payment and the Net
Counterparty Payment for such Distribution Date; the Group I Swap
Termination Payment paid on such Distribution Date, the Group II
Swap Termination Payment paid on such Distribution Date, the Swap
Termination Payment and the Swap Termination Payment remaining
unpaid from prior Distribution Dates, and in each case whether
payable by the Supplemental Interest Trust Trustee or by the Swap
Counterparty; and any Counterparty Payments unpaid from prior
Distribution Dates.

The Trustee shall make such statement and certain
other information, including without limitation, information
required to be provided by the Trustee pursuant to Section 4.02
available each month to Certificateholders, the Servicer, the NIMS
Insurer, the Swap Counterparty and the Rating Agencies through the
Trustee’s Corporate Trust home page on the world wide
web.  Such web page is currently located at
“www.etrustee.net”.  The location of such web page
and the procedures used therein are subject to change from time to
time at the Trustee’s discretion.  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 contacting the
Trustee at (312) 992-1743.  The Trustee shall have the right
to change the way such statements are distributed in order to make
such distribution more convenient and/or more accessible to the
above parties and the Trustee shall provide timely and adequate
notification to all above parties regarding any such
changes.

In preparing or furnishing such statement and
information, the Trustee shall be entitled to rely conclusively on
the accuracy and completeness of (and shall have no liability for
any errors or omissions in) the information or data provided to it
by the Servicer, and, with respect to the Swap Agreement, provided
to it by the Swap Counterparty and the Trustee shall not be
obligated to verify, recompute, reconcile or recalculate any such
information or data.

In the case of information furnished pursuant to
subclauses (ii) and (iii) above, the amounts shall be
expressed in a separate section of the report as a dollar
amount for each Class for each $1,000 original dollar amount as of
the Closing Date.

Upon request by any Certificateholder, the
Servicer, as soon as reasonably practicable, shall provide the
requesting Certificateholder with such information as is necessary
and appropriate, in the Servicer’s sole discretion, for
purposes of satisfying applicable reporting requirements under Rule
144A of the Securities Act.

(b)              
Within a reasonable period of time after the end of each calendar
year, the Trustee shall, upon written request, furnish to each
Person who at any time during the calendar year was a
Certificateholder of a Regular Certificate, if requested in writing
by such Person, such information as is reasonably necessary to
provide to such Person a statement containing the information set
forth in subclauses (ii) and (iii) above, aggregated for such
calendar year or applicable portion thereof during which such
Person was a Certificateholder.  Such obligation of the
Trustee shall be deemed to have been satisfied to the extent that
substantially comparable information shall be prepared and
furnished by the Trustee to Certificateholders pursuant to any
requirements of the Code as are in force from time to
time.

(c)               
On each Distribution Date, the Trustee shall make available to the
Holders of the Residual Certificates and the NIMS Insurer a copy of
the reports made available to the Regular Certificateholders in
respect of such Distribution Date with such other information as
the Trustee deems necessary or appropriate.

(d)              
Within a reasonable period of time after the end of each calendar
year, the Trustee shall deliver to each Person who at any time
during the calendar year was a Holder of a Residual Certificate, if
requested in writing by such Person, such information as is
reasonably necessary to provide to such Person a statement
containing the information provided pursuant to the previous
paragraph aggregated for such calendar year or applicable portion
thereof during which such Person was a Holder of a Residual
Certificate.  Such obligation of the Trustee shall be deemed
to have been satisfied to the extent that substantially comparable
information shall be prepared and furnished to Certificateholders
by the Trustee pursuant to any requirements of the Code as from
time to time in force.

(e)               
On each Distribution Date the Trustee shall provide Bloomberg
Financial Markets, L.P. (“Bloomberg”) CUSIP
level factors for each Class of Certificates as of such
Distribution Date, using a format and media mutually acceptable to
the Trustee and Bloomberg.

Section 4.07         
Compliance with Withholding Requirements

Notwithstanding any other
provision of this Agreement, the Trustee shall comply with all
federal withholding requirements respecting payments to Certificateholders of interest or original issue discount that the
Trustee reasonably believes are applicable under the Code. 
The consent of Certificateholders shall not be required for such
withholding.  In the event the Trustee does withhold any
amount from interest or original issue discount payments or
advances thereof to any Certificateholder pursuant to federal
withholding requirements, the Trustee shall indicate the amount
withheld to such Certificateholders.

Section 4.08         
Commission Reporting. 

(a)               
The Trustee and the Servicer shall reasonably cooperate with the
Company in connection with the Trust’s satisfying the
reporting requirements under the Exchange Act.

(i)                 
Within 15 days after each Distribution Date, the Company shall, in
accordance with industry standards and applicable regulations, file
with the Commission via the Electronic Data Gathering Analysis and
Retrieval System (“EDGAR”), a Distribution
Report on Form 10-D, signed by the Company, with a copy of the
monthly statement to be furnished by the Trustee to the
Certificateholders for such Distribution Date and detailing all
data elements specified in Item 1121(a) of Regulation AB as part of
the monthly statement or otherwise as part of the Form 10-D; provided that the Company shall have received no later than
12:00 p.m. P.S.T. 2 Business Days prior to the date such
Distribution Report on Form 10-D is required to be filed, all
information required to be provided to the Company as described in
clause (a)(iv) below.

(ii)               
The Company will prepare and file Current Reports on Form 8-K in
respect of the Trust, as and when required.

(iii)              
Prior to January 30 of the first year in which the Company is able
to do so under applicable law, the Company shall, in accordance
with industry standards and applicable regulations, file a Form 15
Suspension Notice with respect to the Trust Fund, if applicable.
Prior to (x) March 15 of the year following the year of the
execution of this Agreement and (y) unless and until a Form 15
Suspension Notice shall have been filed, prior to March 15 of each
year thereafter, the Servicer shall provide the Company with an
annual statement of compliance, together with a copy of the
assessment of compliance and attestation report to be delivered by
the Servicer pursuant to Section 3.20 (including with respect to
any subservicer or subcontractor, if required to be filed). 
Prior to (x) March 31, of the year following the year of the
execution of this Agreement and (y) unless and until a Form 15
Suspension Notice shall have been filed, March 31 of each year
thereafter, the Company shall, subject to subsection (d) below,
file a Form 10-K, in substance as required by applicable law or
applicable Securities and Exchange Commission staff’s
interpretations and conforming to industry standards, with respect
to the Trust. Such Form 10-K shall include the assessment of
compliance, attestation report, annual statements of compliance and
other documentation provided by the Servicer pursuant to Section
3.20 (including with respect to any subservicer or subcontractor,
if required to be filed) and Section 3.20 with respect to the
Trustee, and the Form 10-K certification (the
“Certification”) signed by the senior officer of
the Company in charge of securitization; provided that the
Company shall have received no later than March 15 of each calendar
year prior to the filing deadline for the Form 10-K all
information, data and exhibits required to be provided or filed
with such Form 10-K and required to be provided to the Company as
described in clause (a)(iv) below.  If they are not so timely
delivered, the Company shall file an amended Form 10-K
including such documents as exhibits reasonably promptly after they
are delivered to the Company. 

(iv)             
As to each item of information required to be included in any Form
10-D, Form 8-K or Form 10-K, the Company’s obligation to
include the information in the applicable report is subject to
receipt from the entity that is indicated in Exhibit K as the
responsible party for providing that information, if other than the
Trustee or the Company, as applicable, as and when required as
described above.  Each of the Trustee, the Servicer and the
Company, as applicable, hereby agree to notify and provide to the
Trustee and the Company all information that is required to be
included in any Form 10‐D, Form 8-K or Form 10-K, with
respect to which that entity is indicated in Exhibit K as the
responsible party for providing that information.  The
Servicer shall be responsible for determining the pool
concentration applicable to any subservicer or originator at any
time, for purposes of disclosure as required by Items 1117 and 1119
of Regulation AB. 

(b)              
The Company shall prepare and the appropriate person shall execute,
in accordance with the Exchange Act or any other applicable law,
any certification required under the Exchange Act or any other
applicable law to accompany the Form 10‐K or any other
periodic report.  The Trustee shall sign a back-up
certification (in the form attached hereto as Exhibit P) for the
benefit of the Company and its officers, directors and
Affiliates.  The Trustee shall indemnify and hold harmless the
Company, the Servicer and each Person, if any, who
“controls” the Company or the Servicer within the
meaning of the Securities Act of 1933, as amended, and their
respective officers and directors from and against any losses,
damages, penalties, fines, forfeitures, reasonable and necessary
legal fees and related costs, judgments and other costs and
expenses arising out of or based upon (i) a breach of the
Trustee’s obligations under Section 8.18 to provide the
assessment of compliance until a Form 15 is filed, Section 4.06(a)
to provide statements as specified in Section 4.06(a), Section
4.08(a)(iv) to provide certain information to be included in any
Form 10-D, Form 8-K or Form 10-K or this Section 4.08(b) to
provide backup certification or (ii) any material misstatement or
omission in (A) the Certification made in reliance on any material
misstatement or omission contained in the certification provided by
the Trustee in the form of Exhibit P or in the assessment of
compliance provided to the Trustee pursuant to Section 8.18 until a
Form 15 is filed or (B) the information provided by the Trustee
pursuant to Section 4.08(a)(iv) for inclusion in any Form
10‐D, Form 8‐K or Form 10‐K or in the statement
provided by the Trustee pursuant to Section 4.06(a) unless such
misstatement or omission is based on the information provided to
the Trustee by the Servicer, the Company or the Swap
Counterparty.  The Servicer shall indemnify and hold harmless
the Company, the Trustee and each Person, if any, who
“controls” the Company or the Trustee within the
meaning of the Securities Act of 1933, as amended, and their
respective officers and directors from and against any losses,
damages, penalties, fines, forfeitures, reasonable and necessary
legal fees and related costs, judgments and other costs and
expenses arising out of or based upon (i) a breach of the
Servicer’s obligations under Section 3.20 or
Section 4.08 or (ii) any material misstatement or omission in
the Certification made in reliance on any material misstatement or
omission contained in any certification provided by the Servicer
under this Section 4.08 or in the Officer’s Certificate
provided pursuant to Section 3.20(e) or the Assessment of
Compliance provided pursuant to Section 3.20(e).  If the
indemnification provided for herein is unavailable or insufficient
to hold harmless the indemnified party, then (i) the Trustee
agrees that in connection with (a) a breach of the Trustee’s
obligations under Section 8.18 to provide the assessment of
compliance until a Form 15 is filed, Section 4.06(a) to provide
statements as specified in Section 4.06(a), Section 4.08(a)(iv) to
provide information to be included in any Form 10‐D, Form
8‐K or Form 10‐K or this Section 4.08(b) to
provide backup certification or (b) any material misstatement or
omission in (A) the Certification made in reliance on any material
misstatement or omission contained in the certification provided by
the Trustee in the form of Exhibit P or in the assessment of
compliance provided pursuant to Section 8.18 until a Form 15 is
filed, or (B) the information provided by the Trustee pursuant to
Section 4.08(a)(iv) for inclusion in any Form 10‐D, Form
8‐K or Form 10‐K or in the statement provided by the
Trustee pursuant to Section 4.06(a) unless such misstatement or
omission is based on the information provided to the Trustee by the
Servicer, the Company or the Swap Counterparty that it shall
contribute to the amount paid or payable by the Company and/or the
Servicer as a result of the losses, claims, damages or liabilities
of the Company and/or the Servicer in such proportion as is
appropriate to reflect the relative fault of the Company or the
Servicer, as the case may be, on the one hand and the Trustee on
the other and (ii) the Servicer agrees that it shall
contribute to the amount paid or payable by the Company and/or the
Trustee as a result of the losses, claims, damages or liabilities
of the Company and/or the Trustee in such proportion as is
appropriate to reflect the relative fault of the Company or the
Trustee, as the case may be, on the one hand and the Servicer on
the other in connection with (a) a breach of the Servicer’s
obligations under this Section 4.08(b) or (b) any material
misstatement or omission in the Certification made in reliance on
any material misstatement or omission contained in the
certification provided by the Servicer under this Section 4.08 or
in the Officer’s Certificate provided pursuant to Section
3.20(e) or the Assessment of Compliance provided pursuant to
Section 3.20(a).

Section 4.09         
Supplemental Interest Trust.

(a)        On
the Closing Date, there is hereby established a separate common law
trust under the laws of the State of Delaware for the benefit of
the Holders of the Class A Certificates, the Mezzanine Certificates
and the Class C Certificates (the “Supplemental Interest
Trust”), into which the Company shall deposit: (i) the
Swap Agreement and (ii) $1,000.  The Supplemental Interest
Trust shall be maintained by the Supplemental Interest Trust
Trustee, who initially, shall be the Trustee. On the Closing Date, the Supplemental
Interest Trust Trustee shall establish and maintain in its name, a
separate non-interest bearing account for the benefit of the
Holders of the Class A Certificates, the Mezzanine Certificates and
the Class C Certificates (the “Supplemental Interest
Account”), to be held in the Supplemental Interest Trust
into which the Company shall initially deposit $1,000.  The
Supplemental Interest Account shall be with an Eligible
Institution, 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 Supplemental Interest Trust Trustee held pursuant to this
Agreement. 

(b)        In
addition, on the Closing Date, the Supplemental Interest Trust
Trustee shall establish and maintain in its name, a separate
non-interest bearing account for the benefit of the Swap
Counterparty (the “Credit Support Annex
Account”), to be held in the Supplemental Interest Trust
pursuant to, and in accordance with, the terms of the Swap
Agreement.  The Credit Support Annex Account shall be with an
Eligible Institution, 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 Supplemental Interest Trust Trustee held pursuant
to this Agreement. 

(c)        The
Supplemental Interest Trust Trustee shall deposit, to the extent of
REMIC I Available Distribution Amount, into the Supplemental
Interest Account any amounts required to be paid to the
Supplemental Interest Trust Trustee pursuant to Section 4.05 and
shall distribute from the Supplemental Interest Account any such
amounts to the Swap Counterparty as required by Section
4.05(f).  The Supplemental Interest Trust Trustee shall
deposit into the Supplemental Interest Account any amounts received
from the Swap Counterparty and shall distribute from the
Supplemental Interest Account any such amounts to the Swap
Counterparty and to the Holders of the Class A Certificates, the
Mezzanine Certificates and the Class C Certificates as required
pursuant to Section 4.05(f).  The Supplemental Interest Trust
Trustee shall deposit into the Supplemental Interest Account any
amounts received from the Company, or any of its affiliates,
pursuant to an agreement (the “Swap Proceeds
Agreement”) between the Supplemental Interest Trust Trustee
and Washington Mutual, Inc., dated the Closing Date, and shall
distribute from the Supplemental Interest Account any such amounts
to the Swap Counterparty and to the Holders of the Class A
Certificates, the Mezzanine Certificates and the Class C
Certificates as required pursuant to Section 4.05(f).

(d)        The
Supplemental Interest Trust Trustee shall deposit into the Credit
Support Annex Account any amounts received from the Swap
Counterparty under the credit support annex of the Swap Agreement
and shall distribute from the Credit Support Annex Account any
amount required to be returned by the Supplemental Interest Trust
Trustee to the Swap Counterparty as provided in the credit support
annex of the Swap Agreement and any amount required to be
distributed pursuant to Section 4.09(j) or Section
4.09(k).

(e)       
Funds in the Supplemental Interest Account shall be invested in
Eligible Investments.  The Holders of the majority of the
Percentage Interest of the Class C Certificates shall direct the
Supplemental Interest Trust Trustee, in writing, as to investment
of amounts on deposit therein and absent receipt by the
Supplemental Interest Trust Trustee of such direction, amounts
therein shall remain uninvested.  All income and gain earned
upon such investment shall be deposited into the Supplemental
Interest Account.

(f)        
Funds in the Credit Support Annex Account shall be invested in
Eligible Investments in accordance with the Swap Agreement. 
The Swap Counterparty shall be the beneficial owner of the Credit
Support Annex Account for federal income tax purposes and shall
direct the Supplemental Interest Trust Trustee, in writing, as to
investment of amounts on deposit therein.  All income and gain
earned upon such investment shall be deposited into the Credit
Support Annex Account and distributed in accordance with the Swap
Agreement.  The Supplemental Interest Trust Trustee shall not
be liable for any losses incurred on such investments.

(g)        To
the extent that the Supplemental Interest Account is determined to
be a separate legal entity from the Supplemental Interest Trust
Trustee, any obligation of the Supplemental Interest Trust Trustee
under the Swap Agreement shall be deemed to be an obligation of the
Supplemental Interest Trust.

(h)        The
Trustee shall treat the Supplemental Interest Account as an outside
reserve fund within the meaning of Treasury Regulation
1.860G-2(h).  It is the intention of the parties that, for
federal and state income and state and local franchise tax
purposes, the Holders of the Class C Certificates be considered the
owners of the Supplemental Interest Trust (exclusive of the Credit
Support Annex Account) and that the Supplemental Interest Trust
(exclusive of the Credit Support Annex Account) be disregarded as
an entity separate from the Holder of the Class C Certificates
unless and until the date when either (a) there is more than one
Holder of the Class C Certificates or (b) any Class of Certificates
in addition to the Class C Certificates is recharacterized as an
equity interest in the Supplemental Interest Trust (exclusive of
the Credit Support Annex Account) for federal income tax purposes,
in which case it is the intention of the parties that, for federal
and state income and state and local franchise tax purposes, the
Supplemental Interest Trust (exclusive of the Credit Support Annex
Account) be treated as a partnership.  Neither the
Supplemental Interest Trust Trustee nor the Trustee shall be
responsible for any entity-level tax reporting for the Supplemental
Interest Trust.  If the Supplemental Interest Trust becomes
characterized as a partnership for federal income tax purposes, the
Servicer or its Affiliate shall (i) obtain, or cause to be
obtained, a taxpayer identification number for the Supplemental
Interest Trust, (ii) prepare and file, or cause to be prepared and
filed, any necessary federal, state or local tax returns for the
Supplemental Interest Trust, and (ii) prepare and deliver, or cause
to be prepared and delivered, to the Swap Counterparty an IRS Form
W-9 and to update such form upon expiration, as required under then
applicable U.S. Treasury regulations, and promptly upon learning
that such IRS Form W-9 (or any successor form thereto) has become
obsolete or incorrect.  Each Holder of a Class C Certificate
and each transferee thereof, by accepting the Class C Certificate,
hereby to (x) designates and authorizes the Servicer or its
Affiliate to act as its agent and as agent for the Supplemental
Interest Trust in obtaining a taxpayer identification number for
the Supplemental Interest Trust, preparing and filing tax returns,
and issuing the IRS Form W-9, and (y) agrees to cooperate with the
Servicer and to provide any information the Servicer reasonably
requires to perform the foregoing functions.  In no event
shall any person make an election to treat the Supplemental
Interest Trust or the Supplemental Interest Account or any part
thereof as an association taxable as a corporation for federal
income tax purposes.

(i)        
The Trustee shall treat the Credit Support Annex Account as an
outside reserve fund within the meaning of Treasury Regulation
1.860G-2(h) that is owned by the Swap Counterparty and that is not
an asset of any REMIC.

(j)        
Upon termination of the Trust Fund, any amounts remaining in the
Credit Support Annex Account shall be distributed as provided in
the Swap Agreement, and if released to the Supplemental Interest
Trust, deposited in the Supplemental Interest Account for
distribution pursuant to the priorities set forth in Section
4.05(f).

(k)        If
a shortfall exists with respect to a Net Swap Payment or a Swap
Termination Payment owed by the Swap Counterparty as a result of
its failure to make payments pursuant to the Swap Agreement, then,
to the extent permitted under the Swap Agreement, amounts necessary
to cover such shortfall shall be removed from the Credit Support
Annex Account and shall be deposited in the Supplemental Interest
Account, as provided in the Swap Agreement, for distribution
pursuant to the priorities set forth in Section 4.05(f).

Section 4.10         
Preference Claims

The Trustee shall promptly notify
the NIMS Insurer of any proceeding or the institution of any
action, of which a Responsible Officer of the Trustee has actual
knowledge, seeking the avoidance as a preferential transfer under
applicable bankruptcy, insolvency, receivership or similar law (a
“Preference Claim”) of any distribution made
with respect to the Class C Certificates or the Class P
Certificates.  Each Holder of the Class C Certificates or the
Class P Certificates, by its purchase of such Certificates, the
Servicer, the Trustee and the Delaware Trustee hereby agree that
the NIMS Insurer may at any time during the continuation of any
proceeding relating to a Preference Claim direct all matters
relating to such Preference Claim, including, without limitation,
(i) the direction of any appeal of any order relating to such
Preference Claim and (ii) the posting of any surety,
supersedeas or performance bond pending any such appeal.  In
addition and without limitation of the foregoing, the NIMS Insurer
shall be subrogated to the rights of the Servicer, the Trustee, the
Delaware Trustee and each Holder of the Class C Certificates and
the Class P Certificates in the conduct of any such Preference
Claim, including, without limitation, all rights of any party to an
adversary proceeding action with respect to any court order issued
in connection with any such Preference Claim; provided,
however, that the NIMS Insurer will not have any rights with
respect to any Preference Claim set forth in this paragraph unless
the Trustee, as indenture trustee or indenture administrator with
respect to the Insured NIM Notes or the holder of any Insured NIM
Notes has been required to relinquish a distribution made on the
Class C Certificates, the Class P Certificates or the Insured NIM
Notes, as applicable, and the NIMS Insurer made a payment in
respect of such relinquished amount.

ARTICLE V

The Certificates

Section 5.01         
The Certificates.

(a)               
The Certificates shall be substantially in the forms set forth in
Exhibit A and B with the additional insertion from Exhibit H
attached hereto, and shall be executed by the Trustee on behalf of
the Trust, authenticated by the Trustee (or any duly appointed
Authenticating Agent) and delivered (i) upon and pursuant to the
order of the Company and (ii) upon receipt by the Trustee of the
documents specified in Section 2.04.  The Certificates shall
be issuable in Authorized Denominations. Certificates shall be
executed by manual or facsimile signature on behalf of the Trust by
authorized officers of the Trustee. Certificates bearing the manual
or facsimile signatures of individuals who were at the time of
execution the proper officers of the Trustee 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 for herein executed by the Trustee or any
Authenticating Agent by manual signature, and such certificate upon
any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and
delivered hereunder. All Certificates shall be dated the date of
their authentication.

(b)              
The following definitions apply for purposes of this Section 5.01:
 “Disqualified Organization” means any
Person which is not a Permitted Transferee, but does not include
any “Pass-Through Entity” which owns or holds a
Residual Certificate and of which a Disqualified Organization,
directly or indirectly, may be a stockholder, partner or
beneficiary; “Pass-Through Entity” means any regulated
investment company, real estate investment trust, common trust
fund, partnership, trust or estate, and any organization to which
Section 1381 of the Code applies; “Ownership
Interest” means, with respect to any Residual
Certificate, any ownership or security interest in such Residual
Certificate, including any interest in a Residual Certificate as
the Holder thereof and any other interest therein whether direct or
indirect, legal or beneficial, as owner or as pledgee;
“Transfer” means any direct or indirect transfer
or sale of, or directly or indirectly transferring or selling any
Ownership Interest in a Residual Certificate; and
“Transferee” means any Person who is acquiring
by Transfer any Ownership Interest in a Residual Certificate.

(c)               
Restrictions on Transfers of the Residual Certificates to
Disqualified Organizations are set forth in this Section
5.01(c).

(i)        
Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or
acquisition of such Ownership Interest to have agreed to be bound
by the following provisions and to have irrevocably authorized the
Trustee or its designee under clause (iii)(A) below to deliver
payments to a Person other than such Person and to negotiate the
terms of any mandatory sale under clause (iii)(B) below and to
execute all instruments of transfer and to do all other things
necessary in connection with any such sale. The rights of each
Person acquiring any Ownership Interest in a Residual Certificate
are expressly subject to the following provisions:

(A)       Each
Person holding or acquiring any Ownership Interest in a Residual
Certificate shall be a Permitted Transferee and shall promptly
notify the Trustee of any change or impending change in its status
as a Permitted Transferee.

(B)       In
connection with any proposed Transfer of any Ownership Interest in
a Residual Certificate to a U.S. Person (other than in connection
with any Transfer to an Affiliate of the Company), the Trustee
shall require delivery to it, and shall not register the Transfer
of any Residual Certificate until its receipt of (1) an affidavit
and agreement (a “Transferee Affidavit and
Agreement”) attached hereto as Exhibit J from the
proposed Transferee, in form and substance satisfactory to the
Company, representing and warranting, among other things, that it
is not a Non-U.S. Person, 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 who is not a
Permitted Transferee, that for so long as it retains its Ownership
Interest in a Residual Certificate, it will endeavor to remain a
Permitted Transferee, and that it has reviewed the provisions of
this Section 5.01(c) and agrees to be bound by them, and (2) a
certificate, attached hereto as Exhibit I, from the Holder wishing
to transfer the Residual Certificate, in form and substance
satisfactory to the Company, representing and warranting, among
other things, that no purpose of the proposed Transfer is to allow
such Holder to impede the assessment or collection of
tax.

(C)      
Notwithstanding the delivery of a Transferee Affidavit and
Agreement by a proposed Transferee under clause (B) above, if the
Trustee 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)       Other
than in connection with a Transfer to an Affiliate of the Company,
each Person holding or acquiring any Ownership Interest in a
Residual Certificate agrees by holding or acquiring such Ownership
Interest (i) to require a Transferee Affidavit and Agreement from
any other Person to whom such Person attempts to transfer its
Ownership Interest and to provide a certificate to the Trustee in
the form attached hereto as Exhibit J; (ii) to obtain the express
written consent of the Company prior to any transfer of such
Ownership Interest, which consent may be withheld in the
Company’s sole discretion; and (iii) to provide a certificate
to the Trustee in the form attached hereto as Exhibit I.

(ii)       
Other than in connection with a Transfer to an Affiliate of the
Company, the Trustee shall register the Transfer of any Residual
Certificate only if it shall have received the Transferee Affidavit
and Agreement, a certificate of the Holder requesting such transfer
in the form attached hereto as Exhibit J and all of such other
documents as shall have been reasonably required by the Trustee as
a condition to such registration.

(iii)      
(A)       If any “disqualified
organization” (as defined in Section 860E(e)(5) of the Code)
shall become a holder of a Residual Certificate, then the last
preceding Permitted Transferee shall be restored, to the extent
permitted by law, to all rights and obligations as Holder thereof
retroactive to the date of registration of such Transfer of such
Residual Certificate. If any Non-U.S. Person shall become a holder
of a Residual Certificate, then the last preceding holder which is
a U.S. Person shall be restored, to the extent permitted by law, to
all rights and obligations as Holder thereof retroactive to the
date of registration of the Transfer to such Non-U.S. Person of
such Residual Certificate. If a transfer of a Residual Certificate
is disregarded pursuant to the provisions of Treasury Regulations
Section 1.860E-1 or Section 1.860G-3, then the last preceding
Permitted Transferee shall be restored, to the extent permitted by
law, to all rights and obligations as Holder thereof retroactive to
the date of registration of such Transfer of such Residual
Certificate. Neither the Trust nor the Trustee shall be under any
liability to any Person for any registration of Transfer of a
Residual Certificate that is in fact not permitted by this Section
5.01(c) or for making any payments due on such Certificate to the
holder thereof or for taking any other action with respect to such
holder under the provisions of this Agreement.

(B)       If any
purported Transferee shall become a Holder of a Residual
Certificate in violation of the restrictions in this Section
5.01(c) 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 Company 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 Company on such
terms as the Company may choose. Such purported Transferee shall
promptly endorse and deliver each Residual Certificate in
accordance with the instructions of the Company. Such purchaser may
be the Company itself or any affiliate of the Company. The proceeds
of such sale, net of the commissions (which may include commissions
payable to the Company or its affiliates), expenses and taxes due,
if any, shall be remitted by the Company 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 Company,
and the Company shall not be liable to any Person having an
Ownership Interest in a Residual Certificate as a result of its
exercise of such discretion.

(iv)       The
Servicer shall make available, upon written request from the
Trustee, 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 not a Permitted Transferee,
including the information regarding “excess inclusions”
of such Residual Certificates required to be provided to the
Internal Revenue Service and certain Persons as described in
Treasury Regulation Section 1.860D-1(b)(5), and (B) as a result of
any regulated investment company, real estate investment trust,
common trust fund, partnership, trust, estate or organizations
described in Section 1381 of the Code having as among its record
holders at any time any Person who is not a Permitted Transferee.
Reasonable compensation for providing such information may be
required by the Servicer from such Person.

(v)        The
provisions of this Section 5.01 set forth prior to this Section (v)
may be modified, added to or eliminated by the Company, the
Servicer and the Trustee, with the consent of the NIMS Insurer,
provided that there shall have been delivered to the Trustee the
following:

(A)       written
notification from each of the Rating Agencies 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 the Certificates; and

(B)       an
Opinion of Counsel, in form and substance satisfactory to the
Company  and NIMS Insurer (as evidenced by certificates of the
Company and the NIMS Insurer), to the effect that such
modification, addition to or absence of such provisions will not
cause REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI
to cease to qualify as a REMIC and will not create a risk that (1)
REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI may be
subject to an entity-level tax caused by the Transfer of any
Residual Certificate to a Person which is not a Permitted
Transferee or (2) a Certificateholder or another Person will be
subject to a REMIC-related tax caused by the Transfer of a Residual
Certificate to a Person which is not a Permitted
Transferee.

(vi)       The
following legend shall appear on all Residual
Certificates:

UNLESS
OTHERWISE PROVIDED IN THE POOLING AGREEMENT, ANY RESALE, TRANSFER
OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE
PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE COMPANY
AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT EITHER (A) THE
UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY
FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY
OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY ORGANIZATION
(OTHER THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE)
WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION
511 OF THE CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION
1381(a)(2)(C) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE
FOREGOING CLAUSES (A), (B), OR (C) BEING HEREINAFTER REFERRED TO AS
A “DISQUALIFIED ORGANIZATION”), OR (D) AN AGENT OF A
DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO
ENABLE THE TRANSFEROR TO IMPEDE THE ASSESSMENT OR COLLECTION OF
TAX. SUCH AFFIDAVIT SHALL INCLUDE CERTAIN REPRESENTATIONS AS TO THE
FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE
REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR
OTHER DISPOSITION OF THIS CLASS R CERTIFICATE TO A DISQUALIFIED
ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT
WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT
LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH
HOLDER OF THE CLASS R CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE
SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

(vii)      The Tax
Matters Person for each of REMIC I, REMIC II, REMIC III, REMIC IV,
REMIC V and REMIC VI, while not a Disqualified Organization, shall
be the tax matters person for the related REMIC within the meaning
of Section 6231(a)(7) of the Code and Treasury Regulation Section
1.860F-4(d).

(d)        No
transfer, sale, pledge or other disposition of any Class C
Certificate, Class P Certificate or Residual Certificate shall be
made unless such disposition is exempt from the registration
requirements of the Securities Act and any applicable state
securities laws or is made in accordance with the Securities Act
and laws.  In the event of any such transfer of any Class C
Certificate, Class P Certificate or Residual Certificate (other
than in connection with (i) the initial transfer of any Class C
Certificate, Class P Certificate or Residual Certificates by the
Company to the Seller, (ii) the transfer of any Class C
Certificate, Class P Certificate or Residual Certificates by the
Seller to an Affiliate of the Seller or to a trust, the depositor
of which is an Affiliate of the Seller, (iii) the transfer of any
Class C Certificate, Class P Certificate or Residual Certificates
by an Affiliate of the Seller to one or more entities sponsored by
such Affiliate or to a trust, the depositor of which is one or more
entities sponsored by such Affiliate or (iv) a subsequent transfer
of any Class C Certificates, Class P Certificates or Residual
Certificates to the Seller or its designee by such entity or trust
described in clauses (ii) or (iii) above to which the Certificates
were previously transferred in reliance on clauses (ii) or (iii)
above) (i) unless such transfer is made in reliance upon
Rule 144A (as evidenced by the investment letter delivered to
the Trustee, in substantially the form attached hereto as Exhibit
L) under the Securities Act, the Trustee and the Company shall
require a written Opinion of Counsel (which may be in‐house
counsel) acceptable to and in form and substance reasonably
satisfactory to the Trustee and the Company that such transfer may
be made pursuant to an exemption, describing the applicable
exemption and the basis therefor, from the Securities Act or is
being made pursuant to the Securities Act, which Opinion of Counsel
shall not be an expense of the Trustee, the Delaware Trustee, the
Trust Fund or the Company or (ii) the Trustee shall require
the transferor to execute a transferor certificate (in
substantially the form attached hereto as Exhibit N) and the
transferee to execute an investment letter (in substantially the
form attached hereto as Exhibit N) acceptable to and in form and
substance reasonably satisfactory to the Company and the Trustee
certifying to the Company and the Trustee the facts surrounding
such transfer, which investment letter shall not be an expense of
the Trustee or the Company.  The Holder of a Class C
Certificate, Class P Certificate or Residual Certificate desiring
to effect such transfer shall, and does hereby agree to, indemnify
the Trustee, the Delaware Trustee, the Company and the Trust Fund
against any liability that may result if the transfer is not so
exempt or is not made in accordance with such federal and state
laws.

(e)       
For so long as the Supplemental Interest Trust is in existence, no
transfer of a Class A Certificate or Mezzanine Certificate shall be
made unless the Trustee shall have received a representation letter
from the transferee of such Certificate, substantially in the form
set forth in Exhibit O, to the effect that either (i) it is neither
a Plan nor a Person acting on behalf of any such Plan or using the
assets of any such Plan to effect such transfer or (ii) it is an
accredited investor within the meaning of Prohibited Transaction
Exemption 2002-41, as amended from time to time (the
“Exemption”) and  the acquisition and holding of
such Certificate and the separate right to receive payments from
the Supplemental Interest Trust Trustee 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”).  If the Class A Certificate, or the
Mezzanine Certificate is a Book-Entry Certificate, the transferee
will be deemed to have made a representation as provided in clause
(i) or (ii) of this paragraph, as applicable.

Subsequent to  the termination of the Supplemental
Interest Trust, no transfer of a Mezzanine Certificate shall be
made unless the Trustee shall have received a representation letter
from the transferee of such Certificate, substantially in the form
set forth in Exhibit O, to the effect that either (i) it is neither
a Plan nor a Person acting on behalf of any such Plan or using the
assets of any such Plan to effect such transfer or (ii) 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 the
certificate must be rated, at the time of purchase, not lower than
“BBB-”(or its equivalent) by S&P, Fitch, Moody's or
DBRS, and the Certificate is so rated or (iii) (1) it is an
insurance company, (2) the source of funds used to acquire or hold
the certificate or interest therein is an “insurance company
general account,” as such term is defined in PTCE 95-60, and
(3) the conditions in Sections I and III of PTCE 95-60 have been
satisfied.  If the Mezzanine Certificate is a Book-Entry
Certificate, the transferee will be deemed to have made a
representation as provided in clause (i), (ii) or (iii) of this
paragraph, as applicable.

No transfer of a Class C Certificate, Class P
Certificate or Residual Certificate or any interest therein shall
be made to any 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 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, in the case of the Class C Certificates or the Class P
Certificates, the Company, the Trustee and the Servicer are
provided with an Opinion of Counsel which establishes to the
satisfaction of the Company, the Trustee and the Servicer 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
Company, the Servicer, the Trustee, the Delaware Trustee, or the
Trust Fund to any obligation or liability (including obligations or
liabilities under ERISA or Section 4975 of the Code) in
addition to those undertaken in this Agreement, which Opinion of
Counsel shall not be an expense of the Company, the Servicer, the
Trustee, the Delaware Trustee, or the Trust Fund.  Neither an
Opinion of Counsel nor any certification will be required in
connection with the (i) initial transfer of any Class C
Certificate, Class P Certificate or Residual Certificates by the
Company to the Seller, (ii) the transfer of any Class C
Certificate, Class P Certificate or Residual Certificates by the
Seller to an Affiliate of the Seller or to a trust, the depositor
of which is an Affiliate of the Seller, (iii) the transfer of any
Class C Certificates, Class P Certificates or Residual Certificates
by an Affiliate of the Seller to one or more entities sponsored by
such Affiliate or to a trust the depositor of which is one or more
entities sponsored by such Affiliate or (iv) a subsequent transfer
of any Class C Certificates, Class P Certificates or Residual
Certificates to the Seller or its designee by such entity or trust
described in clauses (ii) or (iii) above to which the Certificates
were previously transferred in reliance on clauses (ii) or (iii)
above (in which case, the Company, the Seller, any such Affiliate
and such entities sponsored by such Affiliate shall have deemed to
have represented that the applicable transferee is not a Plan or a
Person investing Plan Assets) and the Trustee shall be entitled to
conclusively rely upon a representation (which, upon the request of
the Trustee, shall be a written representation) from the Company of
the status of each transferee, the Seller or such an
Affiliate.  Each transferee of a Class C Certificate, Class P
Certificate or Residual Certificate shall sign a letter
substantially in the form of Exhibit O to demonstrate its
compliance with this Section 5.01(e) (other than in connection
with the (i) initial transfer of any Class C Certificate, Class P
Certificate or Residual Certificates by the Company to the Seller,
(ii) the transfer of any Class C Certificate, Class P Certificate
or Residual Certificates by the Seller to an Affiliate of the
Seller or to a trust, the depositor of which is an Affiliate of the
Seller, (iii) the transfer of any Class C Certificates, Class P
Certificates or Residual Certificates by an Affiliate of the Seller
to one or more entities sponsored by such Affiliate or to a trust
the depositor of which is one or more entities sponsored by such
Affiliate or (iv) a subsequent transfer of any Class C
Certificates, Class P Certificates or Residual Certificates to the
Seller or its designee by such entity or trust described in clauses
(ii) or (iii) above to which the Certificates were previously
transferred in reliance on clauses (ii) or (iii) above).

For so long as the Swap Agreement is in effect,
except as provided in the next sentence, no transfer of any Class C
Certificate shall be effective unless and until the proposed
transferee of such Class C Certificate provides to each of (a) the
Trustee, (b) the Supplemental Interest Trust Trustee, and (c) the
Swap Counterparty, 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)), and such proposed
transferee 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. 
The foregoing sentence shall not apply to any transfer of a Class C
Certificate if, immediately after such transfer, there would be
more than one Holder of the Class C Certificates.  If the
Holder of any Class C Certificates or any proposed transferee of a
Class C Certificate requests, the Supplemental Interest Trust
Trustee shall provide such Holder with the then current contact
information for the Swap Counterparty.  Except for transfers
described in the second sentence of this paragraph, any purported
sales or transfers of any Class C Certificate to a transferee that
does not comply with the requirements of this paragraph shall be
deemed null and void under this Agreement, and the Trustee shall
continue to treat the purported transferor as the owner of the
relevant Class C Certificates for all purposes of this
Agreement.  Upon receipt of any tax certification form
pursuant to this paragraph, the Supplemental Interest Trust Trustee
shall forward a copy of such form to the Swap
Counterparty.

If any Certificate or any interest therein is
acquired or held in violation of the provisions of the preceding
paragraphs, the next preceding permitted beneficial owner will be
treated as the beneficial owner of that Certificate retroactive to
the date of transfer to the purported beneficial owner.  Any
purported beneficial owner whose acquisition or holding of any such
Certificate or interest therein was effected in violation of the
provisions of the preceding paragraph shall indemnify and hold
harmless the Company, the Servicer, the Trustee, the Delaware
Trustee, and the Trust Fund from and against any and all
liabilities, claims, costs or expenses incurred by those parties as
a result of that acquisition or holding.

To the extent permitted under applicable law
(including, but not limited to, ERISA), neither the Trustee nor the
Company shall have any liability to any Person for any registration
or transfer of any Certificate that is in fact not permitted by
this Section 5.01 or for the Trustee (or any paying agent on its
behalf) making any payments due on such Certificates to the Holder
thereof or taking any other action with respect to such Holder
under the provisions of this Agreement so long as the transfer was
registered by Trustee in accordance with the foregoing
requirements.  In addition, none of the Trustee nor the
Company shall be required to monitor, determine or inquire as to
compliance with the transfer restrictions with respect to any
Certificate in the form of a Book-Entry Note, and neither the
Trustee nor the Company shall have any liability for transfers of
Book-Entry Notes or any interests therein made in violation of the
restrictions on transfer described in the Prospectus Supplement or
this Agreement.

Section 5.02         
Certificates Issuable in Classes; Distributions of Principal and
Interest; Authorized Denominations

The aggregate principal amount of the Certificates that may be
authenticated and delivered under this Agreement is limited to the aggregate
Principal Balance of the Mortgage Loans as of the Cut-Off Date, as specified in
the Preliminary Statement to this Agreement, except for Certificates
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Certificates pursuant to Section 5.03.  Such aggregate
principal amount shall be allocated among one or more Classes having
designations, types of interests, initial per annum Pass-Through Rates, original
Certificate Principal Balances and Assumed Final Maturity Dates as specified in
the Preliminary Statement to this Agreement. The aggregate Percentage Interest
of each Class of Certificates of which the Class Principal Balance equals zero
as of the Cut-Off Date that may be authenticated and delivered under this
Agreement is limited to 100%.  Certificates shall be issued in Authorized
Denominations.

Section 5.03         
Registration of Transfer and Exchange of Certificates

The Trustee on behalf of the Trust shall
cause to be maintained at one of its offices or at its designated
agent, a Certificate Register in which there shall be recorded the
name and address of each Certificateholder. Subject to such
reasonable rules and regulations as the Trustee may prescribe, the
Certificate Register shall be amended from time to time by the
Trustee or its agent to reflect notice of any changes received by
the Trustee or its agent pursuant to Section 10.06.  The
Trustee hereby appoints itself as the initial Certificate
Registrar.

Upon surrender for registration of transfer of
any Certificate to the Trustee at the Corporate Trust Office of the
Trustee, or such other address or agency as may hereafter be
provided to the Servicer in writing by the Trustee, the Trustee on
behalf of the Trust shall execute, and the Trustee or any
Authenticating Agent shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new
Certificates of Authorized Denominations. At the option of the
Certificateholders, Certificates may be exchanged for other
Certificates in Authorized Denominations of like Certificate
Principal Balance or Percentage Interest, as applicable, upon
surrender of the Certificates to be exchanged at any such office or
agency. Whenever any Certificates are so surrendered for exchange,
the Trustee on behalf of the Trust shall execute, and the Trustee,
or any Authenticating Agent, shall authenticate and deliver, the
Certificates which the Certificateholder making the exchange is
entitled to receive. Every Certificate presented or surrendered for
transfer shall be duly endorsed by, or be accompanied by a written
instrument of transfer in form satisfactory to the Trustee or any
Authenticating Agent and duly executed by, the Holder thereof or
such Holder’s attorney duly authorized in writing; provided
that, notwithstanding anything herein or in any Certificate to the
contrary, no Guaranteed Signature shall be requested if the
transfer is between the Depositor and any of its Affiliates or
between two Affiliates of the Depositor.

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

All Certificates surrendered for exchange or
transfer shall be cancelled by the Trustee or any Authenticating
Agent.

Section 5.04         
Mutilated, Destroyed, Lost or Stolen Certificates

If (i) any mutilated Certificate is
surrendered to the Trustee or any Authenticating Agent, or (ii) the
Trustee or any Authenticating Agent receives evidence to their
satisfaction of the destruction, loss or theft of any Certificate,
and there is delivered to the Trustee or any Authenticating Agent
such security or indemnity as may be required by them to save each
of them and the Trust harmless, then, in the absence of notice to
the Trustee or any Authenticating Agent (and in the case of the
Class C Certificates and the Class P Certificates, the NIMS
Insurer) that such Certificate has been acquired by a protected
purchaser, the Trustee on behalf of the Trust shall execute and the
Trustee or any Authenticating Agent shall authenticate and deliver,
in exchange for or in lieu of any such mutilated, destroyed, lost
or stolen Certificate, a new Certificate of like Certificate
Principal Balance or Percentage Interest as applicable. Upon the
issuance of any new Certificate under this Section 5.04, the
Trustee or any Authenticating Agent may require the payment of a
sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses
(including the fees and expenses of the Trustee or any
Authenticating Agent) connected therewith. Any replacement
Certificate issued pursuant to this Section 5.04 shall constitute
complete and indefeasible evidence of a beneficial interest in the
Trust as if originally issued, whether or not the lost or stolen
Certificate shall be found at any time.

Section 5.05         
Persons Deemed Owners

The Company, the Servicer, the Trust, the
Trustee, the Delaware Trustee, the NIMS Insurer 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 Article IV and for all other
purposes whatsoever, and none of the Company, the Servicer, the
Trust, the Trustee, the Delaware Trustee, the NIMS Insurer the
Certificate Registrar or any agent thereof shall be affected by
notice to the contrary.

Section 5.06         
[Reserved].

Section 5.07         
Book-Entry for Book-Entry Certificates

Notwithstanding the foregoing, the
Book-Entry Certificates, upon original issuance, shall be issued in
the form of one or more word-processed Certificates of Authorized
Denomination representing the Book-Entry Certificates, to be
delivered to DTC, the initial Clearing Agency, by, or on behalf of,
the Company. The Book-Entry Certificates shall initially be
registered on the Certificate Register in the name of Cede &
Co., the nominee of DTC, as the initial Clearing Agency, and no
Beneficial Holder shall receive a definitive certificate
representing such Beneficial Holder’s interest in any Class
of Book-Entry Certificate, except as provided above and in Section
5.09.  Each Book-Entry Certificate shall bear the following
legend:

Unless this
Certificate is presented by an authorized representative of The
Depositor Trust Company, a New York corporation
(“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

Unless and until definitive, fully registered
Book-Entry Certificates (the “Definitive
Certificates”) have been issued to the Beneficial Holders
pursuant to Section 5.09:

(a)        the
provisions of this Section 5.07 shall be in full force and effect
with respect to the Book-Entry Certificates;

(b)        the
Servicer and the Trustee may deal with the Clearing Agency for all
purposes with respect to the Book-Entry Certificates (including the
making of distributions on the Book-Entry Certificates) as the sole
Certificateholder;

(c)        to
the extent that the provisions of this Section 5.07 conflict with
any other provisions of this Agreement, the provisions of this
Section 5.07 shall control; and

(d)        the
rights of the Beneficial Holders shall be exercised only through
the Clearing Agency and the DTC Participants and shall be limited
to those established by law and agreements between such Beneficial
Holders and the Clearing Agency and/or the DTC Participants.
Pursuant to the Depositary Agreement, unless and until Definitive
Certificates are issued pursuant to Section 5.09, the initial
Clearing Agency will make book-entry transfers among the DTC
Participants and receive and transmit distributions of principal
and interest on the related Class of Book-Entry Certificates to
such DTC Participants.

For purposes of any provision of this Agreement
requiring or permitting actions with the consent of, or at the
direction of, Holders of Book-Entry Certificates evidencing a
specified Percentage Interest, such direction or consent may be
given by the Clearing Agency at the direction of Beneficial Holders
owning Book-Entry Certificates evidencing the requisite Percentage
Interest represented by the Book-Entry Certificates. The Clearing
Agency may take conflicting actions with respect to the Book-Entry
Certificates to the extent that such actions are taken on behalf of
the Beneficial Holders.

Section 5.08         
Notices to Clearing Agency

Whenever notice or other communication to
the Certificateholders is required under this Agreement, unless and
until Definitive Certificates shall have been issued to the related
Certificateholders pursuant to Section 5.09, the Trustee shall give
all such notices and communications specified herein to be given to
Holders of the Book-Entry Certificates to the Clearing Agency which
shall give such notices and communications to the related DTC
Participants in accordance with its applicable rules, regulations
and procedures.

Section 5.09         
Definitive Certificates

If (a) the Clearing Agency or the Servicer notifies the Trustee in writing that the Clearing Agency
is no longer willing or able to discharge properly its
responsibilities under the Depositary Agreement with respect to the
Book-Entry Certificates and the Trustee or the Servicer is unable
to locate a qualified successor, (b) the Servicer, to the extent
permitted by law, advises the Trustee in writing that it elects to
terminate the book-entry system with respect to the Book-Entry
Certificates through the Clearing Agency or (c) after the
occurrence of an Event of Default, Certificateholders holding
Book-Entry Certificates evidencing Percentage Interests aggregating
not less than 662⁄3% of the aggregate Certificate Principal
Balance of such Certificates advise the Trustee and the Clearing
Agency through DTC Participants in writing that the continuation of
a book-entry system with respect to the Book-Entry Certificates
through the Clearing Agency is no longer in the best interests of
the Certificateholders with respect to such Certificates, the
Trustee shall notify all Certificateholders of Book-Entry
Certificates of the occurrence of any such event and of the
availability of Definitive Certificates. Upon surrender to the
Trustee of the Book-Entry Certificates by the Clearing Agency,
accompanied by registration instructions from the Clearing Agency
for registration, the Trustee on behalf of the Trust shall execute
and the Trustee or any Authenticating Agent shall authenticate and
deliver the Definitive Certificates. Neither the Company, the
Servicer, the Trust nor the Trustee shall be liable for any delay
in delivery of such instructions and may conclusively rely on, and
shall be protected in relying on, such instructions. Upon the
issuance of Definitive Certificates for all of the Certificates all
references herein to obligations imposed upon or to be performed by
the Clearing Agency shall be deemed to be imposed upon and
performed by the Trustee, to the extent applicable with respect to
such Definitive Certificates, and the Trustee shall recognize the
Holders of Definitive Certificates as Certificateholders
hereunder.

Section 5.10         
Office for Transfer of Certificates

The Trustee on behalf of the Trust shall maintain an office or
agency where Certificates may be surrendered for registration of transfer or
exchange. The Corporate Trust Office is initially designated for said purposes.

Section 5.11         
Nature of Certificates

The Certificates shall be personal
property giving only the rights specifically set forth therein and
in this Agreement.  The Certificates shall have no preemptive
or similar rights and when issued and delivered to the Holders
against payment of the purchase price therefor will be fully paid
and nonassessable by the Trust.  The Holders of the
Certificates, in their capacities as such, shall be entitled to the
same limitation of personal liability extended to stockholders of
private corporations for profit organized under the General
Corporation Law of the State of Delaware. THE RECEIPT AND
ACCEPTANCE OF A CERTIFICATE OR ANY INTEREST THEREIN BY OR ON BEHALF
OF A HOLDER OR ANY BENEFICIAL OWNER, WITHOUT ANY SIGNATURE OR
FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL
ACCEPTANCE BY THE HOLDER AND ALL OTHERS HAVING A BENEFICIAL
INTEREST IN SUCH CERTIFICATE OF ALL THE TERMS AND PROVISIONS OF
THIS AGREEMENT, AND SHALL CONSTITUTE THE AGREEMENT OF THE TRUST,
SUCH HOLDER AND SUCH OTHERS THAT THE TERMS AND PROVISIONS OF THIS
AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS BETWEEN THE
TRUST AND SUCH HOLDER AND SUCH OTHERS.

ARTICLE VI

The Company and the
Servicer

Section 6.01         
Liability of the Company and the Servicer

Each of the Company and the Servicer
shall be liable in accordance herewith only to the extent of the
obligations specifically imposed upon and undertaken by the Company
or the Servicer, as applicable, herein.

Section 6.02         
Merger or Consolidation of the Company or the Servicer

Any Corporation into which either the
Company or the Servicer may be merged or consolidated, or any
Corporation resulting from any merger, conversion or consolidation
to which either the Company or the Servicer shall be a party, or
any Corporation succeeding to the business of either the Company or
the Servicer, shall be the successor of the Company or the
Servicer, as applicable, 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.

Section 6.03         
Limitation on Liability of the Company, the Servicer and
Others

Neither the Company nor the Servicer nor
any of the directors, officers, employees or agents of the Company
or the Servicer shall be under any liability to the Trust, the
Holders of the REMIC I Regular Interests, REMIC II Regular
Interests, REMIC III Regular Interests, Class L6-SW Regular
Interest or the Certificateholders for any action taken by such
Person or for such Person’s 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 Company, the Servicer or any such Person 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 duties and obligations
hereunder. Each of the Company, the Servicer and any director,
officer, employee or agent of the Company or the Servicer, as
applicable, may rely in good faith on any document of any kind
properly executed and submitted by any Person respecting any
matters arising hereunder. Each of the Company, the Servicer and
any director, officer, employee or agent of the Company or the
Servicer, as applicable, shall be indemnified by the Trust and held
harmless against any loss, liability or expense incurred in
connection with any legal action relating to this Agreement or the
Certificates, other than any loss, liability or expense relating to
any Mortgage Loan (other than as otherwise permitted in this
Agreement) or incurred by reason of willful misfeasance, bad faith
or gross negligence in the performance of duties hereunder or by
reason of reckless disregard of obligations and duties hereunder.
Neither the Company nor the Servicer shall be under any obligation
to appear in, prosecute or defend any legal action which is not
incidental to its duties related to the Mortgage Loans in
accordance with this Agreement and which in its opinion may involve
it in any expense or liability; provided, however, that each
of the Company and the Servicer may in its discretion undertake any
such action which it may deem necessary or desirable with respect
to the Mortgage Loans, this Agreement, the Certificates or the
rights and duties of the parties hereto and the interests of the
Certificateholders hereunder. In such event, the legal expenses and
costs of such action and any liability resulting therefrom shall be
expenses, costs and liabilities of the Trust and the Company and
the Servicer shall be entitled to be reimbursed, as applicable,
therefor out of the Collection Account and/or the Distribution
Account, as provided by Section 3.11.

Section 6.04         
Neither the Company nor the Servicer May Resign

Neither the Company nor the Servicer
shall resign from its respective obligations and duties hereby
imposed on it, as applicable, except upon determination by the
Company or the Servicer that its respective duties hereunder are no
longer permissible under applicable law.  Any such
determination permitting the resignation of the Company or the
Servicer shall be evidenced by an Opinion of Counsel to such effect
delivered to the Trustee. No such resignation shall become
effective until the Trustee or a successor Servicer shall have
assumed the Servicer’s responsibilities and obligations in
accordance with Section 7.02 hereof.

The Servicer shall give prompt written notice to
the Company of any information received by the Servicer which
affects or relates to an ongoing obligation or right of the Company
under this Agreement.

Section 6.05         
Trustee Access

The Servicer shall afford the Company and
the Trustee, upon reasonable notice, during normal business hours
access to all records maintained by the Servicer, in respect of the
Mortgage Loans and in respect of its rights and obligations
hereunder and access to such of its officers as are responsible for
such obligations.  Upon reasonable request, the Servicer,
shall furnish the Company and the Trustee with its most recent
financial statements (or, for so long as Washington Mutual Bank is
the Servicer, the most recent consolidated financial statements for
Washington Mutual Bank appearing in the audited financial
statements of Washington Mutual, Inc., or the entity with whose
financial statements the financial statements of Washington Mutual
Bank are consolidated) and such other information as it possesses,
and which it is not prohibited by law or, to the extent applicable,
binding obligations to third parties with respect to
confidentiality, from disclosing, regarding its business, affairs,
property and condition, financial or otherwise.

ARTICLE VII

Default

Section 7.01         
Events of Default

"Event of Default," wherever used herein, means any one of the
following events:

(i)        
any failure by the Servicer to remit to the Trustee for
distribution to the Certificateholders any payment (other than an
Advance required to be made from its own funds on any Servicer
Remittance Date pursuant to Section 4.02) required to be made
under the terms of the Certificates and this Agreement which
continues unremedied for a period of one Business Day after the
date upon which written notice of such failure, requiring the same
to be remedied, shall have been given to the Servicer by the
Company, the Trustee (in which case notice shall be provided by
telecopy), or to the Servicer, the Company and the Trustee by the
NIMS Insurer or the Holders of Certificates entitled to at least
25% of the Voting Rights; or

(ii)       
any failure on the part of the Servicer duly to observe or perform
in any material respect any of the covenants or agreements on the
part of the Servicer contained in this Agreement which continues
unremedied for a period of 45 days (30 days in the case of any
failure to maintain a Sub‐Servicing Agreement with an
eligible Sub‐Servicer to the extent required in accordance
with Section 3.02(c)) after the earlier of (i) the date
on which written notice of such failure, requiring the same to be
remedied, shall have been given to the Servicer by the Company or
the Trustee, or to the Servicer, the Company and the Trustee by the
NIMS Insurer or the Holders of Certificates entitled to at least
25% of the Voting Rights and (ii) actual knowledge of such
failure by a Servicing Officer of the Servicer; 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, marshaling of
assets and liabilities or similar proceeding, or for the
winding‐up or liquidation of its affairs, shall have been
entered against the Servicer and if such proceeding is being
contested by the Servicer in good faith, such decree or order shall
have remained in force undischarged or unstayed for a period of 60
days or results in the entry of an order for relief or any such
adjudication or appointment; or

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

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

(vi)       any
failure of the Servicer to make any Advance on any Servicer
Remittance Date required to be made from its own funds pursuant to
Section 4.03 which continues unremedied until the opening of
business on the Business Day immediately following the Servicer
Remittance Date.

If an Event of Default described in clauses
(i) through (v) of this Section shall occur, then, and in
each and every such case, so long as such Event of Default shall
not have been remedied, the Company or the Trustee may, and at the
written direction of the NIMS Insurer or the Holders of
Certificates entitled to at least 51% of Voting Rights, the Trustee
shall, by notice in writing to the NIMS Insurer and the Servicer
(and to the Company if given by the Trustee or to the Trustee if
given by the Company), terminate all of the rights and obligations
of the Servicer in its capacity as Servicer under this Agreement,
to the extent permitted by law, and in and to the Mortgage Loans
and the proceeds thereof. 

If an Event of Default described in clause (vi)
of this Section 7.01 shall occur, the Trustee shall, by notice in
writing to the Servicer, which may be delivered by telecopy,
immediately suspend all of the rights and obligations of the
Servicer thereafter arising under this Agreement, but without
prejudice to any rights it may have as a Certificateholder or to
reimbursement of advances, and the Trustee shall act as provided in
Section 7.02 to carry out the duties of the Servicer, including the
obligation to make any Advance the nonpayment of which was an Event
of Default described in clause (vi) of this
Section 7.01.  Any such action taken by the Trustee must
be prior to the distribution on the relevant Distribution
Date.  If the Servicer shall within two Business Days
following such suspension remit to the Trustee the amount of any
Advance (plus interest accrued thereon at a per annum rate equal to
the prime rate for United States money center commercial banks as
published in The Wall Street Journal) the nonpayment of
which by the Servicer was an Event of Default described in
clause (vi) of this Section 7.01, the Trustee, subject to
the last sentence of this paragraph, shall permit the Servicer to
resume its rights and obligations as Servicer hereunder.  The
Servicer agrees that it will reimburse the Trustee for actual,
necessary and reasonable costs incurred by the Trustee because of
action taken pursuant to clause (vi) of this Section 7.01.
 The Servicer agrees that if an Event of Default as described
in clause (vi) of this Section 7.01 shall occur more than two times
in any twelve month period, the Trustee shall be under no
obligation to permit the Servicer to resume its rights and
obligations as Servicer hereunder.  If the Servicer does not
remit to the Trustee the amount of such Advance within two Business
Days following such suspension, the Trustee, shall, by notice in
writing to the Servicer (delivered immediately by facsimile and
effective on the date of acknowledgement of receipt), the NIMS
Insurer and the Company, terminate all of the rights and
obligations of the Servicer in its capacity as Servicer under this
Agreement and in and to the Mortgage Loans and the proceeds
thereof. 

On or after the receipt by the Servicer of such
written notice, all authority and power of the Servicer under this
Agreement, whether with respect to the Certificates (other than as
a Holder of any Certificate) or the Mortgage Loans or otherwise,
shall pass to and be vested in the Trustee pursuant to and under
this Section and, without limitation, the Trustee is hereby
authorized and empowered, as attorney‐in‐fact or
otherwise, to execute and deliver on behalf of and at the expense
of the Servicer, any and all documents and other instruments and to
do or accomplish all other acts or things necessary or appropriate
to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of the Mortgage
Loans and related documents, or otherwise.  The Servicer
agrees, at its sole cost and expense, promptly (and in any event no
later than ten Business Days subsequent to such notice) to provide
the Trustee with all documents and records requested by it to
enable it to assume the Servicer’s functions under this
Agreement, and to cooperate with the Trustee in effecting the
termination of the Servicer’s responsibilities and rights
under this Agreement, including, without limitation, the transfer
within one Business Day to the Trustee for administration by it of
all cash amounts which at the time shall be or should have been
credited by the Servicer to the Collection Account held by or on
behalf of the Servicer, or any REO Account or Servicing Account
held by or on behalf of the Servicer or thereafter be received with
respect to the Mortgage Loans or any REO Property (provided,
however, that the Servicer shall continue to be entitled to
receive all amounts accrued or owing to it under this Agreement on
or prior to the date of such termination, whether in respect of
Advances or otherwise, and shall continue to be entitled to the
benefits of Section 6.03, notwithstanding any such
termination, with respect to events occurring prior to such
termination).  For purposes of this Section 7.01, the
Trustee shall not be deemed to have knowledge of a Event of Default
unless a Responsible Officer of 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 Event of Default is received by the Trustee and such notice
references the Certificates, any of the Trust REMICs or this
Agreement.

The Trustee shall be entitled to be reimbursed by
the Servicer for all costs associated with the transfer of
servicing from the predecessor servicer, including without
limitation, any costs or expenses associated with the complete
transfer of all servicing data and the completion, correction or
manipulation of such servicing data as may be required by the
Trustee to correct any errors or insufficiencies in the servicing
data or otherwise to enable the Trustee to service the Mortgage
Loans properly and effectively.

Section 7.02         
Trustee to Act; Appointment of Successor

On and
after the time the Servicer receives a notice of termination, the
Trustee shall be the successor in all respects to the Servicer in
its capacity as Servicer under this Agreement and the transactions
set forth or provided for herein and shall be subject to all the
responsibilities, duties and liabilities relating thereto and
arising thereafter, which shall be assumed by the Trustee (except
for any representations or warranties of the Servicer under this
Agreement and its obligation to deposit amounts in respect of
losses pursuant to Section 3.12) by the terms and provisions
hereof including, without limitation, the Servicer’s
obligations to make Advances pursuant to Section 4.02;
provided, however, that if the Trustee is prohibited
by law or regulation from obligating itself to make advances
regarding delinquent Mortgage Loans, then the Trustee shall not be
obligated to make Advances pursuant to Section 4.02; and
provided further, that any failure to perform such duties or
responsibilities caused by the Servicer’s failure to provide
information required by Section 7.01 shall not be considered a
default by the Trustee as successor to the Servicer hereunder;
provided, however, it is understood and acknowledged
by the parties that there will be a period of transition (not to
exceed 90 days) before the servicing transfer is fully
effected.  As compensation therefor, the Trustee shall be
entitled to the Servicing Fee and all funds relating to the
Mortgage Loans to which the Servicer would have been entitled if it
had continued to act hereunder (other than amounts which were due
or would become due to the Servicer prior to its termination or
resignation).  Notwithstanding anything herein to the
contrary, in no event shall the Trustee be liable for any Servicing
Fee or for any differential in the amount of the Servicing Fee paid
hereunder and the amount necessary to induce any successor Servicer
to act as successor Servicer under this Agreement and the
transactions set forth or provided for herein.  After the
Servicer receives a notice of termination, notwithstanding the
above and subject to the next paragraph, the Trustee may, if it
shall be unwilling to so act, or shall, if it is unable to so act
or if it is prohibited by law from making advances regarding
delinquent Mortgage Loans, or if the NIMS Insurer or the Holders of
Certificates entitled to at least 51% of the Voting Rights so
request in writing to the Trustee, promptly appoint, or petition a
court of competent jurisdiction to appoint, an established mortgage
loan servicing institution acceptable to each Rating Agency, having
a net worth of not less than $15,000,000 and reasonably acceptable
to the NIMS Insurer, as the successor to the Servicer under this
Agreement in the assumption of all or any part of the
responsibilities, duties or liabilities of the Servicer under this
Agreement.

No appointment of a successor to the Servicer
under this Agreement shall be effective until the assumption by the
successor of all of the Servicer’s responsibilities, duties
and liabilities hereunder.  In connection with such
appointment and assumption described herein, the Trustee may make
such arrangements for the compensation of such successor out of
payments on Mortgage Loans as it and such successor shall agree;
provided, however, that no such compensation shall be
in excess of that permitted the Servicer as such hereunder. 
The Company, the Trustee and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate
any such succession.  Pending appointment of a successor to
the Servicer under this Agreement, the Trustee shall act in such
capacity as hereinabove provided.

In connection with the termination or resignation
of the Servicer hereunder, either (i) the successor Servicer,
including the Trustee if the Trustee is acting as successor
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, in
which case the predecessor Servicer shall cooperate with the
successor Servicer in causing MERS to revise its records to reflect
the transfer of servicing to the successor Servicer as necessary
under MERS’ rules and regulations, or (ii) the predecessor
Servicer shall cooperate with the successor Servicer in causing
MERS to execute and deliver an assignment of Mortgage in recordable
form to transfer the Mortgage from MERS to the Trustee and to
execute and deliver such other notices, documents and other
instruments as may be necessary or desirable to effect a transfer
of such Mortgage Loan or servicing of such Mortgage Loan on the
MERS® System to the successor Servicer. The predecessor
Servicer shall file or cause to be filed any such assignment in the
appropriate recording office. The predecessor Servicer shall bear
any and all fees of MERS, costs of preparing any assignments of Mortgage, and
fees and costs of filing any assignments of Mortgage that
may be required under this Section 7.02(a).

Upon removal or resignation of the Servicer, the
Trustee, with the cooperation of the Company, (x) shall
solicit bids for a successor Servicer as described below and
(y) pending the appointment of a successor Servicer as a
result of soliciting such bids, shall serve as Servicer of the
Mortgage Loans serviced by such predecessor Servicer.  The
Trustee shall solicit, by public announcement, bids from housing
and home finance institutions, banks and mortgage servicing
institutions meeting the qualifications set forth in the first
paragraph of this Section 7.02 (including the Trustee or any
affiliate thereof).  Such public announcement shall specify
that the successor Servicer shall be entitled to the servicing
compensation agreed upon between the Trustee, the successor
Servicer and the Company; provided, however, that no
such fee shall exceed the Servicing Fee.  Within thirty days
after any such public announcement, the Trustee with the
cooperation of the Company, shall negotiate in good faith and
effect the sale, transfer and assignment of the servicing rights
and responsibilities hereunder to the qualified party submitting
the highest satisfactory bid as to the price they will pay to
obtain such servicing.  The Trustee, upon receipt of the
purchase price shall pay such purchase price to the Servicer being
so removed, after deducting from any sum received by the Trustee
from the successor to the Servicer in respect of such sale,
transfer and assignment all costs and expenses of any public
announcement and of any sale, transfer and assignment of the
servicing rights and responsibilities reasonably incurred
hereunder.  After such deductions, the remainder of such sum
shall be paid by the Trustee to the Servicer at the time of such
sale.

Section 7.03         
Notification to Certificateholders.

(a)               
Upon any termination of the Servicer pursuant to Section 7.01
above or any appointment of a successor to the Servicer pursuant to
Section 7.02 above, the Trustee shall give prompt written
notice thereof to Certificateholders at their respective addresses
appearing in the Certificate Register and to the NIMS
Insurer. 

(b)              
Not later than the later of 60 days after the occurrence of any
event, which constitutes or which, with notice or lapse of time or
both, would constitute a Event of Default or five days after a
Responsible Officer of the Trustee becomes aware of the occurrence
of such an event, the Trustee shall transmit by mail to all Holders
of Certificates and to the NIMS Insurer and the Swap Counterparty
notice of each such occurrence, unless such default or Event of
Default shall have been cured or waived.

Section 7.04         
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 or Event of Default hereunder may, with the
consent of the NIMS Insurer, waive such default or Event of
Default; provided, however, that a default or Event
of Default under clause (i) or (vii) of Section 7.01 may
be waived only by all of the Holders of the Regular Certificates
and the NIMS Insurer (as evidenced by the written consent of the
NIMS Insurer).  Upon any such waiver of a default or Event of
Default, such default or Event of Default shall cease to exist and
shall be deemed to have been remedied for every purpose
hereunder.  No such waiver shall extend to any subsequent or
other default or Event of Default or impair any right consequent
thereon except to the extent expressly so waived.

ARTICLE VIII

Concerning the
Trustees

Section 8.01         
Duties of Trustees.

(a)               
The Trustee, prior to the occurrence of an Event of Default and
after the curing of all Events of Default which may have occurred,
undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement. In case an Event of
Default has occurred (which has not been cured or waived) the
Trustee shall exercise such of the rights and powers vested in it
by this Agreement, and use the same degree of care and skill in its
exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own
affairs.

(b)              
The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other
instruments furnished to it which are specifically required to be
furnished to it pursuant to any provision of this Agreement, shall
examine them to determine whether they are in the form required by
this Agreement; provided, however, that the Trustee
shall not be responsible for the accuracy or content of any such
certificate, statement, opinion, report, or other order or
instrument furnished by the Company or Servicer to the Trustee
pursuant to this Agreement.

(c)               
No provision of this Agreement shall be construed to relieve the
Trustee or the Delaware Trustee from liability for its own
negligent action, its own negligent failure to act or its own
willful misconduct; provided, however, that:

(i)                 
Prior to the occurrence of an Event of Default and after the curing
of all such Events of Default which may have occurred, the duties
and obligations of the Trustee shall be determined solely by the
express provisions of this Agreement,

(ii)               
Neither the Trustee nor the Delaware Trustee 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 Delaware Trustee, and, in the absence of bad faith on the
part of the Trustee or the Delaware Trustee, such trustee may
conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any
certificates or opinions furnished to such trustee and conforming
to the requirements of this Agreement; and

(iii)              
Neither the Trustee nor the Delaware Trustee shall be personally
liable with respect to any action taken or omitted to be taken by
it in good faith in accordance with the direction of the NIMS
Insurer or the Certificateholders holding Certificates which
evidence Percentage Interests aggregating not less than 25% of
REMIC III relating to the time, method and place of conducting any
proceeding for any remedy available to such trustee, or relating to
the exercise of any trust or power conferred upon such trustee
under this Agreement.

(d)              
Within ten Business Days after the occurrence of any Event of
Default known to the Trustee, the Trustee shall transmit by mail to
the Rating Agencies notice of each Event of Default.  Within
90 days after the occurrence of any Event of Default known to the
Trustee, the Trustee shall transmit by mail to all
Certificateholders (with a copy to the Rating Agencies) notice of
each Event of Default, unless such Event of Default shall have been
cured or waived; provided, however, the Trustee shall
be protected in withholding such notice if and so long as a
Responsible Officer of the Trustee in good faith determines that
the withholding of such notice is in the best interests of the
Certificateholders; and provided, further, that in
the case of any Event of Default of the character specified in
Section 7.01(i) or Section 7.01(ii) no such notice to
Certificateholders or to the Rating Agencies shall be given until
at least 30 days after the occurrence thereof.

Section 8.02         
Certain Matters Affecting the Trustees

Except as otherwise provided in Section
8.01:

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

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

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

(iv)       Prior to
the occurrence of an Event of Default hereunder and after the
curing of all Events of Default which may have occurred, neither
the Trustee nor the Delaware Trustee 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 NIMS Insurer or the
Holders of Certificates evidencing Percentage Interests aggregating
not less than 25% of REMIC III; provided, however, that if
the payment within a reasonable time to the Trustee or the Delaware
Trustee of the costs, expenses or liabilities likely to be incurred
by it in the making of such investigation is, in the opinion of
such trustee, not reasonably assured to such trustee by the
security, if any, afforded to it by the terms of this Agreement,
such trustee may require reasonable indemnity against such expense
or liability as a condition to proceeding;

(v)       
Each of the Trustee and the Delaware Trustee may execute the trust
or any of the powers hereunder or perform any duties hereunder
either directly or by or through agents or attorneys selected by it
with reasonable care or designated by the Servicer;

(vi)       Neither
the Trustee nor the Delaware Trustee shall be deemed to have
knowledge or notice of any matter, including without limitation an
Event of Default, unless actually known by a Responsible Officer,
or unless written notice thereof referencing this Agreement or the
Certificates is received at the Notice Address of such
trustee;

(vii)      In no event
shall the Trustee or the Delaware Trustee be held liable for acts
or omissions of the Servicer or the other trustee (excepting the
Trustee’s own actions as Servicer).  No provision of
this Agreement shall require the Trustee or the Delaware Trustee to
expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder (except
for the giving of required notices), or in the exercise of any of
its rights or powers, if it shall have reasonable grounds for
believing the repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured to
it;

(viii)      When the
Trustee is acting as Servicer pursuant to Section 7.02, and to the
extent permitted under applicable law, the Trustee is hereby
authorized, in making or disposing of any investment permitted
hereunder, to deal with itself (in its individual capacity) or with
any one or more of its affiliates, whether it or its affiliate is
acting as an agent of the Trustee or of any third person or dealing
as principal for its own account; and

(ix)       Except
as expressly provided in this Agreement, in no event shall the
Trustee be under any duty or obligation to monitor, determine,
investigate or compel compliance by the Trust with the requirements
of the Statutory Trust Statute.

(x)        In
no event shall the Trustee be obligated or responsible for
preparing, executing, filing or delivering in respect of the Trust
or another party either any report or filing required by the
Commission to be prepared, executed, filed or delivered in respect
of the Trust or another party.

(xi)       The
Supplemental Interest Trust Trustee shall be entitled to the same
rights, protections, immunities and indemnities afforded to the
Trustee hereunder.

Section 8.03         
Trustees Not Liable for Certificates or Mortgage Loans

The recitals contained herein (other than
those relating to the due organization, power and authority of the
Trustee and the Delaware Trustee) and in the Certificates (other
than the execution of, and certificate of authentication on, the
Certificates) shall not be taken as the statements of the Trustee
or the Delaware Trustee, and neither the Trustee nor the Delaware
Trustee assumes any responsibility for their correctness. Neither
the Trustee nor the Delaware Trustee makes any representations as
to the validity or sufficiency of this Agreement, the Mortgage Loan
Purchase Agreement or of the Certificates or any Mortgage Loan.
Neither the Trustee nor the Delaware Trustee shall be accountable
for the use or application by the Company, the Servicer or the
Trust, as applicable, of any of the Certificates or of the proceeds
of such Certificates, or for the use or application of any funds
paid to the Servicer or the Company in respect of the Mortgage
Loans or deposited into the Collection Account, the Investment
Account or the Distribution Account by the Servicer or the
Company.

Section 8.04         
Trustees May Own Certificates

The Trustee, the Delaware Trustee or any
agent or affiliate of such trustee, in its individual or any other
capacity, may become the owner or pledgee of Certificates with the
same rights it would have if it were not trustee.

Section 8.05         
Trustees’ Fees and Expenses

On the Closing Date, the Servicer shall
pay to the Trustee as specified in a separate agreement between the
Servicer and the Trustee.  The Trustee shall withdraw from the
Distribution Account on each Distribution Date and pay to itself
the Trustee Fee for such Distribution Date and any earnings (net of
losses) on amounts on deposit in the Distribution Account. 
The right to receive the Trustee Fee may not be transferred in
whole or in part except in connection with the transfer of all of
the Trustee’s responsibilities and obligations under this
Agreement.  Subject to separate written agreements with the
Delaware Trustee, the Servicer covenants and agrees to, and the
Servicer shall, pay the Delaware Trustee from time to time, and the
Delaware Trustee shall be entitled to payment for all services
rendered by it in the exercise and performance of any of the powers
and duties hereunder of the Delaware Trustee. Except as otherwise
expressly provided herein, the Servicer shall pay or reimburse each
of the Trustee and the Delaware Trustee upon such trustee’s
request for all reasonable expenses and disbursements incurred or
made by such trustee in accordance with any of the provisions of
this Agreement, including any such expenses incurred or made in
connection with a transfer of servicing, and shall indemnify the
institution acting as such trustee, both in its individual capacity
and as trustee, from any loss, liability or expense incurred by it
hereunder (including the reasonable compensation and the expenses
and disbursements of its counsel and of all persons not regularly
in its employ and any expenses which arise out of or are imposed
upon the Trustee or the Delaware Trustee in connection with the
creation, operation or termination of the Trust) except any such
expense or disbursement as may arise from its own negligence or bad
faith. Such obligation shall survive the termination of this
Agreement or resignation or removal of the Trustee or the Delaware
Trustee. The Trustee shall, at its expense, prepare or cause to be
prepared all federal and state income tax and franchise tax and
information returns relating to REMIC I, REMIC II, REMIC III, REMIC
IV, REMIC V and REMIC VI required to be prepared or filed by the
Trustee or the Delaware Trustee and shall indemnify the Delaware
Trustee for any liability of such trustees arising from any error
in such returns.

Section 8.06         
Eligibility Requirements for Trustees

The Trustee hereunder shall at all times
be (i) an institution insured by the FDIC, (ii) a Corporation
organized and doing business under the laws of the United States of
America or of any state, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination
by federal or state authority and (iii) acceptable to the Rating
Agencies. If such Corporation publishes reports of condition at
least annually, pursuant to law or to the requirements of any
aforementioned supervising or examining authority, then for the
purposes of this Section 8.06, the combined capital and surplus of
such Corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so
published.  The Delaware Trustee hereunder shall at all times
have its principal place of business in the State of Delaware and
shall satisfy the applicable requirements under the laws of the
State of Delaware authorizing it to act as the Delaware trustee of
the Trust.  In case at any time the Trustee or the Delaware
Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.06, such trustee shall resign
immediately in the manner and with the effect specified in Section
8.07.

Section 8.07         
Resignation and Removal of Trustees

Each of the Trustee and the Delaware
Trustee may at any time resign and be discharged from the trust
hereby created by giving written notice thereof to the Servicer,
the Company, the Certificateholders and the NIMS Insurer. Upon
receiving such notice of resignation, the Servicer shall promptly
appoint a successor trustee by written instrument, in duplicate, a
copy of which instrument shall be delivered to the resigning
trustee, the successor trustee and the NIMS Insurer. If no
successor trustee shall have been so appointed and shall have
accepted appointment within 30 days after the giving of such notice
of resignation, the resigning trustee may petition any court of
competent jurisdiction for the appointment of a successor
trustee.

If at any time the Trustee or the Delaware
Trustee shall cease to be eligible in accordance with the
provisions of Section 8.06 and shall fail to resign after written
request therefor by the Servicer or the NIMS Insurer, or if at any
time the Trustee or the Delaware Trustee shall become incapable of
acting, or shall be adjudged bankrupt or insolvent, or a receiver
of such trustee or of its property shall be appointed, or any
public officer shall take charge or control of such trustee or of
its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Servicer, with the consent of
the NIMS Insurer, or the NIMS Insurer may remove such trustee and
appoint a successor trustee by written instrument, in triplicate,
copies of which instrument shall be delivered to the trustee so
removed, the trustee continuing in its capacity and the successor
trustee.

The Holders of Certificates evidencing Percentage
Interests aggregating more than 50% of REMIC III, with the consent
of the NIMS Insurer, may at any time remove the Trustee or the
Delaware Trustee and appoint a successor trustee by written
instrument or instruments, in triplicate, signed by the NIMS
Insurer or such Holders or their attorneys in-fact duly authorized,
one complete set of which instruments shall be delivered to the
Servicer, one complete set to the Trustee so removed, one complete
set to the successor so appointed and one complete set to the NIMS
Insurer.

Any resignation or removal of the Trustee or the
Delaware Trustee and appointment of a successor trustee pursuant to
any of the provisions of this Section 8.07 shall become effective
upon acceptance of appointment by the successor trustee as provided
in Section 8.08.  Any expenses associated with the resignation
of the Trustee or the Delaware Trustee shall be borne by such
trustee, and any expenses associated with the removal of the
Trustee or the Delaware Trustee shall be borne by the
Servicer.

Section 8.08         
Successor Trustee

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

No successor trustee shall accept appointment as
provided in this Section 8.08 unless at the time of such
appointment such successor trustee shall be eligible under the
provisions of Section 8.06 and the appointment of such successor
trustee shall not result in a downgrading of the ratings of any of
the Other NIM Notes or of any Class of Certificates or of the
shadow ratings of the Insured NIM Notes (without giving effect to
any insurance policy issued by the NIMS Insurer) by any Rating
Agency, as evidenced by a letter from each Rating
Agency. 

Upon acceptance of appointment by a successor
trustee as provided in this Section 8.08, the Servicer shall mail
notice of the succession of such trustee hereunder to (i) all
Certificateholders at their addresses as shown in the Certificate
Register, (ii) the Rating Agencies and (iii) the NIMS Insurer. If
the Servicer fails to mail such notice within ten days after
acceptance of appointment by the successor trustee, the successor
trustee shall cause such notice to be mailed.

It is acknowledged and agreed that the Person
serving as Trustee hereunder shall also serve as Supplemental
Interest Trust Trustee.  If the Trustee resigns or is removed
as Trustee hereunder, the Trustee shall also cease to be the
Supplemental Interest Trust Trustee hereunder.  Any person
appointed as successor trustee hereunder shall also be required to
serve as successor supplemental interest trust trustee.

Section 8.09         
Merger or Consolidation of Trustee

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

Section 8.10         
Appointment of Co-Trustee or Separate Trustee

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 assets of
the Trust may at the time be located, the Servicer and the Trustee
or the Delaware Trustee, as applicable, acting jointly shall have
the power and shall execute and deliver all instruments to appoint
one or more Persons approved by such trustee and the NIMS Insurer
to act as co-trustee or co-trustees, jointly with such trustee, or
separate trustee or separate trustees, of all or any part of the
assets of the Trust and to vest in such Person or Persons, in such
capacity, such title to the assets of the Trust, or any part
thereof, and, subject to the other provisions of this Section 8.10,
such powers, duties, obligations, rights and trusts as the Servicer
and the Trustee or the Delaware Trustee, as applicable, may
consider necessary or desirable; provided, that the Trustee
or the Delaware Trustee, as applicable, shall remain liable for all
of its obligations and duties under this Agreement. If the Servicer
shall not have joined in such appointment, or the NIMS Insurer has
not approved such appointment, within 15 days after the receipt by
it of a request so to do, or in case an Event of Default shall have
occurred and be continuing, the Trustee or the Delaware Trustee, as
applicable, alone shall have the power to make such appointment;
provided, that such trustee shall remain liable for all of
its obligations and duties under this Agreement. No co-trustee or
separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 8.06 hereunder and
no notice to Certificateholders of the appointment of co-trustee(s)
or separate trustee(s) shall be required under Section 8.08
hereof.

In the case of any appointment of a co-trustee or
separate trustee pursuant to this Section 8.10, all rights, powers,
duties and obligations conferred or imposed upon the Trustee or the
Delaware Trustee, as applicable, shall be conferred or imposed upon
and exercised or performed by the Trustee or the Delaware Trustee,
as applicable, and such separate trustee or co-trustee jointly and
severally, 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 or the Delaware Trustee, as applicable,
such trustee shall be incompetent or unqualified to perform such
act or acts, in which event such rights, powers, duties and
obligations (including the holding of title to the assets of the
Trust or any portion thereof in any such jurisdiction) shall be
exercised and performed by such separate trustee or co-trustee at
the direction of the Trustee or the Delaware Trustee, as
applicable.

Any notice, request or other writing given to the
Trustee or the Delaware Trustee shall be deemed to have been given
to each of the then related separate trustee(s) and co-trustee(s),
as effectively as if given to each of them. Every instrument
appointing any separate trustee(s) or co-trustee(s) shall refer to
this Agreement and the conditions of this Article VIII. Each
separate trustee and co-trustee, upon its acceptance of the trusts
conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee
or the Delaware Trustee, as applicable, 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 or the Delaware Trustee, as applicable.
Every such instrument shall be filed with the Trustee or the
Delaware Trustee, as applicable.

Any separate trustee or co-trustee may, at any
time, constitute the Trustee or the Delaware Trustee, as
applicable, 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 the trust shall vest in and be
exercised by the Trustee or the Delaware Trustee, as applicable, to
the extent permitted by law, without the appointment of a new or
successor trustee.

Section 8.11         
Authenticating Agents

The Trustee may appoint one or more
Authenticating Agents which shall be authorized to act on behalf of
the Trustee in authenticating Certificates. Wherever reference is
made in this Agreement to the authentication of Certificates by the
Trustee or the Trustee’s certificate of authentication, such
reference shall be deemed to include authentication on behalf of
the Trustee by an Authenticating Agent and a certificate of
authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent must be acceptable
to the Servicer and the NIMS Insurer and must be a corporation,
trust company or banking association organized and doing business
under the laws of the United States of America or of any state,
having an office and place of business in New York, New York,
having a combined capital and surplus of at least $15,000,000,
authorized under such laws to do a trust business and subject to
supervision or examination by federal or state
authorities.

Any corporation into which any Authenticating
Agent may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger,
conversion or consolidation to which any Authenticating Agent shall
be a party, or any corporation succeeding to the corporate agency
business of any Authenticating Agent, shall continue to be the
Authenticating Agent so long as it shall be eligible in accordance
with the provisions of the first paragraph of this Section 8.11
without the execution or filing of any paper or any further act on
the part of the Trustee or the Authenticating Agent.

Any Authenticating Agent may at any time resign
by giving written notice of resignation to the Trustee, the NIMS
Insurer and the Servicer. The Trustee may, upon prior written
approval of the Servicer and the NIMS Insurer, at any time
terminate the agency of any Authenticating Agent by giving written
notice of termination to such Authenticating Agent, the NIMS
Insurer and to the Servicer. Upon receiving a notice of resignation
or upon such a termination, or in case at any time any
Authenticating Agent shall cease to be eligible in accordance with
the provisions of the first paragraph of this Section 8.11, the
Trustee may appoint, upon prior written approval of the Servicer
and the NIMS Insurer, a successor Authenticating Agent, shall give
written notice of such appointment to the Servicer and the NIMS
Insurer and shall mail notice of such appointment to all
Certificateholders. Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with
all the rights, powers, duties and responsibilities of its
predecessor hereunder, with like effect as if originally named as
Authenticating Agent. Any reasonable compensation paid to an
Authenticating Agent shall be a reimbursable expense pursuant to
Section 8.05 if paid by the Trustee.

Section 8.12         
Paying Agents

The Trustee may appoint one or more
Paying Agents which shall be authorized to act on behalf of the
Trustee in making withdrawals from the Distribution Account, and
distributions to Certificateholders as provided in Article IV and
Section 9.01(b) to the extent directed to do so by the Servicer and
consented to by the NIMS Insurer. Wherever reference is made in
this Agreement to the withdrawal from the Distribution Account by
the Trustee, such reference shall be deemed to include such a
withdrawal on behalf of the Trustee by a Paying Agent. Whenever
reference is made in this Agreement to a distribution by the
Trustee or the furnishing of a statement to Certificateholders by
the Trustee, such reference shall be deemed to include such a
distribution or furnishing on behalf of the Trustee by a Paying
Agent. Each Paying Agent shall provide to the Trustee such
information concerning the Distribution Account as the Trustee
shall request from time to time. Each Paying Agent must be
reasonably acceptable to the Servicer and the NIMS Insurer and must
be a corporation, trust company or banking association organized
and doing business under the laws of the United States of America
or of any state, having an office and place of business in New
York, New York, having a combined capital and surplus of at least
$15,000,000, authorized under such laws to do a trust business and
subject to supervision or examination by federal or state
authorities.

Any corporation into which any Paying Agent may
be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation
to which any Paying Agent shall be a party, or any corporation
succeeding to the corporate agency business of any Paying Agent,
shall continue to be the Paying Agent provided that such
corporation after the consummation of such merger, conversion,
consolidation or succession meets the eligibility requirements of
this Section 8.12.

Any Paying Agent may at any time resign by giving
written notice of resignation to the Trustee, the NIMS Insurer and
to the Servicer; provided, that the Paying Agent has
returned to the Distribution Account or otherwise accounted, to the
reasonable satisfaction of the Servicer and the NIMS Insurer, for
all amounts it has withdrawn from the Distribution Account. The
Trustee may, upon prior written approval of the Servicer and the
NIMS Insurer, at any time terminate the agency of any Paying Agent
by giving written notice of termination to such Paying Agent and to
the Servicer and the NIMS Insurer. Upon receiving a notice of
resignation or upon such a termination, or in case at any time any
Paying Agent shall cease to be eligible in accordance with the
provisions of the first paragraph of this Section 8.12, the Trustee
may appoint, upon prior written approval of the Servicer and the
NIMS Insurer, a successor Paying Agent, shall give written notice
of such appointment to the Servicer and the NIMS Insurer and shall
mail notice of such appointment to all Certificateholders. Any
successor Paying Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers, duties and
responsibilities of its predecessor hereunder, with like effect as
if originally named as Paying Agent. Any reasonable compensation
paid to any Paying Agent shall be a reimbursable expense pursuant
to Section 8.05 if paid by the Trustee.

Section 8.13         
Duties of Delaware Trustee.

(a)               
The Delaware Trustee is appointed to serve as the trustee of the
Trust in the State of Delaware for the sole purpose of satisfying
the requirement of Section 3807(a) of the Statutory Trust Statute
that the Trust have at least one trustee with a principal place of
business in Delaware.  It is understood and agreed by the
parties hereto that the Delaware Trustee shall have none of the
duties or liabilities of the Trustee.

(b)              
The duties of the Delaware Trustee shall be limited to (i)
accepting legal process served on the Trust in the State of
Delaware, (ii) the execution of any certificates with respect to
the Trust required to be filed with the Secretary of State which
the Delaware Trustee is required to execute under Section 3811 of
the Statutory Trust Statute and (iii) such other duties as are set
forth in this Article VIII.  To the extent that, at law or in
equity, the Delaware Trustee has duties (including fiduciary
duties) and liabilities relating thereto to the Trust or the
Holders of the REMIC I Regular Interests, REMIC II Regular
Interests or the Certificates, it is hereby understood and agreed
by the parties hereto that such duties and liabilities are replaced
by the duties and liabilities of the Delaware Trustee expressly set
forth in this Agreement.

Section 8.14         
Amendment to Certificate of Trust

If at any time required by Section 3810 of the Statutory Trust
Statute, the Trustee, the Delaware Trustee and any other trustee of the Trust
shall cause an amendment to the Certificate of Trust to be filed with the
Secretary of State in accordance with the provisions of such Section 3810.

Section 8.15         
[Reserved].

Section 8.16         
Trustees Act on Behalf of Trust

Except to the extent otherwise expressly
provided herein, in the performance of its obligations under this
Agreement, each of the Trustee and the Delaware Trustee shall at
all times be acting on behalf of the Trust or the Certificateholders, as applicable.

Section 8.17         
Limitation of Liability

It is expressly understood and agreed by the parties hereto
that (a) each of the representations, undertakings and agreements herein made on
the part of the Trust is made and intended not as personal representations,
undertakings and agreements by the Trustee but is made and intended for the
purpose of binding only the Trust and (b) under no circumstances shall the
Trustee be personally liable for the payment of any indebtedness or expenses of
the Trust or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Trust under this
Agreement.

Section 8.18         
Trustee Report on Assessment of Compliance with Servicing
Criteria

The Trustee shall, on or before the 90th
day following each December 31 after the Cut-Off Date (or such
earlier date as reasonably requested by the Servicer, but in no
event earlier than March 15), deliver to the Company and the
Servicer the following documents, if so requested by the
Servicer:

(a)               
a report on its assessment of compliance during the preceding
calendar year with all applicable servicing criteria set forth in
Item 1122(d) of Regulation AB with respect to asset-backed
securities transactions taken as a whole involving the Trustee that
are backed by assets of the same type as the Mortgage Loans, as
required by Item 1122 of Regulation AB; and

(b)              
a report by a registered public accounting firm that attests to,
and reports on, the assessment made by the Trustee pursuant to
clause (a) above, as required by Item 1122 of Regulation
AB;

provided,
however, that the Trustee shall only be required deliver
the reports specified in Section 8.18 (a) and (b) with respect to
any year for which a Report on Form 10-K is required to be filed
with the Commission on behalf of the Trust.  Promptly
following December 31 of each year for which a Report on Form 10-K
is so required to be filed, the Servicer shall advise the Trustee
whether the foregoing reports will be required of the Trustee.

ARTICLE IX

Termination

Section 9.01         
Termination Upon Purchase by the Servicer or Liquidation of All
Mortgage Loans.

(a)               
The Servicer may, and if the Servicer does not exercise such right,
the NIMS Insurer may (the party exercising such right, the
“Terminator”), purchase the outstanding Mortgage Loans,
all property acquired by the Trust in respect of any Mortgage Loan
and all other property included in any REMIC formed under this
Agreement at the price stated in clause (i) of the second paragraph
of this Section 9.01(a) on or after the first date on which the
aggregate Principal Balance of the Mortgage Loans is less than the
Clean-Up Call Percentage of the aggregate Principal Balance of the
Mortgage Loans as of the Cut-Off Date; provided, however,
that if the Terminator is the Servicer purchasing the Mortgage
Loans and other property on its own behalf, the Servicer may not so
purchase such outstanding Mortgage Loans and property if the
Termination Price stated in subclause (1) of such clause (i): 
(A) exceeds the fair market value, determined by the Servicer in
accordance with prudent industry practices, of such outstanding
Mortgage Loans and property, less unreimbursed Advances and
Servicing Advances (other than Advances and Servicing Advances made
with respect to Mortgage Loans as to which the Servicer expects
that that foreclosure is not imminent), (B) will not result in
distributions on the Certificates sufficient (together with all
amounts received under the Indenture other than on account of the
Certificates) to pay all interest accrued on, as well as amounts
necessary to pay in full the principal balance of, the NIM Notes
and any amounts necessary to reimburse the NIMS Insurer for all
amounts paid under the NIMs insurance policy and any other amounts
reimbursable or otherwise payable to the NIMS Insurer, in each
case, with interest thereon at the applicable rate set forth in the
Indenture and to the extent not previously reimbursed or paid
(unless the NIMS Insurer consents to a lesser Termination Price)
and (C) will not result in distributions to the Swap Counterparty
sufficient to pay in full all amounts payable by the Supplemental
Interest Trust Trustee to the Swap Counterparty pursuant to the
Swap Agreement, including any Swap Termination Payment payable by
the Supplemental Interest Trust Trustee including any interest on
such Swap Termination Payment at the applicable rate set forth in
the Swap Agreement from the Early Termination Date until such Swap
Termination Payment is paid.  If such right is exercised, the
Terminator shall provide to the Trustee, the Delaware Trustee and
the Company the written certification of an officer of the
Terminator (which certification shall include a statement to the
effect that all amounts required to be paid in order to exercise
such right have been deposited in the Certificate Account) and the
Trustee on behalf of the Trust shall promptly execute all
instruments as may be necessary to release and assign to the
Terminator the Mortgage Loans, all property acquired by the Trust
in respect of any Mortgage Loan and all other property included in
any REMIC formed under this Agreement.

Except as otherwise set forth in this Article IX,
including, without limitation, the obligation of the Servicer to
make payments to Certificateholders as hereafter set forth, the
Trust and the respective obligations and responsibilities of the
Company, the Servicer, the Trustee and the Delaware Trustee created
hereby shall terminate in accordance with Section 3808 of the
Statutory Trust Statute upon:

(i)        
the Distribution Date immediately following the exercise by the
Terminator of its purchase option, set forth in the first paragraph
of this Section 9.01(a), of all Mortgage Loans, all property
acquired by the Trust in respect of any Mortgage Loan by
foreclosure, deed in lieu of foreclosure or otherwise, and all
other property included in any REMIC formed under this Agreement at
a price (the “Termination Price”) equal to

(1)        In
the case of the Servicer exercising the right on its own behalf,
100% of the aggregate Stated Principal Balance of all the Mortgage
Loans and accrued interest on the Stated Principal Balance of each
such Mortgage Loan at the applicable Net Mortgage Rate in effect
from time to time from the Due Date as to which interest was last
paid by the related Mortgagor or by an advance by the Servicer to
but not including the first day of the month in which such purchase
is to be effected, plus the appraised value of each REO Property,
if any, such appraisal to be conducted by an appraiser selected by
the Servicer in its reasonable discretion, and

(2)        In
all other cases, including in the case of the Servicer exercising
the right on behalf of an unaffiliated third party, the greater
of

(A)       the
aggregate Repurchase Price of all the Mortgage Loans plus the
appraised value of each REO Property, if any, such appraisal to be
conducted by an appraiser selected by the Terminator in its
reasonable discretion, and

(B)       the
aggregate fair market value of all of the assets of REMIC I (as
determined by the Terminator, as of the close of business on the
third Business Day next preceding the date upon which notice of any
such termination is furnished to Certificateholders pursuant to
this Article IX),

plus in each case of clauses
(i)(2)(A) and (B) any additional amounts necessary to pay all
interest accrued on, as well as amounts necessary to pay in full
the principal balance of, the NIM Notes and any amounts necessary
to reimburse the NIMS Insurer for all amounts paid under the NIMs
insurance policy and any other amounts reimbursable or otherwise
payable to the NIMS Insurer, in each case, with interest thereon at
the applicable rate set forth in the Indenture and to the extent
not previously reimbursed or paid and any amounts payable by the
Supplemental Interest Trust Trustee to the Swap Counterparty
pursuant to the Swap Agreement, including any Swap Termination
Payment payable by the Supplemental Interest Trust Trustee
including any interest on such Swap Termination Payment at the
applicable rate set forth in the Swap Agreement from the Early
Termination Date until such Swap Termination Payment is
paid.

or

(ii)       
the later of the final payment or other liquidation (or any advance
with respect thereto) of the last Mortgage Loan owned by the Trust
or the disposition of all property acquired upon foreclosure in
respect of any Mortgage Loan, and the payment to the
Certificateholders of all amounts required to be paid to them
hereunder.

The Terminator shall give notice to the Supplemental Interest
Trust Trustee and the Swap Counterparty of its election to purchase all Mortgage
Loans and other property remaining in the Trust no later than four Business Days
prior to the related Determination Date in the month immediately preceding the
Distribution Date on which the Certificates will be retired; provided that the
Terminator, or the Supplemental Interest Trust Trustee on its behalf, may
request a non-binding estimate of the
Swap Termination Payment due upon the exercise of the right of repurchase
pursuant to this Section 9.01 prior to such Determination Date.

The Servicer shall not have any further right to
reimbursement by the Trust for any advance that is used to reduce
the purchase price of the Mortgage Loans pursuant to the
immediately preceding sentence.

In no event shall the Trust
continue beyond the expiration of 21 years from the death of the survivor of the
issue of Joseph P. Kennedy, the late ambassador of the United States to the
Court of St. James', living on the date hereof.

In no event shall the Servicer be required to
expend any amounts other than those described in the first
paragraph of this Section 9.01(a) in order to terminate the Trust
or purchase the Mortgage Loans under this Section 9.01, and in no
event shall the Company, the Trustee or the Delaware Trustee be
required to expend any amounts in connection with such termination
or purchase.

(b)       
Notice of purchase, specifying the date upon which the
Certificateholders may surrender their Certificates to the Trustee
for payment and cancellation, shall be given promptly by letter
from the Trustee to Certificateholders mailed not less than 30 days
prior to such final distribution, specifying (i) the date upon
which final payment of the Certificates will be made upon
presentation and surrender of Certificates at the office of the
Certificate Registrar therein designated (the “Termination
Date”), (ii) the amount of such final payment (the
“Termination Payment”) and (iii) that the Record
Date otherwise applicable to the Distribution Date upon which the
Termination Date occurs is not applicable, payments being made only
upon presentation and surrender of the Certificates at the office
of the Certificate Registrar therein specified. Upon any such
notice, the Distribution Account shall terminate subject to the
Servicer’s obligation to hold all amounts payable to
Certificateholders in trust without interest pending such
payment.  The Servicer shall provide the Trustee with written
notice of its intent to terminate the Trust upon purchase at least
five Business Days, or such lesser time as is acceptable to the
Trustee, such acceptance not to be unreasonably withheld, prior to
the time that the Trustee is required to mail notice to the
Certificateholders.

In the event that all of the Certificateholders
shall not surrender their Certificates for cancellation within six
months after the Termination Date, the Servicer shall give a second
written notice to the remaining Certificateholders to surrender
their Certificates for cancellation and receive the Termination
Payment with respect thereto. If within one year after the second
notice all the Certificates shall not have been surrendered for
cancellation, the Servicer may take appropriate steps to contact
the remaining Certificateholders concerning surrender of their
Certificates, and the cost thereof shall be paid out of the funds
and other assets which remain in trust hereunder.

Upon the completion of winding up of the Trust,
including the payment or the making reasonable provision for
payment of all obligations of the Trust in accordance with Section
3808(e) of the Statutory Trust Statute, the Delaware Trustee shall
prepare, the Trustee, the Delaware Trustee and any other trustee
hereunder shall sign, and the Delaware Trustee (upon the
Trustee’s consent acting at direction of the Servicer) shall
file, a certificate of cancellation with the Secretary of State in
accordance with Section 3810 of the Statutory Trust Statute, at
which time the Trust and this Agreement shall terminate.  The Servicer shall act as the liquidator of the Trust and shall be
responsible for taking all actions in connection with winding up
the Trust, in accordance with the requirements of this Agreement
(including this Section 9.01 and Section 9.02) and applicable
law.

Section 9.02         
Additional Termination Requirements.

(a)               
In the event the Servicer exercises its purchase option as provided
in Section 9.01, REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V
and REMIC VI shall be terminated in accordance with the following
additional requirements, unless the Servicer, at its own expense,
obtains for the Trustee an Opinion of Counsel to the effect that
the failure of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and
REMIC VI to comply with the requirements of this Section 9.02 will
not (i) result in the imposition of taxes on “prohibited
transactions” of REMIC I, REMIC II, REMIC III, REMIC IV,
REMIC V and REMIC VI as described in Section 860F of the Code, or
(ii) cause REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC
VI to fail to qualify as a REMIC at any time that any Certificates
are outstanding:

(i)                 
Within 90 days prior to the final Distribution Date set forth in
the notice given by the Trustee under Section 9.01, the Tax Matters
Person shall prepare the documentation required and the Tax Matters
Person and the Trustee shall adopt a plan of complete liquidation
on behalf of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and
REMIC VI meeting the requirements of a qualified liquidation under
Section 860F of the Code and any regulations thereunder, as
evidenced by an Opinion of Counsel obtained at the expense of the
Servicer, on behalf of REMIC I, REMIC II, REMIC III, REMIC IV,
REMIC V and REMIC VI; and

(ii)               
At or after the time of adoption of such a plan of complete
liquidation and at or prior to the final Distribution Date, the
Servicer on behalf of the Trust shall sell all of the assets of
REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI to the
Servicer for cash in the amount specified in Section 9.01.

(b)              
By its acceptance of any Residual Certificate, the Holder thereof
hereby agrees to authorize the Tax Matters Person and the Trustee
to adopt such a plan of complete liquidation upon the written
request of the Tax Matters Person and the Trustee and to take such
other action in connection therewith as may be reasonably requested
by the Tax Matters Person or the Trustee.

Section 9.03         
Trust Irrevocable

Except as expressly provided herein, the trust created hereby
is irrevocable.

Section 9.04         
Termination of the Supplemental Interest Trust

The obligations of the Depositor, the Trustee and the
Supplemental Interest Trust Trustee created hereby with respect to the
Supplemental Interest Trust shall terminate upon the earlier of:

(a)        the
termination of the Swap Agreement pursuant to the terms of the Swap
Agreement; and

(b)        the
termination of this Agreement pursuant to Section 9.01.

ARTICLE X

Miscellaneous
Provisions

Section 10.01     
Amendment.

(a)               
This Agreement may be amended from time to time by the Servicer,
the Company and the Trustee, with the consent of the NIMS Insurer,
and if necessary, with the prior written
consent of the Swap
Counterparty (as described below), and without the consent of any
of the Certificateholders:

(i)                 
to cure any ambiguity;

(ii)               
to correct or supplement any provision herein which may be
defective or inconsistent with any other provisions
herein;

(iii)              
to comply with any requirements imposed by the Code or any
regulations thereunder;

(iv)             
to correct the description of any property at any time included in
REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI or to
assure the conveyance to the Trust of any property included in
REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC
VI;

(v)               
pursuant to Section 5.01(c)(v); and

(vi)             
to add any provision to, or amend any provision in, this Agreement, provided that such amendment or addition does not adversely
affect in any material respect the interests of any
Certificateholder;

provided, however,
that any such amendment which modifies the rights or obligations of
the Delaware Trustee hereunder shall require the consent of the
Delaware Trustee; provided, further, that any such amendment
which modifies the right of the Holders of the Class P Certificates
to receive Assigned Prepayment Charges, including any amendment to
Section 3.29, shall require the consent of each Holder of the Class
P Certificates. No such amendment (other than one entered into
pursuant to clause (iii) of the preceding sentence) shall change
the powers of the Servicer. Prior to entering into any amendment
(other than one entered into pursuant to clause (iii) of the second
preceding sentence) without the consent of Certificateholders
pursuant to this paragraph, the Trustee shall require an Opinion of
Counsel addressed to the Trust, the Trustee and the NIMS Insurer to
the effect that such amendment is permitted under this Agreement
and has no material adverse effect on the interests of the
Certificateholders; provided, however, that no such Opinion
of Counsel with respect to the material effect of such amendment on
the interests of the Certificateholders shall be required if the
Company obtains a letter from each Rating Agency stating that the
amendment would not result in the downgrading or withdrawal of the
respective ratings then assigned to the Certificates. Prior to
entering into any amendment pursuant to clause (iii) of the third
preceding sentence without the consent of Certificateholders
pursuant to this paragraph, the Trustee shall require an Opinion of
Counsel to the effect that such action is necessary or helpful to
comply with the requirements imposed by the Code or any regulations
thereunder and shall not cause any REMIC formed under this
Agreement to fail to qualify as such under the Code. The cost of
any opinion required by this Section 10.01 shall be borne by the
party requesting such amendment.

(b)              
This Agreement may also be amended from time to time by the
Servicer, the Company and the Trustee, with the consent of the NIMS
Insurer, and if necessary, with the prior written consent of the
Swap Counterparty (as described below), with the consent of the
Holders of Certificates evidencing Percentage Interests aggregating
not less than 66% of REMIC III, 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 Certificateholders; provided, however, that no
such amendment shall, without the consent of the Holder of each
Certificate affected thereby (i) reduce in any manner the amount
of, or delay the timing of, distributions of principal or interest
required to be made hereunder or reduce the
Certificateholder’s Percentage Interest, the Pass-Through
Rate or the Termination Payment with respect to any of the
Certificates, (ii) reduce the percentage of Percentage Interests
specified in this Section 10.01 which are required to amend this
Agreement, (iii) create or permit the creation of any lien against
any part of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or
REMIC VI, or (iv) modify any provision in any way which would
permit an earlier retirement of the Certificates; provided,
further, that any such amendment which modifies the rights or
obligations of the Delaware Trustee hereunder shall require the
consent of the Delaware Trustee; provided, further, that any
such amendment which modifies the right of the Holders of the Class
P Certificates to receive Assigned Prepayment Charges, including
any amendment to Section 3.29, shall require the consent of each
Holder of the Class P Certificates.

In addition to the provisions of this Section
10.01 and as long as the Swap Counterparty remains the Swap
Counterparty under the Swap Agreement or is owed any amounts under
this Agreement, the Trustee shall provide at least ten days’
prior written notice to the Swap Counterparty of any proposed
amendment or modification to this Agreement, and the prior written
consent of the Swap Counterparty shall be necessary for the
adoption of any proposed amendment of this Agreement that, in the
Swap Counterparty’s reasonable determination, adversely
affects the Swap Counterparty’s rights or interests under
this Agreement, including, but not limited to, the right to receive
any Net Swap Payment or Swap Termination Payment due and owing to
it under this Agreement; provided that any such consent of the Swap
Counterparty shall not be unreasonably withheld.

Promptly after the execution of any such
amendment, the Trustee shall furnish written notification of the
substance of such amendment to the Delaware Trustee and each
Certificateholder and the NIMS Insurer. Any failure to provide such
notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such amendment.

It shall not be necessary for the consent of
Certificateholders under this Section 10.01 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.

Section 10.02     
Recordation of Agreement

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 the
comparable jurisdictions in which any Mortgaged Property is
situated, and in any other appropriate public recording office or
elsewhere, such recordation to be effected by the Company and at
its expense on direction by the Trustee, but only upon direction
accompanied by an Opinion of Counsel to the effect that such
recordation materially and beneficially affects the interests of
the Certificateholders.

Section 10.03     
Limitation on Rights of Certificateholders

The death or incapacity of any Certificateholder shall not operate to terminate this Agreement or
the Trust, nor entitle such Certificateholder’s legal
representatives or heirs to claim an accounting or to take any
action or proceeding in any court for a partition or winding-up of
the Trust, nor otherwise affect the rights, obligations and
liabilities of the parties hereto or any of them.

No Certificateholder shall have any right to vote
or in any manner otherwise to control the operation and management
of the Trust or the obligations of the parties hereto (except as
provided in Section 5.09, Section 7.01, Section 8.01, Section 8.02,
Section 8.07, Section 10.01 and this Section 10.03), nor shall
anything herein set forth, or contained in the terms of the
Certificates, be construed so as to constitute the
Certificateholders from time to time as partners or members of an
association; nor shall any Certificateholder be under any liability
to any third person by reason of any action taken by the parties to
this Agreement pursuant to any provision hereof.

No Certificateholder shall have any right by
virtue or by availing 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 evidencing Percentage
Interests aggregating not less than 25% of REMIC III 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 institution acting as Trustee, both in its
individual capacity and as Trustee, such reasonable indemnity as it
may require against the costs, expenses and liabilities to be
incurred therein or thereby, and the Trustee, for 60 days after its
receipt of such notice, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or
proceeding. However, the Trustee is under no obligation to exercise
any of the extraordinary trusts or powers vested in it by this
Agreement or to make any investigation of matters arising hereunder
or to institute, conduct or defend any litigation hereunder or in
relation hereto at the request, order or direction of any of the
Certificateholders unless such Certificateholders have offered to
the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which may be incurred therein or thereby.
It is understood and intended, and expressly covenanted by each
Certificateholder with every other Certificateholder and the
Trustee, that no one or more Holders of Certificates shall have any
right in any manner whatever by virtue or by availing of any
provision of this Agreement to affect, disturb or prejudice the
rights of the Holders of any other of such Certificates, or to
obtain or seek to obtain priority over or preference to any other
such Holder, or to enforce any right under this Agreement, except
in the manner herein provided and for the equal, ratable and common
benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section 10.03, each and every
Certificateholder and the Trustee shall be entitled to such relief
as can be given either at law or in equity.

Section 10.04     
Access to List of Certificateholders

The Certificate Registrar shall furnish
or cause to be furnished to the Trustee within 30 days after
receipt of a request by the Trustee in writing, a list, in such
form as the Trustee may reasonably require, of the names and
addresses of the Certificateholders as of the most recent Record
Date for payment of distributions to such
Certificateholders.

If three or more Certificateholders (hereinafter
referred to as “applicants”) apply in writing to
the Trustee, and such application states that the applicants desire
to communicate with other Certificateholders with respect to their
rights under this Agreement or under the Certificates and is
accompanied by a copy of the communication which such applicants
propose to transmit, then the Trustee shall, within five Business
Days after the receipt of such list from the Certificate Registrar,
afford such applicants access during normal business hours to the
most recent list of Certificateholders held by the Trustee. If such
a list is as of a date more than 90 days prior to the date of
receipt of such applicants’ request, the Trustee shall
promptly request from the Certificate Registrar a current list as
provided above, and shall afford such applicants access to such
list promptly upon receipt.

Every Certificateholder, by receiving and holding
the same, agrees with the Servicer, the Company, the Trust, the
Trustee and the Delaware Trustee that none of the Servicer, the
Company, the Trust, the Trustee or the Delaware Trustee shall be
held accountable by reason of the disclosure of any such
information as to the names and addresses of the Certificateholders
hereunder, regardless of the source from which such information was
derived.

Section 10.05     
Governing Law

This Agreement shall be construed in accordance with the laws
of the State of Delaware without giving effect to its conflict of laws
provisions and the obligations, rights and remedies of the parties hereunder
shall be determined in accordance with such laws without giving effect to
conflict of laws provisions.

Section 10.06     
Notices

All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly
given if personally delivered at or mailed by registered or
certified mail, return receipt requested, or overnight courier to
the applicable Notice Address. Notices to the Rating Agencies shall
also be deemed to have been duly given if mailed by first class
mail, postage prepaid, to the above listed addresses of the Rating
Agencies. Any notice required or permitted to be mailed to a Certificateholder shall be given by first class mail, postage
prepaid, at the address of such Holder as shown in the Certificate
Register. Any notice so mailed within the time prescribed in this
Agreement shall be conclusively presumed to have been duly given,
whether or not the Certificateholder receives such
notice.

Section 10.07     
Compliance With Regulation AB

Each of the parties hereto acknowledges
and agrees that the purpose of Section 3.20, Section 8.18 and the
fourth sentence of the second paragraph of Section 2.05 is to
facilitate compliance by the Company, the Trust and Washington
Mutual Mortgage Securities Corp. with the provisions of Regulation
AB, as it may be amended or clarified from time to time. Each of
the Servicer and the Trustee acknowledges that interpretations of
the requirements of Regulation AB may change over time, whether due
to interpretive guidance provided by the Commission or its staff,
consensus among participants in the asset-backed securities
markets, advice of counsel, or otherwise, and agrees to comply with
reasonable requests made by the Company, the Trust or Washington
Mutual Mortgage Securities Corp. in good faith for delivery of
information under the provisions of Regulation AB on the basis of
evolving interpretations thereof, and to deliver any other
information necessary in the good faith determination of the
Company, the Trust or Washington Mutual Mortgage Securities Corp.
to permit the Company, the Trust and Washington Mutual Mortgage
Securities Corp. to comply with the provisions of Regulation AB.
Each of the Trust and Washington Mutual Mortgage Securities Corp.
shall be a third-party beneficiary of the Servicer’s and the
Trustee’s respective obligations under Section 3.20, Section
8.18 and this Section 10.07.

Section 10.08     
Severability of Provisions

If any one or more of the covenants, agreements, provisions or
terms of this Agreement shall be for any reason whatsoever held invalid, then
such covenants, agreements, provisions or terms shall be deemed severable from
the remaining covenants, agreements, provisions or terms of this Agreement and
shall in no way affect the validity or enforceability of the other provisions of
this Agreement or of the Certificates or the rights of the Holders thereof.

Section 10.09     
Counterpart Signatures

For the purpose of facilitating the
recordation of this Agreement as herein provided and for other
purposes, this Agreement may be executed simultaneously in any
number of counterparts, each of which counterparts shall be deemed
to be an original, and such counterparts shall constitute but one
and the same instrument.

Section 10.10     
Benefits of Agreement

Except as expressly provided herein,
nothing in this Agreement or in any Certificate, expressed or
implied, shall give to any Person, other than the parties hereto
and their respective successors hereunder, any separate trustee or
co-trustee appointed under Section 8.10 and the Certificateholders,
any benefit or any legal or equitable right, remedy or claim under
this Agreement.

Section 10.11     
Notices and Copies to Rating Agencies.

(a)               
The Trustee shall notify the Rating Agencies, the NIMS Insurer and
the Swap Counterparty of the occurrence of any of the following
events, in the manner provided in Section 10.06:

(i)                 
the occurrence of an Event of Default pursuant to Section 7.01,
subject to the provisions of Section 8.01(d); and

(ii)               
the appointment of a successor Servicer pursuant to Section
7.02;

(b)              
The Servicer shall notify the Rating Agencies, the NIMS Insurer and
the Swap Counterparty of the occurrence of any of the following
events, or in the case of clauses (iii), (iv), (v), (vii) and
(viii) promptly upon receiving notice thereof, in the manner
provided in Section 10.06:

(i)                 
any amendment of this Agreement pursuant to Section 10.01;

(ii)               
the appointment of a successor Trustee or successor Delaware
Trustee pursuant to Section 8.08;

(iii)              
the filing of any claim under or the cancellation or modification
of any fidelity bond and errors and omissions coverage pursuant to
Section 3.14 with respect to the Servicer;

(iv)             
any change in the location of the Collection Account, or the
Distribution Account;

(v)               
the purchase of any Mortgage Loan by the Company pursuant to
Section 2.08 or by the Seller pursuant to the Mortgage Loan
Purchase Agreement, or the purchase of the outstanding Mortgage
Loans pursuant to Section 9.01;

(vi)             
the occurrence of the final Distribution Date or the termination of
the Trust pursuant to Section 9.01(a)(ii);

(vii)            
the failure of the Servicer to make an Advance pursuant to Section
4.02; and

(viii)          
the failure of the Servicer to make a determination by the close of
business on the second Business Day prior a Distribution Date
regarding whether it will make an Advance for such Distribution
Date pursuant to Section 4.02.

The Servicer shall provide
copies of the statements pursuant to Section 4.02, Section 4.06 or
Section 3.20 or any other statements or reports to the Rating
Agencies in such time and manner that such statements or
determinations are required to be provided to
Certificateholders.

In addition, each party hereto agrees that it
will furnish or make available to the NIMS Insurer a copy of any
opinions, notices, reports, schedules, certificates, statements,
rating confirmation letters or other information that are furnished
hereunder to the Trustee or the Certificateholders.

Section 10.12     
Covenant Not to Place Trust Into Bankruptcy

Each party hereto covenants that it shall
not, until at least one year and one day after all Certificates
have been paid in full, (i) take any action to file an involuntary
bankruptcy petition against the Trust, or (ii) institute against
the Trust, or join in any institution against the Trust of, any
bankruptcy or insolvency proceedings under any federal or state
bankruptcy, insolvency or similar law. In addition, each
Certificateholder or Beneficial Owner, by accepting and holding a
Certificate or an interest therein, agrees it shall not, until at
least one year and one day after all Certificates have been paid in
full, take any action to file an involuntary bankruptcy petition
against the Trust.

Section 10.13     
Covenant Not to Place Company Into Bankruptcy

Each party hereto (other than the
Company) covenants that it shall not, until at least one year and
one day after all securities issued by any trust to which the
Company has transferred property have been paid in full, take any
action to file an involuntary bankruptcy petition against the
Company.  In addition, each Certificateholder or Beneficial
Owner, by accepting and holding a Certificate or an interest
therein, agrees it shall not, until at least one year and one day
after all securities issued by any trust to which the Company has
transferred property have been paid in full, take any action to
file an involuntary bankruptcy petition against the
Company.

Section 10.14     
Third-Party Beneficiaries.

(a)        The
NIMS Insurer shall be deemed a third‐party beneficiary of
this Agreement, and shall be entitled to enforce such rights, in
each case, as if it were a party hereto.  Notwithstanding
anything to the contrary anywhere in this Agreement, all rights of
the NIMS Insurer hereunder (i) shall be suspended whenever
rights of the NIMS Insurer under the Indenture (other than the
right to consent to amendments to the Indenture) are suspended and
(ii) except in the case of any right to indemnification
hereunder, if any, shall permanently terminate upon the later to
occur of (A) the payment in full of the Insured NIM Notes as
provided in the Indenture and (B) the payment in full to the
NIMS Insurer of any amounts owed to the NIMS Insurer as provided in
the Indenture.

(b)        The
Swap Counterparty shall be deemed a third-party beneficiary of this
Agreement, and shall be entitled to enforce such rights, in each
case, as if it were a party hereto.  Notwithstanding anything
to the contrary anywhere in this Agreement, all rights of the Swap
Counterparty hereunder shall permanently terminate upon the later
to occur of (i) the expiration of the Swap Agreement, and (ii) the
payment in full to the Swap Counterparty, of any amounts owed to it
under the Swap Agreement.

IN WITNESS WHEREOF, the Company, the Servicer,
the Trustee and the Delaware Trustee have caused their names to be
signed hereto by their respective officers, thereunto duly
authorized, all as of the date first above written.

WaMu ASSET ACCEPTANCE CORP.

By:
      /s/ Barbara
Loper                                

Name:  Barbara Loper

Title:    Vice President

 

 

WASHINGTON MUTUAL
BANK

as Servicer

By:       /s/ Trisha
Lowe                                    

Name:  Trisha Lowe

 Title:    Vice President

 

 

LASALLE BANK
NATIONAL ASSOCIATION,

as Trustee

 

By:
      /s/ Andy
Streepey                                

 Name:  Andy Streepey

 Title:    Assistant Vice President

 

 

CHRISTIANA BANK
& TRUST COMPANY,

as Delaware
Trustee

 

By:
      /s/ James M.
Young                             

Name:  James M. Young

Title:    Vice President

 

ACKNOWLEDGEMENT OF
CORPORATION

STATE OF WASHINGTON             
)

)  SS.

COUNTY OF
KING                              )

 

I certify that I know or have satisfactory
evidence that BARBARA LOPER is the person who appeared before me,
and said person acknowledged that she signed this instrument, on
oath stated that she was authorized to execute the instrument and
acknowledged it as the Vice President of WaMu Asset Acceptance
Corp., to be the free and voluntary act of such party for the uses
and purposes mentioned therein.

Dated this _8th_
day of March 2007.

           
/s/ Chriselda
Landon                                        

           
Chriselda Landon

Notary Public
in and for the State of Washington,

residing at
   Seattle                                                      

My commission
expires: 
  2-27-2011                         
..

ACKNOWLEDGEMENT

STATE OF
WASHINGTON           }

                                                           
} ss.

COUNTY OF
KING                         
}

 

           
I certify that I know or have satisfactory evidence that TRISHA
LOWE is the person who appeared before me, and said person
acknowledged that said person signed this instrument, on oath
stated that said person was authorized to execute the instrument
and acknowledged it as the Assistant Vice President of Washington
Mutual Bank, a federal savings association, to be the free and
voluntary act of such association for the uses and purposes
mentioned in the instrument.

Dated this _8th_
day of March 2007.

           
/s/ Chriselda
Landon                                        

           
Chriselda Landon

Notary Public
in and for the State of Washington,

residing at
   Seattle                                                      

My commission
expires: 
  2-27-2011                         
..

 

ACKNOWLEDGEMENT

STATE OF
ILLINOIS                                    
)

                                                                         

)  SS.

COUNTY OF
COOK                                      )

On this ___ day of March 2007 before me,
_______________________, a Notary Public in and for said State,
personally appeared ANDY STREEPEY, personally known to me (or
proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacit(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the
instrument.

WITNESS my hand and official
seal.

Signature:     /s/
Christine M.
Orsi                     

                     
Christine M. Orsi

My Commission
Expires: 
  5/5/10                   

 

(SEAL)

ACKNOWLEDGEMENT

STATE OF
DELAWARE                                           
)

                                                                                       

)  SS.

COUNTY OF NEW
CASTLE                                     )

On this _7th_ day of March 2007 before me,
a Notary Public in and for said State, personally appeared James
M. Young, personally known to me (or proved to me on the basis
of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized
capacit(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.

WITNESS my hand and official
seal.

Signature:     /s/ Raye D.
Goldsborough            

                     
Raye D. Goldsborough

My Commission
Expires: 
  3/31/07                 

 

 

(SEAL)

Annex A

 

On any Distribution Date, the Certificate
Interest Rate on the Class L3-C Regular Interest shall equal a per
annum rate equal to the percentage equivalent of a fraction, the
numerator of which is the sum of the amounts calculated pursuant to
clauses (A) through (O) below, and the denominator of which is the
aggregate of the Class Principal Balances of the Class L2-XX,
L2-1-A, L2-2-A1, L2-2-A2, L2-2-A3, L2-M1, L2-M2, L2-M3, L2-M4,
L2-M5, L2-M6, L2-M7, L2-M8, L2-M9 and L2-ZZ Regular
Interests.  For purposes of calculating the Certificate
Interest Rate for the Class L3-C Regular Interest, the numerator is
equal to the sum of the following components:

(A)       the
Certificate Interest Rate for the Class L2-XX Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of the Class L2-XX Regular
Interest;

(B)       the
Certificate Interest Rate for the Class L2-1-A Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of Class L2-1-A Regular
Interest;

(C)       the
Certificate Interest Rate for the Class L2-2-A1 Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of Class L2-2-A1 Regular
Interest;

(D)       the
Certificate Interest Rate for the Class L2-2-A2 Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of Class L2-2-A2 Regular
Interest;

(E)       the
Certificate Interest Rate for the Class L2-2-A3 Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of Class L2-2-A2 Regular
Interest;

(F)       the
Certificate Interest Rate for the Class L2-M1 Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of Class L2-M1 Regular
Interest;

(G)       the
Certificate Interest Rate for the Class L2-M2 Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of Class L2-M2 Regular
Interest;

(H)       the
Certificate Interest Rate for the Class L2-M3 Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of Class L2-M3 Regular
Interest;

(I)        the
Certificate Interest Rate for the Class L2-M4 Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of Class L2-M4 Regular
Interest;

(J)        the
Certificate Interest Rate for the Class L2-M5 Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of Class L2-M5 Regular
Interest;

(K)       the
Certificate Interest Rate for the Class L2-M6 Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of Class L2-M6 Regular
Interest;

(L)       the
Certificate Interest Rate for the Class L2-M7 Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of Class L2-M7 Regular
Interest;

(M)      the Certificate
Interest Rate for the Class L2-M8 Regular Interest minus the Marker
Rate (as defined below), applied to an amount equal to the Class
Principal Balance of Class L2-M8 Regular Interest;

(N)       the
Certificate Interest Rate for the Class L2-M9 Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of Class L2-M9 Regular
Interest;

(O)       the
Certificate Interest Rate for the Class L2-ZZ Regular Interest
minus the Marker Rate (as defined below), applied to an amount
equal to the Class Principal Balance of the Class L2-ZZ Regular
Interest.

For purposes of the foregoing calculation, the
“Marker Rate” shall be equal to a per annum rate
equal to two (2) multiplied by the weighted average of the
Certificate Interest Rates for the Class L2-1-A, L2-2-A1, L2-2-A2,
L2-2-A3, L2-M1, L2-M2, L2-M3, L2-M4, L2-M5, L2-M6, L2-M7, L2-M8,
L2-M9 and L2-ZZ Regular Interests, with (A) the rates on each such
Regular Interest (other than the Class L2-ZZ Regular Interest)
subject to a floor and a cap equal to the lesser of (i) LIBOR plus
the Certificate Margin for the Corresponding Certificate for such
Regular Interest, and (ii) the REMIC Net WAC Rate for the
Corresponding Certificates, (B) the rate on the Class L2-ZZ Regular
Interest subject to a cap of zero for purposes of this calculation,
and (C) the rates on all of the Regular Interests multiplied by a
fraction the numerator of which is the actual number of days
elapsed in the Accrual Period for each such Regular Interest and
the denominator of which is 30.

TABLE OF CONTENTS

  
	
ARTICLE I

	
Definitions

	
18

	

Section
1.01

	

Defined
Terms.

	

18

	

 

	

Account

	

18

	

 

	

Accrual
Period

	

18

	

 

	

Additional
Termination Event

	

18

	

 

	

Adjustable Rate
Mortgage Loan

	

18

	

 

	

Adjusted Net
Maximum Mortgage Rate

	

18

	

 

	

Adjusted Net
Mortgage Rate

	

18

	

 

	

Adjustment
Date

	

18

	

 

	

Advance

	

19

	

 

	

Affiliate

	

19

	

 

	

Agreement

	

19

	

 

	

Appraised
Value

	

19

	

 

	

Assigned
Prepayment Charges

	

19

	

 

	

Assignment

	

19

	

 

	

Authenticating
Agent

	

19

	

 

	

Authorized
Denomination

	

19

	

 

	

Balloon
Mortgage Loan

	

19

	

 

	

Balloon
Payment

	

19

	

 

	

Bankruptcy
Code

	

19

	

 

	

Bankruptcy
Loss

	

20

	

 

	

Beneficial
Holder

	

20

	

 

	

Book-Entry
Certificates

	

20

	

 

	

Business
Day

	

20

	

 

	

Calculation
Period

	

20

	

 

	

Certificate

	

20

	

 

	

Certificate
Interest Rate

	

20

	

 

	

Certificate
Margin

	

20

	

 

	

Certificate of
Trust

	

20

	

 

	

Certificate
Principal Balance

	

20

	

 

	

Certificate
Register and Certificate Registrar

	

20

	

 

	

Certificateholder

	

20

	

 

	

Holder

	

20

	

 

	

Certification

	

21

	

 

	

Class

	

21

	

 

	

Class I-A
Certificate

	

21

	

 

	

Class
II‐A‐1 Certificate

	

21

	

 

	

Class
II‐A‐2 Certificate

	

21

	

 

	

Class
II‐A‐3 Certificate

	

21

	

 

	

Class A
Certificates

	

22

	

 

	

Class A
Principal Distribution Amount

	

22

	

 

	

Class C
Certificate

	

22

	

 

	

Class C NIM
Payment Amount

	

22

	

 

	

Class C
Shortfall

	

22

	

 

	

Class IO
Distribution Amount

	

22

	

 

	

Class L1-Y-A
Regular Interests

	

22

	

 

	

Class L1-Y-B
Regular Interests

	

22

	

 

	

Class L1-Y-X
Regular Interest

	

22

	

 

	

Class L1-Z-A
Regular Interests

	

22

	

 

	

Class L1-Z-B
Regular Interests

	

22

	

 

	

Class L1-Z-X
Regular Interest

	

23

	

 

	

Class L2-1-A
Regular Interest

	

23

	

 

	

Class L2-2-A1
Regular Interest

	

23

	

 

	

Class L2-2-A2
Regular Interest

	

23

	

 

	

Class L2-2-A3
Regular Interest

	

23

	

 

	

Class L2-2-M1
Regular Interest

	

23

	

 

	

Class L2-2-M2
Regular Interest

	

23

	

 

	

Class L2-2-M3
Regular Interest

	

23

	

 

	

Class L2-2-M4
Regular Interest

	

23

	

 

	

Class L2-2-M5
Regular Interest

	

23

	

 

	

Class L2-2-M6
Regular Interest

	

23

	

 

	

Class L2-2-M7
Regular Interest

	

23

	

 

	

Class L2-2-M8
Regular Interest

	

24

	

 

	

Class L2-2-M9
Regular Interest

	

24

	

 

	

Class L2-1-GP
Regular Interest

	

24

	

 

	

Class L2-1-SB
Regular Interest

	

24

	

 

	

Class L2-2-GP
Regular Interest

	

24

	

 

	

Class L2-2-SB
Regular Interest

	

24

	

 

	

Class L2-SW
Regular Interest

	

24

	

 

	

Class L2-XX
Regular Interest

	

24

	

 

	

Class L2-YY
Regular Interest

	

24

	

 

	

Class L2-ZZ
Regular Interest

	

24

	

 

	

Class L3-C
Regular Interest

	

24

	

 

	

Class P
Interest

	

24

	

 

	

Class L3-SW
Regular Interest

	

25

	

 

	

Class L6-SW
Regular Interest

	

25

	

 

	

Class M‐1
Certificate

	

25

	

 

	

Class M‐1
Principal Distribution Amount

	

25

	

 

	

Class M-2
Certificate

	

25

	

 

	

Class M-2
Principal Distribution Amount

	

25

	

 

	

Class M-3
Certificate

	

26

	

 

	

Class M-3
Principal Distribution Amount

	

26

	

 

	

Class M‐4
Certificate

	

26

	

 

	

Class M‐4
Principal Distribution Amount

	

26

	

 

	

Class M‐5
Certificate

	

27

	

 

	

Class M‐5
Principal Distribution Amount

	

27

	

 

	

Class M‐6
Certificate

	

28

	

 

	

Class M‐6
Principal Distribution Amount

	

28

	

 

	

Class M‐7
Certificate

	

28

	

 

	

Class M‐7
Principal Distribution Amount

	

28

	

 

	

Class M-8
Certificate

	

29

	

 

	

Class M-8
Principal Distribution Amount

	

29

	

 

	

Class M-9
Certificate

	

30

	

 

	

Class M-9
Principal Distribution Amount

	

30

	

 

	

Class P
Certificate

	

31

	

 

	

Class Principal
Balance

	

31

	

 

	

Class R
Certificate

	

31

	

 

	

Class R‐1
Interest

	

31

	

 

	

Class R‐2
Interest

	

31

	

 

	

Class R‐3
Interest

	

31

	

 

	

Class R‐4
Interest

	

31

	

 

	

Class R‐5
Interest

	

31

	

 

	

Class R‐6
Interest

	

31

	

 

	

Class
R‐CX Certificate

	

31

	

 

	

Class
R‐PX Certificate

	

32

	

 

	

Clean-up Call
Percentage

	

32

	

 

	

Clearing
Agency

	

32

	

 

	

Close of
Business

	

32

	

 

	

Closing
Date

	

32

	

 

	

Closing Date
Mortgage Loans

	

32

	

 

	

Code

	

32

	

 

	

Collection
Account

	

32

	

 

	

Commission

	

32

	

 

	

Company

	

32

	

 

	

Compensating
Interest

	

32

	

 

	

Corporate Trust
Office

	

32

	

 

	

Corporation

	

32

	

 

	

Corresponding
Certificates

	

32

	

 

	

Counterparty
Payment

	

33

	

 

	

Credit
Enhancement Percentage

	

33

	

 

	

Credit Support
Annex Account

	

33

	

 

	

Cumulative Loss
Trigger Event

	

33

	

 

	

Custodial
Agreement

	

34

	

 

	

Custodian

	

34

	

 

	

Cut‐off
Date

	

34

	

 

	

Cut‐off
Date Aggregate Principal Balance

	

34

	

 

	

Cut‐off
Date Principal Balance

	

34

	

 

	

Debt Service
Reduction

	

34

	

 

	

Deficient
Valuation

	

34

	

 

	

Definitive
Certificates

	

35

	

 

	

Delaware
Trustee

	

35

	

 

	

Delinquency
Percentage

	

35

	

 

	

Delinquency
Trigger Event

	

35

	

 

	

Delinquent

	

35

	

 

	

Depositary
Agreement

	

35

	

 

	

Determination
Date

	

35

	

 

	

Directly
Operate

	

35

	

 

	

Disqualified
Organization

	

35

	

 

	

Distribution
Account

	

36

	

 

	

Distribution
Date

	

36

	

 

	

DTC

	

36

	

 

	

DTC
Participant

	

36

	

 

	

Due
Date

	

36

	

 

	

Due
Period

	

36

	

 

	

Early
Termination Date

	

36

	

 

	

Eligible
Institution

	

36

	

 

	

Eligible
Investments

	

37

	

 

	

ERISA

	

38

	

 

	

Escrow
Payments

	

38

	

 

	

Event of
Default

	

38

	

 

	

Exchange
Act

	

38

	

 

	

Extra Principal
Distribution Amount

	

38

	

 

	

Extraordinary
Trust Fund Expense

	

38

	

 

	

Fannie
Mae

	

38

	

 

	

FDIC

	

38

	

 

	

Final Recovery
Determination

	

38

	

 

	

Fitch

	

38

	

 

	

Fixed Rate
Mortgage Loan

	

38

	

 

	

Formula
Rate

	

39

	

 

	

Freddie
Mac

	

39

	

 

	

Gross
Margin

	

39

	

 

	

Gross
Subsequent Recoveries

	

39

	

 

	

Group I Closing
Date Mortgage Loans

	

39

	

 

	

Group I
Interest Remittance Amount

	

39

	

 

	

Group I
Mortgage Loans

	

39

	

 

	

Group I Net
Swap Payment

	

39

	

 

	

Group I
Principal Allocation Percentage

	

39

	

 

	

Group I
Principal Distribution Amount

	

39

	

 

	

Group I
Principal Remittance Amount

	

39

	

 

	

Group I Senior
Certificates

	

40

	

 

	

Group I Senior
Principal Distribution Amount

	

40

	

 

	

Group I Swap
Payment

	

40

	

 

	

Group I Swap
Percentage

	

40

	

 

	

Group I Swap
Termination Payment

	

40

	

 

	

Group II
Closing Date Mortgage Loans

	

40

	

 

	

Group II
Interest Remittance Amount

	

41

	

 

	

Group II
Mortgage Loans

	

41

	

 

	

Group II Net
Swap Payment

	

41

	

 

	

Group II
Principal Allocation Percentage

	

41

	

 

	

Group II
Principal Distribution Amount

	

41

	

 

	

Group II
Principal Remittance Amount

	

41

	

 

	

Group II Senior
Certificates

	

41

	

 

	

Group II Senior
Principal Distribution Amount

	

41

	

 

	

Group II Swap
Payment

	

42

	

 

	

Group II Swap
Percentage

	

42

	

 

	

Group II Swap
Termination Payment

	

42

	

 

	

Indenture

	

42

	

 

	

Independent

	

42

	

 

	

Independent
Contractor

	

42

	

 

	

Index

	

43

	

 

	

Initial
Certificate Principal Balance

	

43

	

 

	

Initial
Notional Amount

	

43

	

 

	

Insurance
Proceeds

	

43

	

 

	

Insured NIM
Notes

	

43

	

 

	

Interest
Determination Date

	

43

	

 

	

Interest
Distribution Amount

	

43

	

 

	

Interest
Remittance Amount

	

43

	

 

	

Late
Collections

	

43

	

 

	

LIBOR

	

44

	

 

	

LIBOR Business
Day

	

44

	

 

	

Liquidated
Mortgage Loan

	

44

	

 

	

Liquidation
Event

	

44

	

 

	

Liquidation
Proceeds

	

44

	

 

	

Loan
Group

	

45

	

 

	

Loan Group
I

	

45

	

 

	

Loan Group
II

	

45

	

 

	

Loan‐to‐Value Ratio

	

45

	

 

	

Lost Note
Affidavit

	

45

	

 

	

Maximum Cap
Rate

	

45

	

 

	

Maximum ZZ
Uncertificated Accrued Interest Deferral Amount

	

46

	

 

	

Maximum
Mortgage Rate

	

46

	

 

	

MERS

	

46

	

 

	

MERS
Loan

	

47

	

 

	

MERS®
System

	

47

	

 

	

Mezzanine
Certificates

	

47

	

 

	

MIN

	

47

	

 

	

Minimum
Mortgage Rate

	

47

	

 

	

MOM
Loan

	

47

	

 

	

Monthly
Interest Distributable Amount

	

47

	

 

	

Monthly
Payment

	

47

	

 

	

Moody’s

	

47

	

 

	

Mortgage

	

47

	

 

	

Mortgage
File

	

47

	

 

	

Mortgage
Loan

	

48

	

 

	

Mortgage Loan
Purchase Agreement

	

48

	

 

	

Mortgage Loan
Schedule

	

48

	

 

	

Mortgage
Note

	

50

	

 

	

Mortgage
Pool

	

50

	

 

	

Mortgage Pool
Assets

	

50

	

 

	

Mortgage
Rate

	

51

	

 

	

Mortgaged
Property

	

51

	

 

	

Mortgagor

	

51

	

 

	

Net
Counterparty Payment

	

51

	

 

	

Net Liquidation
Proceeds

	

51

	

 

	

Net Monthly
Excess Cashflow

	

51

	

 

	

Net Mortgage
Rate

	

52

	

 

	

Net Prepayment
Interest Shortfall

	

52

	

 

	

Net Swap
Payment

	

52

	

 

	

Net WAC
Rate

	

52

	

 

	

Net WAC Rate
Carryover Amount

	

53

	

 

	

New
Lease

	

53

	

 

	

NIM
Notes

	

53

	

 

	

NIMS
Insurer

	

53

	

 

	

NIMS Insurer
Default

	

53

	

 

	

NIMS
Issuer

	

53

	

 

	

Nonrecoverable
Advance

	

53

	

 

	

Notice
Addresses

	

54

	

 

	

Notional
Amount

	

54

	

 

	

OTS

	

54

	

 

	

Officer’s
Certificate

	

54

	

 

	

Opinion of
Counsel

	

54

	

 

	

Optional
Termination Date

	

54

	

 

	

Original Class
Certificate Principal Balance

	

55

	

 

	

Original Class
Notional Amount

	

55

	

 

	

Original Trust
Agreement

	

55

	

 

	

Origination
Value

	

55

	

 

	

Other NIM
Notes

	

55

	

 

	

Overcollateralization Deficiency
Amount

	

55

	

 

	

Overcollateralization Floor

	

55

	

 

	

Overcollateralization Target Amount

	

55

	

 

	

Overcollateralized Amount

	

55

	

 

	

Ownership
Interest

	

56

	

 

	

Pass-Through
Entity

	

56

	

 

	

Pass-Through
Rate

	

56

	

 

	

Paying
Agent

	

56

	

 

	

Payoff

	

56

	

 

	

Percentage
Interest

	

56

	

 

	

Periodic Rate
Cap

	

56

	

 

	

Permitted
Transferee

	

56

	

 

	

Person

	

57

	

 

	

Plan

	

57

	

 

	

Preference
Claim

	

57

	

 

	

Prepayment
Charge

	

57

	

 

	

Prepayment
Charge Schedule

	

57

	

 

	

Prepayment
Interest Excess

	

58

	

 

	

Prepayment
Interest Shortfall

	

58

	

 

	

Prepayment
Period

	

58

	

 

	

Prime
Rate

	

58

	

 

	

Principal
Balance

	

58

	

 

	

Principal
Distribution Amount

	

59

	

 

	

Principal
Prepayment

	

59

	

 

	

Principal
Remittance Amount

	

59

	

 

	

Rate Change
Date

	

59

	

 

	

Rating Agency
or Rating Agencies

	

59

	

 

	

Rating Agency
or Rating Agencies

	

59

	

 

	

Realized
Loss

	

59

	

 

	

Record
Date

	

63

	

 

	

Recording
Documents

	

63

	

 

	

Reference
Banks

	

63

	

 

	

Refinanced
Mortgage Loan

	

64

	

 

	

Regular
Certificates

	

64

	

 

	

Regular
Interest

	

64

	

 

	

Regulation
AB

	

64

	

 

	

Relief
Act

	

64

	

 

	

Relief Act
Interest Shortfall

	

64

	

 

	

Remaining
Principal Distribution Amount

	

64

	

 

	

REMIC
I

	

64

	

 

	

REMIC I
Available Distribution Amount

	

64

	

 

	

REMIC I
Distribution Amount

	

65

	

 

	

REMIC 1 Group I
Regular Interests

	

67

	

 

	

REMIC 1 Group
II Regular Interests

	

67

	

 

	

REMIC 1 Regular
Interest

	

67

	

 

	

REMIC
II

	

67

	

 

	

REMIC II
Available Distribution Amount

	

67

	

 

	

REMIC II
Distribution Amount

	

67

	

 

	

REMIC II
Interest Loss Allocation Amount

	

69

	

 

	

REMIC II
Overcollateralized Amount

	

69

	

 

	

REMIC II
Overcollateralization Target Amount

	

69

	

 

	

REMIC II
Principal Loss Allocation Amount

	

69

	

 

	

REMIC II
Regular Interest

	

69

	

 

	

REMIC
III

	

69

	

 

	

REMIC III
Available Distribution Amount

	

70

	

 

	

REMIC III
Distribution Amount

	

70

	

 

	

REMIC III
Regular Interests

	

77

	

 

	

REMIC
IV

	

77

	

 

	

REMIC IV
Available Distribution Amount

	

77

	

 

	

REMIC IV
Distribution Amount

	

77

	

 

	

REMIC IV
Regular Interest

	

77

	

 

	

REMIC
V

	

77

	

 

	

REMIC V
Available Distribution Amount

	

78

	

 

	

REMIC V
Distribution Amount

	

78

	

 

	

REMIC
VI

	

78

	

 

	

REMIC VI
Available Distribution Amount

	

78

	

 

	

REMIC VI
Distribution Amount

	

78

	

 

	

REMIC

	

78

	

 

	

REMIC Net WAC
Rate

	

78

	

 

	

REMIC
Provisions

	

78

	

 

	

REMIC Regular
Interests

	

79

	

 

	

Remittance
Report

	

79

	

 

	

Rents from Real
Property

	

79

	

 

	

REO
Account

	

79

	

 

	

REO
Disposition

	

79

	

 

	

REO Imputed
Interest

	

79

	

 

	

REO Principal
Amortization

	

79

	

 

	

REO
Property

	

79

	

 

	

Replacement
Payment

	

79

	

 

	

Purchase
Price

	

79

	

 

	

Reserve
Fund

	

80

	

 

	

Reserve
Interest Rate

	

80

	

 

	

Residential
Dwelling

	

80

	

 

	

Residual
Certificates

	

80

	

 

	

Residual
Interest

	

80

	

 

	

Residual NIM
Holder

	

81

	

 

	

Responsible
Officer

	

81

	

 

	

S&P

	

81

	

 

	

Secretary of
State

	

81

	

 

	

Securities
Act

	

81

	

 

	

Seller

	

81

	

 

	

Servicer

	

81

	

 

	

Servicer
Prepayment Charge Payment Amount

	

81

	

 

	

Servicer
Remittance Date

	

81

	

 

	

Servicing
Account

	

81

	

 

	

Servicing
Advances

	

81

	

 

	

Servicing
Fee

	

81

	

 

	

Servicing Fee
Rate

	

82

	

 

	

Servicing
Officer

	

82

	

 

	

Stated
Principal Balance

	

82

	

 

	

Statutory Trust
Statute

	

82

	

 

	

Stayed
Funds

	

82

	

 

	

Stepdown
Date

	

82

	

 

	

Subordinated
Net WAC Rate

	

83

	

 

	

Sub‐Servicer

	

83

	

 

	

Sub‐Servicing Account

	

83

	

 

	

Sub‐Servicing Agreement

	

83

	

 

	

Subsequent
Recoveries

	

83

	

 

	

Qualified
Substitute Mortgage Loan

	

83

	

 

	

Substitution
Adjustments

	

83

	

 

	

Supplemental
Interest Account

	

83

	

 

	

Supplemental
Interest Trust

	

83

	

 

	

Supplemental
Interest Trust Trustee

	

83

	

 

	

Swap
Agreement

	

83

	

 

	

Swap
Counterparty

	

83

	

 

	

Swap
Default

	

84

	

 

	

Swap Event of
Default

	

84

	

 

	

Swap
LIBOR

	

84

	

 

	

Swap Notional
Amount

	

84

	

 

	

Swap
Payment

	

84

	

 

	

Swap
Rate

	

84

	

 

	

Swap
Termination Payment

	

84

	

 

	

Tax Matters
Person

	

84

	

 

	

Telerate Page
3750

	

85

	

 

	

Termination
Event

	

85

	

 

	

Termination
Date

	

85

	

 

	

Termination
Payment

	

85

	

 

	

Termination
Price

	

85

	

 

	

Terminator

	

85

	

 

	

Transfer

	

85

	

 

	

Transferee
Affidavit and Agreement

	

85

	

 

	

Transferee

	

85

	

 

	

Transferor

	

85

	

 

	

Trigger
Event

	

85

	

 

	

Trust

	

85

	

 

	

Trust
Fund

	

85

	

 

	

Trust
REMIC

	

86

	

 

	

Trustee

	

86

	

 

	

Trustee
Fee

	

86

	

 

	

Trustee Fee
Rate

	

86

	

 

	

Uncertificated
Notional Amount

	

86

	

 

	

Undercollateralized Amount

	

87

	

 

	

Uninsured
Cause

	

88

	

 

	

Unpaid Interest
Shortfall Amount

	

88

	

 

	

U.S.
Person

	

88

	

 

	

USD-LIBOR-BBA

	

88

	

 

	

Value

	

88

	

 

	

Voting
Rights

	

88

	

Section
1.02

	

Accounting.

	

89

	

Section
1.03

	

Allocation of
Certain Interest Shortfalls.

	

89

	

Section
1.04

	

Rights of the
NIMS Insurer.

	

90

	
ARTICLE II

	
Creation of the Trust; Conveyance of
the Mortgage Pool Assets, REMIC I Regular Interests, REMIC II
Regular Interests and REMIC III Regular Interests; REMIC Election
and Designations;
Original Issuance of Certificates

	
90

	

Section
2.01

	

Creation of the
Trust

	

90

	

Section
2.02

	

Restrictions on
Activities of the Trust

	

91

	

Section
2.03

	

Separateness
Requirements

	

92

	

Section
2.04

	

Conveyance of
Mortgage Pool Assets; Security Interest

	

93

	

Section
2.05

	

Delivery of
Mortgage Files

	

94

	

Section
2.06

	

REMIC Election
for REMIC I

	

95

	

Section
2.07

	

Acceptance by
Trustee

	

97

	

Section
2.08

	

Representation
and Warranty of the Company Concerning the Mortgage
Loans

	

98

	

Section
2.09

	

Representations
and Warranties of the Seller Concerning the Mortgage
Loans

	

101

	

Section
2.10

	

Additional
Provisions Relating to Repurchases of and Substitutions for
Mortgage Loans by the Company or the Seller

	

102

	

Section
2.11

	

Acknowledgment
of Transfer of Mortgage Pool Assets

	

102

	

Section
2.12

	

Conveyance of
REMIC II Assets; Security Interest

	

103

	

Section
2.13

	

REMIC Election
for REMIC II

	

104

	

Section
2.14

	

Acknowledgement
of Transfer of REMIC I Regular Interests

	

105

	

Section
2.15

	

Conveyance of
REMIC II Regular Interests; Security Interest

	

105

	

Section
2.16

	

REMIC Election
for REMIC III

	

106

	

Section
2.17

	

Acknowledgement
of Transfer of REMIC II Regular Interests

	

107

	

Section
2.18

	

Conveyance of
Class L3-C Regular Interest

	

107

	

Section
2.19

	

REMIC Election
for REMIC IV

	

108

	

Section
2.20

	

Acknowledgement
of Transfer of Class L3-C Regular Interest

	

109

	

Section
2.21

	

Conveyance of
Class L3-P Regular Interest

	

109

	

Section
2.22

	

REMIC Election
for REMIC V

	

110

	

Section
2.23

	

Acknowledgement
of Transfer of Class L3-P Regular Interest

	

111

	

Section
2.24

	

Conveyance of
Class L3-SW Regular Interest

	

111

	

Section
2.25

	

REMIC Election
for REMIC VI

	

112

	

Section
2.26

	

Acknowledgement
of Transfer of Class L3-SW Regular Interest

	

113

	

Section
2.27

	

Legal
Title

	

114

	

Section
2.28

	

Compliance with
ERISA Requirements

	

114

	

Section
2.29

	

Additional
Representation Concerning the Mortgage Loans

	

114

	

Section
2.30

	

No Other
Interests

	

114

	
ARTICLE III

	
Administration and Servicing of the
Mortgage Loans

	
114

	

Section
3.01

	

The
Servicer.

	

114

	

Section
3.02

	

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

	

117

	

Section
3.03

	

Successor
Sub‐Servicers

	

118

	

Section
3.04

	

Liability of
the Servicer

	

118

	

Section
3.05

	

No Contractual
Relationship Between Sub‐Servicers and the NIMS Insurer, the
Trustee or Certificateholders

	

118

	

Section
3.06

	

Assumption or
Termination of Sub‐Servicing Agreements by Trustee

	

119

	

Section
3.07

	

Collection of
Certain Mortgage Loan Payments

	

119

	

Section
3.08

	

Sub‐Servicing Accounts

	

120

	

Section
3.09

	

Collection of
Taxes, Assessments and Similar Items; Servicing Accounts

	

120

	

Section
3.10

	

Collection
Account and Distribution Account.

	

121

	

Section
3.11

	

Permitted
Withdrawals from the Collection Account and Distribution
Account.

	

123

	

Section
3.12

	

Investment
Accounts; Eligible Investments.

	

125

	

Section
3.13

	

[Reserved].

	

126

	

Section
3.14

	

Maintenance of
Hazard Insurance and Errors and Omissions and Fidelity
Coverage.

	

127

	

Section
3.15

	

Enforcement of
Due‐On‐Sale Clauses; Assumption Agreements

	

128

	

Section
3.16

	

Realization
Upon Defaulted Mortgage Loans.

	

129

	

Section
3.17

	

Trustee to
Cooperate; Release of Mortgage Files.

	

132

	

Section
3.18

	

Servicing
Compensation

	

133

	

Section
3.19

	

Reports to the
Trustee; Collection Account Statements

	

134

	

Section
3.20

	

Reports on
Assessment of Compliance with Servicing Criteria and Servicing
Compliance Statements

	

134

	

Section
3.21

	

Access to
Certain Documentation and Information Regarding the Mortgage
Loans

	

135

	

Section
3.22

	

Reserve
Fund

	

135

	

Section
3.23

	

Title,
Management and Disposition of REO Property.

	

137

	

Section
3.24

	

Obligations of
the Servicer in Respect of Prepayment Interest
Shortfalls

	

140

	

Section
3.25

	

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

	

140

	

Section
3.26

	

[Reserved].

	

140

	

Section
3.27

	

Swap
Agreement

	

140

	

Section
3.28

	

Replacement
Swap Agreement.

	

141

	

Section
3.29

	

Assigned
Prepayment Charges.

	

141

	
ARTICLE IV

	
Flow of Funds

	
143

	

Section
4.01

	

Distributions
to Holders of REMIC I Regular Interests and Class R-1 Residual
Interest

	

143

	

Section
4.02

	

Advances;
Remittance Reports.

	

143

	

Section
4.03

	

Nonrecoverable
Advances

	

145

	

Section
4.04

	

Distributions
to Holders of REMIC II Regular Interests and Class R-2 Residual
Interest

	

145

	

Section
4.05

	

Distributions
to Holders of Certificates, REMIC III Regular Interests, and Class
R-3 Interests.

	

145

	

Section
4.06

	

Statements.

	

150

	

Section
4.07

	

Compliance with
Withholding Requirements

	

154

	

Section
4.08

	

Commission
Reporting.

	

154

	

Section
4.09

	

Supplemental
Interest Trust.

	

157

	

Section
4.10

	

Preference
Claims

	

159

	
ARTICLE V

	
The Certificates

	
160

	

Section
5.01

	

The
Certificates.

	

160

	

Section
5.02

	

Certificates
Issuable in Classes; Distributions of Principal and Interest;
Authorized Denominations

	

167

	

Section
5.03

	

Registration of
Transfer and Exchange of Certificates

	

168

	

Section
5.04

	

Mutilated,
Destroyed, Lost or Stolen Certificates

	

168

	

Section
5.05

	

Persons Deemed
Owners

	

169

	

Section
5.06

	

[Reserved].

	

169

	

Section
5.07

	

Book-Entry for
Book-Entry Certificates

	

169

	

Section
5.08

	

Notices to
Clearing Agency

	

170

	

Section
5.09

	

Definitive
Certificates

	

170

	

Section
5.10

	

Office for
Transfer of Certificates

	

171

	

Section
5.11

	

Nature of
Certificates

	

171

	
ARTICLE VI

	
The Company and the
Servicer

	
171

	

Section
6.01

	

Liability of
the Company and the Servicer

	

171

	

Section
6.02

	

Merger or
Consolidation of the Company or the Servicer

	

171

	

Section
6.03

	

Limitation on
Liability of the Company, the Servicer and Others

	

171

	

Section
6.04

	

Neither the
Company nor the Servicer May Resign

	

172

	

Section
6.05

	

Trustee
Access

	

172

	
ARTICLE VII

	
Default

	
173

	

Section
7.01

	

Events of
Default

	

173

	

Section
7.02

	

Trustee to Act;
Appointment of Successor

	

175

	

Section
7.03

	

Notification to
Certificateholders.

	

177

	

Section
7.04

	

Waiver of
Servicer Events of Default

	

177

	
ARTICLE VIII

	
Concerning the Trustees

	
178

	

Section
8.01

	

Duties of
Trustees.

	

178

	

Section
8.02

	

Certain Matters
Affecting the Trustees

	

179

	

Section
8.03

	

Trustees Not
Liable for Certificates or Mortgage Loans

	

180

	

Section
8.04

	

Trustees May
Own Certificates

	

181

	

Section
8.05

	

Trustees’
Fees and Expenses

	

181

	

Section
8.06

	

Eligibility
Requirements for Trustees

	

181

	

Section
8.07

	

Resignation and
Removal of Trustees

	

182

	

Section
8.08

	

Successor
Trustee

	

182

	

Section
8.09

	

Merger or
Consolidation of Trustee

	

183

	

Section
8.10

	

Appointment of
Co-Trustee or Separate Trustee

	

183

	

Section
8.11

	

Authenticating
Agents

	

184

	

Section
8.12

	

Paying
Agents

	

185

	

Section
8.13

	

Duties of
Delaware Trustee.

	

186

	

Section
8.14

	

Amendment to
Certificate of Trust

	

186

	

Section
8.15

	

[Reserved].

	

186

	

Section
8.16

	

Trustees Act on
Behalf of Trust

	

186

	

Section
8.17

	

Limitation of
Liability

	

187

	

Section
8.18

	

Trustee Report
on Assessment of Compliance with Servicing Criteria

	

187

	
ARTICLE IX

	
Termination

	
187

	

Section
9.01

	

Termination
Upon Purchase by the Servicer or Liquidation of All Mortgage
Loans.

	

187

	

Section
9.02

	

Additional
Termination Requirements.

	

190

	

Section
9.03

	

Trust
Irrevocable

	

191

	

Section
9.04

	

Termination of
the Supplemental Interest Trust

	

191

	
ARTICLE X

	
Miscellaneous Provisions

	
191

	

Section
10.01

	

Amendment.

	

191

	

Section
10.02

	

Recordation of
Agreement

	

193

	

Section
10.03

	

Limitation on
Rights of Certificateholders

	

194

	

Section
10.04

	

Access to List
of Certificateholders

	

194

	

Section
10.05

	

Governing
Law

	

195

	

Section
10.06

	

Notices

	

195

	

Section
10.07

	

Compliance With
Regulation AB

	

195

	

Section
10.08

	

Severability of
Provisions

	

196

	

Section
10.09

	

Counterpart
Signatures

	

196

	

Section
10.10

	

Benefits of
Agreement

	

196

	

Section
10.11

	

Notices and
Copies to Rating Agencies.

	

196

	

Section
10.12

	

Covenant Not to
Place Trust Into Bankruptcy

	

197

	

Section
10.13

	

Covenant Not to
Place Company Into Bankruptcy

	

197

	

Section
10.14

	

Third-Party
Beneficiaries.

	

197

  

 

 

 

 

Exhibit
A          Form of
Certificates (other than Residual Certificates)

Exhibit B         
Form of Certificates

Exhibit C         
Form of Lost Note Affidavit

Exhibit D         
Mortgage Loan Schedule

Exhibit
E           Form
of Swap Agreement

Exhibit
F           Form
of Residual NIM Holder Certificate

Exhibit G         
Form of Mortgage Loan Assignment Agreement

Exhibit H         
Form of Additional Matter Incorporated Into the Form of the
Certificates

Exhibit
I           
Transferor Certificate For Residual Certificates

Exhibit
J          
Transferee Affidavit And Agreement For Residual Certificates

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

Exhibit
L           Form
of Investment Letter

Exhibit M         Form of
Trustee’s Certification Pursuant to Section 2.07

Exhibit N         
Form of Transferor Certificate

Exhibit O         
Form of ERISA Representation

Exhibit
P           Form
of Trustee Certification

 

 

Exhibit A

CUSIP 93934T AA0

 

WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

 

Class I-A

 

Evidencing a beneficial interest in a pool of
assets consisting of beneficial interests in another pool of assets
consisting of beneficial interests in another pool of assets
consisting of, among other things, one- to four-family mortgage
loans formed by

 

WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation (“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

 

	
WMABS Series 2007-HE2

	
Portion of the Class I-A Principal Balance as
of the

 Cut-Off Date Evidenced by this Certificate:

	
$286,276,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class I-A Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class I-A Principal Balance

 as of the Cut-Off Date:

	
$286,276,000.00

	
 

 

 

Cede & Co.

Registered Owner

Certificate No. _______

 

 

Exhibit A

CUSIP 93934T AB8

 

WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

 

Class II-A‐1

 

Evidencing a beneficial interest in a pool of
assets consisting of beneficial interests in another pool of assets
consisting of beneficial interests in another pool of assets
consisting of, among other things, one- to four-family mortgage
loans formed by

 

WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation (“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

 

	
WMABS Series 2007-HE2

	
Portion of the Class II-A-1 Principal Balance
as of the Cut-Off Date Evidenced by this Certificate:

	
$179,103,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class II-A‐1 Certificate Interest
Rate:

	
Variable

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class II-A‐1 Principal Balance

 as of the Cut-Off Date:

	
$179,103,000.00

	
 

 

 

Cede & Co.

Registered Owner

Certificate No. _______

 

 

Exhibit A

CUSIP 93934T AC6

 

WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

 

Class II-A‐2

 

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things, one- to
four-family mortgage loans formed by

 

WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation (“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

 

	
WMABS Series 2007-HE2

	
Portion of the Class II-A-2 Principal Balance
as of the Cut-Off Date Evidenced by this Certificate:

	
$139,241,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class II-A‐2 Certificate Interest
Rate:

	
Variable

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class II-A‐2 Principal Balance

 as of the Cut-Off Date:

	
$139,241,000.00

	
 

 

 

Cede & Co.

Registered Owner

Certificate No. _______

 

 

Exhibit A

CUSIP 93934T AD4

 

WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

 

Class II-A‐3

 

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things, one- to
four-family mortgage loans formed by

 

WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation (“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

 

	
WMABS Series 2007-HE2

	
Portion of the Class II-A-3 Principal Balance
as of the Cut-Off Date Evidenced by this Certificate:

	
$17,070,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class II-A‐3 Certificate Interest
Rate:

	
Variable

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class II-A‐3 Principal Balance

 as of the Cut-Off Date:

	
$17,070,000.00

	
 

 

 

Cede & Co.

Registered Owner

Certificate No. _______

 

 

Exhibit A

CUSIP 93934T AE2

 

WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

 

Class M-1

 

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things, one- to
four-family mortgage loans formed by

 

WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation (“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

The Class M-1
Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

	
WMABS Series 2007-HE2

	
Portion of the Class M-1 Principal Balance as
of the Cut-Off Date Evidenced by this Certificate:

	
$31,349,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-1 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class M-1 Principal Balance

 as of the Cut-Off Date:

	
$31,349,000.00

	
 

 

 

Cede & Co.

Registered Owner

Certificate No. _______

 

Exhibit A

CUSIP 93934T AF9

 

WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

 

Class M-2

 

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things, one- to
four-family mortgage loans formed by

 

WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation (“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

The Class M-2
Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

	
WMABS Series 2007-HE2

	
Portion of the Class M-2 Principal Balance as
of the

 Cut-Off Date Evidenced by this Certificate:

	
$29,721,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-2 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class M-2 Principal Balance

 as of the Cut-Off Date:

	
$29,721,000.00

	
 

 

 

Cede & Co.

Registered Owner

Certificate No. _______

 

Exhibit A

CUSIP 93934T AG7

 

	
WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

	
 

	
Class M-3

 

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things, one- to
four-family mortgage loans formed by

 

  

	
WaMu ASSET ACCEPTANCE CORP.

  

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation (“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

The Class M-3
Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

	
WMABS Series 2007-HE2

	
Portion of the Class M-3 Principal Balance as
of the

 Cut-Off Date Evidenced by this Certificate:

	
$17,507,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-3 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class M-3 Principal Balance

 as of the Cut-Off Date:

	
$17,507,000.00

	
 

 

 

Cede & Co.

Registered Owner

Certificate No. _______

 

Exhibit A

CUSIP 93934T AH5

	
WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

	
 

	
Class M-4

 

Evidencing a beneficial interest in a pool of
assets consisting of beneficial interests in another pool of assets
consisting of beneficial interests in another pool of assets
consisting of, among other things, one- to four-family mortgage
loans formed by

 

  

	
WaMu ASSET ACCEPTANCE CORP.

  

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation (“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

The Class M-4
Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

	
WMABS Series 2007-HE2

	
Portion of the Class M-4 Principal Balance as
of the

 Cut-Off Date Evidenced by this Certificate:

	
$15,064,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-4 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class M-4 Principal Balance

 as of the Cut-Off Date:

	
$15,064,000.00

	
 

 

 

Cede & Co.

Registered Owner

Certificate No. _______

 

 

 

Exhibit A

CUSIP 93934T AJ1

 

	
WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

	
 

	
Class M-5

 

Evidencing a beneficial interest in a pool of
assets consisting of beneficial interests in another pool of assets
consisting of beneficial interests in another pool of assets
consisting of, among other things, one- to four-family mortgage
loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation (“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

The Class M-5
Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

	
WMABS Series 2007-HE2

	
Portion of the Class M-5 Principal Balance as
of the

 Cut-Off Date Evidenced by this Certificate:

	
$15,064,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-5 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class M-5 Principal Balance

 as of the Cut-Off Date:

	
$15,064,000.00

	
 

 

 

Cede & Co.

Registered Owner

Certificate No. _______

 

 

Exhibit A

CUSIP 93934T AK8

 

	
WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

	
 

	
Class M-6

 

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things, one- to
four-family mortgage loans formed by

 

  

	
WaMu ASSET ACCEPTANCE CORP.

  

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation (“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

The Class M-6
Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

	
WMABS Series 2007-HE2

	
Portion of the Class M-6 Principal Balance as
of the

 Cut-Off Date Evidenced by this Certificate:

	
$13,028,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-6 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class M-6 Principal Balance

 as of the Cut-Off Date:

	
$13,028,000.00

	
 

 

 

Cede & Co.

Registered Owner

Certificate No. _______

 

Exhibit A

CUSIP 93934T AL6

 

	
WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

	
 

	
Class M-7

 

Evidencing a beneficial
interest in a pool of assets consisting of beneficial interests in
another pool of assets consisting of beneficial interests in
another pool of assets consisting of, among other things, one- to
four-family mortgage loans formed by

 

  

	
WaMu ASSET ACCEPTANCE CORP.

  

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation (“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

The Class M-7
Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

	
WMABS Series 2007-HE2

	
Portion of the Class M-7 Principal Balance as
of the

 Cut-Off Date Evidenced by this Certificate:

	
$13,028,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-7 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class M-7 Principal Balance

 as of the Cut-Off Date:

	
$13,028,000.00

	
 

 

 

Cede & Co.

Registered Owner

Certificate No. _______

 

Exhibit A

CUSIP 93934T AM4

 

	
WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

	
 

	
Class M-8

 

Evidencing a beneficial interest in a pool of
assets consisting of beneficial interests in another pool of assets
consisting of beneficial interests in another pool of assets
consisting of, among other things, one- to four-family mortgage
loans formed by

 

  

	
WaMu ASSET ACCEPTANCE CORP.

  

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation (“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

The Class M-8
Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

	
WMABS Series 2007-HE2

	
Portion of the Class M-8 Principal Balance as
of the

 Cut-Off Date Evidenced by this Certificate:

	
$11,400,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-8 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class M-8 Principal Balance

 as of the Cut-Off Date:

	
$11,400,000.00

	
 

 

 

Cede & Co.

Registered Owner

Certificate No. _______

 

 

 

Exhibit A

CUSIP 93934T AN2

	
WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

	
 

	
Class M-9

 

Evidencing a beneficial interest in a pool of
assets consisting of beneficial interests in another pool of assets
consisting of beneficial interests in another pool of assets
consisting of, among other things, one- to four-family mortgage
loans formed by

 

  

	
WaMu ASSET ACCEPTANCE CORP.

  

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company, a New
York corporation (“DTC”), to the Trust 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 is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede
& Co., has an interest herein.

The Class M-9
Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

	
WMABS Series 2007-HE2

	
Portion of the Class M-9 Principal Balance as
of the

 Cut-Off Date Evidenced by this Certificate:

	
$10,993,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class M-9 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class M-9 Principal Balance

 as of the Cut-Off Date:

	
$10,993,000.00

	
 

 

 

Cede & Co.

Registered Owner

Certificate No. _______

 

 

 

 

	

 

	
Exhibit A

 

	
WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

	
 

	
Class C

 

Evidencing a beneficial interest in a pool of
assets consisting of beneficial interests in another pool of assets
consisting of beneficial interests in another pool of assets
consisting of, among other things, one- to four-family mortgage
loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. 
THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE AVAILABILITY OF
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND
EXCEPT IN ACCORDANCE WITH SECTION 5.01(d) OF THE POOLING
AGREEMENT.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

The Class C Certificates will provide credit
support to certain Classes of Certificates, as described in the
Pooling Agreement.

	
WMABS Series 2007-HE2

	
Portion of the Class C Notional Amount as of
the

 Cut-Off Date Evidenced by this Certificate:

	
$814,263,307.43

	
 

	
 

	
 

	
 

	
 

	
 

	
Class C Certificate Interest Rate:

	
Variable, applied to the Class C Notional
Amount

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class C Principal Balance

 as of the Cut-Off Date:

	
$35,419,207.43

	
 

	
Class C Notional Amount

 as of the Cut-Off Date:

	
$814,263,307.43

	
 

 

 

	

WM
Asset Holdings Corp.

	

Registered Owner

	
Certificate No. _______

	
 

 

 

 

	
 

	

Exhibit
A

 

	
WASHINGTON MUTUAL
ASSET-BACKED CERTIFICATE

	
Class P

 

Evidencing a
Percentage Interest in certain distributions with respect to a pool
of one- to four-family mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE
CORP.

 

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  This
Certificate represents ownership of a “regular
interest” in a “real estate mortgage investment
conduit,” as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as
amended.  The issue date of this Certificate is March 13,
2007.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. 
THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE AVAILABILITY OF
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND
EXCEPT IN ACCORDANCE WITH SECTION 5.01(d) OF THE POOLING
AGREEMENT.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE
MADE EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

	
WMABS Series 2007-HE2

	
Portion of the Class P Principal Balance as of
the Cut-Off Date Evidenced by this Certificate:

	
100.00%

	

 

	

 

	

 

	

 

	

 

	

 

	
Cut-Off Date:

	
February 1, 2007

	

 

	
First Distribution Date:

	
March 26, 2007

	

 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	

 

	
Class P Principal Balance as of

 the Cut-Off Date:

	
$100.00

	
 

 

	

WM
Asset Holdings Corp.

 Registered Owner

	
 

	
 

	
Certificate No. _______

	

	

	

 

 

  
	
 

	
Exhibit B

 

 

	
 

	
WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

	
 

	
 

	
 

	
 

	
 

	
Class R

	
 

	

	

	

	

  

 

Evidencing a Percentage Interest in certain
distributions with respect to a pool of one- to four-family
mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

UNLESS OTHERWISE PROVIDED IN THE POOLING
AGREEMENT, ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS
CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A
TRANSFER AFFIDAVIT TO THE COMPANY AND THE TRUSTEE THAT (1) SUCH
TRANSFEREE IS NOT EITHER (A) THE UNITED STATES, ANY STATE OR
POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY
INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY
OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE
DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX
IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS
SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (C) ANY
ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE (ANY
SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), OR (C)
BEING HEREINAFTER REFERRED TO AS A “DISQUALIFIED
ORGANIZATION”), OR (D) AN AGENT OF A DISQUALIFIED
ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO ENABLE THE
TRANSFER TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX.  SUCH
AFFIDAVIT SHALL INCLUDE CERTAIN REPRESENTATIONS AS TO THE FINANCIAL
CONDITION OF THE PROPOSED TRANSFEREE.  NOTWITHSTANDING THE
REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR
OTHER DISPOSITION OF THIS CLASS R CERTIFICATE TO A DISQUALIFIED
ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT
WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT
LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. 
EACH HOLDER OF A CLASS R CERTIFICATE BY ACCEPTANCE OF THIS
CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF
THIS PARAGRAPH.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. 
THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE AVAILABILITY OF
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND
EXCEPT IN ACCORDANCE WITH SECTION 5.01(d) OF THE POOLING
AGREEMENT.

UNLESS OTHERWISE PROVIDED IN THE POOLING
AGREEMENT, IN THE CASE OF ANY CLASS R CERTIFICATE PRESENTED FOR
REGISTRATION IN THE NAME OF ANY PERSON, THE TRUSTEE SHALL REQUIRE
AN OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(c) OF THE POOLING AGREEMENT.  NO TRANSFER OF THIS
CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A “PLAN”) SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
(“ERISA”), SHALL BE MADE.

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  Solely
for U.S. federal income tax purposes, this Certificate represents
“residual interests” in “real estate mortgage
investment conduits,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended.

	
WMABS Series 2007-HE2

	
Percentage Interest evidenced by this
Class R Certificate in the distributions to be made with
respect to the Class R Certificates:

	
100%

	
 

	
 

	
 

	
Class R Certificate Interest Rate:

	
Variable. 

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class R Principal Balance

 as of the Cut-Off Date:

	
$0.00

	
 

 

	
Washington Mutual Bank

	
Registered Owner

	
Certificate No. ______

 

	

 

	
Exhibit B

	
 

	
WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

	
 

	
 

	
 

	
 

	
 

	
Class R-CX

	
 

	

	

	

	

 

Evidencing a Percentage Interest in certain
distributions with respect to a pool of one- to four-family
mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

UNLESS OTHERWISE PROVIDED IN THE POOLING
AGREEMENT, ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS
CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A
TRANSFER AFFIDAVIT TO THE COMPANY AND THE TRUSTEE THAT (1) SUCH
TRANSFEREE IS NOT EITHER (A) THE UNITED STATES, ANY STATE OR
POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY
INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY
OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE
DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX
IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS
SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (C) ANY
ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE (ANY
SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), OR (C)
BEING HEREINAFTER REFERRED TO AS A “DISQUALIFIED
ORGANIZATION”), OR (D) AN AGENT OF A DISQUALIFIED
ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO ENABLE THE
TRANSFER TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX.  SUCH
AFFIDAVIT SHALL INCLUDE CERTAIN REPRESENTATIONS AS TO THE FINANCIAL
CONDITION OF THE PROPOSED TRANSFEREE.  NOTWITHSTANDING THE
REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR
OTHER DISPOSITION OF THIS CLASS R-CX TO A DISQUALIFIED ORGANIZATION
OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL
BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH
PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY
PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS CERTIFICATE.  EACH HOLDER OF A CLASS
R-CX BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE
CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. 
THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE AVAILABILITY OF
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND
EXCEPT IN ACCORDANCE WITH SECTION 5.01(d) OF THE POOLING
AGREEMENT.

UNLESS OTHERWISE PROVIDED IN THE POOLING
AGREEMENT, IN THE CASE OF ANY CLASS R-CX PRESENTED FOR REGISTRATION
IN THE NAME OF ANY PERSON, THE TRUSTEE SHALL REQUIRE AN
OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(c) OF THE POOLING AGREEMENT.  NO TRANSFER OF THIS
CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A “PLAN”) SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
(“ERISA”), SHALL BE MADE.

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  Solely
for U.S. federal income tax purposes, this Certificate represents
“residual interests” in “real estate mortgage
investment conduits,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended.

	
WMABS Series 2007-HE2

	
Percentage Interest evidenced by this
Class R‐CX Certificate

 in the distributions to be made with respect to the
Class R‐CX Certificates:

	
100%

	
 

	
 

	
 

	
Class R‐CX Certificate Interest
Rate:

	
Variable. 

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class R‐CX Principal Balance

 as of the Cut-Off Date:

	
$0.00

	
 

 

	
WM Asset Holdings Corp.

	
Registered Owner

	
Certificate No. ______

 

	

 

	
Exhibit B

	
 

	
WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

	
 

	
 

	
 

	
 

	
 

	
Class R-PX

	
 

	

	

	

	

 

Evidencing a Percentage Interest in certain
distributions with respect to a pool of one- to four-family
mortgage loans formed by

 

	
WaMu ASSET ACCEPTANCE CORP.

 

UNLESS OTHERWISE PROVIDED IN THE POOLING
AGREEMENT, ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS
CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A
TRANSFER AFFIDAVIT TO THE COMPANY AND THE TRUSTEE THAT (1) SUCH
TRANSFEREE IS NOT EITHER (A) THE UNITED STATES, ANY STATE OR
POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY
INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY
OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE
DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX
IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS
SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (C) ANY
ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE (ANY
SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), OR (C)
BEING HEREINAFTER REFERRED TO AS A “DISQUALIFIED
ORGANIZATION”), OR (D) AN AGENT OF A DISQUALIFIED
ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO ENABLE THE
TRANSFER TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX.  SUCH
AFFIDAVIT SHALL INCLUDE CERTAIN REPRESENTATIONS AS TO THE FINANCIAL
CONDITION OF THE PROPOSED TRANSFEREE.  NOTWITHSTANDING THE
REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR
OTHER DISPOSITION OF THIS CLASS R-PX TO A DISQUALIFIED ORGANIZATION
OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL
BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH
PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY
PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS CERTIFICATE.  EACH HOLDER OF A CLASS
R-PX BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE
CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. 
THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE AVAILABILITY OF
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND
EXCEPT IN ACCORDANCE WITH SECTION 5.01(d) OF THE POOLING
AGREEMENT.

UNLESS OTHERWISE PROVIDED IN THE POOLING
AGREEMENT, IN THE CASE OF ANY CLASS R-PX PRESENTED FOR REGISTRATION
IN THE NAME OF ANY PERSON, THE TRUSTEE SHALL REQUIRE AN
OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(c) OF THE POOLING AGREEMENT.  NO TRANSFER OF THIS
CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A “PLAN”) SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
(“ERISA”), SHALL BE MADE.

This Certificate is issued by Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2 Trust.  Solely
for U.S. federal income tax purposes, this Certificate represents
“residual interests” in “real estate mortgage
investment conduits,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended.

	
WMABS Series 2007-HE2

	
Percentage Interest evidenced by this
Class R‐PX Certificate

 in the distributions to be made with respect to the
Class R‐PX Certificates:

	
100%

	
 

	
 

	
 

	
Class R‐PX Certificate Interest
Rate:

	
Variable. 

	
 

	
Cut-Off Date:

	
February 1, 2007

	
 

	
First Distribution Date:

	
March 26, 2007

	
 

	
Last Scheduled Distribution Date:

	
February 25, 2037

	
 

	
Class R‐PX  Principal Balance

 as of the Cut-Off Date:

	
$0.00

	
 

 

	
WM Asset Holdings Corp.

	
Registered Owner

	
Certificate No. ______

	
Exhibit C

FORM
OF LOST NOTE AFFIDAVIT

 

               
Personally appeared before me the undersigned authority to
administer oaths,                                                                   

               
 who first being duly sworn deposes and says:  Deponent
is                                                                                               

               
 of                                                                           
, successor by merger to                                                                        

               
 (“Seller”) and who has personal knowledge of the
facts set out in this affidavit.

 

On          
               
               
,                              
               
               
 did execute and deliver a promissory note in the

principal amount of
$                                            
.

 

               
That said note has been misplaced or lost through causes unknown
and is presently lost and unavailable after diligent search has
been made.  Seller’s records show that an amount of
principal and interest on said note is still presently outstanding,
due, and unpaid, and Seller is still owner and holder in due course
of said lost note.

 

               
Seller executes this Affidavit for the purpose of inducing LaSalle
Bank National Association, as Trustee on behalf of Washington
Mutual Asset-Backed Certificates WMABS Series 2007-HE2 Trust, to
accept the transfer of the above described loan from Seller.

 

               
Seller agrees to indemnify LaSalle Bank National Association,
Washington Mutual Asset Acceptance Corp. and Washington Mutual Bank
harmless for any losses incurred by such parties resulting from the
above described promissory note has been lost or misplaced.

 

By:                                                         

                                                               

 

STATE
OF                                            
)

                                                               
)       SS:

COUNTY
OF                                        
)

 

               
On this ______ day of ______________, 20_, before me, a Notary
Public, in and for said County and State, appeared
____________________, who acknowledged the extension of the
foregoing and who, having been duly sworn, states that any
representations therein contained are true.

 

               
Witness my hand and Notarial Seal this _________ day of 20__.

 

                                                               
               

                                                               
               

My commission expires                                        
..

 

	

Exhibit D

 

 

	

Mortgage Loan Schedule

 

 

 

 

Copies of the Mortgage Loan Schedule (which has been intentionally
omitted from this filing) may be obtained from WaMu Asset
Acceptance Corp. or LaSalle Bank National Association by
contacting:

 

in the case of WaMu Asset Acceptance Corp.,

 

 

Jason Laukaitis

WaMu Asset Acceptance Corp.

1301 Second Avenue, WMC 3501A

Seattle, WA  98101

Telephone:  (206) 302-4189

Facsimile:  (206) 554-2555

 

	
Exhibit E

Form
of SWAP Agreement

 

 

 

See
closing book or exhibit to Form 8-K filed with the SEC under

Washington Mutual Asset-Backed Certificates WMABS Series 2007-HE2
Trust

 

 

	
Exhibit F

Form
of Residual NIM Holder Certificate

 

 

 

 

LaSalle Bank National Association

135 South LaSalle Street, Suite 1511

Chicago, Illinois 60603

Attention:  Global Securities and Trust Services

 

Re:          
Pooling and Servicing Agreement (the “Agreement”),
dated as of February 1, 2007 among WaMu Asset Acceptance Corp.,
Washington Mutual Bank, Christiana Bank and Trust Company and
LaSalle Bank National Association, Washington Mutual Asset-Backed
Certificates WMABS Series 2007-HE2 Trust

 

Ladies and Gentlemen:

 

               
The undersigned hereby certifies that the undersigned is the
Residual NIM Holder and further certifies that the undersigned is
not an Affiliate of Washington Mutual Mortgage Securities Corp., a
Delaware corporation.  Capitalized terms used in this
certificate without definition have the meaning given to them in
the Agreement.

 

 

IN
WITNESS WHEREOF, the undersigned has executed this Certificate as
of ______________, 200__.

 

                                                                                               
[_________________________]

 

 

By:          
                                                                               

Name:      
                                                                               

Title:       
                                                                               

 

 

 

 

	
Exhibit G

FORM OF MORTGAGE LOAN
ASSIGNMENT AGREEMENT

This MORTGAGE LOAN
ASSIGNMENT AGREEMENT (this “Agreement”),
dated as of ________________, 200___, is by and between
________________, a ________________, as purchaser (the
“Company”) and WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATES WMABS SERIES 2007-HE2 TRUST, by LASALLE BANK
NATIONAL ASSOCIATION, not in its individual capacity but as
trustee, except with respect to Article 3 (the
“Trustee”), as seller (the
“Trust”).

In
consideration of the mutual covenants made herein and for other
good and valuable consideration the sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

ARTICLE
1.    DEFINITIONS

Capitalized terms
used but not defined herein shall have the meanings assigned to
them in the Pooling and Servicing Agreement dated as of February 1,
2007 (the “Pooling and Servicing Agreement”) by and
among Washington Mutual Bank, as servicer (the
“Servicer”), WaMu Asset Acceptance Corp., as Company,
Christiana Bank and Trust Company and the Trustee, as trustee.

ARTICLE 2.   SALE AND CONVEYANCE OF MORTGAGE LOAN;

POSSESSION OF FILES; PAYMENT OF PURCHASE

PRICE; DELIVERY OF MORTGAGE LOAN DOCUMENTS;

RECORDATION OF ASSIGNMENTS OF MORTGAGE

Section 2.1      Sale and Conveyance of
Mortgage Loans; Possession of Files

(a)               
Pursuant to Section 2.08 of the Pooling and Servicing Agreement and
Section 3.1 of the Mortgage Loan Purchase Agreement, subject to the
provisions  of the Pooling and Servicing Agreement and after
the deposit of the Purchase Price in the Collection Account and the
Trustee’s receipt of a written certification from the
Servicer of such deposit (the “Certification”), the
Trust hereby sells, transfers, assigns, sets over, and conveys to
the Company, without recourse, or, except as set forth in Article
3, representations or warranties,  all the right, title, and
interest of the Trust in and to the mortgage loan identified on
Schedule I attached hereto (the “Mortgage Loan”).

(b)              
In accordance with Section 3.17 of the Pooling and Servicing
Agreement, the Trustee on behalf of the Trust will deliver to the
Company, or to such third party as the Company may direct, the
documents comprising the Mortgage File with respect to the Mortgage
Loan upon the Trustee’s receipt of the Certification. 
Upon payment for the Mortgage Loan pursuant to Section 2.1(c)
below, the beneficial ownership of the Mortgage Note, the Mortgage,
and each of the other documents comprising the Mortgage File with
respect to the Mortgage Loan is and shall be vested in the Company,
and the ownership of all records and documents with respect to the
Mortgage Loan prepared by or which come into the possession of the
Trustee or the Trust or any agent or designee thereof shall
immediately vest in the Company and shall be delivered to the
Company or as the Company may otherwise direct.

(c)               
In full consideration for the sale of the Mortgage Loan pursuant to
Section 2.1(a) hereof, and upon the terms and conditions
of this Agreement, the Company hereby purchases the Mortgage
Loan.

(d)              
Subject to the fulfillment of any other conditions to such
[purchase/repurchase] under the Pooling and Servicing Agreement and
following the deposit of the Purchase Price in the Collection
Account and the Trustee’s receipt of the Certification, the
Company shall own and be entitled to receive with respect to the
Mortgage Loan all Monthly Payments and all other recoveries of
principal and interest.  All such amounts that are collected
after the date of the deposit of the Purchase Price and the
Trustee’s receipt of the Certification shall be held and
remitted by the Servicer to the Company in accordance with the
terms of this Agreement.

ARTICLE 3.  
REPRESENTATIONS AND WARRANTIES OF

THE TRUST CONCERNING THE MORTGAGE LOAN

The Trustee hereby represents and warrants to, and agrees with the
Company that, as to the Mortgage Loan and as of the date first
written above:

 

The
Trustee, to its actual knowledge has not taken any action with
respect to the Mortgage Loans, other than at the direction of the
Company, its attorneys and subservicers or WaMu Asset Acceptance
Corp., which would result in the imposition of any lien on,
security interest in, or other encumbrance of, the real property
securing the Mortgage Loan, other than permitted pursuant to the
Pooling and Servicing Agreement, and other than such action as
might be required to preserve and maintain the Mortgage.

ARTICLE 4.  
MISCELLANEOUS PROVISIONS

Section
4.1      Governing Law

This Agreement shall be governed by and
construed in accordance with the laws of the State of New York
(including Section 5-1401 of the New York General Obligations
Law) and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws without
giving effect to conflict of laws principles other than
Section 5-1401 of the New York General Obligations Law.

Section 4.2      Severability of
Provisions

If any one or more of the covenants,
agreements, provisions, or terms of this Agreement shall be held
invalid for any reason whatsoever, 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
covenants, agreements, provisions, or terms of this Agreement or
the rights of the parties hereunder.

Section 4.3      Schedules

The schedules to this Agreement are hereby
incorporated and made a part hereof and are an integral part of
this Agreement.

Section 4.4      Counterparts;
Successors and Assigns

This Agreement may be executed in one or
more counterparts, and by the different parties hereto on separate
counterparts, each of which, when so executed, shall be deemed to
be an original; such counterparts, together, shall constitute one
and the same agreement.  This Agreement shall inure to the
benefit of and be binding upon the Company and the Trust.

Section 4.5     
 Effect of
Headings

The headings in this Agreement are for
purposes of reference only and shall not limit or otherwise affect
the meaning hereof.

Section 4.6      Survival

The representations, warranties, covenants
and agreements of the parties provided in this Agreement and the
parties’ obligations hereunder shall survive the execution,
delivery and termination of this Agreement.

Section
4.7      Costs

The Company shall pay all costs, fees and
expenses incurred in connection with the transfer and delivery of
the Mortgage Loan purchased by the Company under this
Agreement.

 

[Signature page follows]

TO WITNESS THIS, the Company and the
Trustee have caused their names to be signed to this Mortgage Loan
Assignment Agreement by their duly authorized respective officers
as of the day and year first above written.

 

  

	
 

 

	

WASHINGTON MUTUAL
ASSET-BACKED CERTIFICATES WMABS SERIES 2007-HE2 TRUST by LASALLE
BANK NATIONAL ASSOCIATION, as Trustee and not in its individual
capacity, except with respect to Article 3

 

By:     _________________________________

Name:____________________________

Title: 
____________________________

	
 

	

 

	
 

 

	

[_________________________________]

 

By:     _________________________________

Name:____________________________

Title: 
____________________________

  

 

 

 

 

 

STATE OF
____________________                  
)

                                                                             
) ss.

COUNTY OF
__________________                 
)

 

This instrument was acknowledged before me
on ______________________, 200___, by _____________________ as
_________________________ of _________________________________.

Print
Name_________________________

NOTARY PUBLIC in and for the State of _____________, residing at
_______________________________________

My commission expires _____________________

 

 

 

STATE OF
                                                          
)

                                                                             
) ss.

COUNTY OF
                                                     
)

 

This instrument was acknowledged before me
on ______________________, 200___, by _____________________ as
_________________________ of LaSalle Bank National Association.

Print
Name_________________________

NOTARY PUBLIC in and for the State of

                 
, residing at _____________________

My commission expires _____________________

 

	

Exhibit H-1

 

	

FORM OF ADDITIONAL MATTER INCORPORATED
INTO THE FORM OF THE CERTIFICATES (OTHER THAN THE RESIDUAL AND
CLASS P CERTIFICATES)

 

 

This Certificate does not represent an
obligation of or interest in WaMu Asset Acceptance Corp. or any of
its affiliates.  Neither this Certificate nor the underlying
Mortgage Loans are guaranteed by any agency or instrumentality of
the United States.

 

This certifies that the above-named
Registered Owner is the registered owner of certain interests in a
pool of assets Trust consisting of, among other things, one- to
four-family mortgage loans (the “Mortgage Loans”),
formed by WaMu Asset Acceptance Corp. (the “Company”),
which term includes any successor entity under the Pooling
Agreement referred to below.  The Trust was created pursuant
to a Pooling and Servicing Agreement, dated as of the Cut-Off Date
stated above (the “Pooling Agreement”), among the
Company, the Servicer, LaSalle Bank National Association, as
Trustee (the “Trustee”), and Christiana Bank &
Trust Company, as Delaware 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 Pooling Agreement.  Nothing
herein shall be deemed inconsistent with such meanings, and in the
event of any conflict between the Pooling Agreement and the terms
of this Certificate, the Pooling Agreement shall control. 
This Certificate is issued under and is subject to the terms,
provisions and conditions of the Pooling Agreement, to which
Pooling Agreement the Holder of this Certificate, by virtue of the
acceptance hereof, assents and by which such Holder is bound.

 

Distributions will be made, pursuant to the
Pooling Agreement, on the 25th day of each month or, if such 25th
day is not a Business Day, the Business Day immediately following
(the “Distribution Date”), commencing on the first
Distribution Date specified above, to the Person in whose name this
Certificate is registered at the close of business on the Record
Date, to the extent of such Certificateholder’s Percentage
Interest represented by this Certificate in the portion (if any)
then distributable on the Certificates of this Class, as specified
in Section 4.01 of the Pooling Agreement.

 

Distributions on this Certificate will be
made by the Trustee by wire transfer or check mailed 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 Trustee of the pendency of such
distribution and only upon presentation and surrender of this
Certificate to the Certificate Registrar.

 

Reference is hereby made to the further
provisions of this Certificate set forth below, which further
provisions shall for all purposes have the same effect as if set
forth at this place.

 

Unless the certificate of authentication
hereon has been executed by or on behalf of the Trustee, by manual
signature, this Certificate shall not be entitled to any benefit
under the Pooling Agreement or be valid for any purpose.

IN WITNESS WHEREOF, the Trust has caused this
Certificate to be duly executed.

 

  

	
 

	
WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATES WMABS SERIES 2007-HE2 TRUST

 

	
 

	
By:

	
LASALLE BANK NATIONAL ASSOCIATION, as
Trustee

 

	
 

	
 

	
 

 

By: 
_____________________________________

  

 

 

 

	

(TRUSTEE’S CERTIFICATE OF
AUTHENTICATION)

 

 

This is one of the Certificates referred to
in the within-mentioned Pooling Agreement.

LASALLE BANK NATIONAL ASSOCIATION,

as Trustee

 

 

 

By:
_____________________________________

 

Dated:
___________________________________

 

 

	

WaMu ASSET ACCEPTANCE CORP.

WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATE

 

 

This Certificate is one of a duly authorized
issue of Certificates designated as Washington Mutual Asset-Backed
Certificates of the Series and Class specified hereon (herein
called the “Certificates”) and representing certain
interests in the Trust.

 

The Certificates do not represent an
obligation of, or an interest in, the Company or any of its
affiliates and are not insured or guaranteed by any governmental
agency.  The Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans
and other assets of the Trust, all as more specifically set forth
herein and in the Pooling Agreement.  In the event funds are
advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Servicer from the related recoveries on such
Mortgage Loan or from amounts received with respect to other
Mortgage Loans to the extent that such advance is not otherwise
recoverable.

 

As provided in the Pooling Agreement,
withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders,
such purposes including reimbursement to the Servicer of advances
made, or certain expenses incurred, by it.

 

The Pooling Agreement permits, with certain
exceptions therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the
rights of the Certificateholders under the Pooling Agreement at any
time by the Company, the Servicer and the Trustee with the consent
of the Holders of the Certificates evidencing Percentage Interests
aggregating not less than 66% and the NIMS Insurer.  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 Pooling
Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the
Certificates.

 

As provided in the Pooling 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
office of the Certificate Registrar or the office maintained by the
Trustee in the City and State of New York, duly endorsed by, or
accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee or any
Authenticating Agent duly executed by, the Holder hereof or such
Holder’s attorney duly authorized in writing, and thereupon
one or more new Certificates of Authorized Denominations evidencing
the same Percentage Interest set forth hereinabove will be issued
to the designated transferee or transferees.

 

[to be used only in the case of the Class C
Certificates:]  [No transfer, sale, pledge or other
disposition of a Certificate of this Class shall be made unless
such disposition is exempt from the registration requirements of
the Securities Act, and any applicable state securities laws or is
made in accordance with the Securities Act and laws.  In the
event that a transfer is to be made in reliance upon an exemption
from the Securities Act and such laws, in order to assure
compliance with the Act and such laws, the Certificateholder
desiring to effect such transfer and such Certificateholder’s
prospective transferee shall each certify to the Trustee and the
Company in writing the facts surrounding the transfer, except as
otherwise permitted by the Pooling Agreement.  In the event
that such a transfer is not to be made pursuant to Rule 144A of the
Act, there shall be delivered to the Trustee and the Company an
Opinion of Counsel that such transfer may be made pursuant to an
exemption from the Securities Act, which Opinion of Counsel shall
not be obtained at the expense of the Trustee, the Servicer or the
Company; or there shall be delivered to the Trustee and the Company
a transferor certificate by the transferor and an investment letter
shall be executed by the transferee, in all cases except as
otherwise permitted by the Pooling Agreement.  The Holder
hereof desiring to effect such transfer shall, and does hereby
agree to, indemnify the Trustee and the Company 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 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 5.01(e) of the Pooling Agreement.

 

The Certificates are issuable only as
registered Certificates without coupons in Authorized Denominations
specified in the Pooling Agreement.  As provided in the
Pooling Agreement and subject to certain limitations therein set
forth, Certificates are exchangeable for new Certificates of
Authorized Denominations of like Certificate Principal Balance or
Percentage Interest, as applicable, as requested by the Holder
surrendering the same.

 

No service charge may be made for any such
registration of transfer or exchange, but the Trustee may require
payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

 

The Company, the Servicer, the Trust, the
Trustee, the Delaware Trustee, the NIMS Insurer and any agent of
any of them may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the
Company, the Servicer, the Trust, the Trustee, the Delaware
Trustee, the NIMS Insurer nor any agent thereof shall be affected
by notice to the contrary.

 

The obligations created by the Pooling
Agreement and the Trust created thereby shall terminate upon (i)
the later of the final payment or other liquidation (including
purchase by the Terminator) of the last Mortgage Loan owned by the
Trust or the disposition of all property acquired upon foreclosure
or deed in lieu of foreclosure of any Mortgage Loan, and (ii) the
payment to Certificateholders of all amounts required to be paid to
them pursuant to the Pooling Agreement.  The Pooling Agreement
permits, but does not require, the Terminator to purchase from the
Trust all Mortgage Loans at the time subject thereto and all
property acquired by the Trust in respect of any Mortgage Loan upon
payment to the Certificateholders of the amounts specified in the
Pooling Agreement.  The exercise of such right will effect
early retirement of the Certificates, the Terminator’s right
to purchase being subject to the aggregate Principal Balance of the
Mortgage Loans at the time of purchase being less than the
percentage of the aggregate Principal Balance of the Mortgage Loans
as of the Cut-Off Date specified in the Pooling Agreement and other
limitations.

 

	

ASSIGNMENT

 

 

FOR VALUE RECEIVED the undersigned hereby
sell(s) and assign(s) and transfer(s) unto

____________________________________________________________________________________

 

____________________________________________________________________________________

 

 

(Please print or typewrite name and address,
including postal zip code of assignee.  Please insert social
security or other identifying number of assignee.)

the within WaMu Asset-Backed Certificate and
hereby irrevocably constitutes and appoints

____________________________________________________________________________________

 

Attorney to transfer said Certificate on the
Certificate Register, with full power of substitution in the
premises.

 

 

	
Dated:
______________________

	
 

	

_________________________________________

	
 

	
 

	
Signature

____________________________________________________________________________________

 

 

NOTICE:   The signature to this
assignment must correspond with the name as written upon the face
of the within instrument in every particular, without alteration or
enlargement or any change whatever.  This Certificate does not
represent an obligation of or an interest in WaMu Asset Acceptance
Corp. or any of its affiliates.  Neither this Certificate nor
the underlying Mortgage Loans are guaranteed by any agency or
instrumentality of the United States.

 

	

Exhibit H-2

 

	

FORM OF ADDITIONAL MATTER INCORPORATED
INTO

 THE FORM OF THE CLASS P CERTIFICATES

 

 

 

This Certificate does not represent an
obligation of or interest in WaMu Asset Acceptance Corp. or any of
its affiliates.  Neither this Certificate nor the underlying
Mortgage Loans are guaranteed by any agency or instrumentality of
the United States.

 

This certifies that the above-named
Registered Owner is the registered owner of certain interests in
(i) a pool of assets (“Trust”) consisting of, among
other things, one- to four-family mortgage loans (the
“Mortgage Loans”), formed by WaMu Asset Acceptance
Corp. (the “Company”).  The Trust was created
pursuant to a Pooling and Servicing Agreement, dated as of the
Cut-Off Date stated above (the “Pooling Agreement”),
among the Company, the Servicer, LaSalle Bank National Association,
as Trustee (the “Trustee”), and Christiana Bank &
Trust Company, as Delaware 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 Pooling Agreement.  Nothing
herein shall be deemed inconsistent with such meanings, and in the
event of any conflict between the Pooling Agreement and the terms
of this Certificate, the Pooling Agreement shall control. 
This Certificate is issued under and is subject to the terms,
provisions and conditions of the Pooling Agreement, to which
Pooling Agreement the Holder of this Certificate, by virtue of the
acceptance hereof, assents and by which such Holder is bound.

 

Distributions will be made, pursuant to the
Pooling Agreement, on the 25th day of each month or, if such 25th
day is not a Business Day, the Business Day immediately following
(the “Distribution Date”), commencing on the first
Distribution Date specified above, to the Person in whose name this
Certificate is registered at the close of business on the Record
Date, to the extent of such Certificateholder’s Percentage
Interest represented by this Certificate in the portions (if any)
then distributable on the Certificates of this Class pursuant to
Section 4.01 of the Pooling Agreement.

 

Distributions on this Certificate will be
made by the Trustee by wire transfer or check mailed 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 Trustee of the pendency of such
distribution and only upon presentation and surrender of this
Certificate to the Certificate Registrar.

 

Reference is hereby made to the further
provisions of this Certificate set forth below, which further
provisions shall for all purposes have the same effect as if set
forth at this place.

Unless the certificate of authentication
hereon has been executed by or on behalf of the Trustee, by manual
signature, this Certificate shall not be entitled to any benefit
under the Pooling Agreement or be valid for any purpose.

IN WITNESS WHEREOF, the Trust has caused this
Certificate to be duly executed.

 

  

	
 

	
WASHINGTON MUTUAL ASSET-BACKED
CERTIFICATES WMABS SERIES 2007-HE2 TRUST

 

	
 

	
By:

	
LASALLE BANK NATIONAL ASSOCIATION, as
Trustee

 

	
 

	
 

	
 

 

By: 
_____________________________________

  

 

 

 

	
(TRUSTEE’S CERTIFICATE OF
AUTHENTICATION)

 

 

This is one of the Certificates referred to
in the within-mentioned Pooling Agreement.

LASALLE BANK NATIONAL ASSOCIATION,

as Trustee

 

 

 

By:
___________________________________

 

Dated:
_________________________________

 

 

	
WaMu ASSET ACCEPTANCE CORP.

	
WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

 

 

This Certificate is one of a duly authorized
issue of Certificates designated as Washington Mutual Asset-Backed
Certificates of the Series and Class specified hereon (herein
called the “Certificates”) and representing certain
interests in the Trust.

 

The Certificates do not represent an
obligation of, or an interest in, the Company or any of its
affiliates and are not insured or guaranteed by any governmental
agency.  The Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans
and other assets of the Trust, all as more specifically set forth
herein and in the Pooling Agreement.  In the event funds are
advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Servicer from the related recoveries on such
Mortgage Loan or from amounts received with respect to other
Mortgage Loans to the extent that such advance is not otherwise
recoverable.

 

As provided in the Pooling Agreement,
withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders,
such purposes including reimbursement to the Servicer of advances
made, or certain expenses incurred, by it.

 

The Pooling Agreement permits, with certain
exceptions therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the
rights of the Certificateholders under the Pooling Agreement at any
time by the Company, the Servicer and the Trustee with the consent
of the Holders of the Certificates evidencing Percentage Interests
aggregating not less than 66% and the NIMS Insurer provided,
however, that any such amendment that modifies the rights of
the Class P Certificateholders to receive Assigned Prepayment
Premiums shall require the consent of each Class P
Certificateholder.  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 here for or in lieu
hereof whether or not notation of such consent is made upon this
Certificate.  The Pooling Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of
the Holders of any of the Certificates.

 

As provided in the Pooling 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
office of the Certificate Registrar or the office maintained by the
Trustee in the City and State of New York, duly endorsed by, or
accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee or any
Authenticating Agent duly executed by, the Holder hereof or such
Holder’s attorney duly authorized in writing, and thereupon
one or more new Certificates of Authorized Denominations evidencing
the same Percentage Interest set forth hereinabove will be issued
to the designated transferee or transferees.

 

No transfer, sale, pledge or other
disposition of a Certificate of this Class shall be made unless
such disposition is exempt from the registration requirements of
the Securities Act, and any applicable state securities laws or is
made in accordance with the Securities Act and laws.  In the
event that a transfer is to be made in reliance upon an exemption
from the Securities Act and such laws, in order to assure
compliance with the Act and such laws, the Certificateholder
desiring to effect such transfer and such Certificateholder’s
prospective transferee shall each certify to the Trustee and the
Company in writing the facts surrounding the transfer, except as
otherwise permitted by the Pooling Agreement.  In the event
that such a transfer is not to be made pursuant to Rule 144A of the
Act, there shall be delivered to the Trustee and the Company an
Opinion of Counsel that such transfer may be made pursuant to an
exemption from the Securities Act, which Opinion of Counsel shall
not be obtained at the expense of the Trustee, the Servicer or the
Company; or there shall be delivered to the Trustee and the Company
a transferor certificate by the transferor and an investment letter
shall be executed by the transferee, in all cases, except as
otherwise permitted by the Pooling Agreement.  The Holder
hereof desiring to effect such transfer shall, and does hereby
agree to, indemnify the Trustee and the Company 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 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 5.02(e) of the Pooling Agreement.

 

The Certificates are issuable only as
registered Certificates without coupons in Authorized Denominations
specified in the Pooling Agreement.  As provided in the
Pooling Agreement and subject to certain limitations therein set
forth, Certificates are exchangeable for new Certificates of
Authorized Denominations of like Certificate Principal Balance or
Percentage Interest, as applicable, as requested by the Holder
surrendering the same.

 

No service charge may be made for any such
registration of transfer or exchange, but the Trustee may require
payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

 

The Company, the Servicer, the Trust, the
Trustee, the Delaware Trustee, the NIMS Insurer and any agent of
any of them may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the
Company, the Servicer, the Trust, the Trustee, the Delaware
Trustee, the NIMS Insurer nor any agent thereof shall be affected
by notice to the contrary.

 

The obligations created by the Pooling
Agreement and the Trust created thereby shall terminate upon (i)
the later of the final payment or other liquidation (including
purchase by the Terminator) of the last Mortgage Loan owned by the
Trust or the disposition of all property acquired upon foreclosure
or deed in lieu of foreclosure of any Mortgage Loan, and (ii) the
payment to Certificateholders of all amounts required to be paid to
them pursuant to the Pooling Agreement.  The Pooling Agreement
permits, but does not require, the Terminator to purchase from the
Trust all Mortgage Loans at the time subject thereto and all
property acquired by the Trust in respect of any Mortgage Loan upon
payment to the Certificateholders of the amounts specified in the
Pooling Agreement.  The exercise of such right will effect
early retirement of the Certificates, the Terminator’s right
to purchase being subject to the aggregate Principal Balance of the
Mortgage Loans at the time of purchase being less than the
percentage of the aggregate Principal Balance of the Mortgage Loans
as of the Cut-Off Date specified in the Pooling Agreement and other
limitations.

 

	

ASSIGNMENT

 

 

FOR VALUE RECEIVED the undersigned hereby
sell(s) and assign(s) and transfer(s) unto

____________________________________________________________________________________

 

____________________________________________________________________________________

 

 

(Please print or typewrite name and address,
including postal zip code of assignee.  Please insert social
security or other identifying number of assignee.)

the within WaMu Mortgage Pass-Through
Certificate and hereby irrevocably constitutes and appoints

____________________________________________________________________________________

 

 

Attorney to transfer said Certificate on the
Certificate Register, with full power of substitution in the
premises.

 

 

	
Dated: 
_____________________

	
 

	

___________________________________________

	
 

	
 

	
Signature

 

____________________________________________________________________________________

 

NOTICE:   The signature to this
assignment must correspond with the name as written upon the face
of the within instrument in every particular, without alteration or
enlargement or any change whatever.  This Certificate does not
represent an obligation of or an interest in WaMu Asset Acceptance
Corp. or any of its affiliates.  Neither this Certificate nor
the underlying Mortgage Loans are guaranteed by any agency or
instrumentality of the United States.

 

	
 

	
Exhibit H-3

 

FORM OF ADDITIONAL MATTER INCORPORATED INTO

THE FORM OF THE RESIDUAL CERTIFICATES

 

This
Certificate does not represent an obligation of or interest in
Washington Mutual Mortgage Securities Corp. or any of its
affiliates.  Neither this Certificate nor the underlying
Mortgage Loans are guaranteed by any agency or instrumentality of
the United States.

 

This
certifies that the above-named Registered Owner is the registered
owner of certain interests in (i) a pool of assets
(“Trust”) consisting of, among other things, one- to
four-family mortgage loans (the “Mortgage Loans”),
formed by WaMu Asset Acceptance Corp. (the
“Company”).  The Trust was created pursuant to a
Pooling and Servicing Agreement, dated as of the Cut-Off Date
stated above (the “Pooling Agreement”), among the
Company, the Servicer, LaSalle Bank National Association, as
Trustee (the “Trustee”), and Christiana Bank &
Trust Company, as Delaware 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 Pooling Agreement.  Nothing
herein shall be deemed inconsistent with such meanings, and in the
event of any conflict between the Pooling Agreement and the terms
of this Certificate, the Pooling Agreement shall control. 
This Certificate is issued under and is subject to the terms,
provisions and conditions of the Pooling Agreement, to which
Pooling Agreement the Holder of this Certificate, by virtue of the
acceptance hereof, assents and by which such Holder is bound.

 

Distributions
will be made, pursuant to the Pooling Agreement, on the 25th day of
each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the “Distribution Date”),
commencing on the first Distribution Date specified above, to the
Person in whose name this Certificate is registered at the close of
business on the Record Date, to the extent of such
Certificateholder’s Percentage Interest represented by this
Certificate in the portions (if any) then distributable on the
Certificates of this Class pursuant to Section 4.01 of the Pooling
Agreement.

 

Distributions
on this Certificate will be made by the Trustee by wire transfer or
check mailed 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 Trustee of the
pendency of such distribution and only upon presentation and
surrender of this Certificate to the Certificate Registrar.

 

Reference is
hereby made to the further provisions of this Certificate set forth
below, which further provisions shall for all purposes have the
same effect as if set forth at this place.

Unless the certificate of authentication
hereon has been executed by or on behalf of the Trustee, by manual
signature, this Certificate shall not be entitled to any benefit
under the Pooling Agreement or be valid for any purpose.

IN
WITNESS WHEREOF, the Trust has caused this Certificate to be duly
executed.

 

  

	
 

	
WASHINGTON MUTUAL
ASSET-BACKED CERTIFICATES, WMABS SERIES 2007-HE2 TRUST

	

 

	

 

	

 

	
 

	
By:

	
LASALLE BANK
NATIONAL ASSOCIATION, as Trustee

	
 

	
 

	
 

	
 

	
By:

	

______________________________________

  

 

 (TRUSTEE’S CERTIFICATE OF AUTHENTICATION)

 

This
is one of the Certificates referred to in the within-mentioned
Pooling Agreement.

 

	
LASALLE BANK
NATIONAL ASSOCIATION, as Trustee

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	

______________________________________

	
 

	
Dated:

	

______________________________________

	
 

 

WaMu ASSET ACCEPTANCE CORP.

WASHINGTON MUTUAL ASSET-BACKED CERTIFICATE

 

This Certificate is one of a duly authorized
issue of Certificates designated as Washington Mutual Asset-Backed
Certificates of the Series and Class specified hereon (herein
called the “Certificates”) and representing certain
interest in the Trust.

 

The Certificates do not represent an
obligation of, or an interest in, the Company or any of its
affiliates and are not insured or guaranteed by any governmental
agency.  The Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans
and other assets of the Trust, all as more specifically set forth
herein and in the Pooling Agreement.  In the event funds are
advanced with respect to any Mortgage Loan or from amounts received
with respect to other Mortgage Loans to the extent that such
advance is not otherwise recoverable.

 

As provided in the Pooling Agreement,
withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders,
such purposes including reimbursement to the Servicer of advances
made, or certain expenses incurred, by it.

 

The Pooling Agreement permits, with certain
exceptions therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the
rights of the Certificateholders under the Pooling Agreement at any
time by the Company, the Servicer and the Trustee with the consent
of the Holders of the Certificates evidencing Percentage Interests
aggregating not less than 66% and the NIMS Insurer.  The
Pooling Agreement also permits the amendment thereof, in certain
limited circumstances, without the consent of the Holders of any of
the Certificates.

 

As provided in the Pooling 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
office of the Certificate Registrar or the office maintained by the
Trustee in the City and State of New York, duly endorsed by, or
accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee or any
Authenticating Agent duly executed by, the Holder hereof or such
Holder’s attorney duly authorized in writing, and thereupon
one or more new Certificates of Authorized Denominations evidencing
the same Percentage Interest set forth hereinabove will be issued
to the designated transferee or transferees.

 

No transfer, sale, pledge or other
disposition of a Certificate of this Class shall be made unless
such disposition is exempt from the registration requirements of
the Securities Act, and any applicable state securities laws or is
made in accordance with the Securities Act and laws.  In the
event that a transfer is to be made in reliance upon an exemption
from the Securities Act and such laws, in order to assure
compliance with the Act and such laws, the Certificateholder
desiring to effect such transfer and such Certificateholder’s
prospective transferee shall each certify to the Trustee and the
Company in writing the facts surrounding the transfer, except as
otherwise permitted by the Pooling Agreement.  In the event
that such a transfer is not to be made pursuant to Rule 144A of the
Act, there shall be delivered to the Trustee and the Company an
Opinion of Counsel that such transfer may be made pursuant to an
exemption from the Securities Act, which Opinion of Counsel shall
not be obtained at the expense of the Trustee, the Servicer or the
Company; or there shall be delivered to the Trustee and the Company
a transferor certificate by the transferor and an investment letter
shall be executed by the transferee, in all cases, except as
otherwise permitted by the Pooling Agreement.  The Holder
hereof desiring to effect such transfer shall, and does hereby
agree to, indemnify the Trustee and the Company 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 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.

 

The Certificates are issuable only as
registered Certificates without coupons in Authorized Denominations
specified in the Pooling Agreement.  As provided in the
Pooling Agreement and subject to certain limitations therein set
forth, Certificates are exchangeable for new Certificates of
Authorized Denominations of like Certificate Principal Balance or
Percentage Interest, as applicable, as requested by the Holder
surrendering the same.

 

No service charge may be made for any such
registration of transfer or exchange, but the Trustee may require
payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

 

The Company, the Servicer, the Trust, the
Trustee, the Delaware Trustee, the NIMS Insurer and any agent of
any of them may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the
Company, the Servicer, the Trust, the Trustee, the Delaware
Trustee, the NIMS Insurer nor any agent thereof shall be affected
by notice to the contrary.

 

The obligations created by the Pooling
Agreement and the Trust created thereby shall terminate upon (i)
the later of the final payment or other liquidation (including
purchase by the Terminator) of the last Mortgage Loan owned by the
Trust or the disposition of all property acquired upon foreclosure
or deed in lieu of foreclosure of any Mortgage Loan, and (ii) the
payment to Certificateholders of all amounts required to be paid to
them pursuant to the Pooling Agreement.  The Pooling Agreement
permits, but does not require, the Terminator to purchase from the
Trust all Mortgage Loans at the time subject thereto and all
property acquired by the Trust in respect of any Mortgage Loan upon
payment to the Certificateholders of the amounts specified in the
Pooling Agreement.  The exercise of such right will effect
early retirement of the Certificates, the Terminator’s right
to purchase being subject to the aggregate Principal Balance of the
Mortgage Loans at the time of purchase being less than the
percentage of the aggregate Principal Balance of the Mortgage Loans
as of the Cut-Off Date specified in the Pooling Agreement and other
limitations.

ASSIGNMENT

 

	
FOR VALUE RECEIVED
the undersigned hereby sell(s) and assign(s) and transfer(s)
unto

	

                                                                                                                                                           
                                                                                                                                                           
                                                                                                                                   

	

                                                                                                                                                           
                                                                                                                                                           
                                                                                                                                                           

	
(Please print or
typewrite name and address, including postal zip code of
assignee.  Please insert social security or other identifying
number of assignee.)

	
the within
Washington Mutual Asset-Backed Certificate and hereby irrevocably
constitutes and appoints

	

                                                                                                                                                           
                                                                                                                                                           
                                                                                   

	
Attorney to
transfer said Certificate on the Certificate Register, with full
power of substitution in the premises.

 

	
Dated:

	

                                               

	

                                                                                                               

 Signature

 

	

                                                                                                                                                           

	
NOTICE:  The
signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular,
without alteration or enlargement or any change whatever. 
This Certificate does not represent an obligation of or an interest
in Washington Mutual Mortgage Securities Corp. or any of its
affiliates.  Neither this Certificate nor the underlying
Mortgage Loans are guaranteed by any agency or instrumentality of
the United States.

 

 

	
Exhibit I

 

 

	

TRANSFEROR CERTIFICATE FOR RESIDUAL
CERTIFICATES

	
 

	
 

	

[Date]

 

 

LaSalle Bank National Association, as
Trustee

135 South LaSalle Street, Suite 1511

Chicago, Illinois, 60603

 

Attention: Global Securities and Trust
Services

 

Re:      WaMu Asset Acceptance Corp.
Washington Mutual Asset-Backed Certificates, WMABS Series 2007-HE2,
Residual

 

Ladies and Gentlemen:

 

This letter is delivered to you in connection
with the sale from
                                        
 (the “Seller”) to
          
                                   
(the “Purchaser”) of ___% Percentage Interest of
Washington Mutual Asset-Backed Certificates, WMABS Series 2007-HE2,
Residual (the “Certificate”), pursuant to Section 5.01
of the Pooling and Servicing Agreement (the “Pooling
Agreement”), dated as of February 1, 2007 among WaMu Asset
Acceptance Corp., as Company (the “Company”),
Washington Mutual Bank, as servicer (the “Servicer”),
LaSalle Bank National Association, as trustee (the
“Trustee”), and Christiana Bank & Trust Company, as
Delaware trustee.  All terms used herein and not otherwise
defined shall have the meanings set forth in the Pooling
Agreement.  The Seller hereby certifies, represents and
warrants to, and covenants with, the Company, the Servicer, the
Trustee and the Trust that:

 

1.         No purpose of
the Seller relating to the sale of the Certificate by the Seller to
the Purchaser is or will be to enable the Seller to impede the
assessment or collection of tax.

 

2.         The Seller
understands that the Purchaser has delivered to the Trustee and the
Company a transferee affidavit and agreement in the form attached
to the Pooling Agreement as Exhibit J.  The Seller does not
know or believe that any representation contained therein is
false.

 

3.         The Seller has
no actual knowledge that the proposed Transferee is not a Permitted
Transferee.

 

4.         The Seller has
no actual knowledge that the Purchaser would be unwilling or unable
to pay taxes due on its share of the taxable income attributable to
the Certificates.

 

5.         The Seller has
conducted a reasonable investigation of the financial condition of
the Purchaser and, as a result of the investigation, found that the
Purchaser has historically paid its debts as they came due, and
found no significant evidence to indicate that the Purchaser will
not continue to pay its debts as they come due in the future.

6.         The Purchaser
has represented to the Seller that, if the Certificates constitute
a noneconomic residual interest, it (i) understands that as holder
of a noneconomic residual interest it may incur tax liabilities in
excess of any cash flows generated by the interest, and (ii)
intends to pay taxes associated with its holding of the
Certificates as they become due.

 

	
 

	
Very truly yours,

 

[Seller]

 

 

 

By: 
__________________________________

           
Name: __________________________

           
Title: ___________________________

 

 

 

	
Exhibit J

 

 

	

TRANSFEREE AFFIDAVIT AND AGREEMENT FOR
RESIDUAL CERTIFICATES

 

 

	
STATE OF

	
_________________________

	
)

	
 

	
 

	
 

	
)

	
ss:

	
COUNTY OF

	
_________________________

	
)

	
 

 

 

[NAME OF OFFICER], being first duly sworn,
deposes and says:

 

1.         That he is
[Title of Officer] of [Name of Owner] (record or beneficial owner
of the Residual Certificate (the “Owner”)), a [savings
institution] [corporation] duly organized and existing under the
laws of [the State of
                 
] [the United States], on behalf of which he makes this affidavit
and agreement.

 

2.         That the Owner
(i) is not and will not be a “disqualified
organization” as of [date of transfer] within the meaning of
Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended
(the “Code”) and will endeavor to remain other than a
disqualified organization for so long as it retains its ownership
interest in the Residual Certificates, and (ii) is acquiring the
Residual Certificates for its own account or for the account of
another Owner from which it has received an affidavit and agreement
in substantially the same form as this affidavit and
agreement.  (For this purpose, a disqualified
organization” means the United States, any state or political
subdivision thereof, or 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 or international organization, or any agency or
instrumentality of such foreign government or organization, any
rural 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.         That the Owner
is aware (i) of the tax that would be imposed on transfers of the
Residual Certificates after March 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 middle-man) for a
disqualified organization, 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 not a disqualified organization and, at the time
of transfer, such person does not have actual knowledge that the
affidavit is false; and (iv) that the Residual Certificates may be
a “noneconomic residual interest” within the meaning of
Treasury regulations promulgated pursuant to the Code and that the
transferor of a noneconomic residual interest will remain liable
for any taxes due with respect to the income on such residual
interest, if a significant purpose of the transfer was to enable
the transferor to impede the assessment or collection of tax.

 

4.         That the Owner
is aware of the tax imposed on a “pass-through entity”
holding the Residual Certificates if at any time during the taxable
year of the pass-through entity a disqualified organization 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.         That the Owner
is aware that the Trustee will not register the Transfer of the Residual
Certificates unless the transferee, or the transferees' agent, delivers to it an
affidavit and agreement, among other things, in substantially the same form as
this affidavit and agreement.  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.         That the Owner
has reviewed the restrictions set forth on the face of the Residual
Certificates and the provisions of Section 5.01 of the Pooling
Agreement under which the Residual Certificates were issued (in
particular, clauses (iii)(A) and (iii)(B) of Section 5.01(c) which
authorize the Trustee to deliver payments to a person other than
the Owner and negotiate a mandatory sale by the Trustee in the
event the Owner holds such Certificates in violation of Section
5.01).  The Owner expressly agrees to be bound by and to
comply with such restrictions and provisions.

 

7.         That 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 Residual Certificates
will only be owned, directly or indirectly, by an Owner that is not
a disqualified organization.

 

8.         The
Owner’s Taxpayer Identification Number is
                              
..

 

9.         That no purpose
of the Owner relating to the purchase of the Residual Certificates
by the Owner is or will be to enable the transferor to impede the
assessment or collection of tax, and that in making this
representation, the Owner warrants that the Owner is familiar with
Treasury Regulation 1.860E-1(c) and with the preamble to the
adoption of amendments to that regulation as of July 19, 2002,
attached hereto as Exhibit 1.

 

10.       
That the Owner anticipates that it will, so long as it holds the
Residual Certificates, have sufficient assets to pay any taxes owed
by the holder of such Certificates, and hereby represents to and
for the benefit of the person from whom it acquired the Residual
Certificates that the Owner intends to pay taxes associated with
holding such Certificates as they become due, fully understanding
that it may incur tax liabilities in excess of any cash flows
generated by the Residual Certificates.  That the Owner has
provided financial statements or other financial information
requested by the transferor in connection with the transfer of the
Residual Certificates to permit the transferor to assess the
financial capability of the Owner to pay such taxes.

 

11.       
That 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 Residual Certificates remain outstanding.

 

12.       
That the Owner has no present knowledge or expectation that it will
become insolvent or subject to a bankruptcy proceeding for so long
as any of the Residual Certificates remain outstanding.

 

13.       
That the Owner is familiar with Treasury Regulation 1.860E-1(c) and
with the preamble to the adoption of amendments to that regulation
as of July 19, 2002, attached hereto as Exhibit 1, and that no
purpose of the Owner relating to any sale of the Residual
Certificates by the Owner will be to impede the assessment or
collection of tax.

 

14.       
The Owner is a citizen or resident of the United States, a
corporation, partnership or other entity treated as a partnership
or corporation for U.S. federal income tax purposes created or
organized in, or under the laws of, the United States or any state
thereof or the District of Columbia, or an estate or trust whose
income from sources without the United States is includible in
gross income for United States federal income tax purposes
regardless of its connection with the conduct of a trade or
business within the United States.

 

15.       
The Owner hereby agrees that it will not cause income from the
Residual Certificates to be attributable to a foreign permanent
establishment or fixed base (within the meaning of an applicable
income tax treaty) of the Owner or another United States
taxpayer.

 

16.       
The Owner hereby agrees to cooperate with the Company and to take
any action required of it by the Code or Treasury regulations
thereunder (whether now or hereafter promulgated) in order to
create or maintain the REMIC status of each REMIC under the Pooling
Agreement (the “REMICs”).

 

17.       
The Owner hereby agrees that it will not take any action that could
endanger the REMIC status of the REMICs or result in the imposition
of tax on the REMICs unless counsel for, or acceptable to, the
Company has provided an opinion that such action will not result in
the loss of such REMIC status or the imposition of such tax, as
applicable.

 

18.       
The Owner as transferee of the Residual Certificates has
represented to the transferor that, if the Residual Certificates
constitute a noneconomic residual interest, the Owner (i)
understands that as holder of a noneconomic residual interest it
may incur tax liabilities in excess of any cash flows generated by
the interest, and (ii) intends to pay taxes associated with its
holding of the Residual Certificates as they become due.

 

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 [Title of Officer] and its
corporate seal to be hereunto attached, attested by its [Assistant]
Secretary, this
          day
of          ,
20     .

 

	
 

	
[Name of Owner]

 

 

By: 
__________________________________

[Name of Officer]

[Title of Officer]

	
[Corporate Seal]

 

ATTEST:

 

 

 

[Assistant Secretary]

	
 

 

Personally appeared before me the above-named
[Name of Officer], known or proved to me to be the same person who
executed the foregoing instrument and to be the [Title of Officer]
of the Owner, and Acknowledged to me that he executed the same as
his free act and deed and the free act and deed of the Owner.

Subscribed and sworn before me this ___ day
of __________________, 20__.

 

	
 

	
NOTARY PUBLIC

 

COUNTY OF
________________________________

STATE OF
__________________________________

My commission expires the
       day of
                  
, 20      .

 

 

 

	
Exhibit 1 to Transferee Affidavit

 

 

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 9004]

RIN 1545-AW98

 

Real Estate Mortgage Investment
Conduits

 

AGENCY: Internal Revenue Service (IRS),
Treasury.

 

ACTION: Final regulations.

 

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

 

	
SUMMARY:

	
This document contains final regulations
relating to safe harbor transfers of noneconomic residual interests
in real estate mortgage investment conduits (REMICs).  The
final regulations provide additional limitations on the
circumstances under which transferors may claim safe harbor
treatment.

	
 

	
 

	
DATES:

	
Effective Date: These regulations are
effective July 19, 2002.  Applicability Date: For dates of
applicability, see Sec. 1.860E-(1)(c)(10).

	
 

	
 

	
FOR FURTHER INFORMATION CONTACT:

	
Courtney Shepardson at (202) 622-3940

(not a toll-free number).

	

	

	

 

SUPPLEMENTARY INFORMATION:

 

Paperwork Reduction Act

 

The collection of information in this final
rule has been reviewed and, pending receipt and evaluation of
public comments, approved by the Office of Management and Budget
(OMB) under 44 U.S.C. 3507 and assigned control number
1545-1675.  The collection of information in this regulation
is in Sec. 1.860E-1(c)(5)(ii).  This information is required
to enable the IRS to verify that a taxpayer is complying with the
conditions of this regulation.  The collection of information
is mandatory and is required.  Otherwise, the taxpayer will
not receive the benefit of safe harbor treatment as provided in the
regulation.  The likely respondents are businesses and other
for-profit institutions.

 

Comments on the collection of information
should be sent to the Office of Management and Budget, Attn: Desk
Officer for the Department of the Treasury, Office of Information
and Regulatory Affairs, Washington, DC, 20503, with copies to the
Internal Revenue Service, Attn: IRS Reports Clearance Officer,
W:CAR:MP:FP:S, Washington, DC 20224.  Comments on the
collection of information should be received by September 17,
2002.  Comments are specifically requested
concerning: 

Whether the collection of information is
necessary for the proper performance of the functions of the
Internal Revenue Service, including whether the information will
have practical utility; 

 

The accuracy of the estimated burden
associated with the collection of information (see below);

 

How the quality, utility, and clarity of
the information to be collected may be enhanced;

 

How the burden of complying with the
collection of information may be minimized, including through the
application of automated collection techniques or other forms of
information technology; and

 

Estimates of capital or start-up costs
and costs of operation, maintenance, and purchase of service to
provide information.

An agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information
unless it displays a valid control number assigned by the Office of
Management and Budget.

 

The estimated total annual reporting burden
is 470 hours, based on an estimated number of respondents of 470
and an estimated average annual burden hours per respondent of one
hour.

 

Books or records relating to a collection of
information must be retained as long as their contents may become
material in the administration of any internal revenue law. 
Generally, tax returns and tax return information are confidential,
as required by 26 U.S.C. 6103.

 

Background

 

This document contains final regulations
regarding the proposed amendments to 26 CFR part 1 under section
860E of the Internal Revenue Code (Code).  The regulations
provide the circumstances under which a transferor of a noneconomic
REMIC residual interest meeting the investigation and
representation requirements may avail itself of the safe harbor by
satisfying either the formula test or the asset test.

 

Final regulations governing REMICs, issued in
1992, contain rules governing the transfer of noneconomic REMIC
residual interests.  In general, a transfer of a noneconomic
residual interest is disregarded for all tax purposes if a
significant purpose of the transfer is to enable the transferor to
impede the assessment or collection of tax.  A purpose to
impede the assessment or collection of tax (a wrongful purpose)
exists if the transferor, at the time of the transfer, either knew
or should have known that the transferee would be unwilling or
unable to pay taxes due on its share of the REMIC’s taxable
income.

 

Under a safe harbor, the transferor of a
REMIC noneconomic residual interest is presumed not to have a
wrongful purpose if two requirements are satisfied: (1) the
transferor conducts a reasonable investigation of the
transferee’s financial condition (the investigation
requirement); and (2) the transferor secures a representation from
the transferee to the effect that the transferee understands the
tax obligations associated with holding a residual interest and
intends to pay those taxes (the representation requirement).

 

The IRS and Treasury have been concerned that
some transferors of noneconomic residual interests claim they
satisfy the safe harbor even in situations where the economics of
the transfer clearly indicate the transferee is unwilling or unable
to pay the tax associated with holding the interest.  For this
reason, on February 7, 2000, the IRS published in the Federal
Register (65 FR 5807) a notice of proposed rulemaking
(REG-100276-97; REG-122450-98) designed to clarify the safe harbor
by adding the “formula test,” an economic test. 
The proposed regulation provides that the safe harbor is
unavailable unless the present value of the anticipated tax
liabilities associated with holding the residual interest does not
exceed the sum of: (1) The present value of any consideration given
to the transferee to acquire the interest; (2) the present value of
the expected future distributions on the interest; and (3) the
present value of the anticipated tax savings associated with
holding the interest as the REMIC generates losses.

 

The notice of proposed rulemaking also
contained rules for FASITs.  Section 1.860H-6(g) of the
proposed regulations provides requirements for transfers of FASIT
ownership interests and adopts a safe harbor by reference to the
safe harbor provisions of the REMIC regulations.

 

In January 2001, the IRS published Rev. Proc.
2001-12 (2001-3 I.R.B. 335) to set forth an alternative safe harbor
that taxpayers could use while the IRS and the Treasury considered
comments on the proposed regulations.  Under the alternative
safe harbor, if a transferor meets the investigation requirement
and the representation requirement but the transfer fails to meet
the formula test, the transferor may invoke the safe harbor if the
transferee meets a two-prong test (the asset test).  A
transferee generally meets the first prong of this test if, at the
time of the transfer, and in each of the two years preceding the
year of transfer, the transferee’s gross assets exceed $100
million and its net assets exceed $10 million.  A transferee
generally meets the second prong of this test if it is a domestic,
taxable corporation and agrees in writing not to transfer the
interest to any person other than another domestic, taxable
corporation that also satisfies the requirements of the asset
test.  A transferor cannot rely on the asset test if the
transferor knows, or has reason to know, that the transferee will
not comply with its written agreement to limit the restrictions on
subsequent transfers of the residual interest.

 

Rev. Proc. 2001-12 provides that the asset
test fails to be satisfied in the case of a transfer or assignment
of a noneconomic residual interest to a foreign branch of an
otherwise eligible transferee.  If such a transfer or
assignment were permitted, a corporate taxpayer might seek to claim
that the provisions of an applicable income tax treaty would
resource excess inclusion income as foreign source income, and
that, as a consequence, any U.S. tax liability attributable to the
excess inclusion income could be offset by foreign tax
credits.  Such a claim would impede the assessment or
collection of U.S. tax on excess inclusion income, contrary to the
congressional purpose of assuring that such income will be taxable
in all events.  See, e.g., sections 860E(a)(1), (b), (e) and
860G(b) of the Code.

 

The Treasury and the IRS have learned that
certain taxpayers transferring noneconomic residual interests to
foreign branches have attempted to rely on the formula test to
obtain safe harbor treatment in an effort to impede the assessment
or collection of U.S. tax on excess inclusion income. 
Accordingly, the final regulations provide that if a noneconomic
residual interest is transferred to a foreign permanent
establishment or fixed base of a U.S. taxpayer, the transfer is not
eligible for safe harbor treatment under either the asset test or
the formula test.  The final regulations also require a
transferee to represent that it will not cause income from the
noneconomic residual interest to be attributable to a foreign
permanent establishment or fixed base.

Section 1.860E-1(c)(8) provides computational
rules that a taxpayer may use to qualify for safe harbor status
under the formula test.  Section 1.860E-1(c)(8)(i) provides
that the transferee is presumed to pay tax at a rate equal to the
highest rate of tax specified in section 11(b).  Some
commentators were concerned that this presumed rate of taxation was
too high because it does not take into consideration taxpayers
subject to the alternative minimum tax rate.  In light of the
comments received, this provision has been amended in the final
regulations to allow certain transferees that compute their taxable
income using the alternative minimum tax rate to use the
alternative minimum tax rate applicable to corporations.

 

Additionally, Sec. 1.860E-1(c)(8)(iii)
provides that the present values in the formula test are to be
computed using a discount rate equal to the applicable Federal
short-term rate prescribed by section 1274(d).  This is a
change from the proposed regulation and Rev. Proc. 2001-12. 
In those publications the provision stated that “present
values are computed using a discount rate equal to the applicable
Federal rate prescribed in section 1274(d) compounded
semiannually” and that “[a] lower discount rate may be
used if the transferee can demonstrate that it regularly borrows,
in the course of its trade or business, substantial funds at such
lower rate from an unrelated third party.”  The IRS and
the Treasury Department have learned that, based on this provision,
certain taxpayers have been attempting to use unrealistically low
or zero interest rates to satisfy the formula test, frustrating the
intent of the test.  Furthermore, the Treasury Department and
the IRS believe that a rule allowing for a rate other than a rate
based on an objective index would add unnecessary complexity to the
safe harbor.  As a result, the rule in the proposed
regulations that permits a transferee to use a lower discount rate,
if the transferee can demonstrate that it regularly borrows
substantial funds at such lower rate, is not included in the final
regulations; and the Federal short-term rate has been substituted
for the applicable Federal rate.  To simplify taxpayers’
computations, the final regulations allow use of any of the
published short-term rates, provided that the present values are
computed with a corresponding period of compounding.  With the
exception of the provisions relating to transfers to foreign
branches, these changes generally have the proposed applicability
date of February 4, 2000, but taxpayers may choose to apply the
interest rate formula set forth in the proposed regulation and Rev.
Proc. 2001-12 for transfers occurring before August 19, 2002.

 

It is anticipated that when final regulations
are adopted with respect to FASITs, Sec. 1.860H-6(g) of the
proposed regulations will be adopted in substantially its present
form, with the result that the final regulations contained in this
document will also govern transfers of FASIT ownership interests
with substantially the same applicability date as is contained in
this document.

 

Effect on Other Documents

 

Rev. Proc. 2001-12 (2001-3 I.R.B. 335) is
obsolete for transfers of noneconomic residual interests in REMICs
occurring on or after August 19, 2002.

 

Special Analyses

 

It is hereby certified that these regulations
will not have a significant economic impact on a substantial number
of small entities.  This certification is based on the fact
that it is unlikely that a substantial number of small entities
will hold REMIC residual interests.  Therefore, a Regulatory
Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C.
chapter 6) is not required.  It has been determined that this
Treasury decision is not a significant regulatory action as defined
in Executive Order 12866.  Therefore, a regulatory assessment
is not required.  It also has been determined that sections
553(b) and 553(d) of the Administrative Procedure Act (5 U.S.C.
chapter 5) do not apply to these regulations.

 

Drafting Information

 

The principal author of these regulations is
Courtney Shepardson.  However, other personnel from the IRS
and Treasury Department participated in their development.

 

List of Subjects

26 CFR Part 1

 

Income taxes, Reporting and record keeping
requirements.

 

26 CFR Part 602

 

Reporting and record keeping
requirements.

 

Adoption of Amendments to the Regulations

 

Accordingly, 26 CFR parts 1 and 602 are
amended as follows:

 

PART 1--INCOME TAXES

 

Paragraph 1.  The authority citation for
part 1 continues to read in part as follows:

 

    Authority: 26 U.S.C. 7805
* * *

 

	
Exhibit K

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 responsible for reporting the
information to the Company pursuant to Section 4.08(a)(iv). 
If the Company is indicated below as to any item, then the Company
is primarily responsible for obtaining that information.

 

Under Item 1 of Form 10-D: a) items marked “4.06
statement” are required to be included in the periodic
Distribution Date statement under Section 4.06, provided by the
Trustee in accordance with section 4.06 and based on information
received from the Servicer; or the Swap Counterparty and b) items
marked “Form 10-D report” are required to be in the
Form 10-D report but not the 4.06 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. Items indicated as
“N/A” are not applicable to the transaction.

 

  

	

Form

	

Item

	

Description

	

Responsible Party

	

10-D

	

1

	
Distribution and Pool Performance
Information

	
 

	
 

	
 

	
Item 1121 – 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.

	
4.06 statement

	
 

	
 

	
(2) Cash flows received and the sources
thereof for distributions, fees and expenses.

	
4.06 statement

	
 

	
 

	
(3) Calculated amounts and distribution of the
flow of funds for the period itemized by type and priority of
payment, including:

	
4.06 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.

	
4.06 statement and the Company, as
applicable

	
 

	
 

	

               
(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.

	
4.06 statement and the Company, as
applicable

	
 

	
 

	

               
(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.

	
4.06 statement

	
 

	
 

	

               
(iv) The amount of excess cash flow or excess spread and the
disposition of excess cash flow.

	
4.06 statement

	
 

	
 

	
(4) Beginning and ending principal balances of
the asset-backed securities.

	
4.06 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.

	
4.06 statement

	
 

	
 

	
(6) Beginning and ending balances of
transaction accounts, such as reserve accounts, and material
account activity during the period.

	
4.06 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.

	
4.06 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
life, weighted average remaining term, pool factors and prepayment
amounts.

	
4.06 statement

 

 

	
 

	
 

	
(9) Delinquency and loss information for the
period.

 

In addition, describe any material changes to
the information specified in Item 1100(b)(5) of Regulation AB
regarding the pool assets.

	
4.06 statement

 

 

Form 10-D report:  Company

	
 

	
 

	
(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.

	
4.06 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.

	
4.06 statement and the Servicer, as
applicable

	
 

	
 

	
(12) Material breaches of pool asset
representations or warranties or transaction covenants.

	
Company

	
 

	
 

	
(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.

	
4.06 statement

	
 

	
 

	
(14) Information regarding any new issuance of
asset-backed securities backed by the same asset pool,

	
Form 10-D report:  Company

	
 

	
 

	
information regarding 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.

	
Form 10-D report:  Company

	
 

	
 

	
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.

	
Form 10-D report:  Servicer

	
 

	
 

	

Item 1121(b)
– Pre-Funding or Revolving Period Information

 

Updated pool information as required under
Item 1121(b).

	
N/A

	
 

	

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)

	
Seller

	
 

	
 

	
Company

	
Company

	
 

	
 

	
Trustee

	
Trustee

	
 

	
 

	
Issuing entity

	
Company

	
 

	
 

	
Servicer, affiliated Servicer, other Servicer
servicing 20% or more of pool assets at time of report, other
material servicers

	
Servicer

	
 

	
 

	
Originator of 20% or more of pool assets as of
the Cut-off Date

	
Seller

	
 

	
 

	
Custodian

	
Trustee (to the extent of actual knowledge or
receipt of notice from the custodian)

	
 

	

3

	
Sales of Securities and Use of
Proceeds

	
 

	
 

	
 

	
Information from Item 2(a) of Part II of
Form 10-Q

	
Company

	
 

	
 

	

With respect to any sale
of securities by

the sponsor, Company 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.

	
 

	
 

	

4

	
Defaults Upon Senior Securities

	
 

	
 

	
 

	
Information from Item 3 of Part II of Form
10-Q

	
Trustee

	
 

	
 

	

Report the occurrence of
any Event of

Default (after expiration
of any grace

period and provision of
any required

notice)

	
 

	
 

	

5

	
Submission of Matters to a Vote of Security
Holders

	
 

	
 

	
 

	
Information from Item 4 of Part II of Form
10-Q

	
Servicer, if the Servicer is the party
submitting the matter to a vote or has knowledge of the submission,
Company, if the Company is the party submitting the matter to a
vote or has knowledge of the submission, and the Trustee in all
other cases

	
 

	

6

	
Significant Obligors of Pool Assets

	
 

	
 

	
 

	
Item 1112(b) –
 Significant
Obligor Financial Information*

	
N/A

	
 

	
 

	
*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*

	
Company

	
 

	
 

	
Determining applicable disclosure
threshold

	
 

	
 

	
 

	
Obtaining required financial information or
effecting incorporation by reference

	
 

	
 

	
 

	
Item 1115(b) – Derivative
Counterparty Financial Information*

	
Company

	
 

	
 

	
Determining current maximum probable
exposure

	
 

	
 

	
 

	
Determining current significance
percentage

	
 

	
 

	
 

	
Obtaining required financial information or
effecting incorporation by reference

	
 

	
 

	
 

	
*This information need only be reported on the
Form 10-D for the distribution period in which updated information
is required pursuant to the Items.

	
 

	
 

	

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

	
The Responsible Party for the applicable Form
8-K item as indicated below

	
 

	

9

	
Exhibits

	
 

	
 

	
 

	
Distribution report

	
Trustee

	
 

	
 

	
Exhibits required by Item 601 of Regulation
S-K, such as material agreements

	
Company

	

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 Company is not a party.

 

Examples: servicing agreement, custodial
agreement.

 

Note: disclosure not required as to definitive
agreements that are fully disclosed in the prospectus

	
Company; or any of the following that is a
party to the agreement if Servicer is not: Trustee, Purchaser,
Company

  

 

	
 

	

1.02

	
Termination of a Material Definitive
Agreement

	
 

	
 

	
 

	

Disclosure is required
regarding termination of any definitive agreement that is material
to the securitization (other than expiration in accordance with its
terms), even if Company is not a party.

 

Examples: servicing
agreement, custodial agreement.

 

	
Company; or any of the following that is a
party to the agreement if Servicer is not:  Trustee,
Purchaser, Company

	
 

	

1.03

	
Bankruptcy or Receivership

	
 

	
 

	
 

	

Disclosure is required
regarding the bankruptcy or receivership, if known to the Servicer,
with respect to any of the following:

 

Sponsor (Seller), Company, 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

	
Company

	
 

	

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 4.06 statement

	
N/A

	
 

	

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

	
Company

	
 

	

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”

	
Company

	
 

	

5.06

	
Change in Shell Company Status

	
 

	
 

	
 

	
[Not applicable to ABS issuers]

	
Company

	
 

	

6.01

	
ABS Informational and Computational
Material

	
 

	
 

	
 

	
[Not included in reports to be filed under
Section 8.12]

	
 

	
 

	

6.02

	
Change of Servicer or Trustee

	
 

	
 

	
 

	
Requires disclosure of any removal,
replacement, substitution or addition of any Servicer, affiliated
servicer, other servicer servicing 10% or more of pool assets at
time of report, other material servicers, certificate administrator
or trustee. Reg AB disclosure about any new servicer or trustee is
also required.

	
Trustee or Servicer, as applicable

	
 

	

6.03

	
Change in Credit Enhancement or Other
External Support

	
 

	
 

	
 

	
Covers termination of an enhancement in manner
other than by its terms, the addition of an enhancement, or a
material change in the enhancement provided. Applies to external
credit enhancements as well as derivatives. Reg AB disclosure about
any new enhancement provider is also required.

	
Company

	
 

	

6.04

	
Failure to Make a Required
Distribution

	
Trustee

	
 

	

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 prospectus, provide updated Reg AB disclosure
about the actual asset pool.

	
Company

	
 

	
 

	
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.

	
Company

	
 

	

7.01

	
Regulation FD Disclosure

	
Company

	
 

	

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.

	
Company

	
 

	

9.01

	
Financial Statements and Exhibits

	
The Responsible Party applicable to reportable
event

	

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

	
The Responsible Party for the applicable Form
8-K item as indicated above

	
 

	

15

	
Exhibits and Financial Statement
Schedules

	
 

	
 

	
 

	
Item 1112(b) –
 Significant
Obligor Financial Information

	
Company

	
 

	
 

	
Item 1114(b)(2) – Credit Enhancement
Provider Financial Information

 

Determining applicable disclosure
threshold

 

Obtaining required financial information or
effecting incorporation by reference

	
Company

	
 

	
 

	
Item 1115(b) – Derivative
Counterparty Financial Information

 

Determining current maximum probable
exposure

 

Determining current significance
percentage

 

Obtaining required financial information or
effecting incorporation by reference

	
Company

	
 

	
 

	

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)

	
Seller

	
 

	
 

	
Company

	
Company

	
 

	
 

	
Trustee

	
Trustee

	
 

	
 

	
Issuing entity

	
Company

	
 

	
 

	
Servicer, affiliated Servicer, other Servicer
servicing 20% or more of pool assets at time of report, other
material servicers

	
Servicer

	
 

	
 

	
Originator of 20% or more of pool assets as of
the Cut-off Date

	
Servicer

	
 

	
 

	
Custodian

	
 

	
 

	
 

	

Item 1119 –
Affiliations and relationships between the following entities, or
their respective affiliates, that are material to
Certificateholders:

 

	
 

	
 

	
 

	
Sponsor (Seller)

	
Seller

	
 

	
 

	
Company

	
Company

	
 

	
 

	
Trustee

	
Trustee

	
 

	
 

	
Servicer, affiliated Servicer, other Servicer
servicing 20% or more of pool assets at time of report, other
material servicers

	
Servicer

	
 

	
 

	
Originator

	
Seller

	
 

	
 

	
Item 1122 – Assessment of Compliance
with Servicing Criteria

	
Each Party participating in the servicing
function

	
 

	
 

	
Item 1123 – Servicer Compliance
Statement

	
Servicer, Servicer and Trustee

	
Exhibit L

FORM
OF INVESTMENT LETTER [NON-RULE 144A]

 

[DATE]

 

LaSalle Bank National Association

135 South LaSalle Street, Suite 1511

Chicago, Illinois, 60603

Attention: Global Securities and Trust
Services

 

WaMu Asset Acceptance Corp.

1301 Second Avenue, WMC 3501A

Seattle, WA 98101

 

Re:         
Purchase of WaMu Asset Acceptance Corp. Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2, Class
[   ]  (the “Certificates”)

Ladies and
Gentlemen:

 

               
In connection with our acquisition of the above Certificates, we
certify that (a) we understand that the Certificates are not being
registered under the Securities Act of 1933, as amended (the
“Act”), or any state securities laws and are being
transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we are
an “accredited investor,” as defined in Regulation D
under the Act, and have such knowledge and experience in financial
and business matters that we are capable of evaluating the merits
and risks of investments in the Certificates, (c) we have had the
opportunity to ask questions of and receive answers from the
Company concerning the purchase of the Certificates and all matters
relating thereto or any additional information deemed necessary to
our decision to purchase the Certificates, (d) we are not an
employee benefit plan that is subject to the Employee Retirement
Income Security Act of 1974, as amended, or a plan that is subject
to Section 4975 of the Internal Revenue Code of 1986, as amended,
nor are we acting on behalf of any such plan, (e) we are acquiring
the Certificates for investment for our own account and not with a
view to any distribution of such Certificates (but without
prejudice to our right at all times to sell or otherwise dispose of
the Certificates in accordance with clause (g) below), (f) we have
not offered or sold any Certificates to, or solicited offers to buy
any Certificates from, any person, or otherwise approached or
negotiated with any person with respect thereto, or taken any other
action which would result in a violation of Section 5 of the Act,
and (g) we will not sell, transfer or otherwise dispose of any
Certificates unless (1) such sale, transfer or other disposition is
made pursuant to an effective registration statement under the Act
or is exempt from such registration requirements, and if requested,
we will at our expense provide an opinion of counsel satisfactory
to the addressees of this certificate that such sale, transfer or
other disposition may be made pursuant to an exemption from the
Act, (2) the purchaser or transferee of such Certificate has
executed and delivered to you a certificate to substantially the
same effect as this certificate, and (3) the purchaser or
transferee has otherwise complied with any conditions for transfer
set forth in the Agreement.

 

Very truly
yours,

[NAME OF TRANSFEREE]

By:
                                                                        

               
Authorized Officer

 

FORM
OF RULE 144A INVESTMENT LETTER

 

[DATE]

 

LaSalle Bank National Association

135 South LaSalle Street, Suite 1511

Chicago, Illinois, 60603

Attention: Global Securities and Trust
Services

 

WaMu Asset Acceptance Corp.

1301 Second Avenue, WMC 3501A

Seattle, WA 98101

 

Re:         
Purchase of WaMu Asset Acceptance Corp. Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2, Class
[   ]  (the “Certificates”)

Ladies and
Gentlemen:

 

               
In connection with our acquisition of the above Certificates, we
certify that (a) we understand that the Certificates are not being
registered under the Securities Act of 1933, as amended (the
“Act”), or any state securities laws and are being
transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have
had the opportunity to ask questions of and receive answers from
the Company concerning the purchase of the Certificates and all
matters relating thereto or any additional information deemed
necessary to our decision to purchase the Certificates, (c) we are
not an employee benefit plan that is subject to the Employee
Retirement Income Security Act of 1974, as amended, or a plan that
is subject to Section 4975 of the Internal Revenue Code of 1986, as
amended, nor are we acting on behalf of any such plan, (d) we have
not, nor has anyone acting on our behalf offered, transferred,
pledged, sold or otherwise disposed of the Certificates, any
interest in the Certificates or any other similar security to, or
solicited any offer to buy or accept a transfer, pledge or other
disposition of the Certificates, any interest in the Certificates
or any other similar security from, or otherwise approached or
negotiated with respect to the Certificates, any interest in the
Certificates or any other similar security with, any person in any
manner, or made any general solicitation by means of general
advertising or in any other manner, or taken any other action, that
would constitute a distribution of the Certificates under the
Securities Act or that would render the disposition of the
Certificates a violation of Section 5 of the Securities Act or
require registration pursuant thereto, nor will act, nor has
authorized or will authorize any person to act, in such manner with
respect to the Certificates, (e) we are a “qualified
institutional buyer” as that term is defined in Rule 144A
under the Securities Act and have completed either of the forms of
certification to that effect attached hereto as Annex 1 or Annex
2.  We are aware that the sale to us is being made in reliance
on Rule 144A.  We are acquiring the Certificates for our own
account or for resale pursuant to Rule 144A and further, understand
that such Certificates may be resold, pledged or transferred only
(i) to a person reasonably believed to be a qualified institutional
buyer that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A,
or (ii) pursuant to another exemption from registration under the
Securities Act.

 

Very truly
yours,

[NAME OF TRANSFEREE]

By:
                                                                                      

               
Authorized Officer

 

 

 

	

Annex 1 to Exhibit L

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

 

[For
Transferees Other Than Registered Investment Companies]

 

               
The undersigned (the “Buyer”) hereby certifies as
follows to the parties listed in the Rule 144A Transferee
Certificate to which this certification relates with respect to the
Certificates described therein:

 

               
1.            
As indicated below, the undersigned is the chief financial officer,
a person fulfilling an equivalent function, or other executive
officer of the Buyer.

 

               
2.            
In connection with purchases by the Buyer, the Buyer is a
“qualified institutional buyer” as that term is defined
in Rule 144A under the Securities Act of 1933, as amended
(“Rule 144A”) because (i) the Buyer owned and/or
invested on a discretionary basis at least $100,000,000 in
securities (except for the excluded securities referred to below)
as of the end of the Buyer’s most recent fiscal year (such
amount being calculated in accordance with Rule 144A) and (ii) the
Buyer satisfies the criteria in the category marked below.

 

_____      Corporation, etc. 
The Buyer is a corporation (other than a bank, savings and loan
association or similar institution), Massachusetts or similar
business trust, partnership, or any organization described in
Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended.

 

_____      Bank.  The Buyer
(a) is a national bank or a banking institution organized under the
laws of any State, U.S. territory or the District of Columbia, the
business of which is substantially confined to banking and is
supervised by the State or territorial banking commission or
similar official or is a foreign bank or equivalent institution,
and (b) has an audited net worth of at least $25,000,000 as
demonstrated in its latest annual financial statements, a copy
of which is attached hereto, as of a date not more than 16
months preceding the date of sale of the Certificates in the case
of a U.S. bank or a banking institution organized under the laws of
any State, U.S. territory or the District of Columbia, and not more
than 18 months preceding such date of sale for a foreign bank or
equivalent institution.

 

_____      Savings and Loan. 
The Buyer (a) is a savings and loan association, building and loan
association, cooperative bank, homestead association or similar
institution, which is supervised and examined by a State or Federal
authority having supervision over any such institutions or is a
foreign savings and loan association or equivalent institution and
(b) has an audited net worth of at least $25,000,000 as
demonstrated in its latest annual financial statements, a copy
of which is attached hereto, as of a date not more than 16
months preceding the date of sale of the Certificates in the case
of a U.S. savings and loan association, building and loan
association, cooperative bank, homestead association or similar
institution, and not more than 18 months preceding such date of
sale for a foreign savings and loan association, or equivalent
institution.

 

_____      Broker-dealer.  The
Buyer is a dealer registered pursuant to Section 15 of the
Securities Exchange Act of 1934, as amended.

 

_____      Insurance Company. 
The Buyer is an insurance company whose primary and predominant
business activity is the writing of insurance or the reinsuring of
risks underwritten by insurance companies and which is subject to
supervision by the insurance commissioner or a similar official or
agency of a State, U.S. territory or the District of Columbia.

 

_____      State or Local
Plan.  The Buyer is a plan established and maintained by a
State, its political subdivisions, or any agency or instrumentality
of the State or its political subdivisions, for the benefit of its
employees.

 

_____      ERISA Plan.  The
Buyer is an employee benefit plan within the meaning of Title I of
the Employee Retirement Income Security Act of 1974.

 

_____      Investment
Advisor.  The Buyer is an investment advisor registered
under the Investment Advisers Act of 1940.

 

_____      Other. (Please supply a
brief description of the entity and a cross-reference to the
paragraph and subparagraph under subsection (a)(1) of Rule 144A
pursuant to which it qualifies. Note that registered investment
companies should complete Annex 2 rather than this Annex 1.) 
                                                               

 

               
3.            
The term “securities” as used herein does not
include (i) securities of issuers that are affiliated with the
Buyer, (ii) if the Buyer is a dealer, securities that are part of
an unsold allotment to or subscription by the Buyer as a
participant in a public offering, (iii) bank deposit notes and
certificates of deposit, (iv) loan participations, (v) repurchase
agreements, (vi) securities owned but subject to a repurchase
agreement and (vii) currency, interest rate and commodity
swaps.  For purposes of determining the aggregate amount of
securities owned and/or invested on a discretionary basis by the
Buyer, the Buyer did not include any of the securities referred to
in this paragraph.

 

               
4.            
For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, the
Buyer used the cost of such securities to the Buyer, except the
Buyer reports its securities holdings in its financial statements
on the basis of their market value, and no current information with
respect to the cost of those securities has been published, in
which case, the securities were valued at market.  Further, in
determining such aggregate amount, the Buyer may have included
securities owned by subsidiaries of the Buyer, but only if such
subsidiaries are consolidated with the Buyer in its financial
statements prepared in accordance with generally accepted
accounting principles and if the investments of such subsidiaries
are managed under the Buyer’s direction.  However, such
securities were not included if the Buyer is a majority-owned,
consolidated subsidiary of another enterprise and the Buyer is not
itself a reporting company under the Securities Exchange Act of
1934, as amended.

 

               
5.            
The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the
Certificates are relying and will continue to rely on the
statements made herein because one or more sales to the Buyer may
be in reliance on Rule 144A.

 

____       
____                       
Will the Buyer be purchasing the Certificates only for the
Buyer’s own account?

                               
Yes          No

 

               
6.            
If the answer to the foregoing question is “no”, then
in each case where the Buyer is purchasing for an account other
than its own, such account belongs to a third party that is itself
a “qualified institutional buyer” within the meaning of
Rule 144A, and the “qualified institutional buyer”
status of such third party has been established by the Buyer
through one or more of the appropriate methods contemplated by Rule
144A.

 

               
7.            
Until the date of purchase of the Rule 144A Securities, the Buyer
will notify each of the parties to which this certification is made
of any changes in the information and conclusions herein. Until
such notice is given, the Buyer’s purchase of the
Certificates will constitute a reaffirmation of this certification
as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan as provided above, the Buyer agrees that
it will furnish to such parties updated annual financial statements
promptly after they become available.

 

                                                                                               

               
Print Name of Buyer

By:
                                                                                        

Name:
                                                                                    

Title:
                                                                                     

Date:                                                                                      

 

 

	

Annex 2 to Exhibit L

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

 

[For
Transferees That are Registered Investment Companies]

 

               
The undersigned (the “Buyer”) hereby certifies as
follows to the parties listed in the Rule 144A Transferee
Certificate to which this certification relates with respect to the
Certificates described therein:

 

               
1.            
As indicated below, the undersigned is the chief financial officer,
a person fulfilling an equivalent function, or other executive
officer of the entity purchasing the Certificates or, if the Buyer
is a “qualified institutional buyer” as that term is
defined in Rule 144A under the Securities Act of 1933, as amended
(“Rule 144A”) because Buyer is part of a Family of
Investment Companies (as defined below), is an executive officer of
the investment adviser (the “Adviser”).

 

               
2.            
In connection with purchases by Buyer, the Buyer is a
“qualified institutional buyer” as defined in SEC Rule
144A because (i) the Buyer is an investment company registered
under the Investment Company Act of 1940, as amended and (ii) as
marked below, the Buyer alone owned and/or invested on a
discretionary basis, or the Buyer’s Family of Investment
Companies, owned at least $100,000,000 in securities (other than
the excluded securities referred to below) as of the end of the
Buyer’s most recent fiscal year.  For purposes of
determining the amount of securities owned by the Buyer or the
Buyer’s Family of Investment Companies, the cost of such
securities was used, except where the Buyer or any member of the
Buyer’s Family of Investment Companies, as the case may be,
reports its securities holdings in its financial statements on the
basis of their market value, and no current information with
respect to the cost of those securities has been published, in
which case, the securities of such entity were valued at
market.

 

_____      The Buyer owned and/or invested
on a discretionary basis, $_________ in securities (other than the
excluded securities referred to below) as of the end of the
Buyer’s most recent fiscal year (such amount being calculated
in accordance with Rule 144A).

 

_____      The Buyer is part of a Family
of Investment Companies which owned in the aggregate $___________
in securities (other than the excluded securities referred to
below) as of the end of the Buyer’s most recent fiscal year
(such amount being calculated in accordance with Rule 144A).

 

               
3.            
The term “Family of Investment Companies” as
used herein means two or more registered investment companies (or
series thereof) that have the same investment adviser or investment
advisers that are affiliated (by virtue of being majority owned
subsidiaries of the same parent or because one investment adviser
is a majority owned subsidiary of the other).

 

               
4.            
The term “securities” as used herein does not
include (i) securities of issuers that are affiliated with the
Buyer or are part of the Buyer’s Family of Investment
Companies, (ii) bank deposit notes and certificates of deposit,
(iii) loan participations, (iv) repurchase agreements,
(v) securities owned but subject to a repurchase agreement and
(vi) currency, interest rate and commodity swaps.  For
purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, or owned by
the Buyer’s Family of Investment Companies, the securities
referred to in this paragraph were excluded.

 

               
5.            
The Buyer is familiar with Rule 144A and understands that the
parties listed in the Rule 144A Transferee Certificate to which
this certification relates are relying and will continue to rely on
the statements made herein because one or more sales to the Buyer
will be in reliance on Rule 144A.

 

____       
____                       
Will the Buyer be purchasing the Certificates only for the
Transferee’s own account?

                               
Yes         
No                          

 

               
6.            
If the answer to the foregoing question is “no”, then
in each case where the Buyer is purchasing for an account other
than its own, such account belongs to a third party that is itself
a “qualified institutional buyer” within the meaning of
Rule 144A, and the “qualified institutional buyer”
status of such third party has been established by the Buyer
through one or more of the appropriate methods contemplated by Rule
144A.

 

               
7.            
Until the date of purchase of the Certificates, the undersigned
will notify the parties listed in the Rule 144A Transferee
Certificate to which this certification relates of any changes in
the information and conclusions herein.  Until such notice is
given, the Buyer’s purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned
as of the date of such purchase.

 

                                                                                               

Print Name of Buyer or Adviser

By:
                                                                                        

Name:
                                                                                    

Title:
                                                                                     

IF AN ADVISER:

                                                                                               

               
Print Name of Buyer

Date:      
                                                                               

 

 

	
Exhibit M

 

 

	

[Date]

 

 

[Company]

 

Re:      
Pooling and Servicing Agreement dated as of February 1, 2007 by and
among WaMu Asset Acceptance Corp., as Company, Washington Mutual
Bank, as Servicer, LaSalle Bank National Association, as Trustee,
and Christiana Bank & Trust Company, as Delaware Trustee,
relating to WaMu Asset Acceptance Corp. Washington Mutual
Asset-Backed Certificates, WMABS Series 2007-HE2

 

Ladies and Gentlemen:

 

In accordance with Section 2.07 of the
above-captioned Pooling and Servicing Agreement, the undersigned,
as [Trustee] [Initial Custodian], hereby certifies that, except as
noted on the attachment hereto, as to each Mortgage Loan listed in
the Mortgage Loan Schedule (other than any Mortgage Loan paid in
full or listed on the attachment hereto) it has reviewed the
documents delivered to it pursuant to Section 2.05 of the Pooling
and Servicing Agreement and has determined that (i) all documents
required pursuant to the definition of “Mortgage File”
and Section 2.05 of the Pooling and Servicing Agreement to have
been executed and received as of the date hereof are in its
possession and (ii) all such documents have been executed and
relate to the Mortgage Loans identified in the Mortgage Loan
Schedule.  The [Trustee] [Initial Custodian] has made no
independent examination of such documents beyond the review
specifically required in the above referenced Pooling and Servicing
Agreement and has relied upon the purported genuineness and due
execution of any such documents and upon the purported genuineness
of any signature thereon.  The [Trustee] [Initial Custodian]
makes no representations as to: (i) the validity, legality,
enforceability or genuineness of any of the documents contained in
each Mortgage File or any of the Mortgage Loans identified on the
Mortgage Loan Schedule, or (ii) the collectability, insurability,
effectiveness or suitability of any such Mortgage Loan.

Capitalized words and phrases used herein
shall have the respective meanings assigned to them in the
above-captioned Pooling and Servicing Agreement.

 

 

	
 

	
 

	
___________________________________

	

 

	
 

	

as [Trustee] [Initial Custodian]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
______________________________

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
Title:

 

	
Exhibit N

FORM
OF TRANSFEROR CERTIFICATE

 

[DATE]

 

Washington Mutual Asset-Backed
Certificates WMABS Series 2007-HE2 Trust

LaSalle Bank National Association, as
Trustee

135 South LaSalle Street, Suite 1511

Chicago, Illinois, 60603

Attention: Global Securities and Trust
Services

 

WaMu Asset Acceptance Corp.

1301 Second Avenue, WMC 3501A

Seattle, WA 98101

 

Re:         
Purchase of WaMu Asset Acceptance Corp. Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2, Class
[   ]  (the “Certificates”)

Ladies and
Gentlemen:

 

               
In connection with our disposition of the above Certificates, we
certify that (a) we understand that the Certificates have not been
registered under the Securities Act of 1933, as amended (the
“Act”), and are being disposed by us in a transaction
that is exempt from the registration requirements of the Act, (b)
we have not offered or sold any Certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise
approached or negotiated with any person with respect thereto, in a
manner that would be deemed, or taken any other action which would
result in, a violation of Section 5 of the Act, (c) to the extent
we are disposing of the Class [__] Certificate, we have no
knowledge that the Transferee is not a Permitted Transferee and (d)
no purpose of the proposed disposition of the Class [__]
Certificate is to impede the assessment or collection of tax.

 

Very truly
yours,

TRANSFEROR

By:
                                                                                        

Name:
                                                                                    

Title: 
                                                                                     

 

 

	
Exhibit O

FORM
OF ERISA REPRESENTATION

 

[DATE]

 

LaSalle Bank National Association

135 South LaSalle Street, Suite 1511

Chicago, Illinois, 60603

Attention: Global Securities and Trust
Services

 

WaMu Asset Acceptance Corp.

1301 Second Avenue, WMC 3501A

Seattle, WA 98101

 

Washington Mutual Bank

1301 Second Avenue, WMC 1401

Seattle, WA  98101

 

Re:         
Purchase of WaMu Asset Acceptance Corp. Washington Mutual
Asset-Backed Certificates WMABS Series 2007-HE2, Class
[   ]  (the “Certificates”)

Ladies and
Gentlemen:

 

               
___________________ (the “Transferee”) intends to
acquire from __________________ (the “Transferor”) the
above Certificates.  Capitalized terms used herein and not
otherwise defined shall have the meanings assigned thereto in the
Pooling and Servicing Agreement.  The Transferee hereby
certifies, represents and warrants to, and covenants with the
Company, the Trustee and the Servicer:

 

(A)
         In the case of the
Class C Certificates, the Class P Certificates and the Residual
Certificates the following statements in either (1) or (2) are
accurate:

 

_____ (1)        The
Certificates (i) are not being acquired by, and will not be
transferred to, any employee benefit plan within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), or other retirement
arrangement, 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 is subject to Section
406 of ERISA or Section 4975 of the Internal Revenue Code of 1986
(the “Code”) (any of the foregoing, a
“Plan”), (ii) are not being acquired with “plan
assets” of a Plan within the meaning of the Department of
Labor (“DOL”) regulation, 29 C.F.R. § 2510.3-101,
and (iii) will not be transferred to any entity that is deemed to
be investing in plan assets within the meaning of the DOL
regulation at 29 C.F.R. § 2510.3-101; or

 

_____ (2)        [With
respect to the Class C Certificates and the Class P Certificates
Only] The Transferee will provide an Opinion of Counsel to the
Company, the Trustee and the Servicer which establishes to the
satisfaction of the Company, the Trustee and the Servicer 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 Company,
the Trustee, the Servicer, 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.

 

(B)      In the case of the Class A
Certificates and the Mezzanine Certificates,  for so long as
the Supplemental Interest Trust is in existence, the following
statements in either (1) or (2) are accurate:

 

_____
(1)        Such Transferee is
neither a Plan nor a Person acting on behalf of any such Plan or
using the assets of any such Plan to effect such transfer; or

 

_____
(2)        Such Transferee is an
accredited investor within the meaning of Prohibited Transaction
Exemption 2002-41, as amended from time to time (the
“Exemption”) and  the acquisition and holding of
such Certificate are eligible for the exemptive relief available
under Prohibited Transaction Class Exemption (“PTCE”)
84-14, PTCE, PTCE 91-38, PTCE 90-1, PTCE 95-60 or PTCE 96-23.

(C)      In the case of the Mezzanine
Certificates subsequent to the termination of the Supplemental
Interest Trust, the following statements in either (1), (2) or (3)
are accurate:

 

_____
(1)        Such Transferee is
neither a Plan nor a Person acting on behalf of any such Plan or
using the assets of any such Plan to effect such transfer; or

 

_____
(2)        Such Transferee has
acquired and is holding such Certificate in reliance on the
Exemption, and the Transferee understands that there are certain
conditions to the availability of the Exemption, including that the
Certificate must be rated, at the time of purchase, not lower than
“BBB-” (or its equivalent) by S&P, Fitch,
Moody’s or DBRS, and the Certificate is so rated; or

 

_____
(3)        (i) Such
Transferee  is an insurance company, (ii) the source of funds
used to acquire or hold the Certificate or interest therein is an
“insurance company general account,” as such term is
defined in PTCE 95-60, and (iii) the conditions in Sections I and
III of PTCE 95-60 have been satisfied.

IN
WITNESS WHEREOF, the Transferee executed this certificate.

 

                                                                                               

[Transferee]

By:
                                                                                        

Name:
                                                                                    

Title: 
                                                                                     

 

 

 

 

	
Exhibit P

FORM
OF TRUSTEE CERTIFICATION

 

 

Re:          
Washington Mutual Asset-Backed Certificates WMABS 2007-HE2 Trust
(the “Trust”) and the Pooling and Servicing Agreement,
dated as of February 1, 2007 (the “Pooling and Servicing
Agreement”), among WaMu Asset Acceptance Corp., as Company
(the “Company”), Washington Mutual Bank, as servicer
(the “Servicer”), Christiana Bank and Trust Company, as
Delaware Trustee, and LaSalle Bank National Association, as trustee
(the “Trustee”)

 

LaSalle Bank National Association hereby certifies to the Company
and its officers, directors and affiliates, and with the knowledge
and intent that they will rely upon this certification, that:

 

1.            
I have reviewed the annual report on Form 10-K (the “Annual
Report”) for the fiscal year [___], and all reports on Form
10-D containing distribution reports filed in respect of periods
included in the year covered by the Annual Report (collectively
with the Annual Report, the “Reports”), of the
Trust;

 

2.            
Based on my knowledge and assuming the accuracy of the statements
required to be made and data and information received from the
Servicer, the Company, and the Swap Counterparty, as applicable,
the information in the Reports prepared by the Trustee, taken as a
whole, does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements
were made, not misleading as of the last day of the period covered
by the Annual Report; and

 

3.            
Based on my knowledge, the distribution or servicing information
required to be provided to the Trustee by the Servicer under the
Pooling and Servicing Agreement for inclusion in the Reports is
included in the Reports.

 

Date:       _________________

LASALLE BANK
NATIONAL ASSOCIATION

 

 

By:          
                                                                               

Name:      
                                                                               

Title:       
                                                                               

 

 

 

SCHEDULE I

 

PREPAYMENT CHARGE SCHEDULE

 

AVAILABLE UPON REQUEST

 

SCHEDULE II

 

Swap
Notional Amount Schedule

 

	

Distribution Date

	

Swap Notional

 Amount ($)

	

1

	

0

	

2

	

596,554,259

	

3

	

586,661,263

	

4

	

575,177,065

	

5

	

562,379,791

	

6

	

548,563,720

	

7

	

540,653,253

	

8

	

531,664,447

	

9

	

521,594,313

	

10

	

508,653,001

	

11

	

491,735,243

	

12

	

472,708,294

	

13

	

453,954,558

	

14

	

436,444,847

	

15

	

420,240,321

	

16

	

405,196,585

	

17

	

391,242,989

	

18

	

378,166,400

	

19

	

365,732,366

	

20

	

353,999,962

	

21

	

342,918,077

	

22

	

327,194,243

	

23

	

306,931,360

	

24

	

190,193,352

	

25

	

173,157,031

	

26

	

159,829,118

	

27

	

148,797,118

	

28

	

139,288,745

	

29

	

130,878,296

	

30

	

123,259,791

	

31

	

116,232,793

	

32

	

115,833,018

	

33

	

115,433,244

	

34

	

112,706,782

	

35

	

106,474,809

	

36

	

100,535,320

	

37

	

95,021,088

	

38

	

86,702,301

	

39

	

82,165,235

	

40

	

77,940,121

	

41

	

74,016,902

	

42

	

70,377,970

	

43

	

66,988,690

	

44

	

63,872,469

	

45

	

61,068,061

	

46

	

58,425,364

	

47

	

55,928,926

	

48

	

53,553,640

	

49

	

51,295,205

	

50

	

49,108,167

	

51

	

47,046,835

	

52

	

45,059,130

	

53

	

43,167,034

	

54

	

41,353,867

	

55

	

39,632,231

	

56

	

37,993,334

	

57

	

36,065,317

	

58

	

34,273,864

	

59

	

32,312,679

	

60

	

30,397,783

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